US banks endure climb in charge-off rates
Write-offs spread from consumer and CRE portfolios to other corporate lending
US banks’ charge-off rates have steadily climbed over the past 12 months, as stress in loan quality spread from the consumer book to other exposures.
Lenders with large credit card portfolios saw the fastest rise in charge-offs as retail borrowers buckled under persistently high interest rates. In the second quarter, annualised charge-offs rose by 167 basis points year on year to 6.42% at Synchrony Financial, and by 161bp to 4.83% at Discover – the steepest increases among 32 banks analysed by R
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