“We had over 50 renewals and 35 new partnerships in 2018 alone and brought on our largest program ever in PayPal. Our momentum is driven by the capabilities we bring to the table, including being at the forefront of digital and mobile tools as well as our investment in next generation data analytics.”
—Brian Doubles, EVP and Chief Financial Officer
|For the years ended, and at, December 31
(in millions unless otherwise stated except for per share data and ratios)
|Net interest income||$16,118||$15,016|
|Interest and fees on loans||$17,644||$16,219|
|Diluted earnings per share||$3.74||$2.42|
|Common equity Tier 1 capital ratio||14.0%||15.8%|
|Purchase volume (in billions)2||$140.7||$131.8|
|Active accounts (in thousands)3||80,339||74,541|
|Average active accounts (in thousands)3||73,847||69,968|
|Net interest margin4||15.97%||16.35%|
|Net charge-off ratio5||5.63%||5.37%|
|30+ delinquency rate6||4.76%||4.67%|
|Return on assets8||2.8%||2.1%|
1Diluted weighted average shares outstanding.
2Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period. Purchase volume includes activity related to our portfolios classified as held for sale.
3Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.
4Net interest margin represents net interest income divided by average interest-earning assets.
5Net charge-off ratio represents net charge-offs as a percentage of average loan receivables.
6Based on customer statement-end balances extrapolated to the respective period-end date.
7Efficiency ratio represents (i) other expense, divided by (ii) net interest income, after retailer share arrangements, plus other income.
8Return on assets represents net earnings as a percentage of average total assets.