Last Update: 18-Jan-13 07:43 ET
Capital One shares plunge 6% following miss on earnings
Capital One (COF $57.48 -4.11) reported fourth quarter earnings of GAAP $1.41 per share, $0.16 worse than the Capital IQ consensus of $1.57, while revenues rose 38.9% year/year to $5.62 billion versus the $5.84 bln consensus. Period-end loans held for investment increased $2.8 billion to $205.9 billion. Provision for credit losses was $1.2 billion in the quarter, up $137 million from the previous quarter. The company's estimated Tier 1 common ratio was approximately 11.0 percent as of December 31, 2012, up from 10.7 percent as of September 30, 2012. Net Interest margin 6.52% vs 6.97% last quarter. Outlook: The company expects average quarterly revenue levels in 2013 to be consistent with the fourth quarter of 2012, as a modest decline in earning assets will be offset by a steady to slightly higher net interest margin. Overall, the company expects non-interest expense to be, on average, just over $3.1 billion per quarter, reflecting a modest decline in quarterly expenses relative to seasonally elevated operating and marketing costs in the fourth quarter of 2012.
Capital One (COF $57.48 -4.11) reported fourth quarter earnings of GAAP $1.41 per share, $0.16 worse than the Capital IQ consensus of $1.57, while