Capital One releases February charge-off and delinquency data

Capital One Financial Corp. (NYSE:COF), currently trading at $171.87, disclosed its monthly charge-off and delinquency metrics for February 2025, providing investors with the latest data on the financial health of its credit portfolio. The report, filed today, is based on the company’s activities up to and including February 28, 2025. According to InvestingPro analysis, Capital One maintains a "GOOD" overall financial health score, with particularly strong performance in cash flow and relative value metrics.

The document, which is not deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, outlines the performance indicators that are crucial for assessing credit risk and potential revenue impact from non-performing loans. The company’s robust financial position is reflected in its $27.4 billion revenue over the last twelve months, with a healthy revenue growth of 3.93%.

Charge-offs occur when a creditor realizes that a loan is unlikely to be collected and removes it from their books as an asset. High charge-off rates can indicate financial stress among borrowers and may impact a bank’s bottom line. Delinquency rates, which track loans overdue by a certain number of days, are an early indicator of potential future charge-offs.

While the specific figures of the charge-offs and delinquencies were not disclosed in the press release statement, these metrics are key for investors and analysts to gauge the credit quality of Capital One’s loan portfolio. Regular updates on such financial metrics are a regulatory requirement and are closely monitored by the market for signs of a financial institution’s performance and stability. The company has demonstrated strong financial discipline, maintaining dividend payments for 31 consecutive years, with a current dividend yield of 1.4%.

Capital One, headquartered in McLean, Virginia, is classified under the National Commercial Banks industry and operates under the Central Index Key (CIK) number 0000927628. The company has a variety of securities registered with the New York Stock Exchange, including common stock and various series of preferred stock, as well as senior notes due in 2029.

Investors and stakeholders in the financial sector often look to these monthly updates as they reflect not only on the company’s financial health but also on the broader economic trends affecting consumer behavior and credit markets. The information provided in this report is a snapshot of Capital One’s financial position as it relates to consumer credit performance. For deeper insights, InvestingPro analysis suggests the stock is currently undervalued, with additional exclusive metrics and 7 more ProTips available to subscribers through the comprehensive Pro Research Report.

In other recent news, Capital One Financial has seen a flurry of analyst activity and legal developments. Evercore ISI upgraded Capital One’s stock rating to Outperform, citing a positive long-term earnings outlook and a price target of $200. The firm noted the potential benefits of a merger with Discover Financial Services (NYSE:DFS), although they acknowledged some risks such as a weakening consumer market. Similarly, Baird also raised its rating for Capital One to Outperform, increasing the price target to $200, highlighting the company’s potential for profitability and resilience amid economic challenges. BofA Securities followed suit, upgrading Capital One to Buy and setting a new price target of $235, reflecting confidence in the company’s growth prospects.

On the legal front, Capital One is facing a lawsuit from President Donald Trump’s company, which alleges the bank closed accounts for political reasons after Trump’s presidency. The Trump Organization claims that Capital One’s actions were politically motivated, affecting accounts with millions of dollars. Additionally, the U.S. Consumer Financial Protection Bureau (CFPB) has dropped its legal action against Capital One concerning alleged deceptive practices related to interest payments on savings accounts. The CFPB had accused Capital One of causing consumers to lose over $2 billion in interest payments, but the case was dismissed. These recent developments highlight the diverse challenges and opportunities that Capital One is navigating.

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