CAPITAL ONE FINANCIAL CORP
For the period ended Mar 31, 2024. Filed May 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 2, 2024
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Non-Interest Expense
Table 5 displays the components of non-interest expense for the first quarters of 2024 and 2023.
Table 5: Non-Interest Expense
| Three Months Ended March 31, | ||
|---|---|---|
| (Dollars in millions) | 2024 | 2023 |
| Operating Expense: | ||
| Salaries and associate benefits(1) | $2,478 | $2,427 |
| Occupancy and equipment | 554 | 508 |
| Professional services | 262 | 324 |
| Communications and data processing | 351 | 350 |
| Amortization of intangibles | 19 | 14 |
| Other non-interest expense: | ||
| Bankcard, regulatory and other fee assessments | 119 | 84 |
| Collections | 83 | 83 |
| Other | 261 | 258 |
| Total other non-interest expense | 463 | 425 |
| Total operating expense | $4,127 | $4,048 |
| Marketing | 1,010 | 897 |
| Total non-interest expense | $5,137 | $4,945 |
(1)Includes expenses of $42 million and $24 million related to our deferred compensation plan for the first quarters of 2024 and 2023, respectively. These amounts have corresponding offsets from investments in other non-interest income.
Non-interest expense increased by $192 million to $5.1 billion in the first three months of 2024, primarily driven by increased marketing spend and the $42 million of incremental expense recognized in the first quarter of 2024 for the FDIC special assessment related to certain regional bank failures.
| 15 | Capital One Financial Corporation (COF) |
Income Taxes
We recorded an income tax provision of $302 million (19.1% effective income tax rate) and $203 million (17.5% effective income tax rate) in the first quarters of 2024 and 2023, 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.
We provide additional information on items affecting our income taxes and effective tax rate in “Part II—Item 8. Financial Statements and Supplementary Data—Note 15—Income Taxes” in our 2023 Form 10-K.
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