bofa Archives • Page 43 of 58 • CardFlash®

Top 3 U.S. Issuers Capture a 49.1% Market Share

5, Country, Priority, UNITED STATESBy Robert McKinley 02/01/2005

The nation’s top ten bank credit card issuers increased their market share, based on managed card loans, by 70 basis points, to 84.5% during 2004. The top three VISA and MasterCard players now control nearly half of the U.S. market, while American Express held its 5.8% share, and Discover lost 20 basis points. MBNA lost the most share last year, falling from 12.6% in 2003 to 11.7% in 2004. The combined Bank of America/Fleet portfolio posted the largest gain in market share, from 8.0% to 8.5%. The Chase/Bank One portfolio posted the second highest gain of 40 basis points. Credit card outstandings at year-end 2004 came in at $687 billion, a 2.8% gain over 2003. The top ten issuers posted a 3.7% gain during 2004, according to CardData ([www.carddata.com][1]).

CREDIT CARD LEADER SCOREBOARD
(EOP MARKET SHARE/MANAGED CARD LOANS)
ISSUER EOY-03 EOY-04 CHNG
1. Chase 19.3% 19.7% +40bps
2. Citi* 17.6% 17.7% +10bps
3. MBNA 12.6% 11.7% -90bps
4. BofA 8.0% 8.5% +50bps
5. Cap One 6.9% 7.1% +20bps
6. Disc** 7.2% 7.0% -20bps
7. AmEx*** 5.8% 5.8% NC
8. HSBC**** 2.8% 3.0% +20bps
9. Prov 2.5% 2.7% +20bps
10.Wells 1.1% 1.3% +20bps
TOTAL SHARE 83.8% 84.5% +70bps
TOTAL LOANS $560.4 $581.1 + 3.7%
INDUSTRY $668.0 $687.0 + 2.8%
* Citi includes approx. $2 billion in non-U.S. card loans.
** Discover’s fourth quarter ended 11/30/04.
*** AmEx does not include charge card outstandings or foreign card loans.
**** HSBC is estimated; no Q4 report issued to-date.
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Top Ten Outstandings Grew 3.7% in 2004

5, Country, Priority, UNITED STATESBy Robert McKinley 01/31/2005

Bank credit card outstandings, managed by the nation’s ten largest issuers, grew a modest 3.7% during 2004, ending the year at $581.1 billion. MBNA, the nation’s third largest issuer, posted a decline of nearly 5%, and Discover was flat year-over-year, while the other eight issuers posted gains ranging from 3% to 17%. The biggest gain was produced by Wells Fargo Card Services and Wells Fargo Financial Bank, which together held $8.8 billion in outstandings at the end of 2004 compared to $7.5 billion one-year ago. Chase, which merged with Bank One last year to become the #1 U.S. issuer, posted an above average gain of 5.3%, according to CardData ([www.carddata.com][1]). Bank of America, which merged with Fleet in 2004 to become the #4 U.S. issuer, turned out a 9.3% gain. Turnaround issuer, Providian, reported a 9.5% increase to $18.5 billion for 2004. Capital One, the former powerhouse of double-digit growth, reported a middling gain of 5% in the USA for 2004. However, Capital One edged by Discover to become the nation’s #5 ranked issuer based on outstandings.

CARD LEADER SCOREBOARD
(EOP Managed Outstandings)
ISSUER EOY-03 EOY-04 CHNG
1. Chase $128.6 $135.4 + 5.3%
2. Citi* $117.7 $121.7 + 3.4%
3. MBNA $ 84.1 $ 80.2 – 4.6%
4. BofA $ 53.6 $ 58.6 + 9.3%
5. Cap One $ 46.3 $ 48.6 + 5.0%
6. Disc** $ 48.4 $ 48.3 – 0.2%
7. AmEx $ 38.5 $ 40.1 + 4.1%
8. HSBC*** $ 18.8 $ 20.9 +11.1%
9. Prov $ 16.9 $ 18.5 + 9.5%
10.Wells $ 7.5 $ 8.8 +17.3%
TOTAL $560.4 $581.1 + 3.7%
* Citi includes approx. $2 billion in non-U.S. card loans.
** Discover’s fourth quarter ended 11/30/04.
** HSBC (f/k/a Household) is estimated; no Q4 report issued to-date.
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

