Bank card issuers continue to improve credit quality metrics

4Q10 financial results for the leading bank card issuers showed that they are continuing to improve charge-off and delinquency rates. In fact, these rates are now beginning to return to normalized levels, which should mean that issuers will now turn attention to driving revenue growth, which has declined significantly over the past two years.

The following are 4Q10 charge-off rates for the leading U.S. bank card issuers (as reported in company financials):

Issuer 4Q10 Charge-Off Rate Y/Y Change Q/Q Change
SunTrust 5.65% -286 bps -116 bps
U.S. Bank 6.65% -24 bps -46 bps
PNC 7.05% -198 bps +64 bps
Chase (legacy Chase) 7.08% -156 bps -98 bps
Fifth Third 7.12% -169 bps -56 bps
Capital One 7.28% -231 bps -95 bps
Wells Fargo 8.21% -240 bps -85 bps
Bank of America 8.24% -364 bps -88 bps
Citi (Citi-Branded Cards-North America)


– 50 bps -102 bps