Capital One's mixed quarter

Capital One’s first quarter showed a split picture: profit rose to $2.2 billion, but revenue slipped and adjusted earnings missed Wall Street estimates. (capitalone.com) (marketbeat.com) The bank said on April 21 that total net revenue fell 2% from the prior quarter to $15.2 billion, while adjusted earnings were $4.42 a share and net interest margin fell 39 basis points to 7.87%. Provision for credit losses was $4.1 billion, including $3.8 billion of net charge-offs and a $230 million reserve build. (capitalone.com 1) (capitalone.com 2) Analyst estimates compiled by market data services had pointed to higher numbers. Revenue of $15.23 billion trailed consensus forecasts of roughly $15.37 billion to $15.68 billion, and earnings per share missed estimates that ranged from about $4.57 to $5.08. (finance.yahoo.com) (marketbeat.com) (zacks.com) Management told investors that the Discover deal helped support profitability even as credit costs stayed high. In the earnings call, Capital One said adjusted pre-provision earnings rose 6% from the prior quarter, with Discover contributing to the increase. (fool.com) (capitalone.com) That integration is still relatively new. Capital One completed its acquisition of Discover on May 18, 2025, after winning final approvals from the Federal Reserve and the Office of the Comptroller of the Currency on April 18, 2025. (capitalone.com 1) (capitalone.com 2) The quarter also landed as Capital One was dealing with a separate consumer issue tied to savings accounts. A federal judge approved a $425 million settlement this week over claims that customers with older 360 Savings accounts were steered away from higher-yield 360 Performance Savings accounts. (investopedia.com) (click2houston.com) Capital One has denied wrongdoing in the savings case while agreeing to settle. The approved deal covers customers who held 360 Savings accounts between September 18, 2019, and June 16, 2025, with cash payments and future interest benefits for some account holders. (investopedia.com) (economictimes.indiatimes.com) Put together, the latest earnings and the settlement show two workloads running at once inside the bank: folding Discover into Capital One’s balance sheet and systems, while handling a large customer remediation tied to past account practices. The next few quarters will show whether expense cuts and Discover’s added scale can offset weaker revenue trends and elevated credit costs. (fool.com) (capitalone.com)