Financial Data and Key Metrics Changes - In Q3 2025, Capital One earned $3.2 billion, or $4.83 per diluted common share, with adjusted earnings per share at $5.95 after accounting for acquisition-related items [5][6] - Revenue increased by $2.9 billion, or 23%, compared to the previous quarter, while non-interest expense rose by 18% [7] - The provision for credit losses was $2.7 billion, with a $760 million allowance release bringing the total allowance balance to $23.1 billion [7][8] Business Line Data and Key Metrics Changes - Domestic card segment saw a 39% year-over-year purchase volume growth, primarily due to the Discover acquisition, with ending loan balances increasing 70% year-over-year [11][12] - Consumer banking revenue grew by 28% year-over-year, driven by the full quarter of Discover and growth in auto loans [16][17] - Commercial banking ending loan balances were up 1% from the linked quarter, with a net charge-off rate of 0.21% [18] Market Data and Key Metrics Changes - Total liquidity reserves ended the quarter at $143 billion, with a cash position of $55.3 billion [9] - The net interest margin (NIM) was 8.36%, a 74 basis point increase from the prior quarter, driven by the full quarter of Discover's impact [9][10] Company Strategy and Development Direction - The integration of Discover Financial Services is expected to deliver $2.5 billion in combined synergies, with a focus on moving debit and credit volume to the Discover network [18][19] - Capital One is investing significantly in technology and marketing to enhance its competitive position, particularly in the high-end credit card market [20][23] - The company aims to leverage its technology transformation to capitalize on new growth opportunities, including AI-driven experiences [24][25] Management's Comments on Operating Environment and Future Outlook - The U.S. consumer remains resilient, with low unemployment and stable debt servicing burdens, although there are concerns about inflation and economic uncertainty [30][31] - Charge-off rates have improved, and delinquencies are in line with normal seasonality, indicating a stable credit environment [31][32] - Management acknowledges the need for sustained investments to capitalize on growth opportunities and maintain competitive advantages [25][26] Other Important Information - The common equity tier one capital ratio ended the quarter at 14.4%, with a new share repurchase authorization of up to $16 billion approved by the board [10] - The quarterly marketing expense was approximately $1.4 billion, reflecting increased investment in customer acquisition and premium benefits [15] Q&A Session Summary Question: Consumer health and economic outlook - Management noted that the U.S. consumer remains resilient, with low unemployment and stable debt servicing, but acknowledged economic uncertainties [30][31] Question: Capital return and share repurchase plans - Management indicated plans to increase share repurchases, depending on capital levels and market conditions [38] Question: Discover portfolio growth headwinds - Management discussed the "growth brownout" due to prior credit policy cutbacks at Discover, which may impact growth in the near term [40][46] Question: Investment opportunities and guidance - Management emphasized that many investment opportunities have been years in the making, with incremental investments expected to yield returns [52] Question: Discover brand and competitive dynamics - Management expressed confidence in the Discover brand and its potential for growth, while acknowledging increased competition in the high-end market [73][80]

Financial Data and Key Metrics Changes - In Q3 2025, Capital One earned $3.2 billion, or $4.83 per diluted common share, with adjusted earnings per share at $5.95 after accounting for acquisition-related items [5][6] - Revenue increased by $2.9 billion, or 23%, compared to the previous quarter, while non-interest expense rose by 18% [6] - Pre-provision earnings were up 29%, with a provision for credit losses of $2.7 billion, reflecting a modest increase in credit loss provisions [6][10] Business Line Data and Key Metrics Changes - Domestic card segment saw a year-over-year purchase volume growth of 39%, primarily due to the Discover acquisition, while excluding Discover, growth was about 6.5% [11][12] - Consumer banking revenue increased by approximately 28% year-over-year, driven by the full quarter of Discover and growth in auto loans [16][17] - Commercial banking ending loan balances were up 1% from the previous quarter, with average loan balances remaining flat [13][18] Market Data and Key Metrics Changes - Total liquidity reserves ended the quarter at $143 billion, down roughly $1 billion from the last quarter [9] - The net interest margin (NIM) for Q3 was 8.36%, a 74 basis point increase from the prior quarter, driven by the full quarter impact of Discover [9][10] Company Strategy and Development Direction - The integration of Discover Financial Services is expected to deliver $2.5 billion in combined synergies, with a focus on moving debit and credit card volume to the Discover network [19][20] - The company is committed to significant investments in technology and marketing to capitalize on growth opportunities, particularly in the premium card segment [21][23] - Capital One aims to enhance its national retail bank capabilities while leveraging its technology transformation to drive growth [22][24] Management's Comments on Operating Environment and Future Outlook - The U.S. consumer remains resilient despite economic uncertainties, with stable debt servicing burdens and improving charge-off rates [30][31] - Management acknowledges potential pressures from inflation and higher interest rates but remains optimistic about credit performance and recovery trends [30][32] - The company is focused on maintaining strong credit quality while navigating the competitive landscape in the premium