Profits (after tax) among the nation’s top four bank credit card issuers declined 8.0% in the first quarter (1Q/16), compared to one year ago (YOY), and down 10.8% sequentially (QOQ).
BofA was the only issuer with a positive YOY gain in credit card profits. Citi credit card profits collapsed by more than 30% YOY in 1Q/16.
Aggregate card after tax profits for the top four issuers logged in at $2520 million for 1Q/16, compared to $2826 million for 4Q/15 and $2739 million for 1Q/15.
After becoming the first U.S. bank credit card issuer to top $1 billion in quarterly net income, Chase nudged below the milestone in 1Q/16.
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.
U.S. AFTER-TAX U.S. CARD PROFITS
1Q/15: $2739 million
2Q/15: $2579 million
3Q/15: $2834 million
4Q/15: $2826 million
1Q/16: $2520 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
NOTE: e-estimated based on total after tax net income of Consumer & Business Banking
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