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Wednesday, July 13, 2011

Capital One profit beats Street; to raise $2 bln, (NYSE: COF), (ING)

Capital One Financial Corp's (COF.N) second-quarter profit jumped 50 percent, beating expectations, as fewer customers defaulted on loans, the latest sign that U.S. consumers' finances are improving. The bank also said on Wednesday that it would raise $2 billion through a stock offering to fund its acquisition of ING Groep NV's (ING.AS) U.S. online bank. Capital One earned $911 million, or $1.97 per share, in the second quarter, up from $608 million, or $1.33 per share, a year earlier. Analysts on average had expected $1.71 a share, according to Thomson Reuters I/B/E/S. Profit gains were driven primarily by writing off fewer bad loans and releasing funds previously set aside to cover bad loans. But revenue growth was tepid.

Capital One Financial Corporation is a diversified financial services holding company. Shares of COF remained unchanged at $52.24. In the past year, the shares have traded as low as $36.10 and as high as $56.26. On average, 4143260 shares of COF exchange hands on a given day and today's volume is recorded at 30267.