Capital One reports a yearly profit

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Capital One Financial Corp. reported a $319.9 million profit for the 2009, including the effect of a repayment of TARP money from the federal government.

The McLean banking and credit card company’s full-year earnings included the $563.9 million repayment of TARP (Troubled Asset Relief Program) funds.

Last year, Capital One lost $78.7 million.

The company earned $375.6 million during the fourth quarter, compared with $393.5 million in the third quarter.

Capital One’s credit card division increased its net income in the fourth quarter to $509.9 million from $291.7 million in the third quarter primarily because of lower expenses.

Its commercial banking segment reported a net loss of $136 million in the fourth quarter. Non-interest expense increased 18.9 percent to $197.4 million because of rising costs of loss mitigation and infrastructure investments.

The consumer banking division had a $7.7 million loss in the fourth quarter compared with a $145.2 million profit in the third quarter. Provision expense increased $93.3 million because of seasonal increases in auto finance and the continued decline in mortgage and home equity credit. 

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