CompuCredit’s Charge-offs Jump 81% in First Quarter

more proof that things are worsening.....

ein beispiel mehr dafür das die dinge sich in den usa nicht gerade bessern.....

hat tip to Regis!

CompuCredit’s Charge-offs Jump 81% in First Quarter

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%.

>shocking to see the stock down over 9% on bad news.....

>merkwürdig ne aktie nach schlechten news auch mal 9% einbrechen zu sehen.....

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.

CompuCredit on Tuesday reported a first-quarter managed net loss of $9.5 million, compared with $54.8 million of managed earnings in the first quarter of 2006. Total interest income was $86.1 million in the March quarter, up 49.7% from $57.6 million in the year-ago quarter.


“Factors adversely affecting our results included lower-than-expected fee assessments due to lower-than-expected delinquencies, the timing and extent of our marketing efforts, and the final transitional effects of discontinuing billing finance charges and fees on credit card accounts that become over 90 days delinquent,” Chairman and CEO David G. Hanna explained.

>read the bold part above twice! to bad that he isn´t mentioning the massiv write-downs..... the nar should hire the guy.....

>lest den fett gedruckten part oben bitte zweimal !? dreist hier nicht die massiven abschreibungen zu nennen.....

In spite of the “unexpected loss,” Hanna is confident of strong results for the remainder of the year, he told analysts during the company’s conference call late Tuesday. “We remain happy with the fundamentals and underlying credit quality of our business,” he added.

>pure comedy....