Discover and Synchrony net charge-offs keep climbing higher
Bad loan write-offs projected to rise further in 2024 as credit quality deteriorates
The proportion of loans written off as unrecoverable rose to multi-year highs at Discover and Synchrony in the last quarter of 2023, as higher interest rates continued to hit both US consumer banks.
Net charge-off (NCO) rates rose 59 basis points to 4.11% at Discover, the highest such figure for the bank since 2011, and 98bp to 5.58% at Synchrony, its zenith since 2019.
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