CAPITAL ONE FINANCIAL CORP
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
View on SEC.govAbout this filing
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.
Sep 30, 2024 · Filed Oct 31, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Non-Interest Expense
Table 5 displays the components of non-interest expense for the third quarter and first nine months of 2024 and 2023.
Table 5: Non-Interest Expense
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| (Dollars in millions) | 2024 | 2023 | 2024 | 2023 |
| Operating Expense: | ||||
| Salaries and associate benefits(1) | $2,391 | $2,274 | $7,069 | $7,018 |
| Occupancy and equipment | 587 | 518 | 1,692 | 1,532 |
| Professional services | 402 | 295 | 980 | 909 |
| Communications and data processing | 358 | 344 | 1,064 | 1,038 |
| Amortization of intangibles | 20 | 24 | 58 | 60 |
| Other non-interest expense: | ||||
| Bankcard, regulatory and other fee assessments | 59 | 62 | 257 | 197 |
| Collections | 89 | 89 | 259 | 261 |
| Other | 295 | 282 | 831 | 829 |
| Total other non-interest expense | 443 | 433 | 1,347 | 1,287 |
| Total operating expense | $4,201 | $3,888 | $12,210 | $11,844 |
| Marketing | 1,113 | 972 | 3,187 | 2,755 |
| Total non-interest expense | $5,314 | $4,860 | $15,397 | $14,599 |
(1)Includes expenses of $36 million and $89 million related to our deferred compensation plan investments forthe third quarter and first nine months of 2024, respectively, and benefit of$13 million and expense of $36 million related to our deferred compensation plan investments for the third quarter and first nine months of 2023, respectively. These amounts have corresponding offsets from investments in other non-interest income.
Non-interest expense increased by $454 million to $5.3 billion in the third quarter of 2024 compared to the third quarter of 2023 and increased by $798 million to $15.4 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by growth in our Credit Card business and increased marketing spend.
For the three and nine months ended September 30, 2024, we have incurred $63 million and $94 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 $441 million (19.9% effective income tax rate) and $797 million (17.9% effective income tax rate) in the third quarter and first nine months of 2024, respectively, compared to an income tax provision of $432 million (19.4% effective income tax rate) and $932 million (18.2% effective income tax rate) in the third quarter and first nine 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.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.