CAPITAL ONE FINANCIAL CORP
For the period ended Sep 30, 2024. Filed Oct 31, 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.
Sep 30, 2024 · Filed Oct 31, 2024
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Rate/Volume Analysis of Net Interest Income
Table 3 displays the change in our net interest income between periods and the extent to which the variance is attributable to:
changes in the volume of our interest-earning assets and interest-bearing liabilities; or
changes in the interest rates related to these assets and liabilities.
Table 3: Rate/Volume Analysis of Net Interest Income(1)
| Three Months Ended September 30, · Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2024 vs. 2023 | 2024 vs. 2023 | |||||
| (Dollars in millions) | Total Variance | Volume | Rate | Total Variance | Volume | Rate |
| Interest income: | ||||||
| Loans: | ||||||
| Credit card | $728 | $491 | $237 | $2,528 | $1,770 | $758 |
| Consumer banking | 155 | (19) | 174 | 383 | (137) | 520 |
| Commercial banking(2) | (41) | (69) | 28 | 119 | (205) | 324 |
| Other(3) | 9 | — | 9 | (46) | — | (46) |
| Total loans, including loans held for sale | 851 | 403 | 448 | 2,984 | 1,428 | 1,556 |
| Investment securities | 106 | 20 | 86 | 239 | 7 | 232 |
| Cash equivalents and other interest-earning assets | 30 | 37 | (7) | 301 | 204 | 97 |
| Total interest income | 987 | 460 | 527 | 3,524 | 1,639 | 1,885 |
| Interest expense: | ||||||
| Interest-bearing deposits | 334 | 71 | 263 | 1,887 | 202 | 1,685 |
| Securitized debt obligations | (15) | (26) | 11 | 57 | (21) | 78 |
| Senior and subordinated notes | 17 | 10 | 7 | 197 | 61 | 136 |
| Other borrowings and liabilities | (2) | — | (2) | (5) | — | (5) |
| Total interest expense | 334 | 55 | 279 | 2,136 | 242 | 1,894 |
| Net interest income | $653 | $405 | $248 | $1,388 | $1,397 | $(9) |
(1)We calculate the change in interest income and interest expense separately for each item. The portion of interest income or interest expense attributable to both volume and rate is allocated proportionately when the calculation results in a positive value. When the portion of interest income or interest expense attributable to both volume and rate results in a negative value, the total amount is allocated to volume or rate, depending on which amount is positive.
(2)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.
(3)Interest income/expense in the Other category represents the impact of hedge accounting on our loan portfolios and the offsetting reduction of the taxable-equivalent adjustments of our commercial loans as described above.
| 14 | Capital One Financial Corporation (COF) |
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