Boosted by a massive reduction in loan-loss reserves, Bank of America Corp.’s global cards unit produced second-quarter net income of $2 billion, up 142% from $826 million a year earlier, the company announced July 19.
Total revenue for the quarter ended June 30 fell 20.3%, to $5.5 billion from $6.9 billion, as net interest income declined 18.2%, to $3.6 billion from $4.4 billion.
The unit’s provision for credit losses plunged to $481 million from $3.8 billion because of improved economic conditions. The net charge-off rate on credit card loans fell 512 basis points, to 7.09% from 12.21%. The delinquency rate on accounts at least 30 days past due fell 158 basis points, to 4.19% from 5.77%.
Global credit card purchase volume rose 4.3%, to $56.2 million from $53.9 million.
U.S. debit card purchase volume rose 8.5%, to $64 million from $59 million.
