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Capital One Financial Corp.'s U.S. Card segment yesterday reported net income of $345 million for the third quarter ended Sept. 30, down 45% from $626.8 million during the same period last year. Cap One's net charge-off rate increased dramatically, to 6.13% of card receivables during the third quarter compared with 3.85% a year ago, and its 30 days-plus delinquency rate increased by 40 basis points, to 4.2% of receivables from 3.8%. "Expected seasonal patterns would result in higher charge-off levels in the fourth quarter, all else equal, and deteriorating economic conditions are likely to manifest in higher charge-offs in the fourth quarter and the first quarter of 2009," Cap One CEO Richard D. Fairbank said yesterday during a conference call. "We expect charge-offs to rise to around 7% for the fourth quarter, and to the mid-7% range for the first quarter of 2009," added Fairbank. Cap One's provision for loan losses jumped 48.7%, to $1.2 billion for the quarter compared with $807 million during the same period last year. Purchase volume declined slightly, to $26.5 billion compared with $26.6 billion a year ago.
