Capital One reported 4Q/02 profits of $239.7 million, a 34.9% increase over the fourth quarter 2001. However, Cap One’s managed net revenue margin decreased to 16.11%, from 17.49% in the previous quarter primarily due to its shift away from the sub-prime market. Cap One’s account base also dropped by nearly 800,000 accounts during the fourth quarter to 47.4 million accounts. The managed net charge-off rate increased to 6.21% in the fourth quarter from 4.96% in the previous quarter. The managed delinquency rate (30+ days) increased to 5.60% for 4Q/02, compared to 5.36% for the third quarter. Cap One says the increase in delinquency and charge-offs reflects the seasoning of sub-prime accounts added to the portfolio in 4Q/01 and early 2002, and the slower growth in the portfolio in the fourth quarter of 2002. The company now expects its managed charge-off rate to increase to the mid-to-high six percent range in the first quarter of 2003 and remain in this range in the second quarter of 2003. In the second half of 2003 the company now expects the charge-off rate to decline to the low-to-mid six percent range. Managed loan balances for EOY 2002 increased by 32%, to $59.7 billion. For complete details on Capital One’s 4Q/02 performance as well as historical performance visit CardData ([www.carddata.com]).