Signs of improvements in the credit card industry continued Thursday with American Express Co. and Capital One Financial Corp. reporting significant improvements in delinquencies and chargeoffs.
Amex, which said its net income rose more than 200% from a year earlier, to $1.02 billion, said its net chargeoff rate for U.S. cards fall to 6.2%, from 10% a year earlier.
The New York company's 30-day-plus delinquency rate for U.S. cards fell to 2.7% from 4.4%.
As a result the improved conditions, Amex's provision for U.S. card losses declined 56%, to $519 million.
Capital One noted similar trends in its domestic card business during the second quarter.
The McLean, Va., banking company's net income for domestic cards rose 189% year over year, to $483 million.
The net chargeoff rate was 9.5%, up from 9.2% in the year-earlier quarter but down from 10.5% in the previous quarter.
Its 30-day-plus delinquency rate fell to 4.8%, from 5.3% in the previous quarter, but was flat with a year ago.
Its provision for domestic card losses was $675 million, down from $1.34 billion a year earlier.