Providian reported net income for the second quarter of $69.7 million, a sharp decline from last quarter’s $102 million profit, but up 79% compared to 2Q/03. During the quarter, the issuer signed up more than 500,000 new accounts but lost just as many, ending the quarter at approximately 10.3 million accounts. The Company’s managed 30+ day delinquency rate at the end of the second quarter decreased to 6.44% from 7.36% at the end of the first quarter, and down significantly from last year’s 9.72%. Managed net credit losses in the second quarter were $525.4 million, resulting in a managed net credit loss rate of 12.53%, compared to 13.88% in the first quarter, and 16.84% for 2Q/03. The net interest margin on average managed loans in the second quarter was 13.75%, compared to 14.12% in 1Q/04, and compared to 15.09% for 2Q/03. Managed loans receivable as of June 30th, increased to $17.3 billion compared to $16.7 billion at the end of the prior quarter and $17.8 billion one-year ago. For complete details on Providian’s second quarter performance as well as prior quarters visit CardData ([www.carddata.com]).
Providian Net Income Track Record
2Q/03: $39.0 million
3Q/03 $85.3 million
4Q/03: $67.1 million
1Q/04: $101.7 million
2Q/04: $69.7 million
Source: CardData (www.carddata.com)