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Card issuers see delinquencies rise, charge-offs tick down in January

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Card issuers see delinquencies rise, charge-offs tick down in January

Delinquencies at major card issuers increased moderately across the board in January.

American Express Co. and Bank of America Corp. each saw their delinquency rates increase by 4 basis points to 1.01% and 1.70%, respectively. Capital One Financial Corp.'s delinquency rate ticked up 3 basis points to 2.10%, Citigroup Inc.'s rate climbed by 7 basis points to 1.60%, Discover Financial Services' delinquency rate rose by 9 basis points to 1.81%, while JPMorgan Chase & Co.'s increased by just 1 basis point to 1.21%.

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Aside from Discover, whose charge-off rate increased by 4 basis points to 2.17%, major credit card issuers saw charge-offs decline in the first month of 2018.

American Express' charge-off rate dropped by 13 basis points to 1.28%, and Citi's rate plunged by 41 basis points to 2.17%. Bank of America's charge-off rate inched down by 2 basis points to 2.58%, Capital One's charge-off rate declined by 9 basis points to 2.26%, while JPMorgan's charge-off rate was cut by 3 basis points to 2.40%.

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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, decreased to 1.7% in January from 2.0% a month earlier, while the delinquency rate for the segment rose to 1.4% from 1.3%.

The net write-off rate in the U.S. small-business segment, based on principal only, dropped to 1.4% in the month. Additionally, the delinquency rate for the U.S. small-business segment improved slightly to 1.3% from 1.2%.

Capital One's domestic card segment had a 30-plus-day performing delinquency rate of 4.11% in January. The annualized net charge-off rate for the segment was 5.33%.

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

Bank of America's portfolio yield dropped to 15.66% from 16.50%, Capital One's decreased to 20.25% from 21.90%, Citigroup's portfolio yield was cut to 17.70% from 19.03%, Discover's dropped to 17.58% from 19.26% and JPMorgan's portfolio yield fell to 17.18% from 19.13% in January.

American Express was the only issuer whose portfolio yield increased in January, as it rose to 22.13% from 21.45%.

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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 S&P Global Market Intelligence platform.

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