How Have Outstanding Card Balances For The Largest U.S. Card Lenders Changed Over The Last 5 Quarters?

+14.21%
Upside
58.32
Market
66.61
Trefis
C: Citigroup logo
C
Citigroup

Total outstanding card balances for the 6 largest U.S. card lenders has fluctuated noticeably over the last five quarters – increasing between Q2 2015 and Q4 2015 before slumping in Q1 2016. The card loan portfolio was just under $580 billion for Q2 2016.

Card_QA_BalanceChange_16Q2

The figures above are taken from quarterly earnings reports for individual card issuers, and represent the average card balance over a particular quarter.

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The Q1 slump can be partially explained by the seasonal nature of card balances, as card usage peaks in the last quarter (especially the holiday season) following which people pay off a bulk of their card balances in the first quarter. Another factor that contributed to the sharp decline in Q1 2016 was American Express’s decision to move its Costco and Jetblue card portfolios to held-for-sale. The Costco portfolio returned as a part of the total figure for the second quarter, though, as Citigroup acquired it from AmEx in June.

As card spending continues to grow and as economic conditions improve, we expect card balances for each of these issuers to grow steadily in the future.

See the links below for more information about the largest U.S. commercial banks:

Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment/ ask questions on the comment section
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for JPMorgan ChaseBank of America | Citigroup | Capital OneAmerican Express | Discover

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