At American Express, the credit card lender and payment network said net income rose to $716 million, or 60 cents a share, from $240 million, or 21 cents a share in the same quarter a year earlier. Revenues net of interest expense were roughly flat at $6.5 billion, beating analysts' forecast of $6.1 billion. Still, the lack of revenue gains, may have disappointed some investors. American Express shares were down 2.3 percent in after-hours trading.
Capital One - which operates a major commercial banking franchise alongside its better-known credit card business - reported net income available to common shareholders of $375.6 million or 83 cents per share, down from $393.5 million in third quarter 2009. In the year ago fourth quarter the company reported a net loss of $1.45 billion, which was at the height of the financial crisis.
Total revenue rose to $3.37 billion from $3.17 billion in the year ago fourth quarter. The McLean, Virgina-based company beat analyst expectations of 40 cents per share, but shares were off by 3.2 percent in aftermarket trading. Capital One reported its credit card business was the biggest profit driver for the quarter, reporting $509.9 million in net income from the unit, a 74 percent rise from the prior quarter's income. Credit card revenue was $2.9 billion, down 2.2 percent from the prior quarter.
In the most recent quarter, American Express' loan loss provision fell 47 percent from the year ago, to $748 million. At Capital One, credit card delinquencies remained high from the third quarter of 2009, as charge-offs remained roughly the same at 9.58 percent.
American Express suffered big credit losses in 2008 and 2009 after boosting its lending earlier this decade, but losses began stabilising last year. Capitol One's credit losses remained elevated through the end of 2009.