Chase 3Q/02

Chase has surpassed the $50 billion mark in outstandings as nearly 900,000 new accounts were added during the third quarter. Since 3Q/01 the Chase card portfolio has grown 31% primarily due to its acquisition of Providian receivables. On a managed basis, the credit card net charge-off ratio was 5.51%, compared to 6.42% for the second quarter and 5.64% for the third quarter of 2001. The improvement from the second quarter reflects lower bankruptcies and higher balances. During the quarter, Chase boosted loss reserves by $189 million to comply with new FFIEC draft guidelines. Chase ended the quarter with $51.1 billion in outstandings compared with $49.5 billion in the previous quarter, and $38.9 billion in the year ago quarter. Third quarter volume was $23.0 billion, a 28% gain over 3Q/01. Total accounts now stand at 28.6 million compared to 23.4 million on year ago. During the third quarter, Chase signed up 900,000 new accounts but closed 400,000 accounts. For complete details on Chase’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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USTT & ZiLOG

USA Technologies and ZiLOG have combined resources to co-market and co-develop a joint product that will integrate the “e-Port” wireless transaction processing and monitoring capabilities with ZiLOG’s Internet ready “eZ80” microprocessor. Both companies are also developing reference designs and development kits that will be available for manufacturers to easily incorporate network ready devices into their own appliances. These appliances will be able to utilize various networks, including USA Technologies’ network, for transaction processing and monitoring of these appliances.

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Household 3Q/02

Household reported U.S. bank card receivables of $15,828,360,000 for the third quarter, up 4.9% from one year. U.S. VISA/MasterCard volume for 3Q/02 was $9.3 billion, compared to $9.0 billion in the previous quarter, and $8.6 billion one year ago. Active accounts stood at 10,943,000 compared to 10,224,000 for 2Q/02. Managed private label outstandings rose 12.7% to $13,643,000,000. VISA and MasterCard charge-offs for the third quarter were 6.81%, compared to 7.54% in 2Q/02, and 6.75% one year ago. Private label losses were 6.12% compared to 5.13% for 3Q/01. Delinquency (60+ days) came in at 4.14% at the end of thrid quarter versus 3.90% in the previous quarter. For complete details on Household’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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EGG SECURITIZATION

Egg Banking PLC is placing its VISA card receivables and, potentially,
MasterCard receivables on accounts its owns as collateral for new
securitization. Standard & Poor’s Ratings Services said that it assigned
its preliminary credit ratings to the sterling- and euro-denominated
asset-backed floating-rate notes to be issued by Pillar Funding Series
2002-1 Plc. Egg was launched in 1996 as a banking subsidiary of Prudential
PLC, the U.K.-based financial services group. Egg is primarily focused on
providing Internet-based financial services to its customers. Egg offers
deposit accounts, credit cards, personal loans, and mortgages via the
Internet and by telephone.

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METRIS 3Q/02

The sub-prime fallout continues to takes its toll on Metris Companies/Direct Merchants Bank. The issuer reported a net loss for the third quarter of $1.3 million, however, the loss is well below its second quarter loss of $36.4 million. The managed credit card loan portfolio now stands at $11.6 billion, a decrease of $118 million during the quarter. During the third quarter, Metris sold $47 million of its subsidiary Direct Merchants Bank’s receivables. These accounts were revoked and 2-cycle plus delinquent as of August 31. In the third quarter, Metris added more than 170,000 new credit card accounts, resulting in 3.6 million active accounts at September 30, 2002. Managed credit card fees, interchange and other credit card income decreased 12% to $146.1 million for the third quarter of 2002 from $165.7 million in the third quarter of 2001. Credit card charge volume decreased 17% to $2.2 billion in the third quarter of 2002, compared to $2.6 billion in the third quarter of 2001. For the first nine months of 2002, credit card charge volume was $6.4 billion, a 10 percent decrease from the same period in 2001. The managed net charge-off rate was 15.1% for the third quarter of 2002, compared to 15.0% for the prior quarter and 10.7% for the third quarter of 2001. The managed delinquency rate was 10.8% for the third quarter, compared to 10.2% at June 30th, and 8.9% one year ago. For complete details on Metris’ third quarter performance visit CardData ([www.carddata.com][1]).

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

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SVS & AMC

TN-based Stored Value Systems identified itself yesterday as the supplier of the new “AMC Entertainment Card.” Stored Value Systems Inc., a wholly-owned subsidiary of Comdata Corporation, announced the launch of the AMC Entertainment Card; an electronic cash card to be used as replacements for the theatre chain’s paper gift certificates. AMC becomes the first major motion picture theatre operator to nationally adopt a cash card component as a paperless alternative to traditional gift certificates. AMC operates 242 theatres with 3,500 screens. The debut of the AMC Entertainment Card coincides with the start of the busiest season for gift certificate sales. About half of all gift certificate sales occur between October and late December. Movie gift certificates also are highly popular for graduations, birthdays, and Father’s Day and Mother’s Day.

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ADS 3Q/02

Alliance Data Systems reported third quarter revenue increased over 8% to $218.7 million compared to $201.7 million for 3Q/01. Transaction Services revenue, accounting for approximately half of the Company’s total revenue, increased 2%, to $133.9 million. Credit Services revenue, approximately one-quarter of the Company’s total revenue, increased 20% to $84.8 million. Total private label credit sales increased 23%, driving fee income and portfolio growth. Marketing Services revenue increased 15% to $61.5 million. “AIR MILES Reward Miles” issued and redeemed continued to register strong growth during the quarter as a result of the increasing number of new program members, new sponsors and deeper relationships with existing sponsors. ADS raised its guidance for the full year of 2002 to about $870 million. For complete details on ADS’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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SANCHEZ BEACHHEAD

Sanchez Computer Associates announced the opening of its new European
headquarters in Amsterdam. Europe accounts for more than a quarter of
Sanchez’s annual revenue. Sanchez is a leader in developing and marketing
scalable and integrated software and services that provide banking,
customer integration, brokerage, wealth management and outsourcing
solutions to nearly 400 financial institutions in 21 countries. Sanchez’s
customers include Lloyds TSB, ING Group, Goldman Sachs, HSBC, CSFB, Merrill
Lynch, Morgan Stanley, Scotiabank and Sumitomo Mitsui Banking Corp., among
others. Sanchez corporate headquarters is located in Malvern, Pa., USA.

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FDC OPS

First Data Corporation has formed First Data (China) Co., Ltd. The
new operations, administrative office, and data center will be based in
Shanghai. The wholly owned Chinese subsidiary will be fully operational in
the first quarter of 2003. First Data will offer a full range of card and
merchant processing services, in addition to its “VisionPLUS” software, to
card issuing and merchant acquiring companies in China. In China, FDC holds
relationships with several leading financial institutions to provide money
transfer services through its Western Union subsidiary. In addition, the
Industrial & Commercial Bank of China and the Agricultural Bank of China
recently chose to use the “VisionPLUS” transaction processing software
offered by First Data.

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NPC 3Q/02

National Processing reported net income for the third quarter of $12.7 million, down 16% over 3Q/01. Third quarter revenues were $114.5 million, down 6% from 3Q/01. Merchant Card Services transaction volume for the third quarter was 974 million, a 9% increase. Total dollar volume processed was $41.9 billion, a 6% gain. Merchant Card Services revenue was $109.7 million, up 4% from one year ago. NPC says it is now estimating full year revenue to be in the $440 million to $450 million range. For complete details on NPC’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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