Capital One Financial Corp.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 22 January 2026: press release. The quarter’s numbers.

Key takeaways

Quarterly net income lower than third quarter: Net income was $2.1 billion, or $3.26 per diluted share, against $4.83 in the third quarter and $2.67 a year earlier. Adjusted net income was $3.86 per diluted share. Source
Credit Card drove most loan growth: Credit Card period-end loans rose $8.5 billion, or 3 percent, to $279.6 billion, most of the $10.5 billion rise in total period-end loans held for investment. Source
Non-interest expense rose 13 percent: Non-interest expense rose 13 percent to $9.3 billion in the quarter, compared with the third quarter. Source
Net interest margin eased 10 basis points: Net interest margin was 8.26 percent, with an adjusted margin of 8.28 percent. Source
Provision rose to $4.1 billion: Provision for credit losses rose $1.4 billion to $4.1 billion in the quarter. Source
Agreement to acquire Brex: On January 22, 2026, Capital One agreed to acquire Brex Inc. for $5.15 billion, with about 50 percent cash and 50 percent stock consideration. Source
Adjusting items excluded from adjusted EPS: Adjusted results exclude Discover integration expenses of $352 million, Discover amortization items, a legal reserve item, and a home loan portfolio sale gain, among other adjusting items. Source

“Our fourth quarter and full year results reflect solid top line growth and strong and stable credit performance”
Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer

What changed from last quarter

New: Capital One agreed to acquire Brex Inc. on January 22, 2026, for $5.15 billion, with about 50 percent cash and 50 percent stock. Source

Results and growth drivers

Quarterly net income lower than third quarter: Net income was $2.1 billion, or $3.26 per diluted share, against $4.83 in the third quarter and $2.67 a year earlier. Adjusted net income was $3.86 per diluted share. Source
Revenue rose; pre-provision earnings fell: Total net revenue rose 1 percent to $15.6 billion. Pre-provision earnings, revenue less non-interest expense, fell 12 percent to $6.2 billion. Source
Full-year revenue and earnings rose: For 2025, total net revenue rose 37 percent to $53.4 billion and pre-provision earnings rose 30 percent to $22.9 billion. Source

Segments and regions

Credit Card drove most loan growth: Credit Card period-end loans rose $8.5 billion, or 3 percent, to $279.6 billion, most of the $10.5 billion rise in total period-end loans held for investment. Source
Domestic Card loans grew 3 percent: Domestic Card period-end loans rose $8.5 billion, or 3 percent, to $262.4 billion. Source
Consumer Banking and Auto loans grew: Consumer Banking period-end loans rose $1.6 billion to $84.8 billion. Auto period-end loans also rose $1.6 billion, to $83.6 billion. Source
Commercial Banking loans nearly flat: Commercial Banking period-end loans rose $370 million, under 1 percent, to $89.3 billion. Source
Primary markets are US, Canada, UK: The company names the United States, Canada and the United Kingdom as its primary markets for its products. Source

“Years of strategic preparation and our choices to consistently invest to sustain long-term growth and returns enable our results”
Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer

Costs and marketing

Non-interest expense rose 13 percent: Non-interest expense rose 13 percent to $9.3 billion in the quarter, compared with the third quarter. Source
Marketing and operating expenses rose: Marketing expense rose 38 percent and operating expenses rose 8 percent, both compared with the third quarter. Source
Full-year non-interest expense rose 42 percent: For 2025, non-interest expense rose 42 percent to $30.5 billion, with marketing up 29 percent and operating expenses up 45 percent. Source

Margins and deposit pricing

Net interest margin eased 10 basis points: Net interest margin was 8.26 percent, with an adjusted margin of 8.28 percent. Source
Full-year margin rose 96 basis points: For 2025, net interest margin was 7.84 percent, with an adjusted margin of 7.88 percent. Source
Deposit rate paid fell 11 basis points: The rate paid on interest-bearing deposits fell 11 basis points to 3.16 percent. Source
Efficiency ratios reported and adjusted: Efficiency ratio was 59.95 percent, or 53.73 percent adjusted. Operating efficiency ratio was 47.54 percent, or 41.35 percent adjusted. Source

Credit losses and reserves

Provision rose to $4.1 billion: Provision for credit losses rose $1.4 billion to $4.1 billion in the quarter. Source
Net charge-offs and reserve build: Net charge-offs were $3.8 billion, and the loan reserve build was $302 million. Source
Full-year provision rose $8.9 billion: For 2025, provision for credit losses rose $8.9 billion to $20.7 billion. Source

