CAPITAL ONE FINANCIAL CORP
For the period ended Dec 31, 2023. Filed Feb 23, 2024.
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FY2023 · Filed Feb 23, 2024
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Non-Interest Expense
Table 4 displays the components of non-interest expense for 2023, 2022 and 2021.
Table 4: Non-Interest Expense
| Year Ended December 31, | |||
|---|---|---|---|
| (Dollars in millions) | 2023 | 2022 | 2021 |
| Operating Expense: | |||
| Salaries and associate benefits(1) | $9,302 | $8,425 | $7,421 |
| Occupancy and equipment | 2,160 | 2,050 | 2,003 |
| Professional services | 1,268 | 1,807 | 1,440 |
| Communications and data processing | 1,383 | 1,379 | 1,262 |
| Amortization of intangibles | 82 | 70 | 29 |
| Other non-interest expense: | |||
| Bankcard, regulatory and other fee assessments | 548 | 264 | 199 |
| Collections | 353 | 331 | 360 |
| Other | 1,211 | 820 | 985 |
| Total other non-interest expense | 2,112 | 1,415 | 1,544 |
| Total operating expense | $16,307 | $15,146 | $13,699 |
| Marketing | 4,009 | 4,017 | 2,871 |
| Total non-interest expense | $20,316 | $19,163 | $16,570 |
(1)Includes expenses of $86 million, a benefit of $78 million and expenses of $69 million related to our deferred compensation plan for 2023,2022 and 2021, respectively. These amounts have corresponding offsets from investments in other non-interest income.
Non-interest expense increased by $1.2 billion to $20.3 billion in the year ended 2023 compared to 2022, primarily driven by increased salaries and associate benefits, the $289 million FDIC special assessment related to certain regional bank failures and the absence of $177 million insurance recoveries net of legal reserve activity received in 2022, partially offset by lower professional services.
| 58 | Capital One Financial Corporation (COF) |
Income Taxes
We recorded an income tax provision of $1.2 billion (19.2% effective income tax rate), $1.9 billion (20.3% effective income tax rate) and $3.4 billion (21.6% effective income tax rate) in 2023, 2022 and 2021, respectively. Our effective tax rate on income from continuing operations varies between periods due, in part, to the impact of changes in pre-tax income and changes in tax credits, tax-exempt income and non-deductible expenses relative to our pre-tax earnings.
Our effective income tax rate in 2023 decreased by 1.1% compared to 2022. We recorded discrete tax expense of $6 million in 2023 and discrete tax benefits of $71 million and $66 million in 2022 and 2021, respectively.
We provide additional information on items affecting our income taxes and effective tax rate in “Item 8. Financial Statements and Supplementary Data—Note 15—Income Taxes.”
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