JPMorgan Chase & Co. this morning reported second-quarter net income of $343 million for its Card Services unit; the unit experienced a $672 million net loss during the same period ended June 30 last year. Net revenue totaled $4.21 billion, down 13.6% from $4.87 billion.
The net charge-off rate was 10.2%, up from 10.03% during the same period last year and down from 11.75% during this year’s first quarter.
The provision from credit losses dropped 51.7%, to $2.22 billion from $4.6 billion, reflecting reduced charge-offs and lower estimated losses, Chase said.
The 30-day delinquency rate was 4.96%, down from 5.86% a year earlier and down from 5.62% in the first quarter. Excluding the Washington Mutual Inc. portfolio, the net charge-off rate was 9.02%, up from 8.97% a year earlier and down from 10.54% in the first quarter; the 30-day delinquency rate was 4.48%, down from 5.7% a year earlier and from 4.99% in the first quarter, according to Chase.
During the quarter, 2.7 million new accounts were opened. Sales volume totaled $78.1 billion, up 5.5% from $74 billion. Excluding Washington Mutual’s portfolio, sales volume totaled $75.4 billion, up 8% from $69.8 billion, Chase said. Merchant-processing volume totaled $117.1 billion on 5 billion transactions processed.
As a company, Chase reported second-quarter net income of $4.8 billion, up 77.8% from $2.7 billion a year earlier. Net revenue totaled $25.6 billion, down 7.6% from $27.7 billion.