Demand, balance sheet and capital

Average loans rose 1 percent: Average loans held for investment rose $4.8 billion, or 1 percent, to $444.7 billion. Source
Average Card and Auto loans grew: Average Credit Card loans rose $3.1 billion to $272.2 billion. Average Auto loans rose $1.7 billion to $82.8 billion. Source
Period-end deposits rose 1 percent: Period-end deposits rose $7.0 billion, or 1 percent, to $475.8 billion, while average deposits rose $3.7 billion to $471.0 billion. Source
Commercial average loans nearly flat: Commercial Banking average loans rose $106 million, under 1 percent, to $88.5 billion. Source
CET1 ratio 14.3 percent, preliminary: The CET1 ratio under the Basel III Standardized Approach was 14.3 percent at December 31, 2025, compared with 14.4 percent at September 30, 2025. The figures are preliminary. Source
Total assets and deposits at year-end: Total assets were $669.0 billion at December 31, 2025. Source

Strategy, acquisitions and business lines

Agreement to acquire Brex: On January 22, 2026, Capital One agreed to acquire Brex Inc. for $5.15 billion, with about 50 percent cash and 50 percent stock consideration. Source
Company describes public cloud migration: The company describes itself as the only major U.S. bank to migrate entirely to the public cloud, using proprietary data and analytics. Source
Global Payment Network in Consumer Banking: The company describes lines of business as Credit Card, Consumer Banking including its Global Payment Network, and Commercial Banking. Source

Adjusting and notable items

Adjusting items excluded from adjusted EPS: Adjusted results exclude Discover integration expenses of $352 million, Discover amortization items, a legal reserve item, and a home loan portfolio sale gain, among other adjusting items. Source
Home loan portfolio sale gain excluded: A pre-tax gain of $483 million from selling the home loan portfolio, $0.58 per diluted share, was treated as an adjusting item. Source
Discover amortization items excluded: Discover intangible amortization of $509 million and Discover loan and deposit fair value mark amortization of $37 million were adjusting items. Source
Philanthropy and pension notable items: Accelerated philanthropy contributions of $200 million ($0.24 per share) and pension termination expense of $37 million ($0.04) were listed as notable items. Source
Legal reserve and FDIC assessment items: A $117 million legal reserve item and a $29 million FDIC special assessment item were also listed among the adjusting items. Source

Coming up, as management said on 22 January 2026

Capital ratio still preliminary: The regulatory capital metrics as of December 31, 2025 are preliminary and may change. Source

Figures management reported

Figure	Reported
Net interest margin Source	8.26 percent
Loans Source	$453.6 billion
Deposits Source	$475.8 billion
Provision for credit losses Source	$4.1 billion
Net charge-offs Source	$3.8 billion
CET1 ratio Source	14.3 percent
Efficiency ratio Source	59.95 percent
Interest-bearing deposit rate paid Source	3.16 percent

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: January 22, 2026

Capital One Reports Fourth Quarter 2025 Net Income of $2.1 billion, or $3.26 per share

Net of adjusting items, Fourth Quarter 2025 Net Income of $3.86 per share

McLean, Va. (January 22, 2026) - Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2025 of $2.1 billion, or $3.26 per diluted common share, compared with net income of $3.2 billion, or $4.83 per diluted common share in the third quarter of 2025, and with net income of $1.1 billion, or $2.67 per diluted common share in the fourth quarter of 2024. Adjusted net income for the fourth quarter of 2025 was $3.86 per diluted common share.

On January 22, 2026, Capital One entered into a definitive agreement to acquire Brex Inc. for $5.15 billion with approximately 50% cash and 50% stock consideration.

“Our fourth quarter and full year results reflect solid top line growth and strong and stable credit performance” said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. “Years of strategic preparation and our choices to consistently invest to sustain long-term growth and returns enable our results and put us in a strong position going forward. I’m struck by the number and quality of the opportunities we have before us.”

