Capital One’s loan charge-offs surge 54% in Q4
Amount of credit cards and consumer loans getting written off approaches pre-pandemic levels
Capital One absorbed $1.4 billion in charge-offs during the last three months of 2022, a 54% sequential increase that bodes ill for both its loan book and US consumers’ resilience.
At 1.86%, the annualised net charge-off rate was up 62 basis points from end-September and 107bp from end-December 2021. The rate stood at a 0.67% multi-year nadir as recently as September 2021.
!function(e,i,n,s)Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk Quantum
UK banks face divergent Basel 3.1 capital outcomes
Barclays’ RWA increase could erode Pillar 2A relief, while Lloyds expects a double benefit
KeyCorp locks in future rates with $6.8bn swaps additions
Forward hedges rise to $10bn as lender prepares for rate uncertainty
Bank Mandiri’s SFT exposures more than double in Q2
Surge in repo and derivative exposures adds pressure on leverage ratio
Japan Post unrealised losses climb to ¥5.7trn in Q3
Markdowns on HTM JGBs equal to 17% of book value
EU carve-out halves BNP Paribas’ cross-border G-Sib activity
Basel consultation could cement preferential treatment for European banks in G-Sib framework
Chinese G-Sibs add 500bn yuan to TLAC headroom
Eligible resources outpace RWA growth ahead of tighter 2028 requirements
US regionals take $18bn AOCI hit in Q3
Unrealised losses deepen as AOCI reaches 15% of CET1 capital
Rewriting the output floor: how EU reform options would split the banks
Making transitional relief permanent would offer the biggest cut by 2033, while market-risk changes would create winners and losers
