Yahoo Finance

• Net Income: $1.4 billion or $3.45 per diluted share; adjusted EPS of $4.06.

• Pre-Provision Earnings: $4.1 billion, flat compared to the fourth quarter; adjusted increase of 2%.

• Revenue: Declined 2% due to two fewer days in the quarter.

• Noninterest Expense: Decreased 5% on an adjusted basis.

• Provision for Credit Losses: $2.4 billion, a decrease of $273 million from the prior quarter.

• Allowance Release: $368 million, bringing the allowance balance to $15.9 billion.

• Total Liquidity Reserves: Increased to $131 billion, up $7 billion from last quarter.

• Cash Position: Approximately $49 billion, up $5 billion from the prior quarter.

• Net Interest Margin (NIM): 6.93%, a decrease of 10 basis points from last quarter.

• Common Equity Tier 1 Capital Ratio: 13.6%, up 10 basis points from the prior quarter.

• Domestic Card Purchase Volume Growth: 5% year-over-year; adjusted growth of 6% accounting for leap year.

• Domestic Card Revenue Margin: Increased 37 basis points to 18.2%.

• Charge-Off Rate: 6.19%, up 25 basis points year-over-year.

• Domestic Card Noninterest Expense: Up 13% year-over-year.

• Marketing Expense: $1.2 billion, up 19% year-over-year.

• Auto Originations: Up 22% from the prior year quarter.

• Consumer Banking Revenue: Down 2% year-over-year.

• Auto Charge-Off Rate: 1.55%, down 44 basis points year-over-year.

• Commercial Banking Revenue: Down 7% from the linked quarter.

• Commercial Banking Net Charge-Off Rate: 0.11%, down 15 basis points from the sequential quarter.

Release Date: April 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Capital One Financial Corp (NYSE:COF) reported strong first-quarter earnings with $1.4 billion in net income, translating to $3.45 per diluted share.

• The company achieved a 5% year-over-year growth in purchase volume in its Domestic Card business, with revenue up 7% from the first quarter of 2024.

• Capital One Financial Corp (NYSE:COF) saw a decrease in its provision for credit losses by $273 million compared to the prior quarter, driven by lower net charge-offs and larger reserve releases.

• The company's liquidity reserves increased by $7 billion from the previous quarter, ending at $131 billion, supported by strong deposit growth.

• Capital One Financial Corp (NYSE:COF) received regulatory approval for its acquisition of Discover, which is expected to create a leading consumer banking and payments platform with significant strategic and economic upside.

Negative Points

• Revenue in the linked quarter declined by 2%, attributed to two fewer days in the quarter.

• The net interest margin decreased by 10 basis points from the previous quarter, impacted by fewer days in the quarter.

• Noninterest expense increased by 27% year-over-year in the Consumer Banking segment, driven by higher marketing and technology investments.

• The charge-off rate in the Domestic Card business increased by 25 basis points year-over-year, partly due to the end of the Walmart loss-sharing agreement.

• Capital One Financial Corp (NYSE:COF) faces heightened uncertainty due to economic conditions, including potential impacts from tariffs and inflation, which could affect future credit performance.