CAPITAL ONE FINANCIAL CORP
For the period ended Mar 31, 2025. Filed May 7, 2025.
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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, 2025 · Filed May 7, 2025
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Consumer Banking Business Results
Consumer Banking Business
The primary sources of revenue for our Consumer Banking business are net interest income from loans and deposits as well as service charges and customer-related fees. Expenses primarily consist of the provision for credit losses and operating costs.
Our Consumer Banking business generated net income from continuing operations of $186 million and $381 million in the first quarters of 2025 and 2024, respectively.
Table 10 summarizes the financial results of our Consumer Banking business and displays selected key metrics for the periods indicated.
Table 10: Consumer Banking Business Results
| Three Months Ended March 31, | |||
|---|---|---|---|
| (Dollars in millions, except as noted) | 2025 | 2024 | Change |
| Selected income statement data: | |||
| Net interest income | $1,943 | $2,011 | (3)% |
| Non-interest income | 183 | 159 | 15 |
| Total net revenue | 2,126 | 2,170 | (2) |
| Provision for credit losses | 301 | 426 | (29) |
| Non-interest expense | 1,581 | 1,246 | 27 |
| Income from continuing operations before income taxes | 244 | 498 | (51) |
| Income tax provision | 58 | 117 | (50) |
| Income from continuing operations, net of tax | $186 | $381 | (51) |
| Selected performance metrics: | |||
| Average loans held for investment: | |||
| Auto | $77,228 | $73,768 | 5 |
| Retail banking | 1,252 | 1,324 | (5) |
| Total consumer banking | $78,480 | $75,092 | 5 |
| Average yield on loans held for investment(1) | 9.03% | 8.33% | 70bps |
| Average deposits | $319,950 | $294,448 | 9% |
| Average deposits interest rate | 3.00% | 3.15% | (15)bps |
| Net charge-offs | $313 | $380 | (18)% |
| Net charge-off rate | 1.60% | 2.03% | (43)bps |
| Auto loan originations | $9,210 | $7,522 | 22% |
| 24 | Capital One Financial Corporation (COF) |
| (Dollars in millions, except as noted) · March 31, 2025 · December 31, 2024 · Change | ||||
|---|---|---|---|---|
| Selected period-end data: | ||||
| Loans held for investment: | ||||
| Auto | $77,656 | $76,829 | 1% | |
| Retail banking | 1,240 | 1,263 | (2) | |
| Total consumer banking | $78,896 | $78,092 | 1 | |
| 30+ day performing delinquency rate | 4.87% | 5.87% | (100) | bps |
| 30+ day delinquency rate | 5.47 | 6.73 | (126) | |
| Nonperforming loan rate | 0.74 | 0.99 | (25) | |
| Nonperforming asset rate(2) | 0.82 | 1.08 | (26) | |
| Allowance for credit losses | $1,872 | $1,884 | (1)% | |
| Allowance coverage ratio | 2.37% | 2.41% | (4)bps | |
| Deposits | $324,920 | $318,329 | 2% | |
(1)Average yield is calculated based on annualized interest income for the period divided by average loans during the period and does not include any allocations, such as funds transfer pricing.
(2)Nonperforming assets primarily consist of nonperforming loans and repossessed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment and repossessed assets.
Key factors affecting the results of our Consumer Banking business for the first quarter of 2025 compared to the first quarter of 2024, and changes in financial condition and credit performance between March 31, 2025 and December 31, 2024 include the following:
Net Interest Income: Net interest income decreased by $68 million to $1.9 billion in the first quarter of 2025 primarily driven by lower margins in our retail banking business, partially offset by higher deposits in our retail banking business and higher average loan balances in our auto business.
Non-Interest Income: Non-interest income increased by $24 million to $183 million in the first quarter of 2025 primarily driven by higher interchange revenue from an increase in debit card purchase volume and revenue earned from auto industry services.
Provision for Credit Losses: Provision for credit losses decreased by $125 million to $301 million in the first quarter of 2025 primarily driven by our auto loan portfolio due to lower net charge-offs and an allowance release of $14 million compared to an allowance build of $55 million in the first quarter of 2024.
Non-Interest Expense: Non-interest expense increased by $335 million to $1.6 billion in the first quarter of 2025 primarily driven by an increase to the litigation accrual, continued investment in technology and increased marketing spend.
Period-end loans held for investment increased by $804 million to $78.9 billion as of March 31, 2025 from December 31, 2024 primarily driven by growth in our auto loan portfolio.
Average loans held for investment increased by $3.4 billion to $78.5 billion in the first quarter of 2025 compared to the first quarter of 2024 primarily driven by growth in our auto loan portfolio.
Deposits:
Period-end deposits increased by $6.6 billion to $324.9 billion as of March 31, 2025 from December 31, 2024 primarily driven by continued growth from our national consumer banking strategy.
Net Charge-Off and Delinquency Metrics:
The net charge-off rate decreased by 43 bps to 1.60% in the first quarter of 2025 compared to the first quarter of 2024.
| 25 | Capital One Financial Corporation (COF) |
The 30+ day delinquency rate decreased by 126 bps to 5.47% as of March 31, 2025 compared to December 31, 2024.
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