Visa, MasterCard Report Surge In Q1 Earnings
SAN FRANCISCO-Cards giants Visa and MasterCard reported strong surges in earnings last week. Visa reported a 30% jump in fiscal first quarter earnings to $1.29 billion, fueled by a big boost in consumer spending. Q1 revenue rose 15% to $2.6 billion.
The greater card usage is good news for CUs, which earn interchange revenue every time members use their Visa card, and because Visa and MasterCard are the only two common stocks CUs may own. Visa said U.S. cardholders charged 12% more on their Visa cards for the quarter. Debit card use grew by only 4%, however, the slowest growth in a year.
MasterCard reported a 25% surge in first quarter earnings, with net income of $682 million.
Credit Write-Offs Show
50% Decline In March Data
ATLANTA, Ga.-Credit write-offs for March were 50% lower than in March 2009, (excluding home finance write-offs), according to data released as part of Equifax's March National Consumer Credit Trends Report. The report stated that new credit is at its highest point since 2008, and home finance delinquencies are at a three-year low. Consumer credit is also improving, said Equfax, noting that at the end of Q1 consumer debt totaled $10.9 trillion, down more than 11% from its $12.4 trillion peak in October 2008.
NCUA Seeking Comment As
It Reviews Rules, Regs
ALEXANDRIA, Va.-NCUA is calling for comment as part of its annual review of one-third of regulations as part of a mandated effort to identify any rule or provision that it deems "outmoded, ineffective, insufficient, or excessively burdensome." Among the regs under review are rules governing bylaws, FOM, fixed-asset ownership, mergers, and corporate CUs and more.
For info: www.ncua.gov.
Filene Seeking i3 Applicants
MADISON, Wis.--The Filene Research Institute is now accepting applications for 17 spotsin its i3 program, which seeks to develop new products, services and other innovations at CUs. The nominations are for a two-year term and require completion of a 100-question behavioral/entrepreneurial assessment.
For details: www.filene.org.
CO-OP, Diebold Pilot 2-Way Video
RANCHO CUCAMONGA, Calif.-CO-OP Financial Services announced it had entered into a pilot with Diebold to provide two-way video member service on CO-OP's network using Diebold ATMs. CO-OP said the program will also facilitate additional call center services, with the member able to connect to a MSR for real-time, "face-to face" interaction via two-way video.
Texas CUs Cautioned On ALL
AUSTIN, Texas-The Texas CU Department last week warned the CUs it regulates about understating loan loss reserves (ALL), telling state charters an intentional understatement could qualify as an effort to falsify records. "The Department continues to see instances where a credit union's Allowance for Loan and Lease Losses is materially understated based on management's own internal analysis of the loan loss exposure," said the state supervisor in its monthly report.
De Dios Named Coopera CEO
DES MOINES, Iowa-Coopera Consulting has named Miriam De Dios as its new CEO. De Dios has been with Coopera since its inception and most recently served as VP, and will fill the position previously held by founder Warren Morrow, who died in February. Coopera Consulting provides services in Hispanic outreach and is a unit of the Iowa CU League.
Rewards Points Being Doubled
PENSACOLA, Fla.-The $1.2-billion Pen Air FCU said it is doubling all points earned on its Premier Relationship Rewards for the month of May as part of its celebration of Military Appreciation Month.
Two Companies Have Strong Q1
BROOKFIELD, Wis.-In another sign of the lifting cloud over financial institutions, Fiserv last week reported an 18% surge in first quarter earnings to $132 million. Meanwhile, Jack Henry & Associates, Monett, Mo., said Q3 net income rose 11% to $36.7 million.
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