TSYS Seals the BofA Deal through 2014

5, Country, Priority, UNITED STATESBy Robert McKinley 01/26/2005

TSYS has extended its current agreement with Bank of America, which includes all consumer- and commercial-credit VISA and MasterCard accounts issued by Bank of America, as well as the recently acquired portfolio of FleetBoston, through 2014. TSYS also processes Bank of America’s merchant accounts through Vital Processing Services, a joint venture with Visa U.S.A. TSYS recently announced an agreement with Visa to acquire its 50-percent equity stake in Vital Processing. The acquisition is expected to close in the first quarter. Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses, and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. TSYS (NYSE: TSS) brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe.

BofA Tops $100B in 04 Debit Card Volume

5, Country, Priority, UNITED STATESBy Robert McKinley 12/20/2004

Bank of America debit cardholders spent a record $100 billion on their debit cards for goods and services during 2004. BofA becomes the bank the first financial institution to pass the milestone within any year. Bank of America is the #1 debit card issuer in the country, with more than 22 million cards issued, making up 15% of the market.

BofA and Alaska Airlines Launch a VISA Platinum

5, CANADA, Country, PriorityBy Robert McKinley 12/06/2004

Alaska Airlines and Bank of America have rolled-out a new “VISA Platinum Card” in Canada. The new card gives cardholders the opportunity to earn miles for credit card charges and other benefits including one $50 (USD) round-trip Companion Certificate upon approval, and each year thereafter. Cardholders also receive 5,000 “Bonus Miles” upon approval, 2,000 “Anniversary Bonus Miles,” and one mile for every dollar in purchases. The Alaska Airlines Mileage Plan network includes 11 airlines serving more than 700 destinations on six continents. Alaska and its sister carrier, Horizon Air, together serve more than 80 cities in Alaska, the Lower 48, Canada and Mexico.

BofA and Alaska Airlines Intro a Canadian Card

5, Country, Priority, UNITED STATESBy Robert McKinley 12/02/2004

Alaska Airlines and Bank of America have rolled-out a new “VISA Platinum Card” in Canada. The Alaska Airlines Visa Platinum gives cardholders the opportunity to earn miles for credit card charges and other benefits including one $50 (USD) round-trip Companion Certificate upon approval, and each year thereafter. The Alaska Airlines Mileage Plan network includes 11 airlines serving more than 700 destinations on six continents. Alaska and its sister carrier, Horizon Air, together serve more than 80 cities in Alaska, the Lower 48, Canada and Mexico.

Top 5 Issuers Control 63% of the U.S. Market

5, Country, Priority, UNITED STATESBy Robert McKinley 10/25/2004

Consolidation in the bank credit card industry has given the top issuers control of more than 60% of the U.S. market. At the end of the third quarter, the top five issuers held $430.9 billion in U.S. card loans in a market of approximately $680 billion. Over the past five years, the market share of the top five issuers hovered around 53%. In 2000, the top five held $295 billion in card loans in a market of $569 billion. The recent merger of Chase and Bank One created the nation’s largest issuer with $131.5 billion in credit card outstandings. The Bank of America and FleetBoston merger also added more share to the top five issuers. At the end of the third quarter the top five U.S. issuers are: Chase, Citibank, MBNA, Bank of America, and Discover. For complete details on the third quarter performance of U.S. issuers, visit CardData ([www.carddata.com][1]).

TOP 5 – 3Q/04
Rank/Issuer Receivables
1. Chase $131.5 billion
2. Citi $117.2 billion*
3. MBNA $ 79.7 billion
4. BofA $ 55.4 billion
5. Discover $ 47.1 billion**
TOTAL $430.9 billion
*includes some non-U.S. accounts within North America
** as of August 31st

Top 5 Historical – Third Quarter
YEAR RECEIVABLES
2000: $295.0 billion
2001: $330.6 billion
2002: $352.7 billion
2003: $362.7 billion
2004: $430.9 billion
SOURCE: CardData (www.carddata.com)

