Gemplus has been awarded Frost & Sullivan’s Market Value Leadership Award for its exceptional performance in the smart card market. Gemplus maintained the lead in unit shipments of smart cards, accounting for a phenomenal 33.6 per cent of the market in 2001. The award recipient turned in an equally convincing performance in revenue terms, claiming a remarkable 27.8 per cent of the overall market.Details
Citigroup reported that its global consumer businesses generated 25% income growth during the second quarter, with strong customer volume growth in cards, retail banking and consumer finance. The cards division which now serves 108 million accounts in 47 countries, increased income by 34% to $744 million on the strength of a 38% increase in North America, which included the card operations of Banamex. CitiCards, the company’s primary brand in North America, experienced receivables growth of 4% to $108 billion. For CitiCards and Diners Club, revenue growth of 16% was driven by margin expansion from lower funding costs and risk-based pricing. Second quarter domestic charge volume was $62.0 billion and international volume was $10.4 billion. Second quarter charge-offs were 6.23% while 90+ day delinquency was 1.84%. The return on managed card assets was 2.43% For more details on Citigroup’s 2Q/02 performance visit CardData ([www.carddata.com]).
Metris Companies/Direct Merchants Credit Card Bank reported a net loss for the second quarter and and said it is not issuing earnings guidance for the remainder of this year. The second quarter loss was $36.4 million. The managed credit card loan portfolio at June 30, was $11.7 billion, a decrease of $81 million during the quarter. In the second quarter, Metris added over 250,000 new credit card accounts, resulting in a total of 4.8 million accounts. Credit card charge volume decreased 14% to $2.2 billion in the second quarter of 2002, compared to $2.5 billion in the second quarter of 2001. For the first six months of 2002, credit card charge volume was $4.3 billion, a 6 percent decrease from the same period in 2001. Managed credit card fees, interchange and other credit card income decreased 19% to $127.0 million for the second quarter from $156.1 million in the second quarter of 2001. The managed net charge-off rate was 15.0% for the second quarter of 2002, compared to 13.0% for the prior quarter and 10.9% for the second quarter of 2001. The managed delinquency rate was 10.2% for 2Q/02, compared to 9.8% at the end of 1Q/02, and 8.3% one year ago. For complete details on Metris’ 2Q/02 performance visit CardData ([www.carddata.com]).
Bibit Global Payment Services and Aqueduct announced a partnership that will allow companies to implement an integrated global online commerce platform that will support international business in countries outside the United States. The two companies will offer this integrated solution to global manufacturers looking to implement online commerce capability on a worldwide basis. Offered as a hosted solution, this capability can be quickly and cost-efficiently implemented to provide companies with a turnkey approach without a large investment in software, hardware, personnel and infrastructure.Details
Capital One reported second quarter card profits of $213.1 million, versus earnings of $155.3 million for the comparable period in the prior year. The companyâs managed consumer loan balances increased by $4.6 billion in the second quarter to $53.2 billion. The managed net charge-off rate increased to 4.36 percent for the second quarter of 2002 compared with 4.00 percent for the first quarter of 2002. The managed delinquency rate (30+ days) decreased to 4.54 percent as of June 30, 2002, compared with 4.80 percent as of March 31, 2002. In the second quarter, Capital One added 2.0 million net new accounts, bringing total accounts to 48.6 million. The companyâs managed revenue margin increased to 16.55 percent in the second quarter of 2002 from 16.47 percent in the first quarter of 2002. Marketing expense for the second quarter of 2002 was $320.4 million, down from $353.5 million in the first quarter of 2002. For complete details on Capital Oneâs 2Q/02 performance visit CardData ([www.carddata.com]).
First Data Corp. announced that its
Western Union Financial Services subsidiary has signed multi-year contracts
with two of Turkey’s leading banks. Both Denizbank and Oyakbank will begin offering the Western Union Money
Transfer service and Western Union QuickPay, Western Union’s
international bill payment service, later this month. More than 100 Denizbank
locations and approximately 190 Oyakbank locations will offer Western Union
services, more than doubling the current number of Western Union agent
locations in the country.
