Summary Box: Capital One 1Q profit leaps 60 pct

AP News
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Posted: Apr 21, 2011 1:01 PM
Summary Box: Capital One 1Q profit leaps 60 pct

PROFIT LEAPS: Capital One Financial Corp. reported a 60 percent jump in first-quarter net income, to $1.02 billion, or $2.21 per share.

DEFAULTS DOWN: The McLean, Va., bank cut the amount it set aside to cover defaulting credit cards and loans to $534, about a third of last year's provision.

CARD USE UP: In addition to fewer defaults, the bank reported increased use of credit cards, which drives up revenue from merchant fees for processing transactions. Purchase volume rose 16 percent to $27.8 billion.