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Charge-offs rise, delinquency rates stable at card issuers in December '16

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Charge-offs rise, delinquency rates stable at card issuers in December '16

Delinquency rates at U.S. credit card issuers changed little in December 2016, while most issuers saw their charge-offs rise during the month.

American Express Co., Bank of America Corp., Capital One Financial Corp. and Citigroup Inc. saw their delinquency rates drop in December 2016 compared with the prior month. Capital One registered the largest decline among the group, though it was just 4 basis points, as its rate fell to 2.10% from 2.14% in November 2016. Delinquency rates at Discover Financial Services and JPMorgan Chase & Co. remained the same from the previous month.

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Among the large issuers, only Citigroup recorded a decrease in its charge-off rate, dropping 39 basis points to 2.53%. JPMorgan and Bank of America had the largest charge-off rate increases. JPMorgan's charge-off rate climbed to 2.25% in December 2016 from 2.12% in November 2016, while Bank of America's rose to 2.54% from 2.41%.

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American Express and Capital One also provide delinquency and charge-off statistics for certain segments within their card businesses.

For American Express' U.S. consumer services segment, the net write-off rate, based on principal only, of 1.5% in December 2016 was unchanged from November 2016. The December 2016 delinquency rate also remained the same from the previous month at 1.1%. The net write-off rate in the U.S. small-business segment, based on principal only, rose to 1.6% in December 2016 from 1.2% in November 2016. The delinquency rate for that segment was 1.1%, the same as in the previous month.

Capital One's domestic card segment had a 30-plus-day performing delinquency rate of 3.95% in December 2016, compared with 4.00% in November 2016. The annualized net charge-off rate for the segment hit 4.89%, a month-over-month increase from 4.78%.

The 30-plus-day performing delinquency rate in Capital One's international card business ticked up to 3.36% in December 2016 from 3.25% in November 2016. The segment's net charge-off rate increased slightly to 3.97% from 3.95%.

Portfolio yields were mixed in December 2016. American Express saw the steepest decline in yield, dropping to 20.18% from 20.60% in November 2016. Bank of America had the most significant increase, with its portfolio yield rising to 16.40% from 15.13%.

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Click here for the underlying data for credit card master trust yields, net charge-offs and delinquencies.

The monthly performance of the trust is reported in the 10-D filing, which can be accessed under the Documents section of a company's briefing book page on the SNL website.