Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q4 2024 Earnings Presentation
17 slides from Capital One Financial's earnings presentation, Jan 21, 2025
Slide 1: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results January 21, 2025 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained in Capital One’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Please note that
Slide 3: Q4 2024 Company Highlights
Q4 2024 Company Highlights • Net income of $1.1 billion, or $2.67 per diluted common share for the fourth quarter of 2024; net income of $4.8 billion, or $11.59 per diluted common share for full year 2024 ◦ Adjusted net income per diluted common share(1) of $3.09 for the fourth quarter of 2024 and $
Slide 4: Allowance for Credit Losses
Allowance for Credit Losses Credit Consumer Commercial Total Card Banking Banking (Dollars in millions) Allowance for credit losses: Balance as of September 30, 2024 $ 12,989 $ 2,015 $ 1,530 $ 16,534 Charge-offs (2,865) (755) (68) (3,688) Recoveries 497 296 11 804 Net charge-offs (2,368) (459) (57)
Slide 5: Allowance Coverage Ratios by Segment
Allowance Coverage Ratios by Segment Allowance for credit losses ($M) Branded Card 8.8% Allowance Coverage Ratio Credit Card Domestic Card $13,040 $12,560 $12,494 $12,494 $12,989 $12,974 $11,709 $11,754 $11,261 $11,298 $8,098 $7,673 8.47% 8.29% 7.98% 8.54% 8.36% 8.03% 7.58% 7.81% 7.63% 7.85% 6.31% 6
Slide 6: Liquidity
Liquidity Total Liquidity Reserves ($M)(1) Average Quarterly Liquidity Coverage Ratio ("LCR") 6 6% Q/Q 5 3% Y/Y 131,622 127,481 122,914 123,826 120,652 167% 90,557 164% 163% 155% 155% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q19 4Q23 1Q24 2Q24 3Q24 4Q24 Liquidity coverage ratio FHLB eligible loans Cash and cash eq
Slide 7: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Flat Q/Q NII 58% Y/Y NII $8,076 $8,098 $7,519 $7,488 $7,546 7.11% 7.03% 6.73% 6.69% 6.70% (1) (1) (1) 4Q23 1Q24 2Q24 3Q24 4Q24 Net Interest Income (NII) ($M) Net Interest Margin Fourth Quarter 2024 Highlights • Net interest margin decreased 8 basis points
Slide 8: Capital
Capital Amount Ratio Common Equity Tier 1 Capital Ratio (Dollars in millions) Common equity Tier 1 (“CET1”) as of September 30, $ 49,956 13.6% 2024 Q4 2024 Net income (loss) 1,096 30 bps 13.6% 13.5% Common & Preferred Stock Dividends(1) (290) (8)bps 12.9% 13.1% 13.2% Share Repurchases (150) (4)bps O
Slide 9: Financial Summary—Business Segment Results
Financial Summary—Business Segment Results Three Months Ended December 31, 2024 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income (loss) $ 5,779 $ 1,959 $ 587 $ (227) $ 8,098 Non-interest income (loss) 1,585 182 366 (41) 2,092 Total net revenue (lo
Slide 10: Credit Card
Credit Card 2024 Q4 Fourth Quarter 2024 Highlights 2024 2024 2023 2024 2023 (Dollars in millions, except as noted) Q4 Q3 Q4 Q3 Q4 • Ending loans held for investment up Earnings: $8.0 billion, or 5%, year-over-year; Net interest income $ 5,779 $ 5,743 $ 5,231 1% 10% average loans held for investment
Slide 11: Domestic Card
Domestic Card 2024 Q4 Fourth Quarter 2024 Highlights 2024 2024 2023 2024 2023 (Dollars in millions, except as noted) Q4 Q3 Q4 Q3 Q4 • Ending loans held for investment up Earnings: $8.0 billion, or 5%, year-over-year; Net interest income $5,474 $5,434 $4,940 1% 11% average loans held for investment u
Slide 12: Consumer Banking
Consumer Banking 2024 Q4 Fourth Quarter 2024 Highlights 2024 2024 2023 2024 2023 (Dollars in millions, except as noted) Q4 Q3 Q4 Q3 Q4 Earnings: • Ending loans held for investment up $2.7 billion or 4% year-over-year; average Net interest income $ 1,959 $ 2,028 $ 1,951 (3)% — loans held for investme
Slide 13: Commercial Banking
Commercial Banking 2024 Q4 Fourth Quarter 2024 Highlights 2024 2024 2023 2024 2023 (Dollars in millions, except as noted) Q4 Q3 Q4 Q3 Q4 Earnings: • Ending loans held for investment substantially flat quarter-over-quarter; Net interest income $ 587 $ 596 $ 617 (2)% (5)% average loans held for invest
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of Non-GAAP Measures
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
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 2024 2024 2024 2024 2023 Year Ended December 31, (Dollars in millions) Q4 Q3 Q2 Q1 Q4 2024 2023 Adjusted operating efficiency ratio: Operating expense (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,714 $
Slide 17: Commercial Office Real Estate Funded Balance
Commercial Office Real Estate LHFI ACL Coverage on LHFI $2,400 2,268 2,218 2,025 2,003 1,836 Funded Balance ($M) $1,800 $1,200 13.23% 12.37% 12.86% 11.73% 10.11% $600 $— Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Annualized Net charge-off rate for LHFI(1) 15.50 % 3.55 % 1.64 % 0.71 % 8.43 % Total criticized rate
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