US financial services firm JPMorgan Chase has
reported its Q3 card division results, with net income now standing
at $735 million, compared with a loss of $700 million at the same
point last year.
Chase claims the improved results were driven
by a lower provision for credit losses and is partially offset by
lower net revenue which currently stands at $4.3 billion, a
decrease of $29.1 billion, or 17 percent, from Q3 2009.
The decrease in net revenue is said to be due
to lower average loan balances, the impact of legislative changes
and a decreased level of fees.
“Card Services increased sales volume by 7
percent compared with the prior year, and positive credit trends
assisted in delivering improved results,” said Jamie Dimon,
chairman and CEO of JPMorgan Chase.
“Delinquencies and net charge-offs continued
to improve, and we reduced loan loss reserves by $1.5 billion this
quarter as estimated losses declined. We expect credit card net
charge offs to continue to improve next quarter.”
Figures show the provision for credit losses
was $1.6 billion, compared with $5 billion at the same time last
year and $2.2 billion in the prior quarter. The net charge-off rate
was 8.87 percent, down from 10.3 percent in Q3 2009 and 10.2
percent in Q2 this year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Chase revealed its sales volume also increased
by 7 percent to $79.6 billion and 2.7 million new accounts were
opened. Merchant processing volume was $117 billion on 5.2 billion
total transactions processed.