J.P. Morgan Chase reported this morning that first quarter credit card profits declined 15% year-on-year to $765 million, compared to $719 million in the prior quarter and $901 million in the year-ago quarter. The year-ago quarter was artificially boosted by the change in bankruptcy laws which took effect in the fourth quarter of 2005. Managed card loans were up 9% to $146.6 billion year-on-year but down 4% sequentially, impacted by seasonally higher payment activity. During the quarter, Chase inked several new partner relationships, including Amtrak and several partner relationships were renewed, including Buy.com and Speedway SuperAmerica. The managed net charge-off rate for the quarter was 3.57%, up from 2.99% in the prior year and 3.45% in the prior quarter. The 30-day managed delinquency rate was 3.07%, down from 3.10% in the prior year and 3.13% in the prior quarter. During the first quarter, the net accounts opened were 3.4 million. Charge volume of $81.3 billion increased by $7.0 billion, or 9%, from the prior year. Merchant processing volume of $163.6 billion increased by $15.9 billion, or 11%, and total transactions of 4.7 billion increased by 335 million, or 8%, from the prior year. For complete details on Chase’s first quarter performance, visit CardData ([www.carddata.com]).
JPM CHASE HISTORICAL ($billions)
1Q/06 2Q/06 3Q/06 4Q/06 1Q/07
EOP Outstandings: $134.3 139.3 143.8 152.8 146.6
Charge Volume: $ 74.3 84.4 87.5 93.4 81.3
Source: CardData (www.carddata.com)