- Third-quarter net income increases 3.1% to $1.11 billion
- Total credit-card loans advance 12%, led by U.S. business
Capital One Financial Corp., the bank that earns most of its revenue from credit cards, reported third-quarter profit that beat analysts’ estimates as card loans increased.
Net income rose 3.1 percent to $1.11 billion, or $1.98 a share, from $1.08 billion, or $1.86, a year earlier, the McLean, Virginia-based company said Thursday in a statement. Profit excluding some items was $2.10 a share, topping the $1.94 average estimate of 25 analysts surveyed by Bloomberg. Revenue climbed 4.6 percent to $5.9 billion, beating estimates.
Chief Executive Officer Richard Fairbank has sought to expand beyond the bank’s core credit-card lending business. Capital One agreed in August to buy General Electric Co.’s health-care finance unit for about $9 billion.
“Capital One posted solid results in the third quarter, highlighted once again by strong growth in our domestic card business,” Fairbank said in the statement. “Capital One continues to deliver attractive risk-adjusted returns today while investing to sustain growth and returns over the long-term.”
Credit-card loans rose 12 percent to $90.1 billion, according to the statement. Non-interest expenses climbed 5.9 percent from a year earlier, and the lender set aside 10 percent more for bad loans.
Capital One shares declined 9.2 percent this year in New York through Thursday’s close, compared with the 3.5 percent drop of the 88-company Standard & Poor’s 500 Financials Index.
(An earlier version of this story corrected the reasons for profit beating estimates in the headline and first paragraph.)