Capital One Reports Fourth Quarter 2023 Net Income of $706 million, or $1.67 per share

Rhea-AI Summary

Capital One Financial Corporation (COF) reported a net income of $706 million for the fourth quarter of 2023, with adjusted net income of $2.24 per diluted common share. Total net revenue increased by 1 percent to $9.5 billion, while total non-interest expense increased by 18 percent to $5.7 billion. Credit card period-end loans increased by 5 percent to $154.5 billion, and domestic card period-end loans increased by 5 percent to $147.7 billion. The company's efficiency ratio was 60.14 percent, with an adjusted efficiency ratio of 57.10 percent.

Positive

• Net income of $706 million for the fourth quarter of 2023
• Adjusted net income of $2.24 per diluted common share
• Total net revenue increased by 1 percent to $9.5 billion
• Credit card period-end loans increased by 5 percent to $154.5 billion
• Domestic card period-end loans increased by 5 percent to $147.7 billion
• Efficiency ratio of 60.14 percent with an adjusted efficiency ratio of 57.10 percent

Negative

• Total non-interest expense increased by 18 percent to $5.7 billion
• Provision for credit losses increased by $573 million to $2.9 billion
• Net interest margin decreased by 4 basis points to 6.63 percent

Insights

Financial Analyst

Capital One Financial Corporation's fourth-quarter results reveal a significant decrease in net income compared to both the previous quarter and the same quarter last year. This decline is a critical indicator for investors, as it reflects the company's profitability and potential challenges in its operating environment. The reported increase in the provision for credit losses, which rose by $573 million to $2.9 billion, suggests a more cautious approach to potential credit risks, likely due to an anticipated economic downturn or worsening credit conditions. Such a substantial reserve build could signal the company's expectation of higher default rates in the near future.

The net interest margin (NIM) experienced a slight uptick of 4 basis points, indicating a modest improvement in the profitability of the company's lending activities. However, this increase in NIM may not be sufficient to offset the higher credit costs. Additionally, the increase in total net revenue by 7 percent for the full year juxtaposed with a 6 percent increase in non-interest expenses raises questions about the sustainability of the company's cost structure and its impact on the bottom line in a potentially tightening economic environment.

Market Research Analyst

The reported 18 percent increase in non-interest expenses, with a notable 29 percent surge in marketing costs, suggests an aggressive strategy to attract new customers or retain existing ones. While this can be an effective growth strategy, it also adds pressure to the company's operating margins. Investors should consider whether these marketing investments will translate into sufficient revenue growth to justify the increased spending.

Another aspect to consider is the shift in the company's loan portfolio, with Credit Card period-end loans increasing by 5 percent, while Consumer Banking and Auto loans saw declines. This shift could indicate a strategic focus on credit card lending, which typically yields higher interest rates but also carries greater risk, especially if economic conditions deteriorate and consumer debt burdens increase. The balance between growth in higher-margin products and the associated credit risk will be a key factor to monitor.

Economist

The efficiency ratios reported by Capital One, including the adjusted efficiency ratio of 54.44 percent for the full year, provide insight into the company's operational effectiveness. An efficiency ratio measures the costs incurred to generate a unit of revenue; hence, a lower ratio is generally more favorable as it indicates greater efficiency. The increase in the efficiency ratio in the fourth quarter to 60.14 percent, from a full-year average of 55.23 percent, suggests that the company's costs are rising faster than its revenues, which could be a concern if the trend continues, particularly in an environment of rising interest rates and potential economic headwinds.

Furthermore, the increase in the interest-bearing deposits rate paid, which went up by 17 basis points, reflects the broader interest rate environment and impacts the company's cost of funds. As interest rates rise, the cost of attracting and retaining deposits increases, which can compress net interest margins and affect profitability.

Net of adjusting items, Fourth Quarter 2023 Net Income of $2.24 per share⁽¹⁾

MCLEAN, Va., Jan. 25, 2024 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2023 of $706 million, or $1.67 per diluted common share, compared with net income of $1.8 billion, or $4.45 per diluted common share in the third quarter of 2023, and with net income of $1.2 billion, or $3.03 per diluted common share in the fourth quarter of 2022. Adjusted net income⁽¹⁾ for the fourth quarter of 2023 was $2.24 per diluted common share.

"We delivered solid results with strong top line growth in 2023," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "Our modern technology capabilities are driving resilient growth, enabling efficiency improvement, and putting us in a strong position to deliver long-term shareholder value."

The quarter included the following adjusting item:

(Dollars in millions, except per share data)	Pre-Tax Impact	After-Tax Diluted EPS Impact
FDIC special assessment	$                 289	$                 0.57

 

All comparisons below are for the fourth quarter of 2023 compared with the third quarter of 2023 unless otherwise noted.

Fourth Quarter 2023 Income Statement Summary:

• Total net revenue increased 1 percent to $9.5 billion.
• Total non-interest expense increased 18 percent to $5.7 billion:
  • 29 percent increase in marketing.
  • 15 percent increase in operating expenses.
• Pre-provision earnings⁽²⁾  decreased 16 percent to $3.8 billion.
• Provision for credit losses increased $573 million to $2.9 billion:
  • Net charge-offs of $2.5 billion.
  • $326 million loan reserve build.
• Net interest margin of 6.73 percent, an increase of 4 basis points.
• Efficiency ratio of 60.14 percent.
  • Adjusted efficiency ratio⁽¹⁾ of 57.10 percent.
• Operating efficiency ratio of 46.95 percent.
  • Adjusted operating efficiency ratio⁽¹⁾ of 43.91 percent.

Fourth Quarter 2023 Balance Sheet Summary:

• Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.9 percent at December 31, 2023.
• Period-end loans held for investment in the quarter increased $5.7 billion, or 2 percent, to $320.5 billion.
  • Credit Card period-end loans increased $7.8 billion, or 5 percent, to $154.5 billion.
    • Domestic Card period-end loans increased $7.3 billion, or 5 percent, to $147.7 billion.
  • Consumer Banking period-end loans decreased $1.4 billion, or 2 percent, to $75.4 billion.
    • Auto period-end loans decreased $1.4 billion, or 2 percent, to $74.1 billion.
  • Commercial Banking period-end loans decreased $665 million, or 1 percent, to $90.5 billion.
• Average loans held for investment in the quarter increased $3.1 billion, or 1 percent, to $315.9 billion.
  • Credit Card average loans increased $4.6 billion, or 3 percent, to $148.6 billion.
    • Domestic Card average loans increased $4.6 billion, or 3 percent, to $142.1 billion.
  • Consumer Banking average loans decreased $916 million, or 1 percent, to $76.2 billion.
    • Auto average loans decreased $879 million, or 1 percent, to $74.9 billion.
  • Commercial Banking average loans decreased $531 million, or 1 percent, to $91.0 billion.
• Period-end total deposits increased $2.4 billion, or 1 percent, to $348.4 billion, while average deposits increased $315 million, or less than 1 percent, to $345.3 billion.
• Interest-bearing deposits rate paid increased 17 basis points to 3.47 percent.

2023 Full Year Income Statement Summary:

• Total net revenue increased 7 percent to $36.8 billion.
• Total non-interest expense increased 6 percent to $20.3 billion:
  • Marketing expense remained flat at $4.0 billion.
  • 8 percent increase in operating expenses.
• Pre-provision earnings⁽²⁾ increased 9 percent to $16.5 billion.
• Provision for credit losses increased $4.6 billion to $10.4 billion.
• Net interest margin of 6.63 percent, a decrease of 4 basis points.
• Efficiency ratio of 55.23 percent.
  • Adjusted efficiency ratio⁽¹⁾ of 54.44 percent.
• Operating efficiency ratio of 44.33 percent.
  • Adjusted operating efficiency ratio⁽¹⁾ of 43.54 percent.

(1)	This is a non-GAAP measure. We believe non-GAAP measures help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" in Exhibit 99.2 for a reconciliation of our selected reported results to these non-GAAP measures.
(2)	Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on From 8-K on January 25, 2024 with the Securities and Exchange Commission (the "SEC"), "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for a reconciliation and additional information on non-GAAP measures.

