Capital One Financial Corp. posted a first-quarter loss that, though smaller than the fourth-quarter loss, showed the company is still experiencing trouble in its banking and card operations.
The company also said full-year managed chargeoffs will be higher than the $8.6 billion it previously predicted. It did not provide more specifics, citing "significant uncertainty in the economy."
Capital One shares fell 6.6% in late trading, to $14.06.
Richard Fairbank, its chairman and chief executive, said in a press release that the results reflect significant pressures from the worsening economy but also show strength in the company's balance sheet. "While we remain cautious about near-term economic challenges, we are confident that our balance sheet provides the stability to weather the current economic crisis and the flexibility to generate value on the other side."
Capital One posted a net loss of $111.9 million, or 45 cents a share, compared with net income of $548.5 million, or $1.47 a share, a year earlier. The loss from continuing operations was 39 cents a share.
The average estimate of analysts polled by Thomson Reuters had called for a loss of 8 cents.
