Citigroup reported this morning that third quarter profits for its credit card business in North America topped $1 billion, soaring 25% sequentially, and 31% year-over-year, to a record $1067 million. Credit card outstandings for North America increased 24% over 3Q/03 to $146.0 billion, which includes $28.8 billion in private label card outstandings. Charge volume increased 24%, from $62.3 billion to $77.3 billion, year-on-year. Citi’s account base at the end of third quarter was 120.2 million accounts, a 33% gain over 3Q/03, but a decline of 900,000 accounts from the previous quarter. Citi’s charge-offs dropped from 6.61% in the second quarter, to 5.66% for 3Q/04. Charge-offs for bank credit cards declined to 5.34%, compared to 6.15% in the second quarter, and 5.75% one-year ago. Charge-offs for private label credit cards also declined, from 8.61% in the second quarter to 7.08% for 3Q/04. However, charge-offs for private label cards remain above year ago levels. Delinquency (90+ days) declined slightly from 1.85% for 2Q/04 to 1.84% for the third quarter 2004. Delinquency for bank credit cards dropped 3 basis points, and increased 9 basis points for private label cards, quarter-to-quarter. For complete details on Citigroup’s 3Q/04 performance visit CardData ([www.carddata.com]).
North American Credit Card Net Revenues
3Q/03: $815 million
4Q/03: $1010 million
1Q/04: $832 million
2Q/04: $850 million
3Q/04: $1067 million
Source: CardData (www.carddata.com)