Credit performance weakens in Q1: DBRS

Amid ongoing economic strains, credit card delinquencies ticked up and net losses edged higher in the first quarter, according to a new report from Morningstar DBRS.

In its latest report on securitized credit card portfolios, DBRS said credit performance in Canada weakened to start 2026.

At the end of first quarter, the 30-day-plus delinquency rate came in at 2.1%, which was up from 2% in the prior year. And, net losses increased to an average of 3.5% across the quarter, up from 2.9%in the same quarter last year.

This deterioration came in the midst of a “challenging” macroeconomic environment, DBRS said.

“U.S. trade policies, concerns over inflationary pressures driven by elevated oil prices, and slower population growth have collectively dampened business and consumer confidence, contributing to a soft labour market,” it said.

Additionally, household financial conditions “remain strained,” DBRS said, particularly for lower-income households, which is driving an increase in consumer insolvency filings.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.