Capital One Financial Corporation (NYSE: COF) announced net income for the third quarter of 2022 of $1.7 billion, or $4.20 per diluted common share, compared with net income of $2.0 billion, or $4.96 per diluted common share in the second quarter of 2022, and with net income of $3.1 billion, or $6.78 per diluted common share in the third quarter of 2021.
“We delivered strong growth and revenue in the third quarter, and we continue to see opportunities to lean into marketing and resilient asset growth that can deliver sustained revenue annuities,” said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. “We’re in a strong position to deliver compelling long-term shareholder value as modern digital technology continues to transform banking.”
All comparisons below are for the third quarter of 2022 compared with the second quarter of 2022 unless otherwise noted.
Third Quarter 2022 Income Statement Summary:
- Total net revenue increased 7 percent to $8.8 billion.
- Total non-interest expense increased 8 percent to $4.9 billion:
- 2 percent decrease in marketing.
- 11 percent increase in operating expenses.
- Pre-provision earnings increased 6 percent to $3.9 billion.
- Provision for credit losses increased $584 million to $1.7 billion:
- Net charge-offs of $931 million.
- $734 million loan reserve build.
- Net interest margin of 6.80 percent, an increase of 26 basis points.
- Efficiency ratio of 56.21 percent.
- Operating efficiency ratio of 45.10 percent.
Third Quarter 2022 Balance Sheet Summary:
- Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.2 percent at September 30, 2022.
- Period-end loans held for investment in the quarter increased $7.6 billion, or 3 percent, to $303.9 billion.
- Credit Card period-end loans increased $6.0 billion, or 5 percent, to $126.9 billion.
- Domestic Card period-end loans increased $6.3 billion, or 5 percent, to $121.3 billion.
- Consumer Banking period-end loans decreased $332 million, or less than 1 percent, to $81.2 billion.
- Auto period-end loans decreased $346 million, or less than 1 percent, to $79.6 billion.
- Commercial Banking period-end loans increased $1.9 billion, or 2 percent, to $95.8 billion.
- Credit Card period-end loans increased $6.0 billion, or 5 percent, to $126.9 billion.
- Average loans held for investment in the quarter increased $14.1 billion, or 5 percent, to $300.2 billion.
- Credit Card average loans increased $7.5 billion, or 6 percent, to $123.4 billion.
- Domestic Card average loans increased $7.5 billion, or 7 percent, to $117.5 billion.
- Consumer Banking average loans increased $358 million, or less than 1 percent, to $81.3 billion.
- Auto average loans increased $428 million, or 1 percent, to $79.7 billion.
- Commercial Banking average loans increased $6.2 billion, or 7 percent, to $95.5 billion.
- Credit Card average loans increased $7.5 billion, or 6 percent, to $123.4 billion.
- Period-end total deposits increased $9.3 billion, or 3 percent, to $317.2 billion, while average deposits increased $6.0 billion, or 2 percent, to $311.9 billion.
- Interest-bearing deposits rate paid increased 56 basis points to 1.00 percent.