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Capital One posts higher second quarter profit

Published July 17, 2014 5:39 pm

This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

New York • 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, Va.-based Capital One said 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.