CAPITAL ONE FINANCIAL CORP
For the period ended Jun 30, 2024. Filed Aug 1, 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.
Jun 30, 2024 · Filed Aug 1, 2024
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Non-Interest Expense
Table 5 displays the components of non-interest expense for the second quarter and first six months of 2024 and 2023.
Table 5: Non-Interest Expense
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (Dollars in millions) | 2024 | 2023 | 2024 | 2023 |
| Operating Expense: | ||||
| Salaries and associate benefits(1) | $2,200 | $2,317 | $4,678 | $4,744 |
| Occupancy and equipment | 551 | 506 | 1,105 | 1,014 |
| Professional services | 316 | 290 | 578 | 614 |
| Communications and data processing | 355 | 344 | 706 | 694 |
| Amortization of intangibles | 19 | 22 | 38 | 36 |
| Other non-interest expense: | ||||
| Bankcard, regulatory and other fee assessments | 79 | 51 | 198 | 135 |
| Collections | 87 | 89 | 170 | 172 |
| Other | 275 | 289 | 536 | 547 |
| Total other non-interest expense | 441 | 429 | 904 | 854 |
| Total operating expense | $3,882 | $3,908 | $8,009 | $7,956 |
| Marketing | 1,064 | 886 | 2,074 | 1,783 |
| Total non-interest expense | $4,946 | $4,794 | $10,083 | $9,739 |
(1)Includes expenses of $11 million and $53 million related to our deferred compensation plan forthe second quarter and first six months of 2024, respectively, and expenses of $25 million and $49 million related to our deferred compensation plan investments forthe second quarter and first six months of 2023, respectively. These amounts have corresponding offsets from investments in other non-interest income.
Non-interest expense increased by $152 million to $4.9 billion in the second quarter of 2024 compared to the second quarter of 2023 and increased by $344 million to $10.1 billion in the first six months of 2024 compared to the first six months of 2023 primarily driven by increased marketing spend.
For the three and six months ended June 30, 2024, we have incurred $31 million of integration expenses related to the agreement to acquire Discover, which are included in Operating Expense in our Consolidated Statements of Income.
| 17 | Capital One Financial Corporation (COF) |
Income Taxes
We recorded an income tax provision of $54 million (8.3% effective income tax rate) and $356 million (15.9% effective income tax rate) in the second quarter and first six months of 2024, respectively, compared to an income tax provision of $297 million (17.2% effective income tax rate) and $500 million (17.3% effective income tax rate) in the second quarter and first six months of 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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