Financial stocks couldn't get a break as a week full of second-quarter earnings reports wound down Friday.

The American Banker index of 225 bank stocks fell 1.7% Friday, and the thrift index declined 1.26%. For the week, the bank index was down 3.51%, and the thrift index 3.68%.The Standard & Poor's 500 fell 1.22% Friday, and the Dow Jones industrial average slipped 1.07%.

Shares of Citigroup Inc., the New York banking giant, dropped 0.8% Friday despite its releasing second-quarter results that beat the Street's earnings expectations.

Citi reported net income of $6.2 billion, up 18% from a year earlier and 24% from the first quarter, thanks primarily to its investment banking and capital markets business.

Earnings per share came in at $1.24, 11 cents ahead of the average analyst estimate.

Shares of Wachovia Corp. in Charlotte fell 3.2% after it said unexpected compression of its net interest margin hurt its second-quarter results.

Yet with help from private-equity gains, Wachovia managed to record an increase in net income of 1.7% from the first quarter and 24.2% from a year earlier, at $2.34 billion.

Capital One Financial Corp.'s stock gained 2.9% on its earnings announcement.

The McLean, Va., company said late Thursday that it had earned $750.4 million in the quarter, or $1.89 a share, up 36% from a year earlier. It also annihilated the average analyst estimate by 11 cents a share.

Capital One also reported that credit quality stabilized in its mortgage division, which posted a $2.6 million profit compared with a first-quarter loss.

Doral Financial Corp. in San Juan, Puerto Rico, jumped 12.2%, to $1.29 a share.

Doral said late Thursday that it has completed the sale of a 90% stake to a consortium led by Bear Stearns & Cos. for $610 million - just in time to pay $625 million for the redemption of bonds that matured Friday.

Other gainers included Ocwen Financial Corp. in West Palm Beach, Fla., up 2.8%, and Capital Bank Corp. in Raleigh, N.C., 2.3%.

Other decliners included W Holding Co. Inc. in Mayaguez, Puerto Rico, off 6.3%, and Tompkins Financial Corp. in Utica, N.Y., 5.4%.

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