01—Abstract
Summary
Summary of the 8-K filed July 23, 2024. Cited figures are marked; the original filing is the authoritative source.
Capital One Financial Corporation's July 23, 2024 Form 8-K furnishes Exhibit 99.1, its monthly charge-off and delinquency metrics for the month ended June 30, 2024.
The filing is furnished under Item 7.01 (Regulation FD), so it is not deemed "filed" for Section 18 purposes. It contains no earnings results, guidance, or changes to financial statements. The most notable figure is the Domestic Credit Card net charge-off rate of 5.93% for June 2024, on average loans held for investment of $145.1 billiona and period-end loans of $147.1 billion.
Net charge-offs were $718 millionb. Footnote 5 states that the termination of the Walmart program agreement, effective May 21, 2024, increased the domestic card net charge-off rate by 39 basis points in June. Excluding that impact, the rate would have been 5.54%.
The 30+ day performing delinquency rate for domestic card was 4.14% ($6.1 billionc), and the filing reports N/A for domestic card nonperforming loans. In the Consumer Banking section visible in the excerpt, Auto loans (average $74.4 billion, period-end $74.4 billion) had a net charge-off rate of 2.08% ($129 million), a 30+ day performing delinquency rate of 5.67% ($4.2 billion), and a nonperforming loan rate of 0.88% ($658 million). Investors should treat the card charge-off figure as partly distorted by the one-time Walmart-related effect and watch subsequent monthly filings for whether the underlying trend normalizes.
02—Key points
Key Highlights
- Domestic Card net charge-off rate was 5.93% in June 2024 on $718 million of net charge-offs.
- The Walmart program agreement termination (effective May 21, 2024) added 39 basis points to the June domestic card NCO rate; excluding it, the rate would have been 5.54%.
- Domestic Card 30+ day performing delinquency rate was 4.14%, totaling $6.1 billion of delinquent loans.
- Domestic Card period-end loans held for investment were $147.1 billion, versus $145.1 billion average for the month.
- Auto net charge-off rate was 2.08% ($129 million), with a 30+ day performing delinquency rate of 5.67%.
- Auto nonperforming loans were $658 million, a 0.88% rate on period-end loans.
- The filing is a monthly credit metrics disclosure under Regulation FD only; it contains no earnings, guidance, or financial statement changes.
03—Questions
Frequently Asked Questions
Why is the June 2024 domestic card charge-off rate elevated?
Footnote 5 attributes 39 basis points of the 5.93% rate to the termination of the Walmart program agreement, effective May 21, 2024. Excluding that impact, the domestic card net charge-off rate would have been 5.54%. The filing does not provide further breakdown of the Walmart-related effect.
What does this filing report about Capital One's overall financial performance?
Nothing beyond credit metrics. The filing is a monthly charge-off and delinquency disclosure furnished under Item 7.01. It does not include earnings, revenue, net income, guidance, or balance sheet totals outside the loan categories shown.
How do the delinquency and nonperforming loan metrics compare across the portfolios shown?
Domestic card had a 30+ day performing delinquency rate of 4.14%, while the auto portfolio's rate was higher at 5.67%. Auto nonperforming loans were 0.88% of period-end loans. The filing reports domestic card nonperforming loans as N/A, so a direct nonperforming comparison is not available for cards.
Are these figures considered filed with the SEC for liability purposes?
No. The filing states that information furnished under Item 7.01 and Exhibit 99.1 is not deemed filed for purposes of Section 18 of the Exchange Act, and is not incorporated by reference into Securities Act or Exchange Act filings.
04—Continue