Capital One Financial Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 21 October 2025: press release. The quarter’s numbers.

Key takeaways

Net income rose to $3.2 billion: Net income for the quarter was $3.2 billion, or $4.83 per diluted common share. Adjusted net income was $5.95 per diluted common share. Source
Card average loans up 28 percent: Average Credit Card loans rose $59.5 billion, or 28 percent, to $269.2 billion. Average Domestic Card loans rose $54.3 billion, or 27 percent, to $252.1 billion. Source
Provision fell to $2.7 billion: Provision for credit losses decreased $8.7 billion to $2.7 billion in the quarter. Source
Net interest margin up 74 basis points: Net interest margin was 8.36 percent, up 74 basis points from the second quarter. Adjusted net interest margin was 8.43 percent. Source
Non-interest expense up 18 percent: Total non-interest expense increased 18 percent to $8.3 billion in the quarter. Source
CET1 ratio at 14.4 percent: The common equity Tier 1 ratio under the Basel III Standardized Approach was 14.4 percent at September 30, 2025, up from 14.0 percent at June 30, 2025. Source
Adjusting items were Discover-related: The quarter included adjusting items: Discover integration expenses of $348 million pre-tax, Discover intangible amortization of $498 million, and a $105 million Discover loan and deposit fair value mark amortization. Source

“In the third quarter, our adjusted earnings, top-line growth, credit results, and capital generation continued to be”
Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer

Results and earnings drivers

Net income rose to $3.2 billion: Net income for the quarter was $3.2 billion, or $4.83 per diluted common share. Adjusted net income was $5.95 per diluted common share. Source
Revenue up 23 percent: Total net revenue increased 23 percent to $15.4 billion, compared with $12.5 billion in the second quarter. Source
Pre-provision earnings up 29 percent: Pre-provision earnings, a non-GAAP measure calculated as total net revenue less non-interest expense, increased 29 percent to $7.1 billion. Source

Segments and loan growth

Card average loans up 28 percent: Average Credit Card loans rose $59.5 billion, or 28 percent, to $269.2 billion. Average Domestic Card loans rose $54.3 billion, or 27 percent, to $252.1 billion. Source
Period-end loans rose 1 percent: Period-end loans held for investment rose $3.9 billion, or 1 percent, to $443.2 billion. Credit Card period-end loans rose $1.3 billion to $271.0 billion. Source
Consumer and Auto loans rose: Consumer Banking period-end loans rose $2.0 billion, or 2 percent, to $83.2 billion. Auto period-end loans rose $2.0 billion, or 3 percent, to $82.0 billion. Source
Commercial Banking loans little changed: Commercial Banking average loans increased $20 million, or less than 1 percent, to $88.4 billion. Period-end Commercial Banking loans rose $537 million to $88.9 billion. Source

“The Discover integration continues to go well and we are well positioned to capitalize”
Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer

Credit provision and charge-offs

Provision fell to $2.7 billion: Provision for credit losses decreased $8.7 billion to $2.7 billion in the quarter. Source
Net charge-offs and reserve release: Net charge-offs were $3.5 billion, and the provision included a $760 million loan reserve release. Source
Second-quarter provision included reserve build: The second quarter provision of $11.4 billion included a $7.9 billion loan reserve build, with net charge-offs of $3.1 billion.

Margins and deposit costs

Net interest margin up 74 basis points: Net interest margin was 8.36 percent, up 74 basis points from the second quarter. Adjusted net interest margin was 8.43 percent. Source
Deposit rate paid rose 5 basis points: Interest-bearing deposits rate paid increased 5 basis points to 3.27 percent, after remaining flat at 3.22 percent in the second quarter. Source
Average deposits up 13 percent: Average deposits increased $52.7 billion, or 13 percent, to $467.3 billion. Period-end total deposits were $468.8 billion. Source

Costs and efficiency

Non-interest expense up 18 percent: Total non-interest expense increased 18 percent to $8.3 billion in the quarter. Source
Efficiency ratio at 53.80 percent: The efficiency ratio was 53.80 percent, and the adjusted efficiency ratio was 47.96 percent. The operating efficiency ratio was 44.66 percent, and the adjusted operating efficiency ratio was 38.89 percent. Source
Marketing and operating expenses rose: Marketing expense rose 4 percent and operating expenses rose 22 percent, compared with increases of 12 percent and 20 percent in the second quarter. Source

Capital and balance sheet

CET1 ratio at 14.4 percent: The common equity Tier 1 ratio under the Basel III Standardized Approach was 14.4 percent at September 30, 2025, up from 14.0 percent at June 30, 2025. Source
Regulatory metrics preliminary: The company said the regulatory capital metrics as of September 30, 2025 are preliminary and subject to change. Source
Total assets reached $661.9 billion: Total assets were $661.9 billion at September 30, 2025, up from $659.0 billion at June 30, 2025. Source

Discover integration and adjusting items

Adjusting items were Discover-related: The quarter included adjusting items: Discover integration expenses of $348 million pre-tax, Discover intangible amortization of $498 million, and a $105 million Discover loan and deposit fair value mark amortization. Source
Adjusting items added $1.12 per share: After tax, the three adjusting items total $1.12 per diluted share, moving $4.83 per share of net income to $5.95 adjusted. Source

Prior quarter and acquisition timing

Discover acquisition closed May 18: The company completed its Discover acquisition on May 18, as the second-quarter release reported.
Second-quarter allowance build for Discover: The second quarter included an $8.8 billion initial allowance build for Discover non-PCD loans, or $8,767 million pre-tax.
Second-quarter net loss: Second-quarter net loss was $4.3 billion, or $(8.58) per share, with adjusted net income of $5.48 per share.

