Mastercard Globally OK But U.S. Business Spirals Down for Another Quarter

Mastercard’s U.S. purchase dollar volume (PDV) quarterly year-on-year (YOY) growth has been spiraling down this year tumbling for the fourth consecutive quarter to 2.5% in the first quarter (1Q/17), compared to 2.7% for 4Q/16, and 10.3% for 1Q/16, according to CardData. While overall Mastercard is solid globally its U.S. business is sinking fast. Mastercard reported…

Top U.S. Credit Card Issuer Charge-Offs Take-Off Bigly in Q1

Charge-offs among the nation’s top four U.S. issuers jumped 40 basis points (bps) year-on-year (YOY), and up 36 bps sequentially for the first quarter (1Q/17). All four issuers reported sharply higher credit card losses from the prior quarter, according to CardData. For the top four issuers (Chase, BofA, Capital One, Citibank), average charge-offs were 3.48%…

U.S. Card Issuers Left with Bottom Fishing and Rewards Gamers

The number of new credit card accounts (those opened in the previous 24 months) rose to 88.1 million, driven in part by a 16% increase in new subprime accounts. Even with this increase, subprime accounts continue to comprise roughly one-fifth of total open accounts — equivalent to 2012 levels. According to the American Bankers Association’s…

Synchrony Q1 Charge-Offs Soar – Profits Up 10%+ YOY

Synchrony Financial’s retail credit card business revenues posted an 10.5% year-on-year (YOY) gain for the first quarter (1Q/17) to $2.89 billion, according to CardData. During the quarter Synchrony launched the Cathay Pacific program and Synchrony Car Care credit card. Furthermore, Synchrony acquired the Citi Health Card portfolio and GPShopper. Synchrony reported $2.88 billion in retail…

Cap One U.S. Card Profits Dip as Charge-Offs Soar & FICO Scores Slide

The nation’s second largest bank credit card issuer, Capital One (COF) continues to lead its peers in all metrics for the first quarter (1Q/17). For the first time, COF released a historic breakdown of its near-prime and sub-prime FICO scores based on end-of-period (EOP) U.S. credit card outstandings, according to CardData. COF reported 63% of…

AXP USCS Pinched by Costco Card Loss – Q1 Delinquency & Charge-Offs Rise

The impact of the loss of the U.S. Costco and JetBlue programs continues to manifest itself in the American Express (AmEx) U.S. Card Services (USCS) unit during the first quarter (1Q/17), according to CardData. AmEx reported 1Q/17 gross revenue for USCS decreased 8.0% YOY to $3019 million, compared to $3030 million for the fourth quarter…

U.S. Bank Credit Card Q1 Profits Decline As Charge-Offs Rise

U.S. Bank (USB)’s Payment Services division reported solid growth in gross dollar volume (GDV) as well as credit and debit fee revenue for the first quarter (1Q/17). However, rapidly rising charge-offs depressed credit card income, according to CardData. Acquiring volume continued to decline for the fourth consecutive quarter. USB’s Payment Services includes consumer and business…

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…

Wells Fargo Credit Card Portfolio Bad Sales Practices Impact Continues in Q1

Wells Fargo continues to reel from the bank’s fraudulent sales practices exposed last year, as new credit card account acquisitions fell more than 46% year-on-year (YOY) in the first quarter (1Q/17). Consumer credit card portfolio metrics remained soft with single digit YOY gains, and there was a noticeable uptick in charge-offs, according to CardData. The…

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…

Global Payment Cards (V+MA+AXP+DFS) Tops 5 Billion Up 6% YOY

Global payment cards-in force (CIF) [credit + debit] grew by 19.2% year-on-year (YOY) in the fourth quarter (4Q/16) to 4995 million. However, the figure for 4Q/16 includes 554 million for Visa Europe. (Visa added Visa Europe data as of 3Q/16.) Therefore, discounting Europe, the growth in global CIF was 6.0% YOY, adjusted, according to CardData.…