Card Industry Risk-Adjusted Revenue Rises 13% in 2015

Risk-Adjusted Revenue Rises 13%

Revenue earned by the card industry last year is roughly $165 billion. However, pre-tax net income after all expenses (charge offs, operating expense and cost of funds) falls to $121.0 billion. According to R.K. Hammer there can be a large difference between these two metrics. Risk-Adjusted” is just that, the default risk (net charge offs)…

Visa Europe 2019

Visa Europe (VE) is poised to top € 2 trillion of POS purchase transaction (PTV) volume in 2018 and easily exceed € 2.2 trillion the following year. VE will likely, in 2015, capture more than €1 in €6 of everyday consumer spending across Europe, according to CardData. Forecaster RAM Research’s CAGR Corner computes VE’s compound annual growth rate (CAGR) at 9.74% and sees nothing on the horizon to dampen the current trajectory.

Visa Q4/14

Visa profits for the fourth calendar quarter increased 11.5% year-on-year (Y/Y) to $1.57 billion and soared 46.0% sequentially. Visa took a $450 million pre-tax litigation provision, or $283 million on an after-tax basis, in the third quarter related to the interchange multi-district litigation case.

Synchrony Q4/2014

Synchrony Financial (f/k/a GE Capital Retail Finance) posted a 19.9% surge in fourth quarter (Q4/14) profits to $531 million, but slipped slightly from the prior quarter. Period-end loan receivables growth for the retail payment card giant remained strong at 7%, driven by purchase volume and average active account growth.

Card Portfolios 2014

The number of payment card portfolios sold in 2014 dipped to just five portfolios worth $2.7 billion. This was down significantly from year end 2013 and the record card deals done in 2012. In 2013 an estimated $17.2 billion in 10 portfolios were done, not including numerous tiny card portfolio sales ( < $10MM).