Fiserv announced Geldservice Nederland will implement its cash and logistics technology platform. Namely, GSN has selected a suite of Cash and Logistic Solutions from Fiserv including Integrated Currency Manager, Device Manager, Performance View and MatchPoint. These will enable GSN to optimize currency supply chain management for its clients, including robust capabilities for cash management, incident and event management for self-service devices such as ATMs and in-branch deposit and cash recycling machines, vendor management and business analytics.
FIS banking and payments technology forged definitive agreement to sell its Healthcare Benefit Solutions business to Lightyear Capital for $335 million. The all-cash transaction is expected to close by the end of the third quarter of 2012, subject to required regulatory approvals and customary closing conditions. The sale includes FIS’ Consumer Driven Healthcare Solutions and Health and Financial Network Solutions, which provide benefits administration, multi-purse debit card and benefit account processing and payment fulfillment services to consumers, healthcare providers and payers. FIS will retain its state and federal government-sponsored electronic benefits transfer (EBT) businesses and programs which serve clients in more than 25 states.
Heartland Financial USA has implemented the Fiserv “LoanServ” online, real-time loan servicing solution. The “LoanServ” allows Heartland to optimize and automate most of its loan servicing operations and processes while pursuing its lending growth strategy. This development will help Heartland facilitate its increased loan service volume and complexity. The highly automated “LoanServ” platform offers default management and loss mitigation that are designed to streamline the management of assets and maximize loan performance.
Fiserv financial services technology solutions announced Heartland Financial USA has signed on to use its ReserveLink deposit reclassification solution. ReserveLink will help Heartland to generate additional investment income by greatly reducing or eliminating the need to maintain balances in accounts at the Federal Reserve. Using ReserveLink from Fiserv, Heartland, a $4 billion multibank holding company, sweeps transaction account balances into non-transaction accounts, converting low-interest bearing Federal Reserve account balances into earning assets. Heartland Financial uses the Signature™ bank platform, debit processing, ACCEL/Exchange® PIN debit network, Prologue™ Accounts Payable, Prologue General Ledger and a variety of solutions from Output Solutions at Fiserv.
JPMorgan Chase reported fourth-quarter 2010 net income of $4.8 billion, an increase of 47% compared with $3.3 billion for the fourth quarter of 2009 while full-year 2010 net income was $17.4 billion, an increase of 48% compared with $11.7 billion for the prior year. For the Card Services division, net income was $1.3 billion, compared with a net loss of $306 million in the prior year, and total merchant processing volume was $127.2 billion on 5.6 billion total transactions processed. Meanwhile, end-of-period loans were $137.7 billion, a decrease of $25.7 billion, or 16%, from the prior year and an increase of $1.2 billion, or 1%, from the prior quarter. Average loans were $135.6 billion, a decrease by 17% of $27.6 billion from the prior year and $4.5 billion from the prior quarter. With this, net revenue was $4.2 billion, a decrease of $902 million, or 18%, from the prior year. The provision for credit losses was $671 million, compared with $4.2 billion in the prior year and $1.6 billion in the prior quarter, thanks to lower net charge-offs and a reduction of $2.0 billion to the allowance for loan losses due to lower estimated losses.
Citigroup reported 3Q/10 net income of $2.2 billion for a third consecutive quarterly operating profit, but was down $529 million, or 20%, from the prior quarter. The Transaction Services segment saw a net income of $920 million and was down 1% from the prior quarter, reflecting consistent strength in the business, despite a low rate environment, and continued investments, as growth in Latin America and Asia was offset by declines in North America and EMEA. On a global scale, North America saw a 3Q/10 Regional Consumer Banking segment revenue of $3.7 billion, flat since the previous quarter and down from the year ago figure of $3.8 billion, while the EMEA saw 3Q/10 revenue of $349 million, compared with $376 million in 2Q/10 and the year ago figure of $415 million. Meanwhile, North American Transaction Services saw revenues of $620 million for the quarter, compared with $636 million last quarter and $643 million in 3Q/09, and EMEA Transaction Services totaled $835 million for the quarter, compared with $848 million last quarter and $845 million last year.
Fiserv inancial services technology posted total 1Q/10 GAAP revenue of $1.01 billion, compared with $1.02
billion the year ago period, while total adjusted revenue decreased 1% to $954 million, compared with $968
million in 2009. A slight decline in operating margin and an increase in free cash flow increased 15% over
the prior year to $225 million, thanks in part to decreases in higher margin revenue and continued expansion in consumer payments. With this, Fiserv signed 93 electronic bill payment clients and 46 debit clients. Among its new clients are the Charles Schwab co; the Coastal Federal Credit Union which now makes available the Fiserv “CheckFree RXP” online bill payment and presentment solution to its 195,000 members; First National Bank Alaska, which integrates Fiservâs debit solutions with the “Premier” account processing platform; and SunTrust Bank, which implemented Fiserv’s “Mobile Money.”
