Capital One Financial Corp (NYSE:COF)

$ 182.73 -2.32 (-1.25%) Market Cap: 69.98 Bil Enterprise Value: 62.61 Bil PE Ratio: 15.34 PB Ratio: 1.10 GF Score: 80/100

Q1 2025 Capital One Financial Corp Earnings Call Transcript

Apr 22, 2025 / 09:00PM GMT

Release Date Price: $170.2 (+3.05%)

Transcript 8-K

Key Points

Positve

Capital One Financial Corp (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 (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 (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

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 (COF) faces heightened uncertainty due to economic conditions, including potential impacts from tariffs and inflation, which could affect future credit performance.

Operator

Good day, and thank you for standing by. Welcome to the Capital One Q1 2025 earnings call. Please be advised that today's conference is being recorded. (Operator Instructions) I would now like to hand the conference over to your speaker today, Jeff Norris, Senior Vice President of Finance. Please go ahead.

Jeff Norris Norris

Capital One Financial Corp - Senior Vice President of Finance

Thanks very much, Josh, and welcome to everyone. To access our live webcast of this call, please go to the Investors section of Capital One's website at capitalone.com and follow the links there. A copy of the earnings presentation, press release and financial supplement can be found in the Investors section of Capital One's website at capitalone.com by selecting financials and then quarterly earnings releases.

With me this evening are Richard Fairbank, Capital One's Chairman and Chief Executive Officer; and Mr. Andrew Young, Capital One's Chief Financial Officer. Rich and Andrew will going through our presentation summarizing our first quarter results for 2025.

Already have an account? Log in

Get the full story

Start 7-Day Free Trial

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

30-Day 100% money back guarantee

You are not charged until the trial ends. Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App 中文

Education

Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Site Map Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.