Wednesday, July 20, 2011

Advertise on ePayment News

Why Advertise on ePayment News? 

ePayments News is a content rich, comprehensive online information portal designed to keep payments and banking industry professionals informed throughout the day with frequent delivery of the latest news and developments that matter most.

Why is Payment News the Best Online Marketing Resource for the Payments Industry?
Put Simply: We've been doing it since 2005 and we outrank many other Payment Industry News sites on Alexa. That means we get more hits. and our traffic is constantly growing.  That means more value for your advertising dollar.  Oh, one more reason.  When you advertise with ePayment News your company will get more value for your money.  Why is that?  Your ads will also run on our sister site, which provides breaking payment industry news 24 hours per day.  There are more reasons:  

• ePayment News delivers exceptional value by providing daily news, headlines, and features selected from myriad breaking news stories at absolutely no cost to readers.
• ePayment News acts as an independent unbiased independent source as we continually monitor the payments and banking industries. Starting with the PIN (Payments Industry News) Debit Blog, we have actively published industry related stories since 2007.  
• ePayments News delivers extensive breaking news, as well as unique content, analysis, views, and shared research to create an information rich community designed for payments and banking professionals, technology providers, investors, and members of the media. 
• ePayment New engages the industry by offering a powerful open platform that allows industry-leading professionals to engage directly with the market by sharing commentary and content related to company and product developments.
• ePayment News offers organized and readily searchable content, making it an excellent reference for anyone seeking information on a broad range of payment and banking related topics. 
• ePayment News provides this content free of charge as a service to banking and payment professionals and stakeholder s, allowing our advertisers  to easily  reach a highly qualified group of professionals that have buying power

Advertising on ePayment News provides tremendous business-to-business brand visibility.

We encourage you to leverage the unrivaled value of ePayment News and contribute to 
the success of your business!  For more information please email: 

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Mazooma™ Unveils Micropay-in-a-Box™ Solution for Discover® Digital Goods Merchants