[1]: http://www.carddata.com

BofA to Install NCR’s APTRA Edge for ATMs

5, Country, Priority, UNITED STATESBy Robert McKinley 10/20/2004

Bank of America has agreed to use NCR’s “APTRA Edge” open-architecture, client-server software for the bank’s advanced-function ATM channel. NCR says more than 70% of all multivendor projects worldwide currently run on NCR’s Windows-based “APTRA” platform, which enables advanced transactions and relationship-driven services, such as personal preferences, voice guidance, and “No Envelope” Deposit. BofA has more than 16,000 ATMs. In August, S2 Systems announced “OpeN/2” support for NCR’s “APTRA” software and cash acceptor. (CF Library 8/20/04)

BofA and National Processing Deal Done

5, Country, Priority, UNITED STATESBy Robert McKinley 10/19/2004

Bank of America closed its $1.4 billion acquisition of National Processing. As the No. 1 check processor, and debit card issuer and the No. 4 credit card issuer in the United States, Bank of America feels that the acquisition will enable them to innovate and create efficiencies in electronic payments. B of A is the No. 1 Small Business Administration lender in the U.S. It serves clients in 150 countries and has connections with 96 percent of the U.S. Fortune 500 companies and 82 percent of the Global Fortune 500. National Processing, Inc. provides merchant credit and debit card processing through its wholly owned operating subsidiary, National Processing Company, LLC, which supports more than 700,000 merchant locations and represents one out of every six MasterCard(R) and VISA(R) transactions processed nationwide. National City Corporation’s core businesses include commercial and retail banking, consumer finance, asset management, and mortgage origination and servicing. It is one of the nation’s largest financial holding companies.

BofA Card Income Up 9%; Receivables Top $55B

5, Country, Priority, UNITED STATESBy Robert McKinley 10/15/2004

Bank of America added $3.4 billion in credit card loans during the third quarter ending with $55.4 billion, a 6.5% sequential gain. The issuer opened 1.6 million new credit card accounts, and card income grew 9% over the prior quarter. BofA says the strong account growth was driven by targeted direct mail marketing campaigns, strong co-brand programs, effective cross selling of cards in banking centers, and improved point of sale technology. Third quarter charge-offs were 5.48%, compared to 5.88% in the prior quarter, and 5.33% one year ago. Managed 30+ day delinquency was 4.11%, compared to 3.86% in the second quarter, and 3.84% for 3Q/03. Managed 90+ day delinquency was 1.88%, compared to 1.76% in the second quarter, and 1.76% for 3Q/03. BofA also reported that active users of online banking increased by 600,000 to 11.8 million while bill payment volume increased to more than $23 billion in 3Q/04. For complete details on Bank of America’s 3Q/04 performance visit CardData ([www.carddata.com][1]).

BOFA CARD LOAN HISTORICAL
1Q/03 $29.1 billion
2Q/03: $30.8 billion
3Q/03: $33.6 billion
4Q/03: $36.6 billion
1Q/04: $37.3 billion
2Q/04: $52.0 billion
3Q/04: $55.4 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

NAP Shareholders Approve BofA Merger

5, Country, Priority, UNITED STATESBy Robert McKinley 10/12/2004

Shareholders of Louisville-based National Processing have approved the merger with Monarch Acquisition and Bank of America. National Processing, Inc. will merge into Monarch Acquisition, Inc. and become a subsidiary of Bank of America. Each outstanding National Processing common share will turn into the right to receive $26.60 in cash with no interest. National Processing, Inc. is a leader in providing merchant credit and debit card processing through its subsidiary, National Processing Company, LLC. NPC supports more than 700,000 merchant locations and represents one out of six MasterCard(R) and VISA(R) transactions processed across the nation.

BofA Enables Customer-to-Customer Transfers

5, Country, Priority, UNITED STATESBy Robert McKinley 10/01/2004

Bank of America is introducing a new feature to its Online Banking, enabling customers to transfer money instantaneously from their personal checking, savings, line of credit, or credit card accounts to other B of A personal deposit account customers. Bank of America executive Sanjay Gupta suggests that parents of college students will find the online transfers to be especially convenient as well as those who need to send money to family or friends within B of A’s coast to coast network. Bank of America serves 33 million consumers in 29 states as well as the District of Columbia. To access the new feature, consumers can register for free Online Banking at the Bank of America Web site (http://www.bankofamerica.com/) and select the “Transfer Funds” option. This service is currently available to customers who have accounts in the Southeast, Southwest, and Midwest. Bank of America has over 11.7 million active Online Banking customers, the most customers in the industry.

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