JPMorgan adds millions of new accounts in 2010
Despite recent news that consumers had been turning away from credit cards in favor of other payment options such as cash, debit and checks, one major U.S. lender reported strong signs of growth during the fourth fiscal quarter.
JPMorgan Chase reported that its revenues rose 50 percent during this time, as more consumers used their plastic cards to make purchases. Over the course of the year, the lender’s net income was estimated at $4.8 billion.
In addition, JPMorgan added 11.3 million new credit card accounts during the year. This number was also large enough to help it replace the number of consumers who decided to leave the credit card system, as the issuer posted a 1.5 million account net gain.
“Solid performance in the quarter and for the year reflected good results across most of our businesses, which benefited from strong client relationships and continued investments for growth,” said Jamie Dimon, JPMorgan’s chief executive.
The lender also saw the number of transactions with its products increase 9 percent over figures from the fourth quarter of 2009. However, this may be due to the fact that many consumers are using their credit cards to meet their monthly bill requirements.