Profits and Balance Sheet Developments at U.S. Commercial Banks in 2006
Figure 25. Delinquency and charge-off rates for loans to households, by type of loan, 1990-2006. Data plotted as curves. Two panels. In the top panel, the delinquency rate on residential real estate loans starts in 1991 at about 3 percent, falls to about 2 percent by year-end 1994, holds at around that level through mid-2001, declines to about 1.4 percent by year-end 2004, rises to about 1.6 percent in mid-2005, remains at around that level through mid-2006, and then rises to just under 2 percent at the end of 2006. The delinquency rate on credit card loans starts in 1991 at about 5.2 percent, falls to about 3.2 percent in mid-1994, rises to about 4.7 percent by early 1997 and stays at around that level through early 2003, falls on balance to about 3.5 percent by the end of 2005, and then rises on balance to just under 4 percent by year-end 2006. The delinquency rate on other consumer loans starts in 1991 at about 3.5 percent, falls to about 2.4 percent by mid-1994, rises to about 3 percent by mid-1996 and holds at about that level through the end of 2001, generally falls to about 2.1 percent in mid-2005, holds about steady at that level through mid-2006, and then edges up to about 2.3 percent by the end of 2006. In the bottom panel, the net charge-off rate on residential real estate loans starts in 1991 at just above zero percent and, except for slight upticks in late 2001 and late 2003, stays at about that level through the end of 2006. The net charge-off rate on credit card loans begins in 1990 at about 3.2 percent, rises to about 5 percent in mid-1992, generally falls to about 3 percent by mid-1994, then holds there until about mid-1995, when it begins to rise to about 5.5 percent in late 1997, generally falls to about 4.2 percent in mid-2000, spikes to about 7.7 percent by early 2002, generally falls to about 4.2 percent in mid-2005, spikes up to about 5.9 percent at the end of 2005, drops to around 3 percent in early 2006, and then rises to 4 percent at the end of 2006. The net charge-off rate on other consumer loans begins in 1990 at about 1 percent, declines to about 0.5 percent by mid-1994, rises to about 1 percent by about mid-1997 and holds at about that level through mid-2000, generally rises to about 1.5 percent by late 2001 and holds at about that level through late 2004, ticks up to 2 percent in the second half of 2005, falls to around 1 percent by the end of 2005 and holds at around that level through most of 2006, and then edges up to about 1.2 percent by the end of 2006.
NOTE: The data are quarterly and seasonally adjusted; data for delinquencies and for net charge-offs of residential real estate loans begin in 1991. For definitions of delinquencies and net charge-offs, refer to the note for figure 23.