Discover Posts Record 1Q/11 Net Income

Discover posted 1Q/11 net income of $465 million, compared to a $104 million net loss in the year ago quarter. This was thanks in part to card sales volume up 7% to $24 billion; credit having improved and with the credit card net charge-off rate having declined sequentially 99 basis points to 5.96%; credit card loans over 30 days delinquent having declined 47 basis points to 3.59%; payment services’ pretax income up 16% from the prior year; and payment services transaction volume up 21% since the year ago quarter to $43 billion.

Credit card loans ended the quarter at $44.3 billion, a 3% decline from the prior year, while net interest income increased $46 million from the prior quarter. Payment Services pretax income of $43 million in the quarter was up $6 million by 16% from the year figure thanks to an $11 million increase in revenues. Payment Services dollar volume was a record $43.2 billion for the first quarter, up 21% from the prior year, driven by higher Diners Club International, third-party issuers volume and PULSE, which saw transactions up 29%.

Discover 4Q/10 Net Income Up $90mm Q/Q

Discover Financial reported 4Q10 net income of $350.0 million compared to the year ago figure of $577.8 million and 261.0 million last quarter. This was thanks in part to $23 billion in card sales volume, an increase of 6% year-over-year but $1 billion less than 3Q/10; net card charge-offs down $103 million from the prior quarter to a net charge-off rate of 6.58%; a delinquency rate of 3.89% for loans over 30 days past due with delinquent balances down a total of $181 million; and its Payment Services division having processed a record transaction volume of $40.4 billion. Additionally, Discover Payment Services’ profit before tax up 32% from the prior year. For complete details on Discover Financial Performance, visit CardData.com (www.carddata.com).

U.S. CARD PRE-TAX PROFITS
1Q/09: $167.0 million
2Q/09: $387.9 million
3Q/09: $577.8 million
4Q/09: $546.5 million
1Q/10: $207.6 million
2Q/10: $258.0 million
3Q/10: $261.0 million
4Q/10: $350.0 million
Source: CardData (www.carddata.com)

Discover Posts Net Income Up $3MM Q/Q

Discover Financial reported 3Q10 net income of $261 million compared to the year ago figure of $577.8 million and 258.0 million last quarter. This was thanks in part to $24 billion in card sales volume, an increase of 5% year-over-year; net charge-offs being down $102 million, compared to $81 million last quarter; over 30 day-delinquencies down $180 million from the prior quarter; and the continuously dropping net charge-off rate of 7.18%. Additionally, Discover Payment Services’ showed continued strong results with profit before tax up 36% from the prior year, and transaction volume of $39 billion, up 8% from the prior year.

U.S. CARD PRE-TAX PROFITS
1Q/09: $167.0 million
2Q/09: $387.9 million
3Q/09: $577.8 million
4Q/09: $546.5 million
1Q/10: $207.6 million
2Q/10: $258.0 million
3Q/10: $261.0 million
Source: CardData (www.carddata.com)

Discover Reports 2Q/10 Net Income up $258mm

Discover Financial reported 2Q10 net income of $258 million compared to the year ago figure of $226 million. This was thanks in part to $23 billion in card sales volume, an increase of 6% year-over-year; net charge-offs being down $81 million and over 30 days delinquencies down $266 million from the prior quarter; and the continuously dropping net charge-off rate of 7.97%, which is expected to drop to between 7.5% and 8%. Additionally, Discover Payment Services’ showed continued strong results with profit before tax up 36% from the prior year to $36 million, and transaction volume of $37 billion, up $10 million from the prior year. Revenues were up $6 million, reflecting an increase in the number of transactions and higher margin volume on the PULSE network and lower incentive payments as well as higher Diners Club revenues. Meanwhile, Payment Services dollar volume was $37 billion, up 1% from the prior year.

U.S. CARD PRE-TAX PROFITS
1Q/09: $167.0 million
2Q/09: $387.9 million
3Q/09: $912.8 million
4Q/09: $546.5 million
1Q/10: $207.6 million
2Q/10: $258.0 million
Source: CardData (www.carddata.com)

GCA Pulls the Plug on the Arriva Card

Launched in May 2006, Global Cash Access is pulling the plug on its private label credit card for the gaming environment. As part of its strategy of focusing on its core electronic payments business, GCA will discontinue offering the “Arriva Card.” The card offered credit limits up to $50,000 via GCA ATMs. The Company says it is currently studying a range of strategic options for the “Arriva Card” portfolio. GCA noted that even though it believes it has effective credit quality safeguards in place, it is the Company’s view that, in this environment, no consumer credit product will be immune to losses. GCA’s core electronic payments business involves supplying approximately 1,000 casinos and other gaming properties worldwide. (CF Library 5/8/06)

