The nation’s third largest Visa and MasterCard issuer continued to struggle in the fourth quarter (4Q/16) with sluggish outstandings (OUT) and purchase dollar volume (PDV) growth, but other metrics, remain fairly stable, according to CardData.
Pre-tax net income edged down 1.8% YOY to $1290 million in 4Q/16, compared to $1218 million in the prior quarter and $1313 million for the year ago quarter. For 2016, BofA averaged $1234 million per quarter.
End-of-Period (EOP) U.S. credit card outstandings slipped up by 3.0% YOY, compared to a 1.0% YOY increase for 3Q/16. At the end of 4Q/16 BofA had $92.3 billion in U.S. EOP credit card outstandings, compared to $88.8 billion at the end of the prior quarter and $89.6 billion at the end of the year ago quarter.
Average U.S. credit card outstandings YOY growth was up slightly for 4Q/16. During the fourth quarter BofA had $89.5 billion in U.S. average credit card outstandings, compared to $88.2 billion for 3Q/16 and $88.6 billion for 4Q/15.
BofA U.S. credit card PDV, excluding business cards, increased 3.7% YOY to $61.0 billion, compared to $57.6 billion for 3Q/16 and $58.8 billion for 4Q/15.
Early-stage and late-stage delinquency continued to improve in the third quarter, besting industry trends among the Top 4 issuers.
BofA U.S. consumer credit card early-stage (30+ day) delinquency decreased 3 basis points (bps) YOY and up 9 bps Quarter-To-Quarter (QTQ) for 4Q/16. The issuer reported a 30+ day delinquency ratio of 1.73%, compared to 1.64% for 3Q/16 and 1.76% for 4Q/15.
U.S. consumer credit card late-stage (90+ day) delinquency declined 3 bps YOY and up 6 bps QTQ for 4Q/16. The issuer reported a 90+ day delinquency ratio of 0.85%, compared to 0.79% for 3Q/16 and 0.88% for 4Q/15.
U.S. consumer credit card charge-off (CO) ratio was flat YOY and up 7 bps QTQ for 4Q/16. BofA reported a charge-offs ratio of 2.52% for 4Q/16, compared to 2.45% for 3Q/16 and 2.52% for 4Q/15.
BofA’s U.S. consumer credit card gross interest yield (YLD) improved both YOY and QTQ. For the fourth quarter BofA’s YLD was . . . .