NEW YORK, N.Y. - Capital One says its second-quarter net income plunged 90 per cent, weighed down by acquisition costs, payouts required under a federal settlement and a build-up of reserves to cover bad loans.
Capital One Financial Corp. says its net income dropped to $92 million, or 16 cents per share. Wall Street was expecting earnings of 57 cents per share on revenue of $5.1 billion.
Operating expenses for the second quarter soared by $625 million, mainly as a result of the company's acquisition of ING Direct and HSBC's U.S. credit card business.
The bank nearly tripled its reserves for unpaid loans, to $1.68 billion.
The results include $210 million in refunds and fines revealed earlier Wednesday under orders from the government's consumer watchdog agency, for allegedly tricking credit card customers into buying services.