Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q4 2021 Earnings Presentation
16 slides from Capital One Financial's earnings presentation, Jan 25, 2022
Slide 1: Fourth Quarter 2021 Results
Fourth Quarter 2021 Results January 25, 2022 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Please note that the following materials containing information regarding Capital One’s financial performance speak only as of the particular date or dates indicated in these materials. Capital One does not undertake any obligation to update or revise any of the informatio
Slide 3: Q4 2021 Company Highlights
Q4 2021 Company Highlights • Net income of $2.4 billion, or $5.41 per diluted common share for the fourth quarter of 2021; net income of $12.4 billion, or $26.94 per diluted common share for the full year 2021 • Pre-provision earnings decreased 6% to $3.4 billion for the fourth quarter of 2021 and i
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, 2021 $ 8,306 $ 2,061 $ 1,206 $ 11,573 Charge-offs (786) (345) (1) (1,132) Recoveries 400 200 5 605 Net charge-offs (386) (145) 4 (527) Prov
Slide 5: Allowance Coverage Ratios by Segment
Allowance Coverage Ratios by Segment Allowance for credit losses ($M) Allowance Coverage Ratio Credit Card Domestic Card Branded Card 8.3% $12,091 $11,612 $11,569 $11,191 $11,062 $10,650 $10,346 $10,072 $9,806 $9,572 $8,873 $8,489 $8,098 $8,306 $8,345 11.64% 11.58% $7,968 $7,968 11.27% 11.20% $7,673
Slide 6: Liquidity
Liquidity Total Liquidity Reserves ($M) Liquidity Coverage Ratio 6(7)% Q/Q 6 (19)% Y/Y $151,183 $143,992 $136,958 $124,393 $116,234 145% 143% 139% 141% 139% 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 Available FHLB capacity Cash and cash equivalents Liquidity coverage ratio Unencumbered inves
Slide 7: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin 55% Q/Q 510% Y/Y $6,450 $6,156 $5,873 $5,822 $5,743 6.60% 6.35% 6.05% 5.99% 5.89% 4Q20 1Q21 2Q21 3Q21 4Q21 Net Interest Income ($M) Net Interest Margin Fourth Quarter 2021 Highlights • Net interest margin increased 25 basis points quarter-over-quarter prim
Slide 8: Capital
Capital Common Equity Tier 1 Capital Ratio Amount Ratio (Dollars in millions) Common equity Tier 1 (CET1) as of September 30, 2021 $ 44,138 13.8% Q4 2021 Net income 2,425 70 bps CECL Transition Provisions (36) — bps 14.6% 14.5% 13.7% 13.8% 13.1% Share Repurchases (2,644) (80)bps Other quarterly acti
Slide 9: Financial Summary—Business Segment Results
Financial Summary—Business Segment Results Three Months Ended December 31, 2021 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income (loss) $ 3,865 $ 2,158 $ 595 $ (168) $ 6,450 Non-interest income (loss) 1,261 142 345 (80) 1,668 Total net revenue (lo
Slide 10: Credit Card
Credit Card 2021 Q4 vs. Fourth Quarter 2021 Highlights 2021 2021 2020 2021 2020 (Dollars in millions, except as noted) Q4 Q3 Q4 Q3 Q4 Earnings: • Ending loans held for investment up $7.8 billion, or 7%, year-over-year; Net interest income $ 3,865 $ 3,620 $ 3,413 7 % 13 % average loans held for inves
Slide 11: Domestic Card
Domestic Card 2021 Q4 vs. Fourth Quarter 2021 Highlights 2021 2021 2020 2021 2020 (Dollars in millions, except as noted) Q4 Q3 Q4 Q3 Q4 Earnings: • Ending loans held for investment up $10.2 billion, or 10%, year-over-year; Net interest income $ 3,558 $ 3,319 $ 3,129 7 % 14 % average loans held for i
Slide 12: Consumer Banking
Consumer Banking 2021 Q4 vs. Fourth Quarter 2021 Highlights 2021 2021 2020 2021 2020 (Dollars in millions, except as noted) Q4 Q3 Q4 Q3 Q4 Earnings: • Ending loans held for investment up $8.8 Net interest income $ 2,158 $ 2,159 $ 2,012 — % 7 % billion, or 13%, year-over-year; average loans held for
Slide 13: Commercial Banking
Commercial Banking 2021 Q4 vs. Fourth Quarter 2021 Highlights 2021 2021 2020 2021 2020 (Dollars in millions, except as noted) Q4 Q3 Q4 Q3 Q4 Earnings: • Ending loans held for investment up $9.1 billion, or 12%, year-over-year; average Net interest income $ 595 $ 578 $ 522 3 % 14 % loans held for inv
Slide 14: Appendix
Appendix 14
Slide 15: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 2021 2020 Year Ended December 31, (Dollars in millions, except per share data and as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2021 2020 Adjusted diluted EPS: Net income (loss) available to common stockholders (GAAP) . . $ 2,296 $ 2,987 $ 3,446 $ 3,236 $ 2,462 $ 2,319 $ (1,0
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 2021 2020 Year Ended December 31, (Dollars in millions, except per share data and as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2021 2020 Adjusted operating efficiency ratio: Operating expense (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,679 $ 3,435 $
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