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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Household 1Q/03

Household, now a part of HSBC, reported this morning that its VISA/MasterCard receivables increased by 7.0% and that charge volume grew by 4.6% in the first quarter. Householdalso increased its active accounts by 134,000 during the quarter. At the end of the first quarter Household had $16,195,385,000 in credit card loans compared with $17.0 billion at year-end 2002, and $15.1 billion one year ago. Charge volume for 1Q/03 was $8,443,767,000 compared with $10.1 billion in 4Q/02 and $8.1 billion for 1Q/02. Household end the first quarter with 11,758,000 active accounts compared with 9,800,000 one year ago. For complete details on Household’s first quarter performance visit CardData ([www.carddata.com][1])

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

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STORELINE POS

Sainsbury’s has deployed Retalix’s “StoreLine POS” in more than 300 of its 485 stores across the UK. In addition, Sainsbury’s has installed “Storeline Fuel” in over 100 of its 230 fuel sites. Retalix, Accenture, and NCR have been working with Sainsbury’s in a front of store replacement program known as repos. Retalix “StoreLine” is the only grocery POS system with integrated fuel site functionality. Retalix Ltd has installations in more than 20,000 stores and quick service restaurants across 44 countries. J Sainsbury plc, one of the UK’s largest retailers, operates a supermarket chain and bank in the UK and a supermarket chain in the USA.

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Chase 1Q/03

J.P. Morgan Chase reported this morning that its credit card outstandings inched up 3% in the first quarter to $50.6 billion, but down from $51.1 billion in the fourth quarter. However, charge-offs and delinquency also inched up, by 5 bps and 1 bp, respectively. On a managed basis, the credit card net charge-off ratio was 5.87% for the first quarter of 2003, compared to 5.75% for the fourth quarter, and 5.82% for the first quarter of 2002. On a managed basis, the credit card delinquency rate (30+ days) was 4.59% for the first quarter, compared to 4.67% for the fourth quarter, and 4.58% for the first quarter of 2002. Charge volume was up 10% to $20.7 billion. Chase’s account base increased by 600,000 accounts in the first quarter to end at 29.8 million. Since 1Q/02, the number of credit card accounts have grown by 8%. Active accounts were flat at 16.5 million. For complete details on Chase’s first quarter performance visit CardData ([www.carddata.com][1]).

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

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Metris 1Q/03

Metris Companies/Direct Merchants Credit Card Bank reported a net loss for the first quarter $25.0 million, representing a significant improvement over its fourth quarter net loss of $48.5 million, and its 2Q/02 loss of $36.4 million. The sub-prime specialist also continued to push down card balances, ending the quarter with managed credit card loans of $10.7 billion, a decline of approximately $745 million since the end of last year. The managed net charge-off rate for the first quarter was 17.9%, compared to 18.2% for the fourth quarter, and 13.0% for 1Q/02. The managed delinquency rate was 11.5% for the first quarter, compared to 11.1% in the fourth quarter, and 9.8% one year ago. Metris ended the first quarter with 3.2 million active accounts. Last month, Metris indicated it intends to shrink the size of its credit card portfolio by $2.1 billion this year. The sub-prime issuer says it hopes to achieve the target through lower credit card account acquisitions, attrition in the portfolio, and third party sales. For complete details on Metris’ first quarter performance visit CardData ([www.carddata.com][1]).

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

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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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