Average delinquency rate climbs for 6 major card issuers for 4th straight month

The average 30-plus-day delinquency rate for the six major US credit card issuers ticked up sequentially for the fourth consecutive month in October, an S&P Global Market Intelligence analysis of the companies' latest Form 10-D filings shows.

The average rate for American Express Co., Bank of America Corp., Capital One Financial Corp., Citigroup Inc., Discover Financial Services and JPMorgan Chase & Co. was 1.42% in October, up 11 basis points year over year.

Bank of America, Capital One, Citigroup and Discover Financial saw their 30-plus day delinquency rates go up sequentially, while American Express and JPMorgan's was flat month over month.

'Pockets of pressure'

Only JPMorgan recorded a decline in 30-plus day delinquency rate on a year-over-year basis in October. Discover Financial logged the biggest increase at 27 basis points, with Capital One next at 17 basis points. American Express recorded the smallest increase, at 6 basis points.

"I'd say consumers, on the whole, are in good shape compared to most historical benchmarks, but I do think there are pockets of pressure that will persist until we fully work through this cycle essentially of inflation and elevated interest rates," Capital One Founder, President and CEO Richard Fairbank said during an earnings call in October.

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Average net loss rate continues dip

The average annualized net loss rate for the six card issuers in October was 2.11%, marking the second month-over-month drop since August.

Discover Financial logged the biggest decrease in net charge-off rate to 2.07% in October from 2.63% in September. Bank of America and Citigroup also had lower net loss rates sequentially, but American Express, Capital One and JPMorgan recorded higher net loss rates.

Only JPMorgan and Discover booked year-over-year decreases in net loss rates. American Express, Bank of America, Capital One and Citigroup recorded year-over-year increases in net charge-offs.

Average portfolio yield improves sequentially

The six card issuers' average portfolio yield improved sequentially and year over year in October at 24.75%.

American Express, Citigroup and JPMorgan booked slightly lower portfolio yields sequentially in October, while Bank of America, Capital One and Discover countered the downward trend with higher yields sequentially.

On a year-over-year basis, American Express posted the biggest increase in portfolio yield of 153 basis points. Bank of America and Capital One also logged higher portfolio yields year over year. However, Citigroup, Discover and JPMorgan booked lower yields year over year, with Citi recording the biggest drop.