Capital One (COF) said its credit card charge-offs and delinquencies fell for the sixth straight month in May, a sign consumers are starting to save more money and repay loans.
Continue Reading Below
U.S. charge-offs, or loans banks dont expect they will be able to collect, fell to 4.84% in the four weeks ended May 31 from 4.97% in the month earlier, while international charge-offs edged lower to 6.84% from 7.06%.
Domestic 30-day delinquencies slipped to 3.32% from 3.41% in April and to 5.43% from 5.51% internationally.
But according to the filing with the Securities and Exchange Commission, Capital One saw its auto-finance loans worsen, with charge-offs up to 0.9% from 0.84% last month and delinquencies increasing to 6.35% from 5.84% in April.
Nevertheless, May marked the companys lowest rates for U.S. credit-card charge-offs and delinquencies since 2007.
The card-issuer-turned-bank has seen its financial results gradually improve as it continues to minimize losses left from souring loans during the recession. In April, Capital One booked a 60% rise in its quarterly profit and set aside significantly less for loan losses.