US banks see net charge-offs up 21% in Q2
Synchrony and Discover lead rise, predicting rates might peak in 2024
Net charge-offs at US banks climbed further in the second quarter, as the growing size of unrecoverable debt continues to weigh on lenders’ balance sheets.
Aggregate rates across 14 US banks analysed by Risk Quantum rose 21% over the three months to end-June, compared with an increase of 14% in the first quarter.
Synchrony reported the highest rate of the group, as net charge-offs climbed 26 basis points to 4.75%. Discover’s rate rose the most, by 50bp, to 3.22%.
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