Headline: Capital One Surpasses Q3 Forecasts with Surge in Credit Card Revenues

NEW YORK - Capital One Financial Corporation (NYSE:COF) reported that its third-quarter earnings easily surpassed analyst expectations, driven by strong growth in credit card revenue. The company's shares rose 3.2% in after-hours trading following the announcement.

The financial services giant reported adjusted earnings of $4.51 per share, significantly exceeding the consensus estimate of $3.77. Revenue came in at $10.01 billion, surpassing expectations of $9.87 billion.

Capital One's credit card division was the standout performer, with net income rising 9% year-over-year to $7.25 billion. The company observed a 5% increase in domestic credit card purchase volume, reaching $162.3 billion.

Founder, Chairman, and CEO Richard D. Fairbank stated, "Strong third-quarter results reflect robust growth in our domestic card and auto businesses, along with stable consumer credit outcomes."

Net interest income increased by 7% to $8.08 billion, benefiting from higher interest rates. The net interest margin expanded to 7.11% from 6.69% in the same period last year.

Provisions for credit losses fell 37% from the previous quarter to $2.48 billion, indicating an improvement in credit quality. The net charge-off rate decreased to 3.27% from 3.36% in the second quarter.

Capital One maintained a strong capital position with a Common Equity Tier 1 capital ratio of 13.6% at the end of the quarter.