Capital One Financial Corp. (NYSE: COF) gained on Friday markets after reporting upbeat quarterly profit.
The second-quarter statement, issued Thursday, showed the credit card company produced net income of $1.0 billion, or $1.94 per diluted common share, compared with net income of $942 million, or $1.69 per diluted common share in the second quarter of 2016. Total net revenue increased 3% to $6.7 billion.
During the quarter, COF incurred $12 million of costs related to its anticipated close of the Cabela's acquisition, which is subject to regulatory approval. Excluding this adjusting item, net income for the second quarter of 2017 was $1.96 per diluted common share.
Analysts had expected earnings of $1.90 per share, and revenue of $6.67 billion.
The company squeezed through the Federal Reserve's stress tests this year with conditional approval to return money to shareholders after it fixes some "material weaknesses."
Provision for credit losses decreased 10% to $1.8 billion
But some had speculated it might face another challenge in the quarter — potentially steep write-offs of loans it made to taxi operators for their medallions. It is an issue Signature Bank dealt with in the quarter, writing down its medallion loans by 38%.
Moreover, Oppenheimer upgraded Capital One from Underperform to Perform.
Capital One Financia, based in McLean, Virginia had $239.8 billion in deposits and $350.6 billion in total assets as of June 30.
Its stock vaulted $6.64, or 8.2%, Friday near closing time to $87.65.
