Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q3 2021 Earnings Presentation
16 slides from Capital One Financial's earnings presentation, Oct 26, 2021
Slide 1: Third Quarter 2021 Results
Third Quarter 2021 Results October 26, 2021 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: Q3 2021 Company Highlights
Q3 2021 Company Highlights • Net income for the third quarter of 2021 of $3.1 billion, or $6.78 per diluted common share ◦ Excluding adjusting items, net income per diluted common share of $6.86 • Pre-provision earnings increased 7% to $3.6 billion (1) • Provision for credit losses of $(342) million
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 June 30, 2021 $ 8,873 $ 2,203 $ 1,270 $ 12,346 Charge-offs (735) (264) (20) (1,019) Recoveries 369 213 11 593 Net charge-offs (366) (51) (9) (426) Provis
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 9.1% $12,091 $11,569 $11,612 $11,062 $11,191 $10,650 $10,346 $10,072 $9,806 $9,572 $8,873 $8,489 $8,098 $8,306 11.64% 11.58% $7,968 11.27% 11.20% $7,673 10.81% 10.46%
Slide 6: Liquidity
Liquidity Total Liquidity Reserves ($M) Liquidity Coverage Ratio 6(9)% Q/Q 6 (16)% Y/Y $148,431 $151,183 $143,992 $136,958 $124,393 147% 145% 141% 143% 139% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 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 57% Q/Q 511% Y/Y $6,156 $5,873 $5,822 $5,743 $5,555 6.35% 6.05% 5.99% 5.89% 5.68% 3Q20 4Q20 1Q21 2Q21 3Q21 Net Interest Income ($M) Net Interest Margin Third Quarter 2021 Highlights • Net interest margin increased 46 basis points quarter-over-quarter prima
Slide 8: Capital
Capital Common Equity Tier 1 Capital Ratio Amount Ratio (Dollars in millions) Common equity Tier 1 (CET1) as of June 30, 2021 $ 44,432 14.5% Q3 2021 Net income 3,104 100 bps CECL Transition Provisions (193) (10)bps 14.6% 14.5% 13.7% 13.8% 13.0% Share Repurchases (2,704) (90)bps Other quarterly activ
Slide 9: Financial Summary—Business Segment Results
Financial Summary—Business Segment Results Three Months Ended September 30, 2021 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income (loss) $ 3,620 $ 2,159 $ 578 $ (201) $ 6,156 Non-interest income (loss) 1,263 127 306 (22) 1,674 Total net revenue (l
Slide 10: Credit Card
Credit Card 2021 Q3 vs. Third Quarter 2021 Highlights 2021 2021 2020 2021 2020 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans held for investment up $1.4 billion, or 1%, year-over-year; Net interest income $ 3,620 $ 3,217 $ 3,292 13 % 10 % average loans held for inves
Slide 11: Domestic Card
Domestic Card 2021 Q3 vs. Third Quarter 2021 Highlights 2021 2021 2020 2021 2020 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans held for investment up $3.7 billion, or 4%, year-over-year; Net interest income $ 3,319 $ 2,944 $ 2,995 13 % 11 % average loans held for inv
Slide 12: Consumer Banking
Consumer Banking 2021 Q3 vs. Third Quarter 2021 Highlights 2021 2021 2020 2021 2020 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans held for investment up $8.4 Net interest income $ 2,159 $ 2,101 $ 1,904 3 % 13 % billion, or 12%, year-over-year; average loans held for
Slide 13: Commercial Banking
Commercial Banking 2021 Q3 vs. Third Quarter 2021 Highlights 2021 2021 2020 2021 2020 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans held for investment up $3.4 billion, or 4%, year-over-year; average Net interest income $ 578 $ 460 $ 517 26 % 12 % loans held for inve
Slide 14: Appendix
Appendix 14
Slide 15: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Nine Months Ended 2021 2020 September 30, (Dollars in millions, except per share data and as noted) Q3 Q2 Q1 Q3 Q2 Q1 2021 2020 Adjusted diluted EPS: Net income (loss) available to common stockholders (GAAP) . . . . . . . . . . . . . . . . . . . . . . $ 2,987 $ 3,
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Nine Months Ended 2021 2020 September 30, (Dollars in millions, except per share data and as noted) Q3 Q2 Q1 Q3 Q2 Q1 2021 2020 Adjusted operating efficiency ratio: Operating expense (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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