Capital One’s third quarter earnings were relatively good as the company delivered a 1.43% return on average assets (ROAA), up from the sequential quarter which was impacted by a large restructuring charge, but down 8 basis points from the year-ago quarter.
A new survey shows the average fee for using an out-of-network ATM rose four percent over the past year to a record $4.52 per transaction.The average overdraft fee also set a new record ($33.07) and is up nine percent since 2010.
While the average yield for U.S. Visa and MasterCard-branded credit cards, issued by the top four issuers, declined 10 basis points (bps) sequentially (QOQ) in the second quarter to 11.44%, the peer group has bumped up by 6 bps year-on-year (YOY). In Q2/15, Chase was the only top issuer with an increase in yield QOQ, according to CardData.
Capital One second quarter earnings of $830 million were significantly impacted by a $147 million restructuring charge, earnings were further offset by a $41 million build of litigation reserves relative to the company’s U.K. Payment Protection Insurance reserve.
Stung by the loss of the Costco co-branded credit card program, the recent loss of a recent DOJ lawsuit, and the potential of rising consumer interest rates, American Express’ (AXP) Asset-Backed Securities (ABS) credit card program should strong in 2015 given its liquidity profile.
The average yield for U.S. Visa and MasterCard-branded credit cards, issued by the top four issuers, will likely decline by eight basis points (bps) for the first quarter, and down 30 bps from mid-year 2014. Forecaster RAM Research projects an average yield for the Big 4 of 11.30% in the first quarter, compared to 11.59% one-year ago.
With the exception of Chase, the average yield for U.S. credit cards issued by the top four issuers, remained flat throughout 2014. However, RAM Research predicts U.S. credit card yields will decline slightly in the first quarter, despite the historical seasonality of Q1.
FL-based Velocity Solutions has tackled the problem of the loss of substantial overdraft and interchange revenue for many banks and credit unions. The Company says its new My Rewards Premium Debit Card is the answer.
The average out-of-network ATM fee has climbed to an eight year high, jumping 23% over the past five years. The average cost of going outside the network is now $4.35 per transaction.
U.S. bank credit card profits for the top U.S. Visa and MasterCard (V/M) issuers declined 3.5% year-on-year (Y/Y) and 5.4% quarter-on-quarter (Q/Q) in the first quarter (Q1). According to CardData, Q1 revenue dropped 12.1% Y/Y and 8.9% Q/Q.
U.S. bank credit card profits for the top U.S. Visa and MasterCard (V/M) issuers declined 3.5% year-on-year (Y/Y) and 5.4% quarter-on-quarter (Q/Q) in the first quarter (Q1). According to CardData, Q1 revenue dropped 12.1% Y/Y and 8.9% Q/Q.
U.S. Bancorp announced today that its lead bank, U.S. Bank National Association, has reached an agreement to acquire the Chicago branch banking operations of the Charter One Bank franchise owned by RBS Citizens Financial Group. The acquisition includes Charter One’s Chicago retail branch network, small business operations, and select middle market relationships. Once complete, the acquisition will nearly double U.S. Bank’s deposit market share in the Chicago metro area. Under the terms of this transaction, U.S. Bank will acquire approximately $5.3 billion of deposits, $1.1 billion of loans, 94 branches, and 800 employees for a deposit premium of approximately $315 million, or 6 percent. At close, U.S. Bank will have combined deposits of approximately $11.3 billion in Chicago.