JPMorgan Chase & Co. on Oct. 13 reported third quarter increases in both net income and sales volume for its Card Services unit, aided by continued reductions in charge-offs and delinquencies and by a rise in consumer card use.
The card unit’s net profit for the quarter ended Sept. 30 totaled $735 million; it reported a $700 million loss during the same period last year. Net revenue totaled $4.3 billion, down 17.3% from $5.2 billion, primarily attributable to lower outstandings and fewer balance transfers, Doug Braunstein, Chase’s chief financial officer, told analysts during a conference call to discuss earnings.
Legislative changes and lower credit card fees also affected the company’s net revenue, according to Chase.
Credit card sales volume during the quarter totaled $79.6 billion, up 6.6% from 74.7 billion a year earlier. During the quarter, consumers opened 2.7 million credit and debit card accounts, up 12.5% from 2.4 million during the same period last year.
Merchant-processing sales volume totaled $117 billion, up 12.5% from $104 billion. Merchant transactions processed totaled 5.2 billion, up 15.6% from 4.5 billion a year earlier.
The net charge-off rate for the quarter was 8.87%, down from 10.3% during the same period last year and down from 10.2% during this year’s second quarter (
Chase said its provision from credit losses dropped 68%, to $1.6 billion from $5 billion a year earlier.
The 30-day delinquency rate was 4.57% of managed receivables, down from 5.99% a year earlier and down from 4.96% in the second quarter, according to Chase.
As a company, Chase reported third-quarter net income of $4.4 billion, up 22.2% from $3.6 billion a year earlier. Net revenue totaled $24.3 billion, down 15.3% from $28.7 billion.
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