Capital One Q2 Profit Soars to $3B, Crushing Estimates on Lower Credit Costs
COF sits 19% above its 52-week low of $174.24.
Summary
Capital One swung to a $3.02B profit in Q2, with adjusted EPS of $5.81 smashing the $4.67 consensus. Revenue jumped 27% to $15.85B, also ahead of expectations. The big driver: provision for credit losses plunged 74% to $2.99B, reflecting improving credit trends. Delinquency rates edged down, and loan growth was solid—credit-card loans up 2%, consumer banking up 11%. This follows a preview earlier today and the Q1 report that showed strong revenue but higher provisions. The results confirm the Discover integration is on track and credit quality is stabilizing, a sharp reversal from last year's loss tied to the acquisition. With the CFPB leadership nomination of a Capital One executive still pending, regulatory tailwinds could further support the stock.
At the time of this announcement, COF was trading at $207.00 on NYSE in the Finance sector, with a market capitalization of approximately $127B. The 52-week trading range was $174.24 to $259.64. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.