Capital One Profits Hit by Consumer Slump

The segment recorded net income of $340.4 million, down 31% from the first quarter and 43% from a year earlier. Revenue from U.S. cards dropped 10% from the first quarter to $280.7 million. The company's so-called "managed loans" rose a mere 2.3% from the prior year's $68.1 billion.

U.S. card charge-offs jumped 41 basis points from the first quarter to 6.26% and by 270 basis points from a year earlier to 6.26%. The company reiterated that it expects the charge-off rate to be in the low 6% range in the third quarter and rising to 7% in the fourth quarter. Charge-offs for credit cards typically are higher than mortgages and other home loans because they are unsecured loans.

The company has previously said that it is pulling back on loan growth as industry trends and economic indicators weaken.

Still, the U.S. card segment remains "well-positioned to successfully navigate near-term challenges" and to "deliver solid results through the economic cycle," it said.