Capital One Financial Corp., the credit and banking company, said its first-quarter profit fell 9 percent on continued pressures on U.S. companies amid the ongoing credit and mortgage crisis.
The McLean, Va.-based company said its first-quarter profit was $548.5 million, or $1.47 per share, in the first three months of the year, down from $675 million, or $1.62 per share, in the same period a year earlier. Quarterly revenue rose to $3.87 billion from $3.38 billion a year earlier.
Capital One posted first-quarter earnings of $1.70 cents per share, excluding its $84.1 million charge from the closure of its troubled GreenPoint Mortgage unit, where nearly 2,000 employees were laid off.
According to analysts surveyed by Thomson Financial, earnings per share were estimated at $1.45 a share on sales of $4.37 billion.
The company's card business in the U.S., which is more popularly known for its What's in Your Wallet advertising campaign, reported net income of $491.2 million in the first quarter, an 8.8 percent decrease.
In Canada, Capital One's credit card unit continued to perform well, with stable credit performance. However, the company said it remains cautious about growth in the U.K., given growing economic uncertainty in that market.
The banking company said the outlook for credit performance weakened due to the slowing U.S. economy, but that its business is generating strong capital.
We're well positioned to navigate near-term cyclical challenges with resilient businesses, experience in managing through prior cyclical downturns, and a strong balance sheet, Chairman and Chief Executive Officer Richard D. Fairbank said.