Capital One Beats Quarterly Estimates As Revenue Rises 27%

According to CNBC, Capital One Financial reported second-quarter results that topped Wall Street expectations on both revenue and adjusted earnings per share, while shares were little changed in after-hours trading at $206. Revenue rose 27% year over year to $15.85 billion, above the $15.77 billion estimate, and adjusted EPS increased 6% to $5.81, compared with the $4.75 consensus estimate. Non-interest income climbed 39% from a year earlier to $2.26 billion in net discount and interchange fees, helped by Capital One’s ownership of the Discover payment network. Net interest income rose 24% year over year to $12.37 billion, while non-interest expenses increased 29% to $9 billion. Capital One repurchased 14 million shares for $2.7 billion in the quarter and said about $9 billion remained under its buyback authorization. Provisions for credit losses came in at $2.98 billion, below the roughly $4 billion estimate, and the company recorded an allowance release of about $660 million.