Bank One/First USA reported that credit card outstandings grew by $2.0 billion from the previous quarter and that 1.28 million new accounts were opened, up 28% from a year ago and the highest level in nearly three years. Credit card income for the second quarter was $296 million, up $103 million, or 53%, from the year-ago quarter, reflecting lower net credit losses, lower operating expenses and the addition of the Wachovia portfolio. Operating income improved $57 million, or 24%, from the first quarter due to a gain on the sale of a portfolio, increased securitization activity, lower credit costs and lower operating expenses. Managed loans were $66.8 billion at June 30th, up $3.8 billion, or 6%, from the year-ago period, including the addition of the Wachovia portfolio. Managed loans increased $2.0 billion, or 3%, from March 31, 2002. Total revenue was $2.012 billion for the quarter, up $218 million, or 12%, from one year ago, mostly driven by the addition of the Wachovia portfolio and the consolidation of Paymentech. The managed charge-off rate was 5.62%, compared to 6.09% in the year-ago quarter and 5.69% in the first quarter. The managed 30-day delinquency rate was 3.83%, down from 4.10% in the year-ago quarter and 4.27% in the first quarter. For complete details on Bank One/First USAâs 2Q/02 results, visit CardData ([www.carddata.com]).
Oakwood Worldwide has announced that all of its corporate housing and serviced apartment locations will now accept JCB, the fourth largest credit card in the world. JCB is the largest issuer of cards in Japan, and has over 40 million cardmembers worldwide.
Oakwood is the leading global provider of corporate housing and serviced apartments, with locations throughout the U.S., U.K., Japan, Korea, China, Thailand and the Philippines. The phrase “corporate housing” describes full-sized furnished apartments, a popular lodging option amongst extended stay business and leisure travelers. In many countries, the term “serviced apartments” is used to describe this segment of the lodging industry.Details
ING DIRECT announced it is making it even easier for Americans to save their money by offering easy access to an Orange Home Equity Account featuring no fees and rates as low as 4.75%. Instead of the standard book of checks, customers receive a card that allows for point of sale purchases, with the money coming from their loan. The loan is also linked to a customerâs existing checking account so a customer can simply electronically transfer money from the loan into their checking account in order to write checks to consolidate debt. Customers can get a loan for nearly 90% of the equity in their home, up to $250,000. The Orange Home Equity Account doesnât accrue interest until a customer starts borrowing, which can be done for up to 10 years, with 25 years to pay back the loan (with no penalty for early repayment as well as the flexibility to decide how much is paid each month).Details
TSYS reported net income for the second quarter increased 13.0% to $29.3 million, up from $26.0 million in the same period last year. Revenue for the second quarter was $237.0 million, an increase of 7.3%, compared with revenue of $220.9 million one year ago. Revenue for the second quarter of 2002, excluding the amounts for reimbursable charges, was $177.1 million, an increase of 9.8% compared to one year ago. Consumer and commercial accounts on file grew by 16.4% and 14.4%, respectively, over June 2001. With this growth, TSYS improved its net profit margin before reimbursable items for the first six months to 16.4% from 15.3% a year ago. During the quarter, TSYS expanded its reach in Europe by signing a letter of intent to process about 500,000 card accounts in a three-year pilot program for Barclaycard, one of Europeâs largest consumer credit card issuers. International accounts on file grew by 25.4% over the second quarter last year. For complete details on TSYSâs 2Q/02 results, visit CardData ([www.carddata.com]).
Comdata Corporation announced the launch of the Sears PayCard, a card-based payroll product to be offered as an electronic alternative to paper paychecks for Sears employees nationwide. Sears is the latest national retailer to supplement its direct deposit and paper check payroll programs with the Comchek eCash card, the flagship payroll product from Comdata. Introduced in 1994, the Comchek eCash product enables employees with or without banking relationships to receive payroll and other company-provided funds on their own secure, personal payroll card they can use just like an ATM card for cash at Cirrus ATMs, and for debit purchases wherever MasterCard is accepted. More than 500,000 individuals currently receive payroll and other funds via the Comdata card.Details
Diebold, Incorporated introduced Agilis Power, a new development environment that enables Diebold Professional Services to create vendor- independent custom applications for automated teller machines. Using Agilis Power, Dieboldâs worldwide software and self-service experts can help financial institutions implement customized applications that run across a multi-vendor ATM network. This gives consumers a consistent user experience every time they access their financial institution, while reducing the operating costs associated with running a multi-vendor network. Built on an industry-leading INvolve middleware platform from Nexus, Agilis Power provides an open architecture that takes advantage of industry-standard technology. Dieboldâs dedicated software development resources experienced in large-scale customer applications and specialized solutions use Agilis Power to assist financial institutions in the implementation of a solution customized to their needs. Diebold Professional Servicesâ project managers, technical trainers and systems engineers are also deployed to support development efforts and coordinate these engagements.Details