- Total deposits reached $351.44 billion, slightly above the $345.15 billion estimate, with a 0.1% increase quarter-over-quarter.
- Loans held for investment were $318.19 billion, up 2.2% year-over-year, but fell just short of the $319.07 billion estimate.
- Adjusted EPS was $3.14, surpassing the $3.13 estimate but down from $3.52 year-over-year.
- Net revenue stood at $9.51 billion, a 5.5% increase year-over-year, though it missed the $9.56 billion estimate.
- Net interest income was on target at $7.55 billion, showing a 6.1% increase year-over-year.
- Non-interest income came in at $1.96 billion, up 3.2% year-over-year, but below the $1.98 billion estimate.
- Net interest margin improved to 6.7%, up from 6.48% year-over-year but slightly below the 6.74% estimate.
- Efficiency ratio improved to 52% from 53.2% year-over-year, beating the 52.9% estimate.
- Non-interest expenses were $4.95 billion, up 3.2% year-over-year, and below the $5.03 billion estimate.
- Marketing expense surged 20% year-over-year to $1.06 billion, exceeding the $978.7 million estimate.
- Provision for credit losses increased by 57% year-over-year to $3.91 billion, significantly above the $2.8 billion estimate.
- Net charge-offs matched the estimate at $2.64 billion, an increase of 21% year-over-year.
- Tangible book value per share increased to $99.28 from $90.07 year-over-year but missed the $101.81 estimate.
- Analyst ratings: 9 buys, 14 holds, and 1 sell.
A look at Capital One Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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
Capital One Financial Corporation, a diversified bank offering a range of financial products and services to consumers, small businesses, and commercial clients, shows a positive long-term outlook based on a review of Smartkarma Smart Scores. With high scores in Value and Momentum factors, Capital One is positioned well for growth and potential value appreciation. While the company’s Dividend and Growth scores are moderate, indicating room for improvement, its Resilience score is lower, suggesting some susceptibility to economic downturns. Overall, the combination of favorable Value and Momentum scores bodes well for Capital One’s future prospects in the financial sector.
Capital One Financial Corporation, with bank locations in various states including Connecticut, Louisiana, and Texas, demonstrates strengths in value and momentum according to Smartkarma Smart Scores. The company’s ability to deliver value to investors and maintain positive momentum in the market positions it competitively within the financial industry. Although the scores for Dividend, Growth, and Resilience are not as high as Value and Momentum, they provide areas for potential enhancement and strategic focus to further solidify Capital One’s standing in the market. With a diversified offering of financial products and services, Capital One’s outlook remains promising for the long term.
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.
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