Profits (after tax) among the nation’s Big 6 U.S. credit card issuers declined 4.9% in the first quarter (1Q/16), compared to one year ago (YOY) and, down 2.0% sequentially (QTQ).
Aggregate card after tax profits for the Big 6 issuers logged in at $3789 million for 1Q/16, compared to $3867 million for 4Q/15 and $3984 million for 1Q/15.
American Express and BofA led the peer group with positive YOY growth.
Citi credit card profits collapsed by more than 30% YOY in 1Q/16.
After becoming the first U.S. bank credit card issuer to top $1 billion in quarterly net income, Chase dipped below the milestone in 1Q/16.
American Express 1Q/16 after tax net income for U.S. cards increased 5.3% YOY to $694 million, compared to $541 million in the prior quarter and $659 million in the year-ago quarter.
Discover’s 1Q/16 after tax net income for U.S. cards dipped 1.9% YOY to $575 million, compared to $500 million in the prior quarter and $586 million in the year-ago quarter.
Chase’s 1Q/16 after tax net income dipped 8.0% YOY to an estimated $954 million, compared to $1069 million in the prior quarter and $935 million in the year-ago quarter.
BofA’s 1Q/16 after tax net income edged upward by 3.6% YOY to an estimated $636 million, compared to an estimated $728 million in the prior quarter and an estimated $614 million in the year-ago quarter.
Capital One’s 1Q/16 after tax net income dipped by 9.2% YOY to $564 million, compared to $514 million in the prior quarter and $621 million in the year-ago quarter.
Citibank 1Q/16 after tax net income sunk 32.1% YOY to $366 million, compared to $515 million in the prior quarter and $539 million in the year-ago quarter.
BIG 6
U.S. AFTER-TAX CARD PROFITS
1Q/15: $3984 million
2Q/15: $3791 million
3Q/15: $3988 million
4Q/15: $3867 million
1Q/16: $3789 million
AMERICAN EXPRESS U.S. CREDIT CARD NET INCOME
1Q/15: $659 million
2Q/15: $613 million
3Q/15: $542 million
4Q/15: $541 million
1Q/16: $694 million
DISCOVER NET INCOME
1Q/05: $586 million
2Q/15: $599 million
3Q/15: $612 million
4Q/15: $500 million
1Q/16: $575 million
CHASE U.S. CREDIT CARD NET INCOME
1Q/15: $935 million
2Q/15: $965 million
3Q/15: $961 million
4Q/15: $1069 million
1Q/16: e$954 million
BANK OF AMERICA U.S. CREDIT CARD NET INCOME
1Q/15: e$614 million
2Q/15: e$657 million
3Q/15: e$712 million
4Q/15: e$728 million
1Q/16: e$636 million
CAPITAL ONE U.S. CREDIT CARD NET INCOME
1Q/15: $621 million
2Q/15: $458 million
3Q/15: $639 million
4Q/15: $514 million
1Q/16: $564 million
CITIBANK U.S. CREDIT CARD NET INCOME
1Q/15: $539 million
2Q/15: $499 million
3Q/15: $522 million
4Q/15: $515 million
1Q/16: $366 million
Source: Chase; Bank of America; Chase; Citibank; American Express; Discover
NOTE: e-estimated based on total after tax net income of Consumer & Business Banking
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