Capital One Financial reported second-quarter net income of $3.0 billion and diluted earnings per share of $4.73, on 4% quarter-on-quarter growth in total net revenue to $15.9 billion, the McLean, Virginia-based consumer lender said in its earnings release on Tuesday.
Adjusted earnings per share came in at $5.81, according to the release published on the group's investor relations site. Average loans held for investment increased 1%, or $4.4 billion, to $450.7 billion during the quarter.
CARDS AND CONSUMER LOANS EXPAND
Within that total, Credit Card average loans increased $223 million, or less than 1%, to $271.2 billion, while Consumer Banking average loans rose $2.9 billion, or 3%, to $88.6 billion.
Total net revenue growth of 4% to $15.9 billion outpaced loan growth, and net interest margin rose 14 basis points to 8.01%.
Provision for credit losses decreased $1.1 billion to $3.0 billion, with net charge-offs of $3.6 billion and a $662 million loan reserve release.
GAAP AND ADJUSTED EARNINGS DIVERGE
The gap between reported diluted EPS of $4.73 and adjusted EPS of $5.81 reflects adjusting items, including acquisition amortisation expenses ($0.60 per share), Discover integration expenses ($0.36) and Brex integration expenses ($0.12).
Net income of $3.0 billion for the three months to the end of June compared with $2.2 billion in the first quarter of 2026 and a net loss of $4.3 billion in the second quarter of 2025. "Our results in the second quarter continue to reflect solid top line growth and strong credit performance," said Richard D. Fairbank, founder, chairman and chief executive officer.
Marketing expense rose 11% in the quarter, while the rate paid on interest-bearing deposits fell 9 basis points to 2.91%.
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