card market [23][76] Other Important Information - The common equity tier one capital ratio ended the quarter at 14.4%, with a new share repurchase authorization of up to $16 billion approved by the board [10][11] - The quarterly marketing expense was approximately $1.4 billion, reflecting a 26% increase year-over-year, driven by the addition of Discover marketing [14][15] Q&A Session Summary Question: Insights on consumer health and credit performance - Management noted that the U.S. consumer remains resilient, with low unemployment and stable debt servicing, despite some economic pressures [30][31] Question: Capital return and share repurchase plans - The company plans to increase share repurchases, with actions depending on capital levels and market conditions [37][38] Question: Discover portfolio growth headwinds - Management discussed the "growth brownout" due to prior credit policy cutbacks at Discover, which may impact growth in the near term [39][40] Question: Investments and future guidance - Management emphasized that many investment opportunities have been years in the making, with incremental investments expected to yield returns [49][50] Question: Reserve rates and charge-off trends - The company explained that reserve levels are influenced by credit performance and economic forecasts, with delinquencies serving as a leading indicator [60][62] Question: Discover brand and competitive dynamics - Management expressed confidence in the Discover brand's potential and outlined plans to leverage its strengths while navigating competitive pressures in the premium market [68][76]

Financial Data and Key Metrics Changes - In Q3 2025, Capital One reported earnings of $3.2 billion or $4.83 per diluted share, with adjusted earnings per share at $5.95 after accounting for acquisition-related items [4][5] - Revenue increased by $2.9 billion or 23% compared to Q2 2025, while non-interest expenses rose by 18% [5] - Provision for credit losses was $2.7 billion, with a $760 million allowance release, bringing the total allowance balance to $23.1 billion [6][10] Business Line Data and Key Metrics Changes - Domestic Card segment saw a $753 million allowance release, with a coverage ratio of 7.28% [7] - Consumer Banking segment's ending loan balances increased by $6.5 billion or about 8% year over year, with deposits growing by 35% [20][21] - Commercial Banking segment's ending loan balances were up 1%, with a criticized performing loan rate of 5.13% [22][23] Market Data and Key Metrics Changes - Year-over-year purchase volume growth for the Domestic Card segment was 39%, driven primarily by the Discover acquisition [14] - Auto originations in Consumer Banking were up 17% from the prior year quarter, reflecting strong market growth [20] - The global payment network transaction volume for the quarter was approximately $153 billion [20] Company Strategy and Development Direction - The integration of Discover is expected to deliver $2.5 billion in combined synergies, with revenue synergies anticipated to ramp up in early 2026 [24][26] - The company aims to leverage its technology transformation to enhance its national retail banking capabilities and expand its debit network [27][28] - Capital One is focusing on investing in AI-driven experiences and maintaining a competitive edge in the high-end card market [30][32] Management's Comments on Operating Environment and Future Outlook - The U.S. consumer remains resilient, with low unemployment and stable debt servicing burdens, although economic uncertainty persists [39][40] - Charge-off rates have improved, with the domestic card charge-off rate at 4.63%, down from previous quarters [42] - Management acknowledges the need for sustained investment to capitalize on growth opportunities, particularly in the premium card segment [34][35] Other Important Information - The common equity Tier 1 capital ratio ended the quarter at 14.4%, with a new share repurchase authorization of up to $16 billion approved [12] - The quarterly common stock dividend is expected to increase from $0.60 to $0.80 per share, subject to Board approval [12] Q&A Session Summary Question: Consumer Health and Economic Outlook - Management noted that the U.S. consumer remains resilient despite economic uncertainties, with charge-off rates improving and delinquencies in line with seasonal expectations [39][42] Question: Capital Return and Share Repurchase Plans - The company plans to increase the pace of share repurchases, with flexibility depending on capital levels and market conditions [52][53] Question: Discover Portfolio Growth Challenges - Management discussed a "brownout" period for growth due to previous credit policy adjustments at Discover, but remains optimistic about long-term potential [55][62] Question: Investment Opportunities and Future Guidance - Management emphasized that many investment opportunities have been years in the making, with a focus on accelerating growth in various segments [71] Question: Reserve Rates and Charge-Off Trends - Management explained that reserve rates are influenced by economic assumptions and credit performance, with expectations for future losses being closely monitored [82][84] Question: Discover Brand and Competitive Dynamics - Management expressed confidence in the Discover brand's potential and plans to leverage its strengths while navigating competitive pressures in the high-end card market [91][102]

Third Quarter 2025 Results October 21, 2025 C O N F I D E N T IAL Certain statements in this presentation and other oral and written statements made by Capital One from time to time are forward-looking statements, including those that discuss, among other things: strategies, goals, outlook or other non-historical matters; projections, revenues, income, returns, expenses, assets, liabilities, capital and liquidity measures, capital allocation plans, accruals for claims in litigation and for other claims agai ...

