JP Morgan Chase 2010 Annual Report Download - page 42

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Chase’s recently introduced propri-
etary products and features are
targeted at vital, profitable segments
of the consumer market. Chase
FreedomSM, which targets savvy
rewards-oriented consumers;
Chase SapphireSM, targeting the
auent market; InkSM from Chase,
aimed at business card users; Chase
BlueprintSM, which helps consumers
take charge of their finances; and
our Ultimate RewardsSM program
all have shown encouraging early
success, with customers using our
products for more of their spending.
Even after several challenging
years, I never have been more
confident about the outlook for
Card Services. As we work to help
customers manage (and not become
overwhelmed by) their personal
finances, Card Services enters
2011 in a strong position as credit
markets improve and as we strive
to make our oerings ever more
indispensable.
In 2010, Chase Card Services made
strong progress in positioning
its business for the future, as we
gained customers and increased
market share of consumer
payments. As we enter 2011, more
customers are using our products
than at any time in history.
The strength of JPMorgan Chase
gave Card Services the ability,
during the worst three years in the
credit card industry’s history, to
make bold investments across its
portfolio: innovative new products,
such as our suite of resources for
business card holders; a broader-
based rewards platform than any
other card provider; and ground-
breaking services that directly
respond to consumer needs. These
products and services enable us to
build strong and enduring relation-
ships with Chase cardmembers, who
not only see everyday value in our
oerings but also depend on us to
help them make progress toward
their goals.
2010 Results: Sales and Market
Share Up amid Product Growth
Card Services ended 2010 with
improvements in several key areas
across all customer segments. Net
income was $2.1 billion compared
with a net loss of $2.2 billion in
2009. The improved results were
driven by a lower provision for
credit losses, partially oset by
lower net revenue. Sales volume
for 2010, excluding the Washington
Mutual (WaMu) portfolio, was
$302 billion – a record high and a
measure that shows customers are
using our products more frequently
for their daily needs.
Beginning in 2008, which was the
year the financial crisis began, we
have consistently gained sales
market share for Chase card
products. We have gained 234
basis points of market share over
those three years, which is 74
basis points more than our closest
“As we enter 2011,
more customers
are using our
products than at
any time in history.”
Card Services