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Capital One profit plunges on higher provisions


    (Reuters) - Capital One Financial Corp's quarterly net income plunged almost 90 percent as the lender set aside more money to cover non-impaired loans brought on from the purchase of the U.S. credit card portfolio of HSBC Plc.

    Net income for the second quarter fell to $92 million, or 16 cents per share, from $911 million, or $1.97 per share, a year earlier.

    Provision for credit losses, which rose almost four-fold to $1.7 billion in the quarter, included a $1.2 billion allowance build for the non-impaired loans brought on to the balance sheet as a result of the HSBC U.S. card acquisition last year.

    Total net revenue was up 2 percent at $5.1 billion.

    The bank agreed to pay $210 million earlier on Wednesday to resolve charges by regulators that its call-center representatives misled consumers into paying for extra credit card products.

    Capital One shares closed at $54.89 on Wednesday on the New York Stock Exchange.

    (Reporting by Aman Shah in Bangalore; Editing by Viraj Nair, Maju Samuel)