Providian reported $19.0 billion in managed credit card loans for fourth quarter 99, a stunning 58% increase over 4Q/98. Providian also reported Thursday that revenues from membership services nearly tripled last year from $238.5 million to $674.9 million. Overall fourth quarter net income totalled $159.4 million, an increase of 68%, over $94.9 million, for the fourth quarter of 1998. During 4Q/99, Providian added 1.1 million net new accounts bringing total customer accounts to 12.4 million. For the full year, the sub-prime specialist added 4.5 million net new accounts, a 57% gain over the 7.9 million total accounts at year-end 1998. The managed net credit loss rate increased to 6.78% in the fourth quarter, compared to 6.40% in the third quarter of 1999, and was better than expected. For the full year, the managed net credit loss rate was 6.94%, compared to 7.58% for 1998. The 30+ day managed delinquency rate was 5.66% at year-end 1999, compared to 5.20% at the end of the third quarter of 1999 and 5.33% at year-end 1998. For complete current and historical stats on Providian’s credit card portfolio, visit CardData ([www.carddata.com]).
PROVIDIAN’S RAPID RISE
98-4 99-1 99-2 99-3 99-4
CARD LOANS: $12.1b $13.1b $14.8b $16.6b $19.0b
TOTAL ACCTS: 7.9m 9.0m 10.1m 11.3m 12.4m
Source: Providian 4Q/99 Earnings Report