(Reuters) - Capital One Financial Corp (COF.N), one of the largest credit card issuers in the United States, reported a quarterly profit that narrowly missed Wall Street’s estimates as the company set aside more money to cover bad loans.
The payment services provider set aside $1.11 billion to cover bad loans in the fourth quarter ended Dec. 31, up nearly 16 percent from a year earlier.
Net income attributable to the company’s shareholders rose to $974 million, or $1.73 per share, from $835 million, or $1.43 per share.
Analysts on average were expecting earnings of $1.74 per share, according to Thomson Reuters I/B/E/S/.
The company, which also offers commercial banking services, said total non-interest expense rose 2 percent in the quarter, mainly due to a 19 percent jump in marketing costs.
Rival Discover Financial Services Inc (DFS.N) also reported on Wednesday that quarterly profit missed markets estimates as it set aside more money to cover soured loans.
Larger rival American Express Co (AXP.N) also said on Wednesday that its provisions for bad loans rose, but reported a higher quarterly profit, helped by rising use of its credit cards.
Capital One’s shares fell 0.6 percent to $75.75 in extended trading on Thursday, after closing at $76.20 in regular trading on the New York Stock Exchange.
Reporting By Sudarshan Varadhan in Bengaluru; Editing by Savio D'Souza