Credit Card Trusts See Modest Rise in Delinquency Rates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 19 2026
0mins
Source: seekingalpha
- Delinquency Rate Increase: The average delinquency rate for the seven banks rose to 2.81% in January, up from 2.75% in December and 2.58% a year ago, indicating a potential increase in credit risk as consumers either paid down debt or lenders tightened credit.
- Mixed Charge-Off Rates: The average net charge-off rate increased to 3.53% from 3.27% in the previous month but decreased from 4.11% in January 2025, suggesting significant variability among banks, with Bread Holdings skewing the average due to its higher charge-off rate.
- Total Loan Decline: Total loans from the seven trusts amounted to $521.4 billion, reflecting a 2.3% decrease from December, indicating a tightening credit market that could impact consumer borrowing capacity and spending.
- J.P. Morgan Trust Index Performance: The total delinquency rate for J.P. Morgan's Trust Tracker Index rose by 5 basis points to 1.28%, while net charge-offs improved by 11 basis points to 1.84%, slightly outperforming analyst expectations, demonstrating relative stability in credit quality for this index.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 301.450
Low
280.00
Averages
379.06
High
425.00
Current: 301.450
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its range of products and services includes credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services; banking and other payment and financing products and services, including deposits and non-card lending; merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, and network services. These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers, and business partners.
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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