MaxedOutMama
Thursday, May 10, 2007
The Citi Sell-Off
Banking's most recent profits have been concentrated on credit cards (see this post), and the Ouch Aggh factor of this report cannot be underestimated for some of the large players in the business:
Net charge-offs for credit card issuer CompuCredit Corp. – which specializes in issuing cards to consumers at the lower end of the FICO scoring range – totaled $86.1 million in the three months ended March 31, and the net charge-off ratio was 13.4%.Citi has already seen this; they went nuts with collection efforts earlier this year. Chase is another biggie. BofA bought MBNA. Yal posted this article over at Calculated Risk. If you have skin in the game, Calculated Risk is a very, very important resource. It's got great bloggers and a wide range of commenters with perspectives from different industries.
First-quarter 2006 net charge-offs for the Atlanta-based company were 81% lower at $47.6 million and the net charge-off ratio was 8.1%.
First-quarter 2007 delinquencies in the 30+ day bucket totaled $454.1 million, up 33.6% from $340 million a year earlier. Delinquencies in the 60+ day bucket reached $350 million, rising 36.8% from $255.9 million during the same quarter of 2006.
