The average 90 day credit card delinquency ratio, among the nation’s Top 4 issuers, jumped 10 basis points (bps) sequentially, and up three bps year-on-year (YOY) for the fourth quarter (4Q/18). Late stage (90+ day) delinquency, the precursor of charge-offs, also rose by six bps among the peer group in 4Q/18. Early stage delinquency (30-89 days) is likewise rising among the Top 100 banks.
Setting New Highs
For the Top 4 U.S. issuers (Chase, Capital One, Bank of America, Citibank), the average 90+ day delinquency computes to 1.29% for the fourth quarter, 1.19% for the prior quarter, and 1.26% from the year ago quarter, according to figures collected by CardData.
The 4Q/18 rate is the highest in four years for each Top 4 issuer. This is also the third consecutive quarter of 90+ delinquency credit card increase for each of the Top 4 issuers, based on analysis by RAM Research.
Top 4 U.S. Delinquency Stats
The Chase 90+ day delinquency rate increased seven bps sequentially, and flat from one-year ago. Chase posted a 90+ day delinquency rate of 0.92% for 4Q/18, compared to 0.85% for 3Q/18 and 0.92% for 4Q/17.
The Capital One, with 33% of its portfolio sub-prime (< FICO 661) credit card accounts, had an estimated 90+ day delinquency rate increasing four bps sequentially, and up one bps from one-year ago. COF posted an estimated 90+ day delinquency rate of 2.34% for 4Q/18, compared to 2.20% in 3Q/18, and 2.33% for 4Q/17. (COF only reports 30+ day delinquency)
The BofA 90+ day delinquency rate rose nine bps sequentially, and up eight bps from one-year ago. BofA posted a 90+ day delinquency rate of 01.01% for 4Q/18, compared to 0.92% for 3Q/18 and 0.93% for 4Q/17.
The Citibank 90+ day delinquency rate increased eight bps sequentially, and up three bps from one-year ago. Citibank posted a 90+ day delinquency rate of 0.88% for 4Q/18, compared to 0.80% for 3Q/18 and 0.85% for 4Q/17.
Top 4 90+ Day U.S. Credit Card Delinquency Ratio
Chase 90+ Day U.S. Credit Card Delinquency Ratio
Capital One 90+ Day U.S. Credit Card Delinquency Ratio
Bank of America 90+ Day U.S. Credit Card Delinquency Ratio
Citibank 90+ Day U.S. Credit Card Delinquency Ratio
Source: Chase; Capital One; Bank of America; Citibank; RAM Research; CardData