Capital One Returns to Profitability as Credit Provisions Drop

A sharp 74% decline in provisions for credit losses propelled Capital One Financial to a $3.02 billion profit in the second quarter. The McLean-based bank shifted from a massive loss a year prior, as revenue exceeded analyst expectations and delinquency rates across its credit card and consumer banking portfolios ticked downward.

July 21, 2026, 11:46 PM 2,044 0

The bank reported adjusted earnings of $5.81 per share, comfortably beating the $4.67 estimate projected by FactSet analysts. Total revenue climbed to $15.85 billion, a 27% increase over the previous year. This performance stands in stark contrast to the same period in 2023, when the firm recorded a $4.28 billion loss largely tied to the $35 billion acquisition of Discover Financial.

Chief Executive Richard Fairbank credited the turnaround to resilient credit performance and steady progress in the Discover integration. Loan growth remained consistent, with credit-card balances rising 2% to $275.41 billion, while consumer banking loans grew 11% to $90.47 billion. Delinquency rates reflected this stability, settling at 3.4% for credit cards and 4.3% for consumer banking.

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