Capital One Reports Second Quarter 2024 Net Income of $597 Million, or $1.38 Per Share

Net of adjusting items, Second Quarter 2024 Net Income of $3.14 per share(1)

Capital One Financial Corporation (NYSE: COF) today announced net income for the second quarter of 2024 of $597 million, or $1.38 per diluted common share, compared with net income of $1.3 billion, or $3.13 per diluted common share in the first quarter of 2024, and with net income of $1.4 billion, or $3.52 per diluted common share in the second quarter of 2023. Adjusted net income(1) for the second quarter of 2024 was $3.14 per diluted common share.

"We posted strong second quarter results while continuing to lean into opportunities to grow and further strengthen our domestic card and national consumer banking franchises," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "And we’re “all in” and working hard to complete the Discover acquisition, which will create a consumer banking and global payments platform with the potential to enhance competition, deliver compelling financial results, and create significant value for merchants, small businesses, and consumers."

The quarter included the following adjusting items:

Pre-Tax

After-Tax

Diluted EPS

(Dollars in millions, except per share data)

Impact

Impact

Allowance build for Walmart program agreement loss sharing termination

$

826

$

1.63

Walmart program agreement termination contra revenue impact

$

27

$

0.05

Discover integration expenses

$

31

$

0.06

FDIC special assessment

$

8

$

0.02

All comparisons below are for the second quarter of 2024 compared with the first quarter of 2024 unless otherwise noted.

Second Quarter 2024 Income Statement Summary:

  • Total net revenue increased 1 percent to $9.5 billion.
  • Total non-interest expense decreased 4 percent to $4.9 billion:
    • 5 percent increase in marketing.
    • 6 percent decrease in operating expenses.
  • Pre-provision earnings(2) increased 7 percent to $4.6 billion.
  • Provision for credit losses increased $1.2 billion to $3.9 billion:
    • Net charge-offs of $2.6 billion.
    • $1.3 billion loan reserve build.
  • Net interest margin of 6.70 percent, an increase of 1 basis point.
  • Efficiency ratio of 52.03 percent.
    • Adjusted efficiency ratio(1) of 51.47 percent.
  • Operating efficiency ratio of 40.84 percent.
    • Adjusted operating efficiency ratio(1) of 40.31 percent.

Second Quarter 2024 Balance Sheet Summary:

  • Common equity Tier 1 capital ratio(3) under Basel III Standardized Approach of 13.2 percent at June 30, 2024.
  • Period-end loans held for investment in the quarter increased $3.0 billion, or 1 percent, to $318.2 billion.
    • Credit Card period-end loans increased $3.3 billion, or 2 percent, to $153.9 billion.
      • Domestic Card period-end loans increased $3.2 billion, or 2 percent, to $147.1 billion.
    • Consumer Banking period-end loans increased $564 million, or 1 percent, to $75.7 billion.
      • Auto period-end loans increased $584 million, or 1 percent, to $74.4 billion.
    • Commercial Banking period-end loans decreased $833 million, or 1 percent, to $88.6 billion.
  • Average loans held for investment in the quarter increased $274 million, or less than 1 percent, to $314.9 billion.
    • Credit Card average loans increased $822 million, or 1 percent, to $150.5 billion.
      • Domestic Card average loans increased $857 million, or 1 percent, to $143.7 billion.
    • Consumer Banking average loans increased $294 million, or less than 1 percent, to $75.4 billion.
      • Auto average loans increased $330 million, or less than 1% percent, to $74.1 billion.
    • Commercial Banking average loans decreased $842 million, or 1 percent, to $89.0 billion.
  • Period-end total deposits increased $473 million, or less than 1 percent, to $351.4 billion, while average deposits increased $3.8 billion, or 1 percent, to $349.5 billion.
  • Interest-bearing deposits rate paid increased 3 basis points to 3.56 percent.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on July 23, 2024 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company’s website through August 6, 2024 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Forward-looking statements often use words such as “will,” “anticipate,” “target,” “expect,” “think,” “estimate,” “intend,” “plan,” “goal,” “believe,” “forecast,” “outlook” or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under “Part I—Item 1A. Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $351.4 billion in deposits and $480.0 billion in total assets as of June 30, 2024. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

(1) This is a non-GAAP measure. We believe non-GAAP measures help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on July 23, 2024 with the SEC, “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.

(2) Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on July 23, 2024 with the SEC, “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.

(3) Regulatory capital metrics as of June 30, 2024 are preliminary and therefore subject to change.

 

Capital One Financial Corporation

Financial Supplement(1)(2)

Second Quarter 2024

Table of Contents

Capital One Financial Corporation Consolidated Results

Page

 

Table 1:

Financial Summary—Consolidated

1

 

Table 2:

Selected Metrics—Consolidated

3

 

Table 3:

Consolidated Statements of Income

4

 

Table 4:

Consolidated Balance Sheets

6

 

Table 5:

Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

8

 

Table 6:

Average Balances, Net Interest Income and Net Interest Margin

9

 

Table 7:

Loan Information and Performance Statistics

10

 

Table 8:

Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

12

Business Segment Results

 

 

Table 9:

Financial Summary—Business Segment Results

13

 

Table 10:

Financial & Statistical Summary—Credit Card Business

14

 

Table 11:

Financial & Statistical Summary—Consumer Banking Business

16

 

Table 12:

Financial & Statistical Summary—Commercial Banking Business

17

 

Table 13:

Financial & Statistical Summary—Other and Total

18

Other

 

 

Table 14:

Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)

19

 

Table 15:

Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures

20

____________
(1)

The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended June 30, 2024 once it is filed with the Securities and Exchange Commission.

(2)

This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation of any non-GAAP financial measures.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

2024 Q2

 

Six Months Ended June 30,

(Dollars in millions, except per share data and as noted)

 

2024

 

2024

 

2023

 

2023

 

2023

 

2024

 

2023

 

 

 

 

 

2024 vs.