 

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on January 25, 2024 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page (www.capitalone.com). Under "About," choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through February 8, 2024 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Forward-looking statements often use words such as "will," "anticipate," "target," "expect," "think," "estimate," "intend," "plan," "goal," "believe," "forecast," "outlook" or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under "Part I—Item 1A. Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $348.4 billion in deposits and $478.5 billion in total assets as of December 31, 2023. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

 

Exhibit 99.2
Capital One Financial Corporation Financial Supplement(1)(2) Fourth Quarter 2023 Table of Contents
Capital One Financial Corporation Consolidated Results			Page
	Table 1:	Financial Summary—Consolidated	1
	Table 2:	Selected Metrics—Consolidated	3
	Table 3:	Consolidated Statements of Income	4
	Table 4:	Consolidated Balance Sheets	6
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	8
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	9
	Table 7:	Loan Information and Performance Statistics	10
	Table 8:	Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity	12
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	14
	Table 10:	Financial & Statistical Summary—Credit Card Business	15
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	17
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	18
	Table 13:	Financial & Statistical Summary—Other and Total	19
Other
	Table 14:	Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)	20
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	21

__________

(1)

The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Annual Report on Form 10-K for the period ended December 31, 2023 once it is filed with the Securities and Exchange Commission.

(2)

This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful 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 U.S. ("GAAP"), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for a reconciliation of any non-GAAP financial measures.

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 1: Financial Summary—Consolidated
												2023 Q4				Year Ended December 31,
(Dollars in millions, except per share data and as noted)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs 2022
Income Statement
Net interest income		$      7,519		$      7,423		$      7,113		$      7,186		$      7,197		1 %		4 %		$    29,241		$    27,114		8 %
Non-interest income		1,987		1,943		1,899		1,717		1,843		2		8		7,546		7,136		6
Total net revenue(1)		9,506		9,366		9,012		8,903		9,040		1		5		36,787		34,250		7
Provision for credit losses		2,857		2,284		2,490		2,795		2,416		25		18		10,426		5,847		78
Non-interest expense:
Marketing		1,254		972		886		897		1,118		29		12		4,009		4,017		—
Operating expense		4,463		3,888		3,908		4,048		3,962		15		13		16,307		15,146		8
Total non-interest expense		5,717		4,860		4,794		4,945		5,080		18		13		20,316		19,163		6
Income from continuing operations before income taxes		932		2,222		1,728		1,163		1,544		(58)		(40)		6,045		9,240		(35)
Income tax provision		226		432		297		203		312		(48)		(28)		1,158		1,880		(38)
Net income		706		1,790		1,431		960		1,232		(61)		(43)		4,887		7,360		(34)
Dividends and undistributed earnings allocated to participating securities(2)		(10)		(28)		(23)		(16)		(14)		(64)		(29)		(77)		(88)		(13)
Preferred stock dividends		(57)		(57)		(57)		(57)		(57)		—		—		(228)		(228)		—
Net income available to common stockholders		$        639		$      1,705		$      1,351		$        887		$      1,161		(63)		(45)		$      4,582		$      7,044		(35)
Common Share Statistics
Basic earnings per common share:(2)
Net income per basic common share		$       1.67		$       4.46		$       3.53		$       2.32		$       3.03		(63) %		(45) %		$      11.98		$      17.98		(33) %
Diluted earnings per common share:(2)
Net income per diluted common share		$       1.67		$       4.45		$       3.52		$       2.31		$       3.03		(62) %		(45) %		$      11.95		$      17.91		(33) %
Weighted-average common shares outstanding (in millions):
Basic		381.9		382.5		382.8		382.6		382.6		—		—		382.4		391.8		(2) %
Diluted		382.8		383.3		383.7		383.8		383.7		—		—		383.4		393.2		(2)
Common shares outstanding (period-end, in millions)		380.4		381.0		381.4		382.0		381.3		—		—		380.4		381.3		—
Dividends declared and paid per common share		$       0.60		$       0.60		$       0.60		$       0.60		$       0.60		—		—		$       2.40		$       2.40		—
Tangible book value per common share (period-end)(3)		99.78		87.97		90.07		90.86		86.11		13 %		16 %		99.78		86.11		16
												2023 Q4				Year Ended December 31,
(Dollars in millions)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs 2022
Balance Sheet (Period-End)
Loans held for investment		$  320,472		$  314,780		$  311,323		$  308,836		$  312,331		2 %		3 %		$  320,472		$  312,331		3 %
Interest-earning assets		449,701		445,428		441,250		445,166		427,248		1		5		449,701		427,248		5
Total assets		478,464		471,435		467,800		471,660		455,249		1		5		478,464		455,249		5
Interest-bearing deposits		320,389		317,217		314,393		318,641		300,789		1		7		320,389		300,789		7
Total deposits		348,413		346,011		343,705		349,827		332,992		1		5		348,413		332,992		5
Borrowings		49,856		49,247		50,258		48,777		48,715		1		2		49,856		48,715		2
Common equity		53,244		48,823		49,713		49,807		47,737		9		12		53,244		47,737		12
Total stockholders' equity		58,089		53,668		54,559		54,653		52,582		8		10		58,089		52,582		10
Balance Sheet (Average Balances)
Loans held for investment		$  315,890		$  312,759		$  309,655		$  307,756		$  306,881		1 %		3 %		$  311,541		$  292,238		7 %
Interest-earning assets		446,929		443,532		439,139		435,199		421,051		1		6		441,238		406,646		9
Total assets		472,594		469,860		466,652		462,324		449,659		1		5		467,807		440,538		6
Interest-bearing deposits		316,808		316,032		313,207		308,788		292,793		—		8		313,737		277,208		13
Total deposits		345,328		345,013		343,678		340,123		326,558		—		6		343,554		313,551		10
Borrowings		51,070		49,736		48,468		48,016		49,747		3		3		49,332		51,006		(3)
Common equity		50,786		50,166		50,511		49,927		47,594		1		7		50,349		50,279		—
Total stockholders' equity		55,632		55,012		55,357		54,773		52,439		1		6		55,195		55,125		—

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 2: Selected Metrics—Consolidated
												2023 Q4				Year Ended December 31,
(Dollars in millions, except as noted)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs 2022
Performance Metrics
Net interest income growth (period over period)		1 %		4 %		(1) %		—		3 %		**		**		8 %		12 %		**
Non-interest income growth (period over period)		2		2		11		(7) %		2		**		**		6		14		**
Total net revenue growth (period over period)		1		4		1		(2)		3		**		**		7		13		**
Total net revenue margin(4)		8.51		8.45		8.21		8.18		8.59		6 bps		(8) bps		8.34		8.42		(8) bps
Net interest margin(5)		6.73		6.69		6.48		6.60		6.84		4		(11)		6.63		6.67		(4)
Return on average assets		0.60		1.52		1.23		0.83		1.10		(92)		(50)		1.04		1.67		(63)
Return on average tangible assets(6)		0.62		1.58		1.27		0.86		1.13		(96)		(51)		1.08		1.73		(65)
Return on average common equity(7)		5.03		13.59		10.70		7.11		9.76		(856)		(473)		9.10		14.01		(491)
Return on average tangible common equity(8)		7.20		19.59		15.30		10.15		14.22		(1,239)		(702)		13.04		19.91		(687)
Efficiency ratio(9)		60.14		51.89		53.20		55.54		56.19		825		395		55.23		55.95		(72)
Operating efficiency ratio(10)		46.95		41.51		43.36		45.47		43.83		544		312		44.33		44.22		11
Effective income tax rate for continuing operations		24.2		19.4		17.2		17.5		20.2		480		400		19.2		20.3		(110)
Employees (period-end, in thousands)		52.0		54.2		55.6		56.1		56.0		(4) %		(7) %		52.0		56.0		(7) %
Credit Quality Metrics
Allowance for credit losses		$  15,296		$  14,955		$  14,646		$  14,318		$  13,240		2 %		16 %		$    15,296		$    13,240		16 %
Allowance coverage ratio		4.77 %		4.75 %		4.70 %		4.64 %		4.24 %		2 bps		53 bps		4.77 %		4.24 %		53 bps
Net charge-offs		$    2,533		$    1,999		$    2,185		$    1,697		$    1,430		27 %		77 %		$      8,414		$      3,973		112 %
Net charge-off rate(11)		3.21 %		2.56 %		2.82 %		2.21 %		1.86 %		65 bps		135 bps		2.70 %		1.36 %		134 bps
30+ day performing delinquency rate		3.71		3.42		3.08		2.88		2.96		29		75		3.71		2.96		75
30+ day delinquency rate		3.99		3.71		3.36		3.09		3.21		28		78		3.99		3.21		78
Capital Ratios(12)
Common equity Tier 1 capital		12.9 %		13.0 %		12.7 %		12.5 %		12.5 %		(10) bps		40 bps		12.9 %		12.5 %		40 bps
Tier 1 capital		14.2		14.3		14.0		13.9		13.9		(10)		30		14.2		13.9		30
Total capital		16.0		16.2		16.0		15.9		15.8		(20)		20		16.0		15.8		20
Tier 1 leverage		11.2		11.2		11.0		10.9		11.1		—		10		11.2		11.1		10
Tangible common equity ("TCE")(13)		8.2		7.3		7.6		7.6		7.5		90		70		8.2		7.5		70

