Chase, the nation’s largest bank credit card issuer, continued to post double-digit year-on-year (YOY) growth in purchase dollar volume (PDV) in the third quarter (3Q/16) while YOY growth in outstandings (OUT) remained in the mid single digits. Delinquency (DEL) and charge-offs (CO) edged upward YOY as the account base remains stagnant and overall attrition is persistent. Delinquency also increased sequentially (QTQ) in the third quarter.
Pre-tax net revenue declined 17.7% YOY to $1099 million, compared to $1253 million in the prior quarter and $1335 million for the year ago quarter. For 2015, Chase averaged $1373 million per quarter.
End-of-Period (EOP) U.S. credit card outstandings edged up by 5.0% YOY, compared to 4.4% YOY growth for 2Q/16. At the end of 3Q/16 Chase had $133.4 billion in U.S. EOP credit card outstandings, compared to $131.6 billion at the end of the prior quarter and $127.0 billion at the end of the year ago quarter.
Average U.S. credit card outstandings edged up by 5.1% YOY, compared to 3.1% YOY growth for 2Q/16. During the third quarter Chase had $132.7 billion in U.S. average credit card outstandings, compared to $128.4 billion for 2Q/16 and $126.3 billion for 3Q/15.
Chase U.S. credit card PDV, excluding business cards, increased 10.0% YOY to $139.2 billion, compared to $136.0 billion for 2Q/16 and $126.6 billion for 3Q/15.
Early-stage and late-stage delinquency crept north in the third quarter, mirroring industry trends.
Chase U.S. consumer credit card early-stage (30+ day) delinquency increased 15 basis points (bps) YOY and 13 bps Quarter-To-Quarter (QTQ) for 3Q/16. The issuer reported a 30+ day delinquency ratio of 1.53% for 3Q/16, compared to 1.40% for 2Q/16 and 1.38% for 3Q/15.
U.S. consumer credit card late-stage (90+ day) delinquency increased 9 bps YOY and 5 bps QTQ for 3Q/16. The issuer reported at 90+ day delinquency ratio of 0.75% for 3Q/16, compared to 0.70% for 2Q/16 and 0.66% for 3Q/15.
The U.S. consumer credit card charge-off (CO) ratio was rose 10 bps YOY but declined 19 bps QTQ for 3Q/16. The issuer reported a charge-offs ratio of 2.51% for 3Q/16, compared to 2.70% for 2Q/16 and 2.41% for 3Q/15.
Continuing last year’s trend, Chase gross accounts (GAC) slipped 3.2% YOY to an estimated 60.9 million. (Chase no longer reports GAC as of 1Q/16). For the previous quarter Chase had an estimated 60.2 million GAC and a reported 62.9 million one-year ago.
Chase active accounts (AAC) with sales activity decreased 1.6% YOY to an estimated 32.5 million. (Chase no longer reports AAC as of 1Q/16). For the previous quarter Chase had an estimated 32.3 million GAC and a reported 33.0 million one-year ago.
Exceeding last year’s pace, Chase opened up 2.7 million accounts in 3Q/16, compared to 2.7 million in 2Q/16 and 2.0 million for 3Q/15.
Based on last year’s reported results Chase acquires more than 70% of new account via online marketing.
For additional analysis, charts and graphs on Chase’s 3Q/16 performance access CardData.
For a complete archive of more than 70,000 articles published since 1995 search the CardFlash.com library.