Capital One Q3 2024: $447B Assets, $397B Liabilities

TL;DR

Capital One Q3: $447B assets, $397B liabilities. Solid.

AI Summary

Capital One Financial Corp. reported its Q3 2024 results, with total assets reaching $447 billion and total liabilities at $397 billion as of September 30, 2024. The company's fiscal year ends on December 31st, and this 10-Q filing covers the period from July 1, 2024, to September 30, 2024.

Why It Matters

This filing provides a snapshot of Capital One's financial health and scale, crucial for understanding its market position and stability in the banking sector.

Risk Assessment

Risk Level: medium — As a major financial institution, Capital One is subject to significant market and regulatory risks inherent in the banking industry.

Key Numbers

• $447B — Total Assets (As of September 30, 2024)
• $397B — Total Liabilities (As of September 30, 2024)
• 2024 Q3 — Reporting Period (Quarterly filing for the third quarter of 2024)

Key Players & Entities

• Capital One Financial Corp. (company) — Filer of the 10-Q report
• 0000927628-24-000306 (other) — Accession number for the filing
• 20240930 (date) — End of the reporting period
• 20241031 (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. In the third quarter of 2024,
• $1.8 billion — l Highlights We reported net income of $1.8 billion ($4.41 per diluted common share) on tot
• $4.41 — We reported net income of $1.8 billion ($4.41 per diluted common share) on total net
• $10.0 billion — d common share) on total net revenue of $10.0 billion and net income of $3.7 billion ($8.92 p
• $3.7 billion — enue of $10.0 billion and net income of $3.7 billion ($8.92 per diluted common share) on tot
• $8.92 — billion and net income of $3.7 billion ($8.92 per diluted common share) on total net
• $28.9 billion — d common share) on total net revenue of $28.9 billion for the third quarter and first nine mo
• $4.45 — we reported net income of $1.8 billion ($4.45 per diluted common share) on total net
• $9.4 billion — d common share) on total net revenue of $9.4 billion and net income of $4.2 billion ($10.28
• $4.2 billion — venue of $9.4 billion and net income of $4.2 billion ($10.28 per diluted common share) on to
• $10.28 — billion and net income of $4.2 billion ($10.28 per diluted common share) on total net
• $27.3 billion — d common share) on total net revenue of $27.3 billion for the third quarter and first nine mo
• $233 million — ared and paid common stock dividends of $233 million and repurchased $150 million of shares

Filing Documents

• cof-20240930.htm (10-Q) — 7746KB
• cof-09302024x10qxex311.htm (EX-31.1) — 11KB
• cof-09302024x10qxex312.htm (EX-31.2) — 11KB
• cof-09302024x10qxex321.htm (EX-32.1) — 6KB
• cof-09302024x10qxex322.htm (EX-32.2) — 6KB
• 0000927628-24-000306.txt ( ) — 31284KB
• cof-20240930.xsd (EX-101.SCH) — 88KB
• cof-20240930_cal.xml (EX-101.CAL) — 145KB
• cof-20240930_def.xml (EX-101.DEF) — 670KB
• cof-20240930_lab.xml (EX-101.LAB) — 1122KB
• cof-20240930_pre.xml (EX-101.PRE) — 908KB
• cof-20240930_htm.xml (XML) — 8500KB

- 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 86 Note 3—Investment Securities 87 Note 4—Loans 90 Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments 105 Note 6—Variable Interest Entities and Securitizations 110 Note 7—Goodwill and Other Intangible Assets 114 Note 8—Deposits and Borrowings 115 Note 9—Derivative Instruments and Hedging Activities 116 Note 10—Stockholders' Equity 126 Note 11—Earnings Per Common Share 130 Note 12—Fair Value Measurement 131 Note 13—Business Segments and Revenue from Contracts with Customers 139 Note 14—Commitments, Contingencies, Guarantees and Others 143 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 21 Business Segment Financial Performance 22 Critical Accounting Policies and Estimates 32 Accounting Changes and Developments 33 Capital Management 34 Risk Management 39 Credit Risk Profile 41 Liquidity Risk Profile 55 Market Risk Profile 60 Supervision and Regulation 63

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 147 Item 4.

Controls and Procedures

Controls and Procedures 147

—OTHER INFORMATION

PART II—OTHER INFORMATION 148 Item 1.

Legal Proceedings

Legal Proceedings 148 Item 1A.

Risk Factors

Risk Factors 148 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 148 Item 3. Defaults Upon Senior Securities 148 Item 4. Mine Safety Disclosures 148 Item 5. Other Information 148 Item 6. Exhibits 149 EXHIBIT INDEX 150

SIGNATURES

SIGNATURES 151 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 23 9 Credit Card Business Results 24 9.1 Domestic Card Business Results 26 10 Consumer Banking Business Results 27 11 Commercial Banking Business Results 29 12 Other Category Results 31 13 Capital Ratios Under Basel III 36 14 Regulatory Risk-Based Capital Components and Regulatory Capital Metrics 37 15 Preferred Stock Dividends Paid Per Share 38 16 Portfolio Composition of Loans Held for Investment 41 17 Credit Card Portfolio by Geographic Region 42 18 Consumer Banking Portfolio by Geographic Region 43 19 Commercial Real Estate Portfolio by Region 44 20 Commercial Loans by Industry 45 21 Credit Score Distribution 46 22 30+ Day Delinquencies 47 23 Aging and Geography of 30+ Day Delinquent Loans 48 24 90+ Day Delinquent Loans Accruing Interest 49 25 Nonperforming Loans and Other Nonperforming Assets 50 26 Net Charge-Offs 51 27 Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity 53 28 Liquidity Reserves 55 29 Deposits Composition and Average Deposits Interest Rates 57 30 Long-Term Debt Funding Activities 58 31 Senior Unsecured Long-Term Debt Credit Ratings 59 32 Interest Rate Sensitivity Analysis 62 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 September 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 September 30, 2024, Capital One Fi

SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA The following table presents selected consolidated financial data and performance from our results of operations for the third quarter and first nine months of 2024 and 2023 and selected comparative balance sheet data as of September 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 September 30, Nine Months Ended September 30, (Dollars in millions, except per share data and as noted) 2024 2023 Change 2024 2023 Change Income statement Net interest income $ 8,076 $ 7,423 9% $ 23,110 $ 21,722 6% Non-interest income 1,938 1,943 — 5,812 5,559 5 Total net revenue 10,014 9,366 7 28,922 27,281 6 Provision for credit losses 2,482 2,284 9 9,074 7,569 20 Non-interest expense: Marketing 1,113 972 15 3,187 2,755 16 Operating expense 4,201 3,888 8 12,210 11,844 3 Total non-interest expense 5,314 4,860 9 15,397 14,599 5 Income from continuing operations before income taxes 2,218 2,222 — 4,451 5,113 (13) Income tax provision 441 432 2 797 932 (14) Net income 1,777 1,790 (1) 3,654 4,181 (13) Dividends and undistributed earnings allocated to particip

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