Again driven by Visa’s electric performance in the third quarter with net income rising 41%, payment card profits for the top four networks rose 7.2% in the third quarter, compared to one-year ago. Visa, MasterCard, American Express and Discover reported a combined 3Q/15 profit of $3883 million, compared to $3621 million for 3Q/14.
Visa’s third quarter net income jumped 41% year-on-year (YOY) to $1.5 billion. Adjusted net income for the full-year 2015 was $6.4 billion or $2.62 per share, an increase of 13% and 16% over the prior year’s adjusted results, respectively. The Company’s full-year 2015 adjusted financial results excluded a non-cash, non-operating expense recorded upon the revaluation of the Visa Europe put option of $110 million. The Company’s 2015 results included a one-time tax benefit of $239 million resulting from the successful resolution of uncertain tax positions with taxing authorities during the fiscal third quarter that related to prior years.
MasterCard third quarter profits rose 4.7% year-on-year (YOY), or 12% on a currency adjusted basis (FX) to $965 million.
Cross-border volume soared 17% YOY. Global purchase volume rose 12.8% (FX) to $1141 billion and end-of-period (EOP) global cards-in-force (CIF) nearly hit 1.5 billion.
American Express third quarter profits slipped year-on-year (YOY) by 10.7% to $794 million. AmEx says revenue and billed business levels were suppressed by a stronger U.S. dollar, plus renewals and changes it made earlier this year to some co-brand relationships also entailed some significant incremental expenses in Q3. U.S. credit card outstandings rose 7.1% to $62.1 billion, compared to $61.7 billion in the prior quarter and $58.0 billion in year ago quarter.
Discover’s credit card outstandings continued strong in the third quarter rising 3.7% as Purchase Dollar Volume (PDV) rose 2.7%, year-on-year (YOY). While all other credit card metrics remained stable, overall net income for Q3/15 declined 5.0% YOY to $612 million. Discover reported credit card end-of-period (EOP) outstandings rose 3.7% YOY for Q3/15 of $55.7 billion, compared to $54.9 billion for the second quarter and $53.7 billion for the year ago quarter. Average outstandings increased 4.1% YOY to $55.3 billion, compared to $54.0 billion for the second quarter and $53.1 billion for the year ago quarter.
VISA NET INCOME
3Q/14: $1073 million
4Q/14: $1569 million
1Q/15: $1550 million
2Q/15: $1697 million
3Q/15: $1512 million
MASTERCARD NET INCOME
3Q/14: $1015 million
4Q/14: $ 801 million
1Q/15: $1020 million
2Q/15: $ 921 million
3Q/15: $ 965 million
AMERICAN EXPRESS U.S. CREDIT CARD NET INCOME
3Q/14: $889 million
4Q/14: $665 million
1Q/15: $934 million
2Q/15: $886 million
3Q/15: $794 million
DISCOVER U.S. CREDIT CARD NET INCOME
3Q/14: $644 million
4Q/14: $404 million
1Q/15: $586 million
2Q/15: $599 million
3Q/15: $612 million
Source: Chase; Bank of America; Capital One; Citibank; American Express; Discover; CardData
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