J.P. Morgan Chase reported this morning that credit card profits for the second quarter rose 32.5% to $542 million while revenues increased less than 3% to $3.89 billion, compared to one-year ago. Managed card loans of $137.3 billion were up 6.6% year-on-year and up 2.9% sequentially. Pre-tax income to average managed loans (ROO) was 2.56% for 2Q/05, compared to 2.52% in 1Q/05 and 2.07% for 2Q/04. During the second quarter, Chase opened 2.79 million net new credit card accounts, ending the quarter with 95.5 million cards in-force. Charge volume for 2Q/05 was $75.6 billion, compared to $70.6 billion one-year ago. The managed net charge-off ratio for the quarter increased to 4.87%, from 4.83% in 1Q/05 and 5.56% one-year ago. The 30-day managed delinquency ratio declined to 3.34%, down from 3.54% in the prior quarter. The 90-day managed delinquency ratio was 1.54%, down sharply from 1.71% in the first quarter. Bank card volume for Chase’s merchant acquiring business was $141.2 billion with 4.7 billion transactions. Chase also reported that it ended the quarter with 8,834,000 debit cards. For complete details on Chase’s second quarter performance, visit CardData ([www.carddata.com]).
JPM CHASE HISTORICAL ($billions)
2Q/04 3Q/04 4Q/04 1Q/05 2Q/05
EOP Outstandings: $128.8 131.5 135.4 133.4 137.3
Charge Volume: $ 70.6 73.3 75.3 70.3 75.6
Source: CardData (www.carddata.com)