Capital One auto originations up 8.5%

Capital One Auto Finance ’s originations rose year over year in the fourth quarter despite a downtick sequentially amid competition. The bank’s auto originations rose 8.5% YoY but declined 5% quarter over quarter to $10.2 billion in Q4, according to the Jan. 22 earnings supplement. Full-year originations landed at $41 billion, up 18.7% YoY. “Increased competitor activity in the quarter drove a slowdown in our originations growth, but we continue to be in a strong position to pursue resilient growth in the current marketplace,” Capital One Chief Executive Richard Fairbank said during today’s earnings call. Read more on Capital One’s auto initiatives. Outstandings clocked in at $83.6 billion, up 8.8% YoY and 1.9% QoQ, according to the supplement. Capital One was the fifth-largest auto lender by outstandings at yearend 2024, according to the latest Big Wheels Rankings Data . DQs down YoY Credit performance across auto finance improved YoY. Auto delinquencies of 30-plus days decreased 72 basis points (bps) YoY but rose 24 bps QoQ to 5.23%, according to the supplement. The auto net charge-off rate declined 50 bps YoY to 1.82%, up 28 bps QoQ. Sequential upticks in auto delinquencies and net charge-offs were largely due to seasonality, Fairbank said. “Auto charge-offs have been stable near pre-pandemic levels for the past year,” he said. “Both auto and card are benefited by choices we made several years ago to normalize for the great inflation in credit scores that I think has been a surprise to the industry.” The bank’s allowance for auto loan losses totaled $1.9 billion, or a coverage ratio of 2.2%, up 20 bps YoY but down 10 bps QoQ, according to an Auto Finance News analysis of the supplement. Larger tax refunds due to tax cuts introduced as part of the One Big Beautiful Bill Act that went into effect last summer could lead to a short-term improvement in consumer credit health, Fairbank said. “Tax refunds are an important driver of the seasonal improvements in delinquent payments that we see around March and April of each year in both card and auto,” he said. “All else equal, higher tax refunds will likely be good for consumer credit, ... especially when they are higher than consumers expect. But we believe that this will probably be a one-time benefit because tax withholdings will be lower in 2026. We won't see another round of higher refunds in 2027.” Brex acquisition Meanwhile, Capital One announced on Jan. 22 an agreement to acquire AI software platform Brex. The fintech offers financial services solutions to improve business operations such as issuing corporate cards, automating expense management and making real-time payments, according to a bank release. The $5.15 billion cash and stock transaction is expected to close by mid-year. Brex founder and CEO Pedro Franceschi will continue to lead the fintech as part of Capital One. “Capital One's balance sheet, which is primarily funded by federally insured retail deposits, is another enabler of growth, returns and resilience for Brex,” Fairbank said, noting that the acquisition provides growth and enhancement opportunities for the bank as well. “Brex opens up the opportunity in the corporate liability part of the marketplace where our presence is currently much smaller than it is in the personal liability space,” he said. “Additionally, Capital One can leverage Brex's spend management tools to broaden and enhance our offerings for our existing personal liability card customers.” Shares of Capital One Financial Corp. [NYSE: COF] were down 7.3% from market open to $218.13 as of 1:28 p.m. ET today. Shares were down 7.6% as of market close today to $217.30. Capital One has a market capitalization of $138.1 billion. Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live .

Capital One auto originations up 8.5%

Auto 30-plus-day delinquencies fell 72 bps YoY

Affordability challenges may spur buy here, pay here growth

Nonprime securitized auto loan delinquencies reach highest level in 7 years

Related Posts

Thor Industries incentives drop 2.7% YoY

BRP cuts FY27 guidance by 46% as tariffs pressure margins

RideNow’s F&I revenue up 3.3% in Q1

Pagaya auto run rate up 109% YoY

Nonprime securitized auto loan delinquencies reach highest level in 7 years

Stay Informed with Our Newsletters

The Roadmap Podcast

SPONSORED

Why credit unions give dealers an edge in today’s auto market

Driving better decision-making across auto finance operations with SAS

Auto finance’s first line of defense: Raising the standard in integrated software partnerships and data strategy

Retrieve your password