Bank Credit Card Results Bode Well for Visa, MasterCard: Analyst

US Bancorp (USB), one of the largest credit card issuers based on purchase volume, posted strong results in its credit card division on Tuesday. That, along with strong results from JPMorgan Chase (JPM)and Citigroup (C), could mean Visa (V) and MasterCard (MA) also had a particularly profitable quarter, wrote Jefferies & Co. analyst Jason Kupferberg. [...]

US Bancorp (USB), one of the largest credit card issuers based on purchase volume, posted strong results in its credit card division on Tuesday. That, along with strong results from JPMorgan Chase (JPM)and Citigroup (C), could mean Visa (V) and MasterCard (MA) also had a particularly profitable quarter, wrote Jefferies & Co. analyst Jason Kupferberg.

“USB’s year over year credit volume growth of 9.8% accelerated 310 basis points from 4Q11′s 6.7%. We believe USB credit card purchase volume growth trends were in line with solid 1Q results previously reported by JPM and C,” he wrote.

USB’s debit card results also offer evidence that Visa could have a strong quarter, Kupferberg wrote. The bank’s debit transactions grew 8.4% year over year.

“USB’s mostly Visa card portfolio makes these results especially relevant to Visa versus MasterCard, we believe,” he writes.

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