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

Q2

 

2024

 

2023

 

2023

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

7,546

 

 

$

7,488

 

 

$

7,519

 

 

$

7,423

 

 

$

7,113

 

 

1

%

 

6

%

 

$

15,034

 

 

$

14,299

 

 

5

%

Non-interest income

 

 

1,960

 

 

 

1,914

 

 

 

1,987

 

 

 

1,943

 

 

 

1,899

 

 

2

 

 

3

 

 

 

3,874

 

 

 

3,616

 

 

7

 

Total net revenue(1)

 

 

9,506

 

 

 

9,402

 

 

 

9,506

 

 

 

9,366

 

 

 

9,012

 

 

1

 

 

5

 

 

 

18,908

 

 

 

17,915

 

 

6

 

Provision for credit losses

 

 

3,909

 

 

 

2,683

 

 

 

2,857

 

 

 

2,284

 

 

 

2,490

 

 

46

 

 

57

 

 

 

6,592

 

 

 

5,285

 

 

25

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing

 

 

1,064

 

 

 

1,010

 

 

 

1,254

 

 

 

972

 

 

 

886

 

 

5

 

 

20

 

 

 

2,074

 

 

 

1,783

 

 

16

 

Operating expense

 

 

3,882

 

 

 

4,127

 

 

 

4,463

 

 

 

3,888

 

 

 

3,908

 

 

(6

)

 

(1

)

 

 

8,009

 

 

 

7,956

 

 

1

 

Total non-interest expense

 

 

4,946

 

 

 

5,137

 

 

 

5,717

 

 

 

4,860

 

 

 

4,794

 

 

(4

)

 

3

 

 

 

10,083

 

 

 

9,739

 

 

4

 

Income from continuing operations before income taxes

 

 

651

 

 

 

1,582

 

 

 

932

 

 

 

2,222

 

 

 

1,728

 

 

(59

)

 

(62

)

 

 

2,233

 

 

 

2,891

 

 

(23

)

Income tax provision

 

 

54

 

 

 

302

 

 

 

226

 

 

 

432

 

 

 

297

 

 

(82

)

 

(82

)

 

 

356

 

 

 

500

 

 

(29

)

Net income

 

 

597

 

 

 

1,280

 

 

 

706

 

 

 

1,790

 

 

 

1,431

 

 

(53

)

 

(58

)

 

 

1,877

 

 

 

2,391

 

 

(21

)

Dividends and undistributed earnings allocated to participating securities(2)

 

 

(9

)

 

 

(23

)

 

 

(10

)

 

 

(28

)

 

 

(23

)

 

(61

)

 

(61

)

 

 

(32

)

 

 

(39

)

 

(18

)

Preferred stock dividends

 

 

(57

)

 

 

(57

)

 

 

(57

)

 

 

(57

)

 

 

(57

)

 

 

 

 

 

 

(114

)

 

 

(114

)

 

 

Net income available to common stockholders

 

$

531

 

 

$

1,200

 

 

$

639

 

 

$

1,705

 

 

$

1,351

 

 

(56

)

 

(61

)

 

$

1,731

 

 

$

2,238

 

 

(23

)

Common Share Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per basic common share

 

$

1.39

 

 

$

3.14

 

 

$

1.67

 

 

$

4.46

 

 

$

3.53

 

 

(56

)%

 

(61

)%

 

$

4.52

 

 

$

5.85

 

 

(23

)%

Diluted earnings per common share:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted common share

 

$

1.38

 

 

$

3.13

 

 

$

1.67

 

 

$

4.45

 

 

$

3.52

 

 

(56

)%

 

(61

)%

 

$

4.51

 

 

$

5.83

 

 

(23

)%

Weighted-average common shares outstanding (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

383.1

 

 

 

382.2

 

 

 

381.9

 

 

 

382.5

 

 

 

382.8

 

 

 

 

 

 

 

382.7

 

 

 

382.7

 

 

 

Diluted

 

 

383.9

 

 

 

383.4

 

 

 

382.8

 

 

 

383.3

 

 

 

383.7

 

 

 

 

 

 

 

383.7

 

 

 

383.8

 

 

 

Common shares outstanding (period-end, in millions)

 

 

381.9

 

 

 

382.1

 

 

 

380.4

 

 

 

381.0

 

 

 

381.4

 

 

 

 

 

 

 

381.9

 

 

 

381.4

 

 

 

Dividends declared and paid per common share

 

$

0.60

 

 

$

0.60

 

 

$

0.60

 

 

$

0.60

 

 

$

0.60

 

 

 

 

 

 

$

1.20

 

 

$

1.20

 

 

 

Tangible book value per common share (period-end)(3)

 

 

99.28

 

 

 

98.67

 

 

 

99.78

 

 

 

87.97

 

 

 

90.07

 

 

1

%

 

10

%

 

 

99.28

 

 

 

90.07

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

2024 Q2

 

Six Months Ended June 30,

(Dollars in millions)

 

2024

 

2024

 

2023

 

2023

 

2023

 

2024

 

2023

 

 

 

 

 

2024 vs.

