JPMorgan Credit Card Delinquencies and Charge-Offs Show Modest Improvement

JPMorgan's July Master Trust data shows a net charge-off rate of 1.58%, down from 1.62% in June, and credit card delinquencies at 1.69%, a slight decrease from 1.72% previously.

The monthly publication of Master trust data provides a cleaner gauge of consumer credit than quarterly earnings reports, according to the source. It's worth noting that charge-offs tend to lag behind delinquencies by a few months, making early-stage delinquency rates a forward indicator and confirming what delinquencies signal earlier.

In this case, both ticked lower month-on-month, which has been interpreted in past episodes as stabilisation rather than deterioration in the consumer book. However, it's essential to distinguish between seasonal versus trend: card metrics have a well-known rhythm around tax refund season and year-end spending.