Q2 2024 Capital One Financial Corp Earnings Call Transcript
Key Points
- Capital One Financial Corp (COF) reported second-quarter earnings per share of $3.14, excluding adjusting items.
- Pre-provision earnings increased by 7% from the first quarter, driven by higher net and non-interest income.
- The domestic card business showed strong results with a 5% year-over-year purchase volume growth and an 8% increase in ending loan balances.
- The company's common equity Tier 1 capital ratio ended the quarter at 13.2%, indicating a strong capital position.
- Marketing investments are delivering strong new account growth, particularly in the domestic card business and national digital bank.
- The provision for credit losses increased by $1.2 billion from the prior quarter, driven by higher allowance and the termination of the Walmart partnership.
- Total liquidity reserves decreased by approximately $5 billion to $123 billion, with a significant drop in the cash position.
- The charge-off rate for the domestic card business increased to 6.05%, partly due to the end of the Walmart loss sharing agreement.
- Consumer banking revenue decreased by 9% year-over-year, largely due to higher deposit costs and lower average loans.
- The commercial banking segment saw a 6% decline in ending deposits and a slight increase in criticized performing and non-performing loan rates.
Good day and thank you for standing by. Welcome to the Capital One Q2 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, to Capital One's second-quarter 2024 earnings conference call. As usual, we are webcasting live over the Internet. 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 the financials, we've included a presentation summarizing our second-quarter 2024 results.
With me this evening are Mr. Richard Fairbank, Capital One's Chairman and Chief Executive Officer; and Mr. Andrew Young, Capital One's, Chief Financial Officer. Rich and Andrew will walk you through the presentation. To access a copy of the presentation and press release, please go
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