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

Q2

 

2024

 

2023

 

2023

Balance Sheet (Period-End)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment

 

$

318,186

 

$

315,154

 

$

320,472

 

$

314,780

 

$

311,323

 

1

%

 

2

%

 

$

318,186

 

$

311,323

 

2

%

Interest-earning assets

 

 

452,547

 

 

453,557

 

 

449,701

 

 

445,428

 

 

441,250

 

 

 

3

 

 

 

452,547

 

 

441,250

 

3

 

Total assets

 

 

480,018

 

 

481,720

 

 

478,464

 

 

471,435

 

 

467,800

 

 

 

3

 

 

 

480,018

 

 

467,800

 

3

 

Interest-bearing deposits

 

 

324,437

 

 

323,352

 

 

320,389

 

 

317,217

 

 

314,393

 

 

 

3

 

 

 

324,437

 

 

314,393

 

3

 

Total deposits

 

 

351,442

 

 

350,969

 

 

348,413

 

 

346,011

 

 

343,705

 

 

 

2

 

 

 

351,442

 

 

343,705

 

2

 

Borrowings

 

 

47,956

 

 

50,361

 

 

49,856

 

 

49,247

 

 

50,258

 

(5

)

 

(5

)

 

 

47,956

 

 

50,258

 

(5

)

Common equity

 

 

53,135

 

 

52,955

 

 

53,244

 

 

48,823

 

 

49,713

 

 

 

7

 

 

 

53,135

 

 

49,713

 

7

 

Total stockholders’ equity

 

 

57,981

 

 

57,801

 

 

58,089

 

 

53,668

 

 

54,559

 

 

 

6

 

 

 

57,981

 

 

54,559

 

6

 

Balance Sheet (Average Balances)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment

 

$

314,888

 

$

314,614

 

$

315,890

 

$

312,759

 

$

309,655

 

 

 

2

%

 

$

314,751

 

$

308,711

 

2

%

Interest-earning assets

 

 

450,908

 

 

447,803

 

 

446,929

 

 

443,532

 

 

439,139

 

1

%

 

3

 

 

 

449,356

 

 

437,180

 

3

 

Total assets

 

 

477,285

 

 

474,995

 

 

472,594

 

 

469,860

 

 

466,652

 

 

 

2

 

 

 

476,140

 

 

464,459

 

3

 

Interest-bearing deposits

 

 

322,581

 

 

318,450

 

 

316,808

 

 

316,032

 

 

313,207

 

1

 

 

3

 

 

 

320,515

 

 

311,010

 

3

 

Total deposits

 

 

349,488

 

 

345,657

 

 

345,328

 

 

345,013

 

 

343,678

 

1

 

 

2

 

 

 

347,572

 

 

341,910

 

2

 

Borrowings

 

 

48,842

 

 

50,474

 

 

51,070

 

 

49,736

 

 

48,468

 

(3

)

 

1

 

 

 

49,658

 

 

48,243

 

3

 

Common equity

 

 

53,262

 

 

53,152

 

 

50,786

 

 

50,166

 

 

50,511

 

 

 

5

 

 

 

53,207

 

 

50,221

 

6

 

Total stockholders’ equity

 

 

58,107

 

 

57,998

 

 

55,632

 

 

55,012

 

 

55,357

 

 

 

5

 

 

 

58,052

 

 

55,066

 

5

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 Q2

 

Six Months Ended June 30,

(Dollars in millions, except as noted)

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

2024

 

2023

 

 

 

 

 

2024 vs.

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

Q2

 

 

2024

 

 

 

2023

 

 

2023

Performance Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income growth (period over period)

 

 

1

%

 

 

 

 

 

1

%

 

 

4

%

 

 

(1

)%

 

**

 

**

 

 

5

%

 

 

11

%

 

**

Non-interest income growth (period over period)

 

 

2

 

 

 

(4

)%

 

 

2

 

 

 

2

 

 

 

11

 

 

**

 

**

 

 

7

 

 

 

4

 

 

**

Total net revenue growth (period over period)

 

 

1

 

 

 

(1

)

 

 

1

 

 

 

4

 

 

 

1

 

 

**

 

**

 

 

6

 

 

 

9

 

 

**

Total net revenue margin(4)

 

 

8.43

 

 

 

8.40

 

 

 

8.51

 

 

 

8.45

 

 

 

8.21

 

 

3

bps

 

22

bps

 

 

8.42

 

 

 

8.20

 

 

22

bps

Net interest margin(5)

 

 

6.70

 

 

 

6.69

 

 

 

6.73

 

 

 

6.69

 

 

 

6.48

 

 

1

 

 

22

 

 

 

6.69

 

 

 

6.54

 

 

15

 

Return on average assets

 

 

0.50

 

 

 

1.08

 

 

 

0.60

 

 

 

1.52

 

 

 

1.23

 

 

(58

)

 

(73

)

 

 

0.79

 

 

 

1.03

 

 

(24

)

Return on average tangible assets(6)

 

 

0.52

 

 

 

1.11

 

 

 

0.62

 

 

 

1.58

 

 

 

1.27

 

 

(59

)

 

(75

)

 

 

0.81

 

 

 

1.06

 

 

(25

)

Return on average common equity(7)

 

 

3.99

 

 

 

9.03

 

 

 

5.03

 

 

 

13.59

 

 

 

10.70

 

 

(504

)

 

(671

)

 

 

6.51

 

 

 

8.91

 

 

(240

)

Return on average tangible common equity(8)

 

 

5.59

 

 

 

12.67

 

 

 

7.20

 

 

 

19.59

 

 

 

15.30

 

 

(708

)

 

(971

)

 

 

9.12

 

 

 

12.74

 

 

(362

)

Efficiency ratio(9)

 

 

52.03

 

 

 

54.64

 

 

 

60.14

 

 

 

51.89

 

 

 

53.20

 

 

(261

)

 

(117

)

 

 

53.33

 

 

 

54.36

 

 

(103

)

Operating efficiency ratio(10)

 

 

40.84

 

 

 

43.89

 

 

 

46.95

 

 

 

41.51

 

 

 

43.36

 

 

(305

)

 

(252

)

 

 

42.36

 

 

 

44.41

 

 

(205

)

Effective income tax rate for continuing operations

 

 

8.3

 

 

 

19.1

 

 

 

24.2

 

 

 

19.4

 

 

 

17.2

 

 

(1,080

)

 

(890

)

 

 

15.9

 

 

 

17.3

 

 

(140

)

Employees (period-end, in thousands)

 

 

52.1

 

 

 

51.3

 

 

 

52.0

 

 

 

54.2

 

 

 

55.6

 

 

2

%

 

(6

)%

 

 

52.1

 

 

 

55.6

 

 

