Key Points:
- Total deposits amounted to $350.97 billion, increasing 0.7% q/q, falling slightly shorter than estimated $352.36 billion.
- Loans held for investment was $315.15 billion, which represented a 2% year-on-year increase, barely missing the estimated $317.89 billion.
- Adjusted EPS came in at $3.21, up from $2.31 y/y which is slightly low against the estimated $3.28.
- Net revenue reached $9.40 billion, showing a 5.6% y/y growth, surpassing the estimated $9.33 billion.
- Net interest income stood at $7.49 billion, a 4.2% y/y increase, slightly beating the estimated $7.48 billion.
- The non-interest income was $1.91 billion, growing by 11% y/y, which was above the estimated $1.86 billion.
- The net interest margin increased to 6.69% from 6.6% y/y, nearly matching the estimated 6.7%.
- Efficiency ratio improved to 54.6% down from 55.5% y/y, just above the estimated 54.5%.
- Non-interest expenses reached $5.14 billion, representing a 3.9% y/y increase, slightly over the estimated $5.1 billion.
- The marketing expense increased by 13% y/y to $1.01 billion, surpassing the estimated $956.2 million.
- The provision for credit losses was $2.68 billion, down by 4% y/y, which was more than the estimated $2.53 billion.
- Net charge-offs were $2.62 billion, soaring by 54% y/y, slightly under the estimated $2.66 billion.
- Credit-card charge-offs stood at 5.9%, increasing from 4.06% y/y, and surpassing the estimated 5.72%.
- Auto charge-offs were 1.99%, up from 1.53% y/y, which met estimates.
- The rate of card delinquencies rose to 4.5% from 3.68% y/y, while auto delinquencies also rose to 5.28% from 5% y/y.
- Tangible book value per share significantly grew to $98.67 from $90.86 y/y, although it was less than the estimated $103.04.
- Over the quarter, Capital One received 8 buy recommendations, 14 holds and 1 sell.
A look at Capital One Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Capital One Financial appears to have a positive long-term outlook. With above-average scores in Value, Growth, and Momentum, the company demonstrates strong potential for growth and profitability. While its Resilience score is lower, indicating some vulnerability, the overall outlook seems promising. Additionally, the company’s Dividend score suggests steady income generation for investors.
Capital One Financial Corporation, a diversified bank with a presence in multiple states, offers a wide range of financial products and services to various client segments. Its strategic positioning in the banking industry, coupled with favorable scores in key factors like Value and Growth, indicates a robust foundation for sustained success in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
