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Capital One disclosed Thursday (Oct. 31) that it could face an enforcement action by the Consumer Financial Protection Bureau (CFPB) regarding its introduction of a new savings account product with a higher interest rate than its existing savings account products.
A top federal agency may pursue enforcement action against Capital One over alleged misrepresentations related to its savings accounts, the consumer lender disclosed in a filing late on Thursday.
Capital One stock has been resilient despite rising charge-offs. Here's why now could be a good time to buy.
Capital One's strong financials include $1.8 billion net income, a single-digit P/E ratio, and robust liquidity with $132 billion in reserves. The company is acquiring Discover Financial Services, potentially enhancing synergies and creating its own payment network, despite integration risks. Credit card operations drive over 70% of revenue but also incur high loss rates; liquidity remains strong with a 163% coverage ratio.
COF's third-quarter 2024 results beat estimates on higher NII, loans and deposits. However, higher costs, provisions and lower non-interest income remain woes.
Capital One's most recent quarterly earnings, posted Thursday (Oct. 24) after the bell, indicated that cardholders continued to embrace credit as a key payment method, and consumers remained in “good shape,” according to the CEO. The company's earnings supplementals noted that card purchase volumes were 5% higher, to $166 billion.
Capital One Financial Corporation (NYSE:COF ) Q3 2024 Earnings Conference Call October 24, 2024 5:00 PM ET Company Participants Jeff Norris - SVP, Finance Andrew Young - CFO Richard Fairbank - Chairman and CFO Ime Archibong - Board Member Conference Call Participants Ryan Nash - Goldman Sachs Sanjay Sakhrani - KBW Terry Ma - Barclays Bill Carcache - Wolfe Research Securities Don Fandetti - Wells Fargo John Heck - Jefferies Mihir Bhatia - Bank of America Chase Haynes - Evercore ISI Jeff Adelson - Morgan Stanley Operator Good day, and thank you for standing-by. Welcome to the Capital One Q3 2024 Earnings Call.
The headline numbers for Capital One (COF) give insight into how the company performed in the quarter ended September 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Capital One (COF) came out with quarterly earnings of $4.51 per share, beating the Zacks Consensus Estimate of $3.70 per share. This compares to earnings of $4.45 per share a year ago.