Capital One Financial Corp. Files Q2 2024 10-Q Report

TL;DR

COF Q2 10-Q filed. Official numbers out.

AI Summary

Capital One Financial Corp. reported its Q2 2024 results on August 1, 2024. The company's filing covers the period ending June 30, 2024. Specific financial details and performance metrics for the quarter are detailed within the report.

Why It Matters

This 10-Q filing provides investors and analysts with the official financial performance and position of Capital One Financial Corp. for the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing and does not inherently present new risks.

Key Players & Entities

• Capital One Financial Corp. (company) — Filer of the 10-Q report
• 0000927628-24-000264.txt (document) — Accession number for the filing
• 20240630 (date) — End of the reporting period
• 20240801 (date) — Filing date

FAQ

Key Financial Figures

• $20 million — companies with annual revenues between $20 million and $2 billion. 4 Capital One Financ
• $2 billion — annual revenues between $20 million and $2 billion. 4 Capital One Financial Corporation
• $8.5 billion — credit card portfolio of approximately $8.5 billion of loans. The Company expects to begin
• $597 million — l Highlights We reported net income of $597 million ($1.38 per diluted common share) on tot
• $1.38 — We reported net income of $597 million ($1.38 per diluted common share) on total net
• $9.5 billion — d common share) on total net revenue of $9.5 billion and net income of $1.9 billion ($4.51 p
• $1.9 billion — venue of $9.5 billion and net income of $1.9 billion ($4.51 per diluted common share) on tot
• $4.51 — billion and net income of $1.9 billion ($4.51 per diluted common share) on total net
• $18.9 billion — d common share) on total net revenue of $18.9 billion for the second quarter and first six mo
• $1.4 billion — n comparison, we reported net income of $1.4 billion ($3.52 per diluted common share) on tot
• $3.52 — we reported net income of $1.4 billion ($3.52 per diluted common share) on total net
• $9.0 billion — d common share) on total net revenue of $9.0 billion and net income of $2.4 billion ($5.83 p
• $2.4 billion — venue of $9.0 billion and net income of $2.4 billion ($5.83 per diluted common share) on tot
• $5.83 — billion and net income of $2.4 billion ($5.83 per diluted common share) on total net
• $17.9 billion — d common share) on total net revenue of $17.9 billion for the second quarter and first six mo

Filing Documents

• cof-20240630.htm (10-Q) — 7584KB
• cof-06302024x10qxex101.htm (EX-10.1) — 40KB
• cof-06302024x10qxex102.htm (EX-10.2) — 84KB
• cof-06302024x10qxex311.htm (EX-31.1) — 11KB
• cof-06302024x10qxex312.htm (EX-31.2) — 11KB
• cof-06302024x10qxex321.htm (EX-32.1) — 6KB
• cof-06302024x10qxex322.htm (EX-32.2) — 6KB
• 0000927628-24-000264.txt ( ) — 30967KB
• cof-20240630.xsd (EX-101.SCH) — 88KB
• cof-20240630_cal.xml (EX-101.CAL) — 143KB
• cof-20240630_def.xml (EX-101.DEF) — 669KB
• cof-20240630_lab.xml (EX-101.LAB) — 1120KB
• cof-20240630_pre.xml (EX-101.PRE) — 906KB
• cof-20240630_htm.xml (XML) — 8333KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 4 Item 1.

Financial Statements

Financial Statements 76 Consolidated Statements of Income 77 Consolidated Statements of Comprehensive Income 78 Consolidated Balance Sheets 79 Consolidated Statements of Changes in Stockholders' Equity 80 Consolidated Statements of Cash Flows 82

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 84 Note 1—Summary of Significant Accounting Policies 84 Note 2—Business Combinations 85 Note 3—Investment Securities 86 Note 4—Loans 88 Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments 102 Note 6—Variable Interest Entities and Securitizations 107 Note 7—Goodwill and Other Intangible Assets 111 Note 8—Deposits and Borrowings 112 Note 9—Derivative Instruments and Hedging Activities 113 Note 10—Stockholders' Equity 123 Note 11—Earnings Per Common Share 127 Note 12—Fair Value Measurement 128 Note 13—Business Segments and Revenue from Contracts with Customers 136 Note 14—Commitments, Contingencies, Guarantees and Others 140 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")

Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") 4 Introduction 4

Selected Financial Data

Selected Financial Data 6 Executive Summary 9 Consolidated Results of Operations 10 Consolidated Balance Sheets Analysis 18 Off-Balance Sheet Arrangements 20 Business Segment Financial Performance 21 Critical Accounting Policies and Estimates 31 Accounting Changes and Developments 32 Capital Management 33 Risk Management 38 Credit Risk Profile 40 Liquidity Risk Profile 54 Market Risk Profile 59 Supervision and Regulation 62

Forward-Looking Statements

Forward-Looking Statements 64 Supplemental Table 67 Glossary and Acronyms 69 1 Capital One Financial Corporation (COF) Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 144 Item 4.

