**Capital One Reports Net Loss Following Discover Acquisition**
Capital One Financial Corporation (COF) reported a net loss of $4.3 billion, or $8.58 per diluted common share, for the three months ended June 30, 2025. This compares to a net income of $597 million, or $1.38 per diluted common share, for the same period in 2024. Total net revenue for the quarter increased to $12.5 billion, up from $9.5 billion in the prior year. The company attributed the net loss primarily to a higher provision for credit losses, driven by the initial allowance for credit losses for non-purchased credit deteriorated (non-PCD) loans acquired in the Discover Financial Services transaction, and increased non-interest expenses related to integration and technology investments.
The company's financial performance for the six months ended June 30, 2025, also reflected a net loss of $2.9 billion, or $6.74 per diluted common share, compared to a net income of $1.9 billion, or $4.51 per diluted common share, for the same period in 2024. Total net revenue for the six-month period rose to $22.5 billion, an increase from $18.9 billion in the previous year. Key drivers for the six-month results mirrored those of the quarter, with the Discover acquisition significantly influencing both revenue and expenses. The company's common equity Tier 1 (CET1) capital ratio, calculated under the Basel III standardized approach, was 14.0% as of June 30, 2025, compared to 13.5% as of December 31, 2024.
Operationally, Capital One's loans held for investment increased substantially to $439.3 billion as of June 30, 2025, up from $327.8 billion at the end of 2024. This increase was primarily due to the Discover acquisition, which contributed $108.2 billion in loans. Average loans held for investment also saw an increase, reaching $378.2 billion for the second quarter of 2025, compared to $314.9 billion for the same period in 2024. Purchase volume for the second quarter of 2025 reached $201.5 billion, up 22% from $165.1 billion in the second quarter of 2024. The Global Payment Network volume was $74.0 billion for the second quarter of 2025.
Looking ahead, Capital One is focused on integrating Discover and leveraging its newly acquired networks, customer base, technology, and data ecosystem. The company also approved a plan to exit the Discover Home Loan business acquired as part of the transaction and is actively marketing the business to potential buyers. The company's preliminary stress capital buffer requirement for the period beginning on October 1, 2025, through September 30, 2026, is 4.5%. The Federal Reserve is expected to provide the company with its final stress capital buffer requirement by August 31, 2025.
About CAPITAL ONE FINANCIAL CORP
Capital One Financial Corporation is a diversified financial services holding company offering credit cards, consumer and commercial banking, auto loans, and treasury management primarily in the U.S., with operations in the U.K. and Canada. Its core segments include Credit Card, Consumer Banking, and Commercial Banking, serving consumers, small businesses, and commercial clients. Capital One leverages digital platforms, branch networks, and customer-focused products to compete on innovation, pricing, and service quality.
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