Charge-offs among the nation’s top four U.S. issuers rose 5 basis points (bps) year-on-year (YOY) to 3.08%, and up 21 bps sequentially for the first quarter (1Q/16). All four issuers reported sharply higher credit card losses sequentially. Soaring Capital One losses drove the sequential gain for the peer group.
The Chase 1Q/16 charge-offs ratio inched up by 20 bps from 4Q/15 and flat from 1Q/15. Chase reported a U.S. credit card charge-off ratio of 2.62% for 1Q/16, compared to 2.42% for 4Q/15, and 2.62% for 1Q/15.
Bank of America 1Q/16 charge-offs rose 19 bps from the prior quarter but lower by 13 bps from one year ago. BofA reported a U.S. credit card charge-off ratio of 2.71% for 1Q/16, compared to 2.52% for 4Q/15, and 2.84% for 1Q/15.
Capital One 1Q/16 charge-offs jumped 41 bps from 4Q/15 and up 61 bps from 1Q/15. Cap One reported a U.S. credit card charge-off ratio of 4.16% for 1Q/16, compared to 3.75% for 4Q/15, and 3.55% for 1Q/15.
Citibank 1Q/16 charge-offs edged up by 4 bps from 4Q/15 but down by 28 bps from 1Q/15. Citi reported a U.S. credit card charge-off ratio of 2.83% for 1Q/16, compared to 2.79% for 4Q/15, and 3.11% for 1Q/15.
AVERAGE TOP 4 ISSUER CHARGE-OFFS
3Q/15: 3.08% 4
Source: Chase; Bank of America; Capital One; Citibank
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