TORONTO (Standard&Poor's) July 13, 2011--Standard&Poor's Ratings Services today said that its ratings and outlook on Capital One Financial Corp. (BBB/Negative/--) remain unchanged by the company's second-quarter 2011 earnings. Capital One posted income from continuing operations of $945 million, down 8% from the prior quarter. Earnings benefited from lower loan loss provisions ($191 million) but were offset by reduced non-interest income and higher marketing expenses. The net interest margin contracted marginally by 4 basis points to 7.20% as a decline in earning asset yields on the Kohl's portfolio was offset by lower cost of funds. Asset quality trends continued to improve as net charge-offs (NCOs) in the seasoned domestic card portfolio declined for the fifth consecutive quarter
