While the Chase credit card portfolio has consistently posted robust purchase dollar volume (PDV), outstandings declined between 2009 and 2013, with a compound annual growth rate (CAGR) of -1.24%, according to CardData. However, Chase turned the corner last year with a 2.5% year-on-year (YOY) gain.
Chase end-of-year (EOY) 2014 outstandings were $131.0 billion, compared to $127.8 billion for EOY 2013 and $137.7 billion for EOY 2010.
Chase reported record PDV in the fourth quarter of $123.6 billion, up 9.8% YOY. The number of active credit card accounts also ticked up to 34.0 million, a 5% increase over EOY 2013.
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% YOY to $123.6 billion, compared to $119.5 billion in the prior quarter and $112.6 billion in the year ago quarter.
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 YOY 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 YOY, 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.
Chase EOP Credit Card Outstandings
2010: $137.7 billion
2011: $132.3 billion
2012: $128.0 billion
2013: $127.8 billion
2014: $131.0 billion
RAM Research projects Chase 2015 outstandings will remain sluggish for 2015 and will likely come in at $132.5 billion at EOY.
For more data on Chase’s Bank Credit Card Portfolio access CardData®. For information and commentary on Chase’s Bank Credit Card Portfolio visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. Custom RAM Research® forecasts on Chase’s Bank Credit Card Portfolio are available exclusively through CardWeb.com.®
Average credit card loans included loans held-for-sale of $976 million, $335 million, $405 million, $315 million and $311 million for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, and $509 million and $95 million for full year 2014 and 2013, respectively. These amounts are excluded when calculating the net charge-off rate.
Period-end credit card loans included loans held-for-sale of $3.0 billion, $395 million, $508 million, $304 million and $326 million at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, respectively. These amounts are excluded when calculating delinquency rates and the allowance for loan losses to period-end loans.