Capital One Financial Corp. reported first-quarter earnings that fell short of Wall Street expectations, with provision for credit losses jumping 72% to $4.07 billion. The McLean, Virginia-based lender's adjusted earnings per share of $4.42 missed analyst predictions, while shares dropped 3.5% in extended trading. The stock has tumbled 16% this year, making it the worst performer in the KBW Bank Index.

The increase in loan loss provisions reflects growing pressure on consumer finances, driven partly by surging fuel costs. Data from Chime Financial Inc. showed customers spent 25% more on fuel in March compared to February. The bank's first-quarter net interest margin of 7.87% also came in below the 8.19% analysts had forecast, highlighting margin compression challenges.

Capital One's results underscore the strain on household budgets amid inflationary pressures and geopolitical tensions. The bank's aggressive provisioning suggests management anticipates further deterioration in credit quality. While the company recently completed its $5.15 billion acquisition of Brex to expand its corporate expense management capabilities, investors appear more focused on near-term credit risks and narrowing profit margins.