bofa Archives • Page 28 of 58 • CardFlash®

Charge-Off Momentum Does Not Slow in Oct

5, Country, Priority, UNITED STATESBy Robert McKinley 11/20/2008

Charge-offs continued their march upward in October hitting 6.27%, compared to 6.19% in the prior month and 4.89% one-year ago. A consensus is building that charge-offs may exceed the 8% ratio in 2009. This week Capital One reported that charge-offs for its U.S. Card business jumped for the third consecutive month in October, rising 20 basis points from the prior month. Charge-offs for October were 6.54%, compared to 6.34% in September, and up 12 basis points from the prior 2008 peak set in July. Among credit card-backed securities “prime” charge-offs in September increased 11 basis points month-to-month to 6.57%. This is an 182 basis points increase from one year ago. BofA posted third quarter charge-offs of 6.40%, compared to 5.96% in the prior quarter and 4.67% one-year ago. Citi reported 3Q/08 charge-offs of 6.10%, compared to 5.72% in the prior quarter and 3.86% one-year ago for its Visa and MasterCard domestic programs. Chase, the nation’s largest issuer, posted third quarter charge-offs of 5.00%, compared to 4.98% in the prior quarter and 3.64% one-year ago For more details on October portfolio performance visit CardData ([www.carddata.com](http://www.carddata.com))

CHARGE-OFFS 2008
Jan 08: 5.55%
Feb 08: 5.51%
Mar 08: 5.61%
Apr 08: 5.82%
May 08: 5.93%
Jun 08: 6.04%
Jul 08: 5.88%
Aug 08: 6.14%
Sep 08: 6.19%
Oct 08: 6.27%
Source: CardData (www.carddata.com)

Credit Card Account Growth Slides 4% in 07

5, Country, Priority, UNITED STATESBy Robert McKinley 10/27/2008

The number of general purpose credit card accounts has been slowly
deteriorating in 2007, declining from a peak of 573 million accounts at
the start of the year to 552 million at the end of the third quarter.
BofA and Chase reported a decline of 39% and 10%, respectively,
in the number of new credit card accounts opened during the third
quarter, compared to 3Q/07. According to CardData, Citi reported that
its credit card account base dropped 2.5% and Capital One posted a 7.8%
decrease in its U.S. credit card accounts of 7.8%, compared to the year-
ago quarter. BofA opened 1.77 million new credit card accounts globally
in 3Q/08, compared to 2.67 million in the prior quarter and 2.90 million
in the year-ago quarter. Chase opened 3.6 million credit card accounts
during the third quarter, the same as the prior quarter, but down from
4.0 million for 3Q/07. Citi’s North American credit card portfolio
shrank from 149.1 million accounts for 3Q/07 to 145.3 million for 3Q/08.
Capital One reports that its U.S. credit card account base declined from
41.1 million in the third quarter of last year to 37.9 million for the
third quarter of this year. For more details on third quarter credit
card performance visit CardData ([www.carddata.com](http://www.carddata.com)).

U.S. CREDIT CARD ACCOUNTS
(Visa, MasterCard, Discover & American Express)
3Q/07: 564 million
4Q/07: 573 million
1Q/08: 565 million
2Q/08: 561 million
3Q/08: 552 million
Source: CardData (www.carddata.com)

New Mexico Unemployment Ins to Test a Card

5, Country, Priority, UNITED STATESBy Robert McKinley 10/24/2008

The New Mexico Department of Workforce Solution in partnership with Bank
of America is
implementing a pilot project with 400 claimants to test the Unemployment
Insurance Prepaid
Debit Card program for eligible unemployment insurance benefit claimants.
The new program will enable NMDWS to offer direct deposit to a wider
range of benefits recipients. In addition to the Unemployment
Insurance Prepaid Card, the department will launch a direct
deposit payment component before the end of the year. The universal
electronification of
benefit payments will help reduce New Mexicanâs exposure to check fraud
and NMDWS estimates it will save up to $1.5 million
annually by implementing this improved payment process.

BofA’s Card Business Posts a $373MM Q3 Loss

5, Country, Priority, UNITED STATESBy Robert McKinley 10/23/2008

Click here for the full story in PDF format.

