Falling short of expectations is what can be described of the quarterly report of Capital One Financial Group (COF.N), one of the biggest providers of credit cards in the United States as it allocated more money to compensate for unpaid loans.
For the third quarter ended Sept. 30, the financial institution’s net profit attributable to shareholders went on a downward trend to 2.9 percent to $1.06 billion, or $1.86 per share comparable to last year’s $1.09 billion, or $1.84 per share.
The net charge-off rate of Capital One which means the percentage of loans considered as unrecoverable was 1.52, 40 basis points was the decrease it had compared to previous year’s basis points.
The company’s net interest income which translates to the difference between what banks earn on loans and pay out on deposits went down in quarter to around 1 percent to $4.50 billion.
The McLean, Virginia base financial institution shares, closed on the New York Stock Exchange, Thursday at $78.53.