Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q1 2024 Earnings Presentation
17 slides from Capital One Financial's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Results
First Quarter 2024 Results April 25, 2024 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: Q1 2024 Company Highlights
Q1 2024 Company Highlights • Net income of $1.3 billion, or $3.13 per diluted common share ◦ Adjusted net income per diluted common share(1) of $3.21 • Pre-provision earnings(1) increased 13% to $4.3 billion • Provision for credit losses of $2.7 billion • Efficiency ratio of 54.64% ◦ Adjusted effici
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 December 31, 2023 $ 11,709 $ 2,042 $ 1,545 $ 15,296 Charge-offs (2,574) (660) (39) (3,273) Recoveries 367 280 10 657 Net charge-offs (2,207) (380) (29) (
Slide 5: Allowance Coverage Ratios by Segment
Allowance Coverage Ratios by Segment Allowance for credit losses ($M) Allowance Coverage Ratio Branded Card 8.7% Credit Card Domestic Card $11,324 $11,709 $11,754 $11,298 $10,976 $10,925 $11,261 $10,410 $10,576 $10,032 $8,098 $7,673 7.59% 7.70% 7.71% 7.58% 7.81% 7.66% 7.78% 7.79% 7.63% 7.85% 6.31% 6
Slide 6: Liquidity
Liquidity Total Liquidity Reserves ($M)(1) Average Quarterly Liquidity Coverage Ratio ("LCR") 56% Q/Q 5 1% Y/Y $126,697 $127,481 $117,963 $118,352 $120,652 167% $90,557 164% 155% 148% 150% 1Q23 2Q23 3Q23 4Q23 1Q24 4Q19 1Q23 2Q23 3Q23 4Q23 1Q24 Liquidity coverage ratio FHLB eligible loans Cash and ca
Slide 7: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Flat Q/Q NII 54% Y/Y NII $7,423 $7,519 $7,488 $7,186 $7,113 6.60% 6.69% 6.73% 6.69% 6.48% 1Q23 2Q23 3Q23 4Q23 1Q24 Net Interest Income (NII) ($M) Net Interest Margin First Quarter 2024 Highlights • Net interest margin decreased 4 basis points quarter-over-
Slide 8: Capital
Capital Amount Ratio Common Equity Tier 1 Capital Ratio (Dollars in millions) Common equity Tier 1 (“CET1”) as of December 31, $ 47,615 12.9% 2023 Q1 2024 Net income 1,280 35 bps CECL Transition Provisions (599) (16)bps 13.0% 12.9% 13.1% 12.5% 12.7% Common & Preferred Stock Dividends(1) (295) (8)bps
Slide 9: Financial Summary—Business Segment Results
Financial Summary—Business Segment Results Three Months Ended March 31, 2024 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income (loss) $ 5,272 $ 2,011 $ 599 $ (394) $ 7,488 Non-interest income (loss) 1,476 159 281 (2) 1,914 Total net revenue (loss)
Slide 10: Credit Card
Credit Card 2024 Q1 First Quarter 2024 Highlights 2024 2023 2023 2023 2023 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 • Ending loans held for investment up Earnings: $13.5 billion, or 10%, year-over-year; Net interest income $ 5,272 $ 5,231 $ 4,657 1% 13% average loans held for investment
Slide 11: Domestic Card
Domestic Card 2024 Q1 First Quarter 2024 Highlights 2024 2023 2023 2023 2023 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 • Ending loans held for investment up Earnings: $12.9 billion, or 10%, year-over-year; Net interest income $ 4,972 $ 4,940 $ 4,390 1% 13% average loans held for investme
Slide 12: Consumer Banking
Consumer Banking 2024 Q1 First Quarter 2024 Highlights 2024 2023 2023 2023 2023 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 • Ending loans held for investment down Earnings: $3.1 billion, or 4%, year-over-year; Net interest income $ 2,011 $ 1,951 $ 2,360 3% (15)% average loans held for inv
Slide 13: Commercial Banking
Commercial Banking 2024 Q1 2024 2023 2023 2023 2023 First Quarter 2024 Highlights (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans held for investment down $1.0 Net interest income $ 599 $ 617 $ 648 (3)% (8)% billion, or 1%, quarter-over-quarter; average loans held for
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 2023 2023 2023 2023 (Dollars in millions) Q1 Q4 Q3 Q2 Q1 Adjusted operating efficiency ratio: Operating expense (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,127
Slide 17: Commercial Office Real Estate ACL Coverage %
Commercial Office Real Estate LHFI ACL Coverage on LHFI $4,000 50.00% $3,643 40.00% Funded Balance ($M) $3,000 $2,577 $2,425 ACL Coverage % $2,268 $2,218 30.00% $2,000 20.00% 13.87% 13.36% 13.23% 12.37% 11.05% $1,000 10.00% $— —% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Annualized Net charge-off rate for LHFI(
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