Key themes

• Receivables and spend increased year-over-year for all banks
• American Express, Discover and Capital One led in terms of year-over-year receivables growth
• Chase and Capital One led in terms of year-over-year purchase volume growth, although all issuers reported strong growth
• Several banks have suggested that competitive intensity has moderated slightly
• Although loss rates are normalizing, they remain below historical averages
• Investments are being made in machine learning, mobile and advanced analytics

Notable happenings

Transactions
PayPal announces an agreement to sell its $5.8 billion portfolio of US consumer credit receivables to Synchrony

Partnership renewals
Marriott signs renewal agreements with Chase and American Express

New partnerships
Uber and Barclays introduce a new no-fee credit card; Alliance Data gains new partners IKEA and Adorama

New products/features
Hilton and American Express introduce a new high-end fee card, Aspire; Amazon opens its cashier-free store Amazon Go to the public; Chase introduces mobile payments as a bonus category on Freedom cards

Mobile & tech
Target introduces a proprietary wallet in its mobile app; Kroger and Chase Pay partner on mobile payments

Industry trends (based on non-retail card issuers in scorecard section)

1 Total receivables for non-retail issuers at end of 4Q17. 2 Total purchase volume of non-retail issuers in 4Q17. 3 After-Tax ROA excludes Wells Fargo, Chase, Bank of America and US Bank, which do not report credit specific income. 4 YoY = Year-over-year change versus 4Q16. 5 QoQ = Quarter-over-quarter change versus 3Q17. Note: PV is reported PV for the quarter (it is not annualized or TTM)

Issuer scorecard—Q4 2017 ($ in billions)

1 Chase no longer discloses an ROA measure directly attributable to Card Services. 2 Citi: Purchase volume includes cash advances. 3 Capital One: US card business, small business, installment loans only. Purchase volume excludes cash advances. 4 Bank of America: Receivables, purchase volume and net loss rates are for US consumer cards. ROA estimate is discontinued. 5 Discover: includes US domestic receivables and purchase volumes only. Restated: ROA reflective of Direct Banking segment (credit card represents ~80% of loans) and implied US Cards tax rate of ~40%. ROA denominator estimated from total loans ended totals. 6 American Express: Changed reporting method as of 1Q16. Figures are for US Consumer segment only and exclude small business. 7 US Bank: Net Income attributable to Payments Services totaled $309M as of 4Q17, compared to $322M in 4Q16; Payments Services includes revenue from consumer credit cards, as well as commercial revenue and other sources. 8 A/R and PV for Retail Card unit only. 9 Loss rates and ROA include all of SYF’s business lines (i.e., Retail Card, Payment Solutions, and CareCredit). Retail Card accounts for about 70% of total receivables. 10 Average Receivables.