Wolfe reports July credit data for card issuers

Investing.com -- Wolfe Research released credit and loan growth data for July 2026 covering American Express (NYSE: AXP), Bread Financial Holdings (NYSE: BFH), Capital One (NYSE: COF), and Synchrony Financial (NYSE: SYF).

Balance growth across the card issuers slowed to 3.0% year-over-year in July compared to 3.7% in June. The firm noted that Prime Day timing may have contributed to the deceleration.

American Express U.S. Consumer Services balances grew 5.9% year-over-year, down from 7.6% in June and below the third quarter Street estimate of 7.7%. Capital One Domestic Card balances increased 1.9% year-over-year versus 2.6% in June and a third quarter Street estimate of 3.5%. Synchrony Financial balances rose 2.3% year-over-year compared to 2.4% in June and a third quarter Street estimate of 3.8%. Bread Financial Holdings balances grew 5.4% year-over-year, up from 4.6% in April but below the third quarter Street estimate of 5.8%.

On a month-over-month basis, balances fell 0.6% at American Express, remained flat at Capital One, and increased 0.4% at both Synchrony Financial and Bread Financial Holdings. This performance was below the historical trend of a 0.5% monthly increase.

Delinquency rates increased 6 basis points month-over-month on average, performing slightly better than seasonal patterns for the fourth consecutive month. American Express U.S. Consumer Services remained flat at 1.10%, Capital One rose 9 basis points to 3.48%, Synchrony Financial increased 4 basis points to 4.20%, and Bread Financial Holdings climbed 10 basis points to 5.35%.

Year-over-year delinquency rates declined 22 basis points, marking the 21st consecutive month of declines for the group.

Net charge-off rates fell 8 basis points month-over-month on average. American Express increased 30 basis points to 1.70%, while Capital One decreased 25 basis points to 4.12%, Synchrony Financial dropped 30 basis points to 4.90%, and Bread Financial Holdings declined 8 basis points to 6.80%.

On a year-over-year basis, net charge-off rates were down 46 basis points. American Express fell 10 basis points, Capital One decreased 71 basis points, Synchrony Financial dropped 20 basis points, and Bread Financial Holdings declined 83 basis points.

Capital One's auto lending segment showed growth of 12.1% year-over-year, up from 11.6% in June and above the third quarter Street expectation of approximately 10% growth. Auto delinquencies fell 66 basis points year-over-year, while net charge-offs decreased 11 basis points year-over-year.

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