Cap One’s Metrics March North in Dec

Capital One’s charge-off ratio jumped sharply in December, posting its highest level in eight months. Delinquency also increased, albeit slowly, by five basis points. The uptick came at a time when total loans increased more than $2 billion over the previous month. For December, Cap One reported that managed charge-offs increased to 4.63%, compared to 4.35% in November, and 5.10% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. Delinquency increased to 3.92% for December, compared to 3.87% for November, 3.94% in October, 3.90% for September, 3.80% in August, 3.77% in July, 3.76% in June, 3.73% in May, and 3.69% in April. Delinquency one-year ago stood at 4.46%. At the end of December, Capital One had $79.9 billion in global outstandings. At the end of the fourth quarter, U.S. card outstandings of $48.6 billion were up 5%, compared to one-year ago, and to the previous quarter. For complete details on Capital One’s monthly metrics and 4Q/04 performance, visit CardData ([www.carddata.com][1]).

Capital One 2003-2004
Month Charge-offs Delinquency
Dec 03 5.10% 4.46%
Jan 04 5.00% 4.39%
Feb 04 4.75% 4.14%
Mar 04 4.74% 3.80%
Apr 04 4.70% 3.69%
May 04 4.40% 3.73%
Jun 04 4.17% 3.76%
Jul 04 4.10% 3.77%
Aug 04 3.87% 3.80%
Sep 04 4.18% 3.90%
Oct 04 4.10% 3.94%
Nov 04 4.35% 3.87%
Dec 04 4.63% 3.92%
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Cap One’s Profits Dip as Marketing Soars

Capital One’s fourth quarter U.S. card profits plunged by 37% year-over-year, as global marketing expenses soared 76%, and overall provision expenses for loan losses increased 20%. U.S. card outstandings of $48.6 billion were up 5% compared to one-year ago and to the previous quarter. For the fourth quarter, COF posted net income for U.S. cards of $201.9 million, compared to $414.1 million in the third quarter, and $322.7 million one-year ago. Globally, Cap One’s net income was $195.1 million, a 27% drop from 4Q/03. Marketing expenses hit $511.1 million in the fourth quarter, compared to $290.1 million one-year ago. The Company continued with its extensive “No Hassle” U.S. television advertising campaign in the fourth quarter, now featuring its new “PrimeLock” offer. Total provision for loan losses was $467.1 million, compared to $390.4 million for 4Q/03. The managed delinquency rate (30+ days) for U.S. credit cards was 3.97% for the fourth quarter, compared to 4.14% for 3Q/04, and 4.60% for the fourth quarter of 2003. The net charge-off rate for U.S. credit cards was 4.93% for the fourth quarter, compared to 4.68% for the third quarter, and 6.16% one-year ago. During the fourth quarter, total managed loans grew $4.4 billion from the prior quarter to $79.9 billion, a 12% annual gain. In the fourth quarter, the company completed the sale of its French loan portfolio and recorded a gain of $41.1 million. This month, the Company completed its acquisition of HFS, Onyx, and InsLogic. For complete details on Capital One’s fourth quarter performance visit CardData ([www.carddata.com][1]).

COF U.S. CARD NET INCOME
4Q/03: $322.7 million
1Q/04: $386.8 million
2Q/04: $384.1 million
3Q/04: $414.4 million
4Q/04: $201.9 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Chase Credit Card Loans Climbs 5%; Volume Up 9%

J.P. Morgan Chase reported this morning that credit card profits for the fourth quarter were $515 million on revenues of $3.83 billion. Managed card loans of $135.4 billion were up 5% year-on-year, and up 3% sequentially. During the fourth quarter, Chase added 2.73 million net new credit card accounts, ending the quarter with 94.3 million cards in-force. Charge volume for the fourth quarter was $75.3 billion, compared to $69.1 billion one-year ago. The managed net charge-off ratio for the quarter declined to 5.24%, from 5.48% in the prior year, and increased from 4.88% in the prior quarter due to seasonally higher losses. The 30-day managed delinquency ratio was 3.70%, down from 4.21% in the prior year, and 3.81% in the prior quarter due to improved credit quality. Bank card volume for Chase’s merchant acquiring business was $135.9 billion with 4.5 billion transactions. Chase also reported that it ended the quarter with 8,392,000 debit cards. For complete details on Chase’s fourth quarter performance, visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

