Payment card profits for the top four U.S networks are poised to rise 11% in the third quarter, despite the fuel price collapse, says CardData and RAM Research. Visa, MasterCard, American Express and Discover reported a combined 2Q/15 profit of $4103 million, compared to $3705 million for 2Q/14.
Visa posted a 24.8% year-on-year (YOY) gain in second quarter net income. Visa reported $1697 million in net income for Q2/15, compared to $1550 million for Q1/15 and $1360 million for Q2/14.
Excluding the $110 million non-cash, non-operating expense recorded upon remeasurement of the Visa Europe put option, Visa’s adjusted net income for the quarter was $1.8 billion, an increase of 33% over the prior year, or $0.74 per share, an increase of 36% over the prior year.
MasterCard posted a -1.1 %YOY decline in second quarter net income. MasterCard reported $921 million in net income for Q2/15, compared to $1020 million for Q1/15 and $931 million for Q2/14.
However, excluding a special item, MasterCard reported net income of $965 million, up 4%, or 12% after adjusting for currency, and earnings per diluted share of $0.85, up 6% or 15% adjusted for currency, versus the year-ago period. Including the special item, a $44 million after-tax charge related to a U.K. merchant litigation settlement, the company reported net income of $921 million, a decrease of 1%, or an increase of 7% after adjusting for currency, and earnings per diluted share of $0.81, up 1%, or 9% adjusted for currency, versus the year-ago period.
American Express U.S. Card Services segment posted a 15.1% YOY gain in second quarter net income. American Express reported $886 million in net income for Q2/15, compared to $934 million for Q1/15 and $770 million for Q2/14.
Discover posted a 7.0% YOY decline in second quarter net income. Discover reported $599 million in net income for Q2/15, compared to $586 million for Q1/15 and $644 million for Q2/14.
VISA NET INCOME
2Q/14: $1360 million
3Q/14: $1073 million
4Q/14: $1569 million
1Q/15: $1550 million
2Q/15: $1697 million
MASTERCARD NET INCOME
2Q/14: $ 931 million
3Q/14: $1015 million
4Q/14: $ 801 million
1Q/15: $1020 million
2Q/15: $ 921 million
AMERICAN EXPRESS U.S. CREDIT CARD NET INCOME
2Q/14: $770 million
3Q/14: $889 million
4Q/14: $665 million
1Q/15: $934 million
2Q/15: $886 million
DISCOVER U.S. CREDIT CARD NET INCOME
2Q/14: $644 million
3Q/14: $644 million
4Q/14: $404 million
1Q/15: $586 million
2Q/15: $599 million
Source: Chase; Bank of America; Capital One; Citibank; American Express; Discover; CardData
For data, background and forecasts on Payment Card Network Profits: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).