Capital One Profit Rises 2%


Capital One Financial Corp (NYSE:COF), one of the largest credit card issuers in the United States, reported quarterly results that missed estimates as net interest income fell in both its credit card and consumer banking business.

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Capital One shares fell about 3 percent in trading after the bell.

The company's credit card and consumer loans held for investment fell in the fourth quarter ended Dec. 31, dragging down overall revenue by 1.4 percent to $5.54 billion.

Total net revenue from the bank's credit segment fell 10 percent to $3.40 billion.

Net income rose to $859 million, or $1.45 per share, from $843 million, or $1.41 per share, a year earlier.

Analysts on an average had expected earnings of $1.55 per share on revenue of $5.47 billion, according to Thomson Reuters I/B/E/S.

Capital One has spent much of the past decade transforming itself from a specialty credit card issuer, dependent on bond market funding, into one of the top 10 U.S. banks by deposits, with more than a thousand branches nationwide.

McLean, Virginia-based Capital One's net charge-off rate, the percentage of loans written off as unrecoverable, was 2.01 percent, a decrease of 25 basis points from the year-earlier quarter.

Shares of Capital One, valued at about $44 billion, closed at $76.44 on Thursday on the New York Stock Exchange.

(Reporting by Avik Das in Bangalore; Editing by Joyjeet Das)

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