CAPITAL ONE FINANCIAL CORP Quarterly Report for Q3 Ended Sep 30, 2015

Summary

Capital One Financial Corporation's third-quarter 2015 report shows modest growth in net income, reaching $1.1 billion, a slight increase from the previous year's $1.08 billion. This was driven by a 5% increase in total net revenue to $5.9 billion, primarily fueled by growth in the Credit Card segment. However, the nine-month period saw a decline in net income to $3.1 billion from $3.4 billion year-over-year, attributed to a higher provision for credit losses and increased operating and marketing expenses, including investments in technology. The company's balance sheet strengthened, with total assets growing to $313.7 billion, supported by increased loans held for investment and a rise in common equity. Capital One also continued its commitment to shareholder returns, repurchasing $1.3 billion in common stock as part of its $3.125 billion repurchase program and increasing its quarterly dividend by 33% to $0.40 per share. The company's capital ratios remained strong, exceeding regulatory requirements.

Key Highlights

• 1Net income for Q3 2015 was $1.114 billion, up 3% year-over-year, while diluted EPS was $1.98.
• 2Total net revenue increased by 5% to $5.9 billion in Q3 2015, driven by strong performance in the Credit Card segment.
• 3Loans held for investment grew by 5% to $213.3 billion as of September 30, 2015.
• 4The provision for credit losses increased by 10% to $1.092 billion in Q3 2015, reflecting higher loan growth and expected rising charge-off rates.
• 5Non-interest expense increased by 6% to $3.16 billion in Q3 2015, mainly due to higher operating and marketing expenses, and technology investments.
• 6Capital One announced a new stock repurchase program of up to $3.125 billion and increased its quarterly common stock dividend by 33% to $0.40 per share.
• 7Common equity Tier 1 capital ratio remained strong at 12.1% as of September 30, 2015.

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