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Capital One Financial Corp. executives held their outlook steady after Synchrony Financial's warning of potentially higher net charge-off rates sparked several analyst notes and a negative reaction from investors.
Synchrony said June 14 that its latest net charge-off projections show rates 20 basis points to 30 basis points higher than initially estimated for the next 12 months. The company said that it will build its reserves during the second quarter of 2016. During an investor presentation at the Morgan Stanley Financials Conference, CFO Brian Doubles pointed to the growing consumer struggle to pay off debts.
Speaking at the same event the following day, Capital One's head of finance and corporate development, Stephen Crawford, said that a high-performing and "extremely seasoned back book" and "growth math"...