Premier from Fiserv Demos Quick Scalability

Fiserv financial services technology solutions concluded its benchmark test demonstrating the scalability and performance of its “Premier” from Fiserv. Run on IBM Power Systems with Solid State Drives (SSDs), show the ability of Premier to manage the Online Transaction Processing (OLTP) and account processing requirements of current and prospective clients while cost-effectively accommodating the future growth of financial institutions of almost any size. Tests showed “Premier” achieved an OLTP benchmark of 5.1 million transactions per hour, surpassing prior benchmark tests utilizing IBM hardware, which demonstrated 1.2 million online transactions per hour.

ScanSource Quarterly Sales up 25% Y/Y

ScanSource distributor of AIDC (automatic identification and data capture), POS, communications and physical security products for the reseller market, announced sales results for its quarter ended June 30, 2011 are expected to be in the range of $724 million to $734 million, compared to $582 million for the same period one year ago. On our August 18, 2011 quarter- and fiscal year-end conference call, ScanSource executives will provide sales results by geographies and product areas, net earnings, and a forecast for the following quarter. This reflects ScanSource’s normal reporting practice whereby quarterly sales results are disclosed in a release at a practicable date soon after quarter-end.

Citigroup 1Q/11 Revenues Up 7% Sequentially

Citigroup posted a 1Q/11 net income of $3.0 billion from $1.3 billion in 4Q/10 while revenue totaled $19.7 billion, up 7% from 4Q/10 but down 22% from 1Q/10 revenues of $16.5 billion. This was thanks in part to continued credit improvement as Citigroup net credit losses declined for the seventh consecutive quarter to $6.3 billion. With this, March, gross yield reached 26.73%, the highest point since April 2010, as the 12-month average gross yield was 25.43% compared to the 12-month average of 25.04% at the March 2010 reporting period. Meanwhile, the Monthly payment rate (MPR) posted a 12-month average of 12.80%, up slightly from 12.06% at the March 2010 reporting period, indicating consumers are paying off their credit card debts slightly more quickly. Moreover, net chargeoffs declined to a 12-month average of 12.27%, down from 13.22% at the March 2010 reporting period, according to Fitch ratings, as the 12-month average 60+ day delinquencies were 5.40% compared to the year ago average of 6.15%.

M&T Bank Announces 1Q/11 Profit

M&T Bank reported its results of operations for 1Q/11, demonstrating loans past due 90 days or more accrued interest of $264 million at the end of the recently completed quarter, including loans guaranteed by government-related entities of $215 million. Such past due loans were $270 million and $203 million at December 31, 2010 and March 31, 2010, respectively, including $214 million and $195 million of government guaranteed loans at those respective dates. Noninterest income totaled $314 million in the first quarter of 2011, compared with $258 million and $287 million in the first and fourth quarters of 2010, respectively. M&T had total assets of $67.9 billion at March 31, 2011, compared with $68.4 billion a year earlier while loans and leases were $52.1 billion at the recent quarter-end, up $675 million from $51.4 billion at March 31, 2010 and $128 million higher than $52.0 billion at December 31, 2010. Total deposits rose 6% to $50.5 billion at March 31, 2011 from $47.5 billion a year earlier and were up 1% from $49.8 billion at December 31, 2010.

CitiGroup 4Q/10 Consumer Lending Up 3% Y/Y

Citigroup posted a 4Q/10 net income of $1.3 billion compared to a net loss of $7.6 billion in the year ago quarter thanks in part to a 3% growth in both Regional Consumer Banking and Transaction Services. Net income for 2010 was $10.6 billion compared to a net loss of $1.6 billion in 2009. With this, Local Consumer Lending revenues were $3.4 billion, down $144 million, or 4%, sequentially, driven by the continued decline in balances to increase refund reserves related to Japan Consumer Finance. Expenses of $2.0 billion increased $96 million, or 5%, from the prior quarter, net credit losses declined $331 million, or 8%, sequentially to $3.6 billion. This was mostly driven by Retail Partner cards, which experienced net credit losses of $1.4 billion, down $153 million, reflecting continued improvement in the credit quality of the portfolio. This improvement is apparent in figures showing loans 30-89 and 90+ days past due were down 11% and 8%, respectively, from the prior quarter. Also, the net loan loss reserve release was $783 million, compared to a $953 million net release in the prior quarter thanks in large part to Retail Partner cards and international loans. Transaction Services revenues were $2.6 billion, up 1% from the prior quarter thanks to growth in each of Latin America, Asia and EMEA, which was however offset partially by declines in North America. Expenses were $1.3 billion, up $87 million, or 7%, from the prior quarter.

Citi Transactions Posts 2Q/10 Net Income of $929MM

Citigroup reported 2Q/10 net income of $2.7 billion or $0.09 per diluted share, on revenues of $22.1 billion, including Transaction Services with $929 million in net income, for a second consecutive profitable quarter. Provisions for credit losses and for benefits and claims declined $2.0 billion sequentially to $6.7 billion, the lowest level since the third quarter of 2007, reflecting continued improvement in credit quality. This helped increase Regional Consumer Banking’s net income by 16% sequentially to $1.2 billion. Citigroup has been focusing on Transaction Services and Regional Consumer Banking. Regional Consumer Banking (“RCB”) revenues were $8.0 billion, down $50 million, or 1%, sequentially, as declines in North America and EMEA were partially offset by continued growth in Asia and Latin America. Transaction Services revenues were $2.5 billion, up $65 million, or 3%, sequentially, with growth across all international regions. Transaction Services net credit losses were $1 million, flat compared to the prior quarter. The $35 million net loan loss reserve release in the quarter was $17 million higher than the prior quarter’s release. Net credit losses in Local Consumer Lending declined $403 million, or 8%, sequentially to $4.5 billion, mainly driven by Retail Partner Cards.

