Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q1 2021 Earnings Presentation
15 slides from Capital One Financial's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Results
First Quarter 2021 Results April 27, 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: Q1 2021 Company Highlights
Q1 2021 Company Highlights • Net income of $3.3 billion, or $7.03 per diluted common share • Pre-provision earnings increased 1% to $3.4 billion(1) • Provision for credit losses of $(823) million • Efficiency ratio of 52.58% • Operating efficiency ratio of 45.54% • There were no adjusting items this
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, 2020 $ 11,191 $ 2,715 $ 1,658 $ 15,564 Charge-offs (993) (342) (19) (1,354) Recoveries 360 251 3 614 Net charge-offs (633) (91) (16) (740) P
Slide 5: Allowance Coverage Ratios by Segment
Allowance Coverage Ratios by Segment Allowance for credit losses ($M) Allowance Coverage Ratio Branded Card 12.1% Credit Card Domestic Card $12,091 $11,569 $11,612 $11,062 $11,191 $10,650 $10,346 $10,072 $9,806 $9,572 $8,098 $7,673 11.64% 11.58% 11.27% 11.20% 10.81% 10.46% 10.16% 10.51% 8.78% 8.95%
Slide 6: Liquidity
Liquidity Total Liquidity Reserves ($M) Liquidity Coverage Ratio 55% Q/Q 5 43% Y/Y $149,146 $148,431 $151,183 $143,992 $105,906 145% 146% 147% 145% 139% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Available FHLB capacity Cash and cash equivalents Liquidity coverage ratio Unencumbered investmen
Slide 7: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin 61% Q/Q 63% Y/Y $6,025 $5,873 $5,822 $5,555 $5,460 6.78% 6.05% 5.99% 5.78% 5.68% 1Q20 2Q20 3Q20 4Q20 1Q21 Net Interest Income ($M) Net Interest Margin First Quarter 2021 Highlights • Net interest margin decreased 6 basis points quarter-over-quarter primari
Slide 8: Capital
Capital Common Equity Tier 1 Capital Ratio Amount Ratio (Dollars in millions) Common equity Tier 1 (CET1) as of December 31, 2020 $ 40,736 13.7% Q1 2021 Net income 3,325 110 bps 14.6% CECL Transition Provisions (389) (10)bps 13.7% 13.0% Share Repurchases (490) (20)bps 12.4% 12.0% Other quarterly act
Slide 9: Financial Summary—Business Segment Results
Financial Summary—Business Segment Results Three Months Ended March 31, 2021 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income (loss) $ 3,372 $ 2,030 $ 520 $ (100) $ 5,822 Non-interest income (loss) 1,029 141 240 (119) 1,291 Total net revenue (loss
Slide 10: Credit Card
Credit Card 2021 Q1 vs. First Quarter 2021 Highlights 2021 2020 2020 2020 2020 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans down $18.7 billion, or 16%, year-over-year; average loans Net interest income $ 3,372 $ 3,413 $ 3,702 (1) % (9) % down $22.2 billion, or 18%,
Slide 11: Domestic Card
Domestic Card 2021 Q1 vs. First Quarter 2021 Highlights 2021 2020 2020 2020 2020 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans down $18.5 billion, or 17%, year-over-year; average loans Net interest income $ 3,095 $ 3,129 $ 3,381 (1) % (8) % down $21.1 billion, or 19%
Slide 12: Consumer Banking
Consumer Banking 2021 Q1 vs. First Quarter 2021 Highlights 2021 2020 2020 2020 2020 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans up $6.2 billion, or 10%, Net interest income $ 2,030 $ 2,012 $ 1,657 1 % 23 % year-over-year; average loans up $5.6 billion, or 9%, year-
Slide 13: Commercial Banking
Commercial Banking 2021 Q1 vs. First Quarter 2021 Highlights 2021 2020 2020 2020 2020 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans down $7.4 billion, or 9%, year-over-year; average loans down $2.3 Net interest income $ 520 $ 522 $ 491 — 6 % billion, or 3%, year-over
Slide 14: Appendix
Appendix 14
Slide 15: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 2021 2020 2020 (Dollars in millions, except per share data and as noted) Q1 Q4 Q1 Adjusted diluted EPS: Net income (loss) available to common stockholders (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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