Monday, August 6, 2012

US Big Credit Card Corps 2Q 2012 Earnings Up 9%

There are four large Credit Card Corps that are independent publicly-owned corporations: American Express, Visa, Discover Financial Services, and MasterCard.

In the 2Q 2012, these four Credit Card Corps had Total Pretax Income of a huge $5.2 bil, a nice increase of 9% over the 2Q 2011.

I don't think it is good for the US economy, and fair for that matter, for these Credit Card Corps to generate 9% earnings growth in the current quarter, when so many smaller businesses and individuals, their customers, are suffering so much economically in this same quarter.

In deriving Pretax Income, I excluded large Litigation Settlement Gains and Losses, as well as Visa's Revaluation Gain on its Visa Europe's Put Option.

Below here are the 2Q 2012 Pretax Earnings of these four US Big Credit Card Corps, along with that earned in the prior year's 2Q.

Increase Increase

PTI PTI (Decrease) (Decrease)

2Q 2012 2Q 2011 Amount %

mils $s mils $s mils $s
US Big Credit Card Corps

American Express 1,879 1,545 334 22%
Visa 1,491 1,421 70 5%
Discover Financial Services 867 926 (59) -6%
MasterCard 973 892 81 9%

Total all 4 5,210 4,784 426 9%