U.S. Banks’ Asset Quality Improves With Less Net Charge-offs

Industry-wide net charge-offs declined 9 bps in the first quarter of 2014, reaching their lowest level since 2007, notes Barclays in their recently published analysis of U.S. Large-Cap and Mid-Cap Banks. Jason M. Goldberg and colleagues at Barclays in their Equity Research report dated May 21, 2014, analyzed the Fed’s quarterly report on bank net charge-offs (NCOs) and delinquencies for 1Q14. Broad-based improvement The Barclays’ analysts point out that net charge-offs exhibited broad-based improvement. For instance, mortgage, CRE and other consumer and credit card all posted declines. As can be deduced from the following table, all major categories are currently…