JP Morgan Chase must love their credit card division. Last week, they posted a profit of $849 million, a number that was aided by low default rates as well as better sales volume. With increasingly fewer problems among customers, total credit losses in the company are down to $1.3 billion, which is down from $1.8 billion last year.
Overall, net revenue at Chase Card Services isnt as strong as one might expect. It fell to $4.8 billion, which is 6 percent below last years numbers. Interest income is also down 13%. It fell by $504 million, but a big part of that is that customers are paying down their loan balances.
The charge-off rates are decreasing as are delinquency rates throughout the company, which may be contributing to better profits. Charge-offs are just 3.47%, which is down from 6.43% at the same time last year. Delinquency rates are at 2.36%, which is down from 3.49% a year ago.
Even with solid numbers like these, overall, net income fell to $4.26 billion for the company.