The flick of a virtual switch turns on lowest interchange payment option—online banking.
TORONTO--(BUSINESS WIRE)--Mazooma’s new micropay-in-a-box solution has as much as a 71% reduction in merchant fees for digital content merchants.“With Mazooma’s micropay-in-a-box solution, Discover merchants selling digital content can enjoy instant, online payments, as well as ease of implementation, less technical resources and consolidated settlement and reporting”
With 25% year-over-year growth, digital content is currently the fastest-growing eCommerce sector, driving an explosion in small-ticket transaction volumes. However, merchants selling digital music, games, books, and videos are underserved by traditional payment options. Mazooma’s new micropay solution fills this void, enabling these merchants to sell their goods faster, safer, and more cost-effectively.
Mazooma’s micropay-in-a-box solution is available to Discover’s direct merchants using the Centinel® Universal Merchant Platform through CardinalCommerce Corporation. For a merchant using Centinel, it is as simple as placing the Mazooma payment button on their checkout page to support a new payment option that enables consumers to pay using their online banking account. For these merchants, there is no implementation required and no changes to existing settlement and reporting from Discover. It is a turnkey solution that makes it easy for merchants to offer the new Mazooma payment brand.
An online banking-based payment solution, Mazooma connects consumers directly to their bank account from the merchant’s checkout page, enabling secure, instant payments for online purchases. Other features of Mazooma’s micropay solution include a processing fee of 1.5% + $0.05 per transaction without the need to aggregate transactions, and a streamlined checkout in two clicks, with no offline sign-up process.
“With Mazooma’s micropay-in-a-box solution, Discover merchants selling digital content can enjoy instant, online payments, as well as ease of implementation, less technical resources and consolidated settlement and reporting,” says Farhan Ahmad, General Manager, Prepaid & Director of Emerging Payments at Discover. “At Discover, we aim to provide our merchants with more payment choices, and we believe the relationship with Mazooma will do just that.”
“We’re pleased to be able to leverage Centinel to extend the Mazooma payment option across the Discover Network of retail merchants,” said Janet Kapostasy, Vice President, Financial Institution Services, CardinalCommerce Corporation. ”The micropay solution addresses a key pain point in the digital goods vertical.”
About Mazooma
Mazooma is an innovative, leading edge online payment provider for the digital payments space. The company offers a patented payment system that combines the security of online banking with the speed of a simple checkout process. By connecting consumers directly to their online banking from the merchant’s checkout page, Mazooma enables safe, instant cash payments for online purchases. Serving the 72.5 million American households that actively use online banking, Mazooma currently supports 75% of all consumer bank accounts in the U.S. The company was launched in 2009 and has offices in Miami, New York, Chicago, and Toronto. For more information, visit
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers personal and student loans, online savings accounts, certificates of deposit and money market accounts through its Discover Bank subsidiary. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit
About CardinalCommerce
CardinalCommerce Corporation is the global leader in enabling authenticated payments, secure transactions, and alternative payment brands for both e-commerce and mobile commerce.
Cardinal Centinel® is authentication software for merchants which enables payment brands such as Verified by Visa, MasterCard®SecureCode, Amazon Payments, Bill2Phone, Bill Me Later®, ClickandBuy®, Cred-Ex®, Ebates, eBillme, eLayaway, Google Checkout, Green Dot®MoneyPak®, Mazooma, Moneta®, Moneybookers, MyECheck, NACHA® Secure Vault Payments (SVP), NYCE®SafeDebit, OneTouch Online Purchasing, Paymate, PayPal,paysafecard, RevolutionCard, SafetyPay, TeleCheck®, Ukash, and more to a network of thousands of merchants and merchant service providers.
Cardinal’s mobile commerce platform, Cardinal MAX, makes it simple for retailers to sell and market products through the mobile channel. Cardinal's proprietary and easily deployable technology provides consumers, merchants, credit/debit card issuers, and processors the ability to conduct authenticated Internet, wireless and mobile transactions safely and securely.
Cardinal’s 2IDENTIFITM Platform enables a Financial Institution to authenticate its’ customers, for eCommerce transactions using Verified by Visa or MasterCard SecureCode, or for secure access to online banking applications. The complimentary 2IDmobileTM service enables a customer’s mobile phone to become a token, creating a strong dynamic one-time use number for authentication, or can deliver the dynamic one-time number.
Headquartered in Cleveland, Ohio, with facilities in the United States, Europe, and Africa, Cardinal services a worldwide Customer base. For more information,


Mazooma Media Contact:
Walker Sands Communications
Jackie Lampugnano, 312-546-4127
CardinalCommerce Media Contact:
CardinalCommerce Corporation
Janet L. Kapostasy, 877.352.8444
Vice President Financial Institution Services

What to Do Next: A Post-Durbin Checklist for Financial Institutions

What to Do Next: A Post-Durbin Checklist for Financial Institutions

View more documents from First Data

Aberdeen Group Projects Increased Demand for Smart Cards to Continue

New Study Commissioned by ActivIdentity, part of HID Global Points to Sharp Drop in OTP Tokens Deployment; Identifies Smart Cards as Effective Solution to Current Outbreak of Security Breaches

Fremont, Calif., Jul 20, 2011 - ActivIdentity Corporation, a global leader in secure identity solutions, part of HID Global, today announced that Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), has published a new market alert titled “The Case for Smart Cards.” The study commissioned by ActivIdentity and HID Global explored the RSA SecureID breach and subsequent industry shift toward smart cards. The resulting paper identifies the breach as the primary market driver for this trend along with the erosion of traditional network perimeters, the weakness of traditional username and password authentication methods, and the potential compromise of privileged systems and accounts. 

