The nation’s three largest issuers reaped nearly $1.5 billion in profits for the three months of April, May, and June of this year. Add in profits from the largest issuer of charge cards and business cards, and the figure handily tops $2 billion for the second quarter. The nation’s largest issuer of bank credit cards, Citibank, reported profits of $659.0 million, which includes some credit cards outside the USA. Citibank’s second quarter card profits were 9% over the same period one year ago. MBNA, the second largest U.S. issuer of bank credit cards, reported $543.3 million in second quarter profits, a 20% increase over last year. The third largest U.S. issuer of bank credit cards, Bank One, posted $279.0 million in profits, a 2% decline over the second quarter of last year. American Express, the king of charge cards, corporate cards, and with $36 billion in U.S. credit card loans, reported second quarter profits of $634.0 million from its card operations. Based on the second quarter information, the U.S. credit card business is poised to produce more than $12 billion in profits this year.
SECOND QUARTER 2003 ISSUER PROFITS LOANS Citibank $659.0 Million $113.3 Billion American Express $634.0 Million $36.0 Billion MBNA $543.3 Million $110.5 Billion Capital One $286.8 Million $60.7 Billion Bank One $279.0 Million $73.0 Billion Citibank includes some accounts in North America, but outside USA American Express includes international operations MBNA includes foreign card accounts and personal loans Capital One includes foreign card accounts, auto loans, and personal loans Source: CardData (www.carddata.com)