Capital OneCapital One late on Thursday reported second-quarter net income available to common stockholders of $1.100 billion, or $1.87 a share, increasing from $1.048 billion, or $1.79 a share, in the first quarter, and $92 million, or 16 cents a share, during the second quarter of 2012, when the company completed its acquisition of HSBC's ( HBC) U.S. credit card portfolio and set aside an additional $1.2 billion for loan loss reserves for the acquired loans. The year-earlier results also included a net $116 million in expenses from regulatory fines and customer refunds related to cross selling of "credit protection" services to its credit card customers. The company's net revenue for the second quarter was $5.638 billion, increasing from $5.551 billion the previous quarter and $5.055 billion a year earlier. Results came ahead of the consensus estimates of $1.72 a share in earnings and revenue of $5.535 billion. The main factor in the sequential earnings improvement was a decline in the provision for credit losses to $762 million in the second quarter from $885 million in the first quarter. During the second quarter, Capital One's average credit card loan balances declined by 6% from the first quarter to $77.946 billion. Meanwhile, the company's average commercial loans were up 2% during the quarter to $39.512 billion.
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