According to two recent Aberdeen research studies – "The Zen of Network Access" (December 2010) and the "Q1 2011 Aberdeen Business Review" (May 2011) – there was a noticeable shift in market trends in the area of end-user authentication, showing a decreased use of OTP by a factor of 2.5- to 3-times, whereas the demand for smart cards increased by a factor of 1.5- to 2-times. As noted in the “The Case for Smart Cards” paper, the multi-factor authentication provided by smart cards makes elevation of access privileges (as seen in the RSA attack) considerably harder, and also inhibits untrustworthy insiders. 

"The Case for Smart Cards” is available for free download on the ActivIdentity and HID Global website: and It outlines the following key factors and benefits that are driving the smart card market opportunity:
  • The multi-purpose nature of smart-cards.
  • Advancement in credential management systems that support the management of smart cards and card-based credential throughout their lifecycle.
  • Greater vendor-integration and out-of-the-box support for essential capabilities, such as certificate authorities, hardware security modules and integration of card-based authentication with applications, networks, endpoints, servers, physical access management systems, etc.
  • Greater flexibility and choice in terms of deployment models.

"Recent solution provider enhancements make smart cards more accessible to a broader market, especially small- and medium-sized organizations,” said Derek Brink, vice president and research fellow for IT Security at Aberdeen Group. “At the same time, the RSA breach and other headlines are raising industry awareness and prompting fresh consideration of strategies for end-user authentication." 

"The study makes it clear that the old, perimeter-based defense model that has been used for decades, is no longer effective by itself,” said Julian Lovelock, ActivIdentity’s senior director of product marketing. “Use at work of personal mobile devices, sophisticated malware and popularity of social networks are making it increasingly difficult to keep the perimeter secure. Companies are realizing that they need to implement strong authentication to secure access, even for users on the internal network" 

ActivIdentity recently revealed best practices for avoiding enterprise security breaches and issued recommendations outlining three keys to success in addressing them.

About Aberdeen Group, a Harte-Hanks Company 
Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions. 

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 854-5200, or to learn more about Harte-Hanks, call (800) 456-9748.

