Capital One (COF) Reports Q2 2025 Results on NYSE

# Capital One (COF) Reports Q2 2025 Results on NYSE

**Release Date: July 22, 2025**

Capital One Financial Corporation (NYSE: COF) announced its financial results for the second quarter of 2025, revealing a net loss of $4.3 billion, equating to a loss of $(8.58) per diluted common share. This contrasts significantly with a net income of $1.4 billion, or $3.45 per diluted common share from the previous quarter, and a net income of $597 million, or $1.38 per diluted common share during the second quarter of 2024. The following points summarize key financial metrics and highlights from the report:

### Financial Performance Highlights
– **Net Loss**: $4.3 billion, or $(8.58) per share.
– Comparison:
– Q1 2025: $1.4 billion net income
– Q2 2024: $597 million net income
– **Adjusted Net Income**: $5.48 per diluted common share (a non-GAAP measure).

### Key Adjusting Items
The second quarter included notable adjusting items affecting financial results:
– **Initial allowance build for Discover non-PCD loans**: $8.767 billion pre-tax; $13.04 earnings per share (EPS) impact.
– **Discover integration expenses**: $299 million pre-tax; $0.45 EPS impact.
– **Discover intangible amortization expense**: $255 million pre-tax; $0.38 EPS impact.
– **Discover loan and deposit fair value mark amortization**: $85 million pre-tax; $0.13 EPS impact.
– **Legal reserve activities**: $41 million pre-tax; $0.06 EPS impact.

There was also a notable item relating to:
– **California tax rate change**: $128 million pre-tax; negatively impacted EPS by $0.25.

### Income Statement Summary
– **Total Net Revenue**: Increased by **25%** to $12.5 billion.
– **Total Non-interest Expense**: Increased by **18%** to $7.0 billion:
– Marketing expenses up by **12%**.
– Operating expenses up by **20%**.
– **Pre-provision Earnings**: Increased by **34%** to $5.5 billion.
– **Provision for Credit Losses**:
– Increased by $9.1 billion to $11.4 billion.
– Net charge-offs at $3.1 billion.
– Loan reserve build at $7.9 billion.
– **Net Interest Margin**: **7.62%**, up by **69 basis points**.
– Adjusted Net Interest Margin: **7.68%**.
– **Efficiency Ratio**: **55.96%**.
– Adjusted Efficiency Ratio: **50.85%**.
– **Operating Efficiency Ratio**: **45.20%**.
– Adjusted Operating Efficiency Ratio: **40.16%**.

### Balance Sheet Summary
– **Common Equity Tier 1 Capital Ratio**: **14.0%** as of June 30, 2025.
– **Loans Held for Investment**: Increased by **36%** ($115.7 billion) to $439.3 billion:
– Credit Card loans increased by **72%** ($112.5 billion) to $269.7 billion.
– Domestic Card loans increased by **68%** ($102.2 billion) to $252.5 billion.
– Consumer Banking loans up by **3%** ($2.3 billion) to $81.2 billion.
– Auto loans up by **3%** ($2.4 billion) to $80.0 billion.
– Commercial Banking loans up by **1%** ($842 million) to $88.4 billion.
– **Average Loans Held for Investment**: Increased by **17%** ($55.8 billion) to $378.2 billion.
– Credit Card average loans up by **34%** ($53.3 billion) to $209.7 billion.
– Domestic Card average loans up by **32%** ($48.2 billion) to $197.8 billion.
– Consumer Banking average loans up by **2%** ($1.6 billion) to $80.1 billion.
– Auto average loans up by **2%** ($1.6 billion) to $78.9 billion.
– Commercial Banking average loans up by **1%** ($871 million) to $88.4 billion.
– **Period-End Total Deposits**: Increased by **27%** ($100.6 billion) to $468.1 billion.
– **Average Deposits**: Increased by **14%** ($50.5 billion) to $414.6 billion.
– **Interest-bearing Deposits Rate Paid**: Remained flat at **3.22%**.

### Shareholder Returns
– The company did not declare a quarterly dividend during this quarter.
– No share repurchase activity was mentioned in the report.

These financial metrics and strategic insights highlight the ongoing challenges and adjustments Capital One is making in light of their recent acquisition and current economic conditions.

# Condensed Consolidated Statements of Income (in millions)