Charge-offs drop in December, Capital One says
by Clinton Hultman | January 31, 2011 - 6:00pm ET
Major U.S. credit card lender Capital One Financial reported consumers made more timely payments to lenders despite the temptations of the holiday spending season.
Charge offs and delinquencies on the company's accounts dropped again in December,
after fluctuating in recent months.
Capital One said charge offs, which are loans the bank belives it cannot collect, dropped to 7.01 percent for the month, down sharply from the 7.56 percent observed in November. Similarly, international users made more timely payments as well, reducing the rate of charge offs from 6.65 to 6.46 percent during that time, according to Dow Jones Newswires.
Consumers also took steps to make payments on their credit card balances, as 30-day delinquencies to the company fell from 4.26 in November to 4.09 percent in December, the news source says. In addition, there was a 0.06 percentage point decline on international accounts during this period.
Recently, the company's revenue stream has benefited from improvements in consumer payment activity. In October, its third-quarter profit more than doubled as it experienced fewer losses due to the coverage of unpaid consumer loans.
Charge offs and delinquencies on the company's accounts dropped again in December,
after fluctuating in recent months.Capital One said charge offs, which are loans the bank belives it cannot collect, dropped to 7.01 percent for the month, down sharply from the 7.56 percent observed in November. Similarly, international users made more timely payments as well, reducing the rate of charge offs from 6.65 to 6.46 percent during that time, according to Dow Jones Newswires.
Consumers also took steps to make payments on their credit card balances, as 30-day delinquencies to the company fell from 4.26 in November to 4.09 percent in December, the news source says. In addition, there was a 0.06 percentage point decline on international accounts during this period.
Recently, the company's revenue stream has benefited from improvements in consumer payment activity. In October, its third-quarter profit more than doubled as it experienced fewer losses due to the coverage of unpaid consumer loans.
Article filed under: News & Reviews
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