Capital One Stock Climbs On Strong Q2 EPS, Despite Revenue Miss

Capital One Financial Corp. COF released its second-quarter results after Tuesday's closing bell. Here's a look at the key figures from the quarter. 

The Details: Capital One Financial reported quarterly earnings of $5.48 per share, which beat the analyst consensus estimate of $3.59, according to Benzinga Pro. Quarterly revenue came in at $12.49 billion, which missed the analyst consensus estimate of $12.55 billion.

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For the second quarter, Capital One reported:

• Total net revenue increased 25% from the previous quarter to $12.5 billion
• Total non-interest expense increased 18% to $7 billion:
  ◦ 12% increase in marketing
  ◦ 20% increase in operating expenses
• Pre-provision earnings increased 34% to $5.5 billion
• Provision for credit losses increased $9.1 billion to $11.4 billion:
  ◦ Net charge-offs of $3.1 billion
  ◦ $7.9 billion loan reserve build
• Net interest margin of 7.62%, an increase of 69 basis points:
  ◦ Adjusted net interest margin of 7.68%
• Efficiency ratio of 55.96%
• Operating efficiency ratio of 45.2%
  

“We completed our acquisition of Discover on May 18th. We're fully mobilized and hard at work on integration, which is going well,” said Richard D. Fairbank, CEO. “We're as excited as ever by the expanding set of opportunities to grow and create value as a combined company.”

COF Price Action: According to data from Benzinga Pro, Capital One stock was up 1.65% at $221 in Tuesday's extended trading. 

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