The rising pace of credit card delinquency, a precursor of charge-offs,
appears to have lost some of its steam in the first quarter and may
soften further in the second quarter. The sequential increase in
quarterly delinquency (30+ day) among the nation’s top issuers was 15%
in the first quarter, compared to an 18% surge in the fourth quarter.
Among the nation’s top issuers with at least $50 billion in
outstandings, the average delinquency ratio for 1Q/09 was 5.92%,
compared to 5.16% in the fourth quarter and 4.09% for 1Q/08, according
to CardData (www.carddata.com). American Express reported that 30+ day
managed U.S. delinquency edged down to 4.9% in April from 5.1% in March
and 5.3% in February. Capital One reported that 30+ day managed U.S.
delinquency declined to 5.04% in April from 5.08% in March and 5.10% in
February. According to Moody’s “Credit Card Index” the delinquency rate
for all credit card ABS was 6.34% for April compared to 6.40% for March.
According to the latest “Credit Card Index” results from Fitch Ratings
delinquency (60+ days) for “prime” credit card ABS dropped to 4.37% in
April, compared to 4.44% in March. (CF Library 5/15/09; 5/18/09;
Top U.S. Issuers
30+ DAY DELINQUENCY
(minimum $50 billion in outstandings)
Source: CardData (www.carddata.com)