Capital One(COF) - 2024 Q3 - Quarterly Results

Financial Performance - Net interest income for Q3 2024 was $8,076 million, a 9% increase from Q3 2023's$ 7,423 million[2] - Total net revenue reached $10,014 million in Q3 2024, up 7% from$ 9,366 million in Q3 2023[2] - Net income available to common stockholders was $1,692 million in Q3 2024, a 1% decrease from$ 1,705 million in Q3 2023[2] - Basic earnings per common share for Q3 2024 was $4.42, down 1% from$ 4.46 in Q3 2023[2] - Total net revenue for Q3 2024 reached $10,014 million, an increase from$ 9,506 million in Q2 2024, representing a growth of 5.3%[44] Credit Losses and Provisions - Provision for credit losses decreased by 37% to $2,482 million in Q3 2024, compared to$ 2,284 million in Q3 2023[2] - The provision for credit losses was $2,482 million, a decrease of 37% from Q2 2024[7] - Provision for credit losses for total consumer banking was$ 2,084 million, indicating a proactive approach to managing credit risk[23] - Provision for credit losses decreased to $2,084 million in Q3 2024, down 41% from Q3 2023[29] Expenses - Non-interest expense rose by 7% to$ 5,314 million in Q3 2024, compared to $4,860 million in Q3 2023[2] - Marketing expenses increased by 5% to$ 1,113 million in Q3 2024, compared to $972 million in Q3 2023[2] - Non-interest expense for Q3 2024 was$ 5,314 million, a 7% increase compared to $4,860 million in Q3 2023[37] - Non-interest expense for the same period was$ 4,946 million, reflecting ongoing operational costs[25] Assets and Liabilities - Total assets grew to $486,433 million, a 1% increase from Q2 2024 and a 3% increase year-over-year[3] - Total liabilities rose to$ 423,508 million in Q3 2024, up from $422,037 million in Q2 2024, indicating a slight increase[11] - Total deposits reached$ 353,631 million in Q3 2024, compared to $351,442 million in Q2 2024, marking a 1% increase[11] - Total interest-earning assets rose to$ 458,189 million, reflecting a 1% increase from Q2 2024 and a 3% increase compared to Q3 2023[3] Equity and Capital Ratios - Common equity increased to $58,080 million, a 9% increase from Q2 2024 and a 19% increase year-over-year[3] - Common equity Tier 1 capital ratio increased to 13.6%, up 40 basis points from Q2 2024[5] - Total stockholders' equity increased to$ 62,925 million in Q3 2024 from $57,981 million in Q2 2024, a 9% increase[11] - Common equity Tier 1 capital increased to$ 49,956 million as of September 30, 2024, up from $47,106 million a year earlier, reflecting a growth of 3.9%[40] Efficiency and Profitability - Efficiency ratio improved to 53.07%, compared to 52.03% in Q2 2024[5] - The efficiency ratio improved to 53.07% in Q3 2024, down from 60.14% in Q3 2023, indicating enhanced operational efficiency[43] - Return on average common equity reached 11.99%, up from 3.99% in Q2 2024[5] - The return on tangible common equity (average) for Q3 2024 was 16.42%, significantly higher than 5.59% in Q2 2024, showcasing improved profitability[47] Loan Performance - Loans held for investment increased to$ 320,243 million, a 1% increase from Q2 2024 and a 2% increase year-over-year[3] - Domestic credit card loans reached $149,400 million in Q3 2024, reflecting a 2% increase from Q2 2024 and a 6% increase year-over-year[18] - The net charge-off rate for domestic credit cards was 5.61% in Q3 2024, a decrease of 44 basis points from Q2 2024[20] - Average yield on loans outstanding improved to 19.66% in Q3 2024, up 87 basis points from Q3 2023[29] Non-Interest Income - Non-interest income totaled$ 1,938 million, a decrease of 1% from Q2 2024 but a 5% increase compared to Q3 2023[7] - Non-interest income for the three months ended September 30, 2023, was $1,938 million, contributing to overall revenue growth[26] - Non-interest income remained stable at$ 1,438 million, showing no significant change from the previous quarter[31] Charge-Offs - Net charge-offs were $2,604 million, a decrease of 2% from Q2 2024[5] - The total net charge-offs for Q3 2024 were 3.27%, an increase of 71 basis points compared to Q3 2023[20] - Net charge-offs for the total credit card segment were$ (2,154) million, reflecting a significant increase in charge-offs compared to previous periods[23] Other Key Metrics - The company reported a total of $30,460 million in loans for the nine months ended September 30, 2024, an 11% increase from the same period in 2023[7] - The termination of the Walmart program increased net interest margin by 22 basis points in Q3 2024, resulting in a net interest margin of 6.89%[38] - The average deposit interest rate increased by 48 basis points to 3.33% in Q3 2024 from 2.85% in Q3 2023[33]