Capital One Profits Hit by Consumer Slump

Capital One's (COF Quote) profit slumped 40% in the second quarter, fueled by worsening credit trends in the consumer card issuer's U.S. credit card business.

The McLean, Va.-based financial firm made $452.9 million, or $1.21 a share in the second quarter, missing analysts' estimates by a dime, according to Thomson Reuters. In the year-earlier period, Capital One made $750.4 million, or $1.93 a share. Net income from continuing operations -- which excludes a loss related to the shutdown of GreenPoint Mortgage in August 2007-- was $462.5 million, or $1.24 a share, compared to $767.6 million, or $1.93 a share, a year earlier.

The company said it added a provision of $829.1 million in the quarter to cover against loan losses, down 23% from the first quarter provision but more than double its provision a year earlier. ...