US bank sector sees profit dip due to Capital One-Discover deal: FDIC

The completed merger between Capital One and Discover Financial weighed down bank profits in the second quarter, as the sector reported $69.9 billion in profits, down 1% from the quarter prior.

The Federal Deposit Insurance Corporation said accounting rules required the merged institution to set aside a relatively large amount of provision expense. Absent that one-time cost, industry profits would have been up for the quarter on higher net interest and noninterest income, the regulator said.