Citigroup reported this morning that profits for its credit card business in North America increased 35% in the first quarter to $832 million, as revenues for the quarter increased 43%. The gain was driven by its recent acquisition of the Sears store and bank card portfolio and the Home Depot portfolio. Credit card outstandings for North America increased 23% over 1Q/03 to $142.3 billion, which includes $28.1 billion in private label card outstandings. Charge volume increased 19%, from $57.1 billion to $67.8 billion. Citi’s account base at the end of first quarter was 125.6 million accounts, a 45% gain over 1Q/03. However, the number of accounts dropped 3.6 million during the quarter. Citi’s charge-offs increased from 6.25% in the fourth quarter to 6.99% for 1Q/04. Charge-offs for bank credit cards was 6.60%, compared to 5.74% one-year ago. Delinquency (90+ days) dropped slightly from 2.18% for 4Q/03 to 2.10% for the first quarter 2004. Delinquency for bank credit cards was flat year-over-year and down 5 basis points from the fourth quarter. For complete details on Citigroup’s 1Q/04 performance visit CardData ([www.carddata.com]).
North American Credit Card Net Revenues
1Q/03: $635 million
2Q/03: $659 million
3Q/03: $819 million
4Q/03: $1017 million
1Q/04: $832 million
Source: CardData (www.carddata.com)