Capital One Swings to Loss After Discover Financial Acquisition

Mclean, Va.-based Capital One posted a loss of $4.28 billion, or $8.58 a share.© Diane Bondareff/Associated Press

Capital One reported a loss in the second quarter as it completed its acquisition of Discover Financial Services.

Mclean, Va.-based Capital One on Tuesday posted a loss of $4.28 billion, or $8.58 a share, in the second quarter, compared with a profit of $597 million, or $1.38 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $5.48, ahead of the $4.03 forecast by analysts, according to FactSet.

Revenue rose 31%, to $12.49 billion. Analysts surveyed by FactSet forecast revenue of $12.72 billion.

Capital One completed its $35 billion acquisition of Discover in May. The transaction’s dent to earnings per share was around $14.06 after tax.

Net interest income climbed 32%, to $10 billion, and noninterest income increased 27%, to $2.5 billion. Capital One also tripled its provision for credit losses to $11.43 billion.

Write to Katherine Hamilton at katherine.hamilton@wsj.com