Capital One Financial Corp.'s net income rose nearly 60% in the first quarter as the credit card lender's chargeoffs fell and it set aside less money for future loan losses.
The McLean, Va., company said Thursday that net income was $1.02 billion, or $2.21 per diluted share, beating Thomson Reuters estimates of $1.55 per share. A year earlier, the company reported a profit of $636 million, or $1.40 per diluted share.
Total revenue for the quarter fell about 5% from a year earlier to $4.08 billion, though it was up 3% from the fourth quarter as both net interest and noninterest income ticked up.
The company's total net chargeoff rate fell to 3.66% from 6.01% in the year-earlier quarter. The net chargeoff rate for its domestic credit card loans was 6.2%, down from 10.48% a year earlier. Purchase volume on its domestic cards grew 14% to $25.02 billion.
"We are gaining momentum across our business, and the period of shrinking loans through the Great Recession came to an end in the first quarter," Richard Fairbank, Capital One's chairman and chief executive, said in a press release.