Capital One volume for the final quarter of 2018 (4Q/18) posted a solid 10.8% year-on-year (YOY) gain in gross dollar volume (GDV), which includes purchases and cash advances. The nation’s second largest issuer topped the $100 billion quarterly GDV mark for the first time, according to figures compiled by CardData.
Capital One is also the nation’s largest issuer of sub-prime credit cards with FICOs below 660. Fully one-third of Cap One’s portfolio is sub-prime, however, the issuer has been tightening up underwriting, according to recent analysis by RAM Research.
U.S. Gross Dollar Volume (GDV) among the top four bank credit card issuers (Chase, Capital One, Bank of America, Citibank), rose an estimated 9.1% YOY in 4Q/18, compared to 10.8% YOY for 4Q/17.
The top four U.S. issuers racked up an estimated $461.3 billon in GDV for 4Q/18, compared to $435.6 billion in 3Q/18 and $423.0 billion in 4Q/17.
Chase U.S. GDV rose 10.3% YOY for the fourth quarter, compared to a 13.1% YOY gain for 4Q/17. Chase had an estimated $194.6 billion for 4Q/18, compared to $184.8 billion for 3Q/18 and $176.4 billion for 4Q/17. Chase reported first quarter PDV of $185.3 billion for 4Q/18.
Capital One U.S. GDV rose 10.8% YOY for the fourth quarter, compared to a 15.5% YOY gain for 4Q/17. Capital One had an estimated $101.6 billion for 4Q/18, compared to $93.7 billion for 3Q/18 and $91.7 billion for 4Q/17. Capital One reported first quarter PDV of $96.8 billion for 4Q/18.
Bank of America U.S. GDV rose 6.8% YOY for the fourth quarter, compared to a 7.3% YOY gain for 4Q/17. Bank of America had an estimated $73.5 billion for 4Q/18, compared to $69.8 billion for 3Q/18 and $68.8 billion for 4Q/17. Bank of America reported first quarter PDV of $70.0 billion for 4Q/18.
Citibank U.S. GDV rose 6.1% YOY for the fourth quarter, compared to a 4.7% YOY gain for 4Q/17. Citibank had an estimated $91.6 billion for 4Q/18, compared to $87.3 billion for 3Q/18 and $86.3 billion for 4Q/17.
The strong economy with low unemployment is reducing the need for consumer credit, but bankers see a reversal in their crystal ball. Overall the Consumer Debt Service Ratio & Debt Financial Obligations Ratio has been declining slightly. However, consumers are still spending.
U.S. credit card PDV (Purchase Dollar Volume), for credit cards, among the Big 6 U.S. credit card issuers, rose 7.7% year-on-year (YOY) for the fourth quarter (4Q/18), compared to growth rate of 10.9% for 3Q/18, and 10.6% for 2Q/18. Capital One and Chase are duking it out among the Big 6 (American Express, Chase, Capital One, Citibank, Bank of America, Discover) with the largest YOY PDV gain in the fourth quarter.
Top 4 U.S. Credit Card Gross Dollar Volume
4Q/14: $297.0 billion
4Q/15: $322.6 billion
4Q/16: $381.9 billion
4Q/17: $423.0 billion
4Q/18: $461.3 billion
Chase U.S. Credit Card GDV
4Q/14: $129.8 billion
4Q/16: $156.0 billion
4Q/17: $176.4 billion
4Q/18: $194.6 billion
Capital One U.S. Credit Card GDV
4Q/14: $61.1 billion
4Q/15: $72.1 billion
4Q/16: $79.4 billion
4Q/17: $91.7 billion
4Q/18: $101.6 billion
Bank of America U.S. Credit Card GDV
4Q/14: $58.7 billion
4Q/15: $61.7 billion
4Q/16: $64.1 billion
4Q/17: $68.8 billion
4Q/18: $73.5 billion
Citibank U.S. Credit Card GDV
4Q/14: $47.4 billion
4Q/15: $51.5 billion
4Q/16: $82.4 billion
4Q/17: $86.3 billion
4Q/18: $91.6 billion
Source: Chase; Capital One; Bank of America; Citibank; RAM Research; CardData
NOTE: All GDV Figures Estimated Based on Reported PDV and/or Outstandings with Proprietary Calculations/Analysis by RAM Research