Capital One Financial Corp.'s profit from U.S. and international credit cards declined during the first quarter but purchase volume rose sharply, the company said April 19.

U.S. credit card sector net income was $515 million, down 21.3% from $654 million a year earlier. Revenue for the unit declined less than 1% to $2.21 billion from $2.23 billion.

Purchase volume for U.S. credit cards rose 25.6% to $31.4 billion from $25 billion.

Total U.S. credit card loans held at the end of the period were $53.2 billion, up 5.3% from $50.5 billion. The charge-off rate on outstanding receivables was 3.92%, down 228 basis points from 6.2%.

International credit cards produced income of $51 million, compared with a loss of $11 million a year earlier. Revenues were $380 million, an incremental decline from $381 million.

Purchase volume on international credit cards was essentially flat at $2.8 billion.

Total international card loans held at the end of the period were $8.3 billion, down 4.6% from $8.7 billion a year earlier. The charge-off rate for international cards was 5.52%, down 22 basis points from 5.74%.

Capital One overall posted net income of $1.4 billion, up 37.3% compared with $1.02 billion a year ago, buoyed by the effect of a bargain purchase gain related to its acquisition of ING Direct.

"We now look forward to completing the acquisition of the HSBC US card business in the second quarter," Richard Fairbank, Cap One's chairman and CEO, said in a press release.

 

 

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