Capital One Financial (NYSE:COF) has reported second-quarter earnings that beat expectations as it benefitted from rising interest rates and loan demand.
The McLean, Virginia-based lender grew net-interest income by 9% to $7.1 billion in the three months to June 30, 2023, helping to lift net revenue by 1% to $9 billion.
While auto loan demand declined over the period, demand for credit card debt increased.
Average deposits increased by 1% to $343.7 billion.
Net income rose to 52% to $3.52 per share ahead of the $3.23 consensus forecast of analysts, according to Refinitiv.
"We continue to lean into attractive opportunities to grow and build our franchise in our domestic card and national retail bank businesses, and our opportunities are enhanced by our technology transformation," CEO Richard Fairbank said in a statement.
"Our investments to build and leverage a modern technology infrastructure are expanding our opportunities and driving value creation over the long term."
Contact the author at stephen.gunnion@proactiveinvestors.com