(Bloomberg) -- Capital One Financial Corp (NYSE:COF). said it more than tripled reserves for souring loans from a year ago, prompted by the coronavirus pandemic and a drop in oil prices during the first quarter.
The bank said it set aside $5.42 billion in provisions in the first three months of the year. The total allowance for credit losses increased due to “significant economic uncertainty” from the pandemic and “credit deterioration in the oil and gas industry.”
“Capital One rapidly mobilized to respond to Covid-19 and the disruption it is causing,” Chief Executive Officer Richard Fairbank said Thursday in a statement announcing the results. “We are well positioned to navigate and manage through these uncertain times, and to emerge with strength on the other side.”
The shares gained 2.1% to $52.61 Thursday in regular New York trading. They have plunged 49% this year, compared with the 30% decline of the S&P 500 Financials Index.
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