Capital One reports strong third quarter profits as credit losses fall

Capital One reported third quarter net income of $3.5 billion, or $5.61 per share, according to Business Wire. PYMNTS reported that card purchase volume grew by 11 percent as customer spending increased, while credit losses declined during the period. [1][5]

According to PYMNTS, domestic credit card charge-offs fell by 65 basis points compared to the previous year. Delinquency rates for cardholders also remained lower than the levels recorded during the same period last year. [1]

The bank is using its solid financial performance to fund major corporate initiatives, PYMNTS reported. Capital One is testing the migration of its credit cards onto the Discover network following the completion of its debit card conversion, while also expanding its investments in generative and agentic artificial intelligence. [1]

Capital One stock rose after lower expenses and smaller credit loss provisions boosted earnings above forecasts, Seeking Alpha Markets reported. Investing.com News added that net interest margin increased by 40 basis points as credit trends improved during the quarter. [2][3][4]