Average early stage delinquency (30+ days) for the fourth quarter (4Q/16), among the nation’s Top 4 issuers, increased 10 basis points (bps) sequentially, and rose year-on-year (YOY) by 18 bps. Three of the Top 4, reported increases from the prior quarter, according to CardData.
Citibank, the only issuer to report a small downtick of 5 bps, is skewed by its rapidly growing outstandings from the acquisition of the American Express/Costco cobrand deal.
The increase in the delinquency ratio is driven primarily by Capital One, a specialist in near-prime and sub-prime credit card accounts, with a 4Q/16 gain of 27 bps over 3Q/16.
The nation’s largest issuer, Chase, reported delinquency increased to 1.61% in 4Q/16, compared to 1.53% for 3Q/16 and 1.43% for 4Q/15, an 8 bps gain sequentially.
The nation’s third largest issuer, BofA, reported delinquency increased to 1.73% in 4Q/16, compared to 1.64% for 3Q/16 and 1.76% for 2Q/15, an 9 bps gain sequentially.
The nation’s fastest growing issuer, Capital One, reported delinquency soared to 3.95% in 4Q/16, compared to 3.68% for 3Q/16 and 3.39% for 4Q/15, an 27 bps rise sequentially.
The nation’s fourth largest issuer, Citibank, reported delinquency decreased to 1.57% in 4Q/16, compared to 1.62% for 3Q/16 and 1.58% for 4Q/15, a 5 bps drop sequentially.