Providian’s Charge-Offs Resume a Decline

Losses for Providian’s credit card ABS dropped by 41 basis points in December, and delinquency edged down by 21 basis points. Since the start of this year, delinquency has collapsed by 342 basis points, and charge-offs have declined 563 basis points for the issuer’s card bonds. Charge-offs decreased to 11.73% in December, compared to 12.14% during November. One-year ago, Providian’s securitized charge-off ratio stood at 17.55%. Delinquency ticked down to 8.06% during December compared to 8.27% during November. One-year ago, Providian’s securitized delinquency ratio stood at 11.94%. Providian will release its managed charge-off and delinquency data with its fourth quarter earnings report on January 20th. For complete details on Providian’s latest performance, visit CardData ([www.carddata.com][1]).

PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
Jan 04 17.36% 11.48%
Feb 04 16.08% 11.07%
Mar 04 17.17% 9.56%
Apr 04 15.84% 9.09%
May 04 14.82% 8.68%
Jun 04 14.44% 8.40%
Jul 04 13.17% 8.42%
Aug 04 12.39% 8.37%
Sep 04 12.45% 8.30%
Oct 04 12.11% 8.48%
Nov 04 12.14% 8.27%
Dec 04 11.73% 8.06%
Source: CardData(R) (www.carddata.com)

[1]: http://www.carddata.com

Sub-Prime Delinquency Hits a 3-Year Low

Credit card charge-offs, among “prime” asset-backed securities, rose 35 basis points, as the 60+ day delinquency ratio inched up 8 basis points during November. “Sub-prime” ABS metrics also showed an upturn in charge-offs of 24 bps, however, late stage delinquencies among “sub-prime” borrowers fell sharply to in November to the lowest level since December 2001. According to Fitchratings, “prime” charge-offs for November were 6.08%, compared to 5.73% in October, and 6.26% one-year ago. The “prime” 60-plus day delinquency index for November was 3.01%, compared to 2.93% in October, and 3.45% one-year ago. “Sub-prime” charge-offs for November were 14.94%, compared to 14.70% in October, and 17.30% one-year ago. The “sub-prime” 60-plus day delinquency index for November was 8.16%, compared to 8.93% in October, and 9.99% one-year ago.

ABS CHARGE-OFFS HISTORICAL
Prime Sub-Prime
Nov 03: 6.26% 17.30%
Oct 04: 5.73% 14.70%
Nov 04: 6.08% 14.94%
Source: FitchRatings

Discover’s Card Profits Rise 33% in Q4

Morgan Stanley reported this morning that its Credit Services division, including the “Discover Card,” posted $279 million in pre-tax profits for the quarter ending August 31st, compared to $209 million for the year-ago quarter. Managed outstandings were flat for the fourth quarter, transaction volume increased nearly 12%, and delinquency and charge-offs fell sharply compared to one-year ago. Merchant and cardholder fees declined 5% to $485 million, due to lower over-limit and late payment fees. Managed credit card loans of $48.3 billion at quarter end were down slightly from one-year ago. Total transaction volume increased 11.7% to $25.7 billion, the second highest quarterly volume ever. The account base expanded during the fourth quarter by 200,000 accounts. Active accounts declined 5% from 4Q/03 to 19.7 million. The credit card net charge-off rate was 5.45%, 142 basis points lower than a year ago, and down 31 basis points from the prior quarter. The charge-off ratio was the lowest in three years. The over-30-day delinquency rate also declined 142 basis points from 4Q/03 to 4.55%, and the over-90-day-delinquency rate declined 64 basis points over the same period to 2.19%. For complete details on Discover’s fourth quarter performance visit CardData ([www.carddata.com][1]).