About ActivIdentity
ActivIdentity Corporation is a global leader in intelligent identity assurance, providing solutions to confidently establish a person’s identity when interacting digitally. For more than two decades the company’s experience has been leveraged by security-minded organizations in large-scale deployments such as the U.S. Department of Defense, Nissan, and Saudi Aramco. The company’s customers have issued more than 100 million credentials, securing the holder’s digital identity. ActivIdentity is headquartered in Silicon Valley, California. ActivIdentity is part of HID Global, an ASSA ABLOY Group brand. For more information, 
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Chase and United Unveil United MileagePlus® Explorer Card; New Card Provides Exclusive Airline Privileges and Unmatched Travel Benefits
Card Offers First Checked Bag Free, Priority Boarding, Complimentary Club Passes and More Reward Seat Redemption Options
WILMINGTON, Del.--(BUSINESS WIRE)--Today, Chase Card Services, a division of JPMorgan Chase & Co. [NYSE: JPM] and United Airlines, a wholly owned subsidiary of United Continental Holdings, Inc. [NYSE: UAL], introduced the all-new United MileagePlus® Explorer Card. The Card offers unique and unmatched benefits that enhance the Cardmember travel experience at the airport and beyond. MileagePlus Explorer Cardmembers receive special privileges when traveling on United including first checked bag free*, priority boarding, passes to United airport club lounges and the ability to redeem MileagePlus miles for any seat, any time, on any United flight, with no restrictions and no blackout dates. If seats are available for sale, they can be redeemed by Cardmembers at the Standard Award level. In addition, miles earned in the MileagePlus program by Explorer Cardmembers will not expire as long as program members are MileagePlus Explorer Cardmembers.
“If you fly United Airlines, this card should be in your wallet”
“The MileagePlus Explorer Card is the only card in the industry to offer these premium benefits and special privileges when traveling on United,” said David Gold, general manager, Chase Card Services. “We’ve designed this Card for those looking to enhance their entire travel experience and it is truly unmatched in the marketplace in the access it delivers and value that it offers to United customers.”
The MileagePlus Explorer Card also offers benefits that extend through the entire travel experience, including access to The Luxury Hotel and Resorts Collection from Chase, which offers special Cardmember-only amenities at over 700 properties in the U.S. and around the world. Beyond these special travel privileges, the MileagePlus Explorer Card also offers enhanced travel and purchase protection coverage and a suite of benefits that cater to the lifestyle needs of the affluent customer. This includes a dedicated concierge service available 24/7 to help with such things as simple gift ideas to restaurant and local entertainment recommendations anywhere in the world.
In addition, Explorer Cardmembers will have the opportunity to attend private, once-in-a-lifetime experiences through a new benefit called Inside Access from Chase. Cardmembers will enjoy exclusive access to the best in concerts, Broadway performances and culinary events; the opportunity to meet and mingle with industry notables; and even get rare, behind-the-scenes views into the world of professional sports and high fashion. Events will be offered throughout the year and can be previewed at
These MileagePlus Explorer Card benefits are also available on the Continental Airlines OnePass Plus Card. The OnePass Plus card will be offered through 2011, and Cardmembers will continue to enjoy full benefits in 2012. In addition, a MileagePlus Explorer Business Card is available.
“If you fly United Airlines, this card should be in your wallet,” said Tom O’Toole, United’s senior vice president and chief operating officer of Mileage Plus Holdings, LLC. “Our partnership with Chase enables our MileagePlus members to earn even more miles with their everyday spending that can be redeemed for travel on United, with other Star Alliance member carriers, and for hotels, car rental and merchandise. United and Chase are committed to providing our loyal customers with superior products and a suite of services that enable and enhance travel from beginning to end.”
United MileagePlus Explorer Cardmember benefits include:
  • First checked bag free* – Cardmembers and up to one traveling companion will receive their first checked bag free – worth up to $100 per roundtrip.
  • Priority boarding – Beginning July 23, 2011, Cardmembers will be able to board United and Continental flights immediately after elites and prior to general boarding, so they have earlier access to overhead space and can relax as the rest of the plane boards.
  • United airport club passes – Each year, Cardmembers will receive two United airport club passes on their membership anniversary date – a $100 value.
  • Upgrades on Reward tickets for Elites – MileagePlus Elite customers who are also Cardmembers are eligible to receive upgrades on domestic reward tickets in the same way as with purchased tickets beginning in early 2012.
  • Redeem MileagePlus miles for any seat, any time, on any United flight – If seats are available for sale, they can be redeemed at the Standard Award level. There are no restrictions or blackout dates – a benefit that will be reserved for Cardmembers and Elite travelers beginning in early 2012.
  • Double miles on United tickets – Cardmembers will earn two miles per $1 spent on tickets purchased with the Card from United and Continental.
  • Miles bonus – 10,000 additional bonus miles with $25,000 or more in eligible spend each calendar year.
  • Miles do not expire – Miles earned in the MileagePlus program by Explorer Cardmembers will not expire as long as program members are MileagePlus Explorer Cardmembers.
Miles earned by Cardmembers can be redeemed through the MileagePlus program for travel on United, the world’s leading airline, and also for flights on all 27 Star Alliance carriers, hotel stays, car rentals, brand-name merchandise and more.
Additional MileagePlus Explorer Cardmember benefits include:
  • Earn one mile for every $1 spent on all other purchases.
  • The Card is accepted at more than 30 million locations worldwide, more than double the amount of merchants that accept American Express+, creating more opportunities to earn miles for all purchases.
  • A comprehensive suite of travel protection benefits including trip cancelation and trip delay coverage, auto rental collision damage waiver on a primary basis, roadside assistance and 24/7 travel emergency services.
  • Purchase protection benefits including extended protection, price protection, purchase protection and return protection.
New MileagePlus Explorer Cardmembers will earn 25,000 MileagePlus bonus miles after their first use of the Card. In addition, Cardmembers can earn 5,000 additional bonus miles after adding an authorized user and using the MileagePlus Explorer Card within two months of opening the account. The $95 annual fee for the new MileagePlus Explorer Card will be waived for the first year on a promotional basis. New MileagePlus Explorer cards will be exclusively Visa Cards.
For more information about the United MileagePlus Explorer Card or to apply, visit or call 1-888-744-6899.
Chase and United are also extending the following benefits to customers with United MileagePlus Select, Access, Club, Visa Signature and Business Cards, and Continental OnePass Plus, Presidential Plus, Visa Signature and Business Cards:
  • Redeem MileagePlus miles for any seat, any time, on any United flight exclusively for United Cardmembers beginning in 2012. If seats are available for sale, they can be redeemed at the Standard Award level.
  • Redeem OnePass miles for any seat, any time, on any Continental flight for Continental Cardmembers beginning August 1, 2011. If seats are available for sale, they can be redeemed at the EasyPass Reward level. This is a new benefit for Continental Cardmembers.
  • Inside Access from Chase
  • The Luxury Hotel and Resorts Collection
  • Miles do not expire as long as program members are United or Continental Cardmembers.
* Fees for additional/oversized/overweight bags will apply. Purchase of ticket(s) with MileagePlus® Explorer Card required. See for details.
+ Acceptance rates based on global, not domestic, data. Source: The Nilson Report, Issue 950, June 2010.
About United Continental Holdings, Inc.
United Continental Holdings, Inc. (NYSE: UAL) is the holding company for both United Airlines and Continental Airlines. Together with United Express, Continental Express and Continental Connection, these airlines operate an average of 5,765 flights a day to 377 airports on six continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark Liberty, San Francisco, Tokyo and Washington, D.C. United and Continental are members of Star Alliance, which offers 21,000 daily flights to 1,160 airports in 181 countries. United and Continental’s more than 80,000 employees reside in every U.S. state and in many countries around the world. For more information about United Continental Holdings, Inc., go to For more information about the airlines, see and or follow on Twitter and Facebook.
About Chase
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. Chase serves consumers and small businesses through 5,200 bank branches, 16,200 ATMs, mortgage offices, and online and mobile banking as well as through relationships with auto dealerships and schools and universities. Chase also has issued more than 90 million credit cards. More information about Chase is available

