Capital One Announces $16 Billion Stock Buyback Following Strong Q3 Earnings

Capital One Financial Corp. unveiled plans to repurchase up to $16 billion in shares after posting an 80% surge in third-quarter net income to $3.19 billion. Adjusted earnings per share reached $5.95, significantly surpassing the $4.39 analyst estimate. The bank's performance was buoyed by its integration with Discover Financial Services, which contributed to robust credit results and top-line growth.

CEO Richard Fairbank highlighted Discover's purchase volume as a key driver, noting the acquisition expanded net interest margin by 45 basis points in Q3. The bank's net interest margin now stands at 8.36%, reflecting a 74-basis-point increase from the previous quarter. Capital One shares have gained 22% year-to-date.

The McLean-based company plans to increase its quarterly common stock dividend to $0.08 per share from $0.60, pending board approval. "Our strong capital generation positions us to deliver enhanced shareholder returns," Fairbank stated, emphasizing the bank's strategic advantages from the Discover integration.