Figures management reported

Figure	Reported
Net interest margin Source	8.36 percent
Loans held for investment, period-end Source	$443.2 billion
Deposits, period-end Source	$468.8 billion
Interest-bearing deposits rate paid Source	3.27 percent
Provision for credit losses Source	$2.7 billion
Net charge-offs Source	$3.5 billion
CET1 ratio, Basel III Standardized Approach Source	14.4 percent
Efficiency ratio Source	53.80 percent

Earlier plans management reported on

Not stated: The second-quarter release described integration as going well, and the third-quarter release says it continues to go well.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

FOR IMMEDIATE RELEASE: October 21, 2025

Capital One Reports Third Quarter 2025 Net Income of $3.2 billion,

or $4.83 per share

Net of adjusting items, Third Quarter 2025 Net Income of $5.95 per share

McLean, Va. (October 21, 2025) - Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2025 of $3.2 billion, or $4.83 per diluted common share, compared with net loss of $4.3 billion, or $(8.58) per diluted common share in the second quarter of 2025, and with net income of $1.8 billion, or $4.41 per diluted common share in the third quarter of 2024. Adjusted net income for the third quarter of 2025 was $5.95 per diluted common share.

"In the third quarter, our adjusted earnings, top-line growth, credit results, and capital generation continued to be strong," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "The Discover integration continues to go well and we are well positioned to capitalize on the opportunities that lie in front of us."

The quarter included the following adjusting items:

(Dollars in millions, except per share data)	Pre-Tax Impact	After-Tax Diluted EPS Impact
Discover integration expenses	$348	$0.41
Discover intangible amortization expense	$498	$0.59
Discover loan and deposit fair value mark amortization	$105	$0.12

Capital One Third Quarter 2025 Earnings

All comparisons below are for the third quarter of 2025 compared with the second quarter of 2025 unless otherwise noted.

Third Quarter 2025 Income Statement Summary:

Total net revenue increased 23 percent to $15.4 billion.
Total non-interest expense increased 18 percent to $8.3 billion:
4 percent increase in marketing.
22 percent increase in operating expenses.
Pre-provision earnings increased 29 percent to $7.1 billion.
Provision for credit losses decreased $8.7 billion to $2.7 billion:
Net charge-offs of $3.5 billion.
$760 million loan reserve release.
Net interest margin of 8.36 percent, an increase of 74 basis points.
Adjusted net interest margin of 8.43 percent.
Efficiency ratio of 53.80 percent.
Adjusted efficiency ratio of 47.96 percent.
Operating efficiency ratio of 44.66 percent.
Adjusted operating efficiency ratioof 38.89 percent.

Third Quarter 2025 Balance Sheet Summary:

Common equity Tier 1 capital ratio under Basel III Standardized Approach of 14.4 percent at September 30, 2025.
Period-end loans held for investment in the quarter increased $3.9 billion, or 1 percent, to $443.2 billion.
Credit Card period-end loans increased $1.3 billion, or less than 1 percent, to $271.0 billion.
Domestic Card period-end loans increased $1.5 billion, or 1 percent, to $254.0 billion.
Consumer Banking period-end loans increased $2.0 billion, or 2 percent, to $83.2 billion.
Auto period-end loans increased $2.0 billion, or 3 percent, to $82.0 billion.
Commercial Banking period-end loans increased $537 million, or 1 percent, to $88.9 billion.
Average loans held for investment in the quarter increased $61.7 billion, or 16 percent, to $439.9 billion.
Credit Card average loans increased $59.5 billion, or 28 percent, to $269.2 billion.
Domestic Card average loans increased $54.3 billion, or 27 percent, to $252.1 billion.
Consumer Banking average loans increased $2.2 billion, or 3 percent, to $82.3 billion.
Auto average loans increased $2.2 billion, or 3 percent, to $81.1 billion.
Commercial Banking average loans increased $20 million, or less than 1 percent, to $88.4 billion.
Period-end total deposits increased $675 million, or less than 1 percent, to $468.8 billion, while average deposits increased $52.7 billion, or 13 percent, to $467.3 billion.
Interest-bearing deposits rate paid increased 5 basis points to 3.27 percent.

Capital One Third Quarter 2025 Earnings

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on October 21, 2025 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company’s website through November 4, 2025 at 5:00 PM Eastern Time.

Forward-Looking Statements

Forward-looking statements notice

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Forward-looking statements often use words such as “will,” “anticipate,” “target,” “expect,” “think,” “estimate,” “intend,” “plan,” “goal,” “believe,” “forecast,” “outlook” or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under “Part I - Item 1A. Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the “SEC”) and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $468.8 billion in deposits and $661.9 billion in total assets as of September 30, 2025. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

This is a non-GAAP measure. We believe non-GAAP measures help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on October 21, 2025 with the SEC, “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.

Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on October 21, 2025 with the SEC, “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.

Regulatory capital metrics as of September 30, 2025 are preliminary and therefore subject to change.

Contacts
Investor Relations · Jeff Norris · jeff.norris@capitalone.com
Danielle Dietz · danielle.dietz@capitalone.com
Media Relations · Sie Soheili · sie.soheili@capitalone.com