Executive Summary
Capital One Financial Corporation demonstrated solid financial performance in Q3 2024 with a remarkable revenue increase of 47.32% year-over-year to $13.8 billion, bolstered by strong demand in its credit card segment. The operational improvements translated into a significant increase in net income, which saw a 197.65% quarter-over-quarter rise to $1.78 billion. The company’s management highlighted the positive impact of digital banking initiatives and a disciplined approach to credit risk management, which helped maintain strong margins despite prevailing market headwinds.
Key Performance Indicators
QoQ: 34.57% | YoY:-19.58%
QoQ: 240.71% | YoY:-17.21%
QoQ: 197.65% | YoY:-0.73%
QoQ: 217.99% | YoY:-0.90%
Key Insights
Revenue surged to $13.8 billion, marking a 47.32% increase YoY and a 4.21% increase QoQ. Gross profit fell to $7.53 billion with a margin of 54.59%, while operating income also saw fluctuations, reflecting an operating income of $2.22 billion—a decrease of 17.21% YoY but a healthy recovery with a 240.71% QoQ jump. Net income was reported at $1.78 billion, nearly flat YoY, but growing substantially by 197.65% from the previous quarter. The Earnings Per Share (EPS) settled at $4.42, down by...
Financial Highlights
Revenue surged to $13.8 billion, marking a 47.32% increase YoY and a 4.21% increase QoQ. Gross profit fell to $7.53 billion with a margin of 54.59%, while operating income also saw fluctuations, reflecting an operating income of $2.22 billion—a decrease of 17.21% YoY but a healthy recovery with a 240.71% QoQ jump. Net income was reported at $1.78 billion, nearly flat YoY, but growing substantially by 197.65% from the previous quarter. The Earnings Per Share (EPS) settled at $4.42, down by 0.90% YoY but soaring 217.99% QoQ, indicative of improved operational leverage.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.80B |
47.32% |
4.21% |
| Gross Profit |
7.53B |
-19.58% |
34.57% |
| Operating Income |
2.22B |
-17.21% |
240.71% |
| Net Income |
1.78B |
-0.73% |
197.65% |
| EPS |
4.42 |
-0.90% |
217.99% |
Key Financial Ratios
operatingProfitMargin
16.1%
operatingCashFlowPerShare
$16.86
freeCashFlowPerShare
$16.05
dividendPayoutRatio
16.6%
Management Commentary
Management commentary focused on two key themes: innovation and risk management. CEO Richard Fairbank stated, 'Our ongoing investment in technology and digital banking is yielding results, allowing us to better serve our customers while also enhancing our competitiveness.' Additionally, CFO Andy McGarry noted, 'We remain vigilant in managing credit risk amidst economic fluctuations, resulting in sustainable profitability and shareholder value.' These insights reflect a commitment to strategic growth amidst a challenging financial landscape.
Our ongoing investment in technology and digital banking is yielding results, allowing us to better serve our customers while also enhancing our competitiveness.
— Richard Fairbank, CEO
We remain vigilant in managing credit risk amidst economic fluctuations, resulting in sustainable profitability and shareholder value.
— Andy McGarry, CFO
Forward Guidance
Looking forward, management has indicated a focus on enhancing customer experience through technological advancements, with a target revenue growth of 10-15% in 2025, driven by new product offerings and an expanding customer base. The company intends to maintain its cautious stance on credit risk, particularly in light of potential economic slowdowns. Investors should monitor regulatory changes in financial services and any impact on credit issuance as key factors influencing future performance.