Capital One Shares Slide On Disappointing Earnings

By Sue Chang Markets MarketWatch Pulse

Shares of Capital One Financial Corp. slumped in Tuesday's extended session after the lender posted weaker than expected quarterly earnings. Capital One reported its first-quarter profit fell to $810 million, or $1.54 a share, from $1.01 billion, or $1.84 a share, a year earlier. On adjusted basis, Capital One would have earned $1.75 a share. Revenue slid to $6.54 billion from $6.22 billion. Net interest income rose to $5.47 billion versus $5.06 billion while its provision for credit losses increased 14% to $2 billion. Analysts surveyed by FactSet had forecast earnings of $1.93 a share on revenue of $6.64 billion. Capital One is one of the largest credit-card lenders in the U.S. but offers other financial services. Shares fell 4.5% after hours.

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