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 3: Consolidated Statements of Income
												2023 Q4				Year Ended December 31,
(Dollars in millions, except as noted)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs 2022
Interest income:
Loans, including loans held for sale		$      9,934		$      9,696		$      9,057		$      8,723		$      8,360		2 %		19 %		$     37,410		$     28,910		29 %
Investment securities		669		627		639		615		548		7		22		2,550		1,884		35
Other		542		550		470		416		250		(1)		117		1,978		443		**
Total interest income		11,145		10,873		10,166		9,754		9,158		3		22		41,938		31,237		34
Interest expense:
Deposits		2,745		2,611		2,277		1,856		1,335		5		106		9,489		2,535		**
Securitized debt obligations		263		249		236		211		170		6		55		959		384		150
Senior and subordinated notes		608		579		528		489		430		5		41		2,204		1,074		105
Other borrowings		10		11		12		12		26		(9)		(62)		45		130		(65)
Total interest expense		3,626		3,450		3,053		2,568		1,961		5		85		12,697		4,123		**
Net interest income		7,519		7,423		7,113		7,186		7,197		1		4		29,241		27,114		8
Provision for credit losses		2,857		2,284		2,490		2,795		2,416		25		18		10,426		5,847		78
Net interest income after provision for credit losses		4,662		5,139		4,623		4,391		4,781		(9)		(2)		18,815		21,267		(12)
Non-interest income:
Interchange fees, net		1,207		1,234		1,213		1,139		1,177		(2)		3		4,793		4,606		4
Service charges and other customer-related fees		424		453		411		379		395		(6)		7		1,667		1,625		3
Net securities gains (losses)		(34)		—		—		—		—		**		—		(34)		(9)		**
Other		390		256		275		199		271		52		44		1,120		914		23
Total non-interest income		1,987		1,943		1,899		1,717		1,843		2		8		7,546		7,136		6
Non-interest expense:
Salaries and associate benefits		2,284		2,274		2,317		2,427		2,266		—		1		9,302		8,425		10
Occupancy and equipment		628		518		506		508		554		21		13		2,160		2,050		5
Marketing		1,254		972		886		897		1,118		29		12		4,009		4,017		—
Professional services		359		295		290		324		481		22		(25)		1,268		1,807		(30)
Communications and data processing		345		344		344		350		352		—		(2)		1,383		1,379		—
Amortization of intangibles		22		24		22		14		25		(8)		(12)		82		70		17
Other		825		433		429		425		284		91		190		2,112		1,415		49
Total non-interest expense		5,717		4,860		4,794		4,945		5,080		18		13		20,316		19,163		6
Income from continuing operations before income taxes		932		2,222		1,728		1,163		1,544		(58)		(40)		6,045		9,240		(35)
Income tax provision		226		432		297		203		312		(48)		(28)		1,158		1,880		(38)
Net income		706		1,790		1,431		960		1,232		(61)		(43)		4,887		7,360		(34)
Dividends and undistributed earnings allocated to participating securities(2)		(10)		(28)		(23)		(16)		(14)		(64)		(29)		(77)		(88)		(13)
Preferred stock dividends		(57)		(57)		(57)		(57)		(57)		—		—		(228)		(228)		—
Net income available to common stockholders		$         639		$      1,705		$      1,351		$         887		$      1,161		(63)		(45)		$      4,582		$      7,044		(35)
												2023 Q4				Year Ended December 31,
		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs 2022
Basic earnings per common share:(2)
Net income per basic common share		$        1.67		$        4.46		$        3.53		$        2.32		$        3.03		(63) %		(45) %		$      11.98		$      17.98		(33) %
Diluted earnings per common share:(2)
Net income per diluted common share		$        1.67		$        4.45		$        3.52		$        2.31		$        3.03		(62) %		(45) %		$      11.95		$      17.91		(33) %
Weighted-average common shares outstanding (in millions):
Basic common shares		381.9		382.5		382.8		382.6		382.6		—		—		382.4		391.8		(2) %
Diluted common shares		382.8		383.3		383.7		383.8		383.7		—		—		383.4		393.2		(2)

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 4: Consolidated Balance Sheets
												2023 Q4
(Dollars in millions)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4
Assets:
Cash and cash equivalents:
Cash and due from banks		$     4,903		$     4,620		$     3,360		$     3,347		$     5,193		6 %		(6) %
Interest-bearing deposits and other short-term investments		38,394		40,249		38,236		43,166		25,663		(5)		50
Total cash and cash equivalents		43,297		44,869		41,596		46,513		30,856		(4)		40
Restricted cash for securitization investors		458		435		452		460		400		5		15
Securities available for sale		79,117		74,837		78,412		81,925		76,919		6		3
Loans held for investment:
Unsecuritized loans held for investment		289,229		284,953		280,933		280,093		283,282		2		2
Loans held in consolidated trusts		31,243		29,827		30,390		28,743		29,049		5		8
Total loans held for investment		320,472		314,780		311,323		308,836		312,331		2		3
Allowance for credit losses		(15,296)		(14,955)		(14,646)		(14,318)		(13,240)		2		16
Net loans held for investment		305,176		299,825		296,677		294,518		299,091		2		2
Loans held for sale		854		742		1,211		363		203		15		**
Premises and equipment, net		4,375		4,378		4,359		4,365		4,351		—		1
Interest receivable		2,478		2,469		2,297		2,250		2,104		—		18
Goodwill		15,065		15,048		15,060		14,779		14,777		—		2
Other assets		27,644		28,832		27,736		26,487		26,548		(4)		4
Total assets		$ 478,464		$ 471,435		$ 467,800		$ 471,660		$ 455,249		1		5
												2023 Q4
(Dollars in millions)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4
Liabilities:
Interest payable		$        649		$        685		$        637		$        621		$        527		(5) %		23 %
Deposits:
Non-interest-bearing deposits		28,024		28,794		29,312		31,186		32,203		(3)		(13)
Interest-bearing deposits		320,389		317,217		314,393		318,641		300,789		1		7
Total deposits		348,413		346,011		343,705		349,827		332,992		1		5
Securitized debt obligations		18,043		17,417		17,861		17,813		16,973		4		6
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase		538		522		649		542		883		3		(39)
Senior and subordinated notes		31,248		31,283		31,627		30,398		30,826		—		1
Other borrowings		27		25		121		24		33		8		(18)
Total other debt		31,813		31,830		32,397		30,964		31,742		—		—
Other liabilities		21,457		21,824		18,641		17,782		20,433		(2)		5
Total liabilities		420,375		417,767		413,241		417,007		402,667		1		4
Stockholders' equity:
Preferred stock		0		0		0		0		0		—		—
Common stock		7		7		7		7		7		—		—
Additional paid-in capital, net		35,541		35,334		35,163		34,952		34,725		1		2
Retained earnings		60,945		60,529		59,028		57,898		57,184		1		7
Accumulated other comprehensive loss		(8,268)		(12,224)		(9,818)		(8,540)		(9,916)		(32)		(17)
Treasury stock, at cost		(30,136)		(29,978)		(29,821)		(29,664)		(29,418)		1		2
Total stockholders' equity		58,089		53,668		54,559		54,653		52,582		8		10
Total liabilities and stockholders' equity		$ 478,464		$ 471,435		$ 467,800		$ 471,660		$ 455,249		1		5

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)
(1)	Total net revenue was reduced by $566 million in Q4 2023, $449 million in Q3 2023, $443 million in Q2 2023, $405 million in Q1 2023 and $321 million in Q4 2022 for credit card finance charges and fees charged-off as uncollectible.
(2)	Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures.
(3)	Tangible book value per common share is a non-GAAP measure calculated based on TCE divided by common shares outstanding. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.
(4)	Total net revenue margin is calculated based on total net revenue for the period divided by average interest-earning assets for the period.
(5)	Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(6)	Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.
(7)	Return on average common equity is calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.
(8)	Return on average tangible common equity is a non-GAAP measure calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average TCE. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.
(9)	Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures.
(10)	Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures.
(11)	Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
(12)	Capital ratios as of the end of Q4 2023 are preliminary and therefore subject to change. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for information on the calculation of each of these ratios.
(13)	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.
**    Not meaningful.

