Credit card metrics continue to improve, though forbearance still a factor (NYSE:COF)

Christel Deskins

      2020   Company Ticker Type August July June 3-month average Capital One COF delinquency 2.23% 2.44% 2.74% 2.47%     charge-off 3.74% 3.82% 4.15% 3.90% American Express AXP delinquency 1.20% 1.40% 1.50% 1.37%     charge-off 2.50% 2.60% 2.60% 2.57% JPMorgan Chase JPM delinquency 0.95% 0.99% 1.07% […]

      2020  
Company Ticker Type August July June 3-month average
Capital One COF delinquency 2.23% 2.44% 2.74% 2.47%
    charge-off 3.74% 3.82% 4.15% 3.90%
American Express AXP delinquency 1.20% 1.40% 1.50% 1.37%
    charge-off 2.50% 2.60% 2.60% 2.57%
JPMorgan Chase JPM delinquency 0.95% 0.99% 1.07% 1.00%
    charge-off 2.18% 2.03% 2.06% 2.09%
Synchrony SYF core delinquency 2.60% 2.90% 3.10% 2.87%
    adjusted charge-off 4.30% 4.80% 5.10% 4.73%
Discover Financial DFS delinquency 1.92% 2.03% 2.17% 2.04%
    charge-off 3.62% 3.42% 3.65% 3.56%
Alliance Data Systems ADS delinquency 4.50% 4.70% 4.30% 4.50%
    charge-off 6.50% 7.20% 7.40% 7.03%
Citigroup C delinquency 1.33% 1.43% 1.47% 1.41%
    charge-off 2.75% 2.42% 2.63% 2.60%
Bank of America BAC delinquency 1.08% 1.16% 1.30% 1.18%
    charge-off 2.11% 2.12% 2.15% 2.13%
    Avg. delinquency 1.98% 1.89% 2.21% 2.03%
    Avg. charge-off 3.46% 3.55% 3.72% 3.58%

Note: Be aware that accounts that have entered forbearance agreements may not advance in delinquency, and ultimately charge-off, in the same timeframe than if the forbearance had not been granted. As a result, the delinquency and charge-off rates since March may be lower than they would have been without the forbearance programs offered as a result of the COVID-19 pandemic.

Those programs may start to roll off soon, though. AXP closed its Customer Pandemic Relief Program for new enrollees in the U.S. as of June 2020.

On a related note, Odeon Capital’s Dick Bove recently upgraded both Citi and Capital One to Hold from Sell as he doesn’t expect loan losses to rise as much as the market seems to be pricing into a number of bank stocks.

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