Global Credit Trends

   North America

 Canada: Overall demand for new credit has slowed, with new originations falling for most non-mortgage credit products. This reflects a greater caution from both consumers and lenders, with new credit now limited to the lowest-risk consumers. The mortgage market was heavily influenced by renewals and refinancing of existing loans, which were up significantly. There were limited number of new buyers, especially in major markets like Ontario and British Columbia.

  South America

 Argentina: A continued decrease in demand, caused by a decline in consumption recorded in June.

 Ecuador: Non-mortgage inquiries increased 1.2% compared to Q1’25, trending towards the levels of the prior year.

 Brazil: In Q2'25, credit demand has moderated compared to the previous quarter. While credit growth remains positive, the pace has slowed, a trend that began in 2H’24. This is a result of a tight monetary policy environment and a more cautious approach from lenders.

   Europe

  Spain: Credit demand increased in 1H’25, particularly in home acquisition loans, thanks to lower interest rates, favorable expectations in the housing market, and greater consumer confidence.

  Oceania

  Australia: Mortgage demand saw a consistent 5% YoY increase for 1H’25, largely due to two rate cuts. Refinancing and upgrading existing mortgages were the primary drivers of this activity, while new mortgage originations are anticipated to rise later. Proactive debt consolidation accelerated in 2025, leading to a net decrease of 4.2% in active credit card accounts YoY.

  New Zealand: In 1H’25, mortgage inquiry volumes were up 15.9% year-over-year, largely due to a competitive market and increased borrower comparison shopping. Meanwhile, credit card inquiries stabilized towards the end of the first half, remaining 8.9% higher than the previous year.

  India: Overall demand for mortgages soften notably compared to last quarter, while non-mortgage lending remained resilient.

   Card Utilization

  United States: The typical utilization climb is significantly slowing as 1H’25 is down approximately 300 bps YoY.

  Canada: Credit card utilization rates continued to fall, as rising credit limits outpaced the growth in balances.

  Argentina: Credit card utilization has remained stable, a trend primarily supported by both debt and credit limit consistency. Consumers are not significantly increasing their spending or leveraging their full borrowing capacity.

  Ecuador: Credit card utilization remains stable, supported by steady debt and limits.

  India: Credit cards within the open market segment declined in 1H’25, resulting in both lower acquisitions and also lower limits on new acquisitions.

   Card Delinquency

 United States: Credit card 90+ day delinquency continues to decrease, in both dollars (5%) and number of accounts (6%), to be comparable to late 2023 / early 2024 levels.

 Canada: Credit card delinquency rates continued to rise, with younger consumers, especially those under 25, experiencing the highest delinquency rates and the fastest increase in missed payments.

 Brazil: Credit card interest rates, particularly for revolving credit, have reached historic highs. According to the Central Bank, the average interest rate on revolving credit climbed to nearly 450% annually by May ‘25. This makes it difficult for borrowers to pay off their debt, directly contributing to higher delinquency.

 Australia: Early credit card delinquencies remain high, reflecting continued consumer pressure. While 90+ delinquency rates were stable in 1H’25, a jump in total credit limits in late delinquency highlights increasing financial stress for cardholders with larger lines.

   North America

  United States: Non-mortgage delinquencies continue to decrease YoY mostly due to installment (8%) while auto remains flat. Mortgage delinquencies (0.68%) continue to climb to pre-pandemic levels (0.80%). Mortgage delinquent accounts (0.72%) are increasing, but not as close (0.86%).

  Canada: Despite early signs of stabilization, consumer credit performance remains strained. Close to 1.4 million Canadians missed a credit payment in Q2’25, a number that was 7K fewer than Q1’25 but still 118K higher YoY.

  South America

  Argentina:  The rise in delinquency is due to recurring late payments, a symptom of underlying issues related to wage stagnation and the ongoing inflation.

  Ecuador:  Delinquency rates remain relatively stable, with a subtle decline across different products.

  Brazil:  The overall delinquency rate should remain stable for the rest of 2025, based on a resilient labor market and continued high interest rates, which pressure borrowers, but also encourage a more cautious approach to new debt.

   Europe

  United Kingdom: Following a mixed picture at the start of the year, delinquency rates have since stabilized. This welcome development suggests the market is finding its footing, as consumers continue to adapt to the financial climate and resume the positive trajectory observed at the end of 2024.

  Oceania

  Australia:  Despite the relief provided by rate cuts, signs of lingering financial stress persist. A key trend has emerged across mortgages, credit cards, and personal loans, where the dollar value of delinquent accounts is rising for Q2’25 (+10.1% , +9.6% , and +22.2% respectively), even as the rate of delinquent accounts remains stable or improves.

  New Zealand:  Late-stage mortgage delinquencies remained consistent in 1H’25. The overall trend, which had been steadily increasing, now appears to have peaked and is showing signs of decline.

  India:  Credit cards continue to be the highest risk segment, mortgages are showing a gradual but notable rise in stress, while auto loan delinquencies remain elevated but more stable.