Sector: Financials|Industry: Credit Services|Market Cap: $66.55B|Employees: 52K
Capital One Financial Corporation is a diversified financial services holding company offering a broad array of products and services to consumers, small businesses, and commercial clients. The company's core business model revolves around lending, deposit gathering, and capital markets activities. Capital One is among the largest credit card issuers in the U.S. and also provides auto loans and other consumer lending products. It has a significant geographic presence across the U.S., with operations in the U.K. and Canada.
Capital One's net interest income reached $8.1 billion, an increase of 9% compared to the same quarter last year. This was primarily driven by higher average loan balances and margins in the credit card portfolio, including the impacts of the Walmart Program Termination.
Net income decreased by $13 million to $1.8 billion in the third quarter of 2024 compared to the third quarter of 2023. This was primarily driven by higher provision for credit losses and non-interest expenses.
The provision for credit losses increased by $198 million to $2.5 billion in the third quarter of 2024, driven by higher net charge-offs, including the impacts of the Walmart Program Termination, partially offset by an allowance release.