UPDATE 2-Capital One will not raise dividend for Q1
* Capital One to keep 5-cent dividend in Q1
* Regulatory capital ratios expected to fall in quarter (Adds bank declining to comment on Fed; updates shares)
NEW YORK, March 18 (Reuters) - Capital One Financial Corp (COF.N) will not raise its dividend from 5 cents per share for the first quarter of 2011, the bank and credit card lender said on Friday.
The Federal Reserve on Friday said it would allow some of the largest U.S. banks to boost or restart dividend payments as it notified them whether they had passed a second round of stress tests. [ID:nN18249036]
Capital One did not discuss the results of the Fed's stress tests in its announcement, and spokeswoman Tatiana Stead declined in an email to discuss the bank's interactions with regulators.
The bank said it expects its regulatory capital ratios to "experience a temporary decline," in the first quarter of 2011, due to a change in how it can account for its deferred tax assets.
Capital One said it expects those ratios to start growing again after the first quarter.
The bank's shares were up about 2.2 percent on Friday afternoon at $51.91. (Reporting by Maria Aspan; editing by Gunna Dickson and Gerald E. McCormick)
Trending On Reuters
Strategies for making the most of your donations - from how to grow the money you plan to give to how to withdraw it with minimal tax implications. Video