Providian 1Q/03

Providian reported 1Q/03 net income of $4.7 million, compared to net income of $10.0 million in the first quarter of 2002. The issuer added approximately 600,000 new accounts in the first quarter, ending the quarter with approximately 11.7 million accounts. Managed loans for the first quarter were $18.47 billion, compared to $19.63 billion one year ago. Providian says the decline in managed loans was due to net credit losses and a seasonal increase in payments. Charge-offs for 1Q/03 were 17.61%, compared to 17.34% in the previous quarter, and 15.05% one year ago. Providian’s 30+ day delinquency rate at the end of the first quarter was 10.31%, compared to 11.11% at the end of the fourth quarter, and 10.22% at the end of 1Q/02. For complete details on Providian’s 1Q/03 performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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AmEx 1Q/03

American Express TRS reported first quarter profits of $584 million, a 25% increase over 1Q/02. The new “Green” and “Gold” rewards cards, and the “Cash Rebate Card,” introduced last year continued to drive U.S. portfolio expansion, adding 300,000 net new cards during the first three months of this year. AmEx’s U.S. gross dollar volume increased 10.5%, and credit card loans increased by more than 8% during the first quarter. Credit quality held steady during the first quarter as delinquency (30+ days) and charge-offs remained unchanged from the fourth quarter. Delinquency and charge-offs were both significantly down over year-ago levels. AmEx’s net interest yield increased 40 basis points over 4Q/02 and 20 basis points over 1Q/02. AmEx says total expenses increased 3% for 1Q/03. Marketing and promotion expenses rose 8% from year-ago levels, reflecting the continued expansion of card-acquisition programs. For complete details on AmEx’s fourth quarter performance as well as prior quarters visit CardData ([www.carddata.com][1]).

American Express U.S. Card Portfolio Snapshot
1Q/03 4Q/02 3Q/02 2Q/02 1Q/02 Ann Chng
Volume $58.9b 62.9b 58.2b 58.7b 54.3b +8.5%
Loans $34.6b 34.3b 32.2b 31.6b 31.3b +10.5%
Cards 35.4m 35.1m 34.8m 34.8m 34.8m +1.7%
Delinq* 3.1% 3.1% 3.2% 3.1% 3.4% -8.8%
Losses 5.5% 5.5% 5.6% 6.2% 6.5% -15.4%
Yield** 9.4% 9.8% 9.7% 9.8% 9.6% -2.1%
* 30+ days past due; ** net interest yield
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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eBay/PayPal 1Q/03

eBay reported this week that its Payments segment had net transaction revenues of $93.2 million for 1Q/03, driven by PayPal total payment volume of $2.63 billion, an 80% year-over-year increase over the 1Q/02 total payment volume of $1.46 billion. Including net revenues from third party advertising, total payments net revenues totaled $95.2 million. In the first quarter, 67% of total payment volume came from eBay and other online trading sites, up from 66% in the previous quarter. PayPal’s transaction losses represented approximately 0.34% of PayPal’s total payment volume. eBay says it continues to expect that its Billpoint operations, which contributed $1 million in net revenues in the first quarter, will be completely phased out during the second quarter. For complete details on eBay’s 1Q/03 performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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VISA & RUGBY

VISA International has signed four top rugby players to act as its
“Ambassadors” to rugby fans worldwide to complement its global sponsorship
of “Rugby World Cup 2003.” Zinzan Brooke, John Eales, Gavin Hastings, and
Francois Pienaar, now retired from active play, will be featured separately
and together in a number of promotional programs. As spokespersons for
VISA, they will be visible in a number of VISA merchant and cardholder
promotions that will provide up to 10,000 tickets to consumers to win
worldwide when VISA cards are used.

