IMGCAP(1)]
Bank of America Corp. announced its global card services division posted a net loss of $1.04 billion during the third quarter ended Sept. 30. The unit posted a $167 million net loss during the same period a year ago.
The issuer charged off $5.48 billion of net managed card receivables, up 82.7% from $3 billion a year earlier. The net charge-off rate on those receivables was 12.9%, up 650 basis points from 6.4% during the same quarter a year ago. The company said it increased its provision for loan losses to $6.98 billion, up 24.6% from $5.6 billion.
BofA's most-recent data show some improvement in credit card delinquencies, giving the company reason to be "cautiously optimistic" that losses may be stabilizing, Joe L. Price, BofA chief financial officer, said during a conference call with analysts.
