Key findings from TransUnion report: Nearly one-in-five Canadians improved their credit score over the past yearCanadian consumer credit delinquencies remained stable as consumers and lenders have adjusted to the evolving economic landscapeCanada’s credit market poised for growth as economic conditions improve, and innovation creates opportunities for expanded credit access TORONTO, Feb. 25, 2026 (GLOBE NEWSWIRE) -- In the fourth quarter of 2025, Canadian household debt reached $2.6 trillion across all cred ...

Core Insights - Financial stress in Canada increased in Q4 2025, but at a slower rate compared to previous years, with older consumers showing resilience while younger consumers and those in Ontario and Western provinces exhibited financial weakening [1] Consumer Debt Trends - Total consumer debt reached $2.65 trillion in Q4 2025, marking a 3.13% year-over-year increase, driven by a $50.26 billion rise in mortgage balances and a 4.50% increase in non-mortgage debt [2] - Delinquency rates for non-mortgage debt rose, with 90+ day delinquency increasing from 1.64% to 1.73%, a year-over-year increase of 5.43% [2] Age Group Analysis - Consumers aged 26 to 35 experienced the highest credit stress, with a delinquency rate of 2.55% and an 8.39% year-over-year decline in credit health [3] Regional Divergence - A "two Canadas" scenario emerged, with Ontario experiencing the fastest growth in non-mortgage delinquency at 10.31% compared to Q4 2024, while regions with better housing affordability like Prince Edward Island and Nova Scotia saw decreases in delinquency rates [4] Credit Card Spending - Credit card spending during the 2025 holiday season decreased by 0.7% year-over-year to $2,297, with younger consumers (aged 26-35) reducing their holiday spending by 2.0% [5] - Despite reduced spending, credit card balances reached a historic $131 billion, an increase of 4.04% [5] Borrowing Power and Credit Access - Lenders tightened access to credit for riskier borrowers, with non-mortgage debt for subprime consumers remaining stagnant, while super prime consumers saw a 6.1% increase in average non-mortgage debt to $20,818 [6] Mortgage Market Dynamics - Total mortgage debt reached $1.95 trillion in Q4 2025, a 2.6% year-over-year increase, with mortgage renewals dominating the market [7] - Average new loan amounts increased by 4.1% to $363,778, with first-time homebuyers facing an average new loan size of $441,301, up 5% [8] Interest Rate Impact - The Bank of Canada's 2.25% policy rate provided some relief, but housing affordability remained strained, particularly in high-priced regions like Ontario and British Columbia [8] - Rising missed payments on higher-value mortgages in Ontario indicated that post-renewal payment levels were too high for some consumers [9]

Core Insights - Capital One (COF) and Synchrony Financial (SYF) are significant players in the consumer finance sector, heavily influenced by consumer credit trends and interest rate environments [1][2] - COF operates as a diversified financial institution, while SYF focuses on private-label and co-branded cards through retailer partnerships [2][3] Capital One (COF) - COF's strength lies in its data-driven, digital-first business model, enhancing customer acquisition and scalable growth [4] - The acquisition of Discover Financial Services for $35.3 billion in May 2025 made COF the largest U.S. credit card issuer by balances [4][5] - COF's inorganic growth strategy includes notable acquisitions like Brex for $5.15 billion, transforming it into a diversified financial services firm [6] - Despite a marginal revenue decline in 2020, COF experienced a five-year CAGR of 13.4% from 2020 to 2025, with positive revenue prospects [7] - COF's net interest income (NII) grew at a CAGR of 13.4% over five years, with NIM expanding to 7.84% in 2025 from 6.63% in 2023 [10] - As of December 31, 2025, COF had total debt of $51 billion and cash equivalents of $57.4 billion, indicating a solid balance sheet [11] - COF restored its quarterly dividend to 80 cents per share in November 2025, following a 75% cut in 2020 [12] - A share repurchase plan of up to $16 billion was authorized in October 2025, reflecting strong earnings and liquidity [13] Synchrony Financial (SYF) - SYF leverages a strong distribution channel to offer a range of products, including private-label credit cards and dual cards [14] - The company has pursued growth through acquisitions and partnerships, including the acquisition of Ally Financial's point-of-sale financing business in 2024 [15][16] - SYF's revenues experienced a five-year CAGR of 5.1% through 2025, driven by strategic partnerships [17] - As of December 31, 2025, SYF had $15 billion in cash and cash equivalents, with total borrowings of $15.2 billion [20] - In Q4 2025, SYF returned $952 million through share buybacks and paid $106 million in dividends [21] Revenue and Earnings Estimates - The Zacks Consensus Estimate for COF's revenues implies year-over-year growth of 18.3% for 2026 and 4.6% for 2027, with upward revisions in earnings estimates [22] - SYF's revenue estimates indicate year-over-year growth of 4.2% for 2026 and 4.8% for 2027, with a projected earnings decline of 1.4% for 2026 [24] - COF shares gained 8.7% over the past year, while SYF shares increased by 13.8%, both underperforming the S&P 500 Index [27] Valuation - COF is trading at a forward P/E of 10.33X, higher than its five-year median of 9.06X, while SYF trades at 7.76X, slightly above its five-year median of 7.45X [29] - COF's premium valuation is justified by its superior growth trajectory compared to SYF [32] Strategic Outlook - SYF's robust liquidity and strong distribution channel contribute to its operational efficiency, though elevated expenses may impact profitability [33] - COF's strategic partnerships and higher credit card demand are expected to support growth, despite potential challenges in profitability margins [34] - Both companies are navigating a volatile macroeconomic environment, with potential caps on credit card interest rates posing risks to interest income [35]

