Among the biggest bank credit card issuers in the U.S., Capital One (COF) continues to lead the way in every metric, except charge-offs. Based on fourth quarter (4Q/16) figures COF surpassed Bank of America (BAC) as the nation’s second largest issuer, by $5 billion, according to CardData.
COF posted double digit year-on-year (YOY) gains in outstandings (OUT) and purchase dollar volume (PDV) for the fourth quarter (4Q/16).
However, the charge-off (CO) ratio has been steadily rising and remains well above industry averages, reflective of its “lower-prime” cardholder base. Furthermore, COF credit card margins have been falling.
COF U.S. card revenue rose 9.4% YOY to $3881 million, compared to $3715 million in the prior quarter and $3548 million for the year ago quarter. For 2016, COF averaged $3672 million per quarter.
COF card income sank -1.8% YOY to $505 million, compared to $527 million in the prior quarter and $514 million for the year ago quarter. For 2016, COF averaged $515 million per quarter.
End-of-Period (EOP) U.S. credit card outstandings soared by 10.5% YOY, compared to 14.2% YOY growth for 3Q/16. At the end of 4Q/16 COF had $97.1 billion in U.S. EOP credit card outstandings, compared to $91.0 billion at the end of the prior quarter and $87.9 billion at the end of the year ago quarter.
Average U.S. credit card outstandings increased 10.5% YOY. During the fourth quarter COF had $92.6 billion in U.S. average credit card OUT, compared to $89.8 billion for 3Q/16 and $83.8 billion for 4Q/15.
COF U.S. credit card PDV jumped 10.0% YOY to $75.6 billion, compared to $71.3 billion for 3Q/16 and $68.7 billion for 4Q/15.
COF U.S. card delinquency increased sequentially and YOY, in 4Q/16.
COF U.S. consumer credit card 30+ day delinquency increased 56 basis points (bps) YOY, and up 27 bps Quarter-To-Quarter (QTQ) for 4Q/16. The issuer reported a 30+ day DEL ratio of 3.95% for 1Q/16, compared to 3.68% for 3Q/16 and 3.39% for 4Q/15. (COF does not report 90+ day delinquency)
The COF U.S. consumer credit card charge-off (CO) ratio for . . . .