Cap One Credit Cards See Charge-Offs Drop Off

Capital One Financial Corp. (NYSE - COF) reported that the annualized net charge off rate for its U.S. Card division was 6.54 percent in March, down nearly 11 percent from 7.34 percent in February, according to its monthly filing with U.S. Securities and Exchange Commission.

The McLean, Va.-based bank reported average card receivables of $49.8 billion, and net principal charge offs of $271.4 million. Thirty-day delinquencies tallied nearly $2.3 billion, up from $2.1 billion in February. March’s 30-Day delinquency rate was 4.62 percent, down slightly from 4.67 percent in February.

The Auto division held average loans of $24.8 billion in March, and saw principal charge offs of $84.5 million, for an annualized charge off rate of 4.09 percent, according to Cap One. Thirty day delinquencies totaled nearly $1.6 billion for a delinquency rate of 6.42 percent.

For the entire bank, Cap One reported managed loans at the end of March of $148 billion, and net principal charge offs of $508.1 million, or an annualized rate of 4.11 percent. Thirty day delinquencies tallied $5.3 billion for a rate of 3.56 percent.

Capital One also announced this week it is cutting its workforce in the United Kingdom by 40 percent. It will reduce staffing at its European headquarters in Nottingham, England by 750 workers, primarily in its call center and account servicing units. The lender is reducing its staff numbers by 2,000 worldwide, to around 27,000.