🚨JUST IN: U.S. CONSUMER CREDIT JUMPS SHARPLY, THE LARGEST SINCE 2023Consumer credit rose by $24 billion in December, the largest monthly increase since 2023.This signals stronger household borrowing at year-end. https://t.co/9xU6ZSbiOU ...

Whatever to America or the industry. If there's a 10% cap on credit card rates, as President Trump has proposed. So the only thing I know for sure is that all the credit card businesses in the country lose money. In the credit card business, I get swipe fees.I get most of those away with rewards. I earn credit. When somebody is revolving a balance, I lend credit when somebody pays it at the end of the month.After all that, you charge interest rates, you have losses and you get a margin. Maybe you make 4%, I ...

They have an environment where they think they really can make progress growing their businesses. You got technology innovation that's helping people in their businesses and CEOs are very focused in that. >> Goldman Sachs CEO David Solomon at the World Economic Forum in Davos, Switzerland.A conversation spanning business sentiment, consumer credit, and of course the markets. I think we're set up where we have the possibility for a stronger growth trajectory for the next few years. >> Business people around ...

Google deepens consumer credit push in India with UPI-linked card https://t.co/Dy3C5QaJkZ ...

Consumer Credit - U.S. consumer credit increased by $9.18 billion in October 2025, significantly missing analyst expectations of $11.80 billion and falling from September's $13.09 billion, indicating a potential cooling in consumer borrowing [2][7] - Total U.S. consumer debt reached $18.09 trillion as of October 2025, marking a 2.9% increase year-over-year [3][7] - Outstanding bankcard balances climbed to $1.08 trillion, an increase of 3.7% year-over-year, while auto loans and leases saw a 1.3% rise to $1.685 trillion [3] Regulatory Scrutiny on Tech Giants - Republican Attorneys General launched a probe in May 2025 into Apple (AAPL) and Google (GOOGL) over their handling of Chinese-owned applications like TikTok and Deep Seek, citing data privacy concerns and potential violations of state consumer protection laws [4][7]

Economic Indicators - Consumer price inflation for September and Consumer Sentiment for December will be released on Friday [1] - Delayed Personal Income and Outlays for September are expected to show a 0.4 percent increase [3] - Consumer Sentiment for December has a consensus estimate of 52.0, up from 51.0 in the prior month [3] - Factory Orders for October will also be released, with the previous month showing a 0.2 percent increase [3] - Consumer Credit for October is anticipated to increase by $9.4 billion, down from $13.1 billion in the prior month [4] Market Performance - As of 7.25 am ET, Dow futures gained 45.00 points, S&P 500 futures added 12.00 points, and Nasdaq 100 futures were up 82.75 points [2] - Major U.S. averages finished mostly up on Thursday, with Nasdaq rising 51.04 points (0.2 percent) to 23,505.14 and S&P 500 inching up 7.40 points (0.1 percent) to 6,857.12 [2] - Asian stocks ended mixed, with China's Shanghai Composite index surging 0.70 percent to 3,902.81 and Hong Kong's Hang Seng index up 0.58 percent at 26,085.08 [4][5] - European shares are trading positively, with the CAC 40 Index gaining 29.56 points (0.36 percent), the German DAX adding 154.34 points (0.65 percent), and the Euro Stoxx 50 Index up 23.29 points (0.41 percent) [6]

We serve a customer base we call the middle majority. They or if you think about credit, which we are a credit centric bank, if you've got a lot of money, you don't need a lot of access to credit. You pay cash for car, you save up to send your kids to college.If you're on the other end of the spectrum, you can't really access credit. So there's this middle group that are high income, heavy users of credit so they can afford a car, they can afford to send their kids to school, but they need to use credit to ...