Capital One earns $3.5 billion; net charge-offs total $3.1 billion

Capital One Financial (NYSE: COF) said on Tuesday that third-quarter net income rose to $3.5 billion, with credit losses of $3.1 billion and a $225 million release of loan-loss reserves, according to its earnings release.

Earnings

All comparisons below are with the second quarter unless noted. Net income was $3.5 billion, or $5.61 per diluted share, compared with $3.0 billion, or $4.73, in the second quarter and $3.2 billion, or $4.83, in the third quarter of 2025. Excluding adjusting items, which include $483 million of acquisition amortization, $338 million of Discover integration expenses and $47 million of Brex integration expenses, earnings were $6.69 per share. Founder, Chairman and Chief Executive Richard Fairbank said the Discover integration "continues to go well."

Total net revenue rose 3% to $16.3 billion. Non-interest expense fell 2% to $8.9 billion. The net interest margin was 8.41%, up 40 basis points.

Credit

Net charge-offs were $3.1 billion. The provision for credit losses fell by $73 million to $2.9 billion, which included the $225 million reserve release.

Loans and deposits

Period-end loans held for investment rose 1% from the second quarter to $462.5 billion. Credit-card loans rose by $952 million, or less than 1%, to $276.4 billion; domestic card loans rose by $1.2 billion to $260.3 billion. Auto loans rose by $3.6 billion, or 4%, to $92.9 billion. Total deposits fell 1% to $480.7 billion, and the average rate paid on interest-bearing deposits increased 3 basis points to 2.94%. The common equity Tier 1 capital ratio was 13.8%.

The release does not give delinquency or charge-off rates; Capital One's financial supplement, filed as Exhibit 99.2, contains them.