Big Phish Hits BofA and AmEx in October

5, Country, Priority, UNITED STATESBy Robert McKinley 10/23/2008

On October 16th, MessageLabs reports it intercepted 7,000 phishing
attacks exploiting Bank of America, in a large, short-lived spike
spanning two hours. The next day, the same phishing emails more than
doubled to 15,000 and continued through the weekend reaching 125,000
total emails. Then on Monday, October 20th a large American Express
phish run started at 5am and reached 35,000 emails for the day.
MessageLabs analysis of IP data determined that the Cutwail botnet,
currently the largest botnet controlling more than one million active
bots, is responsible for both scams. MessageLabs notes that as change
prevails in the global banking system, scammers are taking advantage of
the frenzy surrounding the mergers and bailouts by targeting Bank of
America, Wachovia, Chase Manhattan and Washington Mutual and large UK
banks like Lloyds, TSB and RBS.

Q3 Volume Inches Among Top 5 Issuers

5, Country, Priority, UNITED STATESBy Robert McKinley 10/22/2008

Among the top five credit/charge card issuers in the U.S., ranked by outstandings, only Chase and American Express gained ground in dollar volume in the third quarter. Overall, credit/charge card dollar volume rose a paltry 1.5% for 3Q/08 among the top issuers, compared to the year ago quarter. Chase reported a 4.6% gain in third quarter volume to $93.9 billion as American Express posted a 4.4% year-on-year increase to $120.3 billion. Capital One was flat compared to the year ago quarter at $26.5 billion. BofA slipped 1.3% to $62.7 billion as Citi decreased 3.4% to $80.3 billion. According to CardData, the top five issuers produced $383.7 billion in card volume for the third quarter, compared to $378.2 billion for 3Q/07. For complete details on third quarter issuer results visit CardData ([www.carddata.com](http://www.carddata.com)).

TOP FIVE CARD DOLLAR VOLUME
3Q/07 3Q/08 CHNG
AmEx $115.3 $120.3 +4.4%
Chase $ 89.8 $ 93.9 +4.6%
Citi $ 83.1 $ 80.3 -3.4%
BofA $ 63.5 $ 62.7 -1.3%
Cap One $ 26.6 $ 26.5 NC
Source: CardData (www.carddata.com)

Big 3 Charge-Offs Average 5.83% for Q3

5, Country, Priority, UNITED STATESBy Robert McKinley 10/20/2008

Credit card charge-offs for the nation’s three largest issuers, Chase, BofA and Citi jumped again in the third quarter, now approaching an average of 6.00%. BofA posted third quarter charge-offs of 6.40%, compared to 5.96% in the prior quarter and 4.67% one-year ago. However, BofA’s 44 basis point sequential increase in charge-offs was an improvement over the 77 basis point jump in the second quarter. Citi reported 3Q/08 charge-offs of 6.10%, compared to 5.72% in the prior quarter and 3.86% one-year ago for its Visa and MasterCard domestic programs. Citi’s 38 basis point sequential increase in charge-offs was also an improvement over the 79 basis point jump in the second quarter.
Chase, the nation’s largest issuer, posted third quarter charge-offs of 5.00%, compared to 4.98% in the prior quarter and 3.64% one-year ago
However, Chase’s two basis point sequential increase in charge-offs was far better than the 61 basis point jump in the previous quarter. For more details on third quarter credit card performance visit CardData ([www.carddata.com](http://www.carddata.com))

Credit Card Charge-Offs
3Q/07 4Q/07 1Q/08 2Q/08 3Q/08
BofA 4.67% 4.75% 5.19% 5.96% 6.40%
Chase 3.64% 3.89% 4.37% 4.98% 5.00%
Citi 3.86% 4.30% 4.93% 5.72% 6.10%
Source: CardData (www.carddata.com)

Big 3 Outstandings Rise 5.3% for 3Q/08

5, Country, Priority, UNITED STATESBy Robert McKinley 10/20/2008

Credit card outstandings for the three largest U.S. card issuers, Chase, BofA and Citi, grew by an average of 5.3% in the third quarter. The growth was led by Chase, posting a 7% gain over 3Q/07 to $159.3 billion. BofA was only up 1% to $183.4 billion, while Citi posted a 2.5% increase to $96.0 billion, according to CardData. The three largest issuers have a 53% collective market share in the U.S. market with $438.7 billion in end-of-period 3Q/08 outstandings. American Express will report third quarter results this afternoon. Visa will report third quarter financial results and second quarter card statistics next week. MasterCard is set to issue its full third quarter performance report the week of November 3rd. For the latest third quarter results visit CardData ([www.carddata.com](http://www.carddata.com)).