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 6: Average Balances, Net Interest Income and Net Interest Margin
		2023 Q4						2023 Q3						2022 Q4
(Dollars in millions, except as noted)		Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale		$   316,670		$      9,934		12.55 %		$   313,461		$      9,696		12.37 %		$   307,852		$      8,360		10.86 %
Investment securities		88,650		669		3.02		87,845		627		2.86		87,110		548		2.52
Cash equivalents and other		41,609		542		5.21		42,226		550		5.21		26,089		250		3.84
Total interest-earning assets		$   446,929		$     11,145		9.97		$   443,532		$     10,873		9.81		$   421,051		$      9,158		8.70
Interest-bearing liabilities:
Interest-bearing deposits		$   316,808		$      2,745		3.47		$   316,032		$      2,611		3.30		$   292,793		$      1,335		1.82
Securitized debt obligations		18,022		263		5.84		17,649		249		5.63		16,478		170		4.13
Senior and subordinated notes		32,586		608		7.46		31,522		579		7.36		30,718		430		5.59
Other borrowings and liabilities		2,349		10		1.74		2,473		11		1.79		4,289		26		2.50
Total interest-bearing liabilities		$   369,765		$      3,626		3.92		$   367,676		$      3,450		3.75		$   344,278		$      1,961		2.28
Net interest income/spread				$      7,519		6.05				$      7,423		6.05				$      7,197		6.42
Impact of non-interest-bearing funding						0.68						0.64						0.42
Net interest margin						6.73 %						6.69 %						6.84 %
								Year Ended December 31,
								2023						2022
(Dollars in millions, except as noted)								Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale								$   312,173		$     37,410		11.98 %		$   293,839		$     28,910		9.84 %
Investment securities								89,105		2,550		2.86		90,608		1,884		2.08
Cash equivalents and other								39,960		1,978		4.95		22,199		443		2.00
Total interest-earning assets								$   441,238		$     41,938		9.50		$   406,646		$     31,237		7.68
Interest-bearing liabilities:
Interest-bearing deposits								$   313,737		$      9,489		3.02		$   277,208		$      2,535		0.91
Securitized debt obligations								17,675		959		5.42		15,603		384		2.46
Senior and subordinated notes								31,109		2,204		7.08		29,286		1,074		3.67
Other borrowings and liabilities								2,394		45		1.89		7,800		130		1.67
Total interest-bearing liabilities								$   364,915		$     12,697		3.48		$   329,897		$      4,123		1.25
Net interest income/spread										$     29,241		6.03				$     27,114		6.43
Impact of non-interest-bearing funding												0.60						0.24
Net interest margin												6.63 %						6.67 %

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 7: Loan Information and Performance Statistics
												2023 Q4				Year Ended December 31,
(Dollars in millions, except as noted)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs. 2022
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card		$   147,666		$   140,320		$   135,975		$   130,980		$   131,581		5 %		12 %		$ 147,666		$ 131,581		12 %
International card businesses		6,881		6,463		6,516		6,162		6,149		6		12		6,881		6,149		12
Total credit card		154,547		146,783		142,491		137,142		137,730		5		12		154,547		137,730		12
Consumer banking:
Auto		74,075		75,456		75,841		76,652		78,373		(2)		(5)		74,075		78,373		(5)
Retail banking		1,362		1,388		1,439		1,499		1,552		(2)		(12)		1,362		1,552		(12)
Total consumer banking		75,437		76,844		77,280		78,151		79,925		(2)		(6)		75,437		79,925		(6)
Commercial banking:
Commercial and multifamily real estate		34,446		35,622		36,041		37,132		37,453		(3)		(8)		34,446		37,453		(8)
Commercial and industrial		56,042		55,531		55,511		56,411		57,223		1		(2)		56,042		57,223		(2)
Total commercial banking		90,488		91,153		91,552		93,543		94,676		(1)		(4)		90,488		94,676		(4)
Total loans held for investment		$   320,472		$   314,780		$   311,323		$   308,836		$   312,331		2		3		$ 320,472		$ 312,331		3
Loans Held for Investment (Average)
Credit card:
Domestic credit card		$   142,112		$   137,500		$   132,505		$   128,562		$   124,816		3 %		14 %		$ 135,213		$ 114,506		18 %
International card businesses		6,515		6,549		6,257		6,108		5,836		(1)		12		6,359		5,886		8
Total credit card		148,627		144,049		138,762		134,670		130,652		3		14		141,572		120,392		18
Consumer banking:
Auto		74,861		75,740		76,233		77,465		79,108		(1)		(5)		76,067		78,772		(3)
Retail banking		1,377		1,414		1,465		1,529		1,592		(3)		(14)		1,446		1,663		(13)
Total consumer banking		76,238		77,154		77,698		78,994		80,700		(1)		(6)		77,513		80,435		(4)
Commercial banking:
Commercial and multifamily real estate		35,414		35,964		37,068		37,373		37,848		(2)		(6)		36,448		36,639		(1)
Commercial and industrial		55,611		55,592		56,127		56,719		57,681		—		(4)		56,008		54,772		2
Total commercial banking		91,025		91,556		93,195		94,092		95,529		(1)		(5)		92,456		91,411		1
Total average loans held for investment		$   315,890		$   312,759		$   309,655		$   307,756		$   306,881		1		3		$ 311,541		$ 292,238		7
												2023 Q4				Year Ended December 31,
		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs. 2022
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card(2)		5.35 %		4.40 %		4.38 %		4.04 %		3.22 %		95 bps		213 bps		4.56 %		2.47 %		209 bps
International card businesses		4.94		4.87		4.98		4.54		4.29		7		65		4.84		3.65		119
Total credit card		5.33		4.42		4.41		4.06		3.27		91		206		4.57		2.53		204
Consumer banking:
Auto		2.19		1.77		1.40		1.53		1.66		42		53		1.72		1.00		72
Retail banking		5.68		3.80		3.25		2.97		5.15		188		53		3.89		4.24		(35)
Total consumer banking		2.25		1.81		1.43		1.56		1.73		44		52		1.76		1.06		70
Commercial banking:
Commercial and multifamily real estate		0.96		0.27		3.91		0.19		0.05		69		91		1.34		—		134
Commercial and industrial		0.26		0.24		0.11		0.03		0.06		2		20		0.16		0.13		3
Total commercial banking		0.53		0.25		1.62		0.09		0.06		28		47		0.62		0.08		54
Total net charge-offs		3.21		2.56		2.82		2.21		1.86		65		135		2.70		1.36		134
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card		4.61 %		4.31 %		3.74 %		3.66 %		3.43 %		30 bps		118 bps		4.61 %		3.43 %		118 bps
International card businesses		4.67		4.43		4.24		4.20		4.03		24		64		4.67		4.03		64
Total credit card		4.61		4.32		3.77		3.68		3.46		29		115		4.61		3.46		115
Consumer banking:
Auto		6.34		5.64		5.38		5.00		5.62		70		72		6.34		5.62		72
Retail banking		1.19		1.07		1.19		0.56		1.02		12		17		1.19		1.02		17
Total consumer banking		6.25		5.55		5.30		4.92		5.53		70		72		6.25		5.53		72
Nonperforming Loans and Nonperforming Assets Rates(3)(4)
Credit card:
International card businesses		0.13 %		0.14 %		0.16 %		0.12 %		0.14 %		(1) bps		(1) bps		0.13 %		0.14 %		(1) bps
Total credit card		0.01		0.01		0.01		0.01		0.01		—		—		0.01		0.01		—
Consumer banking:
Auto		0.96		0.85		0.77		0.67		0.76		11		20		0.96		0.76		20
Retail banking		3.36		3.28		2.99		2.94		2.49		8		87		3.36		2.49		87
Total consumer banking		1.00		0.89		0.82		0.72		0.79		11		21		1.00		0.79		21
Commercial banking:
Commercial and multifamily real estate		1.23		1.29		1.15		0.90		0.72		(6)		51		1.23		0.72		51
Commercial and industrial		0.60		0.65		0.71		0.72		0.75		(5)		(15)		0.60		0.75		(15)
Total commercial banking		0.84		0.90		0.89		0.79		0.74		(6)		10		0.84		0.74		10
Total nonperforming loans		0.48		0.48		0.47		0.42		0.43		—		5		0.48		0.43		5
Total nonperforming assets		0.50		0.50		0.48		0.44		0.45		—		5		0.50		0.45		5

