NEW YORK - Capital One Financial (NYSE:COF) reported fourth quarter earnings that beat analyst expectations, but shares dipped slightly in after-hours trading on Tuesday.
The credit card issuer and bank posted adjusted earnings per share of $3.09, surpassing the $2.85 consensus estimate. Revenue came in at $10.2 billion, in line with analyst projections.
Net income available to common shareholders was $1.02 billion, or $2.67 per diluted share, compared to $639 million, or $1.67 per share, in the year-ago quarter.
"Our fourth quarter results included steady top-line growth in our domestic card business, strong originations and a return to loan growth in our auto business, and stable credit results across our businesses," said Richard D. Fairbank, Capital One's Founder, Chairman and CEO.
The company's credit card loans grew 5% YoY to $162.5 billion at quarter-end. Auto loans increased 4% to $76.8 billion. Total (EPA:TTEF) deposits rose 4% to $362.7 billion.
Capital One's provision for credit losses increased to $2.64 billion from $2.86 billion a year earlier. The net charge-off rate rose to 3.59% from 3.21% in Q4 2023.
Shares of Capital One fell 0.38% in after-hours trading following the earnings release. The stock had gained 2.7% during regular trading hours on Thursday ahead of the report.
The company said shareholder votes on its proposed acquisition of Discover Financial Services (NYSE:DFS) are scheduled for February 18th. Capital One expects to complete the deal in early 2025, subject to regulatory approvals.
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