Credit quality for VISA and MasterCards (V/M) issued by the top four U.S. bank credit card issuers continues to improve. The 30+ day delinquency rate in the first quarter declined 16 basis points from the prior quarter and 52 basis points from one-year ago. According to CardData, the average 30+ delinquency rate among the top U.S. issuers for the first quarter stood at 2.64%, compared to 3.16% for Q1/2013 and 2.80% for the final quarter of 2013.
* Chase (JPM), the nation’s leading issuer and the #1 Visa issuer, posted a six basis points sequential decline and a 50 basis points annual decline in 30+ day bank credit card delinquency in the first quarter. For the first quarter, Chase reported a 30+ day bank credit card delinquency rate of 2.41%, compared to 2.47% for Q4/2013 and 2.91% in Q1/2013. The 30 day to 89 day delinquency rate was 1.61% for Q1/2014, 1.67% for Q4/2013 and 1.94% for Q1/2013. The 90+ day delinquency rate was 0.80% for Q1/2014, 0.80% for Q4/2013 and 0.97% for Q1/2013.
* Bank of America (BOFA) posted a 15 basis points sequential decline and a 106 basis points annual decline in 30+ day bank credit card delinquency in the first quarter. BOFA noted the number of 30+ days performing delinquent loans, excluding fully-insured loans, declined across all consumer portfolios from the year-ago quarter, again reaching record low levels in the U.S. credit card portfolio. For the first quarter, BOFA reported a 30+ day bank credit card delinquency rate of 3.24%, compared to 3.39% for Q4/2013 and 4.30% in Q1/2013. The 30 day to 89 day delinquency rate was 2.14% for Q1/2014, 2.25% for Q4/2013 and 2.79% for Q1/2013. The 90+ day delinquency rate was 1.10% for Q1/2014, 1.14% for Q4/2013 and 1.51% for Q1/2013.
* Capital One (COF) does not break-out 30+ day and 90+ day delinquency rates for its U.S. credit card business. However, the nation’s third largest issuer reported its U.S. bank credit card 30+ day delinquency ratio decreased 41 basis points from the prior quarter and 35 basis points from Q1/2013. COF reported a 3.02% 30+ day delinquency rate for the first quarter, compared to 3.43% in the prior quarter and 3.37% in the year ago quarter.
* Citibank (CITI) posted a four basis points sequential decline and a 17 basis points annual decline in 30+ day bank credit card delinquency in the first quarter. CITI noted delinquency rates improved in Citi-branded cards and Citi retail services versus the prior year period and ended the quarter at close to historically low levels. The reserve release in the first quarter 2014 was $269 million, $101 million lower than in the first quarter 2013. For the first quarter, CITI reported a 30+ day bank credit card delinquency rate of 1.87%, compared to 1.91% for Q4/2013 and 2.04% in Q1/2013. The 30 day to 89 day delinquency rate was 0.90% for Q1/2014, 0.94% for Q4/2013 and 0.98% for Q1/2013. The 90+ day delinquency rate was 0.97% for Q1/2014, 0.97% for Q4/2013 and 1.06% for Q1/2013.
_RAM Research projects the U.S. bank credit card 30+ day delinquency ratio will continue to improve for the remainder of 2014, declining by another 22 basis points to 2.42%_
+NOTES:+
* JPM CHASE: Period-end credit card loans included loans held-for-sale of $304 million, $326 million and $310 million at March 31, 2014, December 31, 2013 and September 30, 2013, respectively. These amounts are excluded when calculating delinquency rates and the allowance for loan losses to period-end loans. There were no loans held-for-sale at June 30, 2013 and March 31, 2013.
* BANK OF AMERICA: In addition to the U.S. credit card portfolio in the Consumer & Business Banking segment, the remaining U.S. credit card portfolio is reported in the Global Wealth Management segment.
* CAPITAL ONE: The transfer of the Best Buy Stores, L.P. (“Best Buy”) portfolio to held for sale resulted in an increase in the average yield for Domestic Card and Total Credit Card of 121 basis points and 110 basis points, respectively, in Q3 2013, 168 basis points and 152 basis points, respectively, in Q2 2013 and 107 basis points and 97 basis points, respectively, in Q1 2013. The sale of the Best Buy portfolio was completed on September 6, 2013.
* CITIBANK: Under U.S. GAAP, historical balance sheet information is not restated to reflect discontinued operations. Since the numerator portion of the ratio calculation excludes the income statement items under U.S. GAAP, related to the Credicard discontinued operations, the averages used in the ratio calculations have been adjusted to exclude the Credicard discontinued operations. Includes the impact of adding approximately 13 million credit card accounts and $7 billion of loans related to the previously announced acquisition of Best Buy’s U.S. credit card portfolio in the third quarter of 2013
+RESOURCES:+
_For additional data on Credit Card Delinquency visit CardData®. For historical news and commentary on Credit Card Delinquency visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. Custom RAM Research® projects on Credit Card Delinquency are available exclusively through CardWeb.com.®_
