Capital One Financial Corp (NYSE : COF) - Q1 2017 Earnings Fall as Charge-Offs Increase

On 25 April, Capital One Financial Corp. reported a 20% drop in Q1 net income from a year earlier as losses jumped for U.S. credit cards and the bank took a bigger provision charge for credit losses.

The firm, known for its big presence in the subprime credit-card market, reported net income of $810 million for the Q1, or earnings per share of %1.54. Excluding an item pertaining to a U.K. insurance customer refund reserve, the bank reported net profit of $910 million and earnings per share of %1.75.

The bank, often looked a by analysts as a gauge of consumers' ability to pay back their debts, reported that domestic credit-card net charge-offs reached 5.14% in the Q1. That was up from 4.16% a year prior. The company wide provision for credit losses jumped 30% from a year earlier to $1.9 billion.
 
For more details, click below link :
Capital One Earnings Fall as Charge-Offs Increase 

Prior to the Q1 earnings release, Capital One Bank, in a cost-cutting measure, is closing its Rio Grande Valley branches in June  and will rely instead on online banking and ATMs in the region as reported by Valley Morning Star on 23 March.

A spokesperson for the nation's eighth-largest bank holding company said that the decision was based on cost and changing consumer habits.

More details, click below link :
Capital One closing branches in Valley 

Few days later, on 31 March, a local website reported that Capital One is closing its seven San Antonio-area branches in June as part of an ongoing consolidation of its banking network.

The branch closings follow an industry trend as more customers use institutions' mobile apps and websites to conduct financial transactions.
 
Click below link for details :
Capital One closing San Antonio-area branches 

In the upcoming post. we shall look at the company price chart reaction towards these events.

 
Source :
1) www.mysanantonio.com
2) www.foxbusiness.com
3) Dow Jones Newswires
4) www.wsj.com
5) www.valleymorningstar.com