World’s largest credit card issuer
Revenues from card services account for 30% of Citigroup’s (C) total revenues. It is the world’s largest credit card issuer. It has ~140 million accounts generating $370 billion in spend and over $21 billion in revenue annually.
The group has ~$144 billion in card loans. It offers both Citi-branded and co-branded cards. Citi-branded cards account for nearly 80% of credit and charge volume, and co-branded retail partner cards account for the rest. Citi-branded cards are available in 34 countries.
Other card sharks
Based on purchase volumes, the biggest players in the card market are American Express (AXP) and JP Morgan (JPM). American Express and JP Morgan together make up ~9.7% of the Financial Select Sector SPDR ETF (XLF).
The graph above shows the largest credit card issuers in the world based on credit and charge volume. Bank of America and Capital One follow Citigroup in terms of credit and charge volume.
Visa (V) and MasterCard (MA) are the other two biggest players in the card market. Having said that, these two are different from other card issuers because they don’t actually issue any cards. They just offer payment networks to process transactions between the card issuer and the merchant.
Citi retail services
Citi retail services provides credit card products, both Citi branded and co-branded, to retailers and their clients across North America. As well, it provides retail industry expertise and insights to retailers. This includes transaction data analytics and integrated marketing and loyalty programs. The business services 90 million accounts for leading brands including ExxonMobil, The Home Depot, Macy’s, Sears, and Shell.
What are the various types of cards that Citigroup offers? You’ll learn all about it in the next part of our series.