KBRA Financial Intelligence

Credit Card Delinquencies at 12-Year High in 4Q 2023

Credit card delinquencies reached a 12-year high as the amount of the loans outstanding reached a nominal record of $1.13 trillion in 4Q 2023, according to data compiled by KBRA Financial Intelligence (KFI).

The rate of overdue credit card loans at all U.S. banks climbed 24 basis points (bps) to 3.33% quarter-over-quarter and 88 bps year-over-year, and are now at the highest level since 2011, according to Call Report data compiled by KFI. Delinquencies are defined as loans that are 30 or more days overdue and still accruing plus nonaccruals.

The largest banks―lenders with more than $100 billion in assets―are reporting the highest delinquency rates at 3.61%. Ally Bank, Capital One, and Synchrony Bank reported the highest delinquency rates among peers at 8.2%, 5.3%, and 4.9%, respectively.

Regional banks ($10 billion to $100 billion in assets) reported delinquency rates of 3.36%, while community lenders (less than $10 billion in assets) reported the lowest delinquency rates at 2.13%.