Capital One Reports First Quarter 2024 Net Income of $1.3 billion, or $3.13 per share
Net of adjusting items, First Quarter 2024 Net Income of $3.21 per share(1)
MCLEAN, Va., April 25, 2024 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2024 of $1.3 billion, or $3.13 per diluted common share, compared with net income of $706 million, or $1.67 per diluted common share in the fourth quarter of 2023, and with net income of $960 million, or $2.31 per diluted common share in the first quarter of 2023. Adjusted net income(1) for the first quarter of 2024 was $3.21 per diluted common share.
"First quarter results continue to show top-line growth, stabilizing consumer credit, and balance sheet strength," said Richard Fairbank, Founder, Chairman, and Chief Executive Officer "And in the quarter, we announced our definitive agreement to acquire Discover. The acquisition of Discover is a singular opportunity that creates a consumer banking and global payments platform with the capabilities, technology, brands, and customer franchise to create significant value for merchants, consumers, small businesses and shareholders."
The quarter included the following adjusting item:
(Dollars in millions, except per share data)
Pre-Tax
Impact
After-Tax Diluted EPS
Impact
FDIC special assessment
$ 42
$ 0.08
All comparisons below are for the first quarter of 2024 compared with the fourth quarter of 2023 unless otherwise noted.
First Quarter 2024 Income Statement Summary:
Total net revenue decreased 1 percent to $9.4 billion.
Total non-interest expense decreased 10 percent to $5.1 billion:
19 percent decrease in marketing.
8 percent decrease in operating expenses.
Pre-provision earnings(2) increased 13 percent to $4.3 billion.
Provision for credit losses decreased $174 million to $2.7 billion:
Net charge-offs of $2.6 billion.
$91 million loan reserve build.
Net interest margin of 6.69 percent, a decrease of 4 basis points.
Efficiency ratio of 54.64 percent.
Adjusted efficiency ratio(1) of 54.19 percent.
Operating efficiency ratio of 43.89 percent.
Adjusted operating efficiency ratio(1) of 43.45 percent.
First Quarter 2024 Balance Sheet Summary:
Common equity Tier 1 capital ratio(3) under Basel III Standardized Approach of 13.1 percent at March 31, 2024.
Period-end loans held for investment in the quarter decreased $5.3 billion, or 2 percent, to $315.2 billion.
Credit Card period-end loans decreased $4.0 billion, or 3 percent, to $150.6 billion.
Domestic Card period-end loans decreased $3.8 billion, or 3 percent, to $143.9 billion.
Consumer Banking period-end loans decreased $338 million, or less than 1 percent, to $75.1 billion.
Auto period-end loans decreased $274 million, or less than 1 percent, to $73.8 billion.
Commercial Banking period-end loans decreased $1.0 billion, or 1 percent, to $89.5 billion.
Average loans held for investment in the quarter decreased $1.3 billion, or less than 1 percent, to $314.6 billion.
Credit Card average loans increased $1.0 billion, or 1 percent, to $149.6 billion.
Domestic Card average loans increased $775 million, or 1 percent, to $142.9 billion.
Consumer Banking average loans decreased $1.1 billion, or 2 percent, to $75.1 billion.
Auto average loans decreased $1.1 billion, or 1 percent, to $73.8 billion.
Commercial Banking average loans decreased $1.1 billion, or 1 percent, to $89.9 billion.
Period-end total deposits increased $2.6 billion, or 1 percent, to $351.0 billion, while average deposits increased $329 million, or less than 1 percent, to $345.7 billion.
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 From 8-K on April 25, 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 From 8-K on April 25, 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 March 31, 2024 are preliminary and therefore subject to change.
Earnings Conference Call Webcast Information
The company will hold an earnings conference call on April 25, 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 May 9, 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 $351.0 billion in deposits and $481.7 billion in total assets as of March 31, 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.
Exhibit 99.2
Capital One Financial Corporation
Financial Supplement(1)(2)
First Quarter2024
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 March 31, 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 Q1
(Dollars in millions, except per share data and as noted)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Income Statement
Net interest income
$ 7,488
$ 7,519
$ 7,423
$ 7,113
$ 7,186
-
4 %
Non-interest income
1,914
1,987
1,943
1,899
1,717
(4) %
11
Total net revenue(1)
9,402
9,506
9,366
9,012
8,903
(1)
6
Provision for credit losses
