Yahoo Finance

• Net Income (Q4 2024): $1.1 billion or $2.67 per diluted common share.

• Full Year Net Income (2024): $4.8 billion or $11.59 per share.

• Adjusted Earnings Per Share (Q4 2024): $3.09.

• Adjusted Earnings Per Share (Full Year 2024): $13.96.

• Pre-provision Earnings (Q4 2024): $4.1 billion, down 13% from Q3 2024.

• Revenue Growth (Q4 2024): Increased 2% from the previous quarter.

• Provision for Credit Losses (Q4 2024): $2.6 billion, up $160 million from the prior quarter.

• Allowance Release (Q4 2024): $245 million, with an allowance balance of $16.3 billion.

• Total Liquidity Reserves (Q4 2024): Approximately $124 billion, down $8 billion from the prior quarter.

• Cash Position (Q4 2024): Approximately $43 billion, down $6 billion from the prior quarter.

• Net Interest Margin (Q4 2024): 7.03%, down 8 basis points from the previous quarter.

• Common Equity Tier 1 Capital Ratio (Q4 2024): 13.5%, down 10 basis points from the prior quarter.

• Domestic Card Revenue Growth (Q4 2024): 9% year-over-year.

• Domestic Card Charge-off Rate (Q4 2024): 6.06%.

• Auto Originations Growth (Q4 2024): Up 53% year-over-year.

• Consumer Banking Loan Growth (Q4 2024): Ending loans increased $2.7 billion or 4% year-over-year.

• Consumer Deposits Growth (Q4 2024): Ending deposits grew about 7% year-over-year.

• Operating Efficiency Ratio (Full Year 2024): 42.35%.

• Warning! GuruFocus has detected 7 Warning Signs with BOKF.

Release Date: January 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Capital One Financial Corp (NYSE:COF) reported strong earnings with $1.1 billion in Q4 2024, translating to $2.67 per diluted share.

• The domestic card business showed steady top-line growth with a 7% year-over-year increase in purchase volume and a 9% increase in revenue.

• The company maintained a robust capital position with a common equity Tier 1 capital ratio of 13.5%.

• Auto originations increased by 53% from the prior year, indicating strong growth in the consumer banking segment.

• The acquisition of Discover is expected to create a consumer banking and global payments platform with enhanced capabilities and significant value for customers and merchants.

Negative Points

• Pre-provision earnings decreased by 13% from the previous quarter due to higher noninterest expenses.

• Provision for credit losses increased to $2.6 billion, driven by higher net charge-offs.

• Net interest margin decreased by 8 basis points from the previous quarter, primarily due to lower asset yields.

• The company faces regulatory preapproval requirements for capital actions due to the pending Discover acquisition.

• Noninterest expenses in the domestic card segment increased by 13% year-over-year, driven by higher operating and marketing expenses.