CAPITAL ONE FINANCIAL CORP Quarterly Report for Q1 Ended Mar 31, 2025

Summary

Capital One Financial Corporation reported a solid first quarter of 2025, with net income available to common stockholders increasing by 10% to $1.325 billion, or $3.45 per diluted share, compared to $1.200 billion, or $3.13 per diluted share, in the first quarter of 2024. Total net revenue grew 6% to $10.0 billion, primarily driven by an increase in net interest income. Despite a higher net charge-off rate of 3.40%, up from 3.33% year-over-year, the company saw a decrease in its 30+ day delinquency rate to 3.51% as of March 31, 2025. The provision for credit losses decreased by 12%, largely due to an allowance release in the credit card portfolio. The company's capital position remains strong, with a Common Equity Tier 1 (CET1) capital ratio of 13.6% as of March 31, 2025, exceeding regulatory requirements. Capital One also made progress on its strategic acquisition of Discover Financial Services, receiving necessary regulatory approvals and anticipating closing on May 18, 2025. The company returned $236 million to shareholders through dividends and repurchased $150 million of its common stock during the quarter. Overall, the results indicate a stable financial performance with strategic progress on the Discover acquisition.

Key Highlights

• 1Net income available to common stockholders increased 10% year-over-year to $1.325 billion.
• 2Diluted earnings per share rose 10% to $3.45.
• 3Total net revenue grew 6% to $10.0 billion, with net interest income up 7%.
• 4Provision for credit losses decreased 12% due to an allowance release in the credit card portfolio.
• 5Common Equity Tier 1 (CET1) capital ratio stood at a strong 13.6%.
• 6The acquisition of Discover Financial Services received regulatory approvals and is expected to close on May 18, 2025.
• 7Capital One returned $236 million to shareholders via dividends and repurchased $150 million of common stock.

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