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."