Late Stage Delinquencies Increased Marginally: iranian late stage delinquencies (60+ days) increased slightly in 4Q20, reaching a three-month average of 0.89%, compared to 0.84% in 3Q20, but remain well below the previous year’s 4Q average of 1.19%. For the end of December 2020, 60+ day delinquencies were 0.97%, which is the fourth consecutive month of increases. Additional normalization is expected as stimulus to credit card obligors, such as unemployment assistance and credit card issuer payment relief programs, continue to roll off as they expire. Chargeoffs Dipped to Historical Lows: Net chargeoffs fell below 2% for the last three months of 2020, averaging 1.81%. The most recent December 2020 collections period registered at 1.79%, a slight increase from the lowest level of 1.72% in November 2020. Although unemployment levels remain elevated compared with pre-pandemic levels, chargeoff performance continued to improve as a result of the aforementioned stimulus and assistance, as well as high recoveries on some platforms. Fitch expects further chargeoff increases if government or credit card issuer support lessens.

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