CardWeb.com’s CardPixes database of more than 7,000 images today features the secured Bank of America secured Visa Card.
Early stage delinquency (30+ days) edged down by 13 basis points sequentially and year-on-year (YOY), on average to 1.83%, among the nation’s top four U.S. credit card issuers. Citibank appears to be doing the best, dropping 19 basis points in Q2/15, compared to Q1/15.
Charge-offs among the nation’s top 4 issuers dropped 27 basis points (bps) year-on-year (YOY) to 2.97%, and 6 bps sequentially. Bank of America (BofA) has done the best job of reigning in card losses, dropping 43 bps YOY.
The nation’s second largest Visa and MasterCard issuer continues to struggle with sluggish outstandings and purchase dollar volume (PDV) growth, but credit card quality continues to improve. However, Bank of America’s signed up 1.3 million accounts in the second quarter, an 18% year-on-year (YOY) gain, the highest level since Q3/08, but yield fell 22 basis points (bps) in Q2/15.
American consumers continue in the healthy buying mode after ratcheting up revolving credit by $39.1 billion or 5.7% year-on-year (YOY) in May. Total revolving credit for March preliminarily posted $901.0 billion, compared to a revised $899.4 billion for the prior month and $860.9 billion for the prior year.
In today’s CardFlash News Que: BOFA (Euromoney); FAPS (award); BATCHED.COM (EMV); and E-COMMERCE 4 (report).
Yields among the nation’s top 6 credit card issuers are expected to remain healthy in the second quarter with Capital One leading the way with its average yield hovering at 14.2%. Chase and Discover are effectively tied for second place at 12%+.
CardWeb.com’s CardWatch database of more than 57,000 marketing items today features the Bank of America Apple Pay TV Spot.
While the nation’s second largest Visa and MasterCard has been experiencing slight erosion in credit card outstandings year-on-year (YOY), and sluggish growth in purchase dollar volume (PDV), credit card issuance for Bank of America (BofA) remains strong, according to CardData. Forecaster RAM Research expects credit card outstandings to be $89.1 billion for Q2, a slight gain YOY.
The 30+ day delinquency ratio for U.S bank credit cards continues to hover at a 25+ year low for the past two quarters and hit the lowest level since 1986. However, RAM Research projects early stage delinquency will rise 4 basis points for the second quarter.
The charge-off ratio for the top 100 U.S bank credit cards has been slowing edging upward, rising 10 basis points (bps) in the fourth quarter and 1 bps in the first quarter. RAM Research projects charge-offs will rise to 3.02% for the second quarter.
Credit card asset quality will remain strong in 2015, although delinquencies and charge-offs are expected to end the year modestly higher than beginning of year levels. Loan growth and moderate loosening of underwriting standards will contribute to a slow reversion nearer to longer-term averages.