Earnings Overview - Earnings season is gaining momentum with major companies like Tesla, Netflix, General Motors, and Ford reporting results this week [1][3] - As of October 17, 12% of S&P 500 companies have reported, with analysts expecting an 8.5% increase in earnings per share for Q3, marking the ninth consecutive quarter of positive growth but a slowdown from 12% in Q2 [1][2] Company-Specific Highlights - **Netflix**: Stock fell after missing earnings estimates, with operating profit impacted [8] - **Intuitive Surgical**: Beat earnings estimates with strong demand for surgical robots, resulting in a 15% stock increase [9] - **Texas Instruments**: Stock dropped 7% due to a weaker-than-expected Q4 outlook, projecting sales of $4.22 billion to $4.58 billion, below analyst estimates [10][11] - **Capital One**: Reported a 23% increase in net revenue to $15.4 billion, exceeding expectations, with earnings per share at $4.83 [13][14] - **Philip Morris**: Stock fell 8% after reporting a 3.2% decline in cigarette shipments, although smokeless product sales increased by 16.6% [15][16][17] - **3M**: Stock rose less than 1% after raising its annual earnings outlook, reporting Q3 sales of $6.3 billion, slightly above estimates [18][19] - **Halliburton**: Revenue increased despite falling oil prices, with adjusted earnings of $0.58 per share beating estimates [20][21] - **GE Aerospace**: Stock rose over 2.5% after reporting a 26% revenue increase to $11.3 billion and raising full-year guidance [23][24] - **Northrop Grumman**: Raised its 2025 profit forecast due to increased demand from geopolitical conflicts [28] - **Elevance**: Stock rose 6% after beating quarterly profit estimates [29] Market Trends - Bank of America noted that 76% of S&P 500 companies reporting so far have exceeded earnings expectations, higher than the average of 68% [36][37] - The upcoming week will see a significant number of companies reporting, with 44% of S&P 500 companies expected to release earnings [38]

Capital One's integration of Discover, which it acquired in May, is going well, Chief Executive Richard Fairbank said. ...

Capital One Financial Corp. (NYSE:COF) released its third-quarter earnings report after Tuesday's closing bell. Here's a look at the key figures from the quarter. COF stock is moving. See the real-time price action here.The Details: Capital One reported quarterly earnings of $5.95 per share, which beat the analyst estimate of $4.37 by 36%.Quarterly revenue came in at $15.35 billion, which beat the Street estimate of $15.07 billion and was up from revenue of $10.01 billion from the same period last year.Read ...

[Capital One Financial Corporation Consolidated Results](index=2&type=section&id=Capital%20One%20Financial%20Corporation%20Consolidated%20Results) Overview of Capital One's consolidated financial performance, including income statement, balance sheet, and key metrics across various periods [Financial Summary—Consolidated](index=2&type=section&id=Table%201%3A%20Financial%20Summary%E2%80%94Consolidated) Presents Capital One's consolidated income statement and balance sheet data, highlighting key financial metrics for recent quarters and year-to-date periods Q3 2025 vs. Q3 2024 Income Statement Highlights | Metric | Q3 2025 (Millions USD) | Q3 2024 (Millions USD) | YoY Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :------------- | | Net interest income | $12,404 | $8,076 | 54% | | Non-interest income | $2,955 | $1,938 | 52% | | Total net revenue | $15,359 | $10,014 | 53% | | Provision for credit losses | $2,714 | $2,482 | 9% | | Total non-interest expense | $8,263 | $5,314 | 55% | | Net income (loss) | $3,192 | $1,777 | 80% | | Diluted EPS | $4.83 | $4.41 | 10% | Q3 2025 vs. Q3 2024 Balance Sheet Highlights (Period-End) | Metric | Q3 2025 (Millions USD) | Q3 2024 (Millions USD) | YoY Change (%) | | :------------------------ | :--------------------- | :--------------------- | :------------- | | Loans held for investment | $443,159 | $320,243 | 38% | | Total assets | $661,877 | $486,433 | 36% | | Total deposits | $468,785 | $353,631 | 33% | | Common equity | $108,406 | $58,080 | 87% | Nine Months Ended Sep 30, 2025 vs. 2024 Income Statement Highlights | Metric | 9M 2025 (Millions USD) | 9M 2024 (Millions USD) | YoY Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :------------- | | Net interest income | $30,412 | $23,110 | 32% | | Total net revenue | $37,851 | $28,922 | 31% | | Provision for credit losses | $16,513 | $9,074 | 82% | | Net income (loss) | $319 | $3,654 | (91)% | | Diluted EPS | $0.23 | $8.92 | (97)% | [Selected