The bank is moving its debit cards over from the Mastercard network after completing its acquisition of Discover earlier this year.

SE Limited's DFS unit posts 60% revenue growth as its loan book nears $8B, fueled by strong demand, rising adoption and broader product expansion.

Capital One Financial Corporation has transformed its business by acquiring Discover, gaining a proprietary payments network and expanding its credit card leadership. COF expects $2.5 billion in synergies by 2027 from the Discover integration, driving efficiency improvements and supporting long-term earnings growth. The company boasts a strong capital position, launching a $16 billion buyback and raising its dividend, while trading at attractive valuation multiples.

Capital One's acquisition of Discover makes it the largest US credit card holder, accelerating net interest income and EPS growth. Immediate synergies include $2.7B in cost savings and new revenue from moving debit cards onto the Discover network, despite higher-than-expected integration costs. Capital One's cloud technology leadership offers a major opportunity to modernize Discover's infrastructure, enabling lower costs and better risk management.

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The merger between Capital One and Discover Financial put a dent in bank profits. Second-quarter data released Tuesday (Aug. 26) by the Federal Deposit Insurance Corp. showed $66.9 billion in profits for the banking sector, down 1% from the previous quarter.

The completed merger between Capital One and Discover Financial weighed down bank profits in the second quarter, as the sector reported $69.9 billion in profits, down 1% from the quarter prior.

Capital One's acquisition of Discover creates a powerful card issuer and payment processor, positioning the company for strong future shareholder returns. Despite one-time acquisition impacts, adjusted earnings and net interest margins remain robust with a single-digit P/E and growing deposits and loans. The company boasts strong reserves, high liquidity coverage, and a CET1 ratio of 14%, ensuring financial stability and resilience against downturns.

Capital One's Discover acquisition boosts scale and net interest margin, but brings higher credit risk and integration noise to near-term results. Q2 earnings beat estimates, but the GAAP loss reflects conservative reserves for Discover loans; credit metrics are improving, supporting a stable outlook. Capital levels are robust, with $10B excess capital likely fueling accelerated buybacks once integration stabilizes, potentially starting in 2026.