Capital One Financial Corporation (COF) released its June 2025 Monthly Charge-Off and Delinquency Metrics, providing critical insights into the credit performance and risk management of its loan portfolio. This report is essential for investors and analysts tracking Capital One’s financial health and credit risk trends as of June 30, 2025. Source Document
Total Domestic Card Loans: $252.5 billion (period-end)
Net Charge-Off Rate for Domestic Cards: 4.96% annualized
30+ Day Performing Delinquency Rate for Domestic Cards: 3.60%
Auto Loans: $80.0 billion (period-end) with a net charge-off rate of 1.69% and nonperforming loans at 0.73%
Capital One completed its acquisition of Discover Financial Services on May 18, 2025, which impacted the June 2025 charge-off rates. Discover’s accelerated charge-offs for certain accounts reduced net charge-offs by approximately $39 million, lowering the Discover Domestic net charge-off rate by 47 basis points and the Total Domestic Card net charge-off rate by 19 basis points for June 2025.
Capital One’s total loans held for investment stood at approximately \(327.8 billion as of FY 2024, with loans receivable held for sale at \)202 million. The reported net charge-off rates and delinquency metrics reflect ongoing normalization trends post-pandemic, consistent with management commentary from previous earnings calls.
In recent earnings calls, Capital One management highlighted that domestic card charge-off rates have been normalizing but remain modestly above pre-pandemic levels. For example, in Q3 2023, the domestic card charge-off rate was 4.4%, with a 30+ day delinquency rate of 4.31%, both slightly above 2019 levels. Management emphasized the slowing pace of delinquency normalization and noted that charge-offs are a lagging indicator, expected to catch up with delinquency trends over time.
Capital One continues to leverage its technology transformation and targeted marketing strategies to drive growth in its domestic card business. Marketing expenses remain a significant investment area, supporting new account growth and customer engagement through differentiated experiences such as travel portals and airport lounges.
The company also maintains a cautious outlook on credit risk, factoring in potential economic uncertainties such as rising unemployment and inflationary pressures. Management’s focus on resilient underwriting and credit performance stability positions Capital One to navigate these challenges effectively.
Given the current credit metrics and management’s outlook, Capital One is expected to experience continued normalization of credit losses with potential short-term volatility due to economic factors. The acquisition of Discover Financial Services adds scale and diversification but also introduces transitional impacts on credit metrics.
Investors should monitor upcoming quarterly reports for further updates on charge-off trends, delinquency rates, and the integration progress of Discover’s portfolio.
This analysis integrates the latest 8-K credit metrics report with insights from Capital One’s recent earnings calls to provide a comprehensive view of the company’s credit risk profile and strategic positioning as of mid-2025.
COF, Capital One Financial Corporation, Q2 2025, credit risk metrics, loan charge-offs, delinquency trends