It has taken less than twenty-four months for Metris Companies to grow its card portfolio from $1 billion to more than $3.5 billion. For 1997 Metris’ card receivables more than doubled and charge volume is now growing 89% annually. While other major, aggressive players are growing from either marketing or acquisitions Metris is enjoying the best of both worlds. During the fourth quarter the nation’s preeminent sub-prime card issuer generated 350,000 new accounts and acquired 250,000 accounts. Metris’ marketing expenses totaled $8 million for the fourth quarter and $30 million for all of last year. The company’s other revenue streams are rising too. During the fourth quarter Metris signed up 288,000 card registration customers and about 245,000 extended service plan contracts. The company is also set to launch a new extended service plan product called ‘PurchaseShield’. Chargeoffs and delinquency are also beginning to moderate due to the seasoning of the portfolio. For 1997 Metris had net income of $38.1 million compared to $20.0 million for 1996.
METRIS VITALS (EOY 97)
RECV $3,546,936,000 Charge-Offs 8.3%
YTD VOL $2,700,000,000 Delinquency* 6.6%
ACCTS 2,293,000 Net Int Margin 13.1%
* 30+ days past due