Capital One Reports High February Credit Card Charge-Offs at 5.17%
Summary
Capital One disclosed its monthly credit metrics for February 2026, revealing a domestic credit card net charge-off rate of 5.17% and a 30+ day delinquency rate of 3.96%, alongside auto loan metrics.
Key Events
-
Domestic Credit Card Charge-Offs
Net charge-offs for domestic credit cards reached $1,094 million, resulting in an annualized rate of 5.17% for February 2026.
-
Credit Card Delinquency Rates
The 30+ day performing delinquency rate for domestic credit cards stood at 3.96% ($10,005 million) as of February 28, 2026.
-
Auto Loan Metrics
Auto loans reported a net charge-off rate of 1.54% ($108 million) and a 30+ day performing delinquency rate of 4.08% ($3,449 million). Nonperforming auto loans were $504 million (0.60%).
Analysis
This 8-K filing provides a crucial monthly update on Capital One's credit quality, a key concern highlighted in its recent 10-K. The domestic credit card net charge-off rate of 5.17% for February 2026 is notably high, indicating ongoing pressure on asset quality and potential future earnings. Similarly, the 30+ day delinquency rates for both credit cards and auto loans remain elevated. Investors should monitor these trends closely, especially given the company's recent acquisition of Discover and its reported decline in net income partly due to increased credit provisions. Sustained high charge-off rates could impact profitability and necessitate further provisioning.
At the time of this filing, COF was trading at $179.33 on NYSE in the Finance sector, with a market capitalization of approximately $111.8B. The 52-week trading range was $143.22 to $259.64. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.