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Banking industry

Capital One Reports Strong Third Quarter 2024 Earnings, Net Income of $1.8 Billion

Strategic Insights

— 2 min read

Capital One Financial Corporation announced strong third quarter 2024 earnings, with net income of $1.8 billion, or $4.41 per diluted common share, a significant increase compared to the second quarter of 2024. The company reported total net revenue of $10.0 billion, a 5 percent increase, and total non-interest expense of $5.3 billion, a 7 percent increase. Pre-provision earnings increased 3 percent to $4.7 billion, and the net interest margin rose to 7.11 percent, a 41 basis point increase.

Key Takeaways:

  • Capital One reported net income of $1.8 billion, or $4.41 per diluted common share, in the third quarter of 2024, a significant increase from the second quarter of 2024.
  • Total net revenue increased 5 percent to $10.0 billion, driven by top-line growth in the domestic card and auto businesses.
  • Pre-provision earnings increased 3 percent to $4.7 billion, and the net interest margin rose to 7.11 percent, a 41 basis point increase.
  • The company reported efficiency ratio of 53.07 percent, adjusted efficiency ratio of 52.53 percent, operating efficiency ratio of 41.95 percent, and adjusted operating efficiency ratio of 41.41 percent.
  • The period-end common equity Tier 1 capital ratio under Basel III Standardized Approach was 13.6 percent at September 30, 2024.
  • The company's credit card, domestic card, consumer banking, and auto period-end loans increased, while commercial banking period-end loans decreased.
  • The company will hold an earnings conference call on October 24, 2024, at 5:00 PM Eastern Time.

Statistics:

  • Net income: $1.8 billion
  • Net income per diluted common share: $4.41
  • Total net revenue: $10.0 billion (5 percent increase)
  • Total non-interest expense: $5.3 billion (7 percent increase)
  • Pre-provision earnings: $4.7 billion (3 percent increase)
  • Net interest margin: 7.11 percent (41 basis point increase)
  • Efficiency ratio: 53.07 percent
  • Adjusted efficiency ratio: 52.53 percent
  • Operating efficiency ratio: 41.95 percent
  • Adjusted operating efficiency ratio: 41.41 percent
  • Period-end common equity Tier 1 capital ratio: 13.6 percent

Sources:

  • Capital One Financial Corporation. (2024, October 24). Capital One Financial Corporation Reports Third Quarter 2024 Net Income of $1.8 Billion. Retrieved from https://www.capitalone.com/investors
  • Capital One Financial Corporation. (2024, October 24). Capital One Financial Corporation Reports Third Quarter 2024 Net Income of $1.8 Billion. Retrieved from https://www.capitalone.com/investors/investor-center/financial-reports
  • Capital One Financial Corporation. (2024, October 24). Earnings Release Presentation. Retrieved from https://www.capitalone.com/investors/investor-center/financial-reports

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