Credit Card Loan Loss

Credit Card Loan Loss Reserves Jump as Economic Clouds Gather

Card loan loss reserves rose sharply among the nation’s largest issuers, however, charge-offs among the Big 6 domestic credit card issuers held steady in the second-quarter. Credit card charge-offs among the nation’s Big 6 credit card issuers rose 18 basis points (bps) year-on-year (YOY) for the second-quarter (2Q/19).  The Big 6 (Chase [JPM], Capital One…

Consumer Debt Ratios

Consumer Debt Ratios Hit 40+ Yr Low as Bears Awaken

Consumer debit ratios for the second-quarter plummeted to levels not seen in more than 40 years. The Financial Obligations Ration (FOR) dropped 53 basis points (bps) over the past two years, while the Debt Service Ratio (DSR) has declined 27 bps since the second-quarter of 2017, based on figures released by the Federal Reserve. The…

Visa Mastercard Payment Cards

Visa Mastercard Payment Cards Chalk Up 8% YOY Gain 4.35% CAGR

Visa Mastercard payment cards (credit, charge, debit, and prepaid) cards-in-force (CIF) in the U.S., for the second-quarter (2Q/19) posted an increase of 8.3% year-on-year (YOY), compared to a 6.7% YOY gain in payment cards for the prior quarter (1Q/19). Visa and Mastercard U.S. credit cards increased 5.0% YOY, while CIF for debit cards rose 10.9%…

early stage card delinquency

Early Stage Card Delinquency Tad Down in Q2 for Big 6

Early stage card delinquency in the second-quarter (2Q/19) declined 13 basis points (bps) from the prior quarter, but rising 13 bps from one-year ago. But the average 30+ day delinquency rate among the Big 6 U.S. issuers has been riding above 2.0% level for four consecutive quarters. The average U.S. 30+ day delinquency rate among…

X-Border Transaction Volume

MC X-Border Transaction Volume FX Grows 2X Visa

X-border transaction volume growth FX (currency adjusted) YOY (year-on-year) is driven solely by Mastercard. Second-quarter global cross-border transaction volume for Mastercard soared by 800 bps (basis points) over Visa. Cross-border transaction (X-Border) volume refers to payments and cash volume where the issuing country is different from the merchant country. X-Border Transaction Volume FX Visa’s cross-border…

Global Processed Transactions

Global Processed Transactions Up 14.3% YOY & 15.83% CAGR

Global processed transactions (GTX), or switched transactions, in the second-quarter (2Q/19), for Visa and Mastercard combined, remains solidly in double-digits year-on-year (YOY), hovering above a 12% annual growth rate for six consecutive quarters. MasterCard posted more than a 600 bps (basis points) spread over Visa in 2Q/19 for global processed switched transactions. Combined Visa and…

U.S. GDV Marketshare

U.S. GDV Marketshare Gains All Flow to Mastercard by 50 bps

Second-quarter GDV (gross dollar volume) marketshare, including credit, debit, charge and prepaid card products, among the Major 4 payment networks shows Mastercard picking up 50 basis points (bps) over the past twelve months, mostly at the expense of Visa, in the U.S. market. Based on gross dollar volume, Visa’s U.S. marketshare peaked one-year ago at…

Payment Network Profts

Second-Quarter Payment Network Profits Rise Nearly 24%

Second-quarter payment network profits among the global U.S.-based Major 4: Visa [V], Mastercard [MA], American Express [AXP] and Discover [DFS], soared 23.8% year-on-year (YOY), and now growing at an 12.80% CAGR (compound annual growth rate), based on the past five years. The Major 4 reported a combined second-quarter (2Q/19) (after tax) profit of $7663 million,…

90+ Card Delinquency

Second-Quarter 90+ Card Delinquency Hits 5+ Year High

Second-quarter 90+ card delinquency climbed to its highest level in more than five years for a second-quarter, jumping 25 bps (basis points), signaling higher charge-offs in the near-term and possibly well into 2023. After hitting a seven-year record of 1.29% for the past two quarters, the late-stage delinquency rate seasonally nudged down by 11 bps…