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Capital One Trounces Analysts’ Estimates in its Q3 Report

Amanda Alix
October 19, 2012

Capital One Financial (NYSE: COF  ) made quite a splash after hours yesterday, as it presented a Q3 report that was simply amazing, smashing analysts' predictions and showing that the tried-and-true formula of acquisition and increased lending really does work wonders for financial institutions, despite the stalled economy and low interest rate climate.

A real recipe for success
Other financial movers and shakers that are following this path have also turned in sparkly reports. M&T Bank (NYSE: MTB  ) , for example, made a stellar showing, offering up numbers borne of its ambition in the acquisition and lending arenas. For Capital One, CEO Richard Fairbank was clear that the company's recent acquisitions of HSBC Holding's (NYSE: HBC  ) U.S. credit card unit and ING Groep's (NYSE: ING  ) online banking business, ING Direct, deserved credit for Capital One's increased bottom line.

No doubt, that bottom line is now well padded. Income skyrocketed 47% from one year