01—Abstract
Summary
Summary of the 8-K filed June 17, 2024. Cited figures are marked; the original filing is the authoritative source.
Capital One Financial Corporation (COF) furnished a Form 8-K under Item 7.01 (Regulation FD) on June 17, 2024, providing its Monthly Charge-Off and Delinquency Metrics (Exhibit 99.1) for the month ended May 31, 2024.
The filing is informational and not a financial results release; it contains no earnings, guidance, or balance sheet announcements beyond the credit metrics themselves, and the information is not deemed "filed" under Section 18 of the Exchange Act. The most notable item is the Domestic Card segment, where the net charge-off rate was 6.13% in May 2024 on average loans of about $143.6 billiona, with a 30+ day performing delinquency rate of 4.13%. The company disclosed that the termination of its Walmart credit card partnership and associated loss-sharing provisions, effective May 21, 2024, added 17 basis points to the Domestic Card net charge-off rate for the month.
Excluding that impact, the rate would have been 5.96%b. Investors should treat the May figure as partly distorted by a one-time partnership-exit effect rather than a pure reflection of underlying credit trends.
Consumer Banking Auto showed average loans of about $74.1 billionc, a net charge-off rate of 1.69%, a 30+ day performing delinquency rate of 5.40%, and a nonperforming loan rate of 0.86%. Because these are single-month figures, investors typically look at the trend across several months and at the company's quarterly disclosures for a fuller view of credit performance.
02—Key points
Key Highlights
- Domestic Card net charge-off rate was 6.13% for May 2024, including a 17 bp impact from the Walmart partnership termination; excluding that, the rate would have been 5.96%.
- Domestic Card 30+ day performing delinquency rate was 4.13% on period-end loans of about $145.9 billion.
- The Walmart credit card partnership and associated loss-sharing provisions terminated effective May 21, 2024, a one-time factor affecting May charge-offs.
- Consumer Banking Auto net charge-off rate was 1.69% on average loans of about $74.1 billion for the month.
- Auto 30+ day performing delinquency rate was 5.40%, and nonperforming loan rate was 0.86%.
- The disclosure is a voluntary Regulation FD furnishing of monthly credit metrics and is not deemed filed under Section 18 of the Exchange Act.
- The exhibit reports single-month data, so trend analysis across multiple months is needed for a complete credit picture.
03—Questions
Frequently Asked Questions
Why did the Domestic Card net charge-off rate rise in May 2024?
Part of the increase was tied to the termination of the Walmart credit card partnership and its associated loss-sharing provisions, effective May 21, 2024. This added 17 basis points to the May Domestic Card net charge-off rate. Excluding this impact, the rate would have been 5.96%.
What do the net charge-off and delinquency rates measure?
The net charge-off rate is annualized net charge-offs divided by average loans held for investment for the period. The 30+ day performing delinquency rate is 30+ day performing delinquent loans divided by period-end loans held for investment. The nonperforming loan rate is nonperforming loans divided by period-end loans held for investment. Recoveries, including debt sales, can cause these rates to fluctuate.
Does this filing include earnings or guidance?
No. The filing furnishes only monthly charge-off and delinquency metrics for the month ended May 31, 2024. It does not include earnings results, financial guidance, or a full financial statement update.
How should investors interpret a single month of credit data?
Single-month figures can be volatile and affected by one-time events, such as the Walmart partnership termination. Investors generally compare multiple months and quarterly results to identify whether credit trends are improving or deteriorating.
Is the information in this 8-K considered filed for liability purposes?
No. Under Item 7.01, the information in the report and Exhibit 99.1 is furnished, not filed, so it is not subject to the liabilities of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into Securities Act or Exchange Act filings unless specifically stated.
04—Continue