Capital One books $8bn in reserves post Discover deal
Highest provision in over a decade behind first loss since Covid-19
Capital One recorded a net loss of $4.3 billion in the second quarter, its first since the Covid-19 pandemic, after booking $11.4 billion in provisions for credit losses – its highest level since at least 2013. The sharp rise followed its acquisition of Discover Financial, completed on May 18.
The bulk of provision stemmed from an initial $8.8 billion allowance for loans that had not deteriorated
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