by Christopher Freeburn | October 19, 2012 11:01 am
Shares of Capital One (NYSE:COF) climbed on Friday after the bank reported sharply higher earnings.
It said it generated a profit of $1.17 billion during the third quarter, up 44% from $813 million in the same period last year. EPS came in at $2.01, easily beating the $1.68 that Wall Street had expected, the Associated Press noted.
Capital One posted revenue of $5.78 billion for the quarter, up 39% from $4.15 billion last year, and topping the $5.55 billion that analysts had estimated.
Shares of Capital One gained more than 5% in Friday morning trading.
Quarterly results were boosted by the acquisitions of ING Groep‘s (NYSE:ING) ING Direct U.S. online banking business and HSBC‘s (NYSE:HBC) credit card operations earlier this year.
Those purchases lifted Capital One’s deposits to $213.3 billion, up 66% from last year, while credit card loans grew to $89 billion, compared to $62 billion in 2011.
The bank also noted that its auto financing increased 29% over last year to $26.4 billion, while home loans more than tripled from $10.9 billion in 2011, to $46.3 billion this year.
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