The quarter included the following adjusting items:

(Dollars in millions, except per share data)	Pre-Tax Impact	After-Tax Diluted EPS Impact
Discover intangible amortization expense	$509	$0.61
Discover loan and deposit fair value mark amortization	$37	$0.04
Discover integration expenses	$352	$0.42
Legal reserve activities	$117	$0.14
Gain on sale of home loan portfolio	$(483)	$(0.58)
FDIC special assessment	$(29)	$(0.03)

The quarter included the following notable items:

(Dollars in millions, except per share data)	Pre-Tax Impact	After-Tax Diluted EPS Impact
Accelerated philanthropy contributions	$200	$0.24
Pension termination expense	$37	$0.04

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

Fourth Quarter 2025 Income Statement Summary:

Total net revenue increased 1 percent to $15.6 billion.
Total non-interest expense increased 13 percent to $9.3 billion:
38 percent increase in marketing.
8 percent increase in operating expenses.
Pre-provision earnings decreased 12 percent to $6.2 billion.
Provision for credit losses increased $1.4 billion to $4.1 billion:
Net charge-offs of $3.8 billion.
$302 million loan reserve build.
Net interest margin of 8.26 percent, a decrease of 10 basis points.
Adjusted net interest margin of 8.28 percent.
Efficiency ratio of 59.95 percent.
Adjusted efficiency ratio of 53.73 percent.
Operating efficiency ratio of 47.54 percent.
Adjusted operating efficiency ratioof 41.35 percent.

Fourth Quarter 2025 Balance Sheet Summary:

Common equity Tier 1 capital ratio under Basel III Standardized Approach of 14.3 percent at December 31, 2025.
Period-end loans held for investment in the quarter increased $10.5 billion, or 2 percent, to $453.6 billion.
Credit Card period-end loans increased $8.5 billion, or 3 percent, to $279.6 billion.
Domestic Card period-end loans increased $8.5 billion, or 3 percent, to $262.4 billion.
Consumer Banking period-end loans increased $1.6 billion, or 2 percent, to $84.8 billion.
Auto period-end loans increased $1.6 billion, or 2 percent, to $83.6 billion.
Commercial Banking period-end loans increased $370 million, or less than 1 percent, to $89.3 billion.
Average loans held for investment in the quarter increased $4.8 billion, or 1 percent, to $444.7 billion.
Credit Card average loans increased $3.1 billion, or 1 percent, to $272.2 billion.
Domestic Card average loans increased $3.1 billion, or 1 percent, to $255.2 billion.
Consumer Banking average loans increased $1.7 billion, or 2 percent, to $84.0 billion.
Auto average loans increased $1.7 billion, or 2 percent, to $82.8 billion.
Commercial Banking average loans increased $106 million, or less than 1 percent, to $88.5 billion.
Period-end total deposits increased $7.0 billion, or 1 percent, to $475.8 billion, while average deposits increased $3.7 billion, or 1 percent, to $471.0 billion.
Interest-bearing deposits rate paid decreased 11 basis points to 3.16 percent.

2025 Full Year Income Statement Summary:

Total net revenue increased 37 percent to $53.4 billion.
Total non-interest expense increased 42 percent to $30.5 billion:
29 percent increase in marketing expense.
45 percent increase in operating expenses.
Pre-provision earnings increased 30 percent to $22.9 billion.
Provision for credit losses increased $8.9 billion to $20.7 billion.
Net interest margin of 7.84 percent, an increase of 96 basis points.
Adjusted net interest margin of 7.88 percent.
Efficiency ratio of 57.08 percent.
Adjusted efficiency ratio of 51.81 percent.
Operating efficiency ratio of 46.06 percent.
Adjusted operating efficiency ratio of 40.84 percent.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on January 22, 2026 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 February 5, 2026 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.

Capital One Financial Corporation (NYSE: COF) is a leading technology-based financial services company with $475.8 billion in deposits and $669.0 billion in total assets as of December 31, 2025. Headquartered in McLean, Virginia, the company operates as a premier global payments provider and diversified financial institution, delivering a broad suite of products and consumer lifestyle and shopping experiences through its Credit Card, Consumer Banking, including its Global Payment Network, and Commercial Banking lines of business. As the only major U.S. bank to migrate entirely to the public cloud, Capital One leverages proprietary data and advanced analytics to democratize financial tools across its primary markets in the United States, Canada, and the United Kingdom.

Amounts excluding adjusting items are non-GAAP measures that we believe 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 Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to these 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 January 22, 2026 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.

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 on our Current Report on Form 8-K on January 22, 2026 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 December 31, 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