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Mar 31, 2025
Capital One Q1 2025 Earnings Report
Capital One reported solid financial performance with increased profitability and steady loan growth.
Key Takeaways
Capital One posted a strong Q1 2025, with $10 billion in revenue and net income of $1.4 billion. The company also reported adjusted EPS of $4.06, driven by solid consumer lending and the anticipated completion of the Discover acquisition.
Net income rose to $1.4 billion, up from $1.1 billion in Q4 2024.
Adjusted EPS reached $4.06, highlighting improved profitability.
Total revenue declined slightly to $10 billion due to lower non-interest income.
Regulatory approval for Discover acquisition received, with deal closing expected May 18.
Revenue by Segment
Forward Guidance
Capital One anticipates a transformative quarter ahead with the integration of Discover, but remains cautious on credit quality and revenue pressure from higher interest rates.
Positive Outlook
- Discover acquisition expected to close May 18, adding scale and capabilities.
- Improved efficiency ratio reflecting cost controls.
- Reserves released for credit losses indicate stabilizing credit environment.
- Continued strength in consumer banking deposits and auto lending.
- Sustained investment in technology and digital infrastructure.
Challenges Ahead
- Slight revenue decline this quarter due to lower non-interest income.
- Provision for credit losses remains elevated at $2.4 billion.
- Credit card charge-off rate increased to 6.14%.
- Net interest margin declined 10 basis points to 6.93%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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