Walgreens has Selected Bank of America’s ePayables

5, Country, Priority, UNITED STATESBy Robert McKinley 10/07/2008

Drugstore chain Walgreens has selected Bank of America’s “ePayables” payment management system. “ePayables” is a Bank of America electronic payments and remittance
delivery solution for corporates. It can lower payment processing costs,
reduce risk, and improve productivity for clients by making payments and
delivering remittance data to vendors electronically. The “ePayables” service seamlessly interfaces with Walgreens’ accounts
payable systems and processes with minimal impact on its technology
resources. It also enables Walgreens to cut payment processing costs,
improve cash flow, and earn rebates based on transaction volume.

Merrill Lynch to Boost BofA Debit Business

5, Country, Priority, UNITED STATESBy Robert McKinley 09/18/2008

Bank of America’s newly announced acquisition of Merrill Lynch will
further boost the bank’s debit card dominance in the USA. At mid-year
BofA’s debit card volume leaped nearly 15% to $54.3 billion.
New research from TowerGroup finds that the BofA/Merrill deal also gives
the bank a special edge in the high-net-worth card business. Merrill
Lynchâs card rewards program targets customers with at least $500,000 in
assets, raising the cardholderâs standing based on cumulative purchase
thresholds. TowerGroup says that in the face of this week’s move by
BofA, large card issuers with top-tier global private banking groups â
including Citi, JPMorgan Chase, and Wells Fargo â will need to reassess
their offerings to ensure relevance. But it is ultimately American
Express, which currently partners with Bank of America on its high-end
“Accolades” card, that is likely to feel the most pressure.

BOFA DEBIT CARD VOLUME
(purchase dollar volume)
2Q/07: $47.4 billion
3Q/07: $47.3 billion
4Q/07: $51.1 billion
1Q/08: $50.1 billion
2Q/08: $54.3 billion
Source: CardData (www.carddata.com)

BofA’s PayMode Network Tops $225 Billion

5, Country, Priority, UNITED STATESBy Robert McKinley 09/03/2008

Bank of America reports that it is signing up about 2,000 vendors per month for its electronic exchange network. To date, 50,000 vendors participate in BofA’s “PayMode” network. The network, a component of BofA’s “Electronic Payment Services” suite and “Comprehensive Payables,” has processed more than $225 billion in transactions. Since April 2007, transactions processed through the network have grown 65% and the client base has increased by 64%. “PayMode” facilitates the electronic exchange of invoices and payments between businesses and their suppliers. BofA notes that the “PayMode” network has experienced a near 100% vendor retention rate.

BofA Intros College Education Program

5, Country, Priority, UNITED STATESBy Robert McKinley 08/28/2008

Bank of America has launched a financial awareness campaign called “Morris on Campus, Life According to an Upperclassman”,
designed to financially educate and empower students this new academic year.
This outreach was spurred by a recent Bank
of America sponsored survey finding that 38% of
college-aged students reported they can use help in managing their money.
Morris will introduce students to Bank of America’s new Student Package, a suite of easy-to-use banking products designed
specifically for students, while also pointing them to helpful financial
resources, such as the Student Financial Handbook, a downloadable guide
that provides students with easy to understand explanations and advice on
an array of financial topics. BoA has also has teamed with Farnoosh Torabi, senior correspondent for
TheStreet.com and author of “You’re So Money” to conduct a national search
for the “BMOC” (or Be Money on Campus) student. The BMOC contest offers
college students a chance to win $25,000 by sharing their best financial
tips related to on and off-campus life.

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