JPMorgan Chase & Co reported net income for the 4th Quarter 2013 at $5.3 billion. This was a slight increase from 4th Q 2012 which was reported at $5.2 billion. Revenue for the quarter was down 1% to $24 billion compared to the same period in 2012. Legal costs associated with a number of issues was noted as a reason for the drop in profits. Adjusted for the significant items disclosed in our earnings press releases this quarter and in the fourth quarter of 2012, EPS would have been $1.40 this year compared with $1.35 in the prior year and ROTCE would have been 15% this year, flat compared with the prior year.
JPMorgan Chase reported fourth-quarter 2010 net income of $4.8 billion, an increase of 47% compared with $3.3 billion for the fourth quarter of 2009 while full-year 2010 net income was $17.4 billion, an increase of 48% compared with $11.7 billion for the prior year. For the Card Services division, net income was $1.3 billion, compared with a net loss of $306 million in the prior year, and total merchant processing volume was $127.2 billion on 5.6 billion total transactions processed. Meanwhile, end-of-period loans were $137.7 billion, a decrease of $25.7 billion, or 16%, from the prior year and an increase of $1.2 billion, or 1%, from the prior quarter. Average loans were $135.6 billion, a decrease by 17% of $27.6 billion from the prior year and $4.5 billion from the prior quarter. With this, net revenue was $4.2 billion, a decrease of $902 million, or 18%, from the prior year. The provision for credit losses was $671 million, compared with $4.2 billion in the prior year and $1.6 billion in the prior quarter, thanks to lower net charge-offs and a reduction of $2.0 billion to the allowance for loan losses due to lower estimated losses.
JPMorgan Chase reported Card Services net loss of $303 million for 1Q/10, compared with a net loss of $547 million in the prior year. This was thanks in part to lower provision for credit losses, partially offset by lower net revenue. End-of-period managed loans were $149.3 billion, a decrease of $26.9 billion, or 15%, from the prior year and $14.2 billion, or 9%, from the
prior quarter. Average managed loans were $155.8 billion, a decrease of $27.6 billion, or 15%, from the prior year and $7.4 billion, or 5%, from the prior quarter. Managed net revenue was $4.4 billion, a decrease of $682 million, or 13%, from the prior year. Net interest income was $3.7 billion, down by $793 million, or 18%. Noninterest revenue was $758 million, an increase of $111 million, or 17% thanks to a prior-year write-down of securitization interests, partially offset by run-off from the Washington Mutual portfolio. The managed provision for credit losses was $3.5 billion, compared with $4.7 billion in the prior year and $4.2 billion in the prior quarter noninterest expense was $1.4 billion, an increase of $56 million, due to higher marketing expense.
1Q/08 $609 million
2Q/08 $250 million
3Q/08 $292 million
4Q/08 -$371 million
1Q/09 -$547 million
2Q/09 -$672 million
3Q/09 -$700 million
4Q/09 -$306 million
1Q/10 -$303 million
MoneyGram has agreed to pay $18 million in consumer redress to settle
FTC charges its money transfer system was used by fraudulent
telemarketers to scam millions from consumers between 2004 and 2008. The
FTC concluded MoneyGram agents knowingly helped fraudulent telemarketers
who tricked U.S. consumers into wiring more than $84 million within the
U.S. and to Canada. These consumers were tricked by being told they were
falsely hired for a secret shopper program, they had won a lottery or
were guaranteed loans. In some cases the FTC alleges MoneyGram agents in
Canada actually participated in these schemes. Moreover, 131 of its more
than 1,200 agents accounted for more than 95% of the fraud complaints it
received in 2008 regarding money transfers to Canada. At least 65 of
MoneyGramâs Canadian agents have been charged by Canadian or U.S. law
enforcers with, or are currently being investigated for, colluding in
fraud schemes that used the MoneyGram system.
Scotiabank reported a net income of $872 million for the first calendar quarter, down $108 million
by 11% compared with 4Q08. Quarter over quarter, however, net income
increased $30 million by 4% with a provision for credit losses of $489
million. This is an increase of $336 million from the same period last
year and is a $208 million increase since 1Q09. The bank reported a
funded commit- exposure to credit card/consumer receivables of $125
million with allowance for net credit losses on credit cards of $154
million. Scotiabank’s unaudited consolidated balance sheet reflects
personal loans and credit cards total $52,847,000,000 while gross
allowance is $965,000,000. In March, Scotiabank introduced its new
“Scotia Momentum” VISA offering cardholders 2% cash back on purchases
and recurring payments.
Scotiabank employs over 69,000 serving 12.8 million customers in nearly
50 countries and has generated over $509 billion in assets.
The Alliance Data’s credit card subsidiary, “World Financial Network
National Bank,” has established financing for $600 million in credit-card-
asset-backed-bonds with the help of Barclays Financing. These afore-
mentioned bonds are set to mature in the spring of 2008, which will be
88% funded by the new facility and 12% by the combination of cash, CDs
and investors, and will be accommodated for by the company’s liquidity.
Alliance Data manages over 120 million consumer relationships
across North America and employs over 9,000 individuals at 60 locations
Metris reported that it filed a response to the recent SEC “Wells Notices” on August 2nd with the Midwest Regional Office of the SEC. Metris Companies Inc. offers credit cards, credit protection and insurance products to consumers nationwide. Metris issues credit cards through Direct Merchants Credit Card Bank, N.A., a wholly owned subsidiary in Phoenix, AZ.
