How Have Card Charge-Off Rates For The Largest U.S. Card Issuers Changed Since 2011?
Credit card charge-off rates across banks have improved steadily over the last five years, as loan losses fell from peak levels seen immediately after the economic downturn of 2008. Notably, Bank of America’s card charge-off figures have improved the most in this period, as the banking giant divested a bulk of its card business. On the other hand, Capital One saw an increase in this figure in 2013 as a result of its acquisition of HSBC’s U.S. card unit in late 2012.
The weighted average charge-off rate represents the average card charge-off rate for these card issuers as weighed by their outstanding card balances.
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See the links below for more information about the U.S. banking industry:
- How Much In Domestic and Foreign Loans Do The Largest U.S. Banks Hold?
- What Is The Breakup Of All Outstanding Loans Across U.S. Banks By Loan Type?
- How Much In Domestic and Foreign Deposits Do The Largest U.S. Banks Hold?
- What Is The Current Loan-to-Deposit Ratio For The Largest U.S. Banks?
- Which Are The Largest Card Issuers In The U.S. In Terms Of Outstanding Card Balances?
- How Much Of The U.S. Card Industry Is Accounted For By The Country’s Largest Card Issuers?
- How Have Outstanding Card Balances For The Country’s Largest Card Lenders Changed Since 2011?
- How Do Card Charge-off Rates For The Largest U.S. Card Issuers Compare With The Industry Average?
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 U.S. Bancorp | Wells Fargo | JPMorgan Chase | Bank of America | Citigroup | Capital One | American Express | Discover
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