ADS 1Q/03

Dallas-based Alliance Data Systems reported that first quarter revenue was up 14% to $240.2 million and that net income increased 173% to $12.3 million. Transaction Services revenue increased 8% in 1Q/03 to $143.1 million. Marketing Services revenue increased 9% in the quarter to $59.7 million. Credit Services revenue grew 33% in the first quarter to $109.2 million. ADS says private label credit card sales, its utility services business, and its “AIR MILES” reward program were main drivers of revenues. ADS re-affirmed its previous guidance of 2003 revenue of approximately $970 million. For complete details on ADS’ first quarter performance visit CardData ([www.carddata.com][1]).

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

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Paymentech Canada

Paymentech Canada has acquired Citibank Canada’s MasterCard merchant portfolio consisting of 15,000 merchants. The acquisition follows Paymentech Canada’s purchase of Scotiabank’s VISA portfolio in October. Therefore, Paymentech Canada now offers merchants access to a consolidated VISA and MasterCard payment solution. The Citibank deal does not include merchants with “Global Citi” relationships. Last year’s Scotiabank deal encompassed debit/credit card payment services and smart card programs offered to merchants in 95,000 locations across Canada.

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CITI CARDS

Citigroup reported yesterday that credit card outstandings for the EMEA
region was up 38% for the first quarter, while card loans in Latin America
fell by 50%. At the end of 1Q/03, Citigroup had 13.9 million credit card
accounts outside of North America, a 9% increase over 1Q/02. Charge volume
for international credit cards was up 16%, to $8.6 billion for the first
quarter. Total outstandings for international cards was $11.5 billion as of
March 31st. In Japan, credit card loans were flat at $1.0 billion. In the
rest of Asia, credit card loans grew 13% to $6.2 billion. Citigroup holds
$4.0 billion in card loans for the EMEA region and $400 million in Latin
America. Delinquency and charge-offs declined during the first quarter for
international cards. Delinquency (90+ days) declined from 2.00% to 1.97%.
Charge-offs dropped from 4.46% for 1Q/02 to 4.09% for 1Q/03.

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Fleet 1Q/03

FleetBoston reported yesterday that credit card outstandings dipped below $15 billion in the first quarter, a 2.5% decline over the first quarter of 2002. Since the first of this year Fleet’s outstandings have decline nearly $1.4 billion due to portfolio sales, lower balance transfers, a decline in cash advances, and other normal seasonal factors. Delinquency and charge-offs climbed in the first quarter mainly due to the denominator effect. For the first quarter, the delinquency rate was 4.37% compared to 3.97% one year ago. Delinquency at the end of the fourth quarter was 4.12%. Charge-offs for the first quarter hit 6.13% compared 5.42% one year ago. Charge-offs for the fourth quarter were 5.16%. Fleet also reported that first quarter credit card revenues declined 9% to $156 million. For complete details on FleetBoston’s first quarter results visit CardData ([www.carddata.com][1]).

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

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ABSA FUELMASTER

ABSA Bank has joined OTI’s “FuelMaster Express” program for private motorists. The deal
gives BP and Exel access to a customer base of over 400,000 motorists. Customers issued the “FuelMaster Express” key fobs will be able to use it at BP and Exel stations on an interoperable basis. OTI’s fuel management system, branded by BP as “FuelMaster,” monitors and expedites the fueling and payment process for fleets. “FuelMaster Express,” which was originally launched in conjunction with Standard Bank, is aimed at private motorists, enabling them to pay for gasoline at the pump.

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MOBILE RECHARGE

Citibank Indonesia has launched the Euronet “Mobile Recharge” service with payment connections for the four major mobile operators. Consumers are able to replenish prepaid airtime directly to their prepaid mobile phone through Satelindo, Telkomsel and Excelcomindo. IM3 is expected to launch by June. Satelindo has 2.4 million customers; Telkomsel has 5.0 million customers; Excelcomindo has 1.6 million customers; and, IM3 has 400,000 customers. By selecting Euronet’s “Mobile Recharge” service, Citibank has enabled approximately 1.4 million active cardholders to perform recharge transactions from their mobile phones.

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Bank One 1Q/03

Bank One this morning reported that its Card Services unit produced net income of $248 million for the first quarter, a 4% gain over 1Q/02. The nation’s third largest bank credit card issuer says that margin compression associated with continued competitive pricing necessary to retain and attract customers contributed to the softer growth in profits. First quarter outstandings were $72.8 billion, a 12% gain over the year-ago quarter. Charge volume was up 13% to $38.3 billion. Net charge-offs, as a percentage of average managed loans, declined to 5.29% for 1Q/03 from 5.69% for 1Q/02. The 30-day delinquency ratio was 4.08%, compared to 4.27% in the prior year. During the first quarter, Bank One opened 1,037,000 new accounts, ending the quarter with 50,978,000 cards-in-force. Paymentech reported an increase in total revenue of 13% to $134 million, resulting from a 23% increase in bank card volume and a 30% increase in total transactions, driven primarily by the purchase of the Scotia Bank merchant acquirer business. For complete details on Bank One’s first quarter results visit CardData ([www.carddata.com][1]).

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

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JCB & BANGKOK BANK

JCB International Bangkok Bank Public Company have signed a licensing
agreement for merchant acquiring and
servicing, including sales processing. With this agreement the bank’s
approximately 50,000 new merchants will begin phased
acceptance of the JCB credit card. Bangkok Bank has a 40% share of the
credit card market in Thailand. JCBI entered into a merchant servicing
agreement with the Siam Commercial Bank Public Co., Ltd. in 1989 and
issuing of JCB cards by the same company began in 1990. AEON Thana Sinsap
began issuing operations under license in 2000.

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