- A release of $1.6B of reserves held for credit losses bolsters Capital One Financial (NYSE:COF) Q1 earnings, as the economic outlook improved.
- CEO Richard Fairbank said "strikingly strong credit" drove its record earnings. Average loans during the quarter fell Q/Q as consumers didn't borrow as much using credit cards; commercial banking average loans increased from Q4.
- Q1 adjusted EPS of $7.03 vs. consensus of $4.04; compares with $5.29 in Q4 2020 and a loss of $3.02 in the year-ago quarter.
- COF shares rise 0.9% in after-hours trading.
- Q1 provision for credit loss was a benefit of $823M vs. a cost of $264M in Q4 and a cost of $5.42B in Q1 2020.
- Q1 net charge-off rate of 1.21% vs. 1.38% in Q4.
- Q1 average loans held for investment of $243.9B, fell 2% Q/Q; credit card average loans of $100.5B, down 3% Q/Q; consumer banking average loans of $69.2B, rose 1% Q/Q; commercial banking average loans of $74.2B, declined 2% Q/Q.
- Tangible book value per common share was $90.96 at March 31, 2021 vs. $88.34 at Dec. 31, 2020.
- Q1 revenue of $7.11B vs. consensus estimate of $6.99B; compares with $7.34B in Q4 and $7.25B in Q1 2020.
- Conference call at 5:00 PM ET.
- Previously (April 27): Capital One Financial EPS beats by $2.99, beats on revenue