Capital One Financial Corp. on Tuesday reported a swing to profit in the first quarter, beating analyst expectations, despite slightly lower revenue in the period.
The bank holding company specializing in credit cards, auto loans, banking and savings accounts said earnings per share were $7.03, compared with a loss of $3.10 in the comparable quarter a year ago. Analysts polled on FactSet expected a profit of $4.11 a share.
Net income was $3.24 billion, compared with a loss of $1.42 billion a year ago.
“Strikingly strong credit drove another quarter of record earnings per share, and our investments to transform our technology and how we work are paying off,” Chairman and Chief Executive Richard Fairbank said.
Total revenue fell to $7.11 billion from $7.25 billion.
Net interest margin–considered a measure of lending profitability–fell to 5.99% compared with 6.78%, while net charge-offs were $740 million in the period.
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