(Reuters) - Capital One Financial Corp (COF.N) said it would sell $1.25 billion of its common stock to pay for a portion of its acquisition of HSBC’s (HSBA.L) U.S. credit card business and forecast a strong first-quarter profit.
Last August, the credit card company turned U.S. bank agreed to buy HSBC’s domestic card business, including its $30 billion credit card portfolio, and had said it would raise capital to pay for the deal. [ID:nL3E7JA099]
Separately, Capital One said in the first quarter it expects earnings per share from continuing operations of at least $2.50.
Analysts, on average, were expecting the company to post a profit of $1.37 a share, according to Thomson Reuters I/B/E/S.
Capital One also said it expects its Tier 1 common ratio -- a measure of bank stability -- to be well above 11 percent at the end of the first quarter.
Shares of the McLean, Virginia-based company closed at $52.33 on Wednesday on the New York Stock Exchange.
Reporting by Jochelle Mendonca in Bangalore; Editing by Supriya Kurane