Summary
Capital One Financial Corporation (COF) reported a net income of $4.9 billion ($11.95 per diluted common share) for 2023 on total net revenue of $36.8 billion. This represents a decrease from $7.4 billion in net income in 2022. The decline was primarily driven by a higher provision for credit losses and increased non-interest expenses, including a significant FDIC special assessment, partially offset by higher net interest income. The company announced a significant development: an agreement to acquire Discover Financial Services in an all-stock transaction, subject to regulatory and shareholder approvals. This merger is a key strategic move that will shape the company's future operations and market position. The report also highlights an increase in the net charge-off rate to 2.70% and a rise in the 30+ day delinquency rate to 3.99%, reflecting continued credit normalization, particularly in the domestic credit card portfolio. Capital and liquidity positions remain strong, with CET1 capital ratios exceeding regulatory minimums.
Financial Highlights
41 data points| Revenue | $36.79B |
| Operating Income | $4.89B |
| Interest Expense | $12.70B |
| Net Income | $4.89B |
| EPS (Basic) | $11.98 |
| EPS (Diluted) | $11.95 |
| Shares Outstanding (Basic) | 382.40M |
| Shares Outstanding (Diluted) | 383.40M |
Key Highlights
- 1Agreement to acquire Discover Financial Services in an all-stock transaction.
- 2Net income decreased to $4.9 billion in 2023 from $7.4 billion in 2022, primarily due to higher provision for credit losses and increased non-interest expenses.
- 3Net interest income increased by $2.1 billion to $29.2 billion, driven by higher average loan balances and asset yields, partially offset by higher funding costs.
- 4Net charge-off rate increased by 134 basis points to 2.70% in 2023, reflecting credit normalization in the credit card portfolio.
- 530+ day delinquency rate increased by 78 basis points to 3.99% as of December 31, 2023.
- 6Common Equity Tier 1 (CET1) capital ratio stood at 12.9% as of December 31, 2023, well above regulatory minimums.
- 7Total assets increased by $23.2 billion to $478.5 billion, driven by higher cash balances and growth in the credit card loan portfolio.