Capital One Credit Card Charge Offs Rise

Capital One Financial Corp. (NYSE: COF) reported today that the annualized charge off rate in May for its credit card portfolio was 6.28 percent, up from 6.08 percent in April. The lender reported the 30 day delinquency rate on its $67.9 billion card portfolio was 3.81 percent in May, down from 3.90 percent in April, according to a filing with the U.S. Securities and Exchange Commission.

The 30 day delinquency rate has fallen incrementally since the beginning of the year. In March, the rate stood at 4.04 percent (“Steady Loan Numbers for Cap One in April,” May 15), while in January it was reported at 4.36 percent. However, the January annualized credit card charge off rate was 5.98 percent.

McLean, Va.-based Cap One also reported that its auto loan portfolio totaled $23.8 billion at the end of May. The annualized net charge off rate on the portfolio was 3.80 percent and the 30 day delinquency rate at the end of the month was 7.27 percent.

In January, the auto loan portfolio recorded annualized charge offs of 4.00 percent and the 30 day delinquency rate was 7.42 percent.

The bank also filed with the SEC on Friday a plan for shareholders to invest their cash dividends or make cash investments in additional Cap One shares. Shareholders may choose to have all or a portion of their cash dividends automatically reinvested in Cap One common stock, investing a minimum of $50 per month up to a maximum of $10,000 per month. Typically, participating shareholders pay no processing or service fees for the transactions.