Earnings Roundup: eBay, U.S. Bancorp, JPMorgan Chase (Jan. 17, 2013)
Jan. 17, 2013
PayPal parent company eBay, JP Morgan Chase and U.S. Bancorp recently released fourth-quarter financial results. eBay Inc. reported net revenue of $4 billion for the fourth quarter ended Dec. 31, 2012, a 17.6 percent increase compared with $3.4 billion during the same period a year earlier. The San Jose, Calif.-based company also reported net income of $751 million for the quarter, compared with $2 billion in 2011. The 62 percent decrease in net income reflects a one-time gain from the company’s sale of Skype recorded in the fourth quarter of 2011. PayPal added nearly 2 million accounts a month in the fourth quarter, ending the year with approximately 122.7 million registered accounts, an increase of 15.4 percent compared with 106.3 million in the prior year. PayPal’s mobile payment volume reached nearly $14 billion in 2012, up more than 250 percent over the prior year, and 40 percent higher than eBay predicted last July.
U.S. Bancorp yesterday reported net income of $1.42 billion for the fourth quarter of 2012, a 5.2 percent increase compared with $1.35 billion a year earlier. The Minneapolis-based bank also reported record-setting full-year net income of $5.6 billion, a 14.3 percent increase from $4.9 billion in 2011. U.S. Bancorp’s payment services division, which includes its stored value card products, contributed $318 million to the company’s Q4 profit, a decrease of $2 million compared to 2011’s fourth quarter. The year-over-year decrease primarily was due to higher total noninterest expense and an increase in the provision for credit losses, partially offset by higher total net revenue, according to the company.
JPMorgan Chase & Co. reported net income for the fourth quarter of 2012 of $5.7 billion, compared with net income of $3.7 billion in the fourth quarter of 2011. Net income for 2012 was a record $21.3 billion, compared with $19 billion for the prior year. Q4 net income for the company’s card, merchant services and auto business was $840 million, a decrease of $211 million compared with the prior year. The decrease was driven by higher provision for credit losses and higher noninterest expense. Merchant processing volume was $178.6 billion, up 17 percent from the prior year, and total transactions processed were 8.2 billion, up 21 percent from the prior year.