Profits rose by 9% at Capital One Financial during the second quarter thanks to strong growth in the firm's credit card and commercial banking businesses.

But late payments rose in numerous lending segments, including the firm's flagship U.S. credit card business, and Capital One built up its provision for credit losses by 41% to $1.6 billion.

McLean, Va.-based Capital One had $88.6 billion in U.S. card loans held for investment at the end of the second quarter, which was up 12% from a year earlier. Total net revenue in the segment grew by 12%, and the amount of money that customers spent on the company's U.S. credit cards rose by 14%.

At the same time, the percentage of the firm's U.S. credit card loans that were at least 30 days late rose to 3.14% from 2.84%. The net chargeoff rate on domestic card loans rose to 4.07% from 3.42%.

The story was similar in the $330 billion-asset company's commercial banking business. Period-end loans held for investment were 29% higher than the second quarter of 2015, and revenue increased by 17%.

But the nonperforming loan rate in the commercial banking business rose to 1.59% from 0.90%, and the net chargeoff rate climbed to 0.37% from 0.05%.

Capital One's commercial banking business includes an oil and gas portfolio of nearly $3 billion, plus another $2.7 billion in unfunded exposure to the sector. The firm's maximum exposure to the oil and gas industry fell by 23% over the last year.

Among oil and gas loans, the nonperforming loan rate was 18.63% in the second quarter — a number that was up substantially from the second quarter of last year, but down slightly from the first quarter of this year.

Overall, Capital One's net income was $942 million, or $1.69 per diluted common share. That compared with net income of $863 million, or $1.50 per share, a year earlier.

Total net revenue grew by 10%, and net interest income rose by 12%.

"We remain well-positioned to deliver growth and returns at the higher end of banks," Chief Executive Officer Richard Fairbank said in a press release.

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