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Shares of the consumer lender fell more than 5% following the announcement of the deal, but robust results helped them pare losses to trade 1.5% lower.
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The move comes as dealmakers prepare for another strong year in 2026, with a record slate of transactions expected as executives pursue scale to navigate rising economic and geopolitical uncertainties.
The deal, which is expected to close in mid‑2026, will be carried out on an approximate 50-50 cash-stock basis, Capital One said.
Brex operates in more than 120 countries according to its website.
Capital One said the fintech firm’s chief executive and founder, Pedro Franceschi, will remain at the helm following the transaction.
FOURTH-QUARTER EARNINGS
Economic momentum has been underpinned largely by resilient household demand as well as a narrowing trade deficit, with imports declining in response to President Donald Trump’s broad tariff increases.
However, the tariffs have pushed up the prices of many goods, weighing unevenly across income groups.
Economists say spending strength is increasingly concentrated among higher-income households, while lower- and middle-income consumers have limited scope to switch to cheaper alternatives.
Capital One’s net interest income — the difference between what it makes on loans and pays out on deposits — rose 54% to $12.47 billion in the fourth quarter from a year ago.
The McLean, Virginia-based company’s net income available to common stockholders came in at $2.06 billion, or $3.26 per share, for the quarter, compared with $1.02 billion, or $2.67 per share, a year earlier.
CREDIT CARD CAP CONUNDRUM
Banking industry groups have pushed back against the proposal, warning it would restrict the availability of credit for everyday consumers.
The introduction of an interest rate cap would deal a significant blow to Capital One Financial, which has one of the most credit-card‑dependent business models among major U.S. lenders.
“We feel strongly that a cap on interest rates would catalyze a number of unintended consequences,” CEO Richard Fairbank said in a call with analysts.
He added that lack of credit would result in reduced consumer spending and likely bring on a recession.
Reporting by Pritam Biswas in Bengaluru; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles.
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