Capital One's deposits rise, but quarterly results are a miss
Capital One Financial Corp. stock dropped more than 4% in the extended session Thursday after the financial company missed Wall Street expectations for its first quarter despite a rise in retail deposits. Capital One earned $960 million, or $2.31 a share, in the first quarter, compared with $2.4 billion, or $5.62 a share, in the first quarter of 2022. Revenue dropped 2% to $8.9 billion, the company said. Analysts polled by FactSet expected it to report earnings of $3.84 a share on revenue of $9.1 billion. Capital One "built additional balance sheet strength as we grew retail deposits, and maintained or increased strong levels of capital and liquidity," founder and Chief Executive Richard D. Fairbank said in a statement. The company continues to see "attractive growth opportunities" in its U.S. card business and its digital retail bank, he said. Capital One stock ended the regular trading day up 1.7%.
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