McLEAN, Va. — Auto finance originations by Capital One Financial Corp. picked up significantly during the fourth quarter when compared to the close of 2010.

Capital One recently revealed its fourth-quarter originations totaled $3.6 billion, 61.8 percent higher than the fourth quarter of 2010. The figure also represented 5.2-percent jump from the third quarter of 2011.

When discussing its auto finance business, the company indicated its net charge-off and delinquency rates increased in the fourth quarter, consistent with expected seasonal patterns. However, Capital One pointed out charge-offs and delinquencies for the year improved 58 basis points and 70 basis points, respectively.

Officials found their 30-day delinquency rate settled at 6.88 percent in the fourth quarter, up from 6.34 percent in the previous quarter. However, they noted at the close of 2010, the delinquency rate stood at 7.58 percent.

Capital One determined its fourth-quarter net charge-off rate settled at 2.07 percent, marking a rise from the third quarter when it was 1.69 percent. A year earlier, the company's charge-off rate was 2.65 percent.

All told, officials tabulated their entire fourth-quarter auto loan portfolio came in at $21.78 billion, the highest figure dating back to the end of 2010. A year earlier, Capital One's auto portfolio measured $17.87 million.

Overall Company Performance

Looking at how Capital One fared as a whole during the fourth quarter, the company determined its net income came in at $407 million or 88 cents per diluted common share.

During the third quarter, the company generated $813 million or $1.77 per diluted common share in net income. In the year-ago quarter, the net income figure was $697 million or $1.52 per diluted common share.

For the full year, Capital One said its net income came in at $3.1 billion or $6.80 per diluted common share compared with net income of $2.7 billion or $6.01 per diluted common share a year earlier.

"In 2011, we made significant investments to restart growth across our lending businesses after a long period of cyclical declines in loan volumes, and we're seeing these investments gain traction," explained Capital One chairman and chief executive officer Richard Fairbank.

"The strong underlying performance of our businesses and the compelling financial and strategic value of our planned acquisitions put us in a position to deliver and sustain shareholder value through growth potential, strong returns and strong capital generation," Fairbank continued.

The company noted that it expects to close the acquisition of ING Direct in the first quarter and the acquisition of the HSBC US Card business in the second quarter.

"The acquisitions will have significant impact on reported results, especially in 2012, from the purchase accounting effects, integration expenses and partial year impacts of these acquisitions," officials projected.

Wall Street Reaction

Capital One's financial performance didn't sit well with Wall Street analysts.

Bloomberg reported that Capital One officials were pressed by analysts on an increase in expenses after fourth-quarter profit missed estimates.

According to this online report, at least six analysts out of 11 asking questions on a conference call pushed for clarity on costs after company said noninterest expense rose 25 percent to $2.62 billion.

Bloomberg recapped that Capital One's net income fell 42 percent to $407 million, and earnings from continuing operations were 89 cents a share, missing the $1.55 estimate of 28 analysts the new service surveyed.

"Communication is key in this business, and if there are sizeable one-time factors coming through it would have been nice to discuss this in advance," Jason Arnold, an RBC Capital Markets analyst with an "outperform" rating on the firm, told Bloomberg. "I think a lot of people felt broadsided."

The report mentioned Capital One conceded some expenses were one-time costs as Fairbank readies the firm to integrate acquisitions while the company spent more on marketing, salaries, infrastructure and technology systems.

"We're going to be adding tens of millions of new customers, increasing our overall customer account base by more than a third," chief financial officer Gary Perlin insisted on the conference call. "Infrastructure that complex is something we would have been building over time. We've accelerated these efforts."