JPMorgan Chase & Co. today reported net income of $250 million for its card-services unit, calculated on a managed basis, for second quarter ended June 30, down 67% from $759 million for the same period last year. Chase attributes most of the decrease in income to a 65% increase in its provision for credit card receivables losses, to $2.19 billion from $1.33 billion a year ago. Net revenue from card services, which includes both card-issuance and transaction-acquiring activities, was $3.8 billion for the second quarter, down nearly 3% from $3.7 billion. Noninterest expenses were virtually unchanged at $1.19 billion. Chase reported 157.6 million credit cards in circulation at the end of June, up 4% from 150.9 million a year earlier. Charge volume on Chase cards totaled $93.6 billion, up 6% from $88 billion. Average managed receivables during the quarter was $152.8 billion, up 4% from $147.4 billion last year. Net charge-offs of receivables were $1.89 billion, up 42% from $1.33 billion. Chase's merchant-acquiring business logged 5.6 billion bankcard transactions during the quarter, up 17% from 4.8 billion the same time last year. Sales from those transactions totaled $199.3 billion, up 11% from $179.7 billion last year.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry