What Are The Card Charge-Off Rates For The Largest U.S. Card Issuers?
American Express reported the lowest card charge-off rate among all major U.S. card issuers at 1.4%, while the figure for the card-focused bank Capital One was the highest among these lenders at over 4%.
Individual charge-off figures above are taken from the latest quarterly earnings releases for these card issuers. The weighted average charge-off rate represents the average card charge-off rate for these card issuers as weighed by their outstanding card balances. The average figure for the U.S. card industry is taken from data compiled by the Federal Reserve Bank of St. Louis here.
- Capital One Stock Gained 44% In The Last 6 Months, What’s Next?
- Up 40% Since The Beginning Of 2023, How Will Capital One Stock Trend After Q4 Earnings
- Up 25% Since The Beginning Of 2023, Will Capital One Stock Continue To Rally?
- Capital One Stock Gained 14% YTD And Outperformed The Estimates In Q3
- What To Expect From Capital One Stock?
- Capital One Missed The Consensus In Q1, What’s Next?
Notably, card charge-off rates have nudged higher across the industry over the last two quarters after hovering around unusually low levels in 2014-15. This marks the ongoing normalization in consumer credit quality, which improved considerably due to low unemployment levels and steady economic growth since 2011. That said, the particularly high charge-off rate for Capital One over recent quarters could be indicative of more relaxed card lending criteria from the card-focused banking giant compared to its peers. The impact of a sharp increase in card charge-offs on our estimate for Capital One’s share price can be understood by making changes to the chart below, which captures the bank’s card loan provisions as a percentage of its total outstanding loan portfolio.
See the links below for more information about the U.S. banking industry:
- What Was The Market Share Of The Largest U.S. Card Issuers In Terms Of Outstanding Balances For Q2 2016?
- How Have Outstanding Card Balances For The Largest U.S. Card Lenders Changed Over The Last 5 Quarters?
See full Trefis analysis for U.S. Bancorp | Wells Fargo | JPMorgan Chase | Bank of America | Citigroup | Capital One | American Express | Discover
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research