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Takeaway: Unsecured credit quality remained benign and resilient yet again in January, confirming our outlook for continued strength through 2021.

Below we summarize the release of the latest monthly charge-off and delinquency statistics for the seven largest credit card issuers in the United States.

Hedgeye Summary;

  • The average DQ rate improved by -55 bps y/y while the median DQ rate improved by -14 bps y/y
    • All seven issuers in our sample saw lower delinquency rates in January; however, Bank of America saw a notable slowdown in the rate of improvement this month.
  • The average NCO rate improved by -96 bps y/y while the median NCO rate improved by -48 bps y/y
    • All seven issuers in our sample saw lower NCO rates in January

Why It Matters:

We monitor this data for signs of credit quality inflection by the major credit card operators. Thus far, in spite of extremely elevated unemployment rates, the credit quality of the major card issuers remains largely benign. In fact, delinquency rates remain lower than they were a year ago across all seven issuers. 

Credit Card Asset Quality Update | January 2021 - Summary 

Note, our summary table captures both first and second derivative movements in charge-off and delinquency rates over the last twelve months, with the former indicated using colored text and the latter indicated using a color gradient.

Supplementary Materials:

Hedgeye Summary Table

To download a PDF copy, please click HERE

Chart Book

To download our Chart Book, including detailed summary charts and tables at both the group and issuer level, please click HERE

Example: Discover Financial, ΔY/Y in +30 DQ Rates

Credit Card Asset Quality Update | January 2021 - 12 15 2020 4 58 55 PM