Capital One Financial Corporation (COF) Bundle
A Brief History of Capital One Financial Corporation
Overview
Capital One Financial Corporation (COF) is a bank holding company specializing in credit cards, auto loans, banking, and savings accounts. As of September 30, 2024, Capital One reported a total net revenue of $28.9 billion for the first nine months of 2024, compared to $27.3 billion for the same period in 2023.
Financial Performance
In the third quarter of 2024, Capital One achieved a net income of $1.8 billion, which represents a decrease of $13 million from $1.8 billion in the same quarter of 2023. For the first nine months of 2024, net income totaled $3.7 billion, a decrease of $527 million from $4.2 billion in the prior year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in billions) | $1.8 | $1.8 | $3.7 | $4.2 |
| Total Net Revenue (in billions) | $10.0 | $9.4 | $28.9 | $27.3 |
| Net Charge-Offs (in billions) | $2.1 | $1.9 | $7.9 | $6.3 |
| Provision for Credit Losses (in billions) | $2.1 | $1.9 | $7.9 | $6.3 |
Loan Portfolio
As of September 30, 2024, Capital One reported loans held for investment totaling $320.2 billion, a decrease of $229 million from December 31, 2023. The average loans held for investment increased by $5.5 billion to $318.3 billion compared to Q3 2023.
Credit Card Business
The credit card segment remains a significant contributor to Capital One's revenue. In Q3 2024, net interest income from this segment was $5.7 billion, up from $5.1 billion in Q3 2023. The growth in this segment is attributed to an increase in average loan balances and margins.
Commercial Banking Segment
In the commercial banking sector, Capital One generated net income of $263 million in Q3 2024, an increase from $214 million in Q3 2023. The average loans held for investment in this segment was $88.1 billion, down from $91.6 billion in the previous year.
| Commercial Banking Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Income (in millions) | $596 | $621 |
| Non-Interest Income (in millions) | $292 | $288 |
| Total Net Revenue (in millions) | $888 | $909 |
| Provision for Credit Losses (in millions) | $48 | $116 |
Dividend and Share Repurchase
In Q3 2024, Capital One declared and paid common stock dividends totaling $233 million and repurchased $150 million in shares. For the first nine months of 2024, total dividends paid were $705 million and share repurchases amounted to $403 million.
Key Ratios
As of September 30, 2024, Capital One's common equity Tier 1 (CET1) capital ratio was 13.6%, up from 12.9% at the end of 2023. The allowance for credit losses increased to $16.5 billion, reflecting a higher allowance build due to the termination of the Walmart Program.
| Key Ratios | September 30, 2024 | December 31, 2023 |
|---|---|---|
| CET1 Capital Ratio | 13.6% | 12.9% |
| Allowance for Credit Losses (in billions) | $16.5 | $15.3 |
| Net Charge-Off Rate | 5.60% | 4.42% |
Conclusion
Capital One continues to navigate a complex financial landscape, focusing on growth in its credit card and commercial banking segments while managing credit losses and maintaining strong capital ratios.
A Who Owns Capital One Financial Corporation (COF)
Major Shareholders
As of 2024, the ownership of Capital One Financial Corporation (COF) is distributed among various institutional and individual investors. The largest shareholders include:
| Shareholder Type | Shareholder Name | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 56,892,000 | 14.92% |
| Institutional Investor | BlackRock, Inc. | 52,890,000 | 13.83% |
| Institutional Investor | State Street Corporation | 32,000,000 | 8.38% |
| Institutional Investor | FMR LLC (Fidelity) | 30,500,000 | 7.93% |
| Individual Investor | Richard Fairbank (CEO) | 10,000,000 | 2.61% |
| Individual Investor | Other Individual Investors | 220,000,000 | 57.33% |
Institutional Ownership
Institutional ownership plays a significant role in the capital structure of Capital One. The following table outlines the institutional ownership percentages:
| Institution | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 14.92% |
| BlackRock, Inc. | 13.83% |
| State Street Corporation | 8.38% |
| FMR LLC (Fidelity) | 7.93% |
| Invesco Ltd. | 4.56% |
| Other Institutions | 26.38% |
Stock Performance
As of September 30, 2024, the stock price of Capital One Financial Corporation was $94.50 with a market capitalization of approximately $38 billion. The stock has experienced the following performance metrics:
| Metric | Value |
|---|---|
| 52-Week High | $105.00 |
| 52-Week Low | $85.00 |
| Year-to-Date Return | 8% |
| Dividend Yield | 2.02% |
Recent Changes in Ownership
In 2024, there have been notable changes in the ownership structure:
- Vanguard increased its stake by approximately 1.5 million shares.
- BlackRock divested around 1 million shares, reducing its holding slightly.
- FMR LLC increased its holdings by 500,000 shares.
Shareholder Voting Rights
Each share of common stock entitles the holder to one vote. This structure enables shareholders to participate in major corporate decisions, including board elections and mergers.
Conclusion on Ownership Structure
The ownership structure of Capital One Financial Corporation is characterized by significant institutional involvement, with major shareholders holding over 50% of the total shares outstanding. This concentration of ownership can influence corporate governance and strategic decisions.
