"I would like the credit card revenue figures and number of cards,
broken out for US or North America and international, for YE 2001
for
MBNA, AMEX, Discover, Chase, Bank of America, Capital One, First
USA,
Citibank."
Answer:
I have most of the data you requested. There are some holes.
1) Very few companies report, even to the SEC, how much of their
credit-card revenue is generated internationally. Only Citigroup,
American Express, and MBNA provided usable data, and only Citigroup
breaks down international revenue. I could find extrapolations from
brokerage houses, but most would be little better than guesses, and
the data would be copyrighted in any case.
2) As I mentioned in an earlier comment, it can be difficult to
establish revenue for financial-services companies, as they report in
terms like interest income, net interest income, and noninterest
income. Fortunately, most of the companies you describe use some
revenue measure, which I’ll identify. The closest comparison to
revenue for financials is probably net interest income, and when
revenue is not available, that’s what I’ll use. I’ll also include
credit-card specific items on the income statement.
3) MBNA, J.P. Morgan Chase and Bank of America do not release the
exact number of credit cards they issue. I’m trying to find a
public-domain source for that data, and will post it when I find it.
Hopefully later today.
Citigroup (Citibank and Diners Club cards)
399 Park Ave.
New York, NY 10043
Phone: 212-559-1000
2001 Credit Card Revenue: $15.6 billion
% of Credit Card Revenue from North America: 83%
% of Credit Card Revenue from Outside North America: 17%
No. of Credit Card Accounts: 93 million
Sources for data:
http://www.citigroup.com/citigroup/press/020117a.htm
http://www.citigroup.com/citigroup/fin/data/qer014s.pdf
Standard & Poor’s Stock Reports, available at most libraries
Bank of America
Bank of America Corporate Ctr.
100 North Tryon St., 18th Fl.
Charlotte, NC 28255
Phone: 800-299-2265
2001 Credit Card Revenue: $4.3 billion*
No. of Credit Card Accounts: More than 20 million
* $600 million of that revenue comes from debit cards
Source for data:
http://media.corporate-ir.net/media_files/NYS/bac/reports/4q01factbook2.pdf
American Express
World Financial Center, 200 Vesey St.
New York, NY 10285
Phone: 212-640-2000
2001 Credit Card Revenue: $12.5 billion*
No. of Credit Card Accounts: 55.2 million
No. of Cards in North America: 34.6 million
No. of Cards Outside of North America: 20.6 million
* American Express’s credit card business is part of its broader
Travel Services unit. The revenue figure I provided excludes $1.5
billion in travel commissions and fees, $394 million in travelers
check investment income, and $3.6 billion in other revenue. Amex’s
credit card operations certainly contribute to the travel commissions
and the other revenue, but the $12.5 billion is more of a pure number,
probably more comparable with those reported by most other companies.
Sources for data:
http://home3.americanexpress.com/corp/corpinfo/pdfs/4Q01fin.pdf
Standard & Poor’s Stock Reports
10-K filing – Go to http://ir.americanexpress.com/ireye/ir_site.zhtml?ticker=AXP&script=1901&layout=7
and follow the link for SEC Filings. When you see the list of filings,
look for 10-K405 and click on that link. The document is huge, and if
you want to find the data, your best bet is to copy the text to a Word
document, then search for “34.6.”
J.P. Morgan Chase (Chase credit cards)
270 Park Ave.
New York, NY 10017
Phone: 212-270-6000
2001 Credit Card Revenue: $2.1 billion
No. of Credit Card Accounts: XXXXX
Source for data:
http://www.jpmorganchase.com/cm/BlobServer?blobtable=Document&blobcol=urlblob&blobkey=name&blobheader=application/pdf&blobwhere=jpmc/ir/financial/earnings/2001-4q/supp.pdf
Capital One Financial
2980 Fairview Park Drive, Suite 1300
Falls Church, VA 22042
Phone: 703-205-1000
2001 Credit Card Revenue: $7.7 billion*
No. of Credit Card Accounts: 43 million
* Capital One does not break out its interest and noninterest income
to detail what comes from credit cards. But while the company is
expanding into automobile finance and international operation, it is
still basically a pure-play U.S. credit card issuer. According to the
company’s annual report, “Substantially all of the Company’s managed
assets, revenue and income are derived from the consumer lending
segment.” The consumer lending segment “is comprised primarily of
credit card lending activities in the United States.”
Sources for data:
http://www.capitalone.com/about/invest/annual_reports/2001/data/2001financial_pres.pdf
http://www.capitalone.com/about/invest/annual_reports/2001/data/to_our_shareholders.pdf
Bank One Corp. (First USA cards)
1 Bank One Plaza
Chicago, Illinois 60670
Phone: 312-732-4000
2001 Credit Card Revenue: $7.2billion
No. of Credit Card Accounts: 55.6 million
Sources for data:
http://www.bankone.com/answers/BolAnswersSeg.aspx?top=all&segment=IVR
http://www.shareholder.com/one/news/ONE0116a2.pdf
MBNA
1100 N. King St.
C/O MBNA America Bank NA
Wilmington, DE 19884
Phone: 800-362-6255
2001 Credit Card Revenue: $7.9 billion*
% of Credit Card Loan Portfolio in U.S.: 78%
% of Credit Care Loan Portfolio Outside U.S.: 22%
No. of Credit Card Accounts: 27 million active borrowers
* MBNA goes out of its way not to separate its credit-card and
consumer-loan businesses in terms of revenue or income. The company
does reveal that 56% of its loan portfolio consists of credit card
loans and credit cards represent 90% of loans held for securitization.
By making a few assumptions, we can estimate credit card revenue. If
we assume that credit cards generate roughly 56% of MBNA’s net
interest income and 90% of securitization income, plus all credit card
fees, we come up with the number recorded above.
Sources for data:
http://www.prnewswire.com/cgi-bin/micro_stories.pl?ACCT=542850&TICK=MBNA&STORY=/www/story/01-10-2002/0001645683&EDATE=Jan+10,+2002
http://www.mbna.com/pdf_files/2001annual.pdf
Morgan Stanley (Discover cards)
1585 Broadway
New York, NY 10036
Phone: (212) 761-4000
2001 Credit Card Revenue: $3.6 billion*
No. of Credit Card Accounts: 45.7 million*
* Revenue and account data are from Nov. 30, 2001, because that’s when
Morgan Stanley’s fiscal year ends.
Source for data:
http://www.morganstanley.com/about/ir/shareholder/4q2001.pdf
In 1999, the 10 largest credit card issuers were, in this order:
Citibank
Bank One (First USA)
MBNA
Morgan Stanley (Discover)
Chase Manhattan (Now part of J.P. Morgan Chase)
American Express
Bank of America
Providian Financial
Capital One Financial
FleetBoston Financial
Other general sources:
Federal Reserve abstract
( http://www.chicagofed.org/publications/publicpolicystudies/emergingpayments/pdf/eps-2001-2.pdf
) |
