Capital One Announces $16 Billion Buyback as Profit Soars

Core Insights - Capital One Financial Corp. reported a significant increase in third-quarter profit, with net income rising 80% to $3.19 billion, or $4.83 per share, surpassing Wall Street estimates [1] - The company plans to repurchase up to $16 billion of its stock following its acquisition of Discover Financial Services [1] Financial Performance - Adjusted earnings per share reached $5.95, exceeding the average analyst estimate of $4.39 [1] - Net interest income increased by 54% to $12.4 billion, also surpassing expectations [2] - Provisions for credit losses amounted to $2.71 billion, lower than the anticipated $3.8 billion [3] - The consumer auto loan portfolio, valued at $82 billion, demonstrated resilience with a net charge-off rate of 1.54%, better than the predicted 1.64% [3] Market Reaction - Capital One's shares rose by 3.3% to $224.21, contributing to a 26% increase in stock value this year, outperforming the 15% rise in the KBW Bank Index [2] Strategic Focus - The integration of Discover Financial Services is progressing well, with the company positioned to leverage upcoming opportunities [2] - The bank is closely monitoring the impact of private credit on consumer finance, especially in light of recent market events affecting subprime auto lending [4]