Credit Card Account Acquisitions Driven by Sub-Prime with Low Credit Limits

The number of new credit card accounts (those opened in the previous 24 months) rose to 88.1 million, driven in part by a 16% increase in new subprime accounts. Even with this increase, subprime accounts continue to comprise roughly one-fifth of total open accounts — equivalent to 2012 levels. According to the American Bankers Association’s…

Costco Card Drives Citi PDV Higher and Profits Lower in Q1

Citibank North America branded credit card purchase dollar volume (PDV) continued to soar in the first quarter (1Q/17), however net income dropped sharply, both driven by the 2016 Costco acquisition, according to CardData. North America Citi-branded card revenue increased 12.7% YOY to $2096 million for 1Q/17, compared to $2213 million in the prior quarter and $1860…

Sapphire Reserve Card Acquisition Costs Still Dog Chase in Q1

Chase, the nation’s largest bank credit card issuer, continued to post double-digit year-on-year (YOY) growth in purchase dollar volume (PDV) in the first quarter (1Q/17) while YOY growth in outstandings (OUT) remained in the mid-single digits. Card income remained depressed in the quarter due to higher new account origination costs and provisions to offset rising…

Belarus’ Sberbank to Give China’s UnionPay Card Boost on Silk Road Economic Belt

China’s UnionPay has inked a deal with BPS-Sberbank of the Republic of Belarus. Under terms of the agreement, the two parties will cooperate in improving UnionPay’s acceptance network in Belarus, promoting local card issuance, and rolling out UnionPay’s innovative products and services, and thus jointly enhance UnionPay’s service capacity in markets along the Belt and…

Global Payment Cards (V+MA+AXP+DFS) Tops 5 Billion Up 6% YOY

Global payment cards-in force (CIF) [credit + debit] grew by 19.2% year-on-year (YOY) in the fourth quarter (4Q/16) to 4995 million. However, the figure for 4Q/16 includes 554 million for Visa Europe. (Visa added Visa Europe data as of 3Q/16.) Therefore, discounting Europe, the growth in global CIF was 6.0% YOY, adjusted, according to CardData.…

Despite Brexit Brits Pile On Credit Card Debt in Early 2017

U.K. consumer credit took a sharp turn north in February, despite the Brexit uncertainty, rising to its highest annual growth rate of the past twelve months. The year-on-year (YOY) rise jumped 260 basis points (bps) 20 in February. In February total consumer credit grew to £196.0 billion. The three-month annualized and twelve-month growth rates, seasonally…