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…
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…
Third-quarter earnings reports for the nation’s top credit card issuers, global payments networks and supporting businesses gets underway before the market opens on Tuesday, October 15th. First out of the shoot, is Chase (JPM), Citibank (C) and Wells Fargo (WFS), according to PYRPTS.com and CardData. Among, the four global payment networks, American Express (AXP) will…
Second-quarter payment network profits among the global U.S.-based Major 4: Visa [V], Mastercard [MA], American Express [AXP] and Discover [DFS], soared 23.8% year-on-year (YOY), and now growing at an 12.80% CAGR (compound annual growth rate), based on the past five years. The Major 4 reported a combined second-quarter (2Q/19) (after tax) profit of $7663 million,…
U.S. card yield, as an average for the nation’s Top 4 issuers, remained at record levels in the second-quarter despite a small downtick sequentially. All of the issuers posted lower yields in the second-quarter from the prior quarter. However, this is fourth consecutive quarter wherein all of the Top 4 exceeded 10%. The U.S. Top…
Open card accounts in the U.S. for the Big 6 issuers grew by 10 million in 2018. Over the past five years, gross open accounts (GAC) for U.S. credit cards among the nation’s six largest issuers expanded by 43.4 million. In the first-quarter (1Q/19) the year-on-year (YOY) gain in GAC was 3.6%. At the end…
U.S. card cash volume for Visa and Mastercard payment cards (credit + debit) in the first-quarter (1Q/19) was flat YOY (year-on-year), up a mere 50 bps (basis points). Visa debit cards increased slight in CDV (cash dollar volume). Visa and Mastercard reported $200 billion in 1Q/19 U.S. CDV for payment cards, compared to $200 billion…
Credit card GDV (gross dollar volume) among the Big 6 U.S. bank card issuers, rose an estimated 8.0% year-on-year (YOY) in the first-quarter (1Q/19), compared to a 10.5% YOY gain for 1Q/18; 10.0% YOY increase in 1Q/17; and a 5.9% YOY gain for 1Q/16. Chase led the peer group with a YOY gain nearing 10%…
U.S. card loan growth among the Big 6 credit card issuers increased 3.5% in the first-quarter (1Q/19) year-on-year (YOY), compared to a 8.0% YOY for the year ago quarter. Early results for the second-quarter reveal Chase U.S. credit card outstandings grew 8.5% YOY, Citibank is up 2.8% YOY, and Bank of America was flat (+0.7%).…
Second-quarter card profits for the four largest U.S.-based payment card networks and the four largest credit card issuers will likely post robust performance. Consumer confidence indices, government data, and retail sales activity point to strong growth in PDV (purchase dollar volume) for the payment networks and sharp increases in cardholder balances for card issuers, reflecting…
American Express global card for the first-quarter posted a record yield, nearing 11%, as GDV (gross dollar volume) rose 7% on an FX (currency adjusted) basis but delinquency rose 10 bps (basis points) and charge-offs jumped 30 bps. American Express (AXP) GCSG (Global Card Services Group) reported an 8.6% YOY (year-on-year) gain with total revenues…
Visa Asia-Pacific payment performance is unremarkable for the first-quarter with all metrics at, or below par, compared to the prior five quarters. While Visa Asia-Pacific is the only region reporting more than one billion cards, it is also the slowest growing in payment volume and payment transactions, among Visa’s five international regions. Visa Asia-Pacific posted…