Capital One CEO Richard Fairbank on Tuesday shared his perspective on how American consumers are holding up during the financial institution’s quarterly earnings call. He was asked by an analyst about how Capital One views the state of the American consumer in light of concerns in the market surrounding the Trump administration’s tariffs. Fairbank said the U.S. consumer "remains a source of strength in the economy," adding that was "true for almost any metric that we look at." "Consumer debt serving burdens ...

Shares of the large lender Capital One (COF 4.36%) were trading nearly 5% higher at noon today. The company reported its first-quarter earnings results after the market closed yesterday, delivering an earnings beat but a slight miss on revenue.Solid earnings and merger approvalCapital One reported adjusted earnings per share of $4.06, well ahead of analyst estimates. However, revenue of $10 billion came up slightly short of estimates. Meanwhile, credit metrics held up well, with expected loan losses and 30- ...

Core Insights - The acquisition of Discover Financial Services by Capital One is viewed as a transformative strategy to create a leading consumer banking and payments platform [1][2] - Capital One's credit metrics are improving, with delinquency rates showing a steady decline and purchase volumes increasing by 5% in the latest quarter [4][6] Acquisition Impact - The Discover acquisition is expected to enhance Capital One's consumer card and digital banking presence, leveraging Discover's growth platform and customer base of over 100 million [2][3] - The integration aims to combine proven banking and credit card businesses with a global payments network, enhancing Capital One's technology and digital capabilities [2][3] Financial Performance - In Q1, Capital One released $458 million in reserves due to favorable credit performance, with purchase volume growth reaching nearly $158 billion [4] - Loans in the card business increased by 4% year over year to $6.4 billion, while the headline charge-off rate was 6.2%, a slight increase from the previous year [4][5] Delinquency and Consumer Behavior - The 30-plus delinquency rate improved to 4.25%, down 23 basis points from the prior year, indicating a positive trend in credit quality [6] - Despite some consumers facing pressure from inflation and higher interest rates, the overall U.S. consumer remains strong, with improving payment rates and increased spending observed in April [7][8]

For the quarter ended March 2025, Capital One (COF) reported revenue of $10 billion, up 6.4% over the same period last year. EPS came in at $4.06, compared to $3.21 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $10.03 billion, representing a surprise of -0.28%. The company delivered an EPS surprise of +10.93%, with the consensus EPS estimate being $3.66.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Group 1: Earnings Performance - Capital One reported quarterly earnings of $4.06 per share, exceeding the Zacks Consensus Estimate of $3.66 per share, and up from $3.21 per share a year ago, representing an earnings surprise of 10.93% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] - The company posted revenues of $10 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.28%, compared to $9.4 billion in the same quarter last year [2] Group 2: Stock Performance and Outlook - Capital One shares have declined approximately 7.4% since the beginning of the year, while the S&P 500 has decreased by 12.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $3.85 on revenues of $10.11 billion, and for the current fiscal year, it is $15.43 on revenues of $41.01 billion [7] Group 3: Industry Context - The Financial - Consumer Loans industry, to which Capital One belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Capital One's stock performance [5][6]

1 Forward-Looking Statements This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained in Capital One's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Please note that the following materials containing information regarding Capital One's financial performance is preliminary and based on Capital One's data available at the time of the earnings presentation. It speaks only as ...