1Q/09 $968 million
3Q/09 $992 million
4Q/09 $1.01 billion
Source: CardData (www.carddata.com)
NC-based BB&T Corporation has reported its net income totaled $194
million compared with $318 million earned during the first quarter of
2009. Net charge-offs totaled 1.84% for the quarter, up 1 basis point compared
to the fourth quarter of 2009. The provision for credit losses totaled
$575 million, exceeding net charge-offs by $100 million. The growth
results from loans acquired through the Colonial acquisition,
loans originated by BB&T’s specialized lending group, which increased
15.2% in the first quarter and revolving credit loans, which increased 12.7%
Commercial loans decreased 2.5% reflecting a $2.1 billion decrease in
residential acquisition, development and construction loans compared to
the first quarter last year and slower overall commercial loan demand
Excluding the Colonial acquisition, average total loans decreased 4.3%
The provision for credit losses increased the allowance for loan and
lease losses as a percentage of loans and leases held for investment to
2.65% at March 31 compared to 2.51% at Dec. 31, 2009
The outlook for net charge-offs remains unchanged for 2010 at 1.80%.
JPMorgan Chase reported Card Services net loss of $303 million for 1Q/10, compared with a net loss of $547 million in the prior year. This was thanks in part to lower provision for credit losses, partially offset by lower net revenue. End-of-period managed loans were $149.3 billion, a decrease of $26.9 billion, or 15%, from the prior year and $14.2 billion, or 9%, from the
prior quarter. Average managed loans were $155.8 billion, a decrease of $27.6 billion, or 15%, from the prior year and $7.4 billion, or 5%, from the prior quarter. Managed net revenue was $4.4 billion, a decrease of $682 million, or 13%, from the prior year. Net interest income was $3.7 billion, down by $793 million, or 18%. Noninterest revenue was $758 million, an increase of $111 million, or 17% thanks to a prior-year write-down of securitization interests, partially offset by run-off from the Washington Mutual portfolio. The managed provision for credit losses was $3.5 billion, compared with $4.7 billion in the prior year and $4.2 billion in the prior quarter noninterest expense was $1.4 billion, an increase of $56 million, due to higher marketing expense.
1Q/08 $609 million
2Q/08 $250 million
3Q/08 $292 million
4Q/08 -$371 million
1Q/09 -$547 million
2Q/09 -$672 million
3Q/09 -$700 million
4Q/09 -$306 million
1Q/10 -$303 million
Global Payments electronic transaction processing solutions has signed
an agreement to sell its DolEx- and Europhil-branded money transfer
businesses to an affiliate of Palladium Equity Partners, for which its
will receive proceeds in the range of $85 million to $110 million based
on the operating performance at the time of closing. The Company plans
to report the results of the Money Transfer business as Discontinued
Operations, which is expected to post full year fiscal 2010 revenue
growth up 7% to 10% to $1,615,000,000 and full year fiscal 2010 diluted
earnings from continuing operations per share growth increase up to
$2.42 million. Global Payments provides its services to consumers,
merchants, Independent Sales Organizations (ISOs), financial
institutions, government agencies and multi-national corporations while
Palladium Equity Partners targets investments in business services
companies and financial services.
Seattle-based Washington Mutual reported that second quarter net income
for its Card Services unit sunk to a net loss of more than $175 million,
due to higher credit costs and valuation adjustments. With a significant
sub-prime credit card exposure, WaMu posted a second quarter charge-off
rate of 10.84% and a 30+ day managed delinquency rate of 7.05%.
Charge-offs for the first quarter were 9.32% and 6.49% for the year ago
quarter. Delinquency rose from 6.89% in the prior quarter and 5.11% in
the year ago quarter. Total managed receivables at quarter end remained
level at $26.4 billion. During the quarter, Card Services opened 755,301
new credit card accounts, up from 666,407 in the prior quarter.
Approximately 35% of the new accounts came through the retail channel as
the company continued to leverage its retail network. For complete
details on WaMu’s latest performance, visit CardData ([www.carddata.com](http://www.carddata.com)).
WaMu Net Income Track Record
2Q/07: $ 133 million
3Q/07: $ 66 million
4Q/07: $ 92 million
1Q/08: $ 199 million
2Q/08: ($175 million)
Source: CardData (www.carddata.com)
Target reported that its total credit card revenues for the quarter ending May 3rd increased nearly 20% over the year-ago quarter as late fee and other revenue soared 22% and finance charge revenues increased 20% while third party merchant fees rose 13%. Earlier this month, Target and Chase announced a deal under which Chase will invest in Target’s credit card receivables. Credit card outstandings for the quarter increased 29% year-on-year, topping $8.42 billion. Delinquency (60 days+) for 1Q/08 increased to 4.2%, compared to 4.0% in the previous quarter and 3.2% one-year ago. Charge-offs, as a percentage of period-end receivables, decreased to 7.0% for 1Q/08, compared to 6.4% in the prior quarter, but down from 7.7% one-year ago. For complete details on Target’s latest performance, visit CardData ([www.carddata.com]). (CF Library 5/6/08)
TARGET CARD LOAN HISTORICAL
1Q/07: $6.510 billion
2Q/07: $6.906 billion
3Q/07: $7.652 billion
4Q/07: $8.624 billion
1Q/08: $8.420 billion
Source: CardData (www.carddata.com)