Capital One Financial Corporation (COF) Mission Statement
Overview
The mission statement of Capital One Financial Corporation (COF) emphasizes its commitment to providing innovative financial solutions that meet the diverse needs of its customers. The company aims to be a leader in the financial services industry through technology and exceptional customer service.
Financial Performance Indicators
As of September 30, 2024, Capital One reported a total net revenue of $28.9 billion for the year, reflecting a 6% increase from the previous year. The breakdown of revenue sources is as follows:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Credit Card | $20,800 | $18,873 | 10% |
| Consumer Banking | $6,577 | $7,188 | -9% |
| Commercial Banking | $2,648 | $2,658 | -0.4% |
| Other | $(1,103) | $(1,438) | 23% |
| Total | $28,922 | $27,281 | 6% |
Income Metrics
For the third quarter of 2024, Capital One achieved a net income of $1.8 billion, a slight decrease from $1.79 billion in the same period of 2023. Key metrics include:
| Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Net Interest Income | $5,743 | $5,114 | 12% |
| Non-Interest Income | $1,509 | $1,513 | -0.3% |
| Total Net Revenue | $7,252 | $6,627 | 9% |
| Provision for Credit Losses | $2,084 | $1,953 | 7% |
| Net Income | $1,374 | $1,266 | 9% |
Asset Management
As of September 30, 2024, Capital One's total assets amounted to $481.2 billion, compared to $469.9 billion in 2023. The composition of assets includes:
| Asset Type | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Loans Held for Investment | $320,243 | $320,472 | -0.1% |
| Interest-Earning Assets | $458,189 | $449,701 | 2% |
| Total Deposits | $353,631 | $348,413 | 1% |
| Common Equity | $58,080 | $53,244 | 9% |
| Total Assets | $481,219 | $469,860 | 2% |
Credit Quality Metrics
Capital One monitors its credit quality through various metrics, with notable figures as of September 30, 2024:
| Metric | Value |
|---|---|
| Allowance for Credit Losses | $16,534 million |
| Net Charge-Offs | $2,604 million |
| Net Charge-Off Rate | 3.27% |
| 30+ Day Delinquency Rate | 3.89% |
Conclusion
Through its mission statement, Capital One Financial Corporation strives to leverage its technological capabilities and customer-centric approach to drive innovation in the financial services sector. The company continues to show robust financial performance, despite challenges in certain segments, and remains focused on enhancing its offerings to meet customer needs effectively.
How Capital One Financial Corporation (COF) Works
Business Overview
Capital One Financial Corporation (COF) operates primarily as a bank holding company specializing in credit cards, auto loans, banking, and savings accounts. The company is known for its innovative technology and data-driven approach to banking services.
Financial Performance
As of September 30, 2024, Capital One reported a net interest income of $8.076 billion for the third quarter, a 9% increase from $7.423 billion in the same quarter of 2023. For the first nine months of 2024, net interest income was $23.110 billion, up from $21.722 billion in 2023, representing a 6% increase.
Income Statement Highlights
| Metrics | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Net Interest Income | $8,076 million | $7,423 million | +9% | $23,110 million | $21,722 million | +6% |
| Non-Interest Income | $1,938 million | $1,943 million | -0.3% | $5,812 million | $5,559 million | +4.5% |
| Total Net Revenue | $10,014 million | $9,366 million | +7% | $28,922 million | $27,281 million | +6% |
| Provision for Credit Losses | $2,482 million | $2,284 million | +9% | $9,074 million | $7,569 million | +20% |
| Net Income | $1,777 million | $1,790 million | -0.7% | $3,654 million | $4,181 million | -12.6% |
Credit Quality Metrics
As of September 30, 2024, Capital One's credit quality metrics showed an allowance for credit losses of $16.534 billion, up from $15.296 billion at the end of 2023, reflecting an 8% increase. The net charge-off rate increased to 5.60% in Q3 2024 from 4.42% in Q3 2023.
| Metrics | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Allowance for Credit Losses | $16.534 billion | $15.296 billion | +8% |
| 30+ Day Delinquency Rate | 3.89% | 3.99% | -10 bps |
| Net Charge-Off Rate | 5.60% | 4.42% | +118 bps |
Loans and Deposits
As of September 30, 2024, Capital One held loans for investment totaling $320.243 billion, a slight decrease from $320.472 billion at the end of 2023. Total deposits increased to $353.631 billion from $348.413 billion, marking a 1% growth.
| Metrics | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Loans Held for Investment | $320.243 billion | $320.472 billion | -0.1% |
| Total Deposits | $353.631 billion | $348.413 billion | +1% |
| Interest-Earning Assets | $458.189 billion | $449.701 billion | +2% |
Capital Ratios
Capital ratios as of September 30, 2024, indicate a common equity Tier 1 capital ratio of 13.6%, up from 12.9% as of December 31, 2023. The Tier 1 leverage ratio also improved to 11.6% from 11.2%.
| Metrics | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Common Equity Tier 1 Capital Ratio | 13.6% | 12.9% | +70 bps |
| Tier 1 Capital Ratio | 14.9% | 14.2% | +70 bps |
| Total Capital Ratio | 16.6% | 16.0% | +60 bps |
| Tier 1 Leverage Ratio | 11.6% | 11.2% | +40 bps |
Operational Highlights
As of September 30, 2024, Capital One employed approximately 52,500 individuals, a slight increase from 52,000 at the end of 2023. The company focuses on enhancing its technological capabilities and customer service initiatives to drive growth and efficiency.
