Irish consumer spending continued to increase at a sharp pace during November as household expenditure rose +7.9% year-on-year (YOY). This represents the sharpest seen in the 15-month series history.
Wells Fargo Credit card first quarter outstandings were down 3% QOQ to $30.08 billion on seasonality, but up 15% YOY reflecting new account growth and growth in private label and co-brand outstandings driven by the card portfolio acquisition in 4Q14.
Given the uptick in bank credit card delinquency in the third and fourth quarters, it is likely charge-offs will start to climb upwards as early as the first quarter and will continue to march north for the rest of 2015.
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.
The average U.S. 90+ day delinquency rate among the nation’s four largest issuers declined 12 basis points (bps) to 1.04% during 2014. The top 100 U.S. banks also posted a 13 bps decline last year to 1.08%.
The average charge-off ratio among the nation’s four largest issuers declined 37 basis points (bps) year-on-year (Y/Y) to 2.97% in the fourth quarter (Q4/14). The top 100 U.S. banks posted a 34 bps decline last year, also to 2.97%.
The average U.S. 30+ day delinquency rate among the nation’s four largest issuers declined 25 basis points (bps) to 2.07% during 2014. The top 100 U.S. banks also posted a 25 bps decline last year to 2.16%.
Citibank faced a rough 2014 as fourth quarter (Q4/14)net revenues declined 8% sequentially (Q/Q) and flat year-on-year (Y/Y) to $16.5 billion. Citi’s Global Consumer Banking business declined 2% Q/Q and flat Y/Y to $9.5 billion for Q4/14.
Charge-offs among the nation’s top six credit card issuers will likely drop to 2.33% in the fourth quarter, but will likely inch up in the first quarter as delinquency ramps up. The fourth and first quarter are somewhat skewed due to the seasonality denominator.
Despite forecasts of Americans shopping online this holiday season versus producing foot traffic in brick-and-mortar retail stores, a new projection says holiday sales will grow 3.5% year-on-year.
The 2013 Federal Reserve Payments Study Detailed Report provides new information on the payments landscape including updated results on the intensity of card use by consumers and businesses; further discussion of previously released information on third-party payments fraud; new estimates of over-the-counter cash withdrawals and deposits at bank branches and wire transfers made by businesses and consumers; and discussion of emerging and alternative payments likely to replace traditional payments such as cash and checks.
eGlobal has acquired the assets of The Best There Is Inc. (T.B.T.I.). T.B.T.I. provides ATM services to a number of large hospitality properties around the country. This transaction was signed and closed on May 5, 2014. eGlobal delivers specialized ATM solutions to merchants, distributor partners and financial institutions, enabling and enhancing services they provide to their customers. eGlobal consults with hospitality clients on optimal ATM placement for every location, depending on property type, seasonality and traffic-flow patterns.