2,683
2,857
2,284
2,490
2,795
(6)
(4)
Non-interest expense:
Marketing
1,010
1,254
972
886
897
(19)
13
Operating expense
4,127
4,463
3,888
3,908
4,048
(8)
2
Total non-interest expense
5,137
5,717
4,860
4,794
4,945
(10)
4
Income from continuing operations before income taxes
1,582
932
2,222
1,728
1,163
70
36
Income tax provision
302
226
432
297
203
34
49
Net income
1,280
706
1,790
1,431
960
81
33
Dividends and undistributed earnings allocated to participating securities(2)
(23)
(10)
(28)
(23)
(16)
130
44
Preferred stock dividends
(57)
(57)
(57)
(57)
(57)
-
-
Net income available to common stockholders
$ 1,200
$ 639
$ 1,705
$ 1,351
$ 887
88
35
Common Share Statistics
Basic earnings per common share:(2)
Net income per basic common share
$ 3.14
$ 1.67
$ 4.46
$ 3.53
$ 2.32
88 %
35 %
Diluted earnings per common share:(2)
Net income per diluted common share
$ 3.13
$ 1.67
$ 4.45
$ 3.52
$ 2.31
87 %
35 %
Weighted-average common shares outstanding (in millions):
Basic
382.2
381.9
382.5
382.8
382.6
-
-
Diluted
383.4
382.8
383.3
383.7
383.8
-
-
Common shares outstanding (period-end, in millions)
382.1
380.4
381.0
381.4
382.0
-
-
Dividends declared and paid per common share
$ 0.60
$ 0.60
$ 0.60
$ 0.60
$ 0.60
-
-
Tangible book value per common share (period-end)(3)
98.67
99.78
87.97
90.07
90.86
(1) %
9 %
2024 Q1
(Dollars in millions)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Balance Sheet (Period-End)
Loans held for investment
$ 315,154
$ 320,472
$ 314,780
$ 311,323
$ 308,836
(2) %
2 %
Interest-earning assets
453,557
449,701
445,428
441,250
445,166
1
2
Total assets
481,720
478,464
471,435
467,800
471,660
1
2
Interest-bearing deposits
323,352
320,389
317,217
314,393
318,641
1
1
Total deposits
350,969
348,413
346,011
343,705
349,827
1
-
Borrowings
50,361
49,856
49,247
50,258
48,777
1
3
Common equity
52,955
53,244
48,823
49,713
49,807
(1)
6
Total stockholders' equity
57,801
58,089
53,668
54,559
54,653
-
6
Balance Sheet (Average Balances)
Loans held for investment
$ 314,614
$ 315,890
$ 312,759
$ 309,655
$ 307,756
-
2 %
Interest-earning assets
447,803
446,929
443,532
439,139
435,199
-
3
Total assets
474,995
472,594
469,860
466,652
462,324
1 %
3
Interest-bearing deposits
318,450
316,808
316,032
313,207
308,788
1
3
Total deposits
345,657
345,328
345,013
343,678
340,123
-
2
Borrowings
50,474
51,070
49,736
48,468
48,016
(1)
5
Common equity
53,152
50,786
50,166
50,511
49,927
5
6
Total stockholders' equity
57,998
55,632
55,012
55,357
54,773
4
6
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Selected Metrics-Consolidated
2024 Q1
(Dollars in millions, except as noted)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Performance Metrics
Net interest income growth (period over period)
-
1 %
4 %
(1) %
-
**
**
Non-interest income growth (period over period)
(4) %
2
2
11
(7) %
**
**
Total net revenue growth (period over period)
(1)
1
4
1
(2)
**
**
Total net revenue margin(4)
8.40
8.51
8.45
8.21
8.18
(11) bps
22 bps
Net interest margin(5)
6.69
6.73
6.69
6.48
6.60
(4)
9
Return on average assets
1.08
0.60
1.52
1.23
0.83
48
25
Return on average tangible assets(6)
1.11
0.62
1.58
1.27
0.86
49
25
Return on average common equity(7)
9.03
5.03
13.59
10.70
7.11
400
192
Return on average tangible common equity(8)
12.67
7.20
19.59
15.30
10.15
547
252
Efficiency ratio(9)
54.64
60.14
51.89
53.20
55.54
(550)
(90)
Operating efficiency ratio(10)
43.89
46.95
41.51
43.36
45.47
(306)
(158)
Effective income tax rate for continuing operations
19.1
24.2
19.4
17.2
17.5
(510)
160
Employees (period-end, in thousands)
51.3
52.0
54.2
55.6
56.1
(1) %
(9) %
Credit Quality Metrics
Allowance for credit losses
$ 15,380
$ 15,296
$ 14,955
$ 14,646
$ 14,318
1 %
7 %
Allowance coverage ratio
4.88 %
4.77 %
4.75 %
4.70 %
4.64 %
11 bps
24 bps
Net charge-offs
$ 2,616
$ 2,533
$ 1,999
$ 2,185
$ 1,697
3 %
54 %
Net charge-off rate(11)
3.33 %
3.21 %
2.56 %
2.82 %
2.21 %
12 bps
112 bps
30+ day performing delinquency rate
3.40
3.71
3.42
3.08
2.88
(31)
52
30+ day delinquency rate
3.67
3.99
3.71
3.36
3.09
(32)
58
Capital Ratios(12)
Common equity Tier 1 capital
13.1 %
12.9 %
13.0 %
12.7 %
12.5 %
20 bps
60 bps
Tier 1 capital
14.4
14.2
14.3
14.0
13.9
20
50
Total capital
16.3
16.0
16.2
16.0
15.9
30
40
Tier 1 leverage
11.3
11.2
11.2
11.0
10.9
10
40
Tangible common equity ("TCE")(13)
8.1
8.2
7.3
7.6
7.6
(10)
50
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3: Consolidated Statements of Income
2024 Q1
(Dollars in millions, except as noted)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Interest income:
Loans, including loans held for sale
$ 9,920
$ 9,934
$ 9,696
$ 9,057
$ 8,723
-
14 %
Investment securities
687
669
627
639
615
3 %
12
Other
570
542
550
470
416
5
37
Total interest income
