Capital One Financial Corp. said this week that it expects 1997 earnings of $2.76 a share, which would be a 20% improvement on 1996 and 9 cents better than First Call Corp.'s analyst consensus.
"The improved earnings outlook is due to the success of our marketing innovations as well as a more positive credit outlook," said Richard D. Fairbank, Capital One chairman and chief executive officer.
The company also reaffirmed its goals of 20% earnings growth and 20% return on equity for 1998.
Susan Roth, vice president at Donaldson, Lufkin & Jenrette, said the company's success is mostly due to the maturing of such products as secured, joint-account, and cobranded credit cards.
Capital One began marketing these products as alternatives to its low- rate, no-fee, balance-transfer approach.
"These products have higher returns per dollar of assets," said Ms. Roth.