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Despite company predictions last month that charge-offs will peak within the next six months, Capital One Financial Corp. today reported that its U.S. credit card segment's net charge-off rate decreased to 9.04% of managed receivables in October from 9.77% the previous month.
McLean, Va.-based Cap One's 30-day delinquency rate increased to 5.72% from 5.38% in September, according to a company filing with the U.S. Securities and Exchange Commission.
The card unit's net charge-off rate during the third quarter ended Sept. 30 was 9.59% of receivables, up from 6.1% a year ago, while its 30-day delinquency rate increased to 5.53% of receivables from 4.34%.
"We expect to reach the peak of charge-off dollars in the next couple of quarters, ... but to be clear, nearing a peak does not necessarily mean that we're nearing the beginning of a robust recovery," Richard Fairbank, Cap One chairman and CEO, said last month during a conference call with analysts.
