Summary
Capital One Financial Corporation reported a decrease in net income for the first quarter of 2022 to $2.4 billion, down from $3.3 billion in the prior year's quarter. This decline was primarily attributed to a significantly larger provision for credit losses in Q1 2021, coupled with higher non-interest expenses stemming from increased marketing and technology investments. Despite the decrease in net income, total net revenue saw a robust 15% increase to $8.2 billion, driven by higher net interest income and non-interest income, with credit card purchase volumes up 23% year-over-year. The company's balance sheet remained strong, with total assets at $434.2 billion. Loans held for investment increased by 1% to $280.5 billion, primarily due to growth in auto and commercial loan portfolios. Capital ratios remained well above regulatory requirements, with Common Equity Tier 1 at 12.7%. Capital One also returned capital to shareholders through share repurchases totaling $2.4 billion in the quarter, with an additional $5 billion authorized for future repurchases.
Financial Highlights
42 data points| Revenue | $8.17B |
| Operating Income | $2.40B |
| Interest Expense | $387.00M |
| Net Income | $2.40B |
| EPS (Basic) | $5.65 |
| EPS (Diluted) | $5.62 |
| Shares Outstanding (Basic) | 410.40M |
| Shares Outstanding (Diluted) | 412.20M |
Key Highlights
- 1Net income decreased by 28% to $2.4 billion, or $5.62 per diluted share, compared to $3.3 billion, or $7.03 per diluted share, in Q1 2021.
- 2Total net revenue increased by 15% to $8.2 billion, driven by a 10% rise in net interest income ($6.4 billion) and a 38% surge in non-interest income ($1.8 billion).
- 3Provision for credit losses increased significantly from a benefit of $823 million in Q1 2021 to a provision of $677 million in Q1 2022.
- 4Non-interest expense rose by 22% to $4.6 billion, primarily due to higher marketing ($918 million, up 83%) and compensation/technology investments.
- 5Credit Card segment net income fell by 29% to $1.5 billion, impacted by higher credit loss provisions and increased operating expenses, despite a 20% rise in segment net revenue.
- 6Consumer Banking segment net income decreased by 28% to $650 million, also affected by higher credit loss provisions and increased expenses.
- 7Capital ratios remain strong, with Common Equity Tier 1 capital at 12.7%, well above regulatory minimums.
- 8Capital One repurchased $2.4 billion of common stock in Q1 2022 and authorized an additional $5 billion repurchase program.