Metris Companies Inc. reported first-quarter net income of $52.3 million, down from the $56 million it generated during the same period in 2001. The company had a bad-debt charge-off rate of 13%, up from the 10.6% it saw a year ago.
During the quarter, the Minnetonka, MN-based credit card issuer had adjusted its first quarter 2001 net income, reducing it by $14.5 million, as a result of a change to its accounting procedures.
Metris recorded $121.4 million in interest income during the quarter, down from $121.9 million a year earlier. But its loan losses amounted to $189.8 million, up from $87.7 million a year ago. Its total income for the quarter was $327.6 million, up from $228.2 million a year earlier.
The company spent $40.5 million on marketing during the quarter, nearly identical to the $40.8 million it spent a year ago.
On Wednesday, Metris entered into an agreement with the Office of the Comptroller of the Currency that involved greater oversight of its operations. The agreement was the result of a 15-month examination by the OCC.
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