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity
		Three Months Ended December 31, 2023
		Credit Card						Consumer Banking
(Dollars in millions)		Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of September 30, 2023		$       10,925		$             399		$       11,324		$         2,013		$             36		$         2,049		$         1,582		$       14,955
Charge-offs		(2,192)		(114)		(2,306)		(650)		(24)		(674)		(126)		(3,106)
Recoveries		290		33		323		240		5		245		5		573
Net charge-offs		(1,902)		(81)		(1,983)		(410)		(19)		(429)		(121)		(2,533)
Provision for credit losses		2,238		115		2,353		399		23		422		84		2,859
Allowance build (release) for credit losses		336		34		370		(11)		4		(7)		(37)		326
Other changes(5)		—		15		15		—		—		—		—		15
Balance as of December 31, 2023		11,261		448		11,709		2,002		40		2,042		1,545		15,296
Reserve for unfunded lending commitments:
Balance as of September 30, 2023		—		—		—		—		—		—		158		158
Provision (benefit) for losses on unfunded lending commitments		—		—		—		—		—		—		—		—
Balance as of December 31, 2023		—		—		—		—		—		—		158		158
Combined allowance and reserve as of December 31, 2023		$       11,261		$             448		$       11,709		$         2,002		$             40		$         2,042		$         1,703		$       15,454
		Year Ended December 31, 2023
		Credit Card						Consumer Banking
(Dollars in millions)		Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2022		$         9,165		$             380		$         9,545		$         2,187		$             50		$         2,237		$         1,458		$       13,240
Cumulative effects of accounting standards adoption(6)		(40)		(23)		(63)		—		—		—		—		(63)
Balance as of January 1, 2023		9,125		357		9,482		2,187		50		2,237		1,458		13,177
Charge-offs		(7,348)		(439)		(7,787)		(2,252)		(75)		(2,327)		(588)		(10,702)
Recoveries		1,184		131		1,315		944		19		963		10		2,288
Net charge-offs		(6,164)		(308)		(6,472)		(1,308)		(56)		(1,364)		(578)		(8,414)
Provision for credit losses		8,268		383		8,651		1,123		46		1,169		665		10,485
Allowance build (release) for credit losses		2,104		75		2,179		(185)		(10)		(195)		87		2,071
Other changes(5)		32		16		48		—		—		—		—		48
Balance as of December 31, 2023		11,261		448		11,709		2,002		40		2,042		1,545		15,296
Reserve for unfunded lending commitments:
Balance as of December 31, 2022		—		—		—		—		—		—		218		218
Provision (benefit) for losses on unfunded lending commitments		—		—		—		—		—		—		(60)		(60)
Balance as of December 31, 2023		—		—		—		—		—		—		158		158
Combined allowance and reserve as of December 31, 2023		$       11,261		$             448		$       11,709		$         2,002		$             40		$         2,042		$         1,703		$       15,454

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 9: Financial Summary—Business Segment Results
		Three Months Ended December 31, 2023										Year Ended December 31, 2023
(Dollars in millions)		Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total		Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)		$        5,231		$       1,951		$             617		$      (280)		$      7,519		$       19,729		$       8,713		$          2,518		$   (1,719)		$    29,241
Non-interest income		1,565		163		245		14		1,987		5,940		589		1,002		15		7,546
Total net revenue (loss)		6,796		2,114		862		(266)		9,506		25,669		9,302		3,520		(1,704)		36,787
Provision (benefit) for credit losses		2,353		422		84		(2)		2,857		8,651		1,169		605		1		10,426
Non-interest expense		3,417		1,402		487		411		5,717		12,490		5,178		2,011		637		20,316
Income (loss) from continuing operations before income taxes		1,026		290		291		(675)		932		4,528		2,955		904		(2,342)		6,045
Income tax provision (benefit)		241		68		68		(151)		226		1,071		697		213		(823)		1,158
Income (loss) from continuing operations, net of tax		$           785		$          222		$             223		$      (524)		$        706		$        3,457		$       2,258		$             691		$   (1,519)		$      4,887
		Three Months Ended September 30, 2023
(Dollars in millions)		Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)		$        5,114		$       2,133		$             621		$      (445)		$      7,423
Non-interest income		1,513		142		288		—		1,943
Total net revenue (loss)		6,627		2,275		909		(445)		9,366
Provision for credit losses		1,953		213		116		2		2,284
Non-interest expense		3,015		1,262		512		71		4,860
Income (loss) from continuing operations before income taxes		1,659		800		281		(518)		2,222
Income tax provision (benefit)		393		189		67		(217)		432
Income (loss) from continuing operations, net of tax		$        1,266		$          611		$             214		$      (301)		$      1,790
		Three Months Ended December 31, 2022										Year Ended December 31, 2022
(Dollars in millions)		Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total		Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)		$        4,533		$       2,394		$             520		$      (250)		$      7,197		$       16,584		$       8,965		$          2,461		$      (896)		$    27,114
Non-interest income (loss)		1,449		139		261		(6)		1,843		5,771		469		1,129		(233)		7,136
Total net revenue (loss)		5,982		2,533		781		(256)		9,040		22,355		9,434		3,590		(1,129)		34,250
Provision (benefit) for credit losses		1,878		477		62		(1)		2,416		4,265		1,173		415		(6)		5,847
Non-interest expense		3,069		1,450		555		6		5,080		11,627		5,312		2,070		154		19,163
Income (loss) from continuing operations before income taxes		1,035		606		164		(261)		1,544		6,463		2,949		1,105		(1,277)		9,240
Income tax provision (benefit)		245		144		39		(116)		312		1,536		699		262		(617)		1,880
Income (loss) from continuing operations, net of tax		$           790		$          462		$             125		$      (145)		$      1,232		$        4,927		$       2,250		$             843		$      (660)		$      7,360

