Capital One 2Q profit up, plans $2B stock offering

[July 13, 2011]  MCLEAN, Va. (AP) -- Capital One Financial Corp. says its second-quarter profit climbed 50 percent. The financial services company is also announcing a $2 billion stock offering.

The McLean, Va., company said Wednesday its net income rose to $911 million, or $1.97 per share, compared with $608 million, or $1.33 per share, a year ago.

Revenue for the period ended June 30 increased 2 percent to $3.99 billion.

Analysts expected earnings of $1.73 per share on revenue of $4 billion.

Net interest income, the money earned from deposits and loans, rose to $3.14 billion from $3.1 billion.

The amount of balances the bank has had to write off as uncollectible fell during the quarter as the net charge-off rate dropped to 2.91 percent.

Capital One plans to use proceeds from its stock offering to pay for part of its ING Direct acquisition.

[Associated Press]

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