JP Morgan Chase 2006 Annual Report Download - page 18

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16
(In millions, except ratios) 2006 2005
Total net revenue $14,745 $15,366
Net income 3,206 1,907
Return on equity 23% 16%
With more than 154 million cards
in circulation and $153 billion in
managed loans, Chase Card Services
is one of the nation’s largest credit
card issuers. Customers used Chase
cards for more than $339 billion
worth of transactions in 2006.
We offer a wide variety of general-
purpose cards to satisfy the needs
of individual consumers, small busi-
nesses and partner organizations,
including cards issued with AARP,
Amazon, Continental Airlines,
Marriott, Southwest Airlines, Sony,
United Airlines, Walt Disney Company
and many other well-known brands
and organizations. We also issue
private-label cards with Circuit City,
Kohl’s, Sears Canada and BP.
Chase Paymentech Solutions, LLC,
a joint venture with JPMorgan Chase
and First Data Corporation, is the
largest processor of MasterCard
and Visa payments in the world,
handling over 18 billion transactions
in 2006.
MAJOR 2006 ACCOMPLISHMENTS
•Added 15.9 million new Visa, MasterCard and private-label accounts.
•Launched innovative Chase Freedomsm program, the first card to give cardmembers the choice of
earning either cash or points and changing back without leaving any rewards behind.
•Continued to build our private-label business through new partnerships with BP, Kohl’s and
Pier 1 Imports, Inc.
•Increased merchant processing volume to $661 billion, up 17% from 2005.
•Expanded judgmental lending and instant-credit decision-making capabilities.
•Continued to be market leader in contactless technology, with more than 7 million “blink”
enabled Chase cards issued.
•Increased sales on the Sears Canada portfolio and launched our first new Canadian Visa product,
the Chase Marriott Rewards Visa Card.
2007 AND BEYOND
•Establish Chase as an iconic brand by continually delivering on our brand promise through our
employees, advertising and innovative products and services.
•Drive superior long-term growth in profits, customers, managed loans and sales by building customer value
and reducing operating cost per account through investments in marketing and technology initiatives.
•Expand the markets we serve to reach a broader base of consumers, including the small-business,
student, Hispanic and private-label segments.
•More effectively cross-sell credit card and bank products to the firm’s customers, offering superior
product sets and customer service.
2006 HIGHLIGHTS
•Second-largest MasterCard/Visa credit card issuer in the United States(a).
•Largest merchant acquirer in the world through Chase Paymentech Solutions, LLC(a).
•Fourth-largest private-label credit card issuer in the United States(a).
•Increased overall profitability and grew managed loans while investing in activities to attract
new customers and further engage current cardmembers.
•The Chase Home Improvement, Borders and BP Visa rewards card programs were included on
list of 10 best cards of 2006 by IndexCreditCards.com.
CARD SERVICES
(a) SEC filings and company reports