Capital One: US Credit-Card Delinquencies Decline in May

   By Melodie Warner 
 

Capital One Financial Corp. (COF) said delinquencies at its U.S. credit-card business fell for the fourth-straight month in May from the month earlier, while charge-offs also eased.

Delinquencies and charge-offs, or loans banks don't expect to be able to collect, have continued to recover at many financial institutions, but the progress has been uneven.

Capital One's 30-day delinquency rate for U.S. credit cards fell to 3.14% last month from 3.18% in April, according to a filing with the Securities and Exchange Commission.

At its international credit-card business, the rate decreased to 4.83% from 5.01% a month earlier. Auto-loan delinquencies rose to 5.76% from 5.39%.

Charge-offs at the U.S. card business declined to 3.85% in May from 4.07% a month earlier. Internationally, the rate fell to 5.3% from 6% a month earlier. Auto financing charge-offs were up at 0.97% from 0.8%.

Capital One, which transformed from a credit-card lender to a bank just before the financial crisis hit, has lately benefited from improving credit quality and has been working to expand through acquisitions.

Write to Melodie Warner at [e-mail]