Consumer Payment Card News

Gravy Train

The profit wagon is running full steam as the nation’s “Big 3” credit card issuers racked up a stunning 27% gain in profits during the first three months of this year. Collectively, Citigroup, MBNA, and Bank One raked in more than $1.6 billion in card profits for the first quarter. Citigroup lead the pack with a 35% gain and $832 million in card profits, which includes some accounts outside the USA, but inside North America. MBNA reported a 21% jump in global profits or $520 million. Bank One’s card profits jumped 29% to $319 million for the first quarter. Over the past twelve months, the three largest issuers have generated nearly $7 billion in credit card profits. The “Big 3” credit card issuers control about 36% of the U.S. market.

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|_2. Big 3 Profit Track Record |
|_. 1Q/03:| $1.32 billion |
|_. 2Q/03:| $1.48 billion |
|_. 3Q/03:| $1.76 billion |
|_. 4Q/03:| $2.07 billion |
|_. 1Q/04:| $1.67 billion |
|_2. Source: CardData (www.carddata.com) |

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