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Capital One Financial Corp. said its second-quarter profit fell 39.6% from a year earlier, to $452.9 million.

The $151 billion-asset company's profit was down 17.4% from the first quarter. Per-share earnings were $1.21, 10 cents shy of the average Wall Street estimate.

Capital One, of McLean, Va., said it was affected by a $71 million decline in valuation on interest-only strips, which it largely offset by selling its class B shares of MasterCard Inc. stock at a $44.9 million gain.

The loan-loss provision fell 23.2% from the first quarter but rose 109% from a year earlier, to $829.1 million.

Net income from the banking unit fell 11.5% from the first quarter and 56.7% from a year earlier, to $67.1 million. The provision for loan losses in that unit rose 52.4% from the first quarter and 285% from a year earlier, to $92 million. Nonperforming loans rose 3.6% from the fourth quarter and 211% from a year earlier, to $249.1 million.

Capital One released its earnings after the market closed. Its shares had closed up 14.8%.

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