U.S. Credit Card Offer Mailings Rose 13% in July - Credit Suisse (V) (AXP) (MC)

August 22, 2016 7:47 AM EDT
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Credit Suisse is out with commentary on U.S. credit card mailings for the month of July, noting a slight uptick versus the same period last year.

The firm offered the following key points:

  • Card issuers mailed 346 million credit card offers to consumers in July, down 9% from June but up 13% from the year ago period. Among the top issuers, Citi was the highest at 69 million offers in July, down 14% m/m and up 8% y/y, followed by Chase and Capital One. We believe that competitiveness remains high, and will continue to ramp up in 2H16, as the major issuers seek to grow accounts.
  • 0% purchase teasers were present in 236 million offers or 68% of card offers. 0% balance transfer teasers were present in 237 million credit card offers or 68% of the total industry mailings. The average balance transfer offer duration was 14.1 months in July, compared to 14.6 months in June and 14.0 months in the year ago period.
  • Visa card offers had the highest network share of solicitations at 41% of offers, up 1 pp from June and up 6 pp from a year ago period. MA-branded offers at 34% of offers were up 2 pps m/m and down 3 pp from a year ago. AXP and DFS offers were 13% and 11%, respectively.
  • Mail volume has been an important measure of the competitive landscape. Mail volume remains an important barometer of competitiveness, as well as which brands are the most heavily marketed. We expect to see the card issuers marketing aggressively through 2016.

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