Digital River World Payments Receives Payment Services Directive License in Europe

Image representing Digital River as depicted i...Image via CrunchBase
MINNEAPOLIS--(BUSINESS WIRE)--Digital River, Inc. (NASDAQ: DRIV), a leading provider of global e-commerce solutions, announced that its Digital River® World Payments™ solution has received an approved payment institute license in accordance with the European Commission’s Payment Services Directive (PSD) regulatory initiative. The PSD regulatory initiative provides a recognized set of rules for all payment services in the European Union (EU) to make cross-border payments easy, efficient and secure for consumers. The European Commission grants PSD licenses to payment service companies who comply with a distinct set of compliance requirements. The Digital River World Payments solution was granted a PSD license by the Swedish Financial Supervisory Authority.
“The PSD license combined with Digital River’s more than 15-years of payments experience and industry-leading fraud technologies reinforces Digital River World Payments’ standing as one of the most trustworthy payment solutions available in the EU.”
“Receiving the PSD license further strengthens Digital River World Payments’ market leadership position,” said Souheil Badran, senior vice president and general manager of Digital River World Payments. “The PSD license combined with Digital River’s more than 15-years of payments experience and industry-leading fraud technologies reinforces Digital River World Payments’ standing as one of the most trustworthy payment solutions available in the EU.”
The Digital River World Payments solution – part of Digital River’s comprehensive portfolio of global e-commerce services – enables online merchants to manage the entire payment lifecycle through a single connection to multiple payment services. These services include checkout page optimization, real-time fraud detection, solutions to manage PCI exposure and currency risk, as well as advanced back-office reconciliation services and business intelligence tools. Digital River World Payments offers local and relevant payment options in more than 190 countries and over 170 transaction and display currencies. To learn more about Digital River’s full-service global and domestic payments programs, visit the Digital River World Payments website.
About Digital River
Digital River, Inc., a leading provider of global e-commerce solutions, builds and manages online businesses for software and game publishers, consumer electronics manufacturers, distributors, online retailers and affiliates. Its multi-channel e-commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximize online revenues as well as reduce the costs and risks of running an e-commerce operation. The company’s comprehensive platform offers site development and hosting, order management, fraud management, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.
Founded in 1994, Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South America. For more details about Digital River, visit the corporate website, call +1 952-253-1234, or follow the company on Twitter.

