Capital One Just Saw a Spike in Loan Losses. Should Investors Be Worried?
High levels of inflation over the past year are starting to have an effect on savings and consumers are feeling some of the pressure. As a result, many lenders are starting to report a rise in loan losses.
The credit card specialist Capital One (NYSE: COF) is not immune. Bank management reported a solid spike in loan losses, as well as a rise in delinquencies in its fourth-quarter earnings results. With the U.S. economy potentially tipping into a recession later this year, should investors be worried? Let's take a look.
After establishing a benign credit environment when the pandemic started, it was only a matter of time before credit started to normalize to pre-pandemic levels. Thankfully, consumers were in pretty good shape heading into the pandemic.
Source Fool.com
