01—Abstract
Summary
Summary of the 8-K filed January 21, 2025. Cited figures are marked; the original filing is the authoritative source.
Capital One Financial Corp (COF) furnished a Regulation FD disclosure on Form 8-K dated January 21, 2025, containing its Monthly Charge-Off and Delinquency Metrics for the month ended December 31, 2024 (Exhibit 99.1).
The filing is informational and does not include earnings, guidance, or other financial statements. Under Item 7.01 the information is furnished rather than filed, so it is not subject to Section 18 liabilities. The key data points show Domestic Card credit card loans held for investment of about $155.6 billiona at period-end, with a net charge-off rate of 6.28% for December 2024 and a 30+ day performing delinquency rate of 4.53%.
The company notes that the termination of its Walmart program agreement (effective May 21, 2024) increased the Domestic Card net charge-off rate by 42 basis points in December; excluding that impact, the rate would have been 5.86%. The Consumer Banking Auto portfolio, with about $76.8 billionb in period-end loans, reported a net charge-off rate of 2.54% and a 30+ day delinquency rate of 5.95%, plus a nonperforming loan rate of 0.98%.
For investors, the most relevant takeaway is that card credit metrics remain elevated on a headline basis, with the Walmart-related effect explaining a meaningful portion of the December charge-off rate. Because the filing covers a single month, investors typically look at trends across successive monthly releases and at quarterly results for a fuller view of credit performance.
02—Key points
Key Highlights
- Domestic Card net charge-off rate of 6.28% in December 2024, including a 42 bps impact from the Walmart program agreement termination; excluding it, the rate would have been 5.86%.
- Domestic Card 30+ day performing delinquency rate of 4.53% on period-end loans of approximately $155.6 billion.
- Domestic Card average loans held for investment of about $153.5 billion, with net charge-offs of $803 million for the month.
- Consumer Banking Auto net charge-off rate of 2.54% for December 2024 on period-end loans of about $76.8 billion.
- Auto 30+ day performing delinquency rate of 5.95%, with $4.6 billion in 30+ day performing delinquent loans.
- Auto nonperforming loan rate of 0.98% ($750 million in nonperforming loans).
- The disclosure is furnished under Item 7.01 (Regulation FD) and is not deemed filed under the Exchange Act, and it contains no earnings or guidance.
03—Questions
Frequently Asked Questions
Why is the Domestic Card net charge-off rate elevated in December 2024?
The company attributes 42 basis points of the 6.28% December net charge-off rate to the termination of its Walmart program agreement, effective May 21, 2024. Excluding that impact, the Domestic Card net charge-off rate would have been 5.86%.
What does this 8-K report, and is it a financial results release?
No. It is a monthly credit metrics disclosure furnished under Regulation FD (Item 7.01). It covers charge-offs, delinquencies, and nonperforming loans for December 2024 and does not include earnings, revenue, or guidance.
How are the reported rates calculated?
Net charge-off rates equal annualized net charge-offs divided by average loans held for investment for the period. Delinquency and nonperforming loan rates equal period-end balances of delinquent or nonperforming loans divided by period-end loans held for investment. Net charge-offs can be affected by recoveries, including debt sales.
Is this information considered filed with the SEC for liability purposes?
No. The company states that the information in the report, including Exhibit 99.1, is furnished and not deemed filed under Section 18 of the Exchange Act, and is not incorporated by reference into Securities Act or Exchange Act filings.
04—Continue