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American Express Co. today reported that the managed net charge-off rate on for its U.S. card services fell to 9.9% in June from 10% the previous month, which the company said was better than it had previously expected. The New York-based company's 30-day delinquency rate for managed credit cards fell to 4.4% from 4.7% in May, according to a U.S. Securities and Exchange Commission filing. AmEx said in a statement today that assuming delinquency and bankruptcy trends continue to be below previously expected levels, the company believes that it is "highly likely" that its net write-off rate for the second half of the year will be better than previously forecast. AmEx in April said it expected charge-off rates for the second quarter to increase 200 to 250 basis points above the 8.5% charge-off rate for U.S. card receivables it reported for the quarter ended March 31. Separately, Capital One Financial Corp. yesterday reported that its U.S. credit card segment's net charge-off rate increased to 9.73% of managed receivables in June from 9.41% the previous month. McLean, Va.-based Cap One's 30-day delinquency rate fell for the fourth consecutive month, to 4.77% from 4.9% in May, according to a company filing. The rates were in line with a forecast Keefe, Bruyette & Woods published yesterday in advance of the issuers' filings (CardLine, 7/14). The New York-based equity analysis firm expects credit quality among major card lenders to continue to deteriorate this month, "given the state of the economy and rising unemployment," but delinquency rates in June likely will be flat to slightly higher than in previous months.
