Active cards, or credit card accounts with sales activity, among the Big 6 U.S. issuers, increased 3.5% year-on-year (YOY) in the first-quarter (1Q/19), compared to a record of about 14% YOY in 2018. However, Discover’s nearly 9% CAGR in organic growth and by Citibank’s approximate 10% CAGR produced by acquisitions. On a YOY basis. American Express posted a huge gain in excess of 14%.
There were 143.6 million active bank credit card accounts (AAC) for 1Q/19 in the U.S. among the Big 6 issuers: Citibank [C]; Capital One [COF]; Chase [JPM]; Bank of America [BAC]; Discover [DFS]; and American Express [AXP], compared to 138.8 million one-year ago, according to CardData.
Active Accounts Analysis
The growth rate of 3.5% YOY in first-quarter AAC, compares to 13.7% for 1Q/18; -0.2% YOY for 1Q/17; and 4.2% YOY for 1Q/16. Historically, about 48% to 51% of credit cards are active in a first-quarter, compared to a high of 55% to 58% in a fourth-quarter. The Big 6 are growing at a compound annual growth rate (CAGR) of 4.57%, according to analysis by RAM Research.
While U.S. bank active credit card accounts or open accounts with posted sales activity are typically, seasonally and historically down in the first-quarter, this year the payments industry was buffeted by the impact of the Trump government shutdown, nasty widespread bad weather nationally, slow tax refunds and growing economic uncertainty, notes Robert McKinley, Senior Analyst of CardFlash, CardData and CardTrak.
Chase U.S. Active Credit Card Accounts
Chase, the nation’s largest issuer of reward credit cards, was up 2.2% YOY with an estimated 33.2 million U.S. active accounts in 1Q/19, compared to an estimated 37.6 million in the prior quarter and an estimated 32.5 million for 1Q/18. (Chase no longer reports accounts as of 1Q/16. Chase estimated figures are based on reported outstandings and purchase dollar volume with historical account data.) The current CAGR for Chase AAC is 0.53%.
Capital One U.S. Active Credit Card Accounts
Capital One, the nation’s top sub-prime issuer, was down 0.8% YOY with an estimated 25.6 million U.S. active accounts in 1Q/19, compared to an estimated 29.7 million in the prior quarter and 25.8 million for 1Q/18. (Capital One estimated figures are based on reported outstandings and purchase dollar volume with historical account reported data.) The current CAGR for Capital One AAC is 6.44%.
Bank of America U.S. Active Credit Card Accounts
Bank of America decreased 0.5% YOY with an estimated 20.4 million U.S. active accounts in 1Q/19, compared to an estimated 23.5 million in the prior quarter and an estimated 20.5 million for 1Q/18. (Bank of America estimated figures are based on reported outstandings and purchase dollar volume with historical account data.) The current CAGR for Bank of America AAC is 4.97%.
Citibank U.S. Active Credit Card Accounts
Citibank edged up 0.6% YOY with an estimated 17.4 million U.S. active accounts in 1Q/19, compared to a reported 20.0 million in the prior quarter and an estimated 17.3 million for 1Q/18. (Citibank reports gross (open) accounts. Estimated figures are based on reported outstandings and purchase dollar volume with historical account data.) In the second quarter of 2016 Citibank’s portfolio added around four million former American Express Costco active accounts. The current CAGR for Citibank AAC is 9.51%.
American Express U.S. Active Credit Card Accounts
American Express jumped 14.4% YOY with an estimated 23.8 million U.S. AAC in 1Q/19, compared to an estimated 24.8 million in the prior quarter and an estimated 20.8 million for 1Q/18. (American Express estimated figures are based on reported cards-in-force, outstandings and purchase dollar volume with historical account data.) The current CAGR for American Express AAC is 2.11%.
Discover U.S. Active Credit Card Accounts
Discover rose 5.9% YOY with an estimated 23.2 million U.S. AAC in 1Q/19, compared to an estimated 25.8 million in the prior quarter and an estimated 21.9 million for 1Q/18. (Discover estimated figures are based on reported outstandings and purchase dollar volume with historical account data.) The current CAGR for Discover AAC is 8.57%.
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Source: Chase; Bank of America; Capital One; Citibank; American Express; Discover; RAM Research; CardData; CardFlash; CardTrak