11,177
11,145
10,873
10,166
9,754
-
15
Interest expense:
Deposits
2,812
2,745
2,611
2,277
1,856
2
52
Securitized debt obligations
261
263
249
236
211
(1)
24
Senior and subordinated notes
606
608
579
528
489
-
24
Other borrowings
10
10
11
12
12
-
(17)
Total interest expense
3,689
3,626
3,450
3,053
2,568
2
44
Net interest income
7,488
7,519
7,423
7,113
7,186
-
4
Provision for credit losses
2,683
2,857
2,284
2,490
2,795
(6)
(4)
Net interest income after provision for credit losses
4,805
4,662
5,139
4,623
4,391
3
9
Non-interest income:
Interchange fees, net
1,145
1,207
1,234
1,213
1,139
(5)
1
Service charges and other customer-related fees
462
424
453
411
379
9
22
Net securities gains (losses)
-
(34)
-
-
-
**
-
Other
307
390
256
275
199
(21)
54
Total non-interest income
1,914
1,987
1,943
1,899
1,717
(4)
11
Non-interest expense:
Salaries and associate benefits
2,478
2,284
2,274
2,317
2,427
8
2
Occupancy and equipment
554
628
518
506
508
(12)
9
Marketing
1,010
1,254
972
886
897
(19)
13
Professional services
262
359
295
290
324
(27)
(19)
Communications and data processing
351
345
344
344
350
2
-
Amortization of intangibles
19
22
24
22
14
(14)
36
Other
463
825
433
429
425
(44)
9
Total non-interest expense
5,137
5,717
4,860
4,794
4,945
(10)
4
Income from continuing operations before income taxes
1,582
932
2,222
1,728
1,163
70
36
Income tax provision
302
226
432
297
203
34
49
Net income
1,280
706
1,790
1,431
960
81
33
Dividends and undistributed earnings allocated to participating securities(2)
(23)
(10)
(28)
(23)
(16)
130
44
Preferred stock dividends
(57)
(57)
(57)
(57)
(57)
-
-
Net income available to common stockholders
$ 1,200
$ 639
$ 1,705
$ 1,351
$ 887
88
35
2024 Q1
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Basic earnings per common share:(2)
Net income per basic common share
$ 3.14
$ 1.67
$ 4.46
$ 3.53
$ 2.32
88 %
35 %
Diluted earnings per common share:(2)
Net income per diluted common share
$ 3.13
$ 1.67
$ 4.45
$ 3.52
$ 2.31
87 %
35 %
Weighted-average common shares outstanding (in millions):
Basic common shares
382.2
381.9
382.5
382.8
382.6
-
-
Diluted common shares
383.4
382.8
383.3
383.7
383.8
-
-
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets
2024 Q1
(Dollars in millions)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Assets:
Cash and cash equivalents:
Cash and due from banks
$ 4,671
$ 4,903
$ 4,620
$ 3,360
$ 3,347
(5) %
40 %
Interest-bearing deposits and other short-term investments
46,357
38,394
40,249
38,236
43,166
21
7
Total cash and cash equivalents
51,028
43,297
44,869
41,596
46,513
18
10
Restricted cash for securitization investors
474
458
435
452
460
3
3
Securities available for sale
78,398
79,117
74,837
78,412
81,925
(1)
(4)
Loans held for investment:
Unsecuritized loans held for investment
285,577
289,229
284,953
280,933
280,093
(1)
2
Loans held in consolidated trusts
29,577
31,243
29,827
30,390
28,743
(5)
3
Total loans held for investment
315,154
320,472
314,780
311,323
308,836
(2)
2
Allowance for credit losses
(15,380)
(15,296)
(14,955)
(14,646)
(14,318)
1
7
Net loans held for investment
299,774
305,176
299,825
296,677
294,518
(2)
2
Loans held for sale
1,631
854
742
1,211
363
91
**
Premises and equipment, net
4,366
4,375
4,378
4,359
4,365
-
-
Interest receivable
2,514
2,478
2,469
2,297
2,250
1
12
Goodwill
15,062
15,065
15,048
15,060
14,779
-
2
Other assets
28,473
27,644
28,832
27,736
26,487
3
7
Total assets
$ 481,720
$ 478,464
$ 471,435
$ 467,800
$ 471,660
1
2
2024 Q1
(Dollars in millions)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Liabilities:
Interest payable
$ 762
$ 649
$ 685
$ 637
$ 621
17 %
23 %
Deposits:
Non-interest-bearing deposits
27,617
28,024
28,794
29,312
31,186
(1)
(11)
Interest-bearing deposits
323,352
320,389
317,217
314,393
318,641
1
1
Total deposits
350,969
348,413
346,011
343,705
349,827
1
-
Securitized debt obligations
17,661
18,043
17,417
17,861
17,813
(2)
(1)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase
568
538
522
649
542
6
5
Senior and subordinated notes
32,108
31,248
31,283
31,627
30,398
3
6
Other borrowings
24
27
25
121
24
(11)
-
Total other debt
32,700
31,813
31,830
32,397
30,964
3
6
Other liabilities
21,827
21,457
21,824
18,641
17,782
2
23
Total liabilities
423,919
420,375
417,767
413,241
417,007
1
2
Stockholders' equity:
Preferred stock
0
0
0
0
0
-
-
Common stock
7
7
7
7
7
-
-
Additional paid-in capital, net
35,808
35,541
35,334
35,163
34,952
1
2
Retained earnings
61,905
60,945
60,529
59,028
57,898
2
7
Accumulated other comprehensive loss
(9,534)
(8,268)
(12,224)
(9,818)
(8,540)
15
12
Treasury stock, at cost
(30,385)
(30,136)
(29,978)
(29,821)
(29,664)
1
2
Total stockholders' equity
57,801
58,089
53,668
54,559
54,653
-
6
