Citibank North America branded credit card profits declined 10% and Citi retail cards declined 12% year-on-year (YOY) in the second quarter (Q2/15). End-of-Period (EOP) outstandings also slipped 4.1% and the Citi North America branded card base shrank 4% YOY in Q2/15.
Citibank North America branded credit card profits declined 10% and Citi retail cards declined 12% year-on-year (YOY) in the second quarter (Q2/15). End-of-Period (EOP) outstandings also slipped 4.1% and the Citi North America branded card base shrank 4.0% YOY in Q2/15.
EOP outstandings declined 4.1% YOY from $67.3 billion one-year ago to $64.5 billion for Q2/15 and compared to $63.5 billion in the prior quarter.
Purchase Dollar Volume (PDV) rose 5% YOY, below peers and vertical, to $46.1 billion for Q2/15, compared to $40.9 billion in the prior quarter and $43.9 billion in Q2/14.
North America branded credit card accounts declined 4.0% from 24.1 million one-year ago to 23.2 million for Q2/15.
However, credit quality improved as delinquency declined but charge-offs edged up.
Early stage delinquency (30-89 days) declined to 0.72%, from 0.78% in Q1/15 and 0.80% one-year ago. Late stage delinquency (90+ days) also declined from 0.87% in Q2/14 to 0.77% for Q2/15.
Charge-offs rose sequentially from 3.11% in the prior quarter to 3.19% in Q2/15.
The yield rose YOY but not sequentially. For Q2/15 the yield was 10.39%, compared to 10.48% in the prior quarter and 10.31% one-yea ago.
NORTH AMERICA CITI-BRANDED CARD INCOME
2Q/14: $555 million
3Q/14: $636 million
4Q/14: $636 million
1Q/15: $539 million
2Q/15: $499 million
NORTH AMERICA CITI-RETAIL CARD INCOME
2Q/14: $429 million
3Q/14: $440 million
4Q/14: $361 million
1Q/15: $404 million
2Q/15: $379 million
Source: Citibank; CardData
Citi says North America GCB credit quality continued to improve as net credit losses of $1.0 billion decreased 7% versus the prior year period. Net credit losses improved versus the prior year period in Citi-branded cards (down 12% to $503 million) and in Citi retail services (down 2% to $457 million). The net loan loss reserve release in the second quarter 2015 was $109 million, $287 million lower than in the prior year period, as credit continued to stabilize. Delinquency rates improved from the prior year period in both Citi-branded cards and Citi retail services.
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Average loans, EOP loans and the related consumer delinquency amounts and ratios include interest and fees receivables balances.
Average yield is calculated as gross interest revenue earned divided by average loans.
Net interest revenue includes certain fees that are recorded as interest revenue.
Net credit margin represents total revenues, net of interest expense, less net credit losses and policy benefits and claims.