Bank of America reported that revenue for its global card services unit rose 18% to $5.47 billion. Net income of $1.6 billion was more than double the year ago period. Managed card loans at the end of the second quarter increased 7% year-on-year to $190.1 billion. Second quarter credit card services charge-offs were 3.59%, compared to 2.89% in the prior quarter and 5.20% one year ago. The managed 30+ day delinquency was 4.56%, compared to 4.37% in the first quarter and 4.37% for 2Q/05. BofA also reported that its merchant acquiring business handled $97.2 billion in processing volume during the second quarter from total transactions of 2.0 billion. (BofA now includes consumer finance, international card operations and merchant services in reporting Card Services.) BofA also reported that debit card income grew more than 20% from the second quarter of 2005, as higher checking account volume and the “Keep the Change” program increased usage of debit cards at retail locations. Debit card purchase volume topped a record $42 billion in the quarter, an increase of 22% from the second quarter of last year. For complete details on Bank of America’s 2Q/06 performance, visit CardData ([www.carddata.com]).
BOFA/MBNA EOP CARD LOAN HISTORICAL
2Q/05: $176.9 billion
3Q/05: $182.9 billion
4Q/05: $189.4 billion
1Q/06: $184.9 billion
2Q/06: $190.1 billion
Source: CardData (www.carddata.com)