NEW YORK ( TheStreet) -- Capital One ( COF) reported an 85 percent quarterly profit increase as losses on its credit card portfolio slackened.

The bank said that net income for the fourth quarter of 2010 was $697 million, or $1.52 per common share, versus net income of $376 million, or $0.83 per share during the same period last year.

Analysts had expected Capital One to report $1.35 to $1.40 per share, according to Thomson/Reuters.

Annual net income was $2.7 billion, or $6.01 per share, compared to net income of $320 million, or $0.74 per share for 2009. The 2009 annual net income included the $563.9 million repayment to the Troubled Asset Relief Program.

Capital One picked up $1 billion in loans during the quarter. Charge-offs as a percentage of loans improved to 4.45 percent in the fourth quarter of 2010 compared with 6.33 percent at the end of 2009.

--Written by Maria Woehr in New York.

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