Capital One Financial Non-GAAP EPS of $5.48 beats by $1.76, revenue of $12.5B misses by $370M

Capital One Financial press release (NYSE:COF): Q2 Non-GAAP EPS of $5.48 beats by $1.76.
Revenue of $12.5B (+31.4% Y/Y) misses by $370M.
Shares -1.09%.
Total non-interest expense increased 18 percent to $7.0 billion:
- 12 percent increase in marketing.
- 20 percent increase in operating expenses.
Pre-provision earnings⁽²⁾ increased 34 percent to $5.5 billion.
Provision for credit losses increased $9.1 billion to $11.4 billion:
- Net charge-offs of $3.1 billion.
- $7.9 billion loan reserve build.
Net interest margin of 7.62 percent, an increase of 69 basis points.
- Adjusted net interest margin⁽¹⁾ of 7.68 percent.
Efficiency ratio of 55.96 percent.
- Adjusted efficiency ratio⁽¹⁾ of 50.85 percent.
Operating efficiency ratio of 45.20 percent.
- Adjusted operating efficiency ratio⁽¹⁾of 40.16 percent.

Second Quarter 2025 Balance Sheet Summary:

Common equity Tier 1 capital ratio⁽³⁾ under Basel III Standardized Approach of 14.0 percent at June 30, 2025.
Period-end loans held for investment in the quarter increased $115.7 billion, or 36 percent, to $439.3 billion.
- Credit Card period-end loans increased $112.5 billion, or 72 percent, to $269.7 billion.
  - Domestic Card period-end loans increased $102.2 billion, or 68 percent, to $252.5 billion.
- Consumer Banking period-end loans increased $2.3 billion, or 3 percent, to $81.2 billion.
  - Auto period-end loans increased $2.4 billion, or 3 percent, to $80.0 billion.
- Commercial Banking period-end loans increased $842 million, or 1 percent, to $88.4 billion.
Average loans held for investment in the quarter increased $55.8 billion, or 17 percent, to $378.2 billion.
- Credit Card average loans increased $53.3 billion, or 34 percent, to $209.7 billion.
  - Domestic Card average loans increased $48.2 billion, or 32 percent, to $197.8 billion.
- Consumer Banking average loans increased $1.6 billion, or 2 percent, to $80.1 billion.
  - Auto average loans increased $1.6 billion, or 2 percent, to $78.9 billion.
- Commercial Banking average loans increased $871 million, or 1 percent, to $88.4 billion.
Period-end total deposits increased $100.6 billion, or 27 percent, to $468.1 billion, while average deposits increased $50.5 billion, or 14 percent, to $414.6 billion.
Interest-bearing deposits rate paid remained flat at 3.22 percent.

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