Metrics—Consolidated](index=4&type=section&id=Table%202%3A%20Selected%20Metrics%E2%80%94Consolidated) Details Capital One's consolidated performance, credit quality, and capital metrics, including growth, margins, returns, and regulatory ratios Q3 2025 vs. Q3 2024 Performance Metrics | Metric | Q3 2025 | Q3 2024 | Change (bps/%) | | :-------------------------------- | :------ | :------ | :------------- | | Net interest income growth (YoY) | 24% | 7% | 17% pts | | Total net revenue growth (YoY) | 23% | 2% | 21% pts | | Net interest margin | 8.36% | 7.11% | 125 bps | | Return on average assets | 1.94% | 1.48% | 46 bps | | Return on average common equity | 11.50% | 11.99% | (49) bps | | Efficiency ratio | 53.80% | 53.07% | 73 bps | | Employees (period-end, thousands) | 77.0 | 52.5 | 47% | Q3 2025 vs. Q3 2024 Credit Quality Metrics | Metric | Q3 2025 | Q3 2024 | Change (bps/%) | | :-------------------------- | :------ | :------ | :------------- | | Allowance for credit losses | $23,103M | $16,534M | 40% | | Allowance coverage ratio | 5.21% | 5.16% | 5 bps | | Net charge-off rate | 3.16% | 3.27% | (11) bps | | 30+ day delinquency rate | 3.50% | 3.89% | (39) bps | Q3 2025 vs. Q3 2024 Capital Ratios | Metric | Q3 2025 | Q3 2024 | Change (bps) | | :-------------------- | :------ | :------ | :----------- | | Common equity Tier 1 | 14.4% | 13.6% | 80 bps | | Tier 1 capital | 15.5% | 14.9% | 60 bps | | Total capital | 17.4% | 16.6% | 80 bps | | Tangible common equity | 10.8% | 9.1% | 170 bps | [Consolidated Statements of Income](index=5&type=section&id=Table%203%3A%20Consolidated%20Statements%20of%20Income) Provides detailed consolidated income statement data, breaking down interest income, interest expense, non-interest income, and non-interest expense components Q3 2025 vs. Q3 2024 Interest Income & Expense (Millions USD) | Metric | Q3 2025 | Q3 2024 | YoY Change (%) | | :-------------------------- | :------ | :------ | :------------- | | Total interest income | $16,763 | $11,860 | 41% | | Total interest expense | $4,359 | $3,784 | 15% | | Net interest income | $12,404 | $8,076 | 54% | Q3 2025 vs. Q3 2024 Non-Interest Income (Millions USD) | Metric | Q3 2025 | Q3 2024 | YoY Change (%) | | :---------------------------------- | :------ | :------ | :------------- | | Discount and interchange fees, net | $1,812 | $1,228 | 48% | | Service charges and other customer-related fees | $849 | $501 | 69% | | Total non-interest income | $2,955 | $1,938 | 52% | Q3 2025 vs. Q3 2024 Non-Interest Expense (Millions USD) | Metric | Q3 2025 | Q3 2024 | YoY Change (%) | | :-------------------------- | :------ | :------ | :------------- | | Salaries and associate benefits | $3,496 | $2,391 | 46% | | Marketing | $1,403 | $1,113 | 26% | | Amortization of intangibles | $514 | $20 | 90% | | Total non-interest expense | $8,263 | $5,314 | 55% | [Consolidated Balance Sheets](index=7&type=section&id=Table%204%3A%20Consolidated%20Balance%20Sheets) Presents the consolidated balance sheet, detailing assets, liabilities, and stockholders' equity components for Capital One Q3 2025 vs. Q3 2024 Asset Highlights (Millions USD) | Asset Category | Q3 2025 | Q3 2024 | YoY Change (%) | | :---------------------------------- | :------ | :------ | :------------- | | Total cash and cash equivalents | $55,279 | $49,298 | 12% | | Securities available for sale | $89,733 | $83,500 | 7% | | Total loans held for investment | $443,159 | $320,243 | 38% | | Allowance for credit losses | $(23,103) | $(16,534) | 40% | | Goodwill | $28,863 | $15,083 | 91% | | Other intangible assets | $17,042 | $253 | ** | | Total assets | $661,877 | $486,433 | 36% | Q3 2025 vs. Q3 2024 Liability & Equity Highlights (Millions USD) | Category | Q3 2025 | Q3 2024 | YoY Change (%) | | :-------------------------- | :------ | :------ | :------------- | | Total deposits | $468,785 | $353,631 | 33% | | Securitized debt obligations | $13,642 | $15,881 | (14)% | | Total other debt | $37,840 | $33,455 | 13% | | Total liabilities | $548,064 | $423,508 | 29% | | Total stockholders' equity | $113,813 | $62,925 | 81% | [Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)](index=9&type=section&id=Table%205%3A%20Notes%20to%20Financial%20Summary%2C%20Selected%20Metrics%20and%20Consolidated%20Financial%20Statements%20(Tables%201%E2%80%944)) Provides explanatory notes and definitions for consolidated financial summaries, selected metrics, and statements, including non-GAAP measures and Discover acquisition impacts - Total net revenue was reduced by **$869 million** in Q3 2025 for credit card finance charges and fees charged off as uncollectible, an increase from **$624 million** in Q3 2024[12](index=12&type=chunk) - The Financial