Metris Companies chalked up two consecutive profitable quarters as the sub-prime issuer posted first quarter net income of $42 million, compared to a net loss of $83 million for 1Q/03. The sub-prime specialist also reported that charge-offs and delinquency headed south during the quarter. The managed net charge-off rate for the first quarter was 17.8%, compared to 21.7% in the previous quarter, and 18.0% for the first quarter of 2003. The managed delinquency rate was 10.4% as of March 31st, compared to 11.1% at year-end, and 11.5% posted one-year ago. Revenues for the quarter were $178.6 million, a 59.7% increase over $111.8 million for the quarter ended March 31, 2003. The increase is primarily due to a $157.0 million increase in securitization income, reflecting improved performance in the Metris Master Trust. This increase was partially offset by a $42.6 million reduction in credit card loan interest and fee income due to a $624.7 million reduction in average credit cards loans, and a $36.0 million reduction in enhancement services income due to the sale of our membership club and warranty business in the third quarter of 2003. Total expenses were $114.3 million for the first quarter, a decrease of $125.0 million from $239.3 million for the quarter ended March 31, 2003. For complete details on Metris’ first quarter performance visit CardData ([www.carddata.com]).
METRIS INCOME SNAPSHOT
1Q/03: -$82.5 million
2Q/03: -$24.7 million
3Q/03: -$75.0 million
4Q/03: +35.0 million
1Q/04: +$41.6 million
Source: CardData (www.carddata.com)
J.P. Morgan Chase reported that operating earnings for its card business increased 25% in the fourth quarter, and that its credit card outstandings hit $52.3 billion in the fourth quarter, a 3% increase over the prior quarter, and a 2% gain over 4Q/02. Charge-offs declined and dollar volume increased for the third consecutive quarter. Operating earnings for the fourth quarter were $171 million, compared to $137 million one-year ago. Charge-offs came in at 5.76%, compared to 5.83% in the previous quarter, and 5.71% one-year ago. Charge volume for 4Q/03, which includes total customer purchases, cash advances and balance transfers, was $23.9 billion, compared to $21.2 billion for 4Q/02, a 13% increase. However, delinquency (30+ days) increased 6 basis points over the third quarter to 4.68%. Delinquency for 4Q/02 was 4.67%. Chase reported that it signed up about one million new accounts in the fourth quarter. The issuer ended the year with 30.8 million gross card accounts and 16.5 million active card accounts. For complete details on Chase’s fourth quarter performance visit CardData (www.carddata.com).
J.P. Morgan Chase reported that its credit card outstandings were flat compared to the prior quarter and the year-ago quarter, holding at $50.3 billion. However, charge-offs declined 21 basis points from the second quarter, but remain up by 29 basis points from 3Q/02. Delinquency (30+ days) increased 22 basis points over the second quarter to 4.62%, and up 15 basis points over 3Q/02. Charge volume for the third quarter was slightly lower than one-year ago, $22.9 billion versus $23.0 billion. Chase’s account base increased by 300,000 accounts in the third quarter to end at 30.6 million. However, active accounts declined from 16.4 million in 2Q/03, to 16.3 million for the third quarter. For complete details on Chase’s third quarter performance visit CardData ([www.carddata.com]).
Bank One reported this morning that its credit card profits for the third quarter were off 4% compared to one-year ago, but up 2% over the prior quarter. The issuer blamed the softer profits on margin compression and a higher provision for credit losses. For the third quarter, Bank One posted net income of $285 million for its Card Services unit, compared to $296 million for 3Q/02 and $279 million in the second quarter. Total card revenue and net interest income increased 5% to $2.1 billion and $1.6 billion, respectively. End-of-period managed card loans increased 7% to $74.2 billion, compared to $69.2 billion one year ago. Charge volume increased 8% to $42.8 billion. Net charge-offs increased to 5.30%, compared to 5.21% in the prior quarter, and 5.00% for 3Q/02. The 30-day delinquency rate, decreased to 3.98% from 4.05% in the prior year but increased from 3.95% in the prior quarter. The 90-day delinquency rate was flat at 1.85% for the second and third quarters, but much higher than last year’s third quarter rate of 1.68%. For complete details on Bank One’s 3Q/03 performance visit CardData ([www.carddata.com]).
Metris Companies/Direct Merchants Credit Card Bank reported a net loss for the second quarter of $15.7 million, compared to a $25.0 million loss in the first quarter, and $36 million loss one year ago. Managed credit card loans at the end of the second quarter were $10.1 billion, compared to $10.7 billion in the first quarter, and $11.4 billion one year ago. Metris says the decrease in managed portfolio balances was due to continued slower account growth, tighter underwriting standards and more stringent credit line management strategies. During the second quarter, the managed net charge-off rate for the second quarter was 19.1%, compared to 18.0% for the prior quarter, and 14.9% for the second quarter 2002. The managed 2Q/03 delinquency rate was 11.2%, compared to 11.5% at March 31st, and 10.1% at June 30, 2002. For complete details on Metris/Direct Merchants Credit Card Bank 2Q/03 results visit CardData ([www.carddata.com]).