Capital One posted a loss at -$0.65 EPS vs. estimates from Thomson Reuters of -$0.71 EPS. The non-GAAP number with the TARP investment effect came was $0.53 EPS. The company’s net charge-off rate for the quarter came in only at 1.1%. The managed loans held for investment were down 2.7% and local bank revenues rose by more than 5%. The charge-off rates you want to use is the one for credit card operations, and that came to 9,23% while the national lending charge-offs came to 8.04%. The credit card delinquencies were listed at 4.77% and the national lending delinquencies came in at 5.82%. Loan loss provisions were set at $934 million. Tangible book value was listed as $25.34.
Am-Ex posted $0.27 EPS vs. $0.26 estimates from Thomson Reuters. Earnings after items were $0.09 EPS. Its consolidated loss provision was $1.6 billion versus a prior $1.8 billion and return on equity was 12%. Loss provisions were listed as $1.6 billion and losses on US cards was listed as $200 million. Its tier-1 risk based capital ratio was 9.6% and average ROE was about 13.2%. Its company owned loan write-off rate was 10.3% and managed write-offs were 10%. On a managed basis, Am-Ex sees this improving in the second half.
Capital One closed up 5% at $27.83, and its 52-week trading range is $7.80 to $63.50. Its shares are trading down almost 2% at $27.15 in the after-hours market. Its market cap at the close was $11 billion.
American Express closed up 2.4% at $29.45, and its 52-week range is $9.71 to $41.80. Its shares are trading down almost 5% at $28.02 in after-hours trading. Its market cap at the close was almost $34.4 billion.
There is one commonality here… profit taking. After a 200%-plus recovery in Capital One shares and a near-200% recovery in Am-Ex shares, this is really of little to no surprise.
JON C. OGG
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