Capital One charge-offs up, delinquencies down
Credit card issuer Capital One says that charge-offs in its U.S. card business rose in April, while delinquencies fell.
In an 8-K filing with the Securities and Exchange Commission, Cap One said the annualized net charge-off rate in its U.S. card division (which includes domestic credit cards) increased to 6.08 percent last month. That was up from 6.07 in March and 5.5 percent in February.
Charge-offs are the value of uncollected credit card balances removed from the books and charged against a bank’s loss reserves. The rate is the amount of charge-offs divided by the average outstanding credit card balances owed to the issuer.
Meanwhile, the amount of U.S. card loans 30 days past due lessened, with credit card delinquencies falling in April to 3.9 percent. Last month’s delinquency rate was down from 4.04 percent in March and 4.21 percent in February.
Previously, Cap One’s charge-offs had advanced in the first quarter of 2008 as delinquencies declined.