Capital One (COF) continues to lead the U.S. credit card industry in outstandings and volume growth, posting a strong 11% year-on-year (YOY) gain in end-of-period (EOP) outstandings and a whopping 18% surge in Purchase Dollar Volume (PDV) for the second quarter.
COF reported a 24.5% YOY decline in Q2/15 after-tax U.S. bank credit card profits to $458 million, compared to $621 million in the prior quarter and $607 million in the year ago quarter. Mostly attributable to the restructuring charges.
PDV rose 18.0% to $62.2 billion, compared to $52.0 billion in Q1/15 and $52.7 billion in Q2/14.
For Q2/15, COF reported $79.0 billion in EOP outstandings, an 11% YOY increase, compared to $74.1 billion in the prior quarter and $71.2 billion one-year ago. Average outstandings for the period increased 9% YOY to $75.9 billion.
Delinquency (30+ day) rose 1 basis points (bps) YOY and decreased 8 bps quarter-to-quarter (QOQ). The 30+ day delinquency rate ended the second quarter at 2.84%, compared to 2.92% in Q1/15 and 2.83% in Q2/14.
Charge-offs edged down by 13 bps sequentially, and down 10 bps YOY. Net charge-offs are now running at 3.42%, compared to 3.55% in the prior quarter and 3.52% one-year ago.
COF’s net revenue margin ended the quarter at 16.81%, compared to 16.93% in Q1/15 and 17.07% in Q2/14.
COF’s average yield on its U.S. credit card portfolio stands at 13.95%, compared to 14.23% in the prior quarter and 13.95% one-year ago.
COF U.S. CARD PROFITS
Q2/14: $607 million
Q3/14: $550 million
Q4/14: $487 million
Q1/15: $621 million
Q2/15: $458 million
Source: Capital One
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