Hate Capital One Stock? This Might Change Your Mind
Doubts about Capital One Financial's (NYSE: COF) foreseeable future are more than understandable. Credit card delinquencies are on the rise in the United States, reaching their highest rate in nearly three years just last quarter. Paired with record-high credit card debt of $930 billion in the U.S. alone against a backdrop of sky-high interest rates, the stage seems set for trouble.
Even Capital One CEO Richard Fairbank is worried enough to warn investors that charge-offs of soured credit accounts will likely swell to 2019-like levels later this year following a measurable uptick in the first quarter's credit charge-off rate, from $845 million (2.2% of the loan portfolio) in the comparable quarter a year earlier to $1.7 billion this time around (4.1% of the loan portfolio).
Given the headwind, it's no surprise the stock's not made any net progress since the latter part of last year.
Source Fool.com
