BTIG sees credit card trends improve in July data

Investing.com -- BTIG reported that credit card industry data showed continued improvement in credit performance during July, with net charge-offs and delinquency rates moving lower across most tracked companies.

The average net charge-off rate stood at 4.4% in July, declining 46 basis points year-over-year and 16 basis points month-over-month. Delinquencies over 30 days also improved, falling 22 basis points from the prior year, though they rose 5 basis points from June.

Bread Financial (NYSE: BFH) recorded the strongest improvement in both net charge-offs and delinquencies among the companies tracked. The firm maintains a Buy rating on Bread Financial with a $132 price target. Capital One (NYSE: COF) followed with the second-best performance in credit metrics. BTIG has a Buy rating on Capital One with a $259 price target.

Loan growth rates varied among the credit card issuers. Bread Financial's loan portfolio expanded 5.4% year-over-year, showing acceleration from previous periods. Synchrony (NYSE: SYF) and Capital One posted slower growth at 2% year-over-year. BTIG has a Neutral rating on Synchrony.

American Express (NYSE: AXP) loan growth slowed to 5.9% year-over-year, below its historical growth range of 8% to 9%. BTIG maintains a Sell rating on American Express with a $315 price target.

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