Capital One Reports Net Income of $1.15 Billion in First Quarter--Update

By Josh Beckerman 

Capital One Financial Corp. reported first-quarter net income Thursday that was nearly flat compared with the same period last year.

Revenue rose 5% to $5.65 billion. The company said "we continued to post strong results across our businesses."

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.

Capital One reported a profit of $1.153 billion, or $2 a share, compared with $1.154 billion, or $1.96 a share, in the same period a year earlier.

Analysts polled by Thomson Reuters expected per-share profit of $1.88 on revenue of $5.7 billion.

Earnings from continuing operations rose to $1.97 a share from $1.91.

Provision for credit losses rose to $935 million from $735 million a year earlier.

Last month, Capital One said it planned to increase its quarterly dividend to 40 cents from 30 cents and announced a $3.125 billion stock-buyback plan. The Federal Reserve didn't object to the company's proposed capital plan submitted in January.

The company's shares were up 14 cents to $82 in after-hours trading.

Last week, American Express Co. said first-quarter net income rose 6.5%, as card holders increased spending and borrowing. On Tuesday, Discover Financial Services reported a 7.1% decline in profit as expenses increased, but said it had solid loan growth.

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