Surprise Surge in Card Defaults Sinks Capital One, Discover
- Capital One’s card write-off rate is highest in six years
- Net income at both lenders dropped in the first quarter
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Capital One Financial Corp. and Discover Financial Services fell after a surge in soured credit-card loans hurt profit at the two lenders.
Shares of Capital One dropped 2.9 percent to $83.06 and Discover slid 3.1 percent to $65.23, the two worst performers Wednesday in the 65-company S&P 500 Financials Index. Synchrony Financial, the private-label credit-card issuer that reports first-quarter results on Friday, was third worst.