Capital One Financial reported a decline in its credit card delinquency rate in March 2023 compared to the previous month. The domestic credit card delinquency rate decreased to 4.48% from 4.72% in February. However, this rate remains elevated compared to pre-COVID levels of 3.65% in March 2023 and 3.72% in March 2019.
On the other hand, the net charge-off rate experienced a slight increase, rising to 6.15% from 5.95% in February. This is higher than the 3.81% recorded a year ago and 5.15% five years ago. Notably, Capital One’s lending activity continued to expand. Loans held for investment increased by 0.8% M/M and 9.9% Y/Y, reaching $143.9 billion. The company observed growth across various loan categories, reflecting continued customer demand for credit.
Capital One Financial has been actively involved in the financial markets, including a potential merger with Discover Financial Services. The proposed acquisition aims to create a formidable player in the credit card industry. However, the merger has faced regulatory scrutiny and potential challenges. Despite the merger-related developments, Capital One Financial continues to focus on managing its credit risk and maintaining a solid financial position.
Overall, Capital One Financial’s performance in March 2023 exhibited a mixed picture. While the credit card delinquency rate improved, the net charge-off rate increased. Lending activity remained robust, driven by strong customer demand for credit. The company continues to navigate the evolving economic landscape and adapt its strategies accordingly.
