Key Takeaways:
- EPS of $3.14 missed by 7.4%
- Revenue of $9.51B missed by 0.9%
- Total revenue up 5.5% YoY, up 1.2% QoQ
- Net income of $597 million
- Share price flat post earnings
- Domestic card purchase volume grew 5% YoY
- Ending loan balances increased 8% YoY in domestic card business
- Auto originations up 18% YoY
- Consumer banking ending deposits up 7% YoY
- Total company marketing expense up 20% YoY to $1.1 billion
Forward-Looking Statements and Insights:
Richard Fairbank, Chairman & CEO:
“We expect total company marketing in the second half of 2024 to be meaningfully higher than the first half, similar to the pattern we saw last year. We are all-in and working hard to complete the Discover acquisition.”
“The combination of Capital One and Discover creates game changing strategic opportunities. The Discover payments network positions Capital One as a more diversified, vertically integrated global payments platform, and adding Capital One’s debit spending and a growing portion of our credit card purchase volume to the Discover network will add significant scale, increasing the network’s value to merchants, small businesses, and consumers and driving enhanced network growth.”
