Die Dominosteine werden groesser!

verfasst von XERXES, 10.02.2002, 16:17

Providian Has $481 Mln 4th-Qtr Loss, Bad Loans Rise (Update2)
By Helen Stock


San Francisco, Feb. 7 (Bloomberg) -- Providian Financial Corp., the sixth-biggest U.S. Visa and MasterCard issuer, had a fourth-quarter loss of $481.2 million as more credit-card bills went unpaid.

The loss of $1.70 cents a share compares to net income of $214 million, or 73 cents a share, in the year-earlier period. The annualized loss rate was 12.7 percent in the quarter, more than double the average rate for the other top 10 U.S. credit card issuers.

Federal regulators in November prohibited the company from adding new customers with poor or short credit histories after Providian's third-quarter profit plunged. The company has since replaced its chief executive officer and dismissed 11 percent of its workforce. Shares fell 94 percent last year.

``I believe that we have turned the corner and the company is on an appropriate trajectory to an acceptable earnings level,'' Chief Executive Officer Joseph Saunders told investors on a conference call. He declined to take questions during the call.

Providian said on Jan. 16 it expected to lose money in the fourth quarter. The average analyst estimate was a loss of 6 cents a share, according to a poll by Thomson Financial/First Call.

Federal Approval

The company also said federal regulators accepted its bank subsidiaries' plan for maintaining adequate capital, which cushions against loan losses. Providian postponed releasing results hours before they were due on Jan. 31, saying it was working out the final components of the plan.

``We are working on longer term marketing strategies and expense reduction initiatives that will allow us to capitalize on our core competitive advantages and return to growth and profitability,'' Saunders said in a statement.

Moody's Investors Service and Standard & Poor's have lowered their Providian senior debt ratings in recent months, concerned the company may not be able to raise the funds it needs to make credit card loans.

Under Saunders, who joined from FleetBoston Financial Corp. in November, the company has raised $2.8 billion from selling bonds backed by other credit card loans. The debt replaces $1.98 billion in funding, some of which the company was forced to pay back early.

Replacing Mehta

Saunders, who replaced Shailesh Mehta, has brought three executives from FleetBoston to run Providian's marketing, operations and risk management departments.

Providian at the end of 2000 was worth $16.3 billion on the stock market. It has a market value of $985 million now. Investors sold the shares as the company's financial troubles grew in recent months.

``When they decided to stop targeting the lower-income segment, it no longer made sense to own them,'' said Jessica Caie, portfolio manager at Cohen, Klingenstein & Marks, which manages $3.5 billion and has sold its Providian holdings. ``Providian just seemed to throw up their hands and walk away.''

Shares rose 33 cents to $3.46 before the results were released following the close of trading on the New York Stock Exchange.




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gesamter Thread:

• Die Dominosteine werden groesser! - XERXES, 10.02.2002, 16:17
  • Inhalt in deutscher Sprache??? - peter72, 10.02.2002, 17:34
    • Re: Inhalt in deutscher Sprache??? - XERXES, 10.02.2002, 19:44
    • Bitteschön... - dira, 10.02.2002, 19:50
    • Re: Inhalt in deutscher Sprache??? - SchlauFuchs, 10.02.2002, 20:02
    • danke schön!!!!!!!!!!!!!!!! Ãœbersetzungsprogramme???? - peter72, 10.02.2002, 21:01
      • Ãœbersetzungsprogramme? - Blos nicht. Mit Wörterbuch bist du besser bedient - SchlauFuchs, 10.02.2002, 22:06