Chase, the nation’s largest bank credit card issuer, continues to struggle with real growth as third quarter (Q3/15) outstandings inched upward by a mere 2% year-on-year (YOY) and purchase dollar volume (PDV) posted a weak growth rate of 6.%. Furthermore, Chase is consistently signing up 2.1 million accounts per quarter, while losing 3.0 million accounts YOY.
Credit card profits declined 6% in the third quarter to $1074 million, compared to $1118 million in the prior quarter and $1137 million in the year ago quarter.
Chase reported purchase dollar volume (PDV) in the third quarter of $126.6 billion, up 5.9% YOY, compared to a 6.5% YOY gain the prior quarter. However, the number of active credit card accounts also ticked up to 33.0 million, a 2.8% increase over third quarter 2014.
CHASE US CC PDV
3Q/14: $119.5 billion
4Q/14: $123.6 billion
1Q/15: $112.8 billion
2Q/25: $125.7 billion
3Q/15: $126.6 billion
End-of-Period (EOP) outstandings for 3Q/15 were flat at $126.3 billion. Delinquency rose 9 basis points (bps), but charge-offs decreased 11 bps YOY in Q3/15.
Q3/15 bank credit card PDV increased came in at $126.6 billion, compared to $125.7 billion in the prior quarter and $119.5 billion in the year ago quarter.
Chase bank credit card End-of-Period (EOP) outstandings were stagnant YOY to $126.3 billion.
Delinquency (30+ day) declined 5 bps in Q3/15 to 1.38% compared to 1.42% for Q3/14. Bank credit card delinquency 30+ increased 9 bps from the prior quarter.
Delinquency (90+ day) declined 1 bps in Q3/15 to 0.66% compared to 0.67% for Q3/14. Bank credit card 90+ delinquency rose 3 bps from the prior quarter.
Charge-offs of 2.41% were down 11 bps YOY, and down 20 bps from Q2/15.
At the end of the third quarter Chase had 62.9 million open accounts with 33.0 million posting sales activity. Chase notes it opened 2.0 million new accounts in the quarter, slightly down with Q3/14.
Chase notes that 69% of the new accounts were acquired online, compared to 55% one-year ago.
Additionally Chase says Card, Commerce Solutions & Auto net income was $1.1 billion, a decrease of 6%.
Net revenue was $4.8 billion, an increase of 2%. Net interest income was $3.4 billion, an increase of 4%, driven by a reduction in the reserve for uncollectible interest and fees, and higher loan balances. Non interest revenue was $1.3 billion, down 4%, driven by the impact of changes to co-brand partnerships and higher amortization of new account origination costs, predominantly offset by higher auto lease and card sales volumes.
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