Capital One’s fourth-quarter earnings per share missed estimates due to higher expenses, causing shares to dip. Revenue increased 53% year over year to $15.62 billion, beating analyst estimates. Despite missing earnings, credit metrics remain solid, and the company made progress on its $35 billion Discover acquisition. Capital One also announced a $5.15 billion deal to acquire fintech company Brex. The company expressed concerns about President Trump’s proposed credit card interest rate cap, but remains optimistic about its long-term prospects. Shares are down about 3% in after-hours trading, but the long-term thesis remains intact with potential for a higher price target.

The Discover integration is progressing well, with expected net operational efficiencies of $2.5 billion. Capital One also announced the acquisition of Brex for $5.15 billion, enhancing its presence in the corporate-card market and strengthening its business model. The deal is expected to close in the middle of the year and bring new growth opportunities. Capital One is leveraging Brex’s spend management tools to enhance its personal and small-business offerings. The deal carries $950 million in transaction-related costs but won’t impact the Discover integration or expected value creation.

Capital One’s credit metrics remained solid, with a reserve build of $302 million in the quarter. Domestic card charge-off rates increased slightly due to seasonal factors. Auto net charge-offs were down year over year and in line with expected seasonality. Capital One increased share repurchases, buying 11.4 million shares for $2.5 billion in the fourth quarter. The company reaffirmed its commitment to buybacks despite the Brex deal.

Read more at CNBC: Capital One’s mixed quarter doesn’t change our view on its budding transformation