Digital River is a registered trademark of Digital River, Inc. All other company and product names are trademarks, registrations or copyrights of their respective owners.

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FBI arrests 14 over PayPal cyber-attack

The FBI Seal where the circle of stars represe...Image via Wikipedia20 July, 2011 - 10:42

According to Finextra, the FBI has arrested 14 people accused of involvement in last year's cyber-attack on PayPal's Web site by 'Anonymous' in retaliation for the company's closure of a donation account for Wikileaks.  read more
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Isis Network Deals Pave the Way for Banks

Isis, the wireless carrier-led mobile payments venture, just crossed off an integral item on its to-do list in signing Visa Inc., American Express Co. and MasterCard Inc.
Isis executives said Tuesday that its contractual agreements with the three networks will allow consumers to load their networks' payment cards into a mobile wallet application scheduled for field trials next year. Specifically, Isis is licensing the networks' contactless payments specifications for use in its software. Isis initially had a relationship with Discover Financial Services as its only card network. The deals with the other card brands "effectively lay the framework for any of the networks to get their cards, their payment applications, into the mobile wallet," Jaymee Johnson, the head of marketing for Isis, said in an interview on Tuesday.   However, Isis has yet to announce agreements with any card-issuing banks. This is another key item it will have to check off its list to accomplish widescale adoption...  read more at BTN

PNC Reports Strong Second Quarter Net Income of $912 Million and $1.67 Diluted EPS

Net Income For First Six Months Up 18 Percent Over First Half 2010

Growth in Customer Relationships Accelerates

PITTSBURGHJuly 20, 2011 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported net income of $912 million, or $1.67 per diluted common share, for the second quarter of 2011 compared with net income of $832 million, or $1.57 per diluted common share, for the first quarter of 2011 and net income of $803 million, or $1.47 per diluted common share, for the second quarter of 2010. The company earned net income of $1.7 billion, or $3.24 per diluted common share, for the first six months of 2011 compared with $1.5 billion, or $2.15 per diluted common share, for the first six months of 2010.
“PNC continued to deliver strong results in the second quarter, reflecting our accelerating sales momentum and the value of our franchise,” said James E. Rohr, chairman and chief executive officer. “Our earnings in a soft economy benefited from improving credit quality and exceptional customer revenue growth. We are confident in our ability to execute our business model and growth strategies which are designed to drive shareholder value.”

First Data to Release Second Quarter 2011 Financial Results

ATLANTA--(BUSINESS WIRE)--On Wednesday, Aug. 3, 2011, First Data Corporation will release its second quarter 2011 financial results. The release will be available at
http://www.firstdata.comThe company will host a conference call and webcast on Wednesday, Aug. 3, 2011, at 10 a.m. EDT to review the second quarter 2011 financial results. Ray Winborne, First Data chief financial officer, will lead the call.
To listen to the call via teleconference, dial 800-798-2884 (U.S.) or 617-614-6207 (outside the U.S.), pass code 60834668. The call will be webcast on the “Investor Relations” section of the First Data website at and a slide presentation to accompany the call will also be available on the website.
A replay of the call will be available through Aug. 17, 2011, at 888-286-8010 (U.S.) or 617-801-6888 (outside the U.S.), pass code 30436950, and via webcast at
Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive customer revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction.

