Capital One 3rd-qtr profit rise 44 percent on acquisitions

Thu Oct 18, 2012 4:16pm EDT

Oct 18 (Reuters) - Capital One Financial Corp's quarterly profit rose 44 percent as the lender reaped the benefits of its acquisitions of ING Direct's deposits and HSBC Plc's U.S. credit card business.

Net income for the third quarter rose to $1.17 billion, or $2.01 per share, from $813 million, or $1.77 per share, a year earlier.

Revenue rose 40 percent to $5.78 billion.

Capital One bought online bank ING Direct for nearly $9 billion and then bulked up its credit card division with the HSBC deal, which added another $30 billion in credit card loans this year.

The lender has spent much of the past decade transforming itself from a specialty credit card issuer dependent on bond market funding into a bank that relies on deposits. It is now one of the top 10 U.S. banks by deposits.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.