JP Morgan Chase 2013 Annual Report Download - page 89

JPMorgan Chase & Co./2013 Annual Report 95
194 and pages 326–332, respectively, of this Annual
Report.
The mortgage servicing consent order is subject to ongoing
oversight by the Mortgage Compliance Committee of the
Board, and certain Consent Orders and settlements are the
subject of ongoing reporting to various regulators, and the
Office of Mortgage Settlement Oversight (“OMSO”).
Card, Merchant Services & Auto
Selected income statement data
Year ended December 31,
(in millions, except ratios) 2013 2012 2011
Revenue
Card income $ 4,289 $ 4,092 $ 4,127
All other income 1,041 1,009 765
Noninterest revenue 5,330 5,101 4,892
Net interest income 13,360 13,669 14,249
Total net revenue 18,690 18,770 19,141
Provision for credit losses 2,669 3,953 3,621
Noninterest expense 8,078 8,216 8,045
Income before income tax
expense 7,943 6,601 7,475
Net income $ 4,786 $ 4,007 $ 4,544
ROE 31% 24% 28%
Overhead ratio 43 44 42
Equity (period-end and
average) $ 15,500 $ 16,500 $ 16,000
2013 compared with 2012
Card, Merchant Services & Auto net income was $4.8 billion,
an increase of $779 million, or 19%, compared with the prior
year, driven by lower provision for credit losses.
Net revenue was $18.7 billion, flat compared with the prior
year. Net interest income was $13.4 billion, down $309
million, or 2%, from the prior year. The decrease was
primarily driven by spread compression in Credit Card and
Auto and lower average credit card loan balances, largely
offset by the impact of lower revenue reversals associated
with lower net charge-offs in Credit Card. Noninterest
revenue was $5.3 billion, an increase of $229 million, or
4%, compared with the prior year primarily driven by
higher net interchange income, auto lease income and
merchant servicing revenue, largely offset by lower revenue
from an exited non-core product and a gain on an
investment security recognized in the prior year.
The provision for credit losses was $2.7 billion, compared
with $4.0 billion in the prior year. The current-year
provision reflected lower net charge-offs and a $1.7 billion
reduction in the allowance for loan losses due to lower
estimated losses reflecting improved delinquency trends
and restructured loan performance. The prior-year
provision included a $1.6 billion reduction in the allowance
for loan losses. The Credit Card net charge-off rate was
3.14%, down from 3.95% in the prior year; and the 30+
day delinquency rate was 1.67%, down from 2.10% in the
prior year. The Auto net charge-off rate was 0.31%, down
from 0.39% in the prior year.