Credit Stress Eases in Cards, CRE

Credit card net charge-offs fell by 56 basis points in the second quarter to 4.15%, their lowest level in six quarters, S&P Global Market Intelligence wrote. Delinquency rates also improved (particularly among younger borrowers), falling 18 basis points to 2.98%. Economists attribute the trend to resilient household income offsetting slower job growth.

Another S&P article noted the first decline in commercial real estate delinquencies since 2022, as banks reduced problem loans and market strains in the office and multifamily sectors eased.