We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
C's July Card Delinquencies Tick Up: Will This Impact Asset Quality?
Read MoreHide Full Article
Key Takeaways
C's card delinquency rate rose to 1.32% in July, but remained below the year-ago level.
C's net charge-off rate fell to 1.90% in July from 2.25% in June.
Card receivables declined to $19.1 billion, reflecting moderation in consumer borrowing activity.
Citigroup Inc. (C - Free Report) continues to navigate credit-quality challenges amid an uncertain economic environment. Per the latest SEC filing, its subsidiary, Citibank N.A., reported mixed credit card performance for July 2026, while lending activity declined during the month.
For the period ending July 2026, the Citibank Credit Card Master Trust delinquency rate rose to 1.32% from 1.30% in June 2026 but declined from 1.42% in July 2025. The latest figure also remained below the 1.53% level recorded in July 2019, before the COVID-19 pandemic. Meanwhile, the Credit Card Issuance Trust’s net charge-off rate declined to 1.90% in July from 2.25% in June and 2.07% a year ago. The figure was also considerably below the 2.91% recorded in July 2019.
The credit trends were accompanied by a decline in card receivables. Principal receivables stood at $19.1 billion in July, down from $19.2 billion at the beginning of the previous month and $20.9 billion a year ago, indicating moderation in consumer borrowing activity. The decline comes amid tighter lending standards across the industry. According to the Federal Reserve’s Senior Loan Officer Opinion Survey on Lending Practices, banks tightened standards for consumer credit card lending during July, while demand for such lending remained unchanged. Tighter standards could limit the pace of credit card loan growth going forward.
Although the latest card metrics remain favorable compared with prior-year levels, Citigroup’s broader asset-quality picture remains a concern. While the company’s provisions for credit losses declined year over year in the first half of 2026, the metric increased at a compound annual growth rate (CAGR) of 24.5% from 2022 to 2025. Management expects the U.S. card net credit loss rate to be 4-4.5% in 2026, highlighting continued pressure on the card portfolio.
The credit environment remains challenging, with persistent inflation potentially affecting borrowers’ repayment capacity. With interest rates expected to remain unchanged through the remainder of 2026, borrowing costs could remain elevated, adding pressure on consumer finances. Any deterioration in borrowers’ credit profiles could lead to higher delinquencies and credit losses, keeping Citigroup’s asset quality under pressure in the near term.
How Citigroup Stacks Up Against Peers in Card Delinquency
U.S. credit card metrics were mixed in July 2026, with delinquencies and net charge-offs moving in different directions across major issuers. Following the broader trend, Bank of America (BAC - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) reported lower delinquency rates compared with the prior-year levels, while net charge-off trends differed.
Bank of America’s BA Master Credit Card Trust II delinquency rate declined to 1.26% in July 2026 from 1.37% a year ago. BAC’s net charge-off rate also fell to 2.13% from 2.25% in July 2025.
JPMorgan’s Chase Issuance Trust delinquency rate decreased to 0.81% in July 2026 from 0.86% in July 2025. However, JPM’s net charge-off rate increased to 1.58% from 1.54% in the prior year, indicating modest pressure in loss trends.
Citigroup’s Price Performance & Zacks Rank
Shares of Citigroup have gained 18.6% over the past six months compared with the industry’s growth of 15%.
View the Zacks #1 Rank List
Image: Bigstock
C's July Card Delinquencies Tick Up: Will This Impact Asset Quality?
Key Takeaways
Citigroup Inc. (C - Free Report) continues to navigate credit-quality challenges amid an uncertain economic environment. Per the latest SEC filing, its subsidiary, Citibank N.A., reported mixed credit card performance for July 2026, while lending activity declined during the month.
For the period ending July 2026, the Citibank Credit Card Master Trust delinquency rate rose to 1.32% from 1.30% in June 2026 but declined from 1.42% in July 2025. The latest figure also remained below the 1.53% level recorded in July 2019, before the COVID-19 pandemic. Meanwhile, the Credit Card Issuance Trust’s net charge-off rate declined to 1.90% in July from 2.25% in June and 2.07% a year ago. The figure was also considerably below the 2.91% recorded in July 2019.
The credit trends were accompanied by a decline in card receivables. Principal receivables stood at $19.1 billion in July, down from $19.2 billion at the beginning of the previous month and $20.9 billion a year ago, indicating moderation in consumer borrowing activity. The decline comes amid tighter lending standards across the industry. According to the Federal Reserve’s Senior Loan Officer Opinion Survey on Lending Practices, banks tightened standards for consumer credit card lending during July, while demand for such lending remained unchanged. Tighter standards could limit the pace of credit card loan growth going forward.
Although the latest card metrics remain favorable compared with prior-year levels, Citigroup’s broader asset-quality picture remains a concern. While the company’s provisions for credit losses declined year over year in the first half of 2026, the metric increased at a compound annual growth rate (CAGR) of 24.5% from 2022 to 2025. Management expects the U.S. card net credit loss rate to be 4-4.5% in 2026, highlighting continued pressure on the card portfolio.
The credit environment remains challenging, with persistent inflation potentially affecting borrowers’ repayment capacity. With interest rates expected to remain unchanged through the remainder of 2026, borrowing costs could remain elevated, adding pressure on consumer finances. Any deterioration in borrowers’ credit profiles could lead to higher delinquencies and credit losses, keeping Citigroup’s asset quality under pressure in the near term.
How Citigroup Stacks Up Against Peers in Card Delinquency
U.S. credit card metrics were mixed in July 2026, with delinquencies and net charge-offs moving in different directions across major issuers. Following the broader trend, Bank of America (BAC - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) reported lower delinquency rates compared with the prior-year levels, while net charge-off trends differed.
Bank of America’s BA Master Credit Card Trust II delinquency rate declined to 1.26% in July 2026 from 1.37% a year ago. BAC’s net charge-off rate also fell to 2.13% from 2.25% in July 2025.
JPMorgan’s Chase Issuance Trust delinquency rate decreased to 0.81% in July 2026 from 0.86% in July 2025. However, JPM’s net charge-off rate increased to 1.58% from 1.54% in the prior year, indicating modest pressure in loss trends.
Citigroup’s Price Performance & Zacks Rank
Shares of Citigroup have gained 18.6% over the past six months compared with the industry’s growth of 15%.
Image Source: Zacks Investment Research
Currently, C carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.