Provision for Credit Losses
Capital One Financial Provision for Credit Losses increased by 52.6% to $4.14B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 56.8%, from $2.64B to $4.14B. Over 3 years (FY 2022 to FY 2025), Provision for Credit Losses shows an upward trend with a 52.3% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase suggests management expects higher default rates or a deteriorating credit environment, while a decrease suggests improved borrower quality.
Detailed definition
This represents the non-cash expense set aside by a financial institution to cover potential losses from loans or credit...
Peer comparison
Common in banking and credit card issuers; peers adjust this based on macroeconomic forecasts and portfolio seasoning.
cf_provision_for_credit_lossesHistorical Data
| Q2 '21 | Q3 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | -$1.16B | -$342.00M | $677.00M | $1.09B | $1.67B | $2.42B | $2.80B | $2.49B | $2.28B | $2.86B | $2.68B | $3.91B | $2.48B | $2.64B | $2.37B | $11.43B | $2.71B | $4.14B |
| QoQ Change | — | +70.5% | +298.0% | +60.3% | +53.8% | +44.8% | +15.7% | -10.9% | -8.3% | +25.1% | -6.1% | +45.7% | -36.5% | +6.4% | -10.3% | +382.5% | -76.3% | +52.6% |
| YoY Change | — | — | — | +193.5% | +588.0% | — | +312.9% | +129.5% | +36.8% | +18.3% | -4.0% | +57.0% | +8.7% | -7.5% | -11.7% | +192.4% | +9.3% | +56.8% |
Provision for Credit Losses at Other Companies
Frequently Asked Questions
- What is Capital One Financial's provision for credit losses?
- Capital One Financial (COF) reported provision for credit losses of $4.14B in Q4 2025.
- How has Capital One Financial's provision for credit losses changed year-over-year?
- Capital One Financial's provision for credit losses increased by 56.8% year-over-year, from $2.64B to $4.14B.
- What is the long-term trend for Capital One Financial's provision for credit losses?
- Over 3 years (2022 to 2025), Capital One Financial's provision for credit losses has grown at a 52.3% compound annual growth rate (CAGR), from $5.85B to $20.66B.
- What does provision for credit losses mean?
- The amount of money a lender sets aside to cover expected losses from unpaid debts.