Capital One Q3 Beats Estimates, Plans $16B Buyback

Capital One posted third-quarter net income of $3.19 billion and adjusted EPS of $5.95 (GAAP $4.83), beating estimates and lifting the stock about 3%. Revenue rose 53% to $15.36 billion and net interest income climbed 54%, gains largely driven by the May acquisition of Discover as card purchase volume increased. Management said the Discover integration is progressing but incurred nearly $1 billion of integration-related expenses (about $0.41 a share) during the quarter. The bank released $760 million of allowance for losses, took smaller-than-expected provisions for credit losses, and reported resilient credit metrics, including a consumer auto net charge-off rate of 1.54%. Capital One authorized up to $16 billion in share repurchases and executives emphasized confidence in capital generation as the company digests the largest U.S. bank deal in 15 years.