Capital One Profit Climbs as Customer Credit-Card Spending Rises

Jul 17, 2014 4:14 pm ET

July 17 (Bloomberg) -- Capital One Financial Corp., the lender that gets more than half its revenue from credit cards, posted second-quarter profit that beat analysts’ estimates as customer spending increased.

Net income climbed 7.6 percent to $1.18 billion, or $2.04 a share, from $1.09 billion, or $1.89, a year earlier, the McLean, Virginia-based company said today in a statement. Profit excluding some items was $2.06, the bank said, topping the $1.82 average estimate of 24 analysts surveyed by Bloomberg.

U.S. retail sales increased 0.2 percent in June, the Commerce Department said this week, as more Americans returned to work. The U.S. unemployment rate fell to 6.1 percent, the lowest level in more than five years, as payrolls surged in June by 288,000 workers, the government reported July 3.

Capital One fell 2.2 percent to $82.49 at 4 p.m. in New York, the most in three months. The shares have climbed 7.7 percent this year, compared with the 3.6 percent advance of the Standard & Poor’s 500 Financials Index.