Capital One (COF) continues to lead the U.S. credit card industry in outstandings and volume growth, posting a strong 13% year-on-year (YOY) gain in end-of-period (EOP) outstandings and a whopping 18% surge in Purchase Dollar Volume (PDV) for the fourth quarter.
As the most U.S. inclusive issuer, COF U.S. cards reported a 6% YOY gain in after-tax profits for the fourth quarter to $514 million.
PDV rose 18% YOY to $68.7 billion, compared to $63.8 billion in 3Q/15 and $58.2 billion in 4Q/14.
For 4Q/15, COF reported $88.0 billion in EOP outstandings, a 13% YOY increase, compared to $82.2 billion in the prior quarter and $77.7 billion one-year ago. Average outstandings for the period increased 13% YOY to $83.8 billion.
Delinquency (30+ day) rose 12 basis points (bps) YOY and increased 11 bps quarter-to-quarter (QOQ). The 30+ day delinquency rate ended the fourth quarter at 3.39%, compared to 3.28% in 3Q/15 and 3.27% in 4Q/14.
Charge-offs rocketed by 67 bps sequentially, and up 36 bps YOY. Net charge-offs are now running at 3.75%, compared to 3.08% in the prior quarter and 3.39% one-year ago.
COF’s net revenue margin ended the quarter at 16.95%, compared to 17.05% in 3Q/15 and 17.29% in 4Q/14.
COF’s average yield on its U.S. credit card portfolio for the fourth quarter stands at 14.31%, compared to 14.35% in the prior quarter and 14.43% one-year ago.
COF U.S. CARD PROFITS
4Q/14: $487 million
1Q/15: $621 million
2Q/15: $458 million
3Q/15: $639 million
4Q/15: $514 million
Source: Capital One
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