CompuCredit Reports Loss of $53 million

Subprime card issuer CompuCredit Corp. (Nasdaq: CCRT) yesterday reported a third quarter net loss of $53.2 million compared with a profit of $38.8 million in the same period a year ago.

The loss was driven by an after-tax net loss of $21.2 million from investments in third-party asset-backed securities owned by one of CompuCredit’s subsidiaries.

The Atlanta-based card issuer, whose consumers typically have spotty credit or are un-banked, reported an adjusted charge-off rate of 10.2 percent in the third quarter, compared with 9.4 percent for the third quarter of 2006. As of September 30, 2007, its 60-plus day delinquency rate was 14.6 percent, compared with 14.0 percent. 

Managed receivables at quarter’s end were nearly $4.2 billion, up from $2.8 billion a year ago. The company reported it added 500,000 net new customer accounts during the quarter.

The card division reported a loss before income taxes of $77.1 million, compared with a profit of $52.1 million a year ago. The auto division had a pre-tax loss of $11.7 million, compared with a profit of nearly $2.7 million. 

The disappointing numbers sent the stock tumbling yesterday, finishing down 14 percent from Monday’s close. The stock today was down another 14 percent in intraday trading to $12.07.