trending Market Intelligence /marketintelligence/en/news-insights/trending/f1sjf2qbrpqks7xql6tfag2 content esgSubNav
In This List

Delinquencies fall, charge-offs mixed at card issuers in April

Blog

Latin American and Caribbean Market Considerations Blog Series: Focus on LGD

BLOG

Banking Essentials Newsletter: June Edition

Case Study

กรณีศึกษา A Bank Takes its Project Finance Assessments to a New Level

Blog

Financial Institutions Factor Transition Risk into Climate-Related Stress Testing


Delinquencies fall, charge-offs mixed at card issuers in April

Major U.S. credit card issuers saw delinquencies drop in April, but charge-off trends were more mixed.

Delinquencies fell for all six card companies, but four recorded higher charge-off rates for the month.

Among the card issuers in this analysis, Capital One Financial Corp. registered the largest month-over-month decrease in delinquencies, falling 11 basis points to 1.90%. Citigroup Inc. and Discover Financial Services saw their delinquency rates tick down 8 basis points each to 1.53% and 1.72%, respectively. Delinquency rates declined 6 basis points for both American Express Co. and Bank of America Corp., landing at 0.95% and 1.63%, respectively. JPMorgan Chase & Co.'s delinquency dropped by 5 basis points to 1.17%.

SNL Image

Bank of America charge-offs rose the most, climbing 15 basis points to 2.96% in April from 2.81% in March. American Express' charge-off rate increased to 1.74% from 1.61%, Capital One's charge-off rate rose to 2.60% from 2.51% and Citigroup's charge-off rate ticked up slightly to 2.80% in April from 2.78% in March.

Discover and JPMorgan posted lower charge-off rates. Discover's charge-off rate declined to 2.36% from 2.50%, and JPMorgan's charge-off rate ticked down slightly, to 2.63% from 2.65%.

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 in April to 2.3% from 2.2% in March. However, the delinquency rate for the segment declined to 1.3% from 1.4%.

The net write-off rate in the U.S. small-business segment based on principal only increased to 1.9% in April from 1.8% in March. The delinquency rate for the U.S. small-business segment decreased to 1.2% from 1.3%.

Capital One's domestic card segment had a 30-plus-day performing delinquency rate of 3.33% in the month of April. The annualized net charge-off rate for the segment was 5.04%.

Of the six major credit card issuers, all but one reported a month-over-month decrease in portfolio yield in April.

Bank of America's portfolio yield declined to 15.46% in April from 17.30% in March, Capital One's worsened to 20.84% from 24.15%, Citigroup's decreased to 18.06% from 19.19%, Discover's declined to 17.69% from 19.57%, and JPMorgan's edged down to 19.33% from 19.50%.

American Express was the only card issuer that reported a month-over-month increase in its portfolio yield, which jumped to 21.27% in April from 19.87% in March.

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.