Capital One(COF) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2024 was $597 million, a decrease of 53$9,506 million, a 1% increase from Q1 2024 and a 5% increase year-over-year[3]. - Net income available to common stockholders for Q2 2024 was $531 million, a 56$1.39, down 56% from Q1 2024 and down 61% year-over-year from Q2 2023[9]. - Diluted earnings per share for Q2 2024 was $1.38, a 56$651 million, down from $2,233 million in the same period last year[30]. - The company reported a net income of$1,280 million for the three months ended June 30, 2024, down from $2,391 million in the same period last year[32]. Revenue and Income Sources - Net interest income increased to$7,546 million, up 1% from Q1 2024 and 6% year-over-year[3]. - Non-interest income totaled $1,960 million, a 2$11,280 million, a 1% increase from Q1 2024 and a 13% increase year-over-year from Q2 2023[8]. - Total net revenue for the three months ended June 30, 2024, was $9,506 million, compared to$18,908 million for the same period in 2023, showing a significant decline[30]. Credit Losses and Provisions - Provision for credit losses rose significantly to $3,909 million, reflecting a 46$16,649 million in Q2 2024, up 8% from $15,380 million in Q1 2024[6]. - The provision for credit losses for the first half of 2024 was$6,621 million, which is higher than the $5,804 million recorded in the first half of 2023[27]. - Provision for credit losses significantly increased to$3,545 million in Q2 2024, up 57% from Q2 2023[34]. Assets and Liabilities - Total assets as of June 30, 2024, were $480,018 million, representing a 3$422,037 million in Q2 2024, showing a marginal decrease from $423,919 million in Q1 2024 and an increase of 2$413,241 million in Q2 2023[13]. - Total deposits reached $351,442 million in Q2 2024, a slight increase from$350,969 million in Q1 2024 and a 2% rise from $343,705 million in Q2 2023[13]. Operational Efficiency - Non-interest expense decreased to$4,946 million, down 4% from Q1 2024[3]. - The efficiency ratio improved to 52.03% in Q2 2024 from 54.64% in Q1 2024, indicating better operational efficiency[6]. - The operating efficiency ratio (GAAP) improved to 40.84% in Q2 2024 from 43.89% in Q1 2024 and 43.36% in Q2 2023[52]. Capital and Equity - Common equity increased to $53,135 million, a 7$59,876 million, a rise from $57,607 million year-over-year, indicating an increase of 3.9$3.36 billion in Q2 2024 compared to $3.33 billion in Q1 2024, an increase of$30 million[23]. Other Key Metrics - The number of employees at period-end increased to 52.1 thousand in Q2 2024, up 2% from 51.3 thousand in Q1 2024[6]. - The average yield on loans outstanding was 18.73% in Q2 2024, a decrease of 3 basis points from Q1 2024 and a decrease of 66 basis points from Q2 2023[36]. - The 30+ day delinquency rate was 6.05% in Q2 2024, an increase of 11 basis points from Q1 2024 and 167 basis points from Q2 2023[36].