Capital One and Discover Report Strong Profits as Merger Nears Completion

Both lenders cite improved credit trends and robust consumer spending, with Discover's acquisition set to create a major U.S. credit card player.

Discover Financial's fourth-quarter profit more than tripled, driven by lower provisions for credit losses and higher interest income.
Capital One reported a 60% increase in fourth-quarter profit, supported by strong consumer spending and a rise in net interest income.
Capital One's $35.3 billion acquisition of Discover, which would form the sixth-largest U.S. bank by assets, is awaiting regulatory approval with shareholder votes scheduled for February 18.
Both companies highlighted stabilization in credit metrics, with Capital One noting improvements in delinquency rates and continued growth in its card and auto lending businesses.
Discover and Capital One emphasized the resilience of U.S. consumers, though caution remains regarding inflation-related pressures and minimum payment trends.