Capital One 4Q profit declines and falls short of estimates while revenue surpasses forecasts
MCLEAN, Va. (AP) -- Capital One Financial Corp. said Thursday that its net income slipped 8 percent to $999 million in the fourth quarter as it set aside more money to cover credit losses.
The McLean, Virginia-based company said it earned $1.73 per share, or $1.68 excluding income from discontinued operations. Capital One's revenue grew 5 percent to $5.81 billion.
Zacks Investment Research says analysts expected a larger profit of $1.74 per share and $5.69 billion in revenue on average.
The company said it set aside $1.11 billion to cover credit losses, up 16 percent from a year ago. Domestic credit card loans grew 6 percent from a year ago, while commercial and consumer banking and auto loans all edged higher. Home loans decreased.
Capital One shares declined to $76.20 Thursday, and they have dropped 7.5 percent in 2015 while the Standard & Poor's 500 index has stayed nearly flat. The stock has risen 5 percent over the last 12 months.
In aftermarket trading, the shares edged down 45 cents to $75.75.
Capital One said its U.S. credit card business returned to growth in 2014, and its net income grew 7 percent to $4.34 billion, or $7.59 per share. Revenue edged down to $22.29 billion from $22.38 billion.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap ) using data from Zacks Investment Research. Access a Zacks stock report on COF at http://www.zacks.com/ap/COF
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