U.S. Credit Card Delinquencies Continue to Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Delinquency Rate Decline: The average credit card delinquency rate for major U.S. banks fell to 2.47% in May from 2.55% in April, below the three-month average of 2.57%, indicating a short-term improvement in consumer repayment capacity.
- Charge-Off Rate Decrease: The average net charge-off rate dropped to 3.63% in May, down from 3.70% in April and the three-month moving average of 3.72%, reflecting effective credit risk management by banks, although it remains above the pre-pandemic level of 3.97%.
- Future Risk Warning: Despite the current positive delinquency trends, economist Heather Long warns that delinquency rates may rise in Q3 2026 as consumers may struggle to maintain financial stability after tax refunds diminish, particularly in a high-inflation environment.
- Consumer Sentiment Fluctuation: Preliminary data from the University of Michigan indicates a rise in consumer sentiment in June, especially among lower-income groups benefiting from falling gas prices, yet economists caution that this uptick does not signify overall economic improvement as consumers continue to face financial pressures.
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Analyst Views on C
Wall Street analysts forecast C stock price to fall
18 Analyst Rating
15 Buy
3 Hold
0 Sell
Strong Buy
Current: 143.780
Low
87.00
Averages
131.00
High
150.00
Current: 143.780
Low
87.00
Averages
131.00
High
150.00
About C
Citigroup Inc. is a global diversified financial services holding company. The Company’s segments include Services, Markets, Banking, Wealth and U.S. Personal Banking (USPB). The Services segment includes Treasury and Trade Solutions (TTS) and securities services. TTS provides an integrated suite of tailored cash management, trade and working capital solutions to multinational corporations, financial institutions and public sector organizations. The Markets segment provides corporate, institutional and public sector clients around the world with a full range of sales and trading services across equities, foreign exchange, rates, spread products and commodities. The Banking segment includes investment banking, which supports client capital-raising needs to help strengthen and grow their businesses. The Wealth segment includes Private Bank, Wealth at Work and Citigold and provides financial services to a range of client segments. USPB segment includes branded cards and retail services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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