Citi Posts 6% Gain in 1Q/10 Credit Loss

Citigroup today reported 1Q/10 net income of $4.4 billion or $0.15 per diluted share, and revenues having grown $7.5b to $25.4b. RCB net credit losses were $2.2 billion, up $122 million or 6%, due to an increase in loans 90+ days past due in the fourth quarter of 2009 in Citi-branded cards. The $4 million net loan loss reserve build was down from $71 million in the prior quarter. EMEA RCB net credit losses were $97 million, down $41 million or 30%. The $10 million net loan loss reserve release in the quarter compared to a $10 million net build in the prior quarter. Net credit losses in Retail Partner Cards were $1.9 billion, down 2% sequentially, reflecting loss mitigation efforts and continued decline in loans. International net credit losses declined $172 million, or 22%, sequentially to $612 million, reflecting continued improvement in credit trends. Provisions for credit losses and for benefits and claims declined $2.4 billion sequentially to $8.6 billion, the lowest level since the first quarter of 2008. Total provisions for credit losses and for benefits and claims of $8.6 billion declined $2.4 billion or 22% sequentially, to the lowest level since the first quarter of 2008.

Capital City Reports First Quarter 2010 Results

FL-based Capital City Bank Group reported a net loss of $3.5 million
for 1Q/10 compared to a net loss of $3.4 million in 4Q/09 and net
income of $0.7 million for the first quarter of 2009.
Compared to the linked fourth quarter of 2009, lower operating
expenses of $1.9 million contributed to earnings, but were offset by a
$1.7 million reduction in operating revenues (net interest income plus
noninterest income).
Average earning assets were $2.358 billion for the first quarter of
2010, an increase of $120.7 million, or 5.4% from the fourth quarter of
2009, and an increase of $192.1 million, or 8.9% from the first quarter
of 2009. The improvement from the fourth quarter is primarily
attributable to an increase in the overnight funds position of $190.5
million, partially offset by an $11.3 million and $58.5 million decrease
in the investment and loan portfolios, respectively.

Target’s Credit Card Profits Rise in 3Q/09

Target reported that pre-tax profit for its credit card segment nearly doubled in the third quarter to $60 million, compared to the year ago quarter of $35 million, but a little below the prior quarter’s $63 million. Charge-offs rose to 12.7% in the third quarter, compared to 12.1% in the second quarter and 8.7% one-year ago. Quarter-end receivables decreased to $8.0 billion, compared to $8.3 billion in prior quarter. Delinquency (60 day) rose to 6.5% for 3Q/09 compared to 5.8% in the second quarter. Delinquency (90 day) also edged up to 4.6% from 4.1% in 2Q/09. Target noted that credit card profit was driven by improved portfolio performance that more than offset the impact of lower floating interest rates. Target’s pretax return on invested capital (ROIC) from its investment in the credit card segment increased to 9.0% in the third quarter from 4.3% in 2008. For complete details on Target’s latest performance, visit CardData (www.carddata.com).

TARGET CARD LOAN HISTORICAL
3Q/08: $8.745 billion
4Q/08: $8.764 billion
1Q/09: $8.457 billion
2Q/09: $8.293 billion
3Q/09: $8.048 billion
Source: CardData (www.carddata.com)

Western Union Revenue Down as Transactions Rise

Western Union reported that third quarter revenue was down 5% to $1.3
billion. The consumer-to-consumer segment was also down 5% to $1.1
billion in the third quarter, however WU handled 50 million C2C
transactions, a 3% increase over 3Q/08. The international portion of C2C
revenue declined 3% on transaction growth of 6%. The Global Business
Payments segment declined 3% to $171 million. During the quarter, WU
completed the acquisition of international B2B payments provider Custom
House; signed letters of agreement with Lagardère Services, Ortel
Finance and PayUp, potentially adding 15,000 locations in Europe over
the next few years; renewed agreement with Agricultural Bank of China,
bringing an additional 15,000 agent locations by 2011; agreed to partner
with Maxis Communications in Malaysia to launch a service that will
allow Maxis subscribers to send cross-border remittances from their
mobile phones worldwide. For complete details on Western Union’s third
quarter results visit CardData (www.carddata.com).

Target Q2 Credit Card Charge-Offs Top 12%

Target reported that pre-tax profit for its credit card segment declined 15% in the second quarter to $63 million, compared to the year ago quarter, but significantly higher than the first quarter’s $39 million. Charge-offs rose to 12.1% in the second quarter, compared to 11.9% in the first quarter and 7.6% one-year ago. Quarter-end receivables decreased to $8.3 billion, compared to $8.5 billion in prior quarter. Delinquency (60 day) declined to 5.8% for 2Q/09 compared to 6.1% in the first quarter. Delinquency (90 day) also edged down to 4.1% from 4.4% in 1Q/09. Target says that the reduced credit card segment profit in the quarter was the result of Target’s reduced investment in the segment and lower floating interest rates, partially offset by improved portfolio performance. Target also notes that its pretax return on invested capital from its investment in the credit card segment increased to 8.8% in the second quarter from 8.2% in 2008. For complete details on Target’s latest performance, visit CardData (www.carddata.com).

TARGET CARD LOAN HISTORICAL
2Q/08: $10.22 billion
3Q/08: $8.745 billion
4Q/08: $8.764 billion
1Q/09: $8.457 billion
2Q/09: $8.293 billion
Source: CardData (www.carddata.com)