Total liabilities and stockholders' equity
$ 481,720
$ 478,464
$ 471,435
$ 467,800
$ 471,660
1
2
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 $630 million in Q1 2024, $566 million in Q4 2023, $449 million in Q3 2023, $443 million in Q2 2023 and $405 million in Q1 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 Q1 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 Q1
2023 Q4
2023 Q1
(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
$ 315,563
$ 9,920
12.57 %
$ 316,670
$ 9,934
12.55 %
$ 308,115
$ 8,723
11.32 %
Investment securities
88,581
687
3.10
88,650
669
3.02
89,960
615
2.73
Cash equivalents and other
43,659
570
5.21
41,609
542
5.21
37,124
416
4.49
Total interest-earning assets
$ 447,803
$ 11,177
9.98
$ 446,929
$ 11,145
9.97
$ 435,199
$ 9,754
8.96
Interest-bearing liabilities:
Interest-bearing deposits
$ 318,450
$ 2,812
3.53
$ 316,808
$ 2,745
3.47
$ 308,788
$ 1,856
2.40
Securitized debt obligations
17,836
261
5.85
18,022
263
5.84
17,251
211
4.90
Senior and subordinated notes
32,211
606
7.52
32,586
608
7.46
30,136
489
6.49
Other borrowings and liabilities(2)
2,373
10
1.78
2,349
10
1.74
2,335
12
2.08
Total interest-bearing liabilities
$ 370,870
$ 3,689
3.98
$ 369,765
$ 3,626
3.92
$ 358,510
$ 2,568
2.87
Net interest income/spread
$ 7,488
6.00
$ 7,519
6.05
$ 7,186
6.10
Impact of non-interest-bearing funding
0.69
0.68
0.50
Net interest margin
6.69 %
6.73 %
6.60 %
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics
2024 Q1
(Dollars in millions, except as noted)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card
$ 143,861
$ 147,666
$ 140,320
$ 135,975
$ 130,980
(3) %
10 %
International card businesses
6,733
6,881
6,463
6,516
6,162
(2)
9
Total credit card
150,594
154,547
146,783
142,491
137,142
(3)
10
Consumer banking:
Auto
73,801
74,075
75,456
75,841
76,652
-
(4)
Retail banking
1,298
1,362
1,388
1,439
1,499
(5)
(13)
Total consumer banking
75,099
75,437
76,844
77,280
78,151
-
(4)
Commercial banking:
Commercial and multifamily real estate
34,272
34,446
35,622
36,041
37,132
(1)
(8)
Commercial and industrial
55,189
56,042
55,531
55,511
56,411
(2)
(2)
Total commercial banking
89,461
90,488
91,153
91,552
93,543
(1)
(4)
Total loans held for investment
$ 315,154
$ 320,472
$ 314,780
$ 311,323
$ 308,836
(2)
2
Loans Held for Investment (Average)
Credit card:
Domestic credit card
$ 142,887
$ 142,112
$ 137,500
$ 132,505
$ 128,562
1 %
11 %
International card businesses
6,758
6,515
6,549
6,257
6,108
4
11
Total credit card
149,645
148,627
144,049
138,762
134,670
1
11
Consumer banking:
Auto
73,768
74,861
75,740
76,233
77,465
(1)
(5)
Retail banking
1,324
1,377
1,414
1,465
1,529
(4)
(13)
Total consumer banking
75,092
76,238
77,154
77,698
78,994
(2)
(5)
Commercial banking:
Commercial and multifamily real estate
34,310
35,414
35,964
37,068
37,373
(3)
(8)
Commercial and industrial
55,567
55,611
55,592
56,127
56,719
-
(2)
Total commercial banking
89,877
91,025
91,556
93,195
94,092
(1)
(4)
Total average loans held for investment
$ 314,614
$ 315,890
$ 312,759
$ 309,655
$ 307,756
-
2
2024 Q1
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card(3)
5.94 %
5.35 %
4.40 %
4.38 %
4.04 %
59 bps
190 bps
International card businesses
5.16
4.94
4.87
4.98
4.54
22
62
Total credit card
5.90
5.33
4.42
4.41
4.06
57
184
Consumer banking:
Auto
1.99
2.19
1.77
1.40
1.53
(20)
46
Retail banking
4.04
5.68
3.80
3.25
2.97
(164)
107
Total consumer banking
2.03
2.25
1.81
1.43
1.56
(22)
47
Commercial banking:
Commercial and multifamily real estate
0.20
0.96
0.27
3.91
0.19
(76)
1
Commercial and industrial
0.08
0.26
0.24
0.11
0.03
(18)
5
Total commercial banking
0.13
0.53
0.25
1.62
0.09
(40)
4
Total net charge-offs
3.33
3.21
2.56
2.82
2.21
12
112
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card
4.48 %
4.61 %
4.31 %
3.74 %
3.66 %
(13) bps
82 bps
International card businesses
4.83
4.67
4.43
4.24
4.20
16
63
Total credit card
4.50
4.61
4.32
3.77
3.68
(11)
82
Consumer banking:
Auto
5.28
6.34
5.64
5.38
5.00
(106)
28
Retail banking
0.95
1.19
1.07
1.19
0.56
(24)
39
Total consumer banking
5.21
6.25
5.55
5.30
4.92
(104)
29
Nonperforming Loans and Nonperforming Assets Rates(4)(5)
Credit card:
International card businesses
0.13 %
0.13 %
0.14 %
0.16 %
0.12 %
-
1 bps
Total credit card
0.01
0.01
0.01
0.01
0.01
-
-
Consumer banking:
Auto
0.79
0.96
0.85
0.77
0.67
(17) bps
12
Retail banking
3.21
3.36
3.28
2.99
2.94
(15)
27
Total consumer banking
0.83
1.00
0.89
0.82
0.72
(17)
11
Commercial banking:
Commercial and multifamily real estate
1.58
1.23
1.29
1.15
0.90
35
68
Commercial and industrial
1.10
0.60
0.65
0.71
0.72
50
38
Total commercial banking
1.28
0.84
0.90
0.89
0.79
44
49
Total nonperforming loans
0.57
0.48
0.48
0.47
0.42
9
15
Total nonperforming assets
