Credit services provider Metris (MXT:NYSE - news - commentary - research - analysis) reported a wide second-quarter loss on a higher delinquency rate and said it will not issue guidance for the remainder of the year. The company, which issues credit cards to higher risk customers with worse credit histories, said it lost $36.4 million, or 74 cents a share, compared with a profit of $62.8 million, or 64 cents a share, in the year ago quarter. Wall Street had been expecting a profit of 22 cents in the quarter, according to analysts polled by Thomson Financial/First Call. Metris said its managed credit card portfolio fell $81 million to $11.7 billion, while the net interest margin fell to 14% from 14.1% in the year ago quarter. Fees from managed credit cards fell 19% to $127 million. Overall charge volume fell 14% to $2.2 billion in the quarter from $2.5 billion a year ago, while the managed delinquency rate rose to 10.2% from 9.8% a year ago. The company's loan loss reserve increased $51 million to $1.019 billion. Looking ahead, Metris warned that it will not issue any guidance for the remainder of the year. Shares closed Tuesday at $6.07 before the earnings release. From http://www.thestreet.com/tech/marketmovers/10032166.html
Rina,, There is also increasing speculation that MXT's Master Trust {the vechile used to securitize credit card debt} is in need of a capital infusion. Subprime is a rough neighborhood. Anybody that carries much of a balance on DMG needs to look at what Providian did with interest rates when they got in trouble.
