Charge-offs among the nation’s top four U.S. issuers inched up six basis points (bps) year-on-year (YOY) to 2.74%, but down significantly 32 bps sequentially for the third quarter (3Q/16). All four issuers reported sharply lower credit card losses from the prior quarter. A huge decline in Citibank losses, related to its Costco card acquisition, drove the sequential drop for the peer group.
For the top four issuers (Chase, BofA, Capital One, Citibank), average charge-offs were 2.74% for 3Q/16, compared to 3.06% for 2Q/16 and 2.68% for 3Q/15.
The Chase 3Q/16 charge-offs ratio decreased by 19 bps from 2Q/16 and up 10 bps from 3Q/15. Chase reported a U.S. credit card charge-off ratio of 2.51% for 3Q/16, compared to 2.70% for 2Q/16, and 2.41% for 3Q/15.
Bank of America 3Q/16 charge-offs dipped 21 bps from the prior quarter and lower by one bps from one year ago. BofA reported a U.S. credit card charge-off ratio of 2.45% for 3Q/16, compared to 2.66% for 2Q/16, and 2.46% for 3Q/15.
Capital One 3Q/16 charge-offs sunk 33 bps from 2Q/16 and up 66 bps from 3Q/15. Cap One reported a U.S. credit card charge-off ratio of 3.74% for 3Q/16, compared to 4.07% for 2Q/16, and 3.08% for 3Q/15.
Citibank 1Q/16 charge-offs declined by 57 bps from 2Q/16 and down by 50 bps from 3Q/15. Citi reported a U.S. credit card charge-off ratio of 2.25% for 3Q/16, compared to 2.82% for 2Q/16, and 2.75% for 3Q/15.
AVERAGE TOP 4 ISSUER CHARGE-OFFS
Source: Chase; Bank of America; Capital One; Citibank; CardData
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