Capital One Financial (COF) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 20, 2023 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to Capital One Q2 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Jeff Norris, Senior Vice President of Finance. Please go ahead.

Jeff Norris

Thanks very much, Amy, and welcome everybody to Capital One's second quarter 2023 earnings conference call. As usual, we are webcasting live over the Internet. To access the call on the Internet, please log on to Capital One's website at capitalone.com and follow the links from there. In addition to the press release and the financials, we have included a presentation summarizing our second quarter 2023 results.

With me today are Mr. Richard Fairbank, Capital One's Chairman and Chief Executive Officer; and Mr. Andrew Young, Capital One's Chief Financial Officer. Rich and Andrew will walk you through the presentation. To access a copy of the presentation and the press release, please go to Capital One's website, click on Investors, and click on quarterly earnings release.

Please note that this presentation may contain forward-looking statements. Information regarding Capital One's financial performance and any forward-looking statements contained in today's discussion and the materials, speak only as of the particular date or dates indicated in the materials. Capital One does not undertake any obligation to update or revise any of this information, whether as a result of new information, future events, or otherwise.

Numerous factors could cause our actual results to differ materially from those described in forward-looking statements. For more information on these factors, please see the section titled Forward-Looking Information in the earnings release presentation, and the Risk Factors section in our annual and quarterly reports accessible at the Capital One website and filed with the SEC.

With that, I'll turn the call over to Mr. Young. Andrew?

Andrew Young

Thanks, Jeff, and good afternoon, everyone. I'll start on Slide 3 of tonight's presentation. In the second quarter, Capital One earned $1.4 billion, or $3.52 per diluted common share. Pre-provision earnings of $4.2 billion were up 7% compared to the first quarter and 16% compared to the year-ago quarter.

Both period-end and average loans held for investment increased 1% relative to the prior quarter, driven by growth in our Domestic Card business. Period-end deposits declined 2% in the quarter, largely driven by tax-related outflows. Our percentage of FDIC insured deposits grew 1% to end the quarter at 79% of total deposits. We have provided additional details on deposit trends on Slide 18 in the appendix.