Credit Card Profits

Credit Card Profits Shrivel Amongst Intense Competition

Credit card profits (after tax) among the nation’s Top 4 bank credit card issuers shriveled by 4.2% YOY (year-on-year) in the third-quarter (3Q/19), compared to 44.0% one-year ago. The surge in 2018 was directly related to the corporate tax cuts. Profits (after tax) among the nation’s Top 4 U.S. credit card issuers (Chase [JPM]; Capital…

Top Card Issuer Markeshare

Top Card Issuer Marketshare Rises 30 bps – U.S. PDV Tops $1T

Top card issuer marketshare, based on U.S. purchase dollar volume (PDV) of Visa [V], Mastercard [MA], American Express [AXP] and Discover [DFS], increased 30 bps (basis points) in the third-quarter (3Q/19). Chase, the nation’s largest credit card issuer on outstandings and the fastest growing issuer, based on PDV at 19% YOY (year-on-year), led the Top…

credit card yields

Q3 Credit Card Yield Maintains Double-Digit Record Highs

U.S. card yield, as an average for the nation’s Top 4 issuers, remained at record levels in the third-quarter posting a small uptick sequentially. All of the issuers, except Chase, posted higher yields in the third-quarter from the prior quarter. However, this is fourth consecutive quarter wherein all of the Top 4 exceeded 10%. The…

Card Charge-offs

Third-Quarter Card Charge-Offs Hit 7 Yr Hi & Reserves Soar 10%

Third-quarter card charge-offs among the Top 4 U.S. bank credit card dropped sharply from the prior quarter, a historical pattern, but up slightly from one-year ago, remaining the highest for a third-quarter in seven years. Credit card charge-offs among the nation’s Top 4 credit card issuers decreased 36 bps (basis points) sequentially in the third-quarter…

Third-Quarter Card Volume

Third-Quarter Card Volume for Major 4 Falls 180 bps

Third-quarter U.S. credit card volume, among the Major 4 payment networks (Visa [V], Mastercard [MA], American Express [AXP], and Discover [DFS]), lost momentum, growing 8% year-on-year (YOY), compared to a 10% YOY gain for the year ago quarter. The erosion in spending is further evidence of a slowing economy. The Major 4 reported $1039 billion…