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U.S. Bancorp Reports $1.2 Billion Net Income for the Second Quarter of 2011

http://www.usbank.comAchieves Total Net Revenue of $4.7 Billion; Earns Over $1.2 Billion in Net Income
MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bancorp (NYSE: USB) today reported net income of $1,203 million for the second quarter of 2011, or $.60 per diluted common share. Earnings for the second quarter of 2011 were driven by year-over-year growth in total net revenue and a reduction in the provision for credit losses. Highlights for the second quarter of 2011 included:
  • Strong new lending activity of $52.7 billion (11.2 percent increase on a linked quarter basis) during the second quarter including:
    • $16.1 billion of new commercial and commercial real estate commitments
    • $21.6 billion of commercial and commercial real estate commitment renewals
    • $2.0 billion of lines related to new credit card accounts
    • $13.0 billion of mortgage and other retail originations
  • Growth in average total loans of 4.0 percent (3.5 percent excluding acquisitions) over the second quarter of 2010
    • Growth in average total commercial loans of 8.0 percent (7.8 percent excluding acquisitions) over the second quarter of 2010
    • Growth in average total loans of .6 percent over the prior quarter (.5 percent excluding acquisitions), including average total commercial
      loan growth of 2.8 percent
    • Quarterly average commercial and commercial real estate commitments increased 4.4 percent over the prior quarter
  • Significant growth in average deposits of 14.2 percent (9.6 percent excluding acquisitions) over the second quarter of 2010, including:
    • 22.1 percent growth in average noninterest-bearing deposits (21.1 percent excluding acquisitions)
    • 15.1 percent growth in average total savings deposits (8.8 percent excluding acquisitions)
  • Total net revenue growth of 3.8 percent over the second quarter of 2010
  • Net interest income growth of 5.6 percent over the second quarter of 2010, driven by:
    • Average earning assets growth of 12.2 percent, including anticipated growth in the investment securities portfolio (33.5 percent)
    • Exceptionally strong growth in lower cost core deposit funding
    • Net interest margin of 3.67 percent for the second quarter of 2011, compared with 3.90 percent for the second quarter of 2010, and 3.69 percent for the first quarter of 2011 (decline year-over-year principally due to higher investment securities portfolio balances and cash balances at the Federal Reserve)
  • Strong year-over-year growth in payments-related fee income, driven by:
    • Higher credit and debit card revenue (7.5 percent), corporate payment products revenue (3.9 percent) and merchant processing services revenue (5.6 percent)
  • Managed expense levels
    • Total noninterest expense increase of 2.0 percent year-over-year
    • Efficiency ratio improved to 51.6 percent compared with 52.4 percent in the second quarter of 2010
  • Net charge-offs and nonperforming assets declined on a linked quarter basis. Provision for credit losses was $175 million less than net charge-offs.
    • Net charge-offs declined 7.2 percent from the first quarter of 2011
    • Nonperforming assets (excluding covered assets) decreased 6.2 percent from the first quarter of 2011 (7.4 percent including covered assets)
    • Early and late stage loan delinquencies as a percentage of ending loan balances declined in all loan categories on a linked quarter basis
    • Allowance to nonperforming assets (excluding covered assets) was 159 percent at June 30, 2011, compared with 154 percent at March 31, 2011, and 146 percent at June 30, 2010
    • Allowance to period-end loans (excluding covered loans) was 2.83 percent at June 30, 2011, compared with 2.97 percent at March 31, 2011, and 3.18 percent at June 30, 2010
  • Strong capital generation continues to strengthen capital position; ratios at June 30, 2011 were:
    • Tier 1 common equity ratio of 8.4 percent
    • Tier 1 capital ratio of 11.0 percent
    • Total risk based capital ratio of 13.9 percent
    • Tier 1 common ratio of 8.1 percent under anticipated Basel III guidelines

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