DOW JONES NEWSWIRES
Capital One Financial Corp. (COF) reported a continued increase
in delinquencies for U.S. credit-card customers in August, but
charge-off levels eased from July.
The credit-card lender turned bank in recent months has been
struggling with increasing credit concerns as the recession
threatens its balance sheet. The delinquencies give a glimpse of
issuers' potential losses and how much they may need to set aside
in reserves.
However, last week Citigroup Inc. (C) analysts said Capital One
likely has seen the worst of credit-card charge-offs - loans the
lender doesn't think it can collect but aren't in default yet.
Charge-offs declined to 9.32% in August from 9.83% in July in
its U.S. credit-card business and fell to 8.6% from 9.76%
internationally. However, auto-finance charge-offs rose to 4.31%
from 4.26%, the company said in a filing with the Securities and
Exchange Commission.
In its U.S. credit-card business, 30-day delinquencies rose to
5.09% last month from 4.83% in July, while auto deals were flat at
9.42% and international delinquencies eased to 6.67% from
6.68%.
Shares closed at $38.32 on Monday and didn't trade
premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com