This excerpt taken from the C 8-K filed Jan 15, 2008.
· Revenues grew 59%, primarily driven by higher purchase sales and average loans, up 37% and 53%, respectively, and a $448 million pre-tax gain on Visa, Inc shares. Excluding the gain, revenues increased 32%. Loan balances grew at a double-digit pace in all regions. Results include the impact of recent acquisitions.
· Expenses increased 31% driven by increased business volumes and the impact of recent acquisitions.
· Credit costs increased 9% as a decline in net credit losses was offset by an increase in loan loss reserves. Net credit losses declined as higher losses in Mexico and portfolio growth were offset by the impact of recent acquisitions. A charge of $149 million pre-tax to increase loan loss reserves primarily reflected portfolio growth.
· Net income more than doubled, driven by strong volume growth and the gain on Visa, Inc. shares. Excluding the Visa gain, net income increased 68%.
This excerpt taken from the C 10-Q filed May 5, 2006.
International Cards provides MasterCard-, Visa- and Diners-branded credit and charge cards, as well as private label cards and co-branded cards, to more than 26 million customer accounts in 43 countries outside of the U.S. and Canada. Revenues are primarily generated from net interest revenue on receivables, interchange fees on purchase sales and other delinquency or service fees.
NM Not meaningful
1Q06 vs. 1Q05
Revenues, net of interest expense, increased, driven by an 8% increase in purchase sales and 14% growth in average receivables across the regions.
Operating expenses increased, reflecting continued investment in organic growth, costs associated with a labor settlement in Korea, the adoption of SFAS 123(R) of $9 million, and volume growth across the region. This was partially offset by the absence of 2005 first quarter repositioning expenses of $13 million.
Provision for loan losses reflected higher loan loss reserves of $99 million, driven by the industry-wide credit deterioration in Taiwan and an increase in net credit losses in Mexico, reflecting portfolio growth and target market expansion.
Net Income also reflected a $20 million tax benefit resulting from the resolution of the Federal Tax Audit.
This excerpt taken from the C 8-K filed Apr 15, 2005.
Revenue and income growth reflects a 31% increase in accounts and 23% growth in average managed loans. Results include the impact of KorAm, as well as strong organic growth in Australia, Hong Kong, and Brazil.
International consumer credit trends continued to improve as the NCL rate declined 77 basis points to 3.08%.
Net credit margin increased 17%.