ANALYSIS: Card Charge-offs Rise 15% in 3rd Quarter
February 02 2008
Source: CreditandCollectionsWorld.com and SourceMedia, Inc.
Net charge-offs of credit card loans at all FDIC-insured institutions through the first nine months of 2007 totaled roughly $11.5 billion, up $1.54 billion or 15.5% from approximately $9.95 billion during the first nine months of 2006.
The recovery rate on charged-off card loans fell to 16.4% year to date in 2007, compared with 19.4% throughout the same period of 2006. FDIC-insured financial institutions held total credit card loans of $384.5 billion during the third quarter, up 0.4% from holdings of $383.1 billion in the same period last year, according to the FDICís Quarterly Banking Profile.
Credit card loans that were 30-89 days past due during the third quarter totaled $9.3 billion, up 11% from $8.4 billion in the same quarter last year. Card accounts that were 90 or more days past due totaled $6.43 billion, increasing only 0.3% from $6.42 billion in last yearís third quarter.
Card loans in nonaccrual status, that is, loans considered an impaired asset and in a stage preceding write-off, totaled $992 million, up 27.5% from $777.4 million a year ago, the FDIC statistics show.