Capital One profit tops market; to offer $2 bn of stock

Capital One profit tops market; to offer $2 bn of stock

Bangalore: Capital One Financial Corp posted larger-than-expected quarterly profit as provisions for loan losses halved, and said it would raise $2 billion via stock offering to fund the acquisition of ING Groep NV’s US online bank.

For the second quarter, the company earned $911 million, or $1.97 per share, compared with $608 million, or $1.33 per share, a year earlier.

Analysts on average had expected earnings of $1.71 a share, according to Thomson Reuters I/B/E/S.

Revenue for the quarter rose to $3.99 billion from $3.90 billion in the year-ago period. Analysts had expected revenue of $4.02 billion.

Net charge-off rate fell to 2.91% from 5.35% a year ago. Net interest income rose to $3.14 billion from $3.1 billion.

Provision for loan and lease losses fell to $343 million from $723 million a year ago.

The company also said its $2 billion stock offering will be underwritten by Barclays Capital, Morgan Stanley, BofA Merrill Lynch and JPMorgan.

Shares of the company closed at $52.24 on Tuesday on the New York Stock Exchange.