Bank card delinquencies increased 26 basis points (bps) to 2.74% of all accounts in the third quarter, but remain well below their 15-year average of 3.68%.
The research by the American Bankers Association (ABA) found delinquencies rose in five and fell or stayed unchanged in six of the 11 individual loan categories compared to the previous quarter.
According to CardData.com, early stage delinquency (30+ days) among the nation’s top 6 issuers rose sharply by 15 bps sequentially in the third quarter to 1.89%, and up 12 bps above last year’s 1.77%.
According to the Federal Reserve the 30+ day delinquency rate, seasonally adjusted (SA), among the top 100 U.S. banks for the third quarter increased 10 bps sequentially, and up 19 bps year-on-year (YOY).
On a not seasonally adjusted basis (NSA), the delinquency rate among the top 100 U.S. banks for 3Q/16, soared 24 bps QTQ and up 19 bps YOY.
Meanwhile, the ABA says the composite ratio, which tracks delinquencies in eight closed-end installment loan categories, rose 6 bps to 1.41% of all accounts. This figure is identical to the third quarter 2015 composite ratio and remains well below the 15-year average of 2.20%. The ABA report defines a delinquency as a late payment that is 30 days or more overdue.
Home-related delinquencies fell in two of three categories. Home equity loan delinquencies fell 11 bps to 2.59% of all accounts, dipping further below their 15-year average of 2.85%. Home equity line of credit delinquencies fell 5 bps to 1.16% of all accounts, just one basis point above their 15-year average of 1.15%. Property improvement loan delinquencies rose 3 bps to 0.94% of all accounts.
The third quarter 2016 composite ratio is made up of the following eight closed-end loans. All figures are seasonally adjusted based upon the number of accounts.
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