Capital One Financial profit vaults 47 percent
NEW YORK Capital One Financial's (COF) net income vaulted 47 percent in the third quarter, as the lender's acquisitions of an online bank ING Direct and a credit card business helped boost its loan revenue.
The McLean, Virginia-based bank said Thursday that it recorded gains across all of its businesses in the July-to-September period, generating annual increases in loans held for investment, domestic card loans, average loan balances and total deposits.
A key contributor: The impact of online bank ING Direct and HSBC's credit card business.
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Capital One's provision for credit losses increased to $1.01 billion from $622 million in the quarter.
The bank's net income jumped to $1.17 billion, or $2.01 per share, in the three months ended Sept. 30. That compares with net income of $813 million, or $1.77 per share, a year earlier.
Revenue rose to $5.78 billion from $4.15 billion.
Analysts polled by FactSet were expecting earnings of $1.68 on revenue of $5.55 billion.
Capital One has been looking to boost its profile as a national bank. Its $2.6 billion purchase of HSBC's U.S. card business closed in May, while the $8.96 billion purchase of ING Direct closed in February.
Shares ended regular trading down 73 cents, or 1.3 percent, at $57.30. The stock added $1.80 to $59.10 in aftermarket trading.