Chase, the nation’s largest bank credit card issuer, continued to post double-digit year-on-year (YOY) growth in purchase dollar volume (PDV) in the first quarter (1Q/17) while YOY growth in outstandings (OUT) remained in the mid-single digits. Card income remained depressed in the quarter due to higher new account origination costs and provisions to offset rising credit card charge-offs, according to CardData.
The higher new account origination costs were largely attributable to the high fee, generous rewards Chase Sapphire Reserve card, introduced last year.
Delinquency (DEL) increased slightly YOY and charge-offs (CO) rose sharply, sequentially (QTQ) and YOY in the first quarter.
Pre-tax net revenue plunged 31.4% YOY. Revenue for the first quarter was $817 million, compared to $821 million in the prior quarter and $1191 million for the year ago quarter. For 2016, Chase averaged $1091 million per quarter.
End-of-Period (EOP) U.S. credit card outstandings edged up by 7.1% YOY, compared to 7.4% YOY growth for 4Q/16. At the end of 1Q/17 Chase had $135.0 billion in U.S. EOP credit card outstandings, compared to $141.8 billion at the end of the prior quarter and $126.1 billion at the end of the year ago quarter.
Average U.S. credit card outstandings increased 7.8% YOY, compared to 6.7% YOY growth for 4Q/16. During the first quarter Chase had $137.2 billion in U.S. average credit card outstandings, compared to $136.2 billion for 4Q/16 and $127.3 billion for 1Q/16.
Chase U.S. credit card PDV, excluding business cards, increased 14.8% YOY to $139.7 billion, compared to $148.5 billion for 4Q/16 and $121.7 billion for 1Q/16.
Early-stage and late-stage delinquency crept north in the first quarter, mirroring industry trends.
Chase U.S. consumer credit card early-stage (30+ day) delinquency increased 21 basis points (bps) YOY and 5 bps QTQ for 1Q/17. The issuer reported a 30+ day delinquency ratio of 1.66% for 1Q/17, compared to 1.61% for 4Q/16 and 1.45% for 1Q/16.
U.S. consumer credit card late-stage (90+ day) delinquency increased 12 bps YOY and 6 bps QTQ for 1Q/17. The issuer reported at 90+ day delinquency ratio of 0.87% for 1Q/17, compared to 0.81% for 4Q/16 and 0.75% for 1Q/16.
The U.S. consumer credit card charge-off (CO) ratio jumped 32 bps YOY and up 27 bps QTQ for 1Q/17. The issuer reported a charge-off ratio of 2.94% for 1Q/17, compared to 2.67% for 4Q/16 and 2.62% for 1Q/16.
Continuing last year’s trend, Chase gross accounts (GAC) increased 4.7% YOY to an . . . .