Citibank on Tuesday reported declines in the rates of default and late payments by its credit card customers for October.
The rates for both measures for the credit card division of New York-based Citigroup Inc. fell to levels not seen since late 2007.
DEFAULT: Citibank wrote off 5.66 percent of balances on an annualized basis in October, down from 5.87 percent in September. The rate is sharply below the 10.27 percent charge-off rate a year ago.
LATE PAYMENTS: Payments on 3.26 percent of balances were delinquent, or late by 35 days or more, in October. That's down from 3.3 percent in September. A year ago, the delinquency rate was 4.74 percent.
PEAK RATES: Citibank's worst month for charge-offs came in March 2010, when they hit 11.55 percent. Card companies typically write off loans after they are six months past due.
Delinquencies also reached their highest point in March 2010 at 6.06 percent. The figure is an indicator for what to expect for defaults in coming months.
Shares of Citigroup fell 36 cents, to $28.02 in afternoon trading.