Key facts
- Capital One Financial reported higher second-quarter profit, aided by increased interest income from its credit card business.
- Net interest income increased to $12.37 billion from approximately $10 billion a year prior.
- Non-interest income, primarily interchange fees, rose nearly 39% to $3.48 billion.
- Adjusted net income available to common stockholders was $3.60 billion, or $5.81 per share, compared to $2.77 billion, or $5.48 per share, a year ago.
- The company's loan loss provisions increased to $11.43 billion, with net charge-offs rising 16% to $3.06 billion.
Capital One Financial reported a rise in second-quarter profit on Tuesday, driven by higher interest income from its credit card business and increased fee income. Net interest income, the difference between what a bank earns on loans and pays out on deposits, rose to $12.37 billion from approximately $10 billion a year earlier. Non-interest income, primarily interchange fees, increased nearly 39% to $3.48 billion. Adjusted net income available to common stockholders was $3.60 billion, or $5.81 per share, compared to $2.77 billion, or $5.48 per share, a year ago. Consumer spending remained resilient despite concerns over inflation and growth, partly linked to U.S. President Trump's trade policies. However, Capital One's credit card business provides a buffer due to higher interest rates on credit card debt. The company's loan loss provisions stood at $11.43 billion, with net charge-offs jumping 16% to $3.06 billion. Shares of Capital One have fallen 14.9% year-to-date.