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NEW YORK — American Express said Wednesday its rate of losses from credit card loans is slowing.
The write-off rate on credit card balances was 9.2 percent in July, down from 10 percent for the second quarter, said Joanna Lambert, a spokeswoman for the New York-based company.
The rate is expected to remain below 10 percent in the third and fourth quarters, she said, although it's unclear just how far it will fall.
Credit card loans are written off after consumers are delinquent on numerous payments. Despite the glimmers of improvement in July, the rate of write-offs remains nearly double the 5.3 percent rate in the second quarter of last year.
The more optimistic forecast for the remainder of the year is based on improving early delinquency rates, Lambert said.
She noted that early-stage delinquencies fell after peaking in January of this year. In the second quarter of the year, loans 30 days past due were at 4.4 percent, down from 5.1 percent in the first quarter.
"We're now seeing that drop," Lambert said.
Shares of American Express slid 19 cents to $30.17 in after-hours trading, after closing up $1.65 to $30.36.
For the second quarter, American Express also said its U.S. card services segment reported a loss of $200 million compared with net income of $21 million a year ago. Division revenue fell 22 percent as cardholders spent less and the company held lower loan balances.
