Corporate Participants
- Richard Fairbank – Chairman & Chief Executive Officer
- Andrew Young – Chief Financial Officer
- Jeff Norris – Senior Vice President, Investor Relations
Prepared Remarks
Jeff Norris: Welcome to Capital One fourth quarter 2025 earnings call. Joining me are Richard Fairbank, our Chairman and CEO, and Andrew Young, our CFO.
Richard Fairbank: Capital One delivered strong results with revenue of $9.8 billion and EPS of $3.45. Our credit card business showed continued momentum with purchase volume growth of 8% year-over-year.
Our digital transformation initiatives continue to drive customer acquisition. We added 2.1 million new card accounts while maintaining disciplined underwriting. Our technology investments are paying off with improved customer experiences and operational efficiency.
Auto finance performed well despite a competitive market. We maintained our focus on prime and super-prime segments while achieving strong risk-adjusted returns.
Andrew Young: Revenue of $9.8 billion was up 6% year-over-year. Net interest margin was 6.8%, reflecting our asset-sensitive balance sheet. The provision for credit losses was $2.1 billion, consistent with our expectations for normalization.
Q&A Session
Analyst: Can you talk about credit trends and charge-off expectations?
Richard Fairbank: Credit performance remains in line with expectations. We continue to see normalization toward pre-pandemic levels. Our underwriting discipline and portfolio mix position us well, and we expect charge-offs to stabilize in the second half of 2026.
Analyst: What is your outlook for marketing spend and growth investments?
Richard Fairbank: We will continue to invest in marketing and technology where we see attractive risk-adjusted returns. Our digital capabilities give us a competitive advantage in customer acquisition and we intend to press that advantage.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, we cannot guarantee that all information is complete or error-free. Please refer to the company's official SEC filings for authoritative information.