Controls and Procedures

Controls and Procedures 144

—OTHER INFORMATION

PART II—OTHER INFORMATION 145 Item 1.

Legal Proceedings

Legal Proceedings 145 Item 1A.

Risk Factors

Risk Factors 145 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 145 Item 3. Defaults Upon Senior Securities 145 Item 4. Mine Safety Disclosures 145 Item 5. Other Information 145 Item 6. Exhibits 146 EXHIBIT INDEX 147

SIGNATURES

SIGNATURES 148 2 Capital One Financial Corporation (COF) INDEX OF MD&A AND SUPPLEMENTAL TABLE MD&A Tables: Page 1 Consolidated Financial Highlights 6 2 Average Balances, Net Interest Income and Net Interest Margin 11 3 Rate/Volume Analysis of Net Interest Income 14 4 Non-Interest Income 15 5 Non-Interest Expense 17 6 Loans Held for Investment 19 7 Funding Sources Composition 19 8 Business Segment Results 22 9 Credit Card Business Results 23 9.1 Domestic Card Business Results 25 10 Consumer Banking Business Results 26 11 Commercial Banking Business Results 28 12 Other Category Results 30 13 Capital Ratios Under Basel III 35 14 Regulatory Risk-Based Capital Components and Regulatory Capital Metrics 36 15 Preferred Stock Dividends Paid Per Share 37 16 Portfolio Composition of Loans Held for Investment 40 17 Credit Card Portfolio by Geographic Region 41 18 Consumer Banking Portfolio by Geographic Region 42 19 Commercial Real Estate Portfolio by Region 43 20 Commercial Loans by Industry 44 21 Credit Score Distribution 45 22 30+ Day Delinquencies 46 23 Aging and Geography of 30+ Day Delinquent Loans 47 24 90+ Day Delinquent Loans Accruing Interest 48 25 Nonperforming Loans and Other Nonperforming Assets 49 26 Net Charge-Offs 50 27 Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity 52 28 Liquidity Reserves 54 29 Deposits Composition and Average Deposits Interest Rates 56 30 Long-Term Debt Funding Activities 57 31 Senior Unsecured Long-Term Debt Credit Ratings 58 32 Interest Rate Sensitivity Analysis 61 Supplemental Table : A Reconciliation of Non-GAAP Measures 67 3 Capital One Financial Corporation (COF) Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") This discussion contains forward-looking statements that are based upon management's current expectations and are subject to significant uncertainties and changes in circumstances. Please review "Forward-Looking Statements" for more information on the forward-looking statements in this Quarterly Report on Form 10-Q ("this Report"). All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. Our actual results may differ materially from those included in these forward-looking statements due to a variety of factors including, but not limited to, those described in "Part I—Item 1A. Risk Factors" in our 2023 Annual Report on Form 10-K ("2023 Form 10-K") and "Part II—Item 1A. Risk Factors" in this Report. Unless otherwise specified, references to notes to our consolidated financial statements refer to the notes to our consolidated financial statements as of June 30, 2024 included in this Report. Management monitors a variety of key indicators to evaluate our business results and financial condition. The following MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and related notes in this Report and the more detailed information contained in our 2023 Form 10-K. INTRODUCTION Capital One Financial Corporation, a Delaware corporation established in 1994 and headquartered in McLean, Virginia, is a diversified financial services holding company with banking and non-banking subsidiaries. Capital One Financial Corporation and its subsidiaries (the "Company" or "Capital One") offer a broad array of financial products and services to consumers, small businesses and commercial clients through digital channels, branch locations, cafs and other distribution channels. As of June 30, 2024, Capital One Financial Co

SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA The following table presents selected consolidated financial data and performance from our results of operations for the second quarter and first six months of 2024 and 2023 and selected comparative balance sheet data as of June 30, 2024 and December 31, 2023. We also provide selected key metrics we use in evaluating our performance, including certain metrics that are computed using non-GAAP measures. We consider these metrics to be key financial measures that management uses in assessing our operating performance, capital adequacy and the level of returns generated. We believe these non-GAAP metrics provide useful insight to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. Table 1: Consolidated Financial Highlights Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except per share data and as noted) 2024 2023 Change 2024 2023 Change Income statement Net interest income $ 7,546 $ 7,113 6% $ 15,034 $ 14,299 5% Non-interest income 1,960 1,899 3 3,874 3,616 7 Total net revenue 9,506 9,012 5 18,908 17,915 6 Provision for credit losses 3,909 2,490 57 6,592 5,285 25 Non-interest expense: Marketing 1,064 886 20 2,074 1,783 16 Operating expense 3,882 3,908 (1) 8,009 7,956 1 Total non-interest expense 4,946 4,794 3 10,083 9,739 4 Income from continuing operations before income taxes 651 1,728 (62) 2,233 2,891 (23) Income tax provision 54 297 (82) 356 500 (29) Net income 597 1,431 (58) 1,877 2,391 (21) Dividends and undistributed earnings allocated to participating securitie

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View this 10-Q filing on SEC EDGAR