Chase reported record purchase dollar volume (PDV) in the fourth quarter of $123.6 billion, up 9.8% year-on-year (Y/Y). The number of active credit card accounts also ticked up to 34.0 million, a 5% increase over end-of-year (EOY) 2013.
Outstandings rose 2.3%, delinquency declined 23 basis points (bps) and charge-offs decreased 17 bps Y/Y in Q4/14.
Despite the strong performance metrics, net income for the Chase card business declined 7.8% in Q4/14 to $879 million, compared to $979 million in the prior quarter, and $953 million in the year ago quarter.
Chase noted its Consumer & Community Banking unit’s provision for credit losses was $950 million, compared with $72 million in the prior year.
Fourth quarter card services net revenue as a percentage of average loans was 11.47%, compared with 12.47% in the prior year and 12.17% in the prior quarter.
Q4/14 bank credit card PDV increased 9.8% Y/Y to $123.6 billion, compared to $119.5 billion in the prior quarter and $112.6 billion in the year ago quarter.
Chase bank credit card End-of-Period (EOP) outstandings inched up by 2.3% Y/Y to $131.0 billion.
Delinquency (30+ day) declined 22 bps in Q4/14 to 2.14% compared to Q4/13. However, bank credit card delinquency was up 3 bps higher than the prior quarter. Delinquency 30-89 days declined 23 bps Y/Y to 1.44%, but delinquency 90+ days edged up by one bps to 0.70% in the quarter.
Charge-offs of 2.69% were down 17 bps Y/Y, but up 17 bps from Q3/14.
At the end of the fourth quarter Chase had 64.6 million open accounts with 34.1 million posting sales activity, down 1.0% and up 5%, respectively. Chase notes it opened 2.4 million new accounts in the quarter, on par with Q4/13.
Chase notes that 62% of the new accounts were acquired online, compared to 59% one-year ago.
RAM Research projects Chase PDV to remain strong in the first quarter and will likely come in at $115 billion.
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