0.58
0.50
0.50
0.48
0.44
8
14
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity
Three Months Ended March 31, 2024
Credit Card
Consumer Banking
(Dollars in millions)
Domestic Card
International Card Businesses
Total Credit Card
Auto
Retail Banking
Total Consumer Banking
Commercial Banking
Total
Allowance for credit losses:
Balance as of December 31, 2023
$ 11,261
$ 448
$ 11,709
$ 2,002
$ 40
$ 2,042
$ 1,545
$ 15,296
Charge-offs
(2,452)
(122)
(2,574)
(642)
(18)
(660)
(39)
(3,273)
Recoveries
332
35
367
275
5
280
10
657
Net charge-offs
(2,120)
(87)
(2,207)
(367)
(13)
(380)
(29)
(2,616)
Provision for credit losses
2,157
102
2,259
422
4
426
22
2,707
Allowance build (release) for credit losses
37
15
52
55
(9)
46
(7)
91
Other changes(6)
-
(7)
(7)
-
-
-
-
(7)
Balance as of March 31, 2024
11,298
456
11,754
2,057
31
2,088
1,538
15,380
Reserve for unfunded lending commitments:
Balance as of December 31, 2023
-
-
-
-
-
-
158
158
Provision (benefit) for losses on unfunded lending commitments
-
-
-
-
-
-
(24)
(24)
Balance as of March 31, 2024
-
-
-
-
-
-
134
134
Combined allowance and reserve as of March 31, 2024
Income (loss) from continuing operations before income taxes
1,260
498
367
(543)
1,582
Income tax provision (benefit)
299
117
87
(201)
302
Income (loss) from continuing operations, net of tax
$ 961
$ 381
$ 280
$ (342)
$ 1,280
Three Months Ended December 31, 2023
(Dollars in millions)
Credit Card
Consumer Banking
Commercial Banking(7)
Other(7)
Total
Net interest income (loss)
$ 5,231
$ 1,951
$ 617
$ (280)
$ 7,519
Non-interest income
1,565
163
245
14
1,987
Total net revenue (loss)
6,796
2,114
862
(266)
9,506
Provision (benefit) for credit losses
2,353
422
84
(2)
2,857
Non-interest expense
3,417
1,402
487
411
5,717
Income (loss) from continuing operations before income taxes
1,026
290
291
(675)
932
Income tax provision (benefit)
241
68
68
(151)
226
Income (loss) from continuing operations, net of tax
$ 785
$ 222
$ 223
$ (524)
$ 706
Three Months Ended March 31, 2023
(Dollars in millions)
Credit Card
Consumer Banking
Commercial Banking(7)
Other(7)
Total
Net interest income (loss)
$ 4,657
$ 2,360
$ 648
$ (479)
$ 7,186
Non-interest income
1,363
135
212
7
1,717
Total net revenue (loss)
6,020
2,495
860
(472)
8,903
Provision (benefit) for credit losses
2,261
275
259
-
2,795
Non-interest expense
3,038
1,283
530
94
4,945
Income (loss) from continuing operations before income taxes
721
937
71
(566)
1,163
Income tax provision (benefit)
172
221
17
(207)
203
Income (loss) from continuing operations, net of tax
$ 549
$ 716
$ 54
$ (359)
$ 960
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary-Credit Card Business
2024 Q1 vs
(Dollars in millions, except as noted)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Credit Card
Earnings:
Net interest income
$ 5,272
$ 5,231
$ 5,114
$ 4,727
$ 4,657
1 %
13 %
Non-interest income
1,476
1,565
1,513
1,499
1,363
(6)
8
Total net revenue
6,748
6,796
6,627
6,226
6,020
(1)
12
Provision for credit losses
2,259
2,353
1,953
2,084
2,261
(4)
-
Non-interest expense
3,229
3,417
3,015
3,020
3,038
(6)
6
Income from continuing operations before income taxes
1,260
1,026
1,659
1,122
721
23
75
Income tax provision
299
241
393
265
172
24
74
Income from continuing operations, net of tax
$ 961
$ 785
$ 1,266
$ 857
$ 549
22
75
Selected performance metrics:
Period-end loans held for investment
$ 150,594
$ 154,547
$ 146,783
$ 142,491
$ 137,142
(3)
10
Average loans held for investment
149,645
148,627
144,049
138,762
134,670
1
11
Average yield on loans outstanding(1)
18.84 %
18.96 %
19.02 %
18.17 %
17.98 %
(12) bps
86 bps
Total net revenue margin(8)
17.99
18.24
18.40
17.95
17.88
(25)
11
Net charge-off rate
5.90
5.33
4.42
4.41
4.06
57
184
30+ day performing delinquency rate
4.50
4.61
4.32
3.77
3.68
(11)
82
30+ day delinquency rate
4.50
4.62
4.32
3.77
3.69
(12)
81
Nonperforming loan rate(4)
0.01
0.01
0.01
0.01
0.01
-
-
Purchase volume(9)
$ 150,171
$ 162,055
$ 158,640
$ 157,937
$ 141,658
(7) %
6 %
2024 Q1 vs
(Dollars in millions, except as noted)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Domestic Card
Earnings:
Net interest income
$ 4,972
$ 4,940
$ 4,827
$ 4,453
$ 4,390
1 %
13 %
Non-interest income
1,411
1,498
1,445
1,431
1,298
(6)
9
Total net revenue
6,383
6,438
6,272
5,884
5,688
(1)
12
Provision for credit losses
2,157
2,238
1,861
1,995
2,174
(4)
(1)
Non-interest expense
3,025
3,186
2,810
2,805
2,847
(5)
6
Income from continuing operations before income taxes
1,201
1,014
1,601
1,084
667
18
80
Income tax provision
283
239
378
256
157
18
80
Income from continuing operations, net of tax
$ 918
$ 775
$ 1,223
$ 828
$ 510
18
80
Selected performance metrics:
Period-end loans held for investment
$ 143,861
$ 147,666
$ 140,320
