DOW JONES NEWSWIRES
Capital One Financial Corp. (COF) continued to face rising
charge-offs and delinquencies in July.
The credit-card lender turned bank has been struggling with
increasing credit woes in recent months and has seen the economic
slump threaten its balance sheet, leading it to slash its dividend
earlier this year.
In a filing with the Securities and Exchange Commission, Capital
One released data that showed 30-day delinquencies, on a weighted
average across its national lending business, increased in July
from June. Meanwhile, the weighted average for national lending
charge-offs - loans it doesn't think are collectible - also climbed
from June.
Capital One said Monday that within its national lending
business, 30-day delinquencies in its U.S. card segment rose to
4.83% as of July 31, from 4.77% as of June 30, while auto-finance
delinquencies increased to 9.22% from 8.89% and international
delinquencies slipped to 6.68% from 6.69%.
Meanwhile, the charge-offs for U.S. cards rose to 9.83% from
9.73%, while they grew to 4.26% from 3.89% for auto finance and
jumped to 9.76% from 9.26% in the international segment.
Late last week, Barclays Capital said it expected charge-offs to
rise to 9.88% and delinquencies to remain flat at 4.77%. It said
Capital One's management recently indicated they expect U.S. card
charge-offs to rise in the second half as the economy weakens.
Capital One's shares closed Friday at $35.08 and haven't traded
premarket.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com