Supplement includes non-GAAP measures, believed useful for assessing performance and capital adequacy, but not a substitute for GAAP results[2](index=2&type=chunk) - The Discover acquisition completed on **May 18, 2025**, with reported results from that date to **September 30, 2025**[2](index=2&type=chunk) - Charge-offs exclude **$19.4 billion** of Discover loans acquired in Q2 2025 that were fully charged-off, with expected recoveries of **$3.3 billion** included as an allowance for credit losses benefit[12](index=12&type=chunk) [Average Balances, Net Interest Income and Net Interest Margin](index=10&type=section&id=Table%206%3A%20Average%20Balances%2C%20Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Details average balances for interest-earning assets and liabilities, corresponding income/expense, yields/rates, and calculates net interest income and margin Q3 2025 vs. Q3 2024 Average Balances & Yields | Metric | Q3 2025 | Q3 2024 | Change (bps/%) | | :-------------------------------- | :------ | :------ | :------------- | | Average interest-earning assets | $593,247M | $454,484M | 30.5% | | Average loans, including held for sale | $440,374M | $318,715M | 38.2% | | Yield on loans | 13.83% | 13.24% | 59 bps | | Average interest-bearing deposits | $439,527M | $324,509M | 35.4% | | Rate on interest-bearing deposits | 3.27% | 3.63% | (36) bps | | Net interest income | $12,404M | $8,076M | 53.6% | | Net interest margin | 8.36% | 7.11% | 125 bps | Nine Months Ended Sep 30, 2025 vs. 2024 Average Balances & Yields | Metric | 9M 2025 | 9M 2024 | Change (bps/%) | | :-------------------------------- | :------ | :------ | :------------- | | Average interest-earning assets | $527,461M | $451,078M | 16.9% | | Yield on total interest-earning assets | 10.62% | 10.14% | 48 bps | | Rate on total interest-bearing liabilities | 3.53% | 4.01% | (48) bps | | Net interest margin | 7.69% | 6.83% | 86 bps | [Loan Information and Performance Statistics](index=11&type=section&id=Table%207%3A%20Loan%20Information%20and%20Performance%20Statistics) Provides detailed loan information and performance statistics by segment, including period-end loans, charge-off rates, delinquency rates, and nonperforming loan rates Q3 2025 vs. Q3 2024 Period-End Loans Held for Investment (Millions USD) | Loan Category | Q3 2025 | Q3 2024 | YoY Change (%) | | :-------------------------------- | :------ | :------ | :------------- | | Total credit card | $271,037 | $156,651 | 73% | | Total consumer banking | $83,230 | $76,758 | 8% | | Total commercial banking | $88,892 | $86,834 | 2% | | Total loans held for investment | $443,159 | $320,243 | 38% | Q3 2025 vs. Q3 2024 Net Charge-Off Rates | Loan Category | Q3 2025 | Q3 2024 | Change (bps) | | :-------------------------- | :------ | :------ | :----------- | | Total credit card | 4.61% | 5.60% | (99) bps | | Total consumer banking | 1.58% | 2.11% | (53) bps | | Total commercial banking | 0.21% | 0.22% | (1) bps | | Total net charge-offs | 3.16% | 3.27% | (11) bps | Q3 2025 vs. Q3 2024 Nonperforming Loan Rates | Loan Category | Q3 2025 | Q3 2024 | Change (bps) | | :-------------------------- | :------ | :------ | :----------- | | Total credit card | 0.01% | 0.01% | 0 bps | | Total consumer banking | 0.73% | 0.93% | (20) bps | | Total commercial banking | 1.39% | 1.55% | (16) bps | | Total nonperforming loans | 0.42% | 0.65% | (23) bps | [Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity](index=14&type=section&id=Table%208%3A%20Allowance%20for%20Credit%20Losses%20and%20Reserve%20for%20Unfunded%20Lending%20Commitments%20Activity) Details activity in the allowance for credit losses and reserve for unfunded lending commitments by segment, including balances, charge-offs, and provisions Allowance for Credit Losses Activity (Q3 2025, Millions USD) | Category | Balance as of Jun 30, 2025 | Net Charge-offs | Provision for Credit Losses | Balance as of Sep 30, 2025 | | :-------------------------- | :------------------------- | :-------------- | :-------------------------- | :------------------------- | | Total Credit Card | $20,474 | $(3,101) | $2,364 | $19,727 | | Total Consumer Banking | $1,864 | $(326) | $340 | $1,878 | | Commercial Banking | $1,535 | $(46) | $9 | $1,498 | | Total | $23,873 | $(3,473) | $2,713 | $23,103 | Allowance for Credit Losses Activity (Nine Months Ended Sep 30, 2025, Millions USD) | Category | Balance as of Dec 31, 2024 | Net Charge-offs | Initial Allowance for PCD Loans | Benefit from Expected Recoveries | Provision for Credit Losses | Balance as of Sep 30, 2025 | | :-------------------------- | :------------------------- | :-------------- | :------------------------------ | :------------------------------- | :-------------------------- | :------------------------- | | Total Credit Card | $12,974 | $(8,228) | $2,870 | $(3,305) | $15,388 | $19,727 | | Total Consumer Banking | $1,884 | $(899) | — | — | $893 | $1,878 | | Commercial Banking | $1,400 | $(142) | — | — | $240 | $1,498 | | Total | $16,258 | $(9,269) | $2,870 | $(3,305) | $16,521 | $23,103 | - The initial allowance for credit losses for non-purchased credit deteriorated ("non-PCD") loans acquired in the Discover Acquisition was **$8.8 billion** in Q2 2025[28](index=28&type=chunk) [Business Segment Results](index=15&type=section&id=Business%20Segment%20Results) Presents Capital One's financial performance broken down by its Credit Card, Consumer Banking, Commercial Banking, and Other business segments [Financial Summary—Business Segment Results](index=15&type=section&id=Table%209%3A%20Financial%20Summary%E2%80%94Business%20Segment%20Results) Provides a financial summary by business segment, including Credit Card, Consumer Banking, Commercial Banking, and Other, detailing income statement components Q3 2025 Segment Performance (Millions USD) | Metric | Credit Card | Consumer Banking | Commercial Banking | Other | Total | | :-------------------------------- | :---------- | :--------------- | :----------------- | :---- | :---- | | Net interest income | $9,396 | $2,357 | $586 | $65 | $12,404 | | Non-interest income | $2,211 | $475 | $318 | $(49) | $2,955 | | Total net revenue | $11,607 | $2,832 | $904 | $16 | $15,359 | | Provision for credit losses | $2,364 | $340 | $9 | $1 | $2,714 | | Non-interest expense | $5,409 | $1,941 | $520 | $393 | $8,263 | | Income (loss) from continuing operations, net of tax | $2,920 | $420 | $286 | $(433) | $3,193 | Nine Months Ended Sep 30, 2025 Segment Performance (Millions USD) | Metric | Credit Card | Consumer Banking | Commercial Banking | Other | Total | | :-------------------------------- | :---------- | :--------------- | :----------------- | :---- | :---- | | Total net revenue | $27,867 | $7,514 | $2,725 | $(255) | $37,851 | | Provision for credit losses | $15,388 | $893 | $232 | $0 | $16,513 | | Income (loss) from continuing operations, net of tax | $(778) | $1,056 | $761 | $(705) | $334 | [Financial & Statistical Summary—Credit Card Business](index=16&type=section&id=Table%2010%3A%20Financial%20%26%20Statistical%20Summary%E2%80%94Credit%20Card%20Business) Details the Credit Card business segment's financial and statistical summary, including earnings, performance metrics, and FICO scores Q3 2025 vs. Q3 2024 Credit Card Earnings (Millions USD) | Metric | Q3 2025 | Q3 2024 | YoY Change (%) | | :-------------------------- | :------ | :------ | :------------- | | Net interest income | $9,396 | $5,743 | 64% | | Non-interest income | $2,211 | $1,509 | 47% | | Total net revenue | $11,607 | $7,252 | 60% | | Provision for credit losses | $2,364 | $2,084 | 13% | | Non-interest expense | $5,409 | $3,367 | 61% | | Income (loss) from continuing operations, net of tax | $2,920 | $1,374 | 113% | Q3 2025 vs. Q3 2024 Credit Card Performance Metrics | Metric | Q3 2025 | Q3 2024 | Change (bps/%) | | :-------------------------------- | :------ | :------ | :------------- | | Period-end loans held for investment | $271,037M | $156,651M | 73% | | Average yield on loans outstanding | 17.99% | 19.66% | (167) bps | | Net charge-off rate | 4.61% | 5.60% | (99) bps | | 30+ day performing delinquency rate | 3.84% | 4.53% | (69) bps | | Purchase volume | $230,379M | $166,203M | 39% | Domestic Card Refreshed FICO Scores (Q3 2025 vs. Q3 2024) | FICO Score | Q3 2025 | Q3 2024 | Change (% pts) | | :--------- | :------ | :------ | :------------- | | > 660 | 73% | 69% | 4% pts | | <= 660 | 27% | 31% | (4)% pts | [Financial & Statistical Summary—Consumer Banking Business](index=18&type=section&id=Table%2011%3A%20Financial%20%26%20Statistical%20Summary%E2%80%94Consumer%20Banking%20Business) Presents the Consumer Banking segment's financial and statistical summary, including earnings, performance metrics, Global Payment Network volume, and auto loan FICO scores Q3 2025 vs. Q3 2024 Consumer Banking Earnings (Millions USD) | Metric | Q3 2025 | Q3 2024 | YoY Change (%) | | :-------------------------------- | :------ | :------ | :------------- | | Net interest income | $2,357 | $2,028 | 16% | | Total net revenue | $2,832 | $2,210 | 28% | | Provision for credit losses | $340 | $351 | (3)% | | Income from continuing operations, net of tax | $420 | $403 | 4% | Q3 2025 vs. Q3 2024 Consumer Banking Performance Metrics | Metric | Q3 2025 | Q3 2024 | Change (bps/%) | | :-------------------------------- | :------ | :------ | :------------- | | Period-end loans held for investment | $83,230M | $76,758M | 8% | | Average yield on loans held for investment | 9.52% | 8.88% | 64 bps | | Auto loan originations | $10,731M | $9,158M | 17% | | Period-end deposits | $416,765M | $309,569M | 35% | | Net charge-off rate | 1.58% | 2.11% | (53) bps | | 30+ day performing delinquency rate | 4.93% | 5.53% | (60) bps | | Global Payment Network volume | $153,117M | — | ** | Auto—At origination FICO scores (Q3 2025 vs. Q3 2024) | FICO Score | Q3 2025 | Q3 2024 | Change (% pts) | | :--------- | :------ | :------ | :------------- | | > 660 | 51% | 53% | (2)% pts | | <= 620 | 30% | 27% | 3% pts | [Financial & Statistical Summary—Commercial Banking Business](index=19&type=section&id=Table%2012%3A%20Financial%20%26%20Statistical%20Summary%E2%80%94Commercial%20Banking%20Business) Provides the Commercial Banking segment's financial and statistical summary, including earnings, performance metrics, and a risk category breakdown of loans Q3 2025 vs. Q3 2024 Commercial Banking Earnings (Millions USD) | Metric | Q3 2025 | Q3 2024 | YoY Change (%) | | :-------------------------------- | :------ | :------ | :------------- | | Net interest income | $586 | $596 | (2)% | | Total net revenue | $904 | $888 | 2% | | Provision for credit losses | $9 | $48 | (81)% | | Income from continuing operations, net of tax | $286 | $263 | 9% | Q3 2025 vs. Q3 2024 Commercial Banking Performance Metrics | Metric | Q3 2025 | Q3 2024 | Change (bps/%) | | :-------------------------------- | :------ | :------ | :------------- | | Period-end loans held for investment | $88,892M | $86,834M | 2% | | Average yield on loans held for investment | 6.42% | 7.25% | (83) bps | | Period-end deposits | $29,920M | $30,598M | (2)% | | Average deposits interest rate | 2.13% | 2.55% | (42) bps | | Net charge-off rate | 0.21% | 0.22% | (1) bps | | Nonperforming loan rate | 1.39% | 1.55% | (16) bps | Commercial Banking Risk Category as a Percentage of Period-End Loans (Q3 2025 vs. Q3 2024) | Risk Category | Q3 2025 | Q3 2024 | Change (% pts) | | :-------------------------- | :------ | :------ | :------------- | | Noncriticized | 93.48% | 90.79% | 2.69% pts | | Criticized performing | 5.13% | 7.66% | (2.53)% pts | | Criticized nonperforming | 1.39% | 1.55% | (0.16)% pts | [Financial & Statistical Summary—Other and Total](index=20&type=section&id=Table%2013%3A%20Financial%20%26%20Statistical%20Summary%E2%80%94Other%20and%20Total) Presents a financial and statistical summary for the 'Other' segment and consolidated 'Total' for Capital One, including earnings and performance metrics Q3 2025 vs. Q3 2024 "Other" Segment Performance (Millions USD) | Metric | Q3 2025 | Q3 2024 | YoY Change (%) | | :-------------------------------- | :------ | :------ | :------------- | | Net interest income (loss) | $65 | $(291) | ** | | Total net revenue (loss) | $16 | $(336) | ** | | Non-interest expense | $393 | $121 | 15% | | Loss from continuing operations, net of tax | $(433) | $(263) | 65% | Q3 2025 vs. Q3 2024 Total Consolidated Performance (Millions USD) | Metric | Q3 2025 | Q3 2024 | YoY Change (%) | | :-------------------------- | :------ | :------ | :------------- | | Net interest income | $12,404 | $8,076 | 54% | | Total net revenue | $15,359 | $10,014 | 53% | | Provision for credit losses | $2,714 | $2,482 | 9% | | Non-interest expense | $8,263 | $5,314 | 55% | | Income (loss) from continuing operations, net of tax | $3,193 | $1,777 | 80% | [Other Disclosures and Non-GAAP Reconciliations](index=21&type=section&id=Other%20Disclosures%20and%20Non-GAAP%20Reconciliations) Provides additional disclosures and reconciliations of non-GAAP financial measures to their GAAP equivalents for comprehensive financial analysis [Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)](index=21&type=section&id=Table%2014%3A%20Notes%20to%20Net%20Interest%20Margin%2C%20Loan%2C%20Allowance%20and%20Business%20Segment%20Disclosures%20(Tables%206%E2%80%9413)) Provides detailed notes and definitions for net interest margin, loan performance, allowance for credit losses, and business segment results, including Discover acquisition impacts - Average yield is calculated based on annualized interest income for the period divided by average loans during the period[28](index=28&type=chunk) - Charge-offs for Credit Card business exclude **$18.0 billion** of Discover Domestic credit card loans acquired in Q2 2025 that were fully charged-off, with expected recoveries of **$3.1 billion** included as an allowance for credit losses benefit[28](index=28&type=chunk) - Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category; Commercial