Capital One's Credit Continues To Improve, Citigroup Reiterates Buy

Capital One Financial Corporation (NYSE: COF) reported an 87bps decrease in the National Lending net charge-off (NCO) rate to 6.89% while delinquencies were down 10bps to 5.45%, according to Citigroup.

Capital One has been weak along with the rest of the market given the soft economy and apprehension over a double-dip recession. Continued improvement in delinquencies bodes well for charge off trends in the future, while the largest weak point is declining U.S. card balances.

Citigroup reiterates its Buy rating and $55 price target for Capital One Financial Corporation, which closed yesterday at $38.82.