Most of the six major U.S. card issuers saw their credit card delinquency and net loss rates tick up in January from December, while their average master trust portfolio yield decreased during that time.

The average delinquency rate of the group in January at 0.85% was 36 basis points lower than a year ago, according to S&P Global Market Intelligence data. The average net loss rate was 68 basis points down, while average master trust portfolio yield was 48 basis points higher, compared to January 2021.

Delinquency increase in January

The average credit card delinquency rate in January for American Express Co., Bank of America Corp., Capital One Financial Corp., Citigroup Inc., Discover Financial Services and JPMorgan Chase & Co. was 0.85%, up from 0.81% in December 2021.

Capital One recorded the highest increase in delinquency rate in January at 1.04%, from 0.98% in December.

Bank of America recorded the biggest year-over-year decrease in January at 0.93% from 1.55% a year ago. American Express posted the slightest decrease but still had the lowest rate, at 0.50%.

Varying net loss rates

As more consumers fall behind on their credit card payments, four of the six U.S. card issuers saw card net loss rates inch up in January from the previous month.

Only American Express and Bank of America had net loss rates decrease month over month in January, down at 0.50% from 0.58% in December 2021, and 1.19%, from 1.35%, respectively. Both posted a decrease of 56 basis points in net loss rates year over year.

Net loss rates of all six banks were reduced year over year in January. The average net loss rate of the group, at 0.99%, was still a long way from pre-pandemic levels.

JPMorgan Chase posted the biggest year-over-year cut of 95 basis points in January at 1.02%, followed by Citigroup at 1.11%, down by 90 basis points.

Portfolio yields increase YOY

On a year-over-year basis, most card issuers booked higher master trust portfolio yields, with Capital One booking the biggest yield improvement of 88 basis points, finishing January at 22.74%, compared to the same month last year.

Only Bank of America posted a decrease of 24 basis points at 16.43%, from 16.67% in January 2021.

However, most of the card issuers registered lower portfolio yields in January compared to December 2021. Only American Express managed a month-over-month uptick at 27.76%, from 27.56%.

The average yield for the six card issuers decreased to 20.21% in January, from 21.94% in December 2021.

Back to business

Bank of America President and CEO Brian Moynihan noted during the bank's Feb. 17 conference that paydown rates on cards are starting to slow down, and people are starting to use their cards for "longer-term activities."

For Moynihan, the slower paydown rate is "nicer for balances" and, with consumers' increased use of credit cards, "that all bodes well."

Moynihan described clients' January spending as "very strong," specifically on restaurants, travel, and even child care, which he said hit a pre-pandemic level in January and meant "people are starting to move back to work."

Click here for data on credit card master trust yields, net charge-offs and delinquencies in Excel format.