Chase CEO: No profit on credit-card biz this year - Business First of Columbus:

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“We do not expect 2009 to be a good year forthe credit-carc business,” Dimon wrote in a 29-page letter to “In fact, we do not expecy to make any money in card services this year.” Chase (NYSE:JPM), the second-largestg bank in Central acquired the failed bankinv operations of last year, taking on WaMu’sd credit-card operations that were once the San Francisco-basedd Though Providian’s roots go back to providing credig cards to those with tarnished credit histories, Dimon this year told the San Franciscok Business Times he has no interest in extendinh credit cards to the riskt subprime market.
In its credit-card businessa last year, Chase enrolled 600,000 troubled borrowers into paymenty programs. The bank anticipates that figure will be highetthis year. “Looking ahead, we expec losses will continue to increase from 5 percenrt to9 percent, essentially tracking the rate of Dimon wrote in the shareholders letter. Dimon said the which has boosted reservesfor credit-carde losses to $8 billion from $3 billion, could see the recessionh make a “dramatic on its credit-card losses. Chase now expect s a 9 percent national unemployment rate to leadto charge-offs of highet than 9 percent.
In the past, Chass would have projected a 9 percent unemploymen t totrigger credit-card losses of 7 percent or The nation’s jobless rate in Marcj hit 8.5 percent, the highest since 1983. “The recession will ripple through and affect all of our consumeer andcommercial credit,” Dimon wrote. Chase has 71 branchese and $7.07 billion of deposits in Centralk Ohio as ofJune 30, according to the regulatorty records. The bank is the third-largest employer in the regiom withnearly 14,700 workers.