Capital One(US:COF)2026-01-22 21:14Financial Performance - Net interest income for Q4 2025 was $12,466 million, a 54% increase compared to Q4 2024's $8,098 million[5] - Total net revenue reached $15,583 million in Q4 2025, up 37% from $10,190 million in Q4 2024[5] - Net income for Q4 2025 was $2,134 million, down 33% from $4,750 million in Q4 2024[5] - Non-interest income for Q4 2025 was $3,117 million, reflecting a 49% increase from Q4 2024, driven by higher discount and interchange fees[8] - Total net revenue for the year ended December 31, 2025, reached $53,434 million, compared to $39,112 million for the previous year, representing a year-over-year growth of approximately 36.7%[19] - Total net revenue for Q4 2025 was $11,693 million, reflecting a 1% increase from Q3 2025 and a 59% increase compared to Q4 2024[20] Credit Losses and Provisions - Provision for credit losses increased to $4,142 million in Q4 2025, a 53% rise from $2,642 million in Q4 2024[5] - The provision for credit losses in Q4 2025 was $4,142 million, a 57% increase compared to Q4 2024, indicating a significant rise in expected credit losses[8] - The allowance for credit losses increased to $23,409 million in Q4 2025, a 44% increase from Q4 2024, highlighting a cautious approach to credit risk management[7] - The net charge-off rate for Q4 2025 was 3.45%, up 29 basis points from Q3 2025, indicating a rise in loan defaults[7] - The net charge-offs for the year ended December 31, 2025, totaled $13,102 million, compared to $3,833 million for the three months ended December 31, 2025, indicating a significant increase in charge-offs[18] Expenses and Efficiency - Non-interest expense totaled $9,342 million in Q4 2025, reflecting a 13% increase from $6,089 million in Q4 2024[5] - Total non-interest expense for 2025 was $30,498 million, a 42% increase compared to 2024, driven by higher salaries and marketing costs[8] - The efficiency ratio for Q4 2025 was 59.95%, an increase of 615 basis points from Q4 2024, suggesting a decline in operational efficiency[7] - Adjusted operating expense (non-GAAP) for Q4 2025 was $6,459 million, an increase from $4,499 million in Q4 2024, reflecting a year-over-year growth of 43.6%[29] Assets and Capital - Total assets as of Q4 2025 were $669,009 million, a 36% increase from $490,144 million in Q4 2024[6] - Common equity at the end of Q4 2025 was $108,209 million, a 93% increase from $55,938 million in Q4 2024[6] - Capital ratios showed a common equity Tier 1 capital of 14.3% in Q4 2025, an increase of 80 basis points from Q4 2024, reflecting improved capital strength[7] - The company reported total capital of $88.001 billion as of December 31, 2025, up from $87.853 billion in September 2025[26] Loans and Deposits - Loans held for investment at the end of Q4 2025 were $453,622 million, a 38% increase from $327,775 million in Q4 2024[6] - Total deposits reached $475,771 million in Q4 2025, up 31% from Q4 2024[10] - Interest-bearing deposits increased by 33% year-over-year, reaching $448,386 million in Q4 2025[10] - Average deposits increased by 33% year-over-year to $418,673 million, with period-end deposits also rising to $423,932 million[22] Shareholder Returns - The company declared a dividend of $0.80 per common share in Q4 2025, a 33% increase from $0.60 in Q4 2024[5] - The adjusted diluted earnings per share (EPS) for Q4 2025 was $3.86, compared to $5.95 in Q3 2025 and $4.06 in Q1 2025[28] Charge-Off Rates and Delinquency - Domestic credit card net charge-off rate decreased to 4.93% in Q4 2025 from 5.25% in Q4 2024, a reduction of 30 basis points[16] - Total credit card net charge-off rate improved to 4.91% in Q4 2025 compared to 6.02% in Q4 2024, reflecting a decrease of 111 basis points[16] - Total consumer banking net charge-off rate was 1.88% in Q4 2025, down from 2.38% in Q4 2024, a decline of 50 basis points[16] - 30+ day performing delinquency rate for domestic credit cards was 3.99% in Q4 2025, up from 3.60% in Q4 2024, an increase of 10 basis points[16] Miscellaneous - The company expects recoveries of $3.3 billion included as a benefit to the allowance for credit losses from Discover loans acquired[13] - Discover integration expenses amounted to $352 million in Q4 2025, with cumulative expenses of $1.109 billion for the year[28]