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C's September Card Delinquencies Rise: Will This Impact Asset Quality?
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Key Takeaways
C's 30-day and 90-day card delinquencies rose sequentially in September, while receivables fell to $18.7B.
The annualized net principal loss rate climbed to 2.18% in September from 2.03% in August.
Citigroup expects a 4%-4.5% U.S. card net credit loss rate in 2026 amid ongoing consumer credit pressures.
Citigroup Inc. (C - Free Report) continues to navigate credit-quality challenges amid an uncertain economic environment. According to its latest SEC filing, its subsidiary, Citibank N.A., reported higher credit card delinquencies and net principal losses in September 2026, while outstanding principal receivables declined during the month.
For the period ended Sept. 25, 2026, the Citibank Credit Card Master Trust I reported principal receivables of $18.7 billion, down from $19.1 billion at the beginning of the period. Receivables delinquent for 30 days or more increased to 1.35% in September from 1.29% in August, while those delinquent for 90 days or more rose to 0.65% from 0.63%. The Citibank Credit Card Issuance Trust’s annualized net principal loss rate climbed to 2.18% from 2.03% in August and 1.90% in July, signaling a pickup in credit losses.
The detailed filing also showed that 97.3% of receivables were current in September. However, balances delinquent for 31-60 days were $80.7 million, while those delinquent for 151-180 days totaled $37.4 million. The portfolio's annualized gross yield was 25.03%, while the principal payment rate was 41.45%. Although the high portfolio yield provides a revenue cushion against credit losses, the increase in delinquencies and net principal losses warrants monitoring. These figures relate to the securitized credit card portfolios and should not be interpreted as representing Citigroup's entire loan portfolio.
Citigroup’s broader asset-quality picture remains a concern. Although provisions for credit losses declined 2% year over year to $7.91 billion in the first nine months of 2026, the metric recorded a compound annual growth rate (CAGR) of 24.5% from 2022 to 2025. However, credit quality showed improvement in the third quarter, with the U.S. Cards net credit loss rate declining to 3.6% from 4.0% a year earlier. Management’s earlier 2026 guidance projected a U.S. card net credit loss rate of 4-4.5%, highlighting continued credit risks.
Citigroup's organizational overhaul, business simplification initiatives and focus on operational efficiency could support profitability over the longer term. However, persistent inflation, pressure on borrowers' repayment capacity and rising card losses could weigh on asset quality. Any sustained deterioration in credit trends may lead to higher provisions and constrain earnings growth, even as the company benefits from resilient net interest income and a stronger focus on core businesses.
How Citigroup Stacks Up Against Peers in Card Delinquency
U.S. credit card metrics were mixed in September 2026, with delinquency rates increasing at both Bank of America (BAC - Free Report) and JPMorgan Chase (JPM - Free Report) , although the latter's rate remained relatively low. Both issuers reported lower outstanding receivables, while net charge-off and loss rates improved compared with the previous month.
Bank of America reported that the BA Master Credit Card Trust II delinquency rate increased to 1.37% in September 2026 from 1.28% in August. However, its net charge-off rate declined to 2.09% from 2.15% in August, indicating some improvement in credit losses. Total receivables fell to $14.53 billion from $14.63 billion at the beginning of the month.
JPMorgan Chase reported a delinquency rate of 0.81% for the Chase Issuance Trust in September 2026, with $95.1 million in delinquent receivables against a pool balance of $11.81 billion. Its annualized net loss rate was 1.52%. Principal receivables declined to $11.65 billion from $11.84 billion at the beginning of the month.
Citigroup’s Price Performance & Zacks Rank
Shares of Citigroup have gained 26.7% over the past year compared with the industry’s growth of 8.7%.
View the Zacks #1 Rank List
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C's September Card Delinquencies Rise: Will This Impact Asset Quality?
Key Takeaways
Citigroup Inc. (C - Free Report) continues to navigate credit-quality challenges amid an uncertain economic environment. According to its latest SEC filing, its subsidiary, Citibank N.A., reported higher credit card delinquencies and net principal losses in September 2026, while outstanding principal receivables declined during the month.
For the period ended Sept. 25, 2026, the Citibank Credit Card Master Trust I reported principal receivables of $18.7 billion, down from $19.1 billion at the beginning of the period. Receivables delinquent for 30 days or more increased to 1.35% in September from 1.29% in August, while those delinquent for 90 days or more rose to 0.65% from 0.63%. The Citibank Credit Card Issuance Trust’s annualized net principal loss rate climbed to 2.18% from 2.03% in August and 1.90% in July, signaling a pickup in credit losses.
The detailed filing also showed that 97.3% of receivables were current in September. However, balances delinquent for 31-60 days were $80.7 million, while those delinquent for 151-180 days totaled $37.4 million. The portfolio's annualized gross yield was 25.03%, while the principal payment rate was 41.45%. Although the high portfolio yield provides a revenue cushion against credit losses, the increase in delinquencies and net principal losses warrants monitoring. These figures relate to the securitized credit card portfolios and should not be interpreted as representing Citigroup's entire loan portfolio.
Citigroup’s broader asset-quality picture remains a concern. Although provisions for credit losses declined 2% year over year to $7.91 billion in the first nine months of 2026, the metric recorded a compound annual growth rate (CAGR) of 24.5% from 2022 to 2025. However, credit quality showed improvement in the third quarter, with the U.S. Cards net credit loss rate declining to 3.6% from 4.0% a year earlier. Management’s earlier 2026 guidance projected a U.S. card net credit loss rate of 4-4.5%, highlighting continued credit risks.
Citigroup's organizational overhaul, business simplification initiatives and focus on operational efficiency could support profitability over the longer term. However, persistent inflation, pressure on borrowers' repayment capacity and rising card losses could weigh on asset quality. Any sustained deterioration in credit trends may lead to higher provisions and constrain earnings growth, even as the company benefits from resilient net interest income and a stronger focus on core businesses.
How Citigroup Stacks Up Against Peers in Card Delinquency
U.S. credit card metrics were mixed in September 2026, with delinquency rates increasing at both Bank of America (BAC - Free Report) and JPMorgan Chase (JPM - Free Report) , although the latter's rate remained relatively low. Both issuers reported lower outstanding receivables, while net charge-off and loss rates improved compared with the previous month.
Bank of America reported that the BA Master Credit Card Trust II delinquency rate increased to 1.37% in September 2026 from 1.28% in August. However, its net charge-off rate declined to 2.09% from 2.15% in August, indicating some improvement in credit losses. Total receivables fell to $14.53 billion from $14.63 billion at the beginning of the month.
JPMorgan Chase reported a delinquency rate of 0.81% for the Chase Issuance Trust in September 2026, with $95.1 million in delinquent receivables against a pool balance of $11.81 billion. Its annualized net loss rate was 1.52%. Principal receivables declined to $11.65 billion from $11.84 billion at the beginning of the month.
Citigroup’s Price Performance & Zacks Rank
Shares of Citigroup have gained 26.7% over the past year compared with the industry’s growth of 8.7%.
One-Year Performance
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.