Capital One Financial Corp.

Strong Q4 Earnings and Full-Year Performance: Capital One reported Q4 net income of $1.1 billion ($2.67 per diluted share), and full-year earnings of $4.8 billion ($11.59 per share). Adjusted earnings per share were $3.09 for Q4 and $13.96 for the full year. This marks a robust performance despite inclusion of one-time items like $100 million in accelerated philanthropy contributions.

Credit Performance Trends: Delinquencies have improved year-over-year, with a 30-plus delinquency rate at 4.53%, down 8 basis points compared to the previous year. However, charge-off rates are higher than pre-pandemic levels due to delayed charge-offs, a trend that may still exert pressure going forward. The company remains cautious, noting the divergence in credit performance across consumer segments.

Investment in Discover Acquisition: Capital One's acquisition of Discover is seen as a significant strategic opportunity to enhance its consumer banking and payment platform. The company plans to invest heavily post-acquisition in compliance, risk management, network acceptance, and brand building. Approval is anticipated by early 2025, subject to regulatory and shareholder approval.