January 23, 2018 / 9:40 PM / 6 months ago

Capital One Financial posts $1 billion quarterly loss

(Reuters) - U.S. credit card issuer Capital One Financial Corp (COF.N) on Tuesday reported a fourth-quarter loss of $1.05 billion on large provisions for income taxes, credit losses and recent changes to the U.S. tax law.

The provision for income taxes rose to $2.17 billion from $342 million last year, and the provision for credit losses increased 10 percent to $1.92 billion.

Capital One also took a hit of $1.77 billion related to the recent tax code changes.

The company swung to a quarterly loss of $1.05 billion, or $2.17 per share from a profit of $710 million, or $1.45 per share, a year earlier.

U.S. banks are being pressured as a rising number of Americans fall behind on their credit card payments, forcing them to set aside more money to cover defaults.

The company said net interest income in the quarter rose 6.7 percent to $5.81 billion.

Excluding items, Capital One earned $1.62 per share.

Period-end loans held for investment, which includes domestic card and commercial banking loans, increased 1 percent to $254.5 billion.

Shares of Capital One were down about 1.5 percent at $104.01 after the bell.

Reporting by Diptendu Lahiri in Bengaluru; Editing by Bernard Orr

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