Banking nonperforming loans are criticized nonperforming[28](index=28&type=chunk) - Global Payment Network volume includes Discover Network, PULSE Network, Diners Club International, and Network Partners transactions[28](index=28&type=chunk) - Criticized exposures correspond to "Special Mention," "Substandard," and "Doubtful" asset categories as defined by bank regulatory authorities[28](index=28&type=chunk) - The "Other" segment includes Discover integration expenses of **$348 million** in Q3 2025, **$299 million** in Q2 2025, and **$110 million** in Q1 2025[28](index=28&type=chunk) [Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures](index=22&type=section&id=Table%2015%3A%20Calculation%20of%20Regulatory%20Capital%20Measures%20and%20Reconciliation%20of%20Non-GAAP%20Measures) Provides calculations for regulatory capital measures under Basel III and reconciliations of non-GAAP financial measures to GAAP equivalents, including adjusted EPS and efficiency ratios Q3 2025 Regulatory Capital Ratios (Preliminary) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------- | :------ | :------ | :------ | | Common equity Tier 1 capital | 14.4% | 14.0% | 13.6% | | Tier 1 capital | 15.5% | 15.1% | 14.9% | | Total capital | 17.4% | 17.1% | 16.6% | | Tier 1 leverage | 12.6% | 14.2% | 11.6% | | TCE | 10.8% | 10.3% | 9.1% | Adjusted Diluted EPS Reconciliation (Q3 2025, Millions USD except EPS) | Item | Q3 2025 | | :------------------------------------------------ | :------ | | Net income (loss) available to common stockholders (GAAP) | $3,086 | | Discover integration expenses | $348 | | Discover intangible amortization expense | $498 | | Discover loan and deposit fair value mark amortization | $105 | | Adjusted net income available to common stockholders (non-GAAP) | $3,801 | | Diluted EPS (GAAP) | $4.83 | | Adjusted diluted EPS (non-GAAP) | $5.95 | Adjusted Efficiency Ratio Reconciliation (Q3 2025) | Item | Q3 2025 | | :------------------------------------------------ | :------ | | Efficiency ratio (GAAP) | 53.80% | | Impact of adjustments (Discover integration, intangible amortization, etc.) | (584)bps | | Adjusted efficiency ratio (non-GAAP) | 47.96% | Tangible Common Equity (Period-End, Millions USD) | Item | Q3 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | | Stockholders' equity | $113,813 | $62,925 | | Goodwill and other intangible assets | $(41,537) | $(15,214) | | Noncumulative perpetual preferred stock | $(5,407) | $(4,845) | | Tangible common equity | $66,869 | $42,866 | - Non-GAAP measures are used by investors, analysts, and regulators to assess operating performance and capital position, but may not be comparable to other companies' similarly-titled measures[34](index=34&type=chunk)

Core Insights - SoFi has experienced significant growth, with shares increasing by 82% over the past year, indicating strong market performance and potential for future growth [1] - The company currently has a market capitalization of approximately $33 billion, while Capital One's market cap stands at $138 billion, suggesting a substantial gap that SoFi aims to close by the end of the decade [2] - SoFi's member base has more than tripled since 2021, with a record addition of 846,000 members in Q2 2025 and a 44% year-over-year growth in adjusted net revenue, showcasing impressive growth and profitability [3] - Despite its growth, SoFi has not yet fully realized its potential, with opportunities to expand its product offerings and deepen customer relationships [4] Growth Opportunities - SoFi currently lacks several banking products, such as certificates of deposit and auto loans, and has significant potential to develop its credit card business [5] - The company plans to reintroduce cryptocurrency trading by the end of the year, which could enhance its investment platform and attract more users [6] - SoFi's brand awareness remains low, with many Americans unfamiliar with its services, indicating a need for improved marketing and customer engagement strategies [6] Market Positioning - To surpass Capital One's market cap, SoFi would need to quadruple its current valuation, which presents both a challenge and an opportunity given its growth momentum [7] - The company continues to innovate and add unique products to its ecosystem, positioning itself as a competitive player in the financial services industry [7] - While the target of quadrupling its stock price by 2030 is ambitious, SoFi has already seen significant stock price increases since mid-2024, reflecting its growth trajectory [8]

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