The nation’s second largest Visa and MasterCard issuer continues to struggle with sluggish outstandings and purchase dollar volume (PDV) growth, but credit card quality continues to improve in the third quarter.. However, Bank of America (BofA) continues to sign up 1.3 million accounts each quarter.
BofA (EOP) U.S. bank credit card outstandings of $88.3 billion for the third quarter (Q3/15). Meanwhile, Purchase Dollar Volume (PDV) for BofA’s U.S. bank credit cards rose 5.0% YOY to $56.5 billion.
BofA noted its U.S. debit card Q3/15 PDV also increased 1.9% YOY to $69.3 billion.
The 30+ day delinquency rate for U.S. bank credit cardholders declined 20 basis points (bps) from Q3/14, but up 3 bps from the prior quarter. For Q3/15, 30+ day delinquency stood at 1.71%, compared to 1.68% in Q2/15 and 1.91% in Q3/14.
The 90+ day delinquency rate also sank by 11 bps YOY and down 2 bps quarter-to-quarter (QOQ) to 0.82%.
In another good sign, bank credit card charge-offs dropped 33 bps from the year ago quarter to 2.46%. Sequentially, charge-offs declined 22 bps.
BofA noted Consumer Banking reported net income of $1.8 billion, up 5 percent from the year-ago quarter. The business saw increased customer activity during the quarter with year-over- year increases in deposits, mortgage originations, credit card issuance and brokerage assets. In addition, the number of mobile banking users increased 14 percent from the year-ago quarter to 18.4 million users.
BOFA CREDIT CARD OUTSTANDINGS
Q3/14: $89.0 billion
Q4/14: $91.9 billion
Q1/15: $87.3 billion
Q2/15: $88.4 billion
Q3/15: $88.3 billion
Source: Bank of America; CardData
For data, background and forecasts on Bank of America: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).