Capital One(COF) - 2025 Q3 - Quarterly Results

Capital One Financial Corporation Consolidated Results Overview of Capital One's consolidated financial performance, including income statement, balance sheet, and key metrics across various periods Financial Summary—Consolidated 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 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 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 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) 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] - The Financial Supplement includes non-GAAP measures, believed useful for assessing performance and capital adequacy, but not a substitute for GAAP results[2] - The Discover acquisition completed on May 18, 2025, with reported results from that date to September 30, 2025[2] - 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] Average Balances, Net Interest Income and Net Interest Margin 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 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 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] Business Segment Results 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 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 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 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 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 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 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) 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] - 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] - 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] - Global Payment Network volume includes Discover Network, PULSE Network, Diners Club International, and Network Partners transactions[28] - Criticized exposures correspond to "Special Mention," "Substandard," and "Doubtful" asset categories as defined by bank regulatory authorities[28] - 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] Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures 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]