Capital One Financial Corp., Falls Church, VA, had revenue of $1.62 billion in the second quarter of 2001, up from $1.51 billion in second quarter 2000. Net income during the same period rose from $143.6 million to $155.3 million.
By heavily promoting a 0% teaser offer, the company’s net interest margin dropped to 9.11% during the second quarter, down from 10.88 percent in second quarter 2000. Capital One spent $268.7 million in marketing during the second quarter, up $57.1 million from the $211.6 million it spent in the year-ago quarter. Its charge-off rate increased from 3.75% in the first quarter of 2001 to 3.98% in the quarter just ended.
During the quarter, the consumer lending and credit products direct marketer added 1.7million net new accounts, bringing its total portfolio to 38.1 million accounts. It also increased its managed consumer loan balances by $3.7 billion, to $35.3 billion.
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