(6

)%

Credit Quality Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

$

16,649

 

 

$

15,380

 

 

$

15,296

 

 

$

14,955

 

 

$

14,646

 

 

8

%

 

14

%

 

$

16,649

 

 

$

14,646

 

 

14

%

Allowance coverage ratio

 

 

5.23

%

 

 

4.88

%

 

 

4.77

%

 

 

4.75

%

 

 

4.70

%

 

35

bps

 

53

bps

 

 

5.23

%

 

 

4.70

%

 

53

bps

Net charge-offs

 

$

2,644

 

 

$

2,616

 

 

$

2,533

 

 

$

1,999

 

 

$

2,185

 

 

1

%

 

21

%

 

$

5,260

 

 

$

3,882

 

 

35

%

Net charge-off rate(11)

 

 

3.36

%

 

 

3.33

%

 

 

3.21

%

 

 

2.56

%

 

 

2.82

%

 

3

bps

 

54

bps

 

 

3.34

%

 

 

2.52

%

 

82

bps

30+ day performing delinquency rate

 

 

3.36

 

 

 

3.40

 

 

 

3.71

 

 

 

3.42

 

 

 

3.08

 

 

(4

)

 

28

 

 

 

3.36

 

 

 

3.08

 

 

28

 

30+ day delinquency rate

 

 

3.63

 

 

 

3.67

 

 

 

3.99

 

 

 

3.71

 

 

 

3.36

 

 

(4

)

 

27

 

 

 

3.63

 

 

 

3.36

 

 

27

 

Capital Ratios(12)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital

 

 

13.2

%

 

 

13.1

%

 

 

12.9

%

 

 

13.0

%

 

 

12.7

%

 

10

bps

 

50

bps

 

 

13.2

%

 

 

12.7

%

 

50

bps

Tier 1 capital

 

 

14.5

 

 

 

14.4

 

 

 

14.2

 

 

 

14.3

 

 

 

14.0

 

 

10

 

 

50

 

 

 

14.5

 

 

 

14.0

 

 

50

 

Total capital

 

 

16.3

 

 

 

16.3

 

 

 

16.0

 

 

 

16.2

 

 

 

16.0

 

 

 

 

30

 

 

 

16.3

 

 

 

16.0

 

 

30

 

Tier 1 leverage

 

 

11.3

 

 

 

11.3

 

 

 

11.2

 

 

 

11.2

 

 

 

11.0

 

 

 

 

30

 

 

 

11.3

 

 

 

11.0

 

 

30

 

Tangible common equity (“TCE”)(13)

 

 

8.2

 

 

 

8.1

 

 

 

8.2

 

 

 

7.3

 

 

 

7.6

 

 

10

 

 

60

 

 

 

8.2

 

 

 

7.6

 

 

60

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 Q2

 

Six Months Ended June 30,

(Dollars in millions, except as noted)

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

2024

 

2023

 

 

 

 

 

2024 vs.

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

Q2

 

 

2024

 

 

 

2023

 

 

2023

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including loans held for sale

 

$

9,993

 

 

$

9,920

 

 

$

9,934

 

 

$

9,696

 

 

$

9,057

 

 

1

%

 

10

%

 

$

19,913

 

 

$

17,780

 

 

12

%

Investment securities

 

 

700

 

 

 

687

 

 

 

669

 

 

 

627

 

 

 

639

 

 

2

 

 

10

 

 

 

1,387

 

 

 

1,254

 

 

11

 

Other

 

 

587

 

 

 

570

 

 

 

542

 

 

 

550

 

 

 

470

 

 

3

 

 

25

 

 

 

1,157

 

 

 

886

 

 

31

 

Total interest income

 

 

11,280

 

 

 

11,177

 

 

 

11,145

 

 

 

10,873

 

 

 

10,166

 

 

1

 

 

11

 

 

 

22,457

 

 

 

19,920

 

 

13

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,874

 

 

 

2,812

 

 

 

2,745

 

 

 

2,611

 

 

 

2,277

 

 

2

 

 

26

 

 

 

5,686

 

 

 

4,133

 

 

38

 

Securitized debt obligations

 

 

258

 

 

 

261

 

 

 

263

 

 

 

249

 

 

 

236

 

 

(1

)

 

9

 

 

 

519

 

 

 

447

 

 

16

 

Senior and subordinated notes

 

 

591

 

 

 

606

 

 

 

608

 

 

 

579

 

 

 

528

 

 

(2

)

 

12

 

 

 

1,197

 

 

 

1,017

 

 

18

 

Other borrowings

 

 

11

 

 

 

10

 

 

 

10

 

 

 

11

 

 

 

12

 

 

10

 

 

(8

)

 

 

21

 

 

 

24

 

 

(13

)

Total interest expense

 

 

3,734

 

 

 

3,689

 

 

 

3,626

 

 

 

3,450

 

 

 

3,053

 

 

1

 

 

22

 

 

 

7,423

 

 

 

5,621

 

 

32

 

Net interest income

 

 

7,546

 

 

 

7,488

 

 

 

7,519

 

 

 

7,423

 

 

 

7,113

 

 

1

 

 

6

 

 

 

15,034

 

 

 

14,299

 

 

5

 

Provision for credit losses

 

 

3,909

 

 

 

2,683

 

 

 

2,857

 

 

 

2,284

 

 

 

2,490

 

 

46

 

 

57

 

 

 

6,592

 

 

 

5,285

 

 

25

 

Net interest income after provision for credit losses

 

 

3,637

 

 

 

4,805

 

 

 

4,662

 

 

 

5,139

 

 

 

4,623

 

 

(24

)

 

(21

)

 

 

8,442

 

 

 

9,014

 

 

(6

)

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interchange fees, net

 

 

1,249

 

 

 

1,145

 

 

 

1,207

 

 

 

1,234

 

 

 

1,213

 

 

9

 

 

3

 

 

 

2,394

 

 

 

2,352

 

 

2

 

