JP Morgan Chase 2015 Annual Report Download - page 268

Notes to consolidated financial statements
258 JPMorgan Chase & Co./2015 Annual Report
Credit card loan portfolio
The credit card portfolio segment includes credit card loans
originated and purchased by the Firm. Delinquency rates
are the primary credit quality indicator for credit card loans
as they provide an early warning that borrowers may be
experiencing difficulties (30 days past due); information on
those borrowers that have been delinquent for a longer
period of time (90 days past due) is also considered. In
addition to delinquency rates, the geographic distribution of
the loans provides insight as to the credit quality of the
portfolio based on the regional economy.
While the borrower’s credit score is another general
indicator of credit quality, the Firm does not view credit
scores as a primary indicator of credit quality because the
borrower’s credit score tends to be a lagging indicator.
However, the distribution of such scores provides a general
indicator of credit quality trends within the portfolio.
Refreshed FICO score information, which is obtained at least
quarterly, for a statistically significant random sample of
the credit card portfolio is indicated in the table below; FICO
is considered to be the industry benchmark for credit
scores.
The Firm generally originates new card accounts to prime
consumer borrowers. However, certain cardholders’ FICO
scores may decrease over time, depending on the
performance of the cardholder and changes in credit score
technology.
The table below sets forth information about the Firm’s
credit card loans.
As of or for the year
ended December 31,
(in millions, except ratios) 2015 2014
Net charge-offs $ 3,122 $ 3,429
% of net charge-offs to retained loans 2.51% 2.75%
Loan delinquency
Current and less than 30 days past due
and still accruing $ 129,502 $ 126,189
30–89 days past due and still accruing 941 943
90 or more days past due and still accruing 944 895
Total retained credit card loans $ 131,387 $ 128,027
Loan delinquency ratios
% of 30+ days past due to total retained
loans 1.43% 1.44%
% of 90+ days past due to total retained
loans 0.72 0.70
Credit card loans by geographic region
California $ 18,802 $ 17,940
Texas 11,847 11,088
New York 11,360 10,940
Florida 7,806 7,398
Illinois 7,655 7,497
New Jersey 5,879 5,750
Ohio 4,700 4,707
Pennsylvania 4,533 4,489
Michigan 3,562 3,552
Colorado 3,399 3,226
All other 51,844 51,440
Total retained credit card loans $ 131,387 $ 128,027
Percentage of portfolio based on carrying
value with estimated refreshed FICO
scores
Equal to or greater than 660 84.4% 85.7%
Less than 660 15.6 14.3