Mclean-based Capital One Financial Corporation (NYSE: COF) released fourth quarter 2011 and full-year financial results after markets closed Thursday but disappointed investors with net income nearly cut in half compared to the third quarter of 2011.
Net income decreased by $406 million to $407 million or $0.88 centsper diluted common shareversus $813 million or $1.77per diluted common shareaccording to the credit card lender and bank. In the fourth quarter of 2010 net income was $697 million, or
Revenue was also down 2.5 percent or $104 million to $4.05 billion versus $4.15 billion in the third quarter 2011.
"In 2011, we made significant investments to restart growth across our lending businesses after a long period of cyclical declines in loan volumes, and we're seeing these investments gain traction," stated
Analyst estimated an average net income of $1.52per share and actual results were far below that. Revenue was also estimated to be higher at an average of $4.34 billion.
Capital One expects to complete the acquisition of ING Direct and HSBC U.S. card businesses in the first and second quarters respectively.
Capital One shares were down -6.66 percent to $45.52 in late morning Friday trading. The stock is down from its 52 week high of $56.26.