J.P. Morgan Chase reported this morning that first quarter credit card profits nearly tripled from the prior quarter and rose 73% over the year ago quarter to $901 million. The profit surge was driven by a pre-tax benefit of $550 million provision related to the impact of lower bankruptcies in the prior quarter. In addition, overall lower credit losses, merger savings and higher loan balances, including the acquisition of the Sears Canada credit card business helped drive the record profits for 1Q/06. Managed card loans of $134.3 billion were up 1% year-on-year. Charge volume of $74.3 billion increased by $4.0 billion or 6% over 1Q/05. Net accounts opened were 2.7 million, about the same as 1Q/05. Merchant processing volume of $147.7 billion increased 18% year-on-year and total transactions of 4.1 billion increased by 19%. The managed net charge-off rate for the quarter decreased to 2.99%, down from 4.83% in the prior year and 6.39% in the prior quarter. The 30-day managed delinquency rate was 3.10%, down from 3.54% in the prior year and up from 2.79% in the prior quarter. For complete details on Chase’s first quarter performance, visit CardData ([www.carddata.com]).
JPM CHASE HISTORICAL ($billions)
1Q/05 2Q/05 3Q/05 4Q/05 1Q/06
EOP Outstandings: $133.4 137.3 137.6 142.3 134.3
Charge Volume: $ 70.3 75.6 76.4 79.6 74.3
Source: CardData (www.carddata.com)