The rate of late payments and defaults on Capital One Financial credit cards both fell in May, but auto loan charge-offs rose.
DEFAULT: Capital One wrote off $170 million, or 3.85 percent, of balances on an annualized basis last month, down from 4.07 percent in April. In May 2011, the McLean, Va., bank charged off 4.84 percent of balances, it said Friday. Card companies typically write off loans after they are six months past due.
LATE PAYMENTS: Payments on 3.14 percent of balances were delinquent, or late by 30 days or more, down from 3.18 percent in April. A year ago, the delinquency rate was 3.32 percent. Delinquencies are considered an indicator of what to expect for defaults in coming months.
INTERNATIONAL CARDS: The charge-off rate for international cards was 5.3 percent in May, down from 6 percent in April. The delinquency rate fell to 4.83 percent from 5.01 percent.
AUTO LOANS: The bank's auto lending reported a charge-off rate of 0.97 percent on an annualized basis, up from 0.8 percent in April. Payments late by 30 days or more on auto loans rose to 5.76 percent, from 5.39 percent the month earlier.
Shares of Capital One Financial Corp. rose 77 cents, or 1.5 percent, to $53.78 in midday trading.