01—Abstract
Summary
Summary of the 8-K filed July 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Capital One's July 22, 2025 Form 8-K furnishes its monthly charge-off and delinquency metrics for June 2025, filed under Regulation FD (Item 7.01).
The release is informational. It does not report earnings or guidance, and the exhibit is not deemed filed under Section 18 of the Exchange Act. The June figures are the first to include Discover, whose acquisition closed May 18, 2025.
Total domestic card loans held for investment were $252.5 billiona at period end, and the domestic card net charge-off rate was 4.96% for the month, with a 3.60% 30+ day performing delinquency rate. Capital One Domestic's net charge-off rate was 5.29%, and Discover Domestic's was 4.47%. Discover's June rate was flattered by accelerated charge-offs on deceased or bankrupt accounts, which reduced net charge-offs by about $39 million.
Excluding that effect, Discover Domestic's rate would have been 4.94% and total domestic card's 5.15%. Discover's 30+ day delinquency rate was also lowered by 23 basis points from aligning its methodology with Capital One's. Auto loans were $80.0 billionb at period end, with a 1.69% net charge-off rate and a 0.73% nonperforming loan rate, but a 4.84% 30+ day performing delinquency rate.
Investors should read these figures as a single month's data affected by a fresh acquisition and methodology changes, so the June numbers are not a clean run-rate. Trends are best judged over several months as the combined card portfolio seasons.
02—Key points
Key Highlights
- Total domestic card net charge-off rate was 4.96% in June 2025 on $250.1 billion of average loans, with $1.03 billion of net charge-offs for the month.
- Capital One Domestic card net charge-off rate was 5.29%, while Discover Domestic was 4.47%, reported and 4.94% excluding accelerated charge-off effects.
- Discover's June results were reduced by roughly $39 million of accelerated charge-offs on deceased or bankrupt accounts, which lowered the Total Domestic Card net charge-off rate by about 19 basis points.
- Total domestic card 30+ day performing delinquency rate was 3.60% ($9.08 billion), with Capital One Domestic at 3.92% and Discover Domestic at 3.11%.
- Discover's delinquency rate was lowered by about 23 basis points (9 basis points for total domestic card) after it aligned its delinquency methodology with Capital One's at the acquisition's Legal Day 1.
- Auto loans had a 1.69% net charge-off rate and a 0.73% nonperforming loan rate, but a 4.84% 30+ day performing delinquency rate on $80.0 billion of period-end loans.
- Charge-off metrics exclude $18.0 billion of acquired Discover loans that were fully charged off, which affects comparability with pre-acquisition reporting.
03—Questions
Frequently Asked Questions
Does this 8-K report Capital One's earnings or financial guidance?
No. The filing furnishes monthly charge-off and delinquency metrics for June 2025 under Regulation FD. It does not include earnings, guidance, or a full financial statement set, and the exhibit is not deemed filed for Section 18 liability purposes.
Why are Discover's June credit metrics not directly comparable to Capital One's?
The Discover acquisition closed May 18, 2025. Before that date, Discover recognized accelerated charge-offs on deceased or bankrupt card accounts, which lowered its June net charge-offs by about $39 million. Discover also aligned its 30+ day delinquency calculation with Capital One's, which reduced its reported delinquency rate. The company gives adjusted figures so investors can see the effect of both changes.
How did the domestic card net charge-off rate change once the accelerated charge-off effect is excluded?
Discover Domestic's net charge-off rate would have been 4.94% instead of 4.47%, and total domestic card's rate would have been 5.15% instead of 4.96%. The accelerated charge-offs therefore flattered the reported June figures.
What do the $18.0 billion of fully charged-off acquired Discover loans mean for these metrics?
Those loans are excluded from charge-offs in this release. Because they are acquired loans that were already fully charged off, including them would change the reported charge-off amounts and rates. Investors comparing future periods should check whether this exclusion continues.
What do the auto loan metrics suggest about credit quality in that segment?
Auto had a relatively low net charge-off rate of 1.69% and a nonperforming loan rate of 0.73%. Its 30+ day performing delinquency rate of 4.84% was higher than its charge-off and nonperforming rates, which may point to early-stage delinquencies that could later affect losses. A single month of data is not enough to establish a trend.
04—Continue