Credit Metrics Remain Stable at U.S. Banks

U.S. banks’ provision-to-net charge-off ratio increased to 107.6% in the first quarter, up from 100.4% in the prior quarter, as provisions rose and net charge-offs declined, according to S&P Global Market Intelligence. Reserve balances also increased modestly, although the reserves-to-gross loans ratio edged lower for the fourth straight quarter as loan growth outpaced reserve growth.

A separate S&P article discussed the 30-plus-day delinquency rates at the five largest U.S. credit card issuers falling to 1.19% in April, the lowest level in more than 2.5 years, suggesting resilient consumers and stable credit performance across major card portfolios.