Daily Archives: 07/16/2009

Chase Card Posts $672MM Loss; Charge-Offs Top 10%

Chase’s Card Services unit posted a net loss of $672 million in the
second quarter as charge-offs topped 10%. However, 30+ day delinquency,
the precursor of future charge-offs, eased during the quarter dipping
below the 6% level. Within the WaMu portfolio, charge-offs hit 19.17%,
compared to 14.57% in the first quarter and 12.09% at year-end 2008.
End-of-period managed loans were $171.5 billion, an increase of 10% from
the prior year, but down 3% from the prior quarter. Charge volume was
$82.8 billion, a decrease of 12% from the prior year. Excluding
Washington Mutual, charge volume was
$78.3 billion, a decrease of 16%. The managed net charge-off rate for
the quarter was 10.03%, up from 4.98% in the prior year and 7.72% in the
prior quarter. The 30-day managed delinquency rate was 5.86%, up from
3.46% in the prior year and down from 6.16% in the prior quarter.
Excluding Washington Mutual, the managed net charge-off rate
for the second quarter was 8.97% and the 30-day delinquency rate was
5.27%. Merchant processing volume was $101.4 billion, on 4.5 billion
total transactions processed. Chase also noted that ROE was negative
18%, down from positive 7% in the prior year and that ROO was negative
2.46%, compared with positive 1.04% in the prior year and negative 1.92%
in the prior quarter. For complete details on Chase’s second quarter
performance visit CardData (www.carddata.com).