Capital One Announces Q2 2025 Net Loss of $4.3 Billion, Adjusted Net Income of $5.48 Per Share.

Capital One reported a net loss of $4.3 billion in Q2 2025, or $(8.58) per share. However, excluding adjusting items, net income was $5.48 per share.

Capital One Financial Corporation (NYSE: COF) announced a significant net loss of $4.3 billion in the second quarter of 2025, or $(8.58) per diluted common share. This figure represents a stark contrast to the net income of $1.4 billion, or $3.45 per diluted common share, reported in the first quarter of 2025, and a net income of $597 million, or $1.38 per diluted common share in the second quarter of 2024 [1].

However, when adjusting for certain items, the net income per diluted common share was $5.48. The company attributed this loss to several factors, including the acquisition of Discover and related integration expenses. The quarter saw a $8.767 billion initial allowance build for Discover non-PCD loans, $299 million in Discover integration expenses, and $255 million in Discover intangible amortization expense [1].

Despite the net loss, Capital One's total net revenue increased by 25% to $12.5 billion. Total non-interest expense rose by 18% to $7.0 billion, with increases in marketing and operating expenses. The net interest margin improved by 69 basis points to 7.62%, and the efficiency ratio decreased to 55.96% [1].

The company's balance sheet also showed growth, with period-end loans held for investment increasing by $115.7 billion, or 36%, to $439.3 billion. Credit card period-end loans surged by $112.5 billion, or 72%, to $269.7 billion, and domestic card period-end loans rose by $102.2 billion, or 68%, to $252.5 billion. Total deposits increased by $100.6 billion, or 27%, to $468.1 billion [1].

Capital One's Common equity Tier 1 capital ratio under Basel III Standardized Approach remained at 14.0% at June 30, 2025. The company will hold an earnings conference call on July 22, 2025, at 5:00 PM Eastern Time, to discuss the results further [1].

References:
[1] https://www.stocktitan.net/news/COF/capital-one-reports-second-quarter-2025-net-loss-of-4-3-billion-or-8-6htgn4o3hc99.html