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October 18, 2010

Charge-offs, delinquencies still falling in US

Charge-offs and delinquencies among the US largest credit card issuers reached their lowest levels in the last 14 months.

By Verdict Staff

Charge-offs and delinquencies among the US’ largest credit card issuers reached their lowest levels in the last 14 months.

Monthly data collected by analysts at investment bank Keefe, Bruyette & Woods showed average industry charge-offs declined by 75 basis points (bps) last month compared to August, falling to 7.9 percent. Delinquencies – loans which are 30 days past their due date payment – fell 2 bps to reach 4.61 percent.

The master trust data, a bellwether for the credit card industry in the US and abroad, indicates that US issuers remain in good shape despite regulatory and economic headwinds. Figures produced by analysts at Keefe, Bruyette and Woods includes all of the country’s largest issuers and showed the average charge-off rate was 169 basis points down on the same period last year. The total delinquency rate has declined by 109 basis points since September 2009.

KBW’s figures include data provided by American Express, Bank of America, Capital One, JPMorgan Chase Issuance Trust, Citibank and Discover.

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