Latest news with #DiscoverFinancial
Yahoo
22-07-2025
- Business
- Yahoo
Capital One reports higher profit as interest income, fees rise
(Reuters) -Capital One Financial reported a rise in second-quarter adjusted profit on Tuesday, as the consumer lender was helped by a boost in interest income on its credit card debt and higher fee income. Shares of the company, which have gained nearly 22% in 2025, rose 2.5% after the bell. Consumer spending displayed underlying resilience in the April to June quarter, as many consumers curtailed discretionary spending amid inflationary pressures fueled by uncertainties over U.S. President Trump's trade policies, while maintaining steady outlays on essential goods and services. However, companies such as Capital One are shielded from economic volatility and ensuing industry weakness because of their credit card business. Interest rates on credit card debt are significantly higher than those on mortgages and other kinds of loans. Capital One became the biggest U.S. credit card issuer by balances after its acquisition of Discover Financial was completed midway through the second quarter, following more than a year of regulatory to-and-fro. The McLean, Virginia-based company's net interest income — the difference between what it makes on loans and pays out on deposits — rose 32.5% to $10 billion in the quarter. Capital One's quarterly non-interest income, which primarily consists of interchange income, net of reward expenses, service charges and other customer-related fees, rose nearly 27% to $2.50 billion. However, as consumers pull back on discretionary spending due to high borrowing costs, companies have resorted to building a bigger buffer to help shield themselves from potential loan defaults. The company's loan loss provisions stood at $11.43 billion in the second quarter, compared to $3.91 billion a year earlier. Net charge-offs, or debts that are unlikely to be recovered, jumped 16% to $3.06 billion in the period, the company said. Capital One's adjusted net income available to common stockholders was $2.77 billion, or $5.48 per share, in the three months ended June 30, from $1.21 billion, or $3.14 per share, a year earlier.
Reuters
22-07-2025
- Business
- Reuters
Capital One reports higher profit as interest income, fees rise
July 22 (Reuters) - Capital One Financial (COF.N), opens new tab reported a rise in second-quarter adjusted profit on Tuesday, as the consumer lender was helped by a boost in interest income on its credit card debt and higher fee income. Shares of the company, which have gained nearly 22% in 2025, rose 2.5% after the bell. Consumer spending displayed underlying resilience in the April to June quarter, as many consumers curtailed discretionary spending amid inflationary pressures fueled by uncertainties over U.S. President Trump's trade policies, while maintaining steady outlays on essential goods and services. However, companies such as Capital One are shielded from economic volatility and ensuing industry weakness because of their credit card business. Interest rates on credit card debt are significantly higher than those on mortgages and other kinds of loans. Capital One became the biggest U.S. credit card issuer by balances after its acquisition of Discover Financial was completed midway through the second quarter, following more than a year of regulatory to-and-fro. The McLean, Virginia-based company's net interest income — the difference between what it makes on loans and pays out on deposits — rose 32.5% to $10 billion in the quarter. Capital One's quarterly non-interest income, which primarily consists of interchange income, net of reward expenses, service charges and other customer-related fees, rose nearly 27% to $2.50 billion. However, as consumers pull back on discretionary spending due to high borrowing costs, companies have resorted to building a bigger buffer to help shield themselves from potential loan defaults. The company's loan loss provisions stood at $11.43 billion in the second quarter, compared to $3.91 billion a year earlier. Net charge-offs, or debts that are unlikely to be recovered, jumped 16% to $3.06 billion in the period, the company said. Capital One's adjusted net income available to common stockholders was $2.77 billion, or $5.48 per share, in the three months ended June 30, from $1.21 billion, or $3.14 per share, a year earlier.
Bloomberg
22-07-2025
- Business
- Bloomberg
Capital One Earnings Top Estimates After Finishing Discover Deal
Capital One Financial Corp. said second-quarter profit beat estimates as the bank completed its long-awaited acquisition of Discover Financial Services. Adjusted net income for the period was $5.48 a share, Capital One said in a statement Tuesday, beating the Wall Street consensus estimate of $3.88. Net interest income, what the bank earns after expenses from interest-bearing assets, jumped by 32% to $10 billion for the three months ended June 30. That topped estimates of $9.6 billion.
Yahoo
17-07-2025
- Business
- Yahoo
Jim Cramer Says Capital One is 'Poised to Have Multiple Years of Outstanding Growth'
Capital One Financial Corporation (NYSE:COF) is one of the stocks in Jim Cramer's spotlight. During the episode, Cramer showed quite a bullish sentiment toward the company stock, as he said: 'Whenever the averages are near their all-time highs, even after today's pullback, all sorts of people come out of the woodwork to claim that great stocks have become overvalued, but sometimes these stocks have a lot more room to run. Take Capital One Financial, the bank with a huge credit card business that we own for the Charitable Trust… Now, since we first bought this one for the trust on March 6, we're already up over 28% but we're sticking with it. Why? Because I think it's got a tremendous growth story. It's not done anywhere near here. The recent run is all about Capital One's acquisition of Discover Financial in an all-stock deal valued at $35.3 billion… A smiling face of a customer as they make a deposit at this company's branch. Capital One (NYSE:COF) provides a range of banking services, including credit cards, loans, deposits, and online banking. The company serves individuals, small businesses, and commercial clients through both digital and physical channels. While we acknowledge the potential of COF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
Capital One Financial (COF)'s Discover Acquisition Might Have Been Challenged By Biden Admin, Says Jim Cramer
We recently published . Capital One Financial Corporation (NYSE:COF) is one of the stocks Jim Cramer recently discussed. Capital One Financial Corporation (NYSE:COF) is a sizable American bank that scored a major win in 2025 after all regulators cleared the firm's acquisition of Discover Financial. Cramer has discussed the deal several times in 2025. In all his discussions, the CNBC host has remained optimistic about the deal and commented that the new entity can very well take on US payment giants Mastercard and Visa. Capital One Financial Corporation (NYSE:COF)'s shares have gained 22% year-to-date on the back of tailwinds generated by the deal. This time, he commented on whether the former Biden administration would have let the deal go through: 'Now um, we have a Cox deal with Charter. I think that the, no I know at the last minute, the Biden administration would have challenged the Discover-Capital One deal because those are two lower-end credit companies getting together. And they would have I think waited right to the end.' A smiling face of a customer as they make a deposit at this company's branch. Cramer also recently discussed Capital One Financial Corporation (NYSE:COF) in the context of other banking giants: 'It also bodes well for the banks, any banks, including Bank of America, Wells Fargo, and my favorite right now is Capital One. Now that Capital One has merged with Discover, its stock has the potential to keep climbing because it's put together a credit card powerhouse. And I know it's up a lot, but it can go higher.' While we acknowledge the potential of COF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
