The nation’s Top 100 Visa and MasterCard credit card (consumer and business) issuers held a 96% share of U.S. Cards-in-Force (CIF) at End-of-Year (EOY) 2014. The Top 10 captured a 60% share, while the Top 50 logged an 84% share, according to CardData.
The Top 50 U.S. Visa and MasterCard credit card issuers captured a 92% market share of 2014 U.S. Purchase Dollar Volume (PDV). The powerhouse Top 10 grabbed 83% of American consumer and business Visa and MasterCard purchases last year, according to CardData.
Late stage delinquency among the nation’s Big 6 issuers will be pushed higher in 2015 as 30 day to 89 day delinquency begins its climb in the first quarter. Forecaster RAM Research projects 90+ day delinquency among the Big 6 will inch up from an average of 99 basis points (bps) in Q4/14 to 105 bps by end-of-year (EOY) 2015.
The Top 5 U.S. Visa and MasterCard credit card issuers had a 64% 2014 marketshare based on U.S. Purchase Dollar Volume (PDV). Credit card king, Chase, captured 25.5% of the U.S. bank credit card market last year, more than double its closest competitor BofA.
The major Visa and MasterCard credit card players ruled U.S. purchase dollar volume (PDV) in 2014, with the top 5 issuers controlling more than half of the market, the top 10 issuers holding a 80% share and the top 50 maintaining an 91% share, according to CardData.
The U.S. bank credit card industry remained tightly concentrated in 2014, based on outstandings, with the top 5 issuers controlling nearly half of the market, the top 10 issuers holding a two-thirds share and the top 50 maintaining an 88% share, according to CardData.
U.S. bank credit card active accounts (accounts with sales activity), among the top six U.S. issuers, grew 10.3% year-on-year (YOY) and 3.5% quarter-to-quarter (QOQ) in 2014. This comes despite the slight erosion in gross accounts of 1% by Chase, Bank of America and Citibank last year.
Outstandings for Citibank-branded (Citi) cards in North America continues to erode, declining 4.3% last year from $70.5 billion at EOY 2013. Since 2009, Citi’s outstandings posted a compound annual growth rate (CAGR) of -3.39%, according to CardData. Among Citi’s peers, BofA and Chase are also in negative CAGR territory.
The nation’s second largest issuer, Bank of America (BofA), has slowly recovered from the “Great Credit Meltdown” of 2008-2009. BofA’s End-of-Year (EOY) U.S. credit card outstandings have produced a compound annual growth rate (CAGR) of -8.25% between 2009 and 2013, according to CardData.
The 30+ day delinquency ratio continues to hover at a 25+ year low and charge-offs for the past two quarters hit the lowest level since 1986. However, both metrics may be headed higher this year as Q3 and Q4 metrics among the biggest issuers uptick.
If the Federal Open Market Committee (FOMC) moves interest rates upward then bank credit card interest rates are set to move into the 30%+ territory among the nation’s top issuers. Over the past year, with no movement in the Prime Rate, overall rates have been climbing.
The top six U.S. credit card issuers are all reporting a slight uptick in delinquency for the fourth quarter. However, Bank of America held steady. Therefore, given the recent rise in card usage the stage is set for higher charge-offs throughout 2015.