Capital One Stock Surges on Plans to Acquire Discover Financial Services

Capital One Financial Corporation (COF) saw an uptick in its stock on Wednesday as the company expressed intentions to acquire Discover Financial Services (DFS). This move came after Discover reported better-than-expected second-quarter results. Discover’s shares also experienced a rise post its earnings announcement, surpassing the estimated GAAP earnings per share of $3.07 by reporting $6.06 per share, alongside a quarterly Net Interest Income of $3.524 billion.

In a bid to reinforce its commitment to serving the community, Capital One disclosed a comprehensive benefits plan worth over $265 billion in lending, investment, and philanthropy over the next five years as part of its proposed merger with Discover. This grand plan is deemed monumental as it is twice the size of any previous community commitment seen in connection with a bank acquisition, emphasizing the potential collaboration between Capital One and Discover in extending loans, investments, and services to underserved communities.

CEO of Capital One, Richard Fairbank, underscored the significance of financial inclusion and well-being for the company, emphasizing their historical dedication to innovative ways of addressing the needs of American consumers from diverse backgrounds. The positive reception to the news of the potential acquisition and Capital One’s ambitious community benefits plan was reflected in the stock price with Capital One’s shares increasing by 3.16% after-hours, settling at $154.20 at the time of publication.