Capital One Financial Corp. reported weaker-than-expected profit
in its second quarter, while provision for credit losses grew.
As one of the country's largest credit-card lenders, Capital
One's results are often considered a gauge of consumer sentiment.
The company also offers traditional bank accounts, mortgages, auto
loans and commercial loans.
For the second quarter, Capital One reported a profit of $863
million, down from $1.2 billion a year earlier. On a per-share
basis, which reflects the payout of preferred dividends, earnings
fell to $1.50 from $2.04 a year earlier.
Excluding restructuring charges, per-share earnings were $1.78 a
share.
Revenue grew 3.7% to $5.67 billion.
Analysts polled by Thomson Reuters expected an adjusted
per-share profit of $1.97 on revenue of $5.74 billion.
Provision for credit losses rose to $1.13 billion from $704
million a year earlier.
On Wednesday, American Express Co. reported a 3.7% drop in
second-quarter earnings as it saw lower spending growth on Costco
Wholesale Corp. co-branded cards in the U.S. and as its
international operations were hit by a strong U.S. dollar.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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