Service charges and other customer-related fees

 

 

459

 

 

 

462

 

 

 

424

 

 

 

453

 

 

 

411

 

 

(1

)

 

12

 

 

 

921

 

 

 

790

 

 

17

 

Net securities gains (losses)

 

 

 

 

 

 

 

 

(34

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

252

 

 

 

307

 

 

 

390

 

 

 

256

 

 

 

275

 

 

(18

)

 

(8

)

 

 

559

 

 

 

474

 

 

18

 

Total non-interest income

 

 

1,960

 

 

 

1,914

 

 

 

1,987

 

 

 

1,943

 

 

 

1,899

 

 

2

 

 

3

 

 

 

3,874

 

 

 

3,616

 

 

7

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and associate benefits

 

 

2,200

 

 

 

2,478

 

 

 

2,284

 

 

 

2,274

 

 

 

2,317

 

 

(11

)

 

(5

)

 

 

4,678

 

 

 

4,744

 

 

(1

)

Occupancy and equipment

 

 

551

 

 

 

554

 

 

 

628

 

 

 

518

 

 

 

506

 

 

(1

)

 

9

 

 

 

1,105

 

 

 

1,014

 

 

9

 

Marketing

 

 

1,064

 

 

 

1,010

 

 

 

1,254

 

 

 

972

 

 

 

886

 

 

5

 

 

20

 

 

 

2,074

 

 

 

1,783

 

 

16

 

Professional services

 

 

316

 

 

 

262

 

 

 

359

 

 

 

295

 

 

 

290

 

 

21

 

 

9

 

 

 

578

 

 

 

614

 

 

(6

)

Communications and data processing

 

 

355

 

 

 

351

 

 

 

345

 

 

 

344

 

 

 

344

 

 

1

 

 

3

 

 

 

706

 

 

 

694

 

 

2

 

Amortization of intangibles

 

 

19

 

 

 

19

 

 

 

22

 

 

 

24

 

 

 

22

 

 

 

 

(14

)

 

 

38

 

 

 

36

 

 

6

 

Other

 

 

441

 

 

 

463

 

 

 

825

 

 

 

433

 

 

 

429

 

 

(5

)

 

3

 

 

 

904

 

 

 

854

 

 

6

 

Total non-interest expense

 

 

4,946

 

 

 

5,137

 

 

 

5,717

 

 

 

4,860

 

 

 

4,794

 

 

(4

)

 

3

 

 

 

10,083

 

 

 

9,739

 

 

4

 

Income from continuing operations before income taxes

 

 

651

 

 

 

1,582

 

 

 

932

 

 

 

2,222

 

 

 

1,728

 

 

(59

)

 

(62

)

 

 

2,233

 

 

 

2,891

 

 

(23

)

Income tax provision

 

 

54

 

 

 

302

 

 

 

226

 

 

 

432

 

 

 

297

 

 

(82

)

 

(82

)

 

 

356

 

 

 

500

 

 

(29

)

Net income

 

 

597

 

 

 

1,280

 

 

 

706

 

 

 

1,790

 

 

 

1,431

 

 

(53

)

 

(58

)

 

 

1,877

 

 

 

2,391

 

 

(21

)

Dividends and undistributed earnings allocated to participating securities(2)

 

 

(9

)

 

 

(23

)

 

 

(10

)

 

 

(28

)

 

 

(23

)

 

(61

)

 

(61

)

 

 

(32

)

 

 

(39

)

 

(18

)

Preferred stock dividends

 

 

(57

)

 

 

(57

)

 

 

(57

)

 

 

(57

)

 

 

(57

)

 

 

 

 

 

 

(114

)

 

 

(114

)

 

 

Net income available to common stockholders

 

$

531

 

 

$

1,200

 

 

$

639

 

 

$

1,705

 

 

$

1,351

 

 

(56

)

 

(61

)

 

$

1,731

 

 

$

2,238

 

 

(23

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 Q2

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

2024

 

2023

 

 

 

 

 

2024 vs.

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

Q2

 

 

2024

 

 

 

2023

 

 

2023

Basic earnings per common share:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per basic common share

 

$

1.39

 

 

$

3.14

 

 

$

1.67

 

 

$

4.46

 

 

$

3.53

 

 

(56

)%

 

(61

)%

 

$

4.52

 

 

$

5.85

 

 

(23

)%

Diluted earnings per common share:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted common share

 

$

1.38

 

 

$

3.13

 

 

$

1.67

 

 

$

4.45

 

 

$

3.52

 

 

(56

)%

 

(61

)%

 

$

4.51

 

 

$

5.83

 

 

(23

)%

Weighted-average common shares outstanding (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic common shares

 

 

383.1

 

 

 

382.2

 

 

 

381.9

 

 

 

382.5

 

 

 

382.8

 

 

 

 

 

 

 

382.7

 

 

 

382.7

 

 

 

Diluted common shares

 

 

383.9

 

 

 

383.4

 

 

 

382.8

 

 

 

383.3

 

 

 

383.7

 

 

 

 

 

 

 

383.7

 

 

 

383.8

 

 

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 Q2

 

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

2024

 

2023

(Dollars in millions)

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

Q2

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

5,298

 

 

$

4,671

 

 

$

4,903

 

 

$

4,620

 

 

$

3,360

 

 

13

%

 

58

%

Interest-bearing deposits and other short-term investments

 

 

40,116

 

 

 

46,357

 

 

 

38,394

 

 

 

40,249

 

 

 

38,236

 

 

(13

)

 

5

 

Total cash and cash equivalents

 

 

45,414

 

 

 

51,028

 

 

 

43,297

 

 

 

44,869

 

 

 

41,596

 

 

(11

)

 

9

 

Restricted cash for securitization investors

 

 

2,415

 

 

 

474

 

 

 

458

 

 

 

435

 

 

 

452

 

 

**

 

**

Securities available for sale

 

 

79,250

 

 

 

