- Total deposits increased by 2.6% quarter-over-quarter to $362.71 billion, surpassing the estimated $349.55 billion.
- Adjusted earnings per share (EPS) rose to $3.09 from $2.24 year-over-year, beating the expected $2.78.
- Net revenue grew by 7.2% year-over-year to $10.19 billion, slightly below the estimate of $10.23 billion.
- Net interest income reached $8.10 billion, marking a 7.7% year-over-year increase, but was below the expected $8.17 billion.
- Non-interest income increased by 5.3% year-over-year to $2.09 billion, exceeding the estimate of $2.06 billion.
- Net interest margin improved to 7.03%, up from 6.73% year-over-year, but fell short of the estimated 7.12%.
- The efficiency ratio slightly improved to 59.8% from 60.1% year-over-year, although it did not meet the estimate of 56%.
- Non-interest expenses saw a 6.5% year-over-year increase, reaching $6.09 billion, higher than the anticipated $5.71 billion.
- Marketing expenses were up by 9.6% year-over-year to $1.38 billion, close to the expected $1.41 billion.
- The provision for credit losses decreased by 7.5% year-over-year to $2.64 billion, beating the estimate of $3.04 billion.
- Net charge-offs rose by 14% year-over-year to $2.88 billion, exceeding the estimated $2.79 billion.
- Tangible book value per share increased to $106.97 from $99.78 year-over-year, which was below the expected $113.33.
- Analyst recommendations include 12 buys, 13 holds, and 0 sells.
A look at Capital One Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores analysis, Capital One Financial‘s long-term outlook appears promising. The company scores high on momentum, indicating strong positive market sentiment. This suggests that Capital One Financial is experiencing significant growth and investor interest, which bodes well for its future performance. Additionally, the company scores well in terms of value, indicating that it may be currently undervalued in the market. While the resilience score is slightly lower, the overall positive outlook on value and momentum factors indicates that Capital One Financial could be a solid long-term investment.
Capital One Financial Corporation, a diversified bank operating in various regions, seems positioned for growth and value appreciation. With a strong momentum score and a solid value score, the company appears to have favorable prospects ahead. While the dividend and growth scores are moderate, the company’s ability to adapt and thrive in the market is evident. This blend of factors suggests that Capital One Financial may present an attractive opportunity for investors seeking long-term growth potential in the financial sector.
### Capital One Financial Corporation is a diversified bank. The Bank, through its subsidiaries, offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients both domestically and internationally. Capital One has bank locations in Connecticut, Louisiana, New Jersey, New York, and Texas. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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