Capital One posts higher 2Q profit - WSLS 10 NBC in Roanoke/Lynchburg Va

Capital One posts higher 2Q profit

Posted: Updated:
By STEVE ROTHWELL
AP Business Writer

NEW YORK (AP) - Capital One Financial Corp. said Thursday that second-quarter profit rose 8 percent as it set aside less money for bad loans and its domestic card business returned to growth.

McLean, Virginia-based Capital One said that net income after paying preferred dividends rose to $1.18 billion, or $2.04 per share, in the three months ended June 30. That compares with net income of $1.09 billion, or $1.85 per share, in the same period a year earlier.

The results exceeded the average forecast of analysts polled by FactSet, who had predicted earnings of $1.82 per share.

Earnings got a boost from lower provisions for credit losses, which fell 8 percent to $704 million, compared to the same period in 2013.

Ending loans from domestic cards climbed 1 percent from a year ago and 4 percent from the first quarter, to $71.17 billion. Auto loan originations jumped 19 percent from a year ago to $5.38 billion.

Revenue fell 3 percent to $5.47 billion from $5.64 billion a year earlier. Analysts had an average forecast of $5.43 billion.

Capital One shares were little changed in after-hours trading. Shares had ended regular trading down $1.89, or 2.2 percent, at $82.49. That compares with a fall of 1.2 percent for the Standard & Poor's 500 index.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow

WSLS 10, P.O. Box 10
Roanoke, VA 24022-0010

Telephone: 540.981.9110
Fax: 540.343.3157
Email: news@wsls.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.