Capital One Reports Sharp Increase in Charge-Offs

By Bobby Samwell • Thursday, August 15 07:57 • Permanent Link

Capital One Financial Corporation has reported its monthly charge-off and delinquency metrics for the month ended July 31, 2024. The figures reveal the following changes compared to the previous period:

Credit Card: Net Charge-Offs: Increased from $705 million to $6,366 million Net Charge-Off Rate: Increased from 5.79% to 4.28% 30+ Day Performing Delinquencies: Not available for the previous period Nonperforming Loans: Not available for the previous period

Consumer Banking (Auto): Net Charge-Offs: Increased from $131 million to $4,459 million Net Charge-Off Rate: Increased from 2.11% to 5.97% 30+ Day Performing Delinquencies: Increased from $715 million to $0.96% Nonperforming Loans: Not available for the previous period

The press release also notes that the termination of the Walmart program agreement, effective May 21, 2024, increased the Domestic Card net charge-off rate by 40 basis points for July 2024. Excluding this impact, the Domestic Card net charge-off rate would have been 5.39%.

These metrics indicate significant changes in the company's credit performance, particularly in the credit card and auto loan segments, compared to the previous period. As a result of these announcements, the company's shares have moved 1.5% on the market, and are now trading at a price of $135.95. For the full picture, make sure to review Capital One Financial's 8-K report.

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