The average U.S. 90+ day delinquency rate among the nation’s four largest issuers declined 12 basis points (bps) to 1.04% during 2014. The top 100 U.S. banks also posted a 13 bps decline last year to 1.08%.
All four issuers of the top issuers reported upticks in the 90+ day delinquency ratio sequentially including Chase, Bank of America (BofA), Capital One (COF), and Citibank (CITI).
The average estimated 90+ day delinquency ratio for the top 100 U.S. banks declined from 1 bps between the third and fourth quarters of 2014.
Due to seasonality, all the ratios will likely rise in the first quarter. Furthermore, there are concerns delinquency rates will rise in 2015 as consumers have been taking on more debt.
The Chase 90+ day delinquency rate increased 3 bps sequentially, but down 10 bps from one-year ago. Chase posted a 90+ day delinquency rate of 0.70% for Q4/14, compared to 0.67% in Q3/14, and 0/80% for Q4/13.
The BofA 90+ day delinquency rate decreased 1 bps sequentially, but down 20 bps from one-year ago. BofA posted a 90+ day delinquency rate of 0.94% for Q4/14, compared to 0.93% in Q3/14, and 1.14% for Q4/13.
The COF estimated 90+ day delinquency rate increased 3 bps sequentially, but down 8 bps from one-year ago. COF posted an estimated 90+ day delinquency rate of 1.64% for Q4/14, compared to 1.61% in Q3/14, and 1.72% for Q4/13. (COF reports 30+ day delinquency only.)
The CITI 90+ day delinquency rate increased 4 bps sequentially, but down 9 bps from one-year ago. CITI posted a 90+ day delinquency rate of 0.88% for Q4/14, compared to 0.84% in Q3/14, and 0.97% for Q4/13.
Based on the 30+ day delinquency rate, reported by the Federal Reserve, the 90+ day delinquency rate (not seasonally adjusted) for the top 100 U.S. banks decreased 1 bps sequentially, but down 13 bps from one-year ago. The top 100 U.S. banks posted an estimated 90+ day delinquency rate of 1.08% for Q4/14, compared to 1.09% in Q3/14, and 1.21% for Q4/13.
RAM Research (ramresearch.com) projects the average 90+ day delinquency rate among the Big 4 issuers will rise 4 bps in the first quarter to 1.08%.
For more data on Big 4 Bank Credit Card Delinquency access CardData®. For information and commentary on Big 4 Bank Credit Card Delinquency visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on Big 4 Bank Credit Card Delinquency are available exclusively through CardWeb.com.®
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