trending Market Intelligence /marketintelligence/en/news-insights/trending/beilmrwdlefots1e8cmr7g2 content esgSubNav
In This List

Delinquencies, charge-offs edge up at card issuers in February

Video

S&P Capital IQ Pro | Powering Your Edge

Podcast

Street Talk Episode 81: Amid strong recovery, Banc of California hearing more M&A chatter

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage

Blog

Banking Essentials Newsletter: September Edition


Delinquencies, charge-offs edge up at card issuers in February

Major card issuers mostly saw slightly worsening credit trends in February as delinquencies and charge-offs were, on the whole, higher for the month.

American Express Co.'s delinquency rate increased by 4 basis points to 1.05%, while Bank of America Corp.'s delinquency rate edged up by 2 basis points to 1.72%. Discover Financial Services and JPMorgan Chase & Co. saw their delinquency rates tick up by 3 basis points each to 1.84% and 1.24%, respectively.

Delinquency rates of Capital One Financial Corp. and Citigroup Inc., on the other hand, dropped by 2 basis points each to 2.08% and 1.58%, respectively.

SNL Image

Charge-off rates among major card issuers remained mixed in the month. American Express' charge-off rate jumped by 54 basis points to 1.82%, and Citi's spiked by 40 basis points to 2.57%. Bank of America's charge-off rate climbed by 20 basis points to 2.78% and Discover's ticked up by 2 basis points to 2.19%.

Capital One's charge-off rate remained flat at 2.26%, while JPMorgan's declined by 12 basis points to 2.28%.

SNL Image

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, increased to 2.2% in February from 1.7% in January, while the delinquency rate for the segment remained flat at 1.4%.

The net write-off rate in the U.S. small-business segment, based on principal only, jumped to 1.7% from 1.4%. The delinquency rate for the U.S. small-business segment worsened slightly, rising to 1.4% from 1.3%.

Capital One's domestic card segment had a 30-plus-day performing delinquency rate of 3.92% in February. The annualized net charge-off rate for the segment was 5.16%.

Five of the six major card issuers recorded month-over-month increases in their portfolio yields.

American Express' portfolio yield increased to 23.81% from 22.13%, Capital One's rose to 20.90% from 20.25%, Citigroup's portfolio yield moved to 18.02% from 17.70%, Discover's climbed to 18.58% from 17.58% and JPMorgan's portfolio yield increased to 19.43% from 17.18% in February.

Bank of America was the only issuer whose portfolio yield declined, falling to 15.39% from 15.66%.

SNL Image

SNL Image

Did you enjoy this analysis? Click here to set alerts for future Data Dispatches.

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 S&P Global Market Intelligence platform.

S&P Dow Jones Indices and S&P Global Market Intelligence are owned by S&P Global Inc.