Summary
Capital One Financial Corporation (COF) reported a slight decrease in net income for the third quarter of 2014 compared to the prior year, totaling $1.1 billion, though net income increased by 5% year-to-date to $3.4 billion. Total net revenue remained relatively flat for the quarter but decreased by 2% for the first nine months. The company highlighted a significant reduction in its net charge-off rate, falling to 1.52% in Q3 2014 from 1.92% in Q3 2013, attributed to economic improvements. The loan portfolio saw a 2% increase year-to-date, driven by commercial and auto lending, while the credit card portfolio experienced a slight decline due to seasonality. Capital One also continued its capital return strategy, repurchasing approximately $1.5 billion of common stock in the first nine months of 2014 under its $2.5 billion repurchase program, and maintained its quarterly dividend of $0.30 per share.
Financial Highlights
38 data points| Revenue | $5.64B |
| Operating Income | $1.13B |
| Interest Expense | $390.00M |
| Net Income | $1.08B |
| EPS (Basic) | $1.89 |
| EPS (Diluted) | $1.86 |
| Shares Outstanding (Basic) | 559.90M |
| Shares Outstanding (Diluted) | 567.90M |
Key Highlights
- 1Net income for Q3 2014 was $1.08 billion, a 2% decrease year-over-year, while year-to-date net income increased 5% to $3.43 billion.
- 2Total net revenue for Q3 2014 was $5.64 billion, a slight 1% decrease year-over-year, and a 2% decrease year-to-date.
- 3The net charge-off rate significantly improved, decreasing by 40 basis points to 1.52% in Q3 2014 compared to 1.92% in Q3 2013.
- 4Loans held for investment increased by 2.2% to $201.6 billion at September 30, 2014, driven by commercial and auto loan growth.
- 5The company repurchased approximately $1.5 billion of common stock during the first nine months of 2014 under its authorized $2.5 billion repurchase program.
- 6Capital ratios remain strong, with a Common Equity Tier 1 capital ratio of 12.73% under the Basel III Standardized Approach as of September 30, 2014.