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Capital One Financial Corp. reported delinquencies on credit card payments continued to rise in July, although loan-loss ratios improved, according to the lender's monthly credit-data filing with the U.S. Securities and Exchange Commission. The July net charge-off ratio in the company's U.S. Card business declined to 6.08% of total receivables, 34 basis points lower than 6.42% in June, breaking with a trend of rising losses in credit card portfolios that many consumer lenders reported in the second quarter. The ratio of Capital One's credit card loans delinquent for more than 30 days rose 11 basis points to 3.96%. Capital One officials have said the lender is preparing for rising credit card loans, and earlier this year the issuer started to curb card lending and work harder to collect outstanding balances from customers. Jeff Norris, the company's head of investor relations, told investors during a conference call last week that Cap One expects credit card losses to remain "in the 6% range, where it is now, but then in [the fourth quarter] rise closer to the 7% range."
