JP Morgan Chase 2009 Annual Report Download - page 75

JPMorgan Chase & Co./2009 Annual Report
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billion. The increases in both average managed loans and end-of-
period managed loans were predominantly due to the impact of the
Washington Mutual transaction and organic portfolio growth.
Managed total net revenue was $16.5 billion, an increase of $1.2
billion, or 8%, from the prior year. Net interest income was $13.8
billion, up $1.6 billion, or 13%, from the prior year, driven by the
Washington Mutual transaction, higher average managed loan
balances, and wider loan spreads. These benefits were offset par-
tially by the effect of higher revenue reversals associated with
higher charge-offs. Noninterest revenue was $2.7 billion, a de-
crease of $327 million, or 11%, from the prior year, driven by
increased rewards expense, lower securitization income driven by
higher credit losses, and higher volume-driven payments to part-
ners; these were largely offset by increased interchange income,
benefiting from a 4% increase in charge volume, as well as the
impact of the Washington Mutual transaction.
The managed provision for credit losses was $10.1 billion, an
increase of $4.3 billion, or 76%, from the prior year, due to an
increase of $1.7 billion in the allowance for loan losses and a
higher level of charge-offs. The managed net charge-off rate in-
creased to 5.01%, up from 3.68% in the prior year. The 30-day
managed delinquency rate was 4.97%, up from 3.48% in the prior
year. Excluding Washington Mutual, the managed net charge-off
rate was 4.92% and the 30-day delinquency rate was 4.36%.
Noninterest expense was $5.1 billion, an increase of $226 million,
or 5%, from the prior year, predominantly due to the impact of the
Washington Mutual transaction.
The following are brief descriptions of selected business metrics within Card Services.
• Charge volume – Dollar amount of cardmember purchases, balance transfers and cash advance activity.
• Net accounts opened – Includes originations, purchases and sales.
• Merchant acquiring business – A business that processes bank card transactions for merchants.
• Bank card volume – Dollar amount of transactions processed for merchants.
• Total transactions – Number of transactions and authorizations processed for merchants.