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Capital One delinquencies increased in September

Oct 28, 2011 Philip Burgess

Capital One delinquencies increased in September
Credit card issuers Capital One reported an uptick in credit card delinquencies last month, despite a continued decline in charge-offs, offering a mixed depiction of the state of consumer health and activity.
 September net charge-offs dropped to 3.9 percent at Capital One's U.S. branch, down from 4.1 percent the month before. Internationally, the Securities and Exchange Commission reported a drop from 6.21 percent to 5.65 percent, while auto-finance charge-offs fell to 1.34 percent from 1.94 percent. "Capital One, which transformed itself from a credit card lender to a bank just before the financial crisis hit, has lately benefited from improving credit quality," reports Dow Jones Newswires. "In July, the company reported its second-quarter earnings rose 50 percent, beating analysts' estimates, as it booked lower loan loss provisions and saw a decline in net charge-offs." Wider consumer credit has been slowly showing signs of improvement in recent months. Earlier this month, the U.S. Federal Reserve reported a $9.5 billion decrease in consumer credit in August, following a $11.9 billion surge the month before.