Credit Card Delinquencies and Charge-offs Dip in June

Major credit issuing banks reported last week that charge-offs and delinquencies in their credit card portfolios eased in June, almost across the board.

Bank of America said its card accounts more than 30 days past due fell to 6.16 percent in June from 6.39 percent in May. The bank’s charge-off rates improved dramatically, to 11.98 percent in June from 13.33 percent in May.

Capital One’s credit card delinquency rate inched down to 4.79 percent in June from 4.8 percent in May. The company’s charge-off rate fell to 9.28 percent in June from 9.48 percent in May.

Citigroup’s delinquency rate fell to 5.44 percent in June from 5.59 percent in May, but its chargeoff rate increased to 11.46 percent in June, from 11.16 percent in May.

Discover Financial Services said that its credit card delinquency rate fell to 4.81 percent from 4.95 percent in May. Its charge-off rate fell to 8 percent from 8.82 percent.

JPMorgan Chase’s delinquency rate fell to 4.13 percent in June from 4.22 percent in May. Its charge-off rates for the month also fell, to 8.38 percent from 8.95 percent.

JPMorgan Chase & Co Chief Executive Jamie Dimon sounded the alarm for the credit card issuing industry when he commented in the company’s second quarter earnings call that it was too early to say how much more improvement consumer credit grantors could expect this year.