A perfect storm is brewing for the banking and payments business as the impact of the coronavirus-driven spending collapse and the sharp rise in unemployment pushes consumer loan defaults to new heights. Adding to these two components is the unprecedented decline in oil prices, likely producing massive defaults on oil-related loans and the layoffs it…
Sub-prime cards are gathering more steam as a major deal closes. Credit card debt skyrocketed in December by a record 14%. Majority of Americans want a 36% rate cap. Women in Payments recently recognized exceptionally talented leaders and rising stars in Fintech and Banking. Despite years of warnings, those computers inside your computer remain disturbingly unprotected.…
Loan delinquency across the board is projected to rise sharply in the next five years. The outcome of the 2020 U.S. election cycle will have a unprecedented and profound impact on the U.S. economy, the global economy, and the payment card industry through 2025. Solid projections point to early stage credit card delinquency among the…
Card yield, as an average for the nation’s Top 4 credit card issuers, reversed course in the fourth-quarter after posting new records throughout 2019 All of the issuers, except Chase, posted significantly lower yields in the fourth-quarter from the prior quarter. However, this is fifth consecutive quarter wherein all of the Top 4 exceeded 10%.…
Fourth-quarter chargeoffs among the Top 4 U.S. bank credit card increased modestly from the prior quarter and up a smidgen from one-year ago. Credit card charge-offs among the nation’s Top 4 credit card issuers decreased 7 bps (basis points) sequentially in the fourth-quarter (4Q/19), and up 3 bps year-on-year (YOY). The Top 4 (Chase [JPM],…
Credit card balances for the fourth-quarter, among the Top 4 U.S. issuers, grew a solid 6.0% year-on-year (YOY), compared to 4.3% YOY in the prior quarter, and compared to 2.8% YOY one-year ago. Among the nation’s Top 4 credit card issuers (Chase [JPM], Capital One [COF], Bank of America [BAC], and Citibank [C]), the annual…
30 day delinquency, among the nation’s top four credit card issuers, continued to march upward, now hovering at levels not seen in more than seven years. It is the highest level for a first-quarter since 2013 and rose slightly from the prior quarter, and one-year ago. Noteworthy is the fact all four of the nation’s…
Credit card ROA (pre-tax return on assets) for 2019 is estimated to rise to 4.80%, compared to 4.60% for the prior year, and compared to 4.45% for 2017. In 1987 pre-tax ROA peaked at 5.00% and bottomed at 1.50% in 2009. According to R.K. Hammer, credit card portfolio evaluation and sales experts, total revenue increased…
Payment earnings reports for the nation’s top credit card issuers, global payments networks and supporting businesses gets underway before the market opens on Tuesday, January 14th. First out of the shoot is Chase (JPM), Citibank (C) and Wells Fargo (WFS), according to CardData and PYRPTS. U.S. Bank (USB) and Bank of America (BAC) are scheduled…
Credit card profits (after tax) among the nation’s Top 4 bank credit card issuers shriveled by 4.2% YOY (year-on-year) in the third-quarter (3Q/19), compared to 44.0% one-year ago. The surge in 2018 was directly related to the corporate tax cuts. Profits (after tax) among the nation’s Top 4 U.S. credit card issuers (Chase [JPM]; Capital…
Top card issuer marketshare, based on U.S. purchase dollar volume (PDV) of Visa [V], Mastercard [MA], American Express [AXP] and Discover [DFS], increased 30 bps (basis points) in the third-quarter (3Q/19). Chase, the nation’s largest credit card issuer on outstandings and the fastest growing issuer, based on PDV at 19% YOY (year-on-year), led the Top…
Third-quarter card loan growth, among the Top 4 U.S. issuers, grew a solid 4.3% year-on-year (YOY), compared to 2.6% YOY in the prior quarter, and compared to 2.8% YOY one-year ago. 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…