Credit Card Issuers Poised for Loss Beat Amid Stable Delinquency Trends

Goldman Sachs has reported that credit card issuers are likely to beat loss forecasts in the third quarter. According to the firm, August credit metrics for card issuers showed stable delinquency trends and net charge-offs that performed better than expected.

The report noted that 30-day-plus delinquencies came in at 3.57%, up 3 basis points month-over-month but below the expected 3.63%. Net charge-offs decreased 12 basis points month-over-month to 4.33%, outperforming long-term expectations of a 6 basis point decline.

Among individual issuers, Bread Financial Holdings saw delinquencies rise 1 basis point to 5.36%, while Synchrony Financial remained flat at 4.20%. American Express held steady at 1.16%, and Capital One Financial increased 9 basis points to 3.57%.

Net charge-offs showed improvement across most issuers, with Bread Financial declining 40 basis points to 6.40% and American Express falling 12 basis points to 1.84%. Synchrony remained flat at 4.90%, while Capital One increased 4 basis points to 4.16%.