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 10: Financial & Statistical Summary—Credit Card Business
												2023 Q4 vs				Year Ended December 31,
(Dollars in millions, except as noted)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs 2022
Credit Card
Earnings:
Net interest income		$     5,231		$     5,114		$     4,727		$     4,657		$     4,533		2 %		15 %		$   19,729		$   16,584		19 %
Non-interest income		1,565		1,513		1,499		1,363		1,449		3		8		5,940		5,771		3
Total net revenue		6,796		6,627		6,226		6,020		5,982		3		14		25,669		22,355		15
Provision for credit losses		2,353		1,953		2,084		2,261		1,878		20		25		8,651		4,265		103
Non-interest expense		3,417		3,015		3,020		3,038		3,069		13		11		12,490		11,627		7
Income from continuing operations before income taxes		1,026		1,659		1,122		721		1,035		(38)		(1)		4,528		6,463		(30)
Income tax provision		241		393		265		172		245		(39)		(2)		1,071		1,536		(30)
Income from continuing operations, net of tax		$         785		$     1,266		$        857		$        549		$        790		(38)		(1)		$      3,457		$     4,927		(30)
Selected performance metrics:
Period-end loans held for investment		$  154,547		$ 146,783		$ 142,491		$ 137,142		$ 137,730		5		12		$  154,547		$ 137,730		12
Average loans held for investment		148,627		144,049		138,762		134,670		130,652		3		14		141,572		120,392		18
Average yield on loans outstanding(1)		18.96 %		19.02 %		18.17 %		17.98 %		17.69 %		(6) bps		127 bps		18.54 %		16.21 %		233 bps
Total net revenue margin(8)		18.24		18.40		17.95		17.88		18.32		(16)		(8)		18.12		18.47		(35)
Net charge-off rate		5.33		4.42		4.41		4.06		3.27		91		206		4.57		2.53		204
30+ day performing delinquency rate		4.61		4.32		3.77		3.68		3.46		29		115		4.61		3.46		115
30+ day delinquency rate		4.62		4.32		3.77		3.69		3.46		30		116		4.62		3.46		116
Nonperforming loan rate(3)		0.01		0.01		0.01		0.01		0.01		—		—		0.01		0.01		—
Purchase volume(9)		$  162,055		$ 158,640		$ 157,937		$ 141,658		$ 155,633		2 %		4 %		$  620,290		$ 587,283		6 %
												2023 Q4 vs				Year Ended December 31,
(Dollars in millions, except as noted)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs 2022
Domestic Card
Earnings:
Net interest income		$      4,940		$     4,827		$     4,453		$     4,390		$     4,280		2 %		15 %		$   18,610		$   15,616		19 %
Non-interest income		1,498		1,445		1,431		1,298		1,392		4		8		5,672		5,363		6
Total net revenue		6,438		6,272		5,884		5,688		5,672		3		14		24,282		20,979		16
Provision for credit losses		2,238		1,861		1,995		2,174		1,800		20		24		8,268		4,020		106
Non-interest expense		3,186		2,810		2,805		2,847		2,866		13		11		11,648		10,827		8
Income from continuing operations before income taxes		1,014		1,601		1,084		667		1,006		(37)		1		4,366		6,132		(29)
Income tax provision		239		378		256		157		238		(37)		—		1,030		1,453		(29)
Income from continuing operations, net of tax		$         775		$     1,223		$        828		$        510		$        768		(37)		1		$      3,336		$     4,679		(29)
Selected performance metrics:
Period-end loans held for investment		$  147,666		$ 140,320		$ 135,975		$ 130,980		$ 131,581		5		12		$  147,666		$ 131,581		12
Average loans held for investment		142,112		137,500		132,505		128,562		124,816		3		14		135,213		114,506		18
Average yield on loans outstanding(1)		18.88 %		18.96 %		18.07 %		17.88 %		17.58 %		(8) bps		130 bps		18.46 %		16.07 %		239 bps
Total net revenue margin(8)		18.07		18.24		17.76		17.70		18.18		(17)		(11)		17.94		18.28		(34)
Net charge-off rate(2)		5.35		4.40		4.38		4.04		3.22		95		213		4.56		2.47		209
30+ day performing delinquency rate		4.61		4.31		3.74		3.66		3.43		30		118		4.61		3.43		118
Purchase volume(9)		$  158,290		$  154,880		$ 154,184		$ 138,310		$ 151,995		2 %		4 %		$  605,664		$ 568,752		6 %
Refreshed FICO scores:(10)
Greater than 660		68 %		69 %		69 %		68 %		69 %		(1)		(1)		68 %		69 %		(1)
660 or below		32		31		31		32		31		1		1		32		31		1
Total		100 %		100 %		100 %		100 %		100 %						100 %		100 %

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 11: Financial & Statistical Summary—Consumer Banking Business
												2023 Q4 vs				Year Ended December 31,
(Dollars in millions, except as noted)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs 2022
Consumer Banking
Earnings:
Net interest income		$    1,951		$    2,133		$    2,269		$    2,360		$    2,394		(9) %		(19) %		$     8,713		$     8,965		(3) %
Non-interest income		163		142		149		135		139		15		17		589		469		26
Total net revenue		2,114		2,275		2,418		2,495		2,533		(7)		(17)		9,302		9,434		(1)
Provision for credit losses		422		213		259		275		477		98		(12)		1,169		1,173		—
Non-interest expense		1,402		1,262		1,231		1,283		1,450		11		(3)		5,178		5,312		(3)
Income from continuing operations before income taxes		290		800		928		937		606		(64)		(52)		2,955		2,949		—
Income tax provision		68		189		219		221		144		(64)		(53)		697		699		—
Income from continuing operations, net of tax		$        222		$        611		$        709		$        716		$        462		(64)		(52)		$     2,258		$     2,250		—
Selected performance metrics:
Period-end loans held for investment		$   75,437		$   76,844		$   77,280		$   78,151		$   79,925		(2)		(6)		$   75,437		$   79,925		(6)
Average loans held for investment		76,238		77,154		77,698		78,994		80,700		(1)		(6)		77,513		80,435		(4)
Average yield on loans held for investment(1)		8.17 %		7.97 %		7.65 %		7.40 %		7.31 %		20 bps		86 bps		7.79 %		7.19 %		60 bps
Auto loan originations		$     6,157		$     7,452		$     7,160		$     6,211		$     6,635		(17) %		(7) %		$   26,980		$   36,965		(27) %
Period-end deposits		296,171		290,789		286,174		291,163		270,592		2		9		296,171		270,592		9
Average deposits		291,486		287,457		285,647		278,772		262,844		1		11		285,880		257,089		11
Average deposits interest rate		3.06 %		2.85 %		2.46 %		1.96 %		1.42 %		21 bps		164 bps		2.59 %		0.72 %		187 bps
Net charge-off rate		2.25		1.81		1.43		1.56		1.73		44		52		1.76		1.06		70
30+ day performing delinquency rate		6.25		5.55		5.30		4.92		5.53		70		72		6.25		5.53		72
30+ day delinquency rate		7.08		6.27		5.95		5.46		6.18		81		90		7.08		6.18		90
Nonperforming loan rate(3)		1.00		0.89		0.82		0.72		0.79		11		21		1.00		0.79		21
Nonperforming asset rate(4)		1.09		0.96		0.88		0.78		0.87		13		22		1.09		0.87		22
Auto—At origination FICO scores:(11)
Greater than 660		53 %		52 %		52 %		52 %		53 %		1 %		—		53 %		53 %		—
621 - 660		20		20		20		20		20		—		—		20		20		—
620 or below		27		28		28		28		27		(1)		—		27		27		—
Total		100 %		100 %		100 %		100 %		100 %						100 %		100 %

