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rffrydr
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 Posted: Fri Jan 13, 2012 8:49 am Post subject: |
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JPM Q4:
| Quote: | | Fewer consumers fell behind on their credit-card payments in the fourth quarter compared with the same period in 2010. Loans at least 30 days overdue, a signal of future write-offs, fell to 1.13 percent from 1.22 percent. Write-offs dropped to 4.29 percent from 7.85 percent the prior year and 4.7 percent in the previous quarter. |
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rffrydr
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Joined: 30 Oct 2005
Posts: 16440
Location: Sunny California
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| Posted: Wed Nov 02, 2011 8:13 am Post subject: |
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Mastercard back in business:
| Quote: | Purchase volume, the amount spent on debit and credit cards, rose 17 percent worldwide to $628 billion.
In the U.S., spending was up 13 percent to $227 billion. Visa and American Express Co. said most of the increased spending in the U.S. they saw last quarter came from affluent card users, a cause for some concern as it reflects broader weakness for the economy.
MasterCard has far fewer debit cards in use than Visa, but its revenue from those cards is growing faster. Mastercard said U.S. purchases with its debit cards rose 23 percent to $97 billion. Its rival's growth in debit purchase volume was just 8 percent last quarter, a point noted by Wall Street. |
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rffrydr
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| Posted: Tue Sep 20, 2011 10:58 am Post subject: |
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Waiting for the Consumer to Act
By Sham Gad | Sep 20, 2011 | 10:33 AM EDT
| Quote: | A WSJ article this morning reported that Citigroup mailed an estimated 346 million credit card offers to US households in the third quarter, more than one offer per every individual in the country. Citigroup is apparently tyring to grow in a space where the company sees little competition. After the financial crisis exploded in 2008, credit card offers in the mail all but vanished. According to Citi, its aggressive push in offering more credit is a direct result of an improving credit card portfolio: in the 2011 second quarter Citi's North American card business earned $584 million versus a $154 loss a year ago.
Citi is also responding to signs of a vastly improving US consumer - US household debt has declined in each of past 12 consecutive quarters. In addition when new debit card fees hit consumers in October, Citi is hoping many will make the switch to credit. In any regard, Citi's confidence in issuing credit to consumers is a very good sign for the economy going forward. Now all we need is for the consumer to act. And unfortunately, that may not happen until consumers gain a little more confidence in the economy, job market, etc. |
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rffrydr
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| Posted: Fri Aug 12, 2011 8:37 am Post subject: |
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With sale of HSBC's US card exposure subprime chuggin' right along:
| Quote: | | Capital One, whose shares rose slightly in a terrible market, gains high-yielding assets at a good price. Conversely, a $2.4bn gain may not seem the best deal for HSBC: it will dilute earnings slightly in the short term. But stimulating an auction for a subprime card business in a heavily-consolidated industry was never going to be easy. At almost twice tangible book value, the price compares well with multiples of between 1.1 and 1.4 times paid, respectively, by Toronto-Dominion Bank for a similar Chrysler Financial book in April, and by GM in 2010 for an AmeriCredit portfolio. And the 8.75 per cent premium to receivables is not too shabby. The sale will add about 60 basis points to HSBC’s core tier one capital ratio of 10.8 per cent. |
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rffrydr
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HenryTo
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Joined: 06 Aug 2004
Posts: 11257
Location: Los Angeles, California
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| Posted: Wed Aug 03, 2011 12:08 pm Post subject: |
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Morningstar on MA's latest earnings:
| Quote: | | MasterCard MA reported net income of $608 million, or $4.76 per diluted share, 33% higher than last year and above our estimates. Despite the paltry recovery in the United States and the economic challenges overseas, MasterCard continues to benefit from the secular trend toward electronic payments. Net revenue for the quarter was $1.7 billion, up 22.1% from the prior-year quarter as total purchase volume jumped 16.3% on strong volume growth in Asia and Latin America. Growth in spending on debit cards in the U.S. accelerated to a commendable 19% as the impact of the loss of several large clients faded in the quarter. Operating expenses continued to trend below our estimates, with a 20% increase from last year on higher marketing and other costs. We expect operating expenses, especially marketing, to increase as competition heats up. MasterCard should continue to benefit from industry tailwinds, but the ongoing crisis in Europe could temper growth overseas. Given the strong results in recent quarters, we intend to raise our fair value estimate by 10%. |
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HenryTo
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| Posted: Thu Jul 28, 2011 2:06 pm Post subject: |
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Morningstar on Visa's fiscal 3Q earnings:
| Quote: | | Visa V earned $1 billion, or $1.43 per diluted share, for its third fiscal quarter, 40% higher than in the prior-year quarter and in line with our expectations. The payment giant continued to benefit from the secular trend of moving toward electronic payment methods, even though economic conditions in many of its markets remain tepid. Total operating revenue of $2.3 billion was up 14.5% from the prior-year quarter while operating expenses were up a mere 9.5%. Marketing expense dropped 9% from last year while compensation expense jumped 27%. We think Visa could benefit from positive operating leverage through 2012, but marketing expense is now at very low levels; once it rebounds, we think the impact on the bottom line will be negative. Strong earnings led to a boatload of free cash flow at the firm's disposal, and we think Visa used it wisely. During the third quarter, Visa repurchased about 13.7 million common shares at an average price of $77 per share, returning $1.1 billion to shareholders. We applaud this move because of the buyback's attractive price, and returning capital to shareholders is warranted when there is no better use for it. However, Visa's share price is approaching fair value, and we think that buying back stock at above fair value dilutes the owners who aren't selling. Hence, if the stock trades significantly above fair value, we would rather see Visa return capital by paying higher dividends. At this point, our fair value estimate is unchanged. |
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rffrydr
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rffrydr
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bradysjuw374
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Joined: 17 Oct 2010
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| Posted: Sun Oct 17, 2010 8:58 am Post subject: thanks |
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Good article.thanks.  |
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rffrydr
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rffrydr
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rffrydr
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| Posted: Sun Aug 01, 2010 10:06 pm Post subject: |
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Smartphones: They're already pullin' on The GOOG's cape. Now the banks:
http://www.bloomberg.com/news/2010-08-02/at-t-verizon-said-to-target-visa-mastercard-with-smartphones.html
Swipe fees have been a very big feather in the Bank's nest:
| Quote: | ....Retailers may be eager to help another network after years of fighting over transaction fees set by Visa and MasterCard. The merchants pressed Congress last month to approve caps on interchange, or “swipe” fees, for debit transactions and filed a 2005 federal antitrust lawsuit that is still pending. The U.S. Department of Justice is weighing whether to bring a civil lawsuit against Visa, the company said last week.
Interchange fees on credit and debit cards exceed $40 billion a year and average about 1 percent to 2 percent of every transaction. |
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rffrydr
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rffrydr
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| Posted: Tue Mar 16, 2010 9:24 am Post subject: Re: Plastic |
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Sad but true...how true indeed.
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