PROVIDIAN'S THIRD-QUARTER NET INCOME DOUBLES, BUT STOCK PRICE DROPS.(Providian Financial Corp.)(Brief Article)

Providian Financial Corp. yesterday reported a third-quarter net income of $85.3 million, or 29 cents per share, more than double the $42.1 million, or 15 cents per share, during the same three-month period last year. Analysts had expected 21 cents per share. Providian's stock price dropped, however, by as much as 13% early today because some analysts questioned the source of Providian's earnings. Chargeoffs on managed loans stood at 14.37% of receivables. That compares to a net credit loss rate of 16.84% in the second quarter and 16.71% in last year's third quarter. Much of the improvement can be attributed to Providian's move from subprime to middle-market cardholders, …