The Bank of America credit card charge-off rate raised to 13.82 %.
There has been recorded a fall of 4% in shares in premarket trading.
The details are that Bank of America Corp, which is considered to be the largest U.S. bank, has told on Monday that credit card defaults rise in July, due to the reason that more Americans lost jobs and many people continued to struggle to pay down their debts.
On Monday it has been said by Capital One Financial Corp. (COF) that those U.S. borrowers who are at least a month behind their card payments has been increased up to to 4.83% in July from 4.77% in June.
According to a regulatory filing Monday, In addition to this, the bank and credit-card issuer have wrote off 9.835% of its card loans last month, which was 9.73% in June.
Sanjay Sakhrani, who is an analyst at Keefe, Bruyette & Woods, has said on Monday in a note that the amount of card debt that has been wrote off in July by Capital One is trending better than what is estimated by them. Sakhrani anticipates that card losses will be at the peak for the overall industry in the fourth quarter or even early next year.
It has been said by The Federal Home Loan Bank system, the 12 government-chartered cooperatives that is owned by U.S. financial companies, that there has been a rise of 56% in second-quarter earnings and that is due to $979 million gains related to higher interest rates.
The system’s Reston, Virginia-based finance office said in an statement today that there has been a jump in the combined net income. The combined net income has been increased from $718 million a year earlier to $1.1 billion in the current year, largely from gains on derivatives and hedging activities. Moreover there has been a drop of 20% to $739 billion in the lending to members.