Capital One Financial Corporation reported third-quarter net income of $3.5 billion, up from $3.2 billion a year earlier, while its credit card delinquency rate climbed from the previous quarter.
Earnings were $5.61 per diluted common share, compared with $4.83 a year earlier and $4.73 in the second quarter. Capital One furnished its earnings release and financial supplement as exhibits to a Form 8-K filed with the SEC on Oct. 20.
Net revenue rose 6% from a year earlier to $16.3 billion. Noninterest expense fell 2% from the second quarter to $8.9 billion, while the provision for credit losses declined by $73 million to $2.9 billion over the same period.
The company reported $3.1 billion in net charge-offs and released $225 million in loan reserves. In its credit card business, the net charge-off rate fell to 4.01% from 4.71% in the second quarter.
The credit card 30+ day delinquency rate moved in the other direction, rising to 3.72% from 3.37% in the second quarter. It remained below the 3.84% recorded a year earlier. The two card measures therefore showed different quarterly trends, even as both were below their year-earlier levels.
Capital One also recorded pre-tax integration expenses of $338 million for Discover and $47 million for Brex. Capital One Chief Executive Officer Richard D. Fairbank said the Discover integration was progressing and that the company was working toward its expected synergies.
The company described its financial supplement as preliminary and directed investors to its third-quarter Form 10-Q once filed.
