U.S. Bancorp reports that second quarter merchant acquiring volume declined 11%
year-on-year to $59.7 billion and that the number of merchants declined 849,626.
However, average credit card outstandings soared by 24% to $14.3 billion.
Charge-offs rose to 7.36% from 6.32% in the first quarter and 4.84% for 2Q/08.
Total credit card volume, including consumer and business cards, declined 6% for
2Q/09 to $19.9 billion. Total debit card volume rose 4% from one-year ago to $9.4
billion. Credit and debit card revenue, corporate payment products revenue and
merchant processing services revenue were lower in the second quarter by 2.6%,
3.4% and 10.0%, respectively, as transaction volumes declined. USB noted that
marketing and business development expense was higher by 21% due to costs related
to new credit card product initiatives. Payment Services contributed $62 million
of the Company’s net income in the second quarter, a decrease of 74.8% from the
same period of 2008 and 36.7% from the prior quarter. The decline year-over-year
was due primarily to a $284 million increase in the provision for credit losses
driven by an increase in net charge-offs and an increase in provision expense
related to credit card portfolio growth, higher delinquency rates and changing
economic conditions from a year ago. For complete detail on U.S. Bancorp’s latest
results visit CardData (www.carddata.com).
MERCHANT ACQUIRING VOLUME HISTORICAL
Source: CardData (www.carddata.com)