Capital One's quarterly profit rises as interest income jumps

Oct 21 (Reuters) - Capital One Financial COF.N reported a rise in third-quarter profit on Tuesday, as the consumer lender was helped by strong income from interest on its credit card debt.

Shares of the company, which have gained about 22% in 2025, rose 4.4% in trading after the bell. The company also authorized a $16 billion share repurchase, effective immediately.

Consumer spending remained strong in the July-to-September quarter as households went on vacation and dined out, keeping the economy on solid ground — retaining most of its momentum from the previous quarter.

Also, firms such as Capital One remain insulated from economic volatility and industry weakness due to their credit card business, where interest rates are much higher than on mortgages and other loans.

The McLean, Virginia-based company's net interest income — the difference between what it makes on loans and pays out on deposits — rose 54% to $12.40 billion in the third quarter.

Capital One's quarterly non-interest income, which primarily consists of interchange income, net of reward expenses, service charges and other customer-related fees, rose nearly 52% to $2.96 billion.

Its adjusted net income available to common stockholders was $3.80 billion, or $5.95 per share, in the quarter, from $1.73 billion, or $4.51 per share, a year earlier.