The lower provision for credit losses and a decline in income tax provision drove Capital One Financial (COF) earnings higher by 38% for the third quarter. Despite lower non-interest income hurting the top line, the results exceeded analysts’ expectations. Following this, the stock moved up over 1% in the after-market session.

Net income climbed 38% to $1.44 billion and earnings soared 40% to $2.99 per share. Adjusted earnings increased to $3.12 per share from $2.42 per share in the prior-year quarter.

However, total net revenue declined 0.3% to $6.96 billion due to lower non-interest income and a marginal rise in net interest income.

Provisions for credit losses fell 31% year-over-year to $1.27 billion. Allowance for loan and lease losses declined 3% to $7.22 billion. Net charge-offs tumbled 11% to $1.43 billion.

Period-end loans held for investment in the quarter rose 1% to $238.8 billion from the previous quarter. Credit Card period-end loans rose 1% to $110.7 billion. Consumer Banking period-end loans increased 1% to $59.3 billion and Commercial Banking period-end loans grew 2% to $68.7 billion.

Average loans held for investment declined 2% sequentially to $236.8 billion due to the timing of the sale of substantially all of its consumer home loan portfolio. Period-end total deposits decreased less than 1% to $247.2 billion, while average deposits declined 1% to $246.7 billion.

Shares of Capital One Financial ended Tuesday’s regular session down 1.68% at $87.04 on the NYSE. The stock has fallen about 3% in the past year and over 12% in the year so far.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.