Capital One Earnings Surged 85% in 4Q

Capital One Financial Corp. in McLean, Va., said Thursday that its fourth-quarter profit jumped 85%, exceeding analysts' expectations, as credit metrics improved.

The company reported net income of $697 million, or $1.52 a share, compared with $376 million, or 83 cents a share, a year earlier. Analysts, on average, expected earnings of $1.38 per share, according to Bloomberg News.

Revenue fell 1.3%, to $4 billion from the third quarter, reflecting fewer average loans and negative impacts from credit card regulation, Capital One said. The overall chargeoff rate improved 36%, or by nearly $800 million, from a year earlier.

Chargeoffs in Capital One's domestic credit card segment improved 231 basis points, to 7.28%. Consumer spending metrics improved during the fourth quarter. U.S. consumers charged nearly $27 billion on Capital One cards, up 9% from the third quarter and 10% from the second quarter.

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