$ 135,975
$ 130,980
(3)
10
Average loans held for investment
142,887
142,112
137,500
132,505
128,562
1
11
Average yield on loans outstanding(1)
18.76 %
18.88 %
18.96 %
18.07 %
17.88 %
(12) bps
88 bps
Total net revenue margin(8)
17.82
18.07
18.24
17.76
17.70
(25)
12
Net charge-off rate(3)
5.94
5.35
4.40
4.38
4.04
59
190
30+ day performing delinquency rate
4.48
4.61
4.31
3.74
3.66
(13)
82
Purchase volume(9)
$ 146,696
$ 158,290
$ 154,880
$ 154,184
$ 138,310
(7) %
6 %
Refreshed FICO scores:(10)
Greater than 660
68 %
68 %
69 %
69 %
68 %
-
-
660 or below
32
32
31
31
32
-
-
Total
100 %
100 %
100 %
100 %
100 %
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Financial & Statistical Summary-Consumer Banking Business
2024 Q1 vs
(Dollars in millions, except as noted)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Consumer Banking
Earnings:
Net interest income
$ 2,011
$ 1,951
$ 2,133
$ 2,269
$ 2,360
3 %
(15) %
Non-interest income
159
163
142
149
135
(2)
18
Total net revenue
2,170
2,114
2,275
2,418
2,495
3
(13)
Provision for credit losses
426
422
213
259
275
1
55
Non-interest expense
1,246
1,402
1,262
1,231
1,283
(11)
(3)
Income from continuing operations before income taxes
498
290
800
928
937
72
(47)
Income tax provision
117
68
189
219
221
72
(47)
Income from continuing operations, net of tax
$ 381
$ 222
$ 611
$ 709
$ 716
72
(47)
Selected performance metrics:
Period-end loans held for investment
$ 75,099
$ 75,437
$ 76,844
$ 77,280
$ 78,151
-
(4)
Average loans held for investment
75,092
76,238
77,154
77,698
78,994
(2)
(5)
Average yield on loans held for investment(1)
8.33 %
8.17 %
7.97 %
7.65 %
7.40 %
16 bps
93 bps
Auto loan originations
$ 7,522
$ 6,157
$ 7,452
$ 7,160
$ 6,211
22 %
21 %
Period-end deposits
300,806
296,171
290,789
286,174
291,163
2
3
Average deposits
294,448
291,486
287,457
285,647
278,772
1
6
Average deposits interest rate
3.15 %
3.06 %
2.85 %
2.46 %
1.96 %
9 bps
119 bps
Net charge-off rate
2.03
2.25
1.81
1.43
1.56
(22)
47
30+ day performing delinquency rate
5.21
6.25
5.55
5.30
4.92
(104)
29
30+ day delinquency rate
5.86
7.08
6.27
5.95
5.46
(122)
40
Nonperforming loan rate(4)
0.83
1.00
0.89
0.82
0.72
(17)
11
Nonperforming asset rate(5)
0.91
1.09
0.96
0.88
0.78
(18)
13
Auto-At origination FICO scores:(11)
Greater than 660
53 %
53 %
52 %
52 %
52 %
-
1 %
621 - 660
20
20
20
20
20
-
-
620 or below
27
27
28
28
28
-
(1)
Total
100 %
100 %
100 %
100 %
100 %
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12: Financial & Statistical Summary-Commercial Banking Business
2024 Q1 vs
(Dollars in millions, except as noted)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Commercial Banking
Earnings:
Net interest income
$ 599
$ 617
$ 621
$ 632
$ 648
(3) %
(8) %
Non-interest income
281
245
288
257
212
15
33
Total net revenue(7)
880
862
909
889
860
2
2
Provision (benefit) for credit losses
(2)
84
116
146
259
**
**
Non-interest expense
515
487
512
482
530
6
(3)
Income from continuing operations before income taxes
367
291
281
261
71
26
**
Income tax provision
87
68
67
61
17
28
**
Income from continuing operations, net of tax
$ 280
$ 223
$ 214
$ 200
$ 54
26
**
Selected performance metrics:
Period-end loans held for investment
$ 89,461
$ 90,488
$ 91,153
$ 91,552
$ 93,543
(1)
(4)
Average loans held for investment
89,877
91,025
91,556
93,195
94,092
(1)
(4)
Average yield on loans held for investment(1)(7)
7.14 %
7.24 %
7.16 %
6.75 %
6.31 %
(10) bps
83 bps
Period-end deposits
$ 31,082
$ 32,712
$ 36,035
$ 36,793
$ 38,380
(5) %
(19) %
Average deposits
31,844
34,525
37,279
37,960
39,941
(8)
(20)
Average deposits interest rate
2.65 %
2.79 %
2.93 %
2.68 %
2.34 %
(14) bps
31 bps
Net charge-off rate
0.13
0.53
0.25
1.62
0.09
(40)
4
Nonperforming loan rate(4)
1.28
0.84
0.90
0.89
0.79
44
49
Nonperforming asset rate(5)
1.28
0.84
0.90
0.89
0.79
44
49
Risk category:(12)
Noncriticized
$ 80,804
$ 81,758
$ 82,968
$ 84,583
$ 85,964
(1) %
(6) %
Criticized performing
7,509
7,969
7,363
6,158
6,839
(6)
10
Criticized nonperforming
1,148
761
822
811
740
51
55
Total commercial banking loans held for investment
$ 89,461
$ 90,488
$ 91,153
$ 91,552
$ 93,543
(1)
(4)
Risk category as a percentage of period-end loans held for investment:(12)
Noncriticized
90.33 %
90.35 %
91.02 %
92.38 %
91.90 %
(2) bps
(157) bps
Criticized performing
8.39
8.81
8.08
6.73
7.31
(42)
108
Criticized nonperforming
1.28
0.84
0.90
0.89
0.79
44
49
Total commercial banking loans
100.00 %
100.00 %
100.00 %
100.00 %
100.00 %
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Financial & Statistical Summary-Other and Total
2024 Q1 vs
(Dollars in millions)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2023
Q1
Other
Earnings:
Net interest loss
$ (394)
$ (280)
$ (445)
$ (515)
