Capital One Reports Less Credit Card Defaults in May
Net credit card charge-offs in its U.S. operations were 9.48 percent on an annual basis in May, down from 9.68 percent in April, Capital One said in a regulatory filing Tuesday. Charge-offs are credit card loans that issuers do not expect to be repaid and write off their books as a loss. Typically, credit card companies write off loans after 180 days have passed from the date of the last payment on the account.
Capital One’s 30-day delinquency rate also decreased. In May, the rate of payments late by 30 or more days was 4.80 percent, compared with 5.07 percent in March, according to the bank’s report.
In its international operations, Capital One’s charge off rate also fell – to an annualized 8.21 percent from 8.60 percent. The bank’s international 30-day delinquency rate was down to 6.08 percent in May from 6.28 percent in April.
Capital One is the nation’s third largest issuer of Visa credit cards and the fifth largest issuer of MasterCard-branded credit cards. The issuer purchased Chevy Chase Bank in early 2009 and will officially re-brand Chevy Chase’s 247 branches in the fall.
(Via Reuters.com)
