MCLEAN, Va. - Capital One Financial Corporation (NYSE: NYSE:COF) today reported its financial results for the first quarter of 2024, posting an adjusted EPS of $3.21, slightly below the analyst expectations of $3.25. The company's revenue for the quarter was $9.4 billion, exceeding the consensus estimate of $9.35 billion. The stock was down 0.41% in aftermarket trading.
The financial institution, known for its credit card offerings and banking services, saw a decrease in total net revenue by 1% compared to the previous quarter. However, this was a 6% increase compared to the first quarter of the previous year. The company's net income for the first quarter stood at $1.3 billion, or $3.13 per diluted common share, which is a significant increase from the $960 million, or $2.31 per diluted common share, reported in the first quarter of 2023.
Capital One's adjusted net income for the first quarter of 2024 was reported after considering a pre-tax impact of $42 million due to an FDIC special assessment, which translated to an after-tax diluted EPS impact of $0.08.
Richard Fairbank, Founder, Chairman, and Chief Executive Officer, commented on the results, "First quarter results continue to show top-line growth, stabilizing consumer credit, and balance sheet strength." He also highlighted the company's definitive agreement to acquire Discover, marking a significant move in the consumer banking and global payments industry.
The company's financials reflected a decrease in total non-interest expense by 10%, with a notable 19% decrease in marketing expenses and an 8% decrease in operating expenses. The provision for credit losses also decreased by $174 million to $2.7 billion, with net charge-offs of $2.6 billion and a $91 million loan reserve build.
Despite the slight miss on the EPS estimate, the company's overall performance indicates resilience in its core operations and a strong capital position with a common equity Tier 1 capital ratio under Basel III Standardized Approach of 13.1% as of March 31, 2024.
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