$ (479)
41 %
(18) %
Non-interest income (loss)
(2)
14
-
(6)
7
**
**
Total net loss(7)
(396)
(266)
(445)
(521)
(472)
49
(16)
Provision (benefit) for credit losses
-
(2)
2
1
-
**
-
Non-interest expense(13)
147
411
71
61
94
(64)
56
Loss from continuing operations before income taxes
(543)
(675)
(518)
(583)
(566)
(20)
(4)
Income tax benefit
(201)
(151)
(217)
(248)
(207)
33
(3)
Loss from continuing operations, net of tax
$ (342)
$ (524)
$ (301)
$ (335)
$ (359)
(35)
(5)
Selected performance metrics:
Period-end deposits
$ 19,081
$ 19,530
$ 19,187
$ 20,738
$ 20,284
(2)
(6)
Average deposits
19,365
19,317
20,277
20,071
21,410
-
(10)
Total
Earnings:
Net interest income
$ 7,488
$ 7,519
$ 7,423
$ 7,113
$ 7,186
-
4 %
Non-interest income
1,914
1,987
1,943
1,899
1,717
(4) %
11
Total net revenue
9,402
9,506
9,366
9,012
8,903
(1)
6
Provision for credit losses
2,683
2,857
2,284
2,490
2,795
(6)
(4)
Non-interest expense
5,137
5,717
4,860
4,794
4,945
(10)
4
Income from continuing operations before income taxes
1,582
932
2,222
1,728
1,163
70
36
Income tax provision
302
226
432
297
203
34
49
Income from continuing operations, net of tax
$ 1,280
$ 706
$ 1,790
$ 1,431
$ 960
81
33
Selected performance metrics:
Period-end loans held for investment
$ 315,154
$ 320,472
$ 314,780
$ 311,323
$ 308,836
(2)
2
Average loans held for investment
314,614
315,890
312,759
309,655
307,756
-
2
Period-end deposits
350,969
348,413
346,011
343,705
349,827
1
-
Average deposits
345,657
345,328
345,013
343,678
340,123
-
2
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6-13)
(1)
Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing. Average yield is calculated using whole dollar values for average balances and interest income/expense. Accordingly, total interest earning assets less total interest bearing liabilities may not total net interest income/spread.
(2)
Includes amounts related to entities that provide capital to low-income and rural communities of $1.9 billion and $1.7 billion for the first quarters of 2024 and 2023, respectively, and related interest expense of $8 million for both the first quarters of 2024 and 2023.
(3)
In December 2023, we recognized $18 million of incremental net charge-offs on certain loans in hardship programs from the one-time impact of operational delays, which increased the Q4 2023 net charge-off rate by approximately 5 basis points. Excluding this impact, the Q4 2023 net charge-off rate would have been 5.30%.
(4)
Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category. For Commercial Banking, loans categorized as nonperforming are considered criticized nonperforming.
(5)
Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.
Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.
(8)
Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.
(9)
Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.
(10)
Percentages represent period-end loans held for investment in each credit score category. Domestic Card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.
(11)
Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.
(12)
Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.
(13)
Includes the impact of the $42 million and $289 million FDIC special assessment in Q1 2024 and Q4 2023, respectively, and any charges incurred as a result of restructuring activities for the periods presented.
**
Not meaningful.
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1)
Basel III Standardized Approach
(Dollars in millions, except as noted)
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
March 31,
2023
Regulatory Capital Metrics
Common equity excluding AOCI
$ 63,088
$ 62,710
$ 62,245
$ 60,729
$ 59,546
Adjustments:
AOCI, net of tax(2)
14
27
(9)
31
(3)
Goodwill, net of related deferred tax liabilities
(14,804)
(14,811)
(14,797)
(14,813)
(14,538)
Other Intangible and deferred tax assets, net of deferred tax liabilities
(291)
(311)
(333)
(358)
(371)
Common equity Tier 1 capital
$ 48,007
$ 47,615
$ 47,106
$ 45,589
$ 44,634
Tier 1 capital
$ 52,852
$ 52,460
$ 51,952
$ 50,434
$ 49,479
Total capital(3)
59,483
59,124
58,844
57,607
56,611
Risk-weighted assets
366,046
369,206
362,962
359,613
356,079
Adjusted average assets(4)
468,030
467,553
464,286
459,732
455,477
Capital Ratios
Common equity Tier 1 capital(5)
13.1 %
12.9 %
13.0 %
12.7 %
12.5 %
Tier 1 capital(6)
14.4
14.2
14.3
14.0
13.9
Total capital(7)
16.3
16.0
16.2
16.0
15.9
Tier 1 leverage(4)
11.3
11.2
11.2
11.0
10.9
TCE(8)
8.1
8.2
7.3
7.6
7.6
Reconciliation of Non-GAAP Measures
The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results, however, they may not be comparable to similarly-titled measures reported by other companies. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.
