Capital One's Profit Misses Expectations

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 [e-mail]

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