Capital One Profit Up 20%

The card company's revenue rises 22%.
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Capital One

(COF) - Get Report

jumped 20% in the third quarter, buoyed by last year's acquisition of the New Orleans bank Hibernia Corp.

The McLean, Va., company says profit rose 20% from a year ago, to $587.8 million, or $1.89 per diluted share, compared with $491.1 million, or $1.81 a share. Managed revenue rose 22%, to $3.49 billion. Net interest income jumped 42%, to $1.29 billion.

Analysts had expected Capital One to earn $1.80 on $3.48 billion in managed revenue, according to Thomson Financial.

"Capital One delivered solid profit and loan growth in the third quarter, reflecting strong performance across our business segments, a continuing favorable credit environment, and expected seasonal patterns," the company said in a press release.

The company expects to complete its acquisition of

North Fork Bancorp

(NFB)

of Melville, N.Y., this quarter.

Capital One's "managed loans" rose 32% from last year's third quarter and 4% from the second quarter, to $112.2 million, though $16.3 billion of the new loans were acquired with Hibernia in November of last year.

Profits from Capital One's banking segment, which is mostly made up of its acquisition of Hibernia last year, rose just 6.8% from the second quarter, to $46.2 million. Deposits remained relatively flat at $35.7 billion.

Shares of the company fell 55 cents, to $80.11 at market close, but rose 39 cents to $80.50 in after-market trading.