Capital One records good February performance
Shares in credit card provider Capital One have soared by as much as 10% after the company reported a better-than-expected credit performance last month.
February figures showed the percentage of uncollectible auto loans fell to 4.44% from 6.09% in January.
Meanwhile, the rate for auto loans at least 30 days delinquent also declined to 7.52% from 9.18%.
The statistics came as something of a surprise to analysts, with one Credit Suisse spokesperson insisting it bodes well for Capital One's overall performance.
Moshe Orenbuch told Reuters that if the current level of auto loan losses is sustained, Capital One's losses in that business could shrink by $30 million (£21 million).
It's not the first time that shares in Capital One have risen this month. According to Associated Press the company's performance on the stock market suggests credit card users are getting prompter on repayments and better managing at their spending.
Written by Charlotte Stevens ©
