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HomeBank CapitalCapital One Reports First Quarter 2021 Net Income of $3.3 billion, or...

Capital One Reports First Quarter 2021 Net Income of $3.3 billion, or $7.03 per

MCLEAN, Va., April 27, 2021 /PRNewswire/ — Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2021 of $3.3 billion, or $7.03 per diluted common share, compared with net income of $2.6 billion, or $5.35 per diluted common share in the fourth quarter of 2020, and with a net loss of $1.3 billion, or $3.10 per diluted common share in the first quarter of 2020.

“Strikingly strong credit drove another quarter of record earnings per share, and our investments to transform our technology and how we work are paying off,” said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. “Our modern technology is powering our response to the pandemic, and putting us in a strong position for opportunities that emerge as sweeping digital change transforms banking.”

The quarter included the following notable item:

(Dollars in millions, except per share data)

Pre-Tax

Impact

Diluted EPS

Impact

Equity investment loss

$

(75)

$

(0.12)

All comparisons below are for the first quarter of 2021 compared with the fourth quarter of 2020 unless otherwise noted.

First Quarter 2021 Income Statement Summary:

  • Total net revenue decreased 3 percent to $7.1 billion.
  • Total non-interest expense decreased 7 percent to $3.7 billion:
    • 11 percent decrease in marketing.
    • 6 percent decrease in operating expenses.
  • Pre-provision earnings increased 1 percent to $3.4 billion(1).
  • Provision for credit losses decreased $1.1 billion to $(823) million:
    • Net charge-offs of $740 million.
    • $1.6 billion loan reserve release.
  • Net interest margin of 5.99 percent, an decrease of 6 basis points.
  • Efficiency ratio of 52.58 percent.
  • Operating efficiency ratio of 45.54 percent.

First Quarter 2021 Balance Sheet Summary:

  • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 14.6 percent at March 31, 2021.
  • Period-end loans held for investment in the quarter decreased $8.5 billion, or 3 percent, to $243.1 billion.
    • Credit Card period-end loans decreased $7.8 billion, or 7 percent, to $99.1 billion.
      • Domestic Card period-end loans decreased $7.4 billion, or 8 percent, to $91.1 billion.
    • Consumer Banking period-end loans increased $1.3 billion, or 2 percent, to $70.2 billion.
      • Auto period-end loans increased $1.3 billion, or 2 percent, to $67.1 billion.
    • Commercial Banking period-end loans decreased $2.0 billion, or 3 percent, to $73.8 billion.
  • Average loans held for investment in the quarter decreased $3.8 billion, or 2 percent, to $243.9 billion.
    • Credit Card average loans decreased $3.0 billion, or 3 percent, to $100.5 billion.
      • Domestic Card average loans decreased $2.9 billion, or 3 percent, to $92.6 billion.
    • Consumer Banking average loans increased $426 million, or 1 percent, to $69.2 billion.
      • Auto average loans increased $595 million, or 1 percent, to $66.2 billion.
    • Commercial Banking average loans decreased $1.2 billion, or 2 percent, to $74.2 billion.
  • Period-end total…

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