First-Quarter Global CIF

First-Quarter Global Cards +7% YOY +9% CAGR Major 4 Networks

First-quarter global cards among the Major 4 U.S. payment networks expanded by 369 million credit and debit cards-in-force (CIF) over the past twelve months. The Major 4 (Visa [V], Mastercard [MA], American Express [AXP], Discover/Diners [DFS]), global payment cards grew 7.0% year-on-year (YOY) in the first-quarter (1Q/19). First-Quarter Global CIF Growth The compound annual growth…

Big 6 Credit Card Charge-Offs

First-Quarter Charge-Offs Rise Sharply – Issuers Beef-Up Reserves

First-quarter charge-offs among the Big 6 domestic credit card issuers rose sharply as loan loss reserves are beefed-up across-the-board. Credit card charge-offs among the nation’s Big 6 credit card issuers rose 14 basis points (bps) year-on-year (YOY) for the first-quarter (1Q/19), and up 34 bps sequentially.  The Big 6 (Chase [JPM], Capital One [COF], Bank…

First-Quarter Card Loans

First-Quarter Card Loans YOY Growth Lowest in 5 Years & 5.51% CAGR

First-quarter card loans, among the Top 4 U.S. issuers, grew 3.4% year-on-year (YOY), compared to 1.5% in the prior quarter. Among the nation’s Top 4 credit card issuers (Chase [JPM], Capital One [COF], Bank of America [BAC], and Citibank [C]), the annual growth rate for U.S. end-of-period (EOP) credit card outstandings in the first-quarter (1Q/19)…

First-Quarter Visa Mastercard US CIF

First-Quarter U.S. Visa Mastercard Credit + Debit CIF +5% CAGR

First-quarter U.S. Visa Mastercard credit and debit cards-in-force (CIF) increased 6.7% year-on-year (YOY), compared to a 6.1% YOY gain in payment cards for the prior quarter (4Q/18). Visa and Mastercard U.S. credit cards increased 5.5% YOY while CIF for debit cards rose 7.7% YOY, in 1Q/19. There are were 1377 million Visa and Mastercard payment…

First-Quarter US Credit Card Volume

First-Quarter US Credit Card Volume Slows 280 bps YOY & 8.8% CAGR

First-quarter U.S. credit card volume, among Visa [V], Mastercard [MA], American Express [AXP], and Discover [DFS], dipped a bit to a 7.0% year-on-year (YOY) gain. The Major 4 payment networks posted a 9.8% YOY increase in the first-quarter 2018 (1Q/18), a 9.4% YOY gain in 1Q/17 and an 8.6% jump in 1Q/16. According to figures…

First-Quarter Capital One Card

First-Quarter Capital One Card U.S. Outstandings & Revenue Growth Grinds Lower

First-quarter Capital One card results reveals the once “fastest growing U.S. credit card issuer” for many years has been in a major downshift for the past five years. The mediocre first-quarter (1Q/19) produced a year-on-year (YOY) growth rate in Capital One (COF) end-of-period (EOP) U.S. credit card outstandings of 2.6%, compared to 5.9% YOY for…

First-Quarter USB Payment Services

First-Quarter USB Payment Services Profits and ROAA Sag

First-quarter USB Payment Services profits dropped 5% year-on-year (YOY) as return-on-average-assets (ROAA) slipped 78 basis points (bps) compared to the fourth-quarter (4Q/18). The weakness for U.S. Bank was driven by softness in the consumer credit card business. However, strong merchant acquiring and corporate card activity mitigated an otherwise very soft quarter. Payment Services includes consumer…

First-Quarter Wells Fargo Cards

First-Quarter Wells Fargo Cards Above Par Peer Performance

First-quarter Wells Fargo cards posted solid year-on-year (YOY) gains across-the-board in all portfolio metrics. Purchase dollar volume (PDV) for both Wells Fargo (WFC) credit and debit cards were up 8% YOY and 6% YOY, respectively, for the first quarter (1Q/19). The performance was boosted by its American Express Propel card. WFC U.S. total credit card…

First-Quarter BofA Card Metrics

First-Quarter BofA Card Metrics Uninspiring

First-quarter BofA card metrics were lackluster at best. Bank of America (BofA), the nation’s third largest Visa and MasterCard issuer, posted no growth in outstandings, subpar growth in purchase dollar volume (PDV), increasing delinquency rates and rising charge-off ratios. The bright spot is credit card yield continues marching upward, approaching 11%, rising 87 basis points…

Credit Card Rates and Sreads

First-Quarter Rates Set New Records

First-quarter rates for U.S.-issued major credit cards (Visa, MasterCard, American Express, Discover) increased by 146 basis points (bps) between the first quarter 2018 (1Q/18) and 1Q/19, as the U.S. prime rate increased by 75 bps. The average credit card rate charged by the nation’s Top 100 banks hit 15.09% in 1Q/19, compared to 13.63% for…

Visa Mastercard International Transactions

Visa Mastercard International Gross Transactions up 19% YOY

International gross transactions (GTX) for Visa and MasterCard credit and debit cards grew by 18.6% year-on-year (YOY) in the fourth quarter (4Q/18), compared to 11.8% YOY in 2017. International GTX for credit cards increased 18.1% YOY, compared to 4.1% YOY in 2017. International CTX for debit cards soared 18.9% YOY in 4Q/18, compared to 17.1%…

Active Credit Card Accounts

Big 6 U.S. Credit Card Sales Accounts Slow Nearly 50% in Q4

U.S. issuer credit card active accounts (AAC) (accounts with sales activity), among the top six U.S. issuers, increased 3.1%% year-on-year (YOY) in the fourth quarter (4Q/18), compared to 5.6% YOY in 2017. There were 161.4 million active bank credit card accounts for 4Q/18 in the U.S. among the top six issuers: Citibank [C]; Capital One…