78,398

 

 

 

79,117

 

 

 

74,837

 

 

 

78,412

 

 

1

 

 

1

 

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecuritized loans held for investment

 

 

289,124

 

 

 

285,577

 

 

 

289,229

 

 

 

284,953

 

 

 

280,933

 

 

1

 

 

3

 

Loans held in consolidated trusts

 

 

29,062

 

 

 

29,577

 

 

 

31,243

 

 

 

29,827

 

 

 

30,390

 

 

(2

)

 

(4

)

Total loans held for investment

 

 

318,186

 

 

 

315,154

 

 

 

320,472

 

 

 

314,780

 

 

 

311,323

 

 

1

 

 

2

 

Allowance for credit losses

 

 

(16,649

)

 

 

(15,380

)

 

 

(15,296

)

 

 

(14,955

)

 

 

(14,646

)

 

8

 

 

14

 

Net loans held for investment

 

 

301,537

 

 

 

299,774

 

 

 

305,176

 

 

 

299,825

 

 

 

296,677

 

 

1

 

 

2

 

Loans held for sale

 

 

808

 

 

 

1,631

 

 

 

854

 

 

 

742

 

 

 

1,211

 

 

(50

)

 

(33

)

Premises and equipment, net

 

 

4,396

 

 

 

4,366

 

 

 

4,375

 

 

 

4,378

 

 

 

4,359

 

 

1

 

 

1

 

Interest receivable

 

 

2,494

 

 

 

2,514

 

 

 

2,478

 

 

 

2,469

 

 

 

2,297

 

 

(1

)

 

9

 

Goodwill

 

 

15,062

 

 

 

15,062

 

 

 

15,065

 

 

 

15,048

 

 

 

15,060

 

 

 

 

 

Other assets

 

 

28,642

 

 

 

28,473

 

 

 

27,644

 

 

 

28,832

 

 

 

27,736

 

 

1

 

 

3

 

Total assets

 

$

480,018

 

 

$

481,720

 

 

$

478,464

 

 

$

471,435

 

 

$

467,800

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 Q2

 

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

2024

 

2023

(Dollars in millions)

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

Q2

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest payable

 

$

668

 

 

$

762

 

 

$

649

 

 

$

685

 

 

$

637

 

 

(12

)%

 

5

%

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

27,005

 

 

 

27,617

 

 

 

28,024

 

 

 

28,794

 

 

 

29,312

 

 

(2

)

 

(8

)

Interest-bearing deposits

 

 

324,437

 

 

 

323,352

 

 

 

320,389

 

 

 

317,217

 

 

 

314,393

 

 

 

 

3

 

Total deposits

 

 

351,442

 

 

 

350,969

 

 

 

348,413

 

 

 

346,011

 

 

 

343,705

 

 

 

 

2

 

Securitized debt obligations

 

 

17,291

 

 

 

17,661

 

 

 

18,043

 

 

 

17,417

 

 

 

17,861

 

 

(2

)

 

(3

)

Other debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities loaned or sold under agreements to repurchase

 

 

715

 

 

 

568

 

 

 

538

 

 

 

522

 

 

 

649

 

 

26

 

 

10

 

Senior and subordinated notes

 

 

29,925

 

 

 

32,108

 

 

 

31,248

 

 

 

31,283

 

 

 

31,627

 

 

(7

)

 

(5

)

Other borrowings

 

 

25

 

 

 

24

 

 

 

27

 

 

 

25

 

 

 

121

 

 

4

 

 

(79

)

Total other debt

 

 

30,665

 

 

 

32,700

 

 

 

31,813

 

 

 

31,830

 

 

 

32,397

 

 

(6

)

 

(5

)

Other liabilities

 

 

21,971

 

 

 

21,827

 

 

 

21,457

 

 

 

21,824

 

 

 

18,641

 

 

1

 

 

18

 

Total liabilities

 

 

422,037

 

 

 

423,919

 

 

 

420,375

 

 

 

417,767

 

 

 

413,241

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

 

 

Common stock

 

 

7

 

 

 

7

 

 

 

7

 

 

 

7

 

 

 

7

 

 

 

 

 

Additional paid-in capital, net

 

 

36,012

 

 

 

35,808

 

 

 

35,541

 

 

 

35,334

 

 

 

35,163

 

 

1

 

 

2

 

Retained earnings

 

 

62,211

 

 

 

61,905

 

 

 

60,945

 

 

 

60,529

 

 

 

59,028

 

 

 

 

5

 

Accumulated other comprehensive loss

 

 

(9,701

)

 

 

(9,534

)

 

 

(8,268

)

 

 

(12,224

)

 

 

(9,818

)

 

2

 

 

(1

)

Treasury stock, at cost

 

 

(30,548

)

 

 

(30,385

)

 

 

(30,136

)

 

 

(29,978

)

 

 

(29,821

)

 

1

 

 

2

 

Total stockholders’ equity

 

 

57,981

 

 

 

57,801

 

 

 

58,089

 

 

 

53,668

 

 

 

54,559

 

 

 

 

6

 

Total liabilities and stockholders’ equity

 

$

480,018

 

 

$

481,720

 

 

$

478,464

 

 

$

471,435

 

 

$

467,800

 

 

 

 

3

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

 

(1)

Total net revenue was reduced by $649 million in Q2 2024, $630 million in Q1 2024, $566 million in Q4 2023, $449 million in Q3 2023 and $443 million in Q2 2023 for credit card finance charges and fees charged-off as uncollectible.

(2)

Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(3)

Tangible book value per common share is a non-GAAP measure calculated based on TCE divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(4)

Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

(5)

Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

(6)

Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(7)

Return on average common equity is calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.

(8)

Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average TCE. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(9)

Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(10)

Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(11)

Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

(12)

Capital ratios as of the end of Q2 2024 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.

