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Capital One Financial

(COF)

shares were falling in after-hours trading, after it swung to a first-quarter net loss driven by increased cushioning against mounting consumer credit losses.

The McLean, Va., credit and banking company posted a net loss from continuing operations of $86.9 million, or 39 cents, vs. $6.32.6 million, or $1.70 a share in the first quarter last year. The results improved sequentially from the fourth quarter, when the company lost $1.40 billion, or $3.67 a share.

Total revenue declined to $2.88 billion, from $3.87 billion in the year-ago period. Analysts polled by Thomson Financial had expected a loss of 8 cents a share on revenue of $4.17 billion.

Shares were falling 11.6% to $13.30 in recent after-hours trading.

"While our first-quarter results reflected significant pressures from the worsening economy, our balance sheet remained a source of strength," Chairman and CEO Richard Fairbank said in a written statement. "We continued to build our allowance, increase coverage ratios, and manage our capital levels well in excess of regulatory requirements."

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Capital One added $124.1 million to its allowance for loan losses, saying it expects higher charge-offs this year.

The company's net charge-offs as a percentage of total assets jumped to 4.41%, from 3.07% a year ago and $4.21% in the fourth quarter. The first-quarter figure does not include loans picked up in its acquisition of Chevy Chase Bank.

Capital One's U.S. Card charge-off rate increased to 8.4% in the first quarter, up from 8.1% it said it expected earlier. The company said it expects the U.S. Card monthly charge-off rate to exceed 10% "in the next couple of months."

The nonperforming asset rate jumped to 1.91%, from 0.62% a year ago and 1.39% in the fourth quarter.

Capital One, rivals

American Express

(AXP)

and

Discover Financial

(DFS)

and banks like

JPMorgan Chase

(JPM)

and

Bank of America

(BAC)

are expected to be among the 13 companies represented by executives at a White House summit Friday with President Barack Obama about lending practices.

This article was written by a staff member of TheStreet.com.