U.S. bank credit card profits for the top U.S. Visa and MasterCard (V/M) issuers declined 3.5% year-on-year (Y/Y) and 5.4% quarter-on-quarter (Q/Q) in the first quarter (Q1). According to CardData, Q1 revenue dropped 12.1% Y/Y and 8.9% Q/Q.
Chase, Capital One and Bank of America reported total net revenue of $8,096 million in Q1/14, compared to $8,888 million in the prior quarter and $9,214 million in the year ago quarter. The three major issuers produced net income of $2,113 million in the first quarter, compared to $2,189 million in first quarter of last year and $2,004 million in the final quarter of 2013.
Chase net income revenue declined 5.1% Y/Y and 5.1% Q/Q, according to CardData. Net income decreased 14.5% Y/Y, but increased 2.7% Q/Q. Chase card services business reported Q1 total net revenue of $3.7 billion, compared to $3.9 billion in Q4 and $3.9 billion in Q1/2013. Net income dropped from $1.1 billion in Q1/2013 and $927 million in Q4/2013 to $952 million in Q1/2014.
Capital One net income revenue declined 9.8% Y/Y and 3.0% Q/Q, according to CardData. Net income decreased 7.6% Y/Y, but increased sharply by 30.0% Q/Q. Capital One’s domestic card business reported Q1 total net revenue of $3.0 billion, compared to $3.1 billion in Q4 and $3.3 billion in Q1/2013. Net income declined from $644 million in Q1/2013 to $595 million in Q1/2014, but net income increased from $455 million in the prior quarter.
Citibank net income revenue was flat Y/Y and up 2.4% Q/Q, according to CardData. Net income increased 31.0% Y/Y, but decreased 9.0% Q/Q. Citibank North America’s Citi-branded cards business reported steady total net revenue of $2.0 billion in Q1/2013, Q4/2013 and Q1/2014. Net income increased from $432 million in the year-ago quarter to $566 million in Q1/2014. However, income from continuing operations decreased from $622 in the final quarter of last year.
Bank of America reported non-interest income of $1393 million in the first quarter, compared to $1503 million in the prior quarter and $1419 million in the year ago quarter.
CREDIT CARD NET REVENUE
JPM COF CITI
Q1/2013: 3908 3280 2026
Q2/2013: 3857 3273 1978
Q3/2013: 3818 3241 2087
Q4/2013: 3860 3050 1978
Q1/2014: 3713 2957 2026
CREDIT CARD NET INCOME
JPM COF CITI
Q1/2013: 1113 644 432
Q2/2013: 1093 638 440
Q3/2013: 1102 644 648
Q4/2013: 927 455 622
Q1/2014: 952 595 566
Source: Chase; Capital One; Citibank; CardData
Chase data represents the Card Services segment of the Consumer & Community Banking unit.
Capital One data represents the Domestic Card segment of the Credit Card unit.
Citibank data represents the Citi-branded Cards segment of the Global Consumer Banking – North America unit.
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