Capital One posted a third quarter $290 million profit for its U.S.
Card business. The issuer delivered the significant profit in the face
of rising delinquency and charge-offs, coupled with declining balances
and volume. The profits was driven by an improving revenue margin. COF’s
revenue margin rose 230 basis points from the second quarter to 16.76%.
Purchase volume of $23.8 billion for 3Q/09 was off 10% from the year ago
quarter, but flat compared to the second quarter. U.S. managed card
outstandings declined to $61.9 billion for the third quarter, compared
to $64.8 billion in the previous quarter and $69.4 billion for 3Q/08.
The managed delinquency rate (30+ days) for U.S. credit cards was 5.38%
for the third quarter, compared to 4.77% for 2Q/09 and 4.20% for the
third quarter of 2008. The net charge-off rate for U.S. credit cards was
9.64% for the third quarter, compared to 9.23% for the second quarter
and 6.13% one-year ago. During the quarter Cap One changed its reporting
structure, dividing its business into three segments: Credit Card,
Commercial Banking and Consumer Banking. For complete details on Capital
One’s third quarter performance, visit CardData (www.carddata.com).
COF U.S. CARD NET INCOME
3Q/08: $344.2 million
4Q/08: $-176.3 million
1Q/09: $0.7 million
2Q/09: $166.9 million
3Q/09: $289.8 million
Source: CardData (www.carddata.com)