Credit card delinquency rates continued to slowly climb toward prepandemic levels in September, according the the average of seven banks monitored by Seeking Alpha. The average rate of 2.13% rose from 2.05% in August and from 1.89% in July.

For some perspective, though, the average delinquency rate was 2.83% in September 2019, before COVID-19 prompted massive fiscal relief programs that led to the ultra-strong credit measures since then.

The biggest month-over-month jump in delinquency occurred at Bread Financial (NYSE:BFH), which saw a 40 basis point increase to 5.7%, followed by Capital One (NYSE:COF), which saw a 21 bp boost, and Synchrony Financial (NYSE:SYF), with a 20 bp increase.

The average net charge-off rate, though, took a breather from increasing in September. That average rate of 2.09% slipped from 2.13% August, but still was higher than 2.02% in July. By comparison, the average net charge-off level three years earlier was 3.43%.

The biggest increase in net charge-offs for the month, was Capital One (COF), with a 21 bp rise to 2.23%. Meanwhile, charge-off rates fell at three of the banks in the list, with Bread Financial (BFH) seeing its NCO fall 30 bps and Synchrony (SYF) registering a 10 bp dip.

Looking back to 2019, Bread Financial’s (BFH) credit metrics are the closest to its prepandemic level. Delinquency rate of 5.7% in September 2022 compares with 5.9% three years earlier. NCO rate of 5.0% compares with 5.3% in 2019.

2022
Company Ticker Type September August July 3-month average
Capital One COF delinquency 2.97% 2.76% 2.56% 2.66%
charge-off 2.23% 2.02% 2.36% 2.19%
American Express NYSE:AXP delinquency 0.90% 0.80% 0.70% 0.75%
charge-off 0.80% 0.80% 0.80% 0.80%
JPMorgan NYSE:JPM delinquency 0.69% 0.66% 0.66% 0.66%
charge-off 1.15% 1.15% 1.02% 1.09%
Synchrony SYF delinquency 3.30% 3.10% 2.90% 3.00%
adjusted charge-off 3.00% 3.10% 3.00% 3.05%
Bread Financial BFH delinquency 5.70% 5.30% 4.80% 5.05%
charge-off 5.00% 5.30% 4.50% 4.90%
Citigroup NYSE:C delinquency 0.85% 0.82% 0.79% 0.81%
charge-off 1.12% 1.33% 1.19% 1.26%
Bank of America NYSE:BAC delinquency 0.92% 0.88% 0.85% 0.87%
charge-off 1.31% 1.24% 1.27% 1.26%
Avg. delinquency 2.19% 2.05% 1.89% 2.08%
Avg. charge-off 2.09% 2.13% 2.02% 2.04%

Note that Discover Financial (DFS) doesn’t report monthly credit metrics for the last month of each quarter. For Q3, the company reported credit card delinquency rate of 2.11%, up 35 basis points from the prior quarter, and its net charge-off rate of 1.92% fell 9 basis points from the prior quarter.

Earlier in the month, SA contributor Seeking Profits put a Conviction Buy on Capital One (COF), saying consumer credit fears are overblown



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