NEW YORK (AP) — Capital one financial Corp. said Wednesday that its second quarter profit climbed 50 percent, as its credit cards improve payment habits and loan customers get the Bank to drastically reduce it had set aside to cover expenses for uncollected.
The company, best known for his strongly advertised credit card activities, also announced the inventory offers a 2 billion dollar. Funds will be used to pay for the Bank's planned 9 billion dollar acquisition of INGS banking unit, announced last month.
News of the offer pressured stocks in midday trade. A share capital slipped 72 cents to $ 51.52 in heavy trading, as the larger markets increase.
McLean, Virginia-based bank said net profit rose to 911 million dollars or $ 1.97 per share, in the three months ended June 30, compared to 608 million dollars, or $ 1.33 per share, a year ago.
Analysts, on average, revenues are expected at $ 1.73 per share, according to data provided by FactSet.
Net interest income, the money was from deposits and loans, increased to 3.12 billion USD 3.1 billion dollars. That was helped by capital acquisition in April by Kohl's credit card portfolio.
The amount which the Bank wrote as uncollectible decreased in the quarter, the net kostnadsfritt-off reduction of 214 million dollars, 2.91% of balances on annualized basis, from 5.35 percent a year ago.
Improving turned capital a dropping 579 million dollars from the reserves had been set aside for future depreciation. Sterne Agee, said analyst Henry Coffey release adds approximately 81 cents to earnings per share for the period.
Total loans at the end of the quarter increased 4 percent to $ 4.9 billion, driven largely 3,7 billion dollars contributed to Kohl, along with growth in auto finance and commercial banks. Coffey noted that credit card balances have dropped during the quarter.
Non-ränteintäkter or money earned from fees and charges, climbed to 857 million dollars from 807 million dollars.
Capital a, which is known for his advertising campaign "what's in your wallet?" said marketing expenditure increased to 329 million dollars from 219 million dollars during the quarter.
The company said that stocks offer subject to forward sale agreement with Barclays Capital and Morgan Stanley.
Capital one provides the underwriters a 30-day option to purchase up to an additional $ 300 million shares to cover any excess demand.
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AP Business writer Michelle Chapman in New York contributed to this report.
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