New York, Jan 26, 2026, 11:40 (EST) — Regular session
Shares of Capital One Financial Corporation (COF.N) climbed 0.9% to $219.27 in late morning trading Monday. The Financial Select Sector SPDR fund ticked up 0.3%. JPMorgan advanced 0.8%, Bank of America added 0.4%, while American Express dipped 0.1%.
The move follows a tough period for the credit-card lender, with investors focused sharply on costs and credit quality. Total non-interest expenses jumped 13% to $9.3 billion, propelled by a 38% surge in marketing spend. The provision for credit losses — funds set aside for potentially bad loans — increased by $1.4 billion, hitting $4.1 billion. “Our fourth quarter and full year results reflect solid top line growth and strong and stable credit performance,” said CEO Richard Fairbank. (SEC)
The bank agreed to acquire fintech Brex for $5.15 billion in a cash-and-stock transaction, according to a filing. Capital One said the deal includes roughly $2.75 billion in cash plus 10.6 million shares, with a closing expected by mid-2026, pending regulatory approval. CEO Fairbank described the acquisition as a move to “accelerate this journey” in business payments. Brex, known for its corporate cards and expense-management software, sees the deal as a way to “supercharge our next chapter,” said CEO Pedro Franceschi. (SEC)
Capital One has found itself embroiled in Washington’s “debanking” controversy. The Trump Organization is suing the bank, claiming it shut down their accounts for political motives, Reuters reported. “Banks probably will be more cautious moving forward,” said Nicholas Anthony, a policy analyst at the Cato Institute. (Reuters)
The lawsuit comes as Trump has been taking a populist stance on credit costs. Earlier this month, he proposed a one-year cap of 10% on credit card interest rates but didn’t specify how it would be enforced. (Reuters)
Markets held steady or edged up Monday as investors eyed big tech earnings and the upcoming Fed meeting. Most expect the central bank to keep rates unchanged, though Powell’s comments and the statement’s tone could still shake consumer lenders. (Reuters)
Capital One is still working through last year’s deal activity. A regulatory filing reveals it finalized the acquisition of Discover Financial Services on May 18, 2025. (SEC)
The math gets tricky. Rising delinquencies could push provisions higher once more, and acquisitions add execution risk right when the cycle is shifting.
On Wednesday, Jan. 28, the Federal Reserve will announce its policy decision. Investors in Capital One will be watching closely for hints about the path of interest rates and how soon rising borrowing costs might impact the company’s card business. (Federal Reserve)