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 12: Financial & Statistical Summary—Commercial Banking Business
												2023 Q4 vs				Year Ended December 31,
(Dollars in millions, except as noted)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs 2022
Commercial Banking
Earnings:
Net interest income(12)		$        617		$        621		$        632		$        648		$        520		(1) %		19 %		$     2,518		$     2,461		2 %
Non-interest income		245		288		257		212		261		(15)		(6)		1,002		1,129		(11)
Total net revenue(7)		862		909		889		860		781		(5)		10		3,520		3,590		(2)
Provision for credit losses		84		116		146		259		62		(28)		35		605		415		46
Non-interest expense		487		512		482		530		555		(5)		(12)		2,011		2,070		(3)
Income from continuing operations before income taxes		291		281		261		71		164		4		77		904		1,105		(18)
Income tax provision		68		67		61		17		39		1		74		213		262		(19)
Income from continuing operations, net of tax		$        223		$        214		$        200		$          54		$        125		4		78		$        691		$        843		(18)
Selected performance metrics:
Period-end loans held for investment(13)		$   90,488		$   91,153		$   91,552		$   93,543		$   94,676		(1)		(4)		$   90,488		$   94,676		(4)
Average loans held for investment		91,025		91,556		93,195		94,092		95,529		(1)		(5)		92,456		91,411		1
Average yield on loans held for investment(1)(7)		7.24 %		7.16 %		6.75 %		6.31 %		5.63 %		8 bps		161 bps		6.86 %		4.02 %		284 bps
Period-end deposits		$   32,712		$   36,035		$   36,793		$   38,380		$   40,808		(9) %		(20) %		$   32,712		$   40,808		(20) %
Average deposits		34,525		37,279		37,960		39,941		42,779		(7)		(19)		37,411		42,018		(11)
Average deposits interest rate		2.79 %		2.93 %		2.68 %		2.34 %		1.80 %		(14) bps		99 bps		2.68 %		0.73 %		195 bps
Net charge-off rate		0.53		0.25		1.62		0.09		0.06		28		47		0.62		0.08		54
Nonperforming loan rate(3)		0.84		0.90		0.89		0.79		0.74		(6)		10		0.84		0.74		10
Nonperforming asset rate(4)		0.84		0.90		0.89		0.79		0.74		(6)		10		0.84		0.74		10
Risk category:(14)
Noncriticized		$   81,758		$   82,968		$   84,583		$   85,964		$   87,620		(1) %		(7) %		$   81,758		$   87,620		(7) %
Criticized performing		7,969		7,363		6,158		6,839		6,355		8		25		7,969		6,355		25
Criticized nonperforming		761		822		811		740		701		(7)		9		761		701		9
Total commercial banking loans held for investment		$   90,488		$   91,153		$   91,552		$   93,543		$   94,676		(1)		(4)		$   90,488		$   94,676		(4)
Risk category as a percentage of period-end loans held for investment:(14)
Noncriticized		90.35 %		91.02 %		92.38 %		91.90 %		92.55 %		(67) bps		(220) bps		90.35 %		92.55 %		(220) bps
Criticized performing		8.81		8.08		6.73		7.31		6.71		73		210		8.81		6.71		210
Criticized nonperforming		0.84		0.90		0.89		0.79		0.74		(6)		10		0.84		0.74		10
Total commercial banking loans		100.00 %		100.00 %		100.00 %		100.00 %		100.00 %						100.00 %		100.00 %

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 13: Financial & Statistical Summary—Other and Total
												2023 Q4 vs				Year Ended December 31,
(Dollars in millions)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		2023 Q3		2022 Q4		2023		2022		2023 vs 2022
Other
Earnings:
Net interest loss(12)		$        (280)		$        (445)		$       (515)		$       (479)		$       (250)		(37) %		12 %		$    (1,719)		$       (896)		92 %
Non-interest income (loss)		14		—		(6)		7		(6)		**		**		15		(233)		**
Total net loss(9)		(266)		(445)		(521)		(472)		(256)		(40)		4		(1,704)		(1,129)		51
Provision (benefit) for credit losses		(2)		2		1		—		(1)		**		100		1		(6)		**
Non-interest expense(15)		411		71		61		94		6		**		**		637		154		**
Loss from continuing operations before income taxes		(675)		(518)		(583)		(566)		(261)		30		159		(2,342)		(1,277)		83
Income tax benefit		(151)		(217)		(248)		(207)		(116)		(30)		30		(823)		(617)		33
Loss from continuing operations, net of tax		$        (524)		$        (301)		$        (335)		$        (359)		$        (145)		74		**		$     (1,519)		$        (660)		130
Selected performance metrics:
Period-end deposits		$    19,530		$    19,187		$    20,738		$    20,284		$    21,592		2		(10)		$    19,530		$    21,592		(10)
Average deposits		19,317		20,277		20,071		21,410		20,935		(5)		(8)		20,263		14,444		40
Total
Earnings:
Net interest income		$      7,519		$      7,423		$      7,113		$      7,186		$      7,197		1 %		4 %		$    29,241		$    27,114		8 %
Non-interest income		1,987		1,943		1,899		1,717		1,843		2		8		7,546		7,136		6
Total net revenue		9,506		9,366		9,012		8,903		9,040		1		5		36,787		34,250		7
Provision for credit losses		2,857		2,284		2,490		2,795		2,416		25		18		10,426		5,847		78
Non-interest expense		5,717		4,860		4,794		4,945		5,080		18		13		20,316		19,163		6
Income from continuing operations before income taxes		932		2,222		1,728		1,163		1,544		(58)		(40)		6,045		9,240		(35)
Income tax provision		226		432		297		203		312		(48)		(28)		1,158		1,880		(38)
Income from continuing operations, net of tax		$         706		$      1,790		$      1,431		$         960		$      1,232		(61)		(43)		$      4,887		$      7,360		(34)
Selected performance metrics:
Period-end loans held for investment		$  320,472		$  314,780		$  311,323		$  308,836		$  312,331		2		3		$  320,472		$  312,331		3
Average loans held for investment		315,890		312,759		309,655		307,756		306,881		1		3		311,541		292,238		7
Period-end deposits		348,413		346,011		343,705		349,827		332,992		1		5		348,413		332,992		5
Average deposits		345,328		345,013		343,678		340,123		326,558		—		6		343,554		313,551		10

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)
(1)	Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing. Average yield is calculated using whole dollar values for average balances and interest income/expense. Accordingly, total interest earning assets less total interest bearing liabilities may not total net interest income/spread.
(2)	In December 2023, we recognized $18 million of incremental net charge-offs on certain loans in hardship programs from the one-time impact of operational delays, which increased the Q4 2023 net charge-off rate by approximately 5 basis points. Excluding this impact, the Q4 2023 net charge-off rate would have been 5.30%.
(3)	Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category. For Commercial Banking, loans categorized as nonperforming are considered criticized nonperforming.
(4)	Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.
(5)	Primarily represents the initial allowance for purchased credit-deteriorated loans and foreign currency translation adjustments. The initial allowance of purchased credit-deteriorated loans was $0 million and $32 million for the three and twelve months ended December 31, 2023, respectively.
(6)	Impact from the adoption of ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures as of January 1, 2023.
(7)	Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.
(8)	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average loans outstanding during the period.
(9)	Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.
(10)	Percentages represent period-end loans held for investment in each credit score category. Domestic Card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.
(11)	Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.
(12)	In the fourth quarter of 2022, an internal funds transfer pricing impact of $176 million decreased net interest income in the Commercial Banking business and increased the Other category, and was therefore neutral to Capital One Financial Corporation.
(13)	We reclassified $888 million in commercial office real estate loans from loans held for investment to loans held for sale as of June 30, 2023.
(14)	Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.
(15)	Includes the impact of the $289 million FDIC special assessment in Q4 2023 and any charges incurred as a result of restructuring activities for the periods presented.
**    Not meaningful.

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1)
		Basel III Standardized Approach
(Dollars in millions, except as noted)		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Regulatory Capital Metrics
Common equity excluding AOCI		$        62,710		$        62,245		$        60,729		$         59,546		$        59,450
Adjustments:
AOCI, net of tax(2)		27		(9)		31		(3)		(17)
Goodwill, net of related deferred tax liabilities		(14,811)		(14,797)		(14,813)		(14,538)		(14,540)
Other Intangible and deferred tax assets, net of deferred tax liabilities		(311)		(333)		(358)		(371)		(162)
Common equity Tier 1 capital		$        47,615		$        47,106		$        45,589		$         44,634		$        44,731
Tier 1 capital		$        52,460		$        51,952		$        50,434		$         49,479		$        49,576
Total capital(3)		59,124		58,844		57,607		56,611		56,714
Risk-weighted assets		369,217		362,962		359,613		356,079		357,920
Adjusted average assets(4)		467,553		464,286		459,732		455,477		444,704
Capital Ratios
Common equity Tier 1 capital(5)		12.9 %		13.0 %		12.7 %		12.5 %		12.5 %
Tier 1 capital(6)		14.2		14.3		14.0		13.9		13.9
Total capital(7)		16.0		16.2		16.0		15.9		15.8
Tier 1 leverage(4)		11.2		11.2		11.0		10.9		11.1
TCE(8)		8.2		7.3		7.6		7.6		7.5

 

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results, however, they may not be comparable to similarly-titled measures reported by other companies. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.

