Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q3 2024 Earnings Presentation
17 slides from Capital One Financial's earnings presentation, Oct 24, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results October 24, 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: Q3 2024 Company Highlights
Q3 2024 Company Highlights • Net income of $1.8 billion, or $4.41 per diluted common share ◦ Adjusted net income per diluted common share(1) of $4.51 • Pre-provision earnings(1) increased 3% to $4.7 billion • Provision for credit losses of $2.5 billion • Efficiency ratio of 53.07% ◦ Adjusted efficie
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, 2024 $ 13,040 $ 2,065 $ 1,544 $ 16,649 Charge-offs (2,632) (707) (88) (3,427) Recoveries 478 306 39 823 Net charge-offs (2,154) (401) (49) (2,60
Slide 5: Allowance Coverage Ratios by Segment
Allowance Coverage Ratios by Segment Allowance for credit losses ($M) Branded Card(1) 9.0% Allowance Coverage Ratio Credit Card Domestic Card $13,040 $12,560 $12,494 $12,989 $11,709 $11,754 $10,925 $11,261 $11,298 $11,324 $8,098 $7,673 8.47% 8.29% 8.54% 8.36% 7.71% 7.58% 7.81% 7.79% 7.63% 7.85% 6.31
Slide 6: Liquidity
Liquidity Total Liquidity Reserves ($M)(1) Average Quarterly Liquidity Coverage Ratio ("LCR") 5 7% Q/Q 5 11% Y/Y $131,622 $127,481 $120,652 $122,914 $118,352 167% $90,557 164% 163% 155% 155% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q19 3Q23 4Q23 1Q24 2Q24 3Q24 Liquidity coverage ratio FHLB eligible loans Cash and
Slide 7: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin 57% Q/Q NII 59% Y/Y NII $8,076 $7,423 $7,519 $7,488 $7,546 7.11% 6.69% 6.73% 6.69% 6.70% (1) (1) 3Q23 4Q23 1Q24 2Q24 3Q24 Net Interest Income (NII) ($M) Net Interest Margin Third Quarter 2024 Highlights • Net interest margin increased 41 basis points quart
Slide 8: Capital
Capital Amount Ratio Common Equity Tier 1 Capital Ratio (Dollars in millions) Common equity Tier 1 (“CET1”) as of June 30, 2024 $ 48,377 13.2% Q3 2024 Net income 1,777 48 bps 13.6% Common & Preferred Stock Dividends(1) (290) (8)bps 13.0% 12.9% 13.1% 13.2% Share Repurchases (150) (4)bps Other quarter
Slide 9: Financial Summary—Business Segment Results
Financial Summary—Business Segment Results Three Months Ended September 30, 2024 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income (loss) $ 5,743 $ 2,028 $ 596 $ (291) $ 8,076 Non-interest income (loss) 1,509 182 292 (45) 1,938 Total net revenue (l
Slide 10: Credit Card
Credit Card 2024 Q3 Third Quarter 2024 Highlights 2024 2024 2023 2024 2023 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 • Ending loans held for investment up Earnings: $9.9 billion, or 7%, year-over-year; Net interest income $ 5,743 $ 5,294 $ 5,114 8% 12% average loans held for investment u
Slide 11: Domestic Card
Domestic Card 2024 Q3 Third Quarter 2024 Highlights 2024 2024 2023 2024 2023 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 • Ending loans held for investment up Earnings: $9.1 billion, or 6%, year-over-year; Net interest income $5,434 $5,001 $4,827 9% 13% average loans held for investment up
Slide 12: Consumer Banking
Consumer Banking 2024 Q3 Third Quarter 2024 Highlights 2024 2024 2023 2024 2023 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans held for investment substantially flat year-over-year; average Net interest income $ 2,028 $ 2,025 $ 2,133 — (5)% loans held for investment d
Slide 13: Commercial Banking
Commercial Banking 2024 Q3 Third Quarter 2024 Highlights 2024 2024 2023 2024 2023 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans held for investment down $1.8 billion, or 2%, quarter-over-quarter; Net interest income $ 596 $ 609 $ 621 (2)% (4)% 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 Nine Months Ended 2024 2024 2024 2023 2023 September 30, (Dollars in millions) Q3 Q2 Q1 Q4 Q3 2024 2023 Adjusted operating efficiency ratio: Operating expense (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Slide 17: Commercial Office Real Estate Funded Balance
Commercial Office Real Estate LHFI ACL Coverage on LHFI $3,200 $2,425 $2,400 $2,268 $2,218 Funded Balance ($M) $2,025 $2,003 $1,600 13.36% 13.23% 12.37% 12.86% 11.73% $800 $— Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Annualized Net charge-off rate for LHFI(1) 3.73 % 15.50 % 3.55 % 1.64 % 0.71 % Total criticized
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