April 28, 2023 (NO COMMENTS)

Executives expect trend to continue as credit normalisation proceeds apace

US banks saw net charge-offs rise in the first quarter of the year, as credit normalisation hit consumers amid higher interest rates. Of 14 lenders analysed by Risk Quantum, 12 reported higher net charge-off rates compared with the previous quarter. All of them saw higher rates for unrecoverable loans on a yearly basis. Synchrony and Discover stood out reporting the highest quarterly increase of the group.   Synchrony marked $1 billion of loans as unrecoverable at end-March, up 30% since