The average U.S. 30+ day delinquency rate among the nation’s four largest issuers declined 11 basis points (bps) sequentially, to a record low of 1.96% for the first quarter, compared to 2.07% in the prior quarter and 2.16% one-year ago. The top 100 U.S. banks posted a 27 bps decline from 1Q/14.
All of the top four issuers reported sequential and annual declines in the 30+ day delinquency ratio including Chase, Capital One (COF), and Citibank (CITI). COF posted the largest sequential decline of 35 bps.
The Chase 30+ day delinquency rate decreased 3 bps sequentially, and down 20 bps from one-year ago. Chase posted a 30+ day delinquency rate of 1.41% for Q1/15, compared to 1.44% in Q4/14, and 1.61% for Q1/14.
The BofA 30+ day delinquency rate decreased 4 bps sequentially, and down 33 bps from one-year ago. BofA posted a 30+ day delinquency rate of 1.81% for Q1/15, compared to 1.85% in Q4/14, and 2.14% for Q1/14.
The COF 30+ day delinquency rate decreased 35 bps sequentially, and down 10 bps from one-year ago. COF posted a 30+ day delinquency rate of 2.92% for Q1/15, compared to 3.27% in Q4/14, and 3.02% for Q1/14.
The CITI 30+ day delinquency rate decreased 4 bps sequentially, and down 19 bps from one-year ago. CITI posted a 30+ day delinquency rate of 1.68% for Q1/15, compared to 1.72% in Q4/14, and 1.87% for Q1/14.
According to the Federal Reserve, the 30+ day delinquency rate (not seasonally adjusted) for the top 100 U.S. banks decreased 2 bps sequentially, but down 25 bps from one-year ago. The top 100 U.S. banks posted a 30+ day delinquency rate of 2.16% for Q4/14, compared to 2.18% in Q3/14, and 2.41% for Q4/13. RAM Research projects the 30+ day delinquency ratio for the Top 100 U.S. Banks for the first quarter will be 2.03%,
DELINQUENCY (30+ DAY) HISTORICAL
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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