Sharp year-over-year increases in credit card and auto loan delinquency ratios continued in the fourth quarter of 2022.

At 2.88%, the auto loan delinquency ratio was 80 basis points higher than the fourth quarter of 2021, according to S&P Global Market Intelligence data. Sequentially, the ratio increased by 49 basis points, and also crossed the 2.86% ratio recorded in the fourth quarter of 2019.

The credit card loan delinquency ratio of 2.45% increased by 74 basis points year over year and 28 basis points sequentially.

About 33.3% of the respondents in an S&P Global Market Intelligence 2023 U.S. Bank Outlook Survey expect personal auto loans to have lower credit quality within the next 12 months.

YOY early-stage delinquencies jump

Early-stage delinquencies in total loans and leases, or loans and leases past due between 30 days and 89 days, increased by 23.64% year over year to $59.34 billion in the fourth quarter. It was also 15% higher than the preceding quarter of 2021.

Loans and leases past due 90 days or more also increased by approximately 48.69% year over year to $16.79 billion in the 2022 fourth quarter.

Restructured loans and leases as a proportion of total loans and leases decreased by 3 basis points to 0.32% year over year. However, the amount of restructured loans and leases increased by 1.21% during the quarter to $39.17 billion, compared with $38.70 billion in the year-ago period.

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Slight uptick in CRE loan delinquency ratio

In commercial loans, delinquencies in commercial real estate loans and multifamily loans ticked up slightly, following a decline in the previous quarter.

The delinquency ratio in CRE loans increased 8 basis points to 0.79% in the 2022 fourth quarter. During the quarter, 567 U.S. banks exceeded the 2006 CRE loan concentration guidance, the highest number in two years.

The multifamily loans delinquency ratio climbed 8 basis points to 0.32%.

Delinquency ratios in all other categories declined quarter over quarter, including commercial and industrial loans, which declined by 7 basis points to 1.04%, following a sequential increase in the 2022 third quarter.

Home loan quality continues to improve

The delinquency ratio in one- to four-family loans at U.S. banks was at 2.02% in 2022, compared to 2.70% a year ago and 3.36% in 2020.

The total delinquent one- to four-family loan balance in 2022 was $55.49 billion, down from $68.04 billion in the same period a year ago.

Among the top 10 banks by total delinquent one- to four-family loan balance in the fourth quarter of 2022, U.S. Bancorp had the highest year-over-year increase at $711 million. Wells Fargo & Co. remained the top U.S. bank in terms of total delinquent balance in the category, at $9.61 billion. Wells Fargo topped this category in the 2021 fourth quarter as well, with a delinquent balance of $12.82 billion.