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 fourth quarter (4Q/16) while YOY growth in outstandings (OUT) remained in the mid-single digits, according to CardData.
Delinquency (DEL) and charge-offs (CO) jumped upward YOY as the account base remains stagnant and overall attrition is persistent. Delinquency also increased sequentially (QTQ) and YOY in the fourth quarter.
Pre-tax net revenue plunged 38.1% YOY driven by Card new account origination costs, most notably the Sapphire Reserve Visa card. Revenue for the fourth quarter was $821 million, compared to $1099 million in the prior quarter and $1326 million for the year ago quarter. For 2016, Chase averaged $1091 million per quarter.
End-of-Period (EOP) U.S. credit card outstandings edged up by 7.8% YOY, compared to 5.0% YOY growth for 3Q/16. At the end of 4Q/16 Chase had $141.8 billion in U.S. EOP credit card outstandings, compared to $133.4 billion at the end of the prior quarter and $131.5 billion at the end of the year ago quarter.
Average U.S. credit card outstandings edged up by 6.7% YOY, compared to 5.1% YOY growth for 3Q/16. During the fourth quarter Chase had $136.2 billion in U.S. average credit card outstandings, compared to $132.7 billion for 3Q/16 and $127.6 billion for 4Q/15.
Chase U.S. credit card PDV, excluding business cards, increased 13.5% YOY to $148.5 billion, compared to $139.2 billion for 3Q/16 and $130.8 billion for 4Q/15.
Early-stage and late-stage delinquency crept north in the fourth quarter, mirroring industry trends.
Chase U.S. consumer credit card early-stage (30+ day) delinquency increased 18 basis points (bps) YOY and 8 bps Quarter-To-Quarter (QTQ) for 4Q/16. The issuer reported a 30+ day delinquency ratio of 1.61% for 4Q/16, compared to 1.53% for 3Q/16 and 1.43% for 4Q/15.
U.S. consumer credit card late-stage (90+ day) delinquency increased . . . .