John Heck's questions to CAPITAL ONE FINANCIAL (COF) leadership • Q3 2025
Question
John Heck with Jefferies asked about the step-function increase in the 'other expense' line item, inquiring if it included integration expenses and what primarily accounted for the change. He also asked for Capital One's opinion on the influence of private credit on consumer finance.
Answer
Andrew Young, Capital One's CFO, explained that the 'other expense' line item's lumpiness was due to three factors: the run rate of Discover's expenses categorized as 'other,' some integration expenses, and P&L-neutral geography changes related to business and reporting alignment. Richard Fairbank, Capital One's Chairman and CEO, acknowledged that private credit's energy has historically been commercial but noted they are watching its influence on the consumer side, particularly for installment loans and auto lending, while credit cards are less naturally suited.