The bank posted adjusted EPS of $5.81 in the second quarter, topping analyst estimates, as its provision for credit losses dropped $1.1 billion
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Capital One $COF reported second-quarter net income of $3.0 billion, or $4.73 per diluted common share, on Tuesday, up from a net loss of $4.3 billion, or $(8.58) per diluted common share, in the same period a year earlier. On an adjusted basis, the company earned $5.81 per diluted common share.
That came in ahead of the $4.69 consensus analyst estimate, according to Seeking Alpha.
Total net revenue rose 4% from the first quarter to $15.9 billion. The provision for credit losses fell $1.1 billion quarter-over-quarter to $3.0 billion, driven by $3.6 billion in net charge-offs and a $662 million loan reserve release. The net charge-off rate declined 22 basis points from the prior quarter to 3.23%. Net interest margin increased 14 basis points to 8.01%.
Total non-interest expense increased 7% to $9.0 billion. The quarter included $494 million in acquisition amortization expenses, $298 million in Discover $DFS integration expenses, and $96 million in Brex integration expenses.
"Our results in the second quarter continue to reflect solid top line growth and strong credit performance," Capital One Founder, Chairman, and Chief Executive Officer Richard D. Fairbank said in a statement. "We're now 14 months into our integration of Discover, and integration is going well."
Loans held for investment at the end of the period increased by $9.4 billion, or 2%, to $457.2 billion. Credit card loans rose by $4.9 billion, or 2%, to $275.4 billion, and auto loans grew by $3.6 billion, or 4%, to $89.3 billion. Total deposits dropped by $4.8 billion, or 1%, to $484.3 billion. The common equity Tier 1 capital ratio was 13.7% as of June 30, 2026.
In the first quarter, Capital One reported net income of $2.2 billion, or $3.34 per diluted share. Adjusted earnings were $4.42 per share, which was below the $4.61 consensus estimate. Adjusted revenue was $15.23 billion, also missing Wall Street’s $15.37 billion expectation. The quarter also highlighted the Discover integration and a lower provision for credit losses.
Capital One finished its acquisition of Brex on April 7, 2026, using a mix of stock and cash. Brex’s results have been included in the Credit Card business segment since then through the end of the second quarter.
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