5 'Noisy' Banks and What They Really Earned

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Capital One

Capital One Financial (COF) reported first-quarter net income available to common shareholders of $1.4 billion, or $2.74 a share, which included a bargain purchase gain of $594 million from the acquisition of ING Direct (USA), as well as "a $160 million benefit related to the company's sale of Visa stock and subsequent reserve adjustments and the absence of approximately $150 million of unique contra-revenue items recorded in the fourth quarter."

Guggenheim Securities analyst Marty Mosby estimated that Capital One's "earnings power rebounded to $1.46" during the first quarter, "as the ING Direct acquisition was accretive, asset quality trends began to improve--further pushing the loan loss reserve release back up to $190 million--and seasonal factors raised revenues while pulling down marketing expenses."

Mosby expects that "the second quarter should benefit even more, as ING Direct will have been a part of COF for the entire quarter, and approximately $40 billion in excess liquidity will be deployed into the acquisition of the HSBC credit card portfolio," which will include $30 billion in domestic credit card loans.