Capital One (COF) continues to lead the U.S. credit card industry in outstandings and volume growth, posting a strong 12% year-on-year (YOY) gain in end-of-period (EOP) outstandings and a whopping 19% surge in Purchase Dollar Volume (PDV) for the third quarter as other metrics are relatively stable.
As the most U.S. inclusive issuer, COF reported a 16% gain in after-tax profits for the third quarter to $639 million.
PDV rose 19% to $63.8 billion, compared to $62.2 billion in Q2/15 and $53.7 billion in Q3/14.
For Q3/15, COF reported $82.2 billion in EOP outstandings, a 12% YOY increase, compared to $79.0 billion in the prior quarter and $73.1 billion one-year ago. Average outstandings for the period increased 12% YOY to $80.4 billion.
Delinquency (30+ day) rose 7 basis points (bps) YOY and increased 44 bps quarter-to-quarter (QOQ). The 30+ day delinquency rate ended the third quarter at 3.28%, compared to 2.84% in Q2/15 and 3.21% in Q3/14.
Charge-offs nose-dived by 34 bps sequentially, but up 25 bps YOY. Net charge-offs are now running at 3.08%, compared to 3.42% in the prior quarter and 2.83% one-year ago.
COF’s net revenue margin ended the quarter at 17.05%, compared to 16.81% in Q2/15 and 17.41% in Q3/14.
COF’s average yield on its U.S. credit card portfolio for the third quarter stands at 14.35%, compared to 13.95% in the prior quarter and 14.46% one-year ago.
COF U.S. CARD PROFITS
Q3/14: $550 million
Q4/14: $487 million
Q1/15: $621 million
Q2/15: $458 million
Q3/15: $639 million
Source: Capital One
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