Regulatory Environment
In 2024, Capital One has been navigating regulatory challenges, including the Consumer Financial Protection Bureau's final rule impacting credit card fees. The company is actively developing strategies to mitigate potential revenue impacts from this regulation.
How Capital One Financial Corporation (COF) Makes Money
Revenue Streams
Capital One Financial Corporation generates revenue primarily through three business segments: Credit Card, Consumer Banking, and Commercial Banking.
Credit Card Business
The Credit Card segment is the largest contributor to Capital One's revenue. In the third quarter of 2024, this segment generated:
- Net interest income: $5.743 billion
- Non-interest income: $1.509 billion
- Total net revenue: $7.252 billion
- Provision for credit losses: $2.084 billion
- Net income: $1.374 billion
For the first nine months of 2024, the figures were:
- Net interest income: $16.309 billion
- Non-interest income: $4.491 billion
- Total net revenue: $20.800 billion
- Provision for credit losses: $7.888 billion
- Net income: $2.426 billion
| Metric | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Net Interest Income | $5.743 billion | $5.114 billion | +12% | $16.309 billion | $14.498 billion | +12% |
| Non-Interest Income | $1.509 billion | $1.513 billion | - | $4.491 billion | $4.375 billion | +3% |
| Total Net Revenue | $7.252 billion | $6.627 billion | +9% | $20.800 billion | $18.873 billion | +10% |
| Provision for Credit Losses | $2.084 billion | $1.953 billion | +7% | $7.888 billion | $6.298 billion | +25% |
| Net Income | $1.374 billion | $1.266 billion | +9% | $2.426 billion | $2.672 billion | -9% |
Consumer Banking
The Consumer Banking segment provides services such as auto loans and retail banking. In the third quarter of 2024, this segment reported:
- Net interest income: $2.028 billion
- Non-interest income: $182 million
- Total net revenue: $2.210 billion
- Provision for credit losses: $351 million
- Net income: $403 million
For the first nine months of 2024, the figures were:
- Net interest income: $6.064 billion
- Non-interest income: $513 million
- Total net revenue: $6.577 billion
- Provision for credit losses: $1.107 billion
- Net income: $1.255 billion
| Metric | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Net Interest Income | $2.028 billion | $2.133 billion | -5% | $6.064 billion | $6.762 billion | -10% |
| Non-Interest Income | $182 million | $142 million | +28% | $513 million | $426 million | +20% |
| Total Net Revenue | $2.210 billion | $2.275 billion | -3% | $6.577 billion | $7.188 billion | -9% |
| Provision for Credit Losses | $351 million | $213 million | +65% | $1.107 billion | $747 million | +48% |
| Net Income | $403 million | $611 million | -34% | $1.255 billion | $2.036 billion | -38% |
Commercial Banking
The Commercial Banking segment generates revenue mainly through net interest income from loans and deposits as well as non-interest income from various services. In the third quarter of 2024, this segment reported:
- Net interest income: $596 million
- Non-interest income: $292 million
- Total net revenue: $888 million
- Provision for credit losses: $48 million
- Net income: $263 million
For the first nine months of 2024, the figures were:
- Net interest income: $1.804 billion
- Non-interest income: $844 million
- Total net revenue: $2.648 billion
- Provision for credit losses: $80 million
- Net income: $821 million
| Metric | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Net Interest Income | $596 million | $621 million | -4% | $1.804 billion | $1.901 billion | -5% |
| Non-Interest Income | $292 million | $288 million | +1% | $844 million | $757 million | +11% |
| Total Net Revenue | $888 million | $909 million | -2% | $2.648 billion | $2.658 billion | - |
| Provision for Credit Losses | $48 million | $116 million | -59% | $80 million | $521 million | -85% |
| Net Income | $263 million | $214 million | +23% | $821 million | $468 million | +75% |
Overall Financial Performance
For the third quarter of 2024, Capital One reported:
- Total net revenue: $10.014 billion
- Net income: $1.777 billion
- Provision for credit losses: $2.482 billion
- Non-interest expense: $5.314 billion
For the first nine months of 2024, the figures were:
- Total net revenue: $28.922 billion
- Net income: $3.654 billion
- Provision for credit losses: $9.074 billion
- Non-interest expense: $15.397 billion
| Metric | Q3 2024 | 9M 2024 |
|---|---|---|
| Total Net Revenue | $10.014 billion | $28.922 billion |
| Net Income | $1.777 billion | $3.654 billion |
| Provision for Credit Losses | $2.482 billion | $9.074 billion |
| Non-Interest Expense | $5.314 billion | $15.397 billion |
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Article updated on 8 Nov 2024
Resources:
- Capital One Financial Corporation (COF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Capital One Financial Corporation (COF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Capital One Financial Corporation (COF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.