Profits Surge on Interest Income
The acquisition news landed alongside a strong earnings report. Capital One’s net interest income — what it earns on loans minus what it pays on deposits — surged 54% to $12.47 billion in the fourth quarter from a year earlier.
Net income available to common shareholders doubled to $2.06 billion, or $3.26 per share, up from $1.02 billion, or $2.67 per share, a year earlier. The McLean, Virginia-based lender benefited from higher yields on credit card debt as U.S. consumers continued to spend.
Consumer Spending Holds, But Pressure Builds
U.S. consumer spending remained solid in October and November, keeping the economy on track for a third straight quarter of strong growth. That momentum has been supported by resilient household demand and a narrowing trade deficit, as imports fell following President Donald Trump’s sweeping tariff increases.
Yet those same tariffs have pushed up prices, hitting households unevenly. Economists say spending strength is increasingly concentrated among higher-income consumers, while lower- and middle-income families have fewer options to trade down to cheaper goods.
