Capital One Reports First Quarter 2018 Net Income of $1.3 billion, or $2.62 per share

MCLEAN, Va., April 24, 2018

"In the first quarter, Capital One delivered year-over-year growth in loans, deposits, revenues and pre-provision earnings," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "We continue to build an enduringly great franchise with the scale, brand, capabilities and infrastructure to succeed as the digital revolution transforms banking."

All comparisons below are for the first quarter of 2018 compared with the fourth quarter of 2017 unless otherwise noted. 

First Quarter 2018 Income Statement Summary:

• Total net revenue decreased 1 percent to $6.9 billion.
• Total non-interest expense decreased 5 percent to $3.6 billion:
• 5 percent decrease in operating expenses.
• 10 percent decrease in marketing.
• Pre-provision earnings increased 3 percent to $3.3 billion⁽²⁾. 
• Provision for credit losses decreased 13 percent to $1.7 billion:
• Net charge-offs of $1.6 billion.
• $56 million reserve build.
• Net interest margin of 6.93 percent, down 10 basis points.
• Efficiency ratio of 51.72 percent.
• Efficiency ratio excluding adjusting items was 51.45 percent⁽¹⁾.

First Quarter 2018 Balance Sheet Summary:

• Common equity Tier 1 capital ratio under Basel III Standardized Approach of 10.5 percent at March 31, 2018.
• Period-end loans held for investment in the quarter decreased $6.2 billion, or 2 percent, to $248.3 billion.
• Credit Card period-end loans decreased $7.2 billion, or 6 percent, to $107.6 billion.
• Domestic Card period-end loans decreased $6.8 billion, or 6 percent, to $98.5 billion.
• Consumer Banking period-end loans decreased $404 million, or 1 percent, to $74.7 billion:
• Auto period-end loans increased $820 million, or 2 percent, to $54.8 billion.
• Home loans period-end loans decreased $1.0 billion, or 6 percent, to $16.6 billion, primarily driven by run-off of acquired portfolios. 
• Commercial Banking period-end loans increased $1.4 billion, or 2 percent, to $66.0 billion.
• Average loans held for investment in the quarter decreased $2.8 billion, or 1 percent, to $249.7 billion.
• Credit Card average loans decreased $527 million, or less than 1 percent, to $109.5 billion.
• Domestic Card average loans decreased $637 million, or 1 percent, to $100.5 billion.
• Consumer Banking average loans decreased $292 million, or less than 1 percent, to $75.0 billion:
• Auto average loans increased $597 million, or 1 percent, to $54.3 billion.
• Home loans average loans decreased $885 million, or 5 percent, to $17.2 billion, primarily driven by run-off of acquired portfolios.
• Commercial Banking average loans decreased $2.0 billion, or 3 percent, to $65.2 billion.
• Period-end total deposits increased $7.1 billion, or 3 percent, to $250.8 billion, while average deposits increased $3.7 billion, or 2 percent, to $245.3 billion.
• Interest-bearing deposits rate paid increased 13 basis points to 0.98 percent.

Earnings Conference Call Webcast Information