Providian Is Delaying Results

Struggling credit card issuer Providian Financial Corp. delayed announcing its fourth-quarter results Thursday because executives said they need more time to discuss the company’s financial woes with federal banking regulators.

The San Francisco-based company said it would delay the announcement until Feb. 7, and provided little detail on the reasons for the decision.

At the beginning of the week, Providian had affirmed it would disclose its results Thursday. The company announced the delay just a few hours before a scheduled conference call.

“We continue to make good progress in finalizing the key components of our capital plan with our regulators,” said Chief Executive Joseph Saunders.

Concerned by heavy losses in Providian’s credit card portfolio, regulators imposed controls on the firm’s operations to protect nearly $16 billion in insured deposits.

Providian’s shares fell 21 cents, or 5%, to close at $3.75 on Thursday on the New York Stock Exchange. The stock plunged 94% in 2001.

“This can’t be good news. It looks like they are running an open-door liquidation of the company,” said analyst Charlotte Chamberlain of Jefferies & Co.

Providian may be negotiating with regulators about the amount of special charges to be booked in the fourth quarter, said analyst Matthew Park of Thom Weisel Partners. If the charges are too large, Providian’s balance sheet might fall below the minimum ratios demanded of banking regulators, opening the door to a government takeover, Park said.

As of Sept. 30, the company’s capital ratio remained well above the minimum threshold.

Analysts expect Providian to post a fourth-quarter loss of 5 cents a share, according to Thomson Financial/First Call. Management didn’t project Providian’s results in Thursday’s announcement.