Capital One(US:COF)2025-11-03 22:20Financial Performance - Total net revenue for Q3 2025 was $15.359 billion, a 53% increase from $10.014 billion in Q3 2024[28] - Net income for Q3 2025 was $3.2 billion ($4.83 per diluted common share), compared to $1.8 billion ($4.41 per diluted common share) in Q3 2024, representing a 78% increase[32] - Total net revenue for the first nine months of 2025 was $37.9 billion, up from $28.9 billion in the same period of 2024, marking a 31% increase[32] - Basic earnings per common share for Q3 2025 was $4.83, a 9% increase from $4.42 in Q3 2024[28] - Total net revenue for the third quarter of 2025 was $15.4 billion, with net income of $3.2 billion, compared to total net revenue of $10.0 billion and net income of $1.8 billion in the same period of 2024[85] Revenue Breakdown - Net interest income rose to $12.404 billion in Q3 2025, up 54% from $8.076 billion in Q3 2024[28] - Non-interest income increased by 52% to $2.955 billion in Q3 2025, compared to $1.938 billion in Q3 2024[28] - The Credit Card business generated income from continuing operations of $2.9 billion in the third quarter of 2025, compared to $1.4 billion in the same period of 2024[88] - The Credit Card segment accounted for 76% of total net revenue in the third quarter of 2025, while Consumer Banking and Commercial Banking accounted for 18% and 6%, respectively[85] Expenses and Losses - Total non-interest expense for Q3 2025 was $8.263 billion, a 55% increase from $5.314 billion in Q3 2024[28] - Provision for credit losses was $2.714 billion in Q3 2025, a 9% increase from $2.482 billion in Q3 2024[28] - Total non-interest expense increased by $2.9 billion to $8.3 billion in Q3 2025 and by $5.8 billion to $21.2 billion in the first nine months, primarily due to impacts from the Transaction and continued investments in technology[8] - Net charge-offs for the third quarter of 2025 were $3,473 million, representing a rate of 3.16%, an increase from $2,604 million and 3.27% in the same period of 2024[196] Asset and Loan Growth - Total assets increased by 37% to $657.9 billion in Q3 2025 from $481.2 billion in Q3 2024[29] - Loans held for investment increased by 38% to $439.9 billion in Q3 2025 from $318.3 billion in Q3 2024[29] - Average loans held for investment surged by 75% to $269.2 billion in Q3 2025, compared to $153.9 billion in Q3 2024[90] - Total loans, including loans held for sale, increased to $440.374 billion in Q3 2025 from $318.715 billion in Q3 2024[41] Capital and Liquidity - Common equity Tier 1 (CET1) capital ratio improved to 14.4% as of September 30, 2025, up from 13.5% at the end of 2024[33] - The Company's total capital as of September 30, 2025, was $87.853 billion, up from $61.805 billion as of December 31, 2024[149] - Liquidity reserves as of September 30, 2025, were $143.1 billion, an increase from $123.8 billion as of December 31, 2024[209] - The company maintained access to contingent liquidity sources totaling $100.6 billion as of September 30, 2025, enhancing its liquidity position[211] Risk Management - The Company is integrating Discover into its existing risk management practices, enhancing its risk management framework[162] - The Company has seven major categories of risk, including credit risk, liquidity risk, and operational risk, which are managed under its risk management framework[167] - The provision for credit losses includes expected losses related to unfunded lending commitments, which are reflected in the consolidated statements of income[203] Shareholder Returns - The company declared and paid common stock dividends of $387 million in Q3 2025 and $1.0 billion in the first nine months of 2025[34] - The Board of Directors authorized a new share repurchase program of up to $16 billion, with repurchases beginning on October 21, 2025[158][160] - The Company repurchased $1.0 billion of common stock in Q3 2025 and $1.3 billion in the first nine months of 2025[160] Delinquency and Nonperforming Loans - The total amount of 30+ day delinquent loans held for investment is $15,523 million as of September 30, 2025, compared to $13,040 million as of December 31, 2024, reflecting an increase of 19%[188] - Nonperforming loans held for investment totaled $1,865 million with a rate of 0.42% as of September 30, 2025, down from $1,995 million and 0.61% on December 31, 2024[192] - The net charge-off rate decreased by 99 basis points to 4.61% in Q3 2025 from 5.60% in Q3 2024[90]