(13)

TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

**

Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 6: Average Balances, Net Interest Income and Net Interest Margin

 

 

 

2024 Q2

 

2024 Q1

 

2023 Q2

(Dollars in millions, except as noted)

 

Average Balance

 

Interest Income/ Expense

 

Yield/Rate(1)

 

Average Balance

 

Interest Income/ Expense

 

Yield/Rate(1)

 

Average Balance

 

Interest Income/ Expense

 

Yield/Rate(1)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including loans held for sale

 

$

315,823

 

$

9,993

 

12.66

%

 

$

315,563

 

$

9,920

 

12.57

%

 

$

310,335

 

$

9,057

 

11.67

%

Investment securities

 

 

89,501

 

 

700

 

3.13

 

 

 

88,581

 

 

687

 

3.10

 

 

 

89,994

 

 

639

 

2.84

 

Cash equivalents and other

 

 

45,584

 

 

587

 

5.16

 

 

 

43,659

 

 

570

 

5.21

 

 

 

38,810

 

 

470

 

4.84

 

Total interest-earning assets

 

$

450,908

 

$

11,280

 

10.01

 

 

$

447,803

 

$

11,177

 

9.98

 

 

$

439,139

 

$

10,166

 

9.26

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

322,581

 

$

2,874

 

3.56

 

 

$

318,450

 

$

2,812

 

3.53

 

 

$

313,207

 

$

2,277

 

2.91

 

Securitized debt obligations

 

 

17,452

 

 

258

 

5.91

 

 

 

17,836

 

 

261

 

5.85

 

 

 

17,771

 

 

236

 

5.31

 

Senior and subordinated notes

 

 

30,978

 

 

591

 

7.64

 

 

 

32,211

 

 

606

 

7.52

 

 

 

30,161

 

 

528

 

7.00

 

Other borrowings and liabilities(2)

 

 

2,502

 

 

11

 

1.73

 

 

 

2,373

 

 

10

 

1.78

 

 

 

2,419

 

 

12

 

1.95

 

Total interest-bearing liabilities

 

$

373,513

 

$

3,734

 

4.00

 

 

$

370,870

 

$

3,689

 

3.98

 

 

$

363,558

 

$

3,053

 

3.36

 

Net interest income/spread

 

 

 

$

7,546

 

6.01

 

 

 

 

$

7,488

 

6.00

 

 

 

 

$

7,113

 

5.90

 

Impact of non-interest-bearing funding

 

 

 

 

 

0.69

 

 

 

 

 

 

0.69

 

 

 

 

 

 

0.58

 

Net interest margin

 

 

 

 

 

6.70

%

 

 

 

 

 

6.69

%

 

 

 

 

 

6.48

%

 

 

 

Six Months Ended June 30,

 

 

2024

 

2023

(Dollars in millions, except as noted)

 

Average Balance

 

Interest Income/ Expense

 

Yield/Rate(1)

 

Average Balance

 

Interest Income/ Expense

 

Yield/Rate(1)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including loans held for sale

 

$

315,693

 

$

19,913

 

12.62

%

 

$

309,231

 

$

17,780

 

11.50

%

Investment securities

 

 

89,041

 

 

1,387

 

3.12

 

 

 

89,977

 

 

1,254

 

2.79

 

Cash equivalents and other

 

 

44,622

 

 

1,157

 

5.19

 

 

 

37,972

 

 

886

 

4.67

 

Total interest-earning assets

 

$

449,356

 

$

22,457

 

10.00

 

 

$

437,180

 

$

19,920

 

9.11

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

320,515

 

$

5,686

 

3.55

 

 

$

311,010

 

$

4,133

 

2.66

 

Securitized debt obligations

 

 

17,644

 

 

519

 

5.88

 

 

 

17,512

 

 

447

 

5.10

 

Senior and subordinated notes

 

 

31,594

 

 

1,197

 

7.58

 

 

 

30,149

 

 

1,017

 

6.75

 

Other borrowings and liabilities(2)

 

 

2,438

 

 

21

 

1.75

 

 

 

2,377

 

 

24

 

2.01

 

Total interest-bearing liabilities

 

$

372,191

 

$

7,423

 

3.99

 

 

$

361,048

 

$

5,621

 

3.11

 

Net interest income/spread

 

 

 

$

15,034

 

6.01

 

 

 

 

$

14,299

 

6.00

 

Impact of non-interest-bearing funding

 

 

 

 

 

0.68

 

 

 

 

 

 

0.54

 

Net interest margin

 

 

 

 

 

6.69

%

 

 

 

 

 

6.54

%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 Q2

 

Six Months Ended June 30,

(Dollars in millions, except as noted)

 

2024

Q2

2024

Q1

2023

Q4

2023

Q3

2023

Q2

 

2024

Q1

 

2023

Q2

 

2024

 

2023

 

2024 vs. 2023

Loans Held for Investment (Period-End)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic credit card

 

$

147,065

 

$

143,861

 

$

147,666

 

$

140,320

 

$

135,975

 

2

%

 

8

%

 

$

147,065

 

$

135,975

 

8

%

International card businesses

 

 

6,830

 

 

6,733

 

 

6,881

 

 

6,463

 

 

6,516

 

1

 

 

5

 

 

 

6,830

 

 

6,516

 

5

 

Total credit card

 

 

153,895

 

 

150,594

 

 

154,547

 

 

146,783

 

 

142,491

 

2

 

 

8

 

 

 

153,895

 

 

142,491

 

8

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto

 

 

74,385

 

 

73,801

 

 

74,075

 

 

75,456

 

 

75,841

 

1

 

 

(2

)

 

 

74,385

 

 

75,841

 

(2

)

Retail banking

 

 

1,278

 

 

1,298

 

 

1,362

 

 

1,388

 

 

1,439

 

(2

)

 

(11

)

 

 

1,278

 

 

1,439

 

(11

)

Total consumer banking

 

 

75,663

 

 

75,099

 

 

75,437

 

 

76,844

 

 

77,280

 

1

 

 

(2

)

 

 