Hypercom 1Q/03

Although Hypercom reported a larger loss in 1Q/03 than 1Q/02, the company continued to strengthen its balance sheet as cash balances increased to $42.9 million at the end of the first quarter, compared to $29.8 million at year-end 2002. The payment card terminal manufacturer says a significant reduction in working capital requirements plus current quarter operating results helped strengthen its cash position. Hypercom’s 1Q/03 loss, before discontinued operations, was $1.1 million compared to a loss of $900,000 in the same quarter last year. First quarter net revenues were $55.7 million compared to $70.8 million in 1Q/02. Hypercom says seasonal fluctuations, the soft global economy, and the ongoing conflict in Iraq contributed to lower first quarter revenues. The company says its projection for 2003, excluding the impact of discontinued operations, is net revenues between $265.0 million and $273.0 million, and income from continuing operations between $19.7 million and $24.0 million. For complete details on Hypercom’s 1Q/03 results visit CardData ([www.carddata.com][1]).

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

LOBLAW 4Q/02

Loblaw Companies reported that during the fourth quarter it securitized
$60 million of credit card receivables, $244 million year-to-date. The
company offers the “President’s Choice MasterCard” through a partnership
with President’s Choice Financial. President’s Choice Financial services is
a co-venture between Loblaw Companies Limited and Canadian Imperial Bank of
Commerce and was formed in early 1998.
Meanwhile, Loblaw reported that its sales for the fourth quarter increased
7.5% or $392 million to $5.6 billion. Loblaw Companies Limited is Canada’s
largest food distributor.

HF Card Sale

Sioux Falls, SD-based HF Financial Corp., the parent company for Home Federal Bank, confirmed Monday the closing of the sale of its credit card loan portfolio. The principal balance of the remaining receivables at closing was $2.9 million and proceeds from the sale were $500,000. The Company’s subsidiary, HF Card Services, LLC will be winding down operations and dissolving during the first quarter. The Company initially recorded a fiscal 2002 loss from the write down of credit card receivables of $1.4 million, net of taxes. HF Financial also owns Mid America Capital Services, Hometown Insurors and HF Financial Group.

CITIGROUP GLOBAL CARDS

Citigroup reported a 32% increase in international cards, reflecting
strong balance growth across all markets except Latin America, as well as
the adverse impact in the prior year of Argentina pesification. The
increase in the international cards provision for credit losses is
primarily due to higher credit costs in the Hong Kong and UK markets,
although credit losses have stabilized from the preceding quarter. At
year-end 2002, Citigroup had 13.5 million international cards, a 5% gain
over 4Q/01. Fourth quarter volume was up 10% to $9.1 billion. Average
managed loans for international cards was $11.3 billion.

Citigroup 4Q/02

Citigroup reported this morning that its North America Cards division, which includes the card operations of Mexico-based Banamex, posted $818 million in profits for the fourth quarter, a 22% increase over 4Q/01. Card volume for 4Q/02 was up 8% to $65.7 billion and average outstandings hit $114.1 billion, a 6% increase over the year-ago quarter. Profits were driven largely by a 10% increase in revenue and the lower cost of funds. Citi’s 4Q/02 ROA was 2.70% compared to 2.37% one year ago. The strong performance came despite a loss of 4.4 million accounts over the past twelve months. Citigroup’s North American account base dropped from 93.1 million accounts for 4Q/01 to 88.7 million for 4Q/02. Citi also reported a lower delinquency and charge-off rate compared to the previous quarter and year ago period. Delinquency (90+ days) declined to 1.84% for 4Q/02, compared to 1.86% in the third quarter, and, 1.96% one year ago. Charge-offs dropped to 5.61% from 5.75% in 3Q/02 and 5.69% in 4Q/01. For complete details on Citigroup’s 4Q/02 performance as well as historical performance visit CardData ([www.carddata.com][1]).

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

BMO 3Q/02

Bank of Montreal says it plans to expand disclosure of results of
its U.S. operations next year. BMO noted that Harris Bank, registered as
Harris Bankcorp, Inc., will voluntarily forego its status as a registrant
of the U.S. SEC. Harris Bank has no publicly-held securities outstanding
that require
SEC registration. Meanwhile for the quarter ending 10/31/02 BMO reported
net income of $1,417 million, down modestly from a year ago. Return on
equity of 13.4% was down from 13.8% in 2001.