Shares of the large lender Capital One (COF 4.64%) were trading nearly 5% higher at noon today. The company reported its first-quarter earnings results after the market closed yesterday, delivering an earnings beat but a slight miss on revenue.

Solid earnings and merger approval

Capital One reported adjusted earnings per share of $4.06, well ahead of analyst estimates. However, revenue of $10 billion came up slightly short of estimates. Meanwhile, credit metrics held up well, with expected loan losses and 30-plus-day delinquencies falling from the previous quarter.

Furthermore, Capital One recently received regulatory approval for its pending acquisition of Discover Financial Services. The acquisition will add a highly coveted payments arm to Capital One's repertoire while also bringing over a large consumer lending portfolio that will pair nicely with Capital One's current business.

On the earnings call, Capital One's CEO Richard Fairbank said the company expects to achieve the $2.7 billion of network and cost synergies it laid out when initially announcing the acquisition, which is now expected to close on May 18.

Gaining a significant moat

Overall, Capital One's earnings came in solid. While the company is certainly vulnerable to an economic downturn, management is experienced and knows how to navigate choppy waters.

Closing the Discover deal and adding a global payments network is a significant achievement for Capital One. It also makes the company that much more of a compelling buy because there aren't that many companies that can run a payments business at global scale, and this performance won't be easy for competitors to replicate.