Third-quarter card loan growth, among the Top 4 U.S. issuers, grew a solid 4.3% year-on-year (YOY), compared to 2.6% YOY in the prior quarter, and compared to 2.8% YOY one-year ago. Among the nation’s Top 4 credit card issuers (Chase [JPM], Capital One [COF], Bank of America [BAC], and Citibank [C]), the annual growth rate for U.S. end-of-period (EOP) credit card outstandings in the third-quarter (3Q/19) is the second lowest in the past five years.
Card Loan Growth Analysis
For the third-quarter U.S. credit card EOP outstandings, among the Top 4 posted at $450.8 billion, compared to $440.2 billion for 2Q/19, and $432.1 billion for 3Q/18. For the third-quarter of 2015, the Top 4 reported $362.4 billion in U.S. EOP credit card outstandings, according to figures collected by CardData.
The YOY gain in U.S. EOP outstandings for the third-quarter of 4.3%, compares to a YOY increase of 2.8% in 3Q/18, 6.5% in 3Q/17, and 8.9% in 3Q/16. U.S. EOP outstandings for the Top 4 U.S. issuers is now growing at a 5.61% compound annual growth rate (CAGR), compared to 5.31% in the prior quarter, according to RAM Research.
The card loan growth spike for 2016 was largely attributable to the migration of American Express Costco credit card accounts to Citibank of approximately $13 billion. However, the gain for 3Q/19 was clearly driven by Chase, growing by more than two times its nearest competitor, notes Robert McKinley, Senior Analyst for CardData, CardFlash, PYRPTS and CardTrak.