Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q1 2020 Earnings Presentation
16 slides from Capital One Financial's earnings presentation, Apr 23, 2020
Slide 1: First Quarter 2020 Results
First Quarter 2020 Results April 23, 2020 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: Company Highlights
Company Highlights • Net loss for the first quarter of 2020 of $1.3 billion, or $3.10 per diluted common share ◦ Excluding adjusting items, net loss per diluted common share for the first quarter of 2020 of $3.02 (1) • Pre-provision earnings increased 8% to $3.5 billion for the first quarter of 2020
Slide 4: Allowance and Provision for Credit Losses
Allowance and Provision for Credit Losses Credit Consumer Commercial Total Card Banking Banking (Dollars in millions) Allowance for credit losses: Balance as of December 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,395 $ 1,038 $ 775 $ 7,208 CECL adoption. . . . . . . .
Slide 5: Allowance Coverage Ratios by Segment
Allowance Coverage Ratios by Segment (1) Credit Card Domestic Card $10,346 $9,806 $8,098 $7,673 $5,395 $4,997 8.78% 8.95% 6.31% 6.47% 4.21% 4.21% 12/31/19 01/01/20 03/31/20 12/31/19 01/01/20 03/31/20 Allowance for credit losses ($M) Allowance Coverage Ratio Allowance for credit losses ($M) Allowance
Slide 6: Liquidity
Liquidity Liquidity Coverage Ratio Total Liquidity Reserves ($M) 517% Q/Q 53% Y/Y $103,193 $103,565 $105,906 $99,544 $90,557 146% 145% 141% 141% 138% 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Liquidity coverage ratio Unencumbered investment securities Cash and cash equivalents Available FHLB
Slide 7: Capital
Capital Amount Ratio (Dollars in millions) Common Equity Tier 1 Capital Ratio Common equity Tier 1 (CET1) as of December 31, 2019 $ 38,162 12.2% Q1 2020 Net loss (1,340) (43)bps 12.3% 12.5% Adjustments: 12.2% 11.9% 12.0% 25% of Q1 2020 allowance build deferral (pre-tax) 907 29 AOCI opt-out (920) (29
Slide 8: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin $6,066 $6,025 61% Q/Q $5,791 $5,746 $5,737 54% Y/Y 6.86% 6.95% 6.80% 6.73% 6.78% 1Q19 2Q19 3Q19 4Q19 1Q20 Net Interest Income ($M) Net Interest Margin First Quarter 2020 Highlights • Net interest margin decreased 17 basis points quarter-over-quarter primar
Slide 9: Financial Summary—Business Segment Results
Financial Summary—Business Segment Results Three Months Ended March 31, 2020 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income $ 3,702 $ 1,657 $ 491 $ 175 $ 6,025 Non-interest income (loss) 911 126 238 (51) 1,224 Total net revenue 4,613 1,783 729 1
Slide 10: Credit Card
Credit Card 2020 Q1 vs. First Quarter 2020 Highlights 2020 2019 2019 2019 2019 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans up $8.0 billion, or 7%, year-over-year; average loans up $11.3 Net interest income $ 3,702 $ 3,794 $ 3,590 (2)% 3% billion, or 10%, year-over-
Slide 11: Domestic Card
Domestic Card 2020 Q1 vs. First Quarter 2020 Highlights 2020 2019 2019 2019 2019 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans up $8.5 billion, or 8%, year- over-year; average loans up $11.0 billion, Net interest income $ 3,381 $ 3,473 $ 3,273 (3)% 3% or 11%, year-ov
Slide 12: Consumer Banking
Consumer Banking 2020 Q1 vs. First Quarter 2020 Highlights 2020 2019 2019 2019 2019 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans up $4.8 billion, or 8%, year- Net interest income $ 1,657 $ 1,662 $ 1,679 — (1)% over-year; average loans up $4.6 billion, or 8%, year-ov
Slide 13: Commercial Banking
Commercial Banking 2020 Q1 vs. First Quarter 2020 Highlights 2020 2019 2019 2019 2019 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans up $10.0 billion, or 14%, Net interest income $ 491 $ 494 $ 489 (1)% — year-over-year; average loans up $5.0 billion, or 7%, year-over-
Slide 14: Appendix
Appendix 14
Slide 15: Non-GAAP Measures
Non-GAAP Measures Three Months Ended Three Months Ended Three Months Ended March 31, 2020 December 31, 2019 March 31, 2019 Reported Adjusted Reported Adjusted Reported Adjusted (Dollars in millions, except per share data and as noted) Results Adj.(1) Results Results Adj.(1) Results Results Adj.(1) R
Slide 16: Commercial Oil and Gas Portfolio
Commercial Oil and Gas Portfolio Total Exposure ($M) Exploration and production 72% Total Reserves ($M) Midstream and other 26% Oilfield services 2% $7,503 $7,624 $7,481 $603 $6,853 ($ in millions) 1Q19 2Q19 3Q19 4Q19 1Q20 $6,237 Allowance for $ 103 $ 136 $ 154 $ 187 $ 549 $3,806 Credit Losses $3,84
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