Financial Data and Key Metrics Changes - In Q1 2025, Capital One earned $1.4 billion, or $3.45 per diluted common share, with adjusted earnings per share at $4.06 [9][10] - Revenue declined 2% from the previous quarter, primarily due to two fewer days in the quarter [11] - Provision for credit losses was $2.4 billion, a decrease of $273 million compared to the prior quarter, driven by lower net charge-offs and a larger reserve release [11][12] Business Line Data and Key Metrics Changes - Domestic card business saw a 5% year-over-year purchase volume growth, with ending loan balances increasing by $6.4 billion, or about 4% year over year [22] - Consumer banking ending loan balances increased by $3.8 billion, or about 5% year over year, with auto originations up 22% from the prior year [28][27] - Commercial banking revenue was down 7% from the linked quarter, with ending deposits down about 5% [31] Market Data and Key Metrics Changes - Total liquidity reserves increased to $131 billion, up $7 billion from the previous quarter, with a cash position of approximately $49 billion [16] - The net interest margin for Q1 was 6.93%, a decrease of 10 basis points from the last quarter, but an increase of 24 basis points year-over-year [18] Company Strategy and Development Direction - The acquisition of Discover is expected to create a leading consumer banking and payments platform, enhancing competition and creating significant value for merchants and customers [34][38] - The company is focused on leveraging technology transformation to build a digital-first national bank, with significant investments in marketing to attract high-spending customers [86][100] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. consumer remains strong, with low unemployment and stable debt servicing burdens, although some consumers are feeling pressure from inflation and higher interest rates [46][49] - The company is closely monitoring credit metrics and consumer spending trends, indicating a cautious but optimistic outlook [58][60] Other Important Information - The company released $368 million in allowance this quarter, bringing the allowance balance to $15.9 billion, with a total portfolio coverage ratio of 4.91% [12][19] - The company expects to achieve estimated synergies from the Discover acquisition within 24 months following the closing date [35][36] Q&A Session Questions and Answers Question: Concerns regarding tariffs and the state of the consumer - Management highlighted that the U.S. consumer remains a source of strength, with improving credit metrics and stable job creation [46][48] Question: Timing for achieving synergies from the Discover acquisition - Management indicated that the assumptions for synergies remain intact, with a timeline shifted back slightly due to the later closing date [70][129] Question: Marketing investment and growth opportunities - Management discussed significant marketing investments aimed at customer growth, particularly in the card business, while balancing risk management [78][90] Question: Technology integration between Capital One and Discover - Management expressed confidence in leveraging Capital One's technology transformation to modernize Discover's systems, although it will take time [114][117]

Exhibit 99.2 Capital One Financial Corporation Financial Supplement First Quarter 2025 Table of Contents (1)(2) 1 | | | | | | | 2025 Q1 | | | --- | --- | --- | --- | --- | --- | --- | --- | | | 2025 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | | (Dollars in millions) | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q1 | | Balance Sheet (Period-End) | | | | | | | | | Loans held for investment | $323,598 | $327,775 | $320,243 | $318,186 | $315,154 | (1)% | 3 % | | Interest-earning assets | 463,414 | 463,058 | 458,189 | 452,547 ...

Capital One Financial's (COF 1.20%) planned acquisition of Discover Financial Services (DFS 3.35%) has received regulatory approval, and investors are breathing a sigh of relief.Shares of Discover opened up 7% and Capital One up 5%, before retreating with the broader market to up 2% and 1% as of 11:30 a.m. ET. MasterCard (MA -2.30%) and Visa (V -3.47%) were headed in the other direction, both down about 3% midday.A credit card powerhouseCapital One and Discover are two of the biggest names in credit cards. ...

Core Viewpoint - Capital One has received all necessary regulatory approvals to proceed with its acquisition of Discover Financial Services, valued at $35.3 billion, with the transaction expected to close on May 18, 2024, subject to customary conditions [1][2]. Group 1: Regulatory Approvals - The Federal Reserve Board and the Office of the Comptroller of the Currency (OCC) have approved the merger, indicating a thorough review process over the past 14 months [1][4]. - The OCC's approval is contingent upon addressing any outstanding enforcement actions against Discover [5]. Group 2: Company Statements - Capital One's CEO emphasized the importance of a competitive banking system and acknowledged the regulators' engagement during the review [2]. - Discover's Interim CEO stated that the merger would enhance competition in payment networks and provide a broader range of products, along with community benefits [2]. Group 3: Community Impact - Capital One has argued that the merger will provide greater benefits to underserved communities compared to the companies operating separately, addressing concerns raised by community groups [3]. Group 4: Regulatory Context - The Federal Reserve Board evaluated the merger based on financial resources, community needs, and competitive stability [4]. - The OCC's analysis focused on the merger's impact on communities and the overall banking industry [4]. Group 5: Recent Developments - On the same day as the merger approvals, the FDIC and Federal Reserve fined Discover for misclassifying consumer credit cards, which led to higher interchange fees for merchants [6].