75,663

 

 

77,280

 

(2

)

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and multifamily real estate

 

 

32,832

 

 

34,272

 

 

34,446

 

 

35,622

 

 

36,041

 

(4

)

 

(9

)

 

 

32,832

 

 

36,041

 

(9

)

Commercial and industrial

 

 

55,796

 

 

55,189

 

 

56,042

 

 

55,531

 

 

55,511

 

1

 

 

1

 

 

 

55,796

 

 

55,511

 

1

 

Total commercial banking

 

 

88,628

 

 

89,461

 

 

90,488

 

 

91,153

 

 

91,552

 

(1

)

 

(3

)

 

 

88,628

 

 

91,552

 

(3

)

Total loans held for investment

 

$

318,186

 

$

315,154

 

$

320,472

 

$

314,780

 

$

311,323

 

1

 

 

2

 

 

$

318,186

 

$

311,323

 

2

 

Loans Held for Investment (Average)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic credit card

 

$

143,744

 

$

142,887

 

$

142,112

 

$

137,500

 

$

132,505

 

1

%

 

8

%

 

$

143,316

 

$

130,544

 

10

%

International card businesses

 

 

6,723

 

 

6,758

 

 

6,515

 

 

6,549

 

 

6,257

 

(1

)

 

7

 

 

 

6,740

 

 

6,183

 

9

 

Total credit card

 

 

150,467

 

 

149,645

 

 

148,627

 

 

144,049

 

 

138,762

 

1

 

 

8

 

 

 

150,056

 

 

136,727

 

10

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto

 

 

74,098

 

 

73,768

 

 

74,861

 

 

75,740

 

 

76,233

 

 

 

(3

)

 

 

73,933

 

 

76,846

 

(4

)

Retail banking

 

 

1,288

 

 

1,324

 

 

1,377

 

 

1,414

 

 

1,465

 

(3

)

 

(12

)

 

 

1,306

 

 

1,497

 

(13

)

Total consumer banking

 

 

75,386

 

 

75,092

 

 

76,238

 

 

77,154

 

 

77,698

 

 

 

(3

)

 

 

75,239

 

 

78,343

 

(4

)

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and multifamily real estate

 

 

33,801

 

 

34,310

 

 

35,414

 

 

35,964

 

 

37,068

 

(1

)

 

(9

)

 

 

34,055

 

 

37,220

 

(9

)

Commercial and industrial

 

 

55,234

 

 

55,567

 

 

55,611

 

 

55,592

 

 

56,127

 

(1

)

 

(2

)

 

 

55,401

 

 

56,421

 

(2

)

Total commercial banking

 

 

89,035

 

 

89,877

 

 

91,025

 

 

91,556

 

 

93,195

 

(1

)

 

(4

)

 

 

89,456

 

 

93,641

 

(4

)

Total average loans held for investment

 

$

314,888

 

$

314,614

 

$

315,890

 

$

312,759

 

$

309,655

 

 

 

2

 

 

$

314,751

 

$

308,711

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 Q2

 

Six Months Ended June 30,

 

 

2024

 

2024

 

2023

 

2023

 

2023

 

2024

 

2023

 

2024

 

2023

 

2024 vs. 2023

 

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

Q2

Net Charge-Off (Recovery) Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic credit card(3)(4)

 

6.05

%

 

5.94

%

 

5.35

%

 

4.40

%

 

4.38

%

 

11

bps

 

167

bps

 

5.99

%

 

4.21

%

 

178

bps

International card businesses

 

5.03

 

 

5.16

 

 

4.94

 

 

4.87

 

 

4.98

 

 

(13

)

 

5

 

 

5.10

 

 

4.77

 

 

33

 

Total credit card

 

6.00

 

 

5.90

 

 

5.33

 

 

4.42

 

 

4.41

 

 

10

 

 

159

 

 

5.95

 

 

4.24

 

 

171

 

Consumer banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto

 

1.81

 

 

1.99

 

 

2.19

 

 

1.77

 

 

1.40

 

 

(18

)

 

41

 

 

1.90

 

 

1.46

 

 

44

 

Retail banking

 

5.38

 

 

4.04

 

 

5.68

 

 

3.80

 

 

3.25

 

 

134

 

 

213

 

 

4.70

 

 

3.10

 

 

160

 

Total consumer banking

 

1.87

 

 

2.03

 

 

2.25

 

 

1.81

 

 

1.43

 

 

(16

)

 

44

 

 

1.95

 

 

1.50

 

 

45

 

Commercial banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and multifamily real estate

 

0.11

 

 

0.20

 

 

0.96

 

 

0.27

 

 

3.91

 

 

(9

)

 

(380

)

 

0.16

 

 

2.04

 

 

(188

)

Commercial and industrial

 

0.17

 

 

0.08

 

 

0.26

 

 

0.24

 

 

0.11

 

 

9

 

 

6

 

 

0.13

 

 

0.07

 

 

6

 

Total commercial banking

 

0.15

 

 

0.13

 

 

0.53

 

 

0.25

 

 

1.62

 

 

2

 

 

(147

)

 

0.14

 

 

0.85

 

 

(71

)

Total net charge-offs

 

3.36

 

 

3.33

 

 

3.21

 

 

2.56

 

 

2.82

 

 

3

 

 

54

 

 

3.34

 

 

2.52

 

 

82

 

30+ Day Performing Delinquency Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic credit card

 

4.14

%

 

4.48

%

 

4.61

%

 

4.31

%

 

3.74

%

 

(34)

bps

 

40

bps

 

4.14

%

 

3.74

%

 

40

bps

International card businesses

 

4.63

 

 

4.83

 

 

4.67

 

 

4.43

 

 

4.24

 

 

(20

)

 

39

 

 

4.63

 

 

4.24

 

 

39

 

Total credit card

 

4.16

 

 

4.50

 

 

4.61

 

 

4.32

 

 

3.77

 

 

(34

)