Providian’s securitized charge-off ratio dipped another 42 basis points last month but its ABS delinquency rate moved up by 4 basis points, following eight consecutive monthly declines through June. Charge-offs have declined sharply for the past five months and are down about 400 basis points compared to one-year ago. For securitized receivables, Providian’s charge-off rate decreased to 8.40% for August from 8.82% in July. One-year ago ABS charge-offs were 12.39%. Delinquency, on a securitized basis, increased to 6.71% in August from 6.67% in the prior month, and down from 8.37% in August 2004. On a managed basis, charge-offs dropped to 7.10%, compared to 7.42% in July and 10.09% one-year ago. Delinquency, on a managed basis was flat quarter-to-quarter at 4.96%, and down sharply year-over-year to 6.24%. Providian previously reported that managed loans outstanding at the end of the second quarter were $18.6 billion, up 8.1% year-over-year. For complete details on Providian’s latest performance, visit CardData (www.carddata.com). (CF Library 7/22/05)
PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
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%
Jan 05 11.75% 8.01%
Feb 05 11.03% 7.75%
Mar 05 11.18% 7.23%
Apr 05 10.84% 6.95%
May 05 10.28% 6.49%
Jun 05 9.52% 6.48%
Jul 05 8.82% 6.67%
Aug 05: 8.40% 6.71%
Source: CardData(R) (www.carddata.com)