Capital One Financial Corp's first-quarter profit rose 60 percent as losses on bad loans fell and revenue rose.

The bank and credit card lender on Thursday reported net income of $1 billion, or $2.21 per share, compared with $636 million, or $1.40 per share, in the year-ago period.

Analysts on average had expected $1.55 per share, according to Thomson Reuters I/B/E/S.

Capital One shares closed up less than 1 percent at $50.52 on Wednesday.

Like other consumer lenders, the McLean, Virginia-based bank has seen its losses on bad loans largely recover since the financial crisis. But it is struggling to grow its business in the face of tepid demand for new loans.

(Reporting by Maria Aspan; Additional reporting by Joe Rauch in Charlotte, North Carolina; editing by John Wallace)