Captial One posts yet another loss

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Captial One posts yet another loss

April 21, 2009 – 8:41 pm – No Comment

This year Capital One stock has not been “in your wallet” and has lost 52% of its stock value this year. Today it reported its second quarterly loss when it set aside assets for bad loans and delinquencies.

The McLean-based banking and credit card lender had a first-quarter net loss of $111.9 million, or 45 cents per share, compared to net income of $548.5 million, or $1.47 per share in the same quarter a year ago.

Capital One’s local banking business ended the quarter with deposits of $121.1 billion, including $14 billion in deposits from its acquisition of Chevy Chase Bank. As a result, deposits were up 11.5 percent from the fourth quarter.

Capital One’s U.S. credit card charge-off rate climbed to 8.4 percent, up from 8.1 percent in the previous quarter. It says it expects bad credit card debt to continue climbing through 2009 as the economy weakens.

The first-quarter loss followed a $1.4 billion loss in the fourth quarter.

As cliche as it may sound, if Capital One doesn’t get back in the wallets of consumers who will pay the bill, it won’t be in any wallets soon.