Discover Card Q1 Profits Slip w/Rising Charge-Offs – Yields Solid

Discover’s (DFS) credit card portfolio stayed in positive territory in the first quarter (1Q/17), while profits decreased reflecting a rising charge-offs. Discover’s total revenue rose 2.4% YOY to $2278 million for 1Q/17, compared to $2358 million in the prior quarter and $2224 million for the year ago quarter. For 2016, DFS averaged $2275 million per…

TSYS Posts Decent Q1 Profit While Trimming Jobs and Diversifying

GA-based acquirer TSYS reported a solid first quarter (1Q/17) as total revenues hit $1185 million, a jump of 60.4% year-on-year (YOY). Net income increased 16.9% YOY from $90.6 million in 1Q/16 to $105.9 million in 1Q/17, according to CardData. The Company says the strategy of diversification has been paying-off for the first quarter. TSYS also…

ADS Q1 Exceeds Expectations – Segments Pumping on All Cylinders

Dallas-based Alliance Data Systems (ADS) reported first quarter (1Q/17) year-on-year (YOY) profits declined but Loyalty One, Epsilon, and especially Card Services, all posted strong first quarter YOY performance, according to CardData. ADS reported gross revenue rose 12.1% YOY in 1Q/17 to $1879 million, compared to $1828 million for 4Q/16, and $1676 million for 1Q/16. Net…

All the Cards are Finally Lining Up for Solid Growth in Corporate Purchasing Cards

The global corporate purchasing cards market is projected to grow at a CAGR of 9.5% over the next five years due to the growth in spending on corporate purchasing cards, which is driven by lower fixed costs in the payment cycle, effective cash management, transparency and management control, and long-term process efficiencies. According to ‘Global…

BofA Credit Card Unit Continues to Plug Along in Q1 – Charge-Offs Up

Bank of America, the nation’s third largest Visa and MasterCard issuer, continued to struggle in the first quarter (1Q/17) with sluggish outstandings (OUT) and purchase dollar volume (PDV) growth, but other metrics, except charge-offs, remain fairly stable, according to CardData. Pre-tax net income edged up 1.1% YOY to $1224 million in 1Q/17, compared to $1290…

Bank Credit Card Delinquency Slowly Rears its Ugly Head Again

More evidence mounts showing credit card delinquency is steadily rising. The bank credit card default rate recorded a 3.31% rate in March, up nine basis points from February. This is the fifth consecutive month for the ratio to rise. The S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, shows…

Costco Card Drives Citi PDV Higher and Profits Lower in Q1

Citibank North America branded credit card purchase dollar volume (PDV) continued to soar in the first quarter (1Q/17), however net income dropped sharply, both driven by the 2016 Costco acquisition, according to CardData. North America Citi-branded card revenue increased 12.7% YOY to $2096 million for 1Q/17, compared to $2213 million in the prior quarter and $1860…

Sapphire Reserve Card Acquisition Costs Still Dog Chase in Q1

Chase, the nation’s largest bank credit card issuer, continued to post double-digit year-on-year (YOY) growth in purchase dollar volume (PDV) in the first quarter (1Q/17) while YOY growth in outstandings (OUT) remained in the mid-single digits. Card income remained depressed in the quarter due to higher new account origination costs and provisions to offset rising…