Breaking News Bar
updated: 7/13/2011 8:21 AM

Capital One 2Q profit up, plans $2B stock offering

hello
Success - Article sent! close
 
Associated Press

MCLEAN, Va. -- Capital One Financial Corp. said Wednesday that its second-quarter profit climbed 50 percent as it made more money from deposits, loans and fees. The financial services company also announced a $2 billion stock offering.

The earnings beat Wall Street expectations, and its shares rose 85 cents, or 1.6 percent, to $53.09 in premarket trading.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

The McLean, Va., company said its net income rose to $911 million, or $1.97 per share, compared with $608 million, or $1.33 per share, a year ago. Revenue for the period ended June 30 increased 2 percent to $3.99 billion from $3.90 billion.

Analysts polled by FactSet expected earnings of $1.73 per share on revenue of $4 billion.

Net interest income, the money earned from deposits and loans, rose to $3.14 billion from $3.1 billion.

Non-interest income, or money earned from fees and charges, climbed to $857 million from $807 million.

The amount of balances the bank has had to write off as uncollectible fell during the quarter as the net charge-off rate dropped to 2.91 percent.

The company also set aside less money for loan and lease losses, as its provision for those losses declined to $343 million from $723 million.

Capital One, which is known for its Capital One is known for its "What's in Your Wallet?" advertising campaign, said marketing expenses increased to $329 million from $219 million during the quarter.

The company plans to use proceeds from the stock offering to pay for part of its $9 billion acquisition of ING Direct. The cash-and-stock deal was announced last month.

It said the stock offering is subject to forward sale agreements with Barclays Capital and Morgan Stanley.

Capital One is giving the underwriters a 30-day option to buy up to an additional $300 million shares to cover any excess demand.

Share this page