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Fleet MasterCard

TN-based Comdata has inked a final contract with U.S. Fleet Services to provide customer account management services for its 1,400 mobile and on-site fueling customers. U.S. Fleet Services is the largest provider of fleet fuel outsourcing services in the United States. The agreement includes the issuance of a Comdata’s co-branded “Comdata MasterCard Corporate Fleet Card.” Under the Comdata program, information from each fueling transaction is gathered, compiled electronically, and posted online through iConnectData.com. Comdata is a wholly owned subsidiary of Minneapolis-based Ceridian Corporation. Comdata is also the exclusive fuel card supplier for FedEx Express since 2001, and has issued more than 50,000 “Comdata MasterCard Corporate Fleet Cards” to its driver workforce. (CF Library 1/9/03)

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STMICROELECTRONICS 1Q/03

Geneva-based STMicroelectronics reported first quarter net revenues of
$1.6 billion, a 19.4% increase over 1Q/02. Gross profit was $566.3 million,
an increase of 25.3% from the 2002 first quarter, but a 14.3% decline from
the $660.6 million reported for the 2002 fourth quarter. In March, STM
announced the acquisition of Proton World International, a smart card
software company that specializes in high-security, payment and
identification smart card systems and has developed an extensive network
throughout the financial services and banking sectors. STM says the
addition of PWI software expertise will fully complement its smart card
chip technology and is in-line with the Company’s long-standing
“System-on-Chip” approach.

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Cap One INTL

[![][1]][2] Capital One posted its first profit for its international credit card accounts portfolio during the first quarter, according to this week’s issue of The RAM Report. The issuer posted 1Q/03 net income of $18.1 million, compared to a $6.2 million loss in the fourth quarter, and an $8.5 million loss one year ago. Since the first quarter of 2002, Capital One’s international portfolio outstandings have grown 27.3%, from $4.2 billion to $5.4 billion. Charge-offs for the first quarter of this year was 4.28%, compared to 3.92% in the fourth quarter, and 3.58% one year ago. International delinquency for the first quarter of this year was 4.22%, compared to 4.18% in the fourth quarter, and 4.08% one year ago. Capital One noted that its UK operations became profitable for the first time last year. At the end of 2002, the U.K. Bank had 2.8 million accounts and $3.9 billion in credit card, revolving loan, and installment loan assets.The UK Bank has been operating independently in France since 2000. Besides the UK, the issuer also has operations and activities in Canada, South Africa and France. ([www.ramreport.com][3])

[1]: /logos/ram/ramreport_.jpg
[2]: http://www.ramreport.com
[3]: http://www.ramreport.com

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NO-FREE SCOTIAGOLD

Scotiabank has launched the “No-Fee ScotiaGold VISA” card. The
card carries an interest rate of 18.50%, a $5,000 minimum credit line, and
does not offer a rewards program. In addition to the new card, Scotiabank
currently offers the “Scotiabank Classic VISA”; “No-Fee Scotiabank Classic
VISA”; “Scotiabank Value VISA”; “Scotiabank Value VISA”; “No-Fee Scotiabank
Value VISA”; “No-Fee Scotiabank Value VISA”; “ScotiaGold Preferred VISA”;
and, “ScotiaLine VISA.”

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MBNA INTL

[![][1]][2] MBNA’s international foreign loans, mostly credit cards, increased 45% in the first quarter to $15.8 billion, according to this week’s The RAM Report. The issuer, which has significant operations in the Canada, UK and Spain, also reported that it opened 620,000 new foreign accounts in the first quarter, compared to 450,000 in 1Q/02. In the first three months of 2003, MBNA signed 41 new foreign affinity credit card deals including National Geographic in the UK, Bell Globemedia (Canada), and Banco Cooperativo Espanol (Spain). In Europe, MBNA reported total managed loans of $13.1 billion, an increase of 47% over the same period one year ago. In Spain, MBNA Espana signed a total of 20 affinity contracts since marketing started in the fourth quarter and now employs 150 people. In Canada, MBNA’s total managed loans reached $2.7 billion, a 35% increase over 1Q/02. During the first quarter, MBNA added 15 affinity deals and 190,000 new accounts in Canada. ([www.ramreport.com][3])

[1]: /logos/ram/ramreport_.jpg
[2]: http://www.ramreport.com
[3]: http://www.ramreport.com

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