U.S. Bancorp reported net income of $766 million for the second quarter of 2010, driven by record total net revenue of $4.5 billion for 8.7% growth over the year ago period. The quarter was highlighted with $1.7 billion of lines related to new credit card accounts; year-over-year growth in payments-related fee income thanks to merchant processing services revenue up 15.1%; and a third consecutive quarterly decrease in the provision for credit losses with net charge-offs having decreased 1.9% since last quarter. Additionally, US Bank saw provision for credit losses in excess of net-charge-offs of $25 million and a $28 million gain related thanks to its investment in Visa. The Bank’s Payment Services consumer and business credit cards, stored-value cards, debit cards, corporate and purchasing card services, consumer lines of credit and merchant processing contributed $180 million of the Companyâs net income. This contribution is an increase of $126 million over the year ago period and a $61 million increase over the prior quarter and is thanks to a combination of higher total net revenue, up $121 million (12.1% Y/Y) and a lower provision for credit losses. The provision for credit losses decreased $150 million (29.5%) due to a favorable change in the reserve allocation due to improved loss rates, partially offset by reserve build related to credit card portfolio purchases.
MERCHANT ACQUIRING VOLUME HISTORICAL
Source: CardData (www.carddata.com)