Capital One

Revenue is predominantly interest income from revolving card loans, which is inherently cyclical. Q2 2025’s 7.9 billion reserve build driving a quarterly loss, followed by Q3 2025 improvement and reserve release, illustrates sensitivity to credit assumptions and macro conditions.

The Discover network adds a more stable fee component, but lending still dominates earnings. Geographic concentration in the U.S. reduces currency risk but concentrates regulatory and macro exposure. We expect steady long-term growth but with meaningful volatility through credit cycles.