(Dollars in millions, except per share data and as noted)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4		Year Ended December 31,
												2023		2022
Adjusted diluted earnings per share ("EPS"):
Net income available to common stockholders (GAAP)		$           639		$       1,705		$        1,351		$              887		$           1,161		$             4,582		$             7,044
FDIC special assessment		289		—		—		—		—		289		—
Insurance recoveries and legal reserve activity		—		—		—		—		(177)		—		(177)
Restructuring charges		—		—		—		—		72		—		72
Adjusted net income available to common stockholders before income tax impacts (non-GAAP)		928		1,705		1,351		887		1,056		4,871		6,939
Income tax impacts		(70)		—		—		—		25		(70)		25
Adjusted net income available to common stockholders (non-GAAP)		$           858		$       1,705		$        1,351		$              887		$           1,081		$             4,801		$             6,964
Diluted weighted-average common shares outstanding (in millions) (GAAP)		382.8		383.3		383.7		383.8		383.7		383.4		393.2
Diluted EPS (GAAP)		$          1.67		$         4.45		$       3.52		$          2.31		$          3.03		$             11.95		$             17.91
Impact of adjustments noted above		0.57		—		—		—		(0.21)		0.57		(0.20)
Adjusted diluted EPS (non-GAAP)		$          2.24		$         4.45		$       3.52		$          2.31		$          2.82		$             12.52		$             17.71
Adjusted efficiency ratio:
Non-interest expense (GAAP)		$        5,717		$          4,860		$        4,794		$           4,945		$           5,080		$           20,316		$           19,163
FDIC special assessment		(289)		—		—		—		—		(289)		—
Insurance recoveries and legal reserve activity		—		—		—		—		177		—		177
Restructuring charges		—		—		—		—		(72)		—		(72)
Adjusted non-interest expense (non-GAAP)		$        5,428		$          4,860		$        4,794		$           4,945		$           5,185		$           20,027		$           19,268
Total net revenue (GAAP)		$        9,506		$          9,366		$        9,012		$           8,903		$           9,040		$           36,787		$           34,250
Efficiency ratio (GAAP)		60.14 %		51.89 %		53.20 %		55.54 %		56.19 %		55.23 %		55.95 %
Impact of adjustments noted above		(304) bps		—		—		—		117 bps		(79) bps		31 bps
Adjusted efficiency ratio (non-GAAP)		57.10 %		51.89 %		53.20 %		55.54 %		57.36 %		54.44 %		56.26 %
Adjusted operating efficiency ratio:
Operating expense (GAAP)		$        4,463		$          3,888		$        3,908		$           4,048		$           3,962		$           16,307		$           15,146
FDIC special assessment		(289)		—		—		—		—		(289)		—
Insurance recoveries and legal reserve activity		—		—		—		—		177		—		177
Restructuring charges		—		—		—		—		(72)		—		(72)
Adjusted operating expense (non-GAAP)		$        4,174		$          3,888		$        3,908		$           4,048		$           4,067		$           16,018		$           15,251
Total net revenue (GAAP)		$        9,506		$          9,366		$        9,012		$           8,903		$           9,040		$           36,787		$           34,250
Operating efficiency ratio (GAAP)		46.95 %		41.51 %		43.36 %		45.47 %		43.83 %		44.33 %		44.22 %
Impact of adjustments noted above		(304) bps		—		—		—		116 bps		(79) bps		31 bps
Adjusted operating efficiency ratio (non-GAAP)		43.91 %		41.51 %		43.36 %		45.47 %		44.99 %		43.54 %		44.53 %

 

Reconciliation of Non-GAAP Measures

The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following table presents reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP. 

(Dollars in millions)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4
Pre- Provision Earnings
Total net revenue		$        9,506		$         9,366		$         9,012		$         8,903		$         9,040
Non-interest expense		(5,717)		(4,860)		(4,794)		(4,945)		(5,080)
Pre-provision earnings(9)		$        3,789		$         4,506		$         4,218		$         3,958		$         3,960
Tangible Common Equity (Period-End)
Stockholders' equity		$      58,089		$       53,668		$       54,559		$       54,653		$       52,582
Goodwill and other intangible assets(10)		(15,289)		(15,308)		(15,356)		(15,098)		(14,902)
Noncumulative perpetual preferred stock		(4,845)		(4,845)		(4,845)		(4,845)		(4,845)
Tangible common equity(11)		$      37,955		$       33,515		$       34,358		$       34,710		$       32,835
Tangible Common Equity (Average)
Stockholders' equity		$      55,632		$       55,012		$       55,357		$       54,773		$       52,439
Goodwill and other intangible assets(10)		(15,304)		(15,348)		(15,187)		(14,984)		(14,926)
Noncumulative perpetual preferred stock		(4,845)		(4,845)		(4,845)		(4,845)		(4,845)
Tangible common equity(11)		$      35,483		$       34,819		$       35,325		$       34,944		$       32,668
Return on Tangible Common Equity (Average)
Net income available to common stockholders		$           639		$         1,705		$         1,351		$           887		$         1,161
Tangible common equity (Average)		35,483		34,819		35,325		34,944		32,668
Return on tangible common equity(11)(12)		7.20 %		19.59 %		15.30 %		10.15 %		14.22 %
Tangible Assets (Period-End)
Total assets		$     478,464		$     471,435		$     467,800		$     471,660		$     455,249
Goodwill and other intangible assets(10)		(15,289)		(15,308)		(15,356)		(15,098)		(14,902)
Tangible assets(11)		$     463,175		$     456,127		$     452,444		$     456,562		$     440,347
(Dollars in millions)		2023 Q4		2023 Q3		2023 Q2		2023 Q1		2022 Q4
Tangible Assets (Average)
Total assets		$     472,594		$     469,860		$     466,652		$     462,324		$     449,659
Goodwill and other intangible assets(10)		(15,304)		(15,348)		(15,187)		(14,984)		(14,926)
Tangible assets(11)		$     457,290		$     454,512		$     451,465		$     447,340		$     434,733
Return on Tangible Assets (Average)
Net income		$           706		$         1,790		$         1,431		$           960		$         1,232
Tangible Assets (Average)		457,290		454,512		451,465		447,340		434,733
Return on tangible assets(11)(13)		0.62 %		1.58 %		1.27 %		0.86 %		1.13 %
TCE Ratio
Tangible common equity (Period-end)		$      37,955		$       33,515		$       34,358		$       34,710		$       32,835
Tangible Assets (Period-end)		463,175		456,127		452,444		456,562		440,347
TCE Ratio(11)		8.2 %		7.3 %		7.6 %		7.6 %		7.5 %
Tangible Book Value per Common Share
Tangible common equity (Period-end)		$      37,955		$       33,515		$       34,358		$       34,710		$       32,835
Outstanding Common Shares		380.4		381.0		381.4		382.0		381.3
Tangible book value per common share(11)		$        99.78		$         87.97		$         90.07		$         90.86		$         86.11

__________

(1)	Regulatory capital metrics and capital ratios as of December 31, 2023 are preliminary and therefore subject to change.
(2)	Excludes certain components of AOCI in accordance with rules applicable to Category III institutions.
(3)	Total capital equals the sum of Tier 1 capital and Tier 2 capital.
(4)	Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.
(5)	Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.
(6)	Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(7)	Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.
(8)	TCE ratio is a Non-GAAP measure calculated based on TCE divided by tangible assets.
(9)	Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.
(10)	Includes impact of related deferred taxes.
(11)	Management believes that this financial metric is useful in assessing capital adequacy and the level of returns generated.
(12)	Return on average tangible common equity is a non-GAAP measure calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average TCE.
(13)	Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period.

 

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SOURCE Capital One Financial Corporation

FAQ

What was the net income for the fourth quarter of 2023?

The net income for the fourth quarter of 2023 was $706 million for Capital One Financial Corporation (COF).

What was the adjusted net income per diluted common share for the fourth quarter of 2023?

The adjusted net income for the fourth quarter of 2023 was $2.24 per diluted common share for Capital One Financial Corporation (COF).

How much did the total net revenue increase by in the fourth quarter of 2023?

The total net revenue increased by 1 percent to $9.5 billion in the fourth quarter of 2023 for Capital One Financial Corporation (COF).

What was the increase in credit card period-end loans in the fourth quarter of 2023?

The credit card period-end loans increased by 5 percent to $154.5 billion in the fourth quarter of 2023 for Capital One Financial Corporation (COF).

What was the efficiency ratio for Capital One Financial Corporation (COF) in the fourth quarter of 2023?

The efficiency ratio was 60.14 percent, with an adjusted efficiency ratio of 57.10 percent for Capital One Financial Corporation (COF) in the fourth quarter of 2023.