SYF - Credit card delinquency charge-offs tick up in November as stimulus wanes

Most credit card companies saw both delinquency and net charge-off rates ticking up in November as normalization trends take hold with the fading of pandemic-era stimulus. At the same time, loan growth continues to improve — good news for the lenders, who reap healthy interest rates from credit card debt. Jefferies analyst John Hecht points out that payment rates are still highly elevated, likely due to consumers' health balance sheets. "Taken together, we expect credit to gradually revert to historical norms with receivables continuing to grow sequentially," Hecht wrote in a note to clients. "November NCO (net charge-off) trends for major issuers were relatively stable M/M despite typical seasonality for an increase, while holiday spending pushed loan balances higher, writes Baird analyst David A. George, who doesn't expects any dramatic increases in NCOs in the near-term. Regarding ratings, he remains Neutral on JPMorgan Chase (NYSE:JPM), Capital One (NYSE:COF), and American

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Credit card delinquency, charge-offs tick up in November as stimulus wanes