Citi(C) ZACKS·2024-12-17 16:40Core Insights - Citigroup's subsidiary, Citibank N.A., reported an increase in credit card trust delinquency and net charge-off rates for November 2024, although these rates remain below pre-pandemic levels [1][2][3] Delinquency and Charge-Off Rates - The delinquency rate for Citibank's Credit Card Issuance Trust rose to 1.53% in November 2024 from 1.52% in October 2024, and 1.47% in the same period last year, still below the 1.58% recorded in November 2019 [2] - The net charge-off rate increased to 2.40% in November 2024 from 2.36% in October 2024, but improved from 2.53% in the previous year and is lower than the 2.57% in November 2019 [3] Factors Influencing Rates - The rise in delinquency and charge-off rates is attributed to delayed losses from customers who borrowed during the COVID period, with these losses now materializing but remaining within expected ranges [4] - The current unemployment rate in the United States is also considered a significant factor contributing to the increase in these rates [4] Lending Activity - Citibank's credit card lending experienced modest growth due to increased consumer spending, reliance on credit cards for daily expenses, and the issuance of more credit cards with attractive benefits [5] - Principal receivables in the trust grew to 21.7 billion at the start of the period, indicating steady consumer borrowing activity [5] Stock Performance - Citigroup's shares have gained 17.6% over the past six months, compared to the industry's growth of 21.7% [6]