Providian Earnings Drop 57%

Providian Financial Corp., a San Francisco-based credit card issuer, reported Monday that second-quarter net income fell 57% and revenue fell 27%.

Income fell to $39 million, or 13 cents, from $89.9 million, or 53 cents, in the same period a year earlier. The company was expected to earn 10 cents, the average estimate of analysts surveyed by Thomson First Call. Revenue fell to $521.1 million from $718.3 million.

Results include $8 million, or 3 cents a share, in costs for anticipated sales; the company plans to sell $859 million in credit card loans in the next few weeks, Providian said.

“We remain focused in our efforts to improve the risk profile of our loan portfolio, and our pending sale of credit card loans is consistent with that strategy,” said Joseph Saunders, chairman and chief executive.

The company also said its banking subsidiary, Providian Bank, expects to sell about $859 million in credit card loans.

The sale is expected to close in the next few weeks, with the loan servicing to be transferred shortly thereafter.

Shares of Providian Financial fell 14 cents on Monday to $9.80 on the New York Stock Exchange. They have almost tripled during the last 12 months.

Bloomberg News was used in compiling this report.