Q1 2022a US credit-card issuer snapshot

Credit card

Key themes

  • Receivables growth continues its momentum with issuers reporting single- and double-digit YoY growth.
  • As cardholder spending recovers from the pandemic lows, purchase volume continues to grow (27%+ YoY growth).
  • AmEx reported a strong increase of 38% in spend and 22% in receivables, which was due to a rebound of travel spending.
  • Net Charge-Offs remain at historic low levels due to cardholder payment behavior. However, there was a slight rise in QoQ, which is normal due to seasonality.
  • Credit losses are expected to increase in the coming year, but this is dependent on many factors, such as inflation and recession concerns. )
  • Although issuer returns are still favorable, they have started to decline YoY due to slower reserve releases and higher OpEx cost.

Notable Happenings

New partnerships

Capital One announced a cobrand credit card partnership (transitioning form Bread Financial); Goldman Sachs launched their new cobranded credit card; Bread financial launched a pilot sales finance private-label credit-card pilot in partnership with Harley Davidson; Wells Fargo launched a new cobrand card with Bilt; Chase launched its co-branded card alongside Instacart; FNBO launched a PLCC partnership with BP; was previously with SYF.

Partnership developments

Chase renewed its partnership with Amazon; Bread Financial renewed their private-label credit-card partnership with Victoria’s Secret; Bank of America renewed their co-brand partnership; Citi renewed its PLCC, and co-brand partner with Brooks Brothers; Synchrony renewed many relationships including PLCC partnerships and with Generac and Guitar Center; Capital One renewed the PLCC partnership and with Kohl’s

New products/features

Synchrony has announced a refreshed PayPal co-branded credit cards with an enhanced value proposition. Bread Financial launched a general-purpose credit cards (with AXP).

Mobile & tech

SYF launches ability to pay for electric vehicle charging using Synchrony Car Care credit card; Zip announces the purchase of Sezzle for $360MM

Issuer scorecard ($billions),-Q1 2022

1 Capital One offers installment loans and credit cards for small businesses and consumers in the United States. Purchase volume excludes cash advances. American Express has changed its reporting system as of 2Q18. All figures are for the US Consumer segment (revolving, charge products), which no longer reports net income. Purchase volume (excludes cash advances) and losses are US domestic cards only; ROA covers all of Digital Banking segment (credit cards represent 80% of Digital Banking loan loans). ROA numbers reflect all Barclays Bank. Net Loss Rates are calculated by dividing annualized Credit Card Credit Losses by quarterly Average Credit Card loans. Barclays does no publicly report credit card purchase volume. Primarily because of FV of derivatives loss accounting for 1.8% of the ROA. All SYF business lines are included (i.e. Home & Auto and Digital, Diversified & Valuable, Health & Wellness, Lifestyle and Other). Credit card accounts account for approximately 95% of total receivables. 7 Bread changed its reporting in Q4 2020 to not report Card Services segment profitability. The ROA shown above reflects one “Continuing Operations” segment (majority credit card income) following divestiture by LoyaltyOne. Previous quarters have been adjusted accordingly.


Year-over year growth rate trends


Profitability trends-ROA proxy

After Tax ROA is a weighted mean of – Capital One (Synchrony), Discover, Bread Financial and Barclays.