NEW YORK – Capital One Financial Corporation (NYSE:) reported third-quarter results that significantly beat analysts’ expectations, driven by strong growth in credit card revenue. The company’s stock jumped 3.2% in after-hours trading following the announcement.
The financial services giant posted adjusted earnings per share of $4.51, significantly above the consensus estimate of $3.77. Revenue came in at $10.01 billion, beating expectations of $9.87 billion.
Capital One’s credit card business was the star performer, with net revenue up 9% year over year to $7.25 billion. The company saw domestic credit card purchase volume increase 5% to $162.3 billion.
“Strong third quarter results included revenue growth in our national card and auto businesses, as well as stable results in consumer credit,” said Richard D. Fairbank, Founder, Chairman and CEO .
Net interest income rose 7% to $8.08 billion, benefiting from higher interest rates. The net interest margin widened to 7.11%, compared to 6.69% a year ago.
Provisions for credit losses fell 37% sequentially to $2.48 billion, signaling improving credit quality. The net charge-offs rate decreased to 3.27% compared to 3.36% in Q2.
Capital One maintained a strong capital position, with a Common Equity Tier 1 capital ratio of 13.6% at the end of the quarter.
