IMGCAP(1)]
Acknowledging higher credit card loan defaults, U.S. Bancorp today announced it generated $267 million in credit and debit card revenue during the third quarter ended Sept. 30, down 0.7% from $269 million during the same period last year. Corporate payment-products revenue rose 1.1%, to $181 million from $179 million. Revenue from merchant-processing services was flat at $300 million. ATM-processing services revenue rose 9.6%, to $103 million from $94 million. The credit card charge-off rate on receivables was 6.99%, up 214 basis points from 4.85% a year earlier. The company held $15.4 billion in average credit card loans at the end of the quarter, up 26.2% from $12.2 billion a year earlier. The company noted in a press release that, during the quarter, it extended $1.8 billion in new credit card accounts, excluding credit card portfolio purchases. Debit card sales volume during the quarter totaled $9.46 billion during the quarter, up 5.8% from $8.94 billion a year ago. On the acquiring side, merchant volume totaled $62 billion, down 7.3% from 66.9 billion. Companywide, U.S. Bancorp earned net income of $603 million, up 4.7% from $576 million.
