05:10 PM EDT, 07/22/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

COF posted strong Q2 2025 results, with operating EPS of $5.48 vs $3.14 the prior year, beating consensus by $1.76, though revenue of $12.5B missed estimates by 3%. Results were significantly affected by the Discover acquisition, which closed May 18 for $51.8B in an all-stock transaction. The acquisition drove substantial growth, with period-end loans surging 36% Y/Y to $439B and deposits rising 27% Y/Y to $468B, contributing to 32% Y/Y net interest income growth to $10.0B and 69 bps NIM of sequential expansion to 7.62%. COF's allowance coverage ratio increased to 5.43% from 4.91% in Q1, largely due to the acquisition. Capital remained strong, with its CET1 ratio improving 40 bps Q/Q to 14.0% and liquidity coverage ratio at 157%. We believe COF is well positioned to leverage its expanded scale and network following the Discover acquisition, with integration and synergy realization being key focus areas as the company capitalizes on its strengthened market position in credit cards and payment networks.