(Dollars in millions, except per share data and as noted)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
Adjusted diluted earnings per share ("EPS"):
Net income available to common stockholders (GAAP)
$ 1,200
$ 639
$ 1,705
$ 1,351
$ 887
FDIC special assessment
42
289
-
-
-
Adjusted net income available to common stockholders before income tax impacts (non-GAAP)
1,242
928
1,705
1,351
887
Income tax impacts
(10)
(70)
-
-
-
Adjusted net income available to common stockholders (non-GAAP)
$ 1,232
$ 858
$ 1,705
$ 1,351
$ 887
Diluted weighted-average common shares outstanding (in millions) (GAAP)
383.4
382.8
383.3
383.7
383.8
Diluted EPS (GAAP)
$ 3.13
$ 1.67
$ 4.45
$ 3.52
$ 2.31
Impact of adjustments noted above
0.08
0.57
-
-
-
Adjusted diluted EPS (non-GAAP)
$ 3.21
$ 2.24
$ 4.45
$ 3.52
$ 2.31
Adjusted efficiency ratio:
Non-interest expense (GAAP)
$ 5,137
$ 5,717
$ 4,860
$ 4,794
$ 4,945
FDIC special assessment
(42)
(289)
-
-
-
Adjusted non-interest expense (non-GAAP)
$ 5,095
$ 5,428
$ 4,860
$ 4,794
$ 4,945
Total net revenue (GAAP)
$ 9,402
$ 9,506
$ 9,366
$ 9,012
$ 8,903
Efficiency ratio (GAAP)
54.64 %
60.14 %
51.89 %
53.20 %
55.54 %
Impact of adjustments noted above
(45) bps
(304) bps
-
-
-
Adjusted efficiency ratio (non-GAAP)
54.19 %
57.10 %
51.89 %
53.20 %
55.54 %
Adjusted operating efficiency ratio:
Operating expense (GAAP)
$ 4,127
$ 4,463
$ 3,888
$ 3,908
$ 4,048
FDIC special assessment
(42)
(289)
-
-
-
Adjusted operating expense (non-GAAP)
$ 4,085
$ 4,174
$ 3,888
$ 3,908
$ 4,048
Total net revenue (GAAP)
$ 9,402
$ 9,506
$ 9,366
$ 9,012
$ 8,903
Operating efficiency ratio (GAAP)
43.89 %
46.95 %
41.51 %
43.36 %
45.47 %
Impact of adjustments noted above
(44) bps
(304) bps
-
-
-
Adjusted operating efficiency ratio (non-GAAP)
43.45 %
43.91 %
41.51 %
43.36 %
45.47 %
Reconciliation of Non-GAAP Measures
The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following table presents reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.
(Dollars in millions)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
Pre- Provision Earnings
Total net revenue
$ 9,402
$ 9,506
$ 9,366
$ 9,012
$ 8,903
Non-interest expense
(5,137)
(5,717)
(4,860)
(4,794)
(4,945)
Pre-provision earnings(9)
$ 4,265
$ 3,789
$ 4,506
$ 4,218
$ 3,958
Tangible Common Equity (Period-End)
Stockholders' equity
$ 57,801
$ 58,089
$ 53,668
$ 54,559
$ 54,653
Goodwill and other intangible assets(10)
(15,257)
(15,289)
(15,308)
(15,356)
(15,098)
Noncumulative perpetual preferred stock
(4,845)
(4,845)
(4,845)
(4,845)
(4,845)
Tangible common equity(11)
$ 37,699
$ 37,955
$ 33,515
$ 34,358
$ 34,710
Tangible Common Equity (Average)
Stockholders' equity
$ 57,998
$ 55,632
$ 55,012
$ 55,357
$ 54,773
Goodwill and other intangible assets(10)
(15,280)
(15,304)
(15,348)
(15,187)
(14,984)
Noncumulative perpetual preferred stock
(4,845)
(4,845)
(4,845)
(4,845)
(4,845)
Tangible common equity(11)
$ 37,873
$ 35,483
$ 34,819
$ 35,325
$ 34,944
Return on Tangible Common Equity (Average)
Net income available to common stockholders
$ 1,200
$ 639
$ 1,705
$ 1,351
$ 887
Tangible common equity (Average)
37,873
35,483
34,819
35,325
34,944
Return on tangible common equity(11)(12)
12.67 %
7.20 %
19.59 %
15.30 %
10.15 %
Tangible Assets (Period-End)
Total assets
$ 481,720
$ 478,464
$ 471,435
$ 467,800
$ 471,660
Goodwill and other intangible assets(10)
(15,257)
(15,289)
(15,308)
(15,356)
(15,098)
Tangible assets(11)
$ 466,463
$ 463,175
$ 456,127
$ 452,444
$ 456,562
(Dollars in millions)
2024
Q1
2023
Q4
2023
Q3
2023
Q2
2023
Q1
Tangible Assets (Average)
Total assets
$ 474,995
$ 472,594
$ 469,860
$ 466,652
$ 462,324
Goodwill and other intangible assets(10)
(15,280)
(15,304)
(15,348)
(15,187)
(14,984)
Tangible assets(11)
$ 459,715
$ 457,290
$ 454,512
$ 451,465
$ 447,340
Return on Tangible Assets (Average)
Net income
$ 1,280
$ 706
$ 1,790
$ 1,431
$ 960
Tangible Assets (Average)
459,715
457,290
454,512
451,465
447,340
Return on tangible assets(11)(13)
1.11 %
0.62 %
1.58 %
1.27 %
0.86 %
TCE Ratio
Tangible common equity (Period-end)
$ 37,699
$ 37,955
$ 33,515
$ 34,358
$ 34,710
Tangible Assets (Period-end)
466,463
463,175
456,127
452,444
456,562
TCE Ratio(11)
8.1 %
8.2 %
7.3 %
7.6 %
7.6 %
Tangible Book Value per Common Share
Tangible common equity (Period-end)
$ 37,699
$ 37,955
$ 33,515
$ 34,358
$ 34,710
Outstanding Common Shares
382.1
380.4
381.0
381.4
382.0
Tangible book value per common share(11)
$ 98.67
$ 99.78
$ 87.97
$ 90.07
$ 90.86
__________
(1)
Regulatory capital metrics and capital ratios as of March 31, 2024 are preliminary and therefore subject to change.
(2)
Excludes certain components of AOCI in accordance with rules applicable to Category III institutions.
(3)
Total capital equals the sum of Tier 1 capital and Tier 2 capital.
(4)
Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.
(5)
Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.
(6)
Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(7)
Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.
(8)
TCE ratio is a Non-GAAP measure calculated based on TCE divided by tangible assets.
(9)
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.
(10)
Includes impact of related deferred taxes.
(11)
Management believes that this financial metric is useful in assessing capital adequacy and the level of returns generated.
(12)
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.
(13)
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.