DISCOVER CARD PORTFOLIO SNAPSHOT
4Q/03* 1Q/04* 2Q/04* 3Q/04* 4Q/04* Y/Y CHNG
Outstandings: $48.4b $47.3b $46.8b $47.1b $48.3b -0.2%
Volume: $23.0b $24.2b $24.4b $25.4b $25.7b +11.7%
Accounts: 46.1m 45.9m 46.0m 46.0m 46.2m -0.2%
Actives: 20.8m 20.3m 19.9m 19.6m 19.7m -5.2%
Chargeoffs: 6.87% 6.31% 6.48% 5.76% 5.45% -142bps
**Delinquency: 5.97% 5.80% 4.88% 4.81% 4.55% -142bps
Yield: 12.05% 12.20% 11.88% 11.69% 11.59% -46bps
* 4Q/03 ended 11/30/03; 1Q/04 ended 2/29/04; 2Q/04 ended 5/31/04; 3Q/04 ended
8/31/04; 4Q/04 ended 11/30/04. ** delinquency is 30 day only; excludes 90 day
rate. Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

MBNA Managed Loans Up But Delinquency Grows

MBNA’s managed consumer credit card delinquency slipped upward for the fourth consecutive month as charge-offs edged down. The nation’s third largest issuer posted managed credit card outstandings in November of $99.9 billion, about $1.4 billion more than October, but down $3.2 billion since the start of the year. MBNA’s consumer credit card outstandings peaked in December. Delinquency for consumer credit cards increased to 4.21% during November, compared to 4.18% during October, and compared to a 2004 high of 4.49% in February. Charge-offs dipped to 4.33% in November, compared to 4.36% for October. In May, MBNA’s charge-off rate was 4.88%, the high for the year. MBNA recently reported that domestic credit card loans for the third quarter were $79.7 billion, compared to $81.6 billion one-year ago. For complete details on MBNA’s third quarter results and monthly metrics, visit CardData ([www.carddata.com][1]).

MBNA CONSUMER CREDIT CARD SNAPSHOT
Month Outstandings Charge-offs Delinquency
Jan 04 $103.1b 4.77% 4.34%
Feb 04 $ 99.6b 4.71% 4.49%
Mar 04 $ 99.1b 4.79% 4.27%
Apr 04 $ 98.0b 4.70% 4.21%
May 04 $ 98.5b 4.88% 4.15%
Jun 04 $ 99.4b 4.64% 4.10%
Jul 04 $ 99.5b 4.52% 4.00%
Aug 04 $ 99.7b 4.52% 4.01%
Sep 04 $ 98.8b 4.22% 4.15%
Oct 04 $ 98.5b 4.36% 4.18%
Nov 04 $ 99.9b 4.33% 4.21%
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Providian Charge-Offs Tick Up but Down 522bps YTD

Losses for Providian’s credit card ABS inched up by 3 basis points in November, however, delinquency edged down by 21 basis points. On a managed basis, the issuer’s charge-off ratio climbed 31 basis points and the delinquency ratio declined by 1 basis point. Since the start of this year, delinquency has collapsed by 321 basis points, and charge-offs have declined 522 basis points for the issuer’s card bonds. Charge-offs increased to 12.14% in November, compared to 12.11% during October. One-year ago, Providian’s securitized charge-off ratio stood at 16.16%. Delinquency ticked down to 8.27% during November compared to 8.48% during October. One-year ago, Providian’s securitized delinquency ratio stood at 12.27%. Providian’s managed charge-offs for November was 10.26%, and 30+ day delinquency stood at 6.34%. For complete details on Providian’s latest performance, visit CardData ([www.carddata.com][1]).

PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
Jan 04 17.36% 11.48%
Feb 04 16.08% 11.07%
Mar 04 17.17% 9.56%
Apr 04 15.84% 9.09%
May 04 14.82% 8.68%
Jun 04 14.44% 8.40%
Jul 04 13.17% 8.42%
Aug 04 12.39% 8.37%
Sep 04 12.45% 8.30%
Oct 04 12.11% 8.48%
Nov 04 12.14% 8.27%
Source: CardData(R) (www.carddata.com)

[1]: http://www.carddata.com

Cap One Delinquency Dips; Loans Rise $1.8B

After six consecutive monthly increases, Capital One’s delinquency ratio headed south in November, falling 7 basis points. The declined was helped by a $1.8 billion boost in total managed loans in November, compared to a $455 million gain in October. However, charge-offs headed north climbing 25 basis points last month. For November, Cap One reported that managed charge-offs increased to 4.35%, compared to 4.10% in October, and 5.57% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. Delinquency decreased to 3.87% for November, compared to 3.94% for October, 3.90% for September, 3.80% in August, 3.77% in July, 3.76% in June, 3.73% in May, and 3.69% in April. Delinquency one-year ago stood at 4.46%. At the end of November, Capital One had $77.7 billion in global outstandings. At the end of the third quarter, Cap One had $46.1 billion in U.S. card loans, compared to $45.2 billion in the second quarter. For complete details on Capital One’s monthly metrics and 3Q/04 performance, visit CardData ([www.carddata.com][1]).

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Capital One 2003-2004
Month Charge-offs Delinquency
Nov 03 5.57% 4.46%
Dec 03 5.10% 4.46%
Jan 04 5.00% 4.39%
Feb 04 4.75% 4.14%
Mar 04 4.74% 3.80%
Apr 04 4.70% 3.69%
May 04 4.40% 3.73%
Jun 04 4.17% 3.76%
Jul 04 4.10% 3.77%
Aug 04 3.87% 3.80%
Sep 04 4.18% 3.90%
Oct 04 4.10% 3.94%
Nov 04 4.35% 3.87%
Source: CardData (www.carddata.com).

[1]: http://www.carddata.com
[2]: /images/g/graphs/cofperformance_nov04.jpg

Metris Continues to Gather Strength

Metris Companies has increased its liquidity and has made an early payment on a $300 million term loan. During the third quarter Metris returned to profitability after a $70 million loss in the prior quarter. The issuer has gathered financial strength with positive trends in delinquencies, default rates, and payment rates. The managed net charge-off rate for the third quarter was 14.6%, compared to 17.0% in the previous quarter, and 22.9% for 3Q/03. The managed delinquency rate was 9.7% as of September 30th, compared to 9.4% at the end of the second quarter, and 11.1% one-year ago. The Company’s managed credit card loans for 3Q/04 were $6.8 billion, compared to $7.1 billion in 2Q/04, and $8.1 billion as of December 31, 2003. For complete details on Metris’ third quarter results visit CardData ([www.carddata.com][1])

[1]: http://www.carddata.com

Providian’s Charge-Offs Down 525 bps in 04

Losses for Providian’s credit card ABS dropped 34 basis points in October, however, delinquency edged up 18 basis points. Since the start of this year, delinquency has collapsed by 300 basis points, and charge-offs have declined 525 basis points for the sub-prime specialist. Charge-offs dropped to 12.11% in October, compared to 12.45% during September. One-year ago, Providian’s securitized charge-off ratio stood at 17.19%. Delinquency ticked up to 8.48% during October compared to 8.30% during September. One-year ago, Providian’s securitized delinquency ratio stood at 12.38%. Providian’s managed charge-offs for October was 9.95%, and delinquency stood at 6.41%. For complete details on Providian’s latest performance, visit CardData ([www.carddata.com][1]).

PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
Jan 04 17.36% 11.48%
Feb 04 16.08% 11.07%
Mar 04 17.17% 9.56%
Apr 04 15.84% 9.09%
May 04 14.82% 8.68%
Jun 04 14.44% 8.40%
Jul 04 13.17% 8.42%
Aug 04 12.39% 8.37%
Sep 04 12.45% 8.30%
Oct 04 12.11% 8.48%
Source: CardData(R) (www.carddata.com)

[1]: http://www.carddata.com