Capital One’s (COF) international credit card business profits have been weak over the past year, falling by 1.5% from first quarter 2013 and 1.1% since the fourth quarter of last year. However, the net revenue margin for international cards has increased by 37 basis points since the first quarter of 2013.
COF’s end-of-period (EOP) credit card outstandings declined to $7.6 billion in Q1/2014, compared to $8.0 billion in the fourth quarter of 2013 and the first quarter of 2013. On a percentage basis, COF International credit card outstandings declined 5% from the first quarter of last year and the final quarter of 2013.
COF’s average credit card loans declined 6.1% year-on-year (Y/Y) and 2.5% quarter-on-quarter (Q/Q). Average credit card loans for the COF international credit card portfolio stood at $7.7 billion in Q1/2014, $7.9 billion in Q4/2013 and $8.2 billion in Q1/2013.
Purchase volume for COF’s international cards was flat Y/Y at $3.3 billion, but down 15.4% from Q4/2013. COF reported $3.3 in purchase dollar volume for Q1/2014 and Q1/2013, and $3.9 billion for Q4/2013.
Credit quality metrics for COF international credit cards posted a solid improvement as delinquency declined 52 basis points and charge-offs declined 42 basis points, over the past year. Delinquency dropped an impressive 52 basis points to 4.41% in the latest quarter, compared to 4.56% in the prior quarter and 4.93% in the year ago quarter. Charge-offs for COF international credit cards dropped 42 basis points to 4.17%, compared to 4.74% in the final quarter of 2013 and 4.59% in the first quarter of last year.
COF’s international credit card net income (net of tax) declined 1.5% Y/Y and 1.1% Q/Q. COF international card profits fell to $270 million in Q1/2014, compared to $273 million in the prior quarter and $274 million in the year ago quarter.
COF’s net revenue margin jumped 37 basis points in the first quarter of this year to 18.38%, compared to 18.20% in the prior quarter an 18.01% one-year ago.
In the U.K. COF issues the Classic MasterCard and the Vauxhall MasterCard, as well as the Aspire Elite MasterCard.
METRICS:
EOP INTERNATIONAL CREDIT CARD OUTSTANDINGS
Q1/2013: $8.0 billion
Q2/2013: $7.8 billion
Q3/2013: $8.0 billion
Q4/2013: $8.0 billion
Q1/2014: $7.6 billion
AVERAGE INTERNATIONAL CREDIT CARD OUTSTANDINGS
Q1/2013: $8.2 billion
Q2/2013: $8.0 billion
Q3/2013: $7.8 billion
Q4/2013: $7.9 billion
Q1/2014: $7.7 billion
INTERNATIONAL PURCHASE DOLLAR VOLUME
Q1/2013: $3.3 billion
Q2/2013: $3.5 billion
Q3/2013: $3.5 billion
Q4/2013: $3.9 billion
Q1/2014: $3.3 billion
INTERNATIONAL CREDIT CARDS NET INCOME (NET OF TAX)
Q1/2013: $274 million
Q2/2013: $268 million
Q3/2013: $265 million
Q4/2013: $273 million
Q1/2014: $270 million
RESOURCES:
For more data on Capital One’s International Credit Card Business visit CardData®. For information and commentary on Capital One’s International Credit Card Business visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. Custom RAM Research® projects on Capital One’s International Credit Card Business are available exclusively through CardWeb.com.®
