NEW YORK (Standard&Poor's) July 18, 2014--Capital One Financial Corp. (Cap One) reported good second-quarter results, which were in line with Standard&Poor's Ratings Services' expectations. Our ratings on Capital One (BBB/Stable/--) remain unchanged. The company posted pretax earnings of $1.8 billion, up compared with $1.7 billion in the previous quarter but down slightly from $1.9 billion in second-quarter 2013. Earnings primarily benefited from strong card interchange fees, as purchase volumes rebounded 19% from a seasonally weaker first-quarter, lower credit loss provisions, resulting in a $100 million allowance release, and an $18 million benefit related to mortgage representation and warranty reserves. These together offset lower net interest income (reflecting margin compression across lending segments) and elevated marketing costs.
