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Credit Card Applications » News » Other » Chase reports increase in credit card spending across the board

Chase reports increase in credit card spending across the board

October 27, 2010
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The confidence level amongst the investors is increasing gradually as the credit card market is getting more and more stable by the day. This is following reports from the top lenders of the country about earnings increasing appreciably. JPMorgan Chase & Co. has reported a rise in credit card spending over the last one month by 6.6 percent. This was welcome news especially for MasterCard and Visa as these companies saw their stock prices rising too. Visa witnessed a 3.6 percent hike while MasterCard saw its stock prices rising by 3.9 percent. In the monthly release of the bank, it was reported that the spending on the Chase card increased to 79.6 billion during the third quarter that ended on September 30th. This was an increase from 74.7 billion dollars around the same time last year.

The merchant acquiring business of Chase has increased by 16 percent with the electronic transactions increasing to 5.2 million. Along with increase in the spending on the cards, Chase has also issued 2.7 million new credit card accounts during the third quarter. Less money has been set aside by Chase for defaults in all the areas which included credit cards, auto loans and mortgages. 1.63 billion dollars was set aside by the bank in the card division which is a third of what was set aside by the card for defaults a year ago. This process has allowed the bank to gain 23 percent in terms of net income in the third quarter.

The defaults on credit cards meanwhile have decreased too from 10.3 percent to 8.87 percent which was where it stood the same time last year. The default percent was at 10.2 percent in the second quarter. The delinquencies on cards have dropped considerably too with those that are past 30 days due has dropped to 4.75 percent from 5.99 percent last year. The figure for the delinquencies during the second quarter was slightly higher at 4.96 percent.

Defaults in another card, the Washington Mutual, that was acquired by Chase has also decreased to 8.06 percent, which is a considerable drop from 9.41 percent around the same time last year. Card delinquencies in the earliest stages also fell from 5.38 percent to 4.13 percent which represented a significant drop. The percentage in the second quarter was 4.48 percent. Thus there was an all-round improvement in the situation of the credit card industry.

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