Bank of America, the nation’s third largest Visa and MasterCard issuer, continued to struggle in the first quarter (1Q/17) with sluggish outstandings (OUT) and purchase dollar volume (PDV) growth, but other metrics, except charge-offs, remain fairly stable, according to CardData.
Pre-tax net income edged up 1.1% YOY to $1224 million in 1Q/17, compared to $1290 million in the prior quarter and $1211 million for the year ago quarter. For 2016, BofA averaged $1234 million per quarter.
End-of-Period (EOP) U.S. credit card outstandings moved upward by 2.5% YOY. At the end of 1Q/17 BofA had $88.6 billion in U.S. EOP credit card outstandings, compared to $92.3 billion at the end of the prior quarter and $86.4 billion at the end of the year ago quarter.
Average U.S. credit card outstandings YOY growth was up 2.8% for 1Q/17. During the first quarter BofA had $89.6 billion in U.S. average credit card outstandings, compared to $88.5 billion for 4Q/16 and $87.2 billion for 1Q/16.
BofA U.S. credit card PDV, excluding business cards, increased 8.0% YOY to $55.3 billion, compared to $61.0 billion for 4Q/16 and $51.2 billion for 1Q/16.
Early-stage and late-stage delinquency continued to deteriorate in the first quarter.
BofA U.S. consumer credit card early-stage (30+ day) delinquency increased 10 basis points (bps) YOY and up 5 basis points (bps) Quarter-To-Quarter (QTQ) for 1Q/17. The issuer reported a 30+ day delinquency ratio of 1.78%, compared to 1.73% for 4Q/16 and 1.68% for 1Q/16.
U.S. consumer credit card late-stage (90+ day) delinquency rose 4 bps YOY and up 5 bps QTQ for 1Q/17. The issuer reported a 90+ day delinquency ratio of 0.90%, compared to 0.85% for 4Q/16 and 0.86% for 1Q/16.
U.S. consumer credit card charge-off (CO) ratio was up 3 bps YOY and up 22 bps QTQ for 1Q/17. BofA reported a charge-offs ratio of 2.74% for 1Q/17, compared to 2.52% for 4Q/16 and 2.71% for 1Q/16.
BofA’s U.S. consumer credit card gross interest yield (YLD) improved both YOY and QTQ. For the first quarter BofA’s YLD was 9.55%, compared to 9.35% for the prior quarter, and 9.32% for the year ago quarter.
The issuer’s risk-adjusted margin (RAM) dipped QTQ by 31 bps for 1Q/17 to 8.89%, and down 16 bps YOY. BofA’s RAM for 4Q/16 was 9.20% and 9.03% for 1Q/16.
On par with last year, BofA opened up 1.2 million accounts in 1Q/17, compared to 1.1 million in 4Q/16 and 1.2 million for 1Q/16.
BofA has an estimated 36.2 million gross accounts (GAC) and 34.4 million active accounts (AAC) at the end of the first quarter.
BofA’s U.S. debit card PDV rose 2.2% YOY to $70.6 billion to 1Q/17, compared to $73.3 billion for the prior quarter and $69.1 billion one-year ago.
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