Fourth quarter profits from Target’s credit card operations increased nearly 42% to $150 million, compared to one year ago. Target, now the nation’s 18th largest issuer of bank credit cards, reported Thursday that outstandings for its “smart VISA” program have topped $3.7 billion, a 140% increase over 4Q/01. Over the same period, Target’s “Guest Card” store credit card program outstandings declined from $1,063,000,000 to $827,000,000, a 22% drop. Target also announced yesterday it will disclose more details on its card program going forward. For 4Q/02, which ended 2/1/03, Target’s net charge-off rate for its VISA program was 7.3%, compared to 6.9% in the prior quarter. Net write-offs for its store credit card program were 8.4% for 4Q/02, compared to 7.9% in 3Q/02. The 90-day+ delinquency rate for “smart VISA” was 3.1% and for its “Guest Card” program the figure was 5.1%. For complete details on Target’s bank credit card performance visit CardData ([www.carddata.com]).
TARGET SMART VISA SNAPSHOT
4Q/01 1Q/02 2Q/02 3Q/02 4Q/02
Outstandings $1.6b $2.0b $2.5b $3.2b $3.8b
Cards-in-Force 3.0m 6.0m 7.1m 8.0m 8.9m
Source: CardData (www.carddata.com)