McLEAN, VA. (
Capital One Financial's
credit card charge-offs rose in March after experiencing a decline in the prior month although delinquencies continued to fall in the latest 30-day period.
The credit card company said in a
Securities and Exchange Commission
filing that net charge-offs for its domestic credit card portfolio rose to 10.87%, or $511 million, from 10.19% in
. However, the percentage of delinquencies at least 30 days late fell to 5.30% for March from 5.51% in the prior month. Capital One's average loans held for investment fell 3% in March to $56.39 billion.
Capital One's international credit card metrics, even with the portfolio just one seventh of the company's main credit card portfolio, had similar trends last month. Charge-offs rose to 9.40% from 8.07%, while delinquencies dropped during the month.
Metrics for auto loans also improved last month. Capital One's auto loan net charge-off rate dropped to 2.10% from 2.50% in February. Loans more than 30 days late also fell significantly to 7.58% from 7.99%, the filing said.
While credit card delinquencies and defaults are still at record highs, suggesting that the consumer is still under duress, they also seem to have hit a peak, according to latest industry metrics.
on Wednesday and said net charge-offs represented 10.54% of its Chase-legacy credit card portfolio. That performance represents a 60 basis point negative impact vs. the fourth quarter, reflecting a payment holiday the company implemented last summer. JPMorgan says it expects charge-offs to range around 9.5% on the Chase card portfolio in the second quarter, with declines from there in the second half of the year.
Monthly credit card delinquency data from
should also be filed later today.
Capital One shares have surged 20.2% year-to-date and the stock set a new 52-week-high of $46.06 on Wednesday. It's now up $33.55, or 268%, from its low of $12.51 in April 2009.
The company is scheduled to report its first-quarter results on April 22. The average analysts' is for a quarterly profit of 56 cents a share in March period on revenue of $4.14 billion, according to
. Capital One has beat earnings estimates on the last three of four quarters.
--Written by Laurie Kulikowski in New York.