Q3 2024 Capital One Financial Corp Earnings Call Transcript
Key Points
- Capital One Financial Corp (COF) reported a strong third quarter with earnings of $1.8 billion or $4.41 per diluted common share.
- Pre-provision earnings increased by 3% from the second quarter to $4.7 billion, driven by higher net interest income.
- The company saw a 5% increase in revenue quarter-over-quarter, attributed to higher net interest income.
- Capital One Financial Corp (COF) experienced a 23% year-over-year increase in auto originations, indicating strong growth in this segment.
- The company's liquidity reserves increased by about $9 billion to approximately $132 billion, reflecting strong deposit growth.
- Non-interest expense increased by 7%, driven by higher operating expenses and marketing spend.
- Provision for credit losses was $2.5 billion, although down from the previous quarter, it remains a significant expense.
- The charge-off rate for the credit card segment increased to 5.61%, with the end of the Walmart loss-sharing agreement impacting the rate.
- Consumer Banking revenue decreased by about 3% year-over-year, largely due to higher deposit costs.
- The commercial banking segment saw a decrease in ending loan balances by about 2% compared to the linked quarter.
Good day, and thank you for standing by. Welcome to the Capital One Q3 2024, earnings call. Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Jeff Norris, Senior Vice President of Finance. Please go ahead.
Thanks very much, Josh, and welcome, everyone. We're webcasting live over the Internet as usual and to access the call on the Internet, please log onto Capital One's website at capitalone.com, and follow the links from there.
In addition to the press release and financials, we have included a presentation summarizing our third quarter 2024 results. With me today are Mr. Richard Fairbank, Capital One's Chairman and Chief Executive Officer; and Mr. Andrew Young, Capital One's Chief Financial Officer. Christian Andrew will walk you through this presentation.
To access a copy of the presentation in the press release, please go to Capital One's website, click on Investors, then click
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