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Capital One Financial (COF) reported its lowest quarterly net income in a year on Thursday as margins shrunk in the company's flagship credit card business.
January 16 -
The moves are part of a recent trend of banks exiting businesses that they believe have fallen out of favor with regulators.
April 16
Capital One (COF) in McLean, Va., posted slighter higher quarterly earnings that surpassed analysts' expectations.
The company's first-quarter earnings rose 1% from a year earlier, to $1.2 billion. Earnings per share of $1.96 were 26 cents higher than the average estimate of analysts polled by Bloomberg.
Net interest income fell 7%, to $4.3 billion, while its net interest margin compressed by 9 basis points, to 6.62%. Net revenue at its credit card business fell 11%, to $3.3 billion. Revenue in the company s commercial banking business increased by 5%, to $508 million.
Capital One benefited from lower operating costs in the first quarter. It noninterest expense fell 3%, to $2.9 billion. Noninterest income fell 2%, to $1 billion.
The company chopped its loan-loss provision by 17%, to $735 million.
"Capital One posted solid results across our businesses in the first quarter," Richard Fairbank, the company's chairman and chief executive, said in a press release. "We received no objection to our [Comprehensive Capital Analysis and Review]capital plan and announced a $2.5 billion share repurchase program that we expect to complete by the end of the first quarter of 2015."
