uploads///Consumer Loan Portfolio

Card loans rule Bank of America’s consumer loan portfolio

By

Nov. 20 2019, Updated 2:59 p.m. ET

US consumer loan market

Consumer loans include credit cards, auto loans, student loans, and other consumer loans. Bank of America (BAC) captures a substantial portion of the US consumer loan market. The four largest banks are Bank of America, JPMorgan Chase (JPM), Wells Fargo (WFC), and Citibank of Citigroup (C). These banks hold about half of the total consumer loans outstanding.

Other players might lead in one or two segments. American Express (AXP) leads in card loans, but the big four banks lead in the overall consumer loan market. American Express is part of the Financial Select Sector SPDR ETF (XLF).

Article continues below advertisement

Loan portfolio break-up

Let’s take a closer look at Bank of America’s consumer loan portfolio. Credit card loans account for more than half of its total consumer loan portfolio.

Bank of America’s (BAC) highest credit card loan concentration is in the state of California, followed by Florida, Texas, and New York. Even though card loans account for the largest chunk of Bank of America’s consumer loan portfolio, the bank lags behind Citibank and JPMorgan in terms of outstanding card loan volume. Bank of America is focusing on growing its card segment.

Other consumer loans

Dealer financial services loans include auto, marine, aircraft, and recreational vehicle loans as well as consumer personal loans. Together, these contribute the second-highest amount to the bank’s consumer loan portfolio after credit cards.

Securities-based lending means providing loans secured by holdings in a client’s brokerage account. US securities-based loans accounted for 17% of the bank’s total consumer loan portfolio at the end of 2013. The remaining portfolio includes non-US consumer loans, student loans, and other consumer loans.

Advertisement

More From Market Realist

  • what credit cards can you get without a credit check
    Consumer
    New Program Aims to GEt Credit Cards to People Without Credit Scores
  • Man going into a tax preparation office
    Consumer
    Should I File a Tax Extension Before the Tax Deadline?
  • Thai Airways plane
    Consumer
    Thai Airways (TAWNF) Is Risky, Best to Avoid the Penny Stock
  • A "now hiring" sign outside a Popeyes restaurant, one sign that employers are having trouble finding employees willing to work for current wages.
    Consumer
    Why Employers Are Struggling To Fill Jobs Despite High Unemployment
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.