Capital One Financial Corporation (COF) has reported a 14.02 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $791 million, or $1.45 a share in the quarter, compared with $920 million, or $1.58 a share for the same period last year.
Revenue during the quarter was stable at $4,814 million, when compared with the previous year period. Net interest income for the quarter rose 9.80 percent over the prior year period to $5,447 million. Non-interest income for the quarter fell 9.25 percent over the last year period to $1,119 million.
Capital One Financial Corp has made negative provision of $1,752 million for loan losses during the quarter, compared with a negative provision of $1,380 million in the same period last year.
Net interest margin improved 6 basis points to 6.85 percent in the quarter from 6.79 percent in the last year period. Efficiency ratio for the quarter improved to 56.03 percent from 56.18 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"In 2016, Capital One posted a second consecutive year of double-digit growth in domestic card loans and purchase volume, as well as strong growth in auto and commercial loans," said Richard D. Fairbank, chairman and chief executive officer. "Assuming no substantial change in the broader credit and economic cycles, our strong growth over the last two years and actions to reduce share count put us in a position to deliver solid EPS growth in 2017."
Liabilities outpace assets growth
Total assets stood at $357,033 million as on Dec. 31, 2016, up 6.88 percent compared with $334,048 million on Dec. 31, 2015. On the other hand, total liabilities stood at $309,519 million as on Dec. 31, 2016, up 7.94 percent from $286,764 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $239,083 million as on Dec. 31, 2016, up 6.39 percent compared with $224,721 million on Dec. 31, 2015. Deposits stood at $236,768 million as on Dec. 31, 2016, up 8.75 percent compared with $217,721 million on Dec. 31, 2015.
Investments stood at $66,449 million as on Dec. 31, 2016, up 4.35 percent or $2,769 million from year-ago. Shareholders equity stood at $47,514 million as on Dec. 31, 2016, up 0.49 percent or $230 million from year-ago.
Return on average assets moved down 21 basis points to 0.91 percent in the quarter from 1.12 percent in the last year period. At the same time, return on average equity decreased 88 basis points to 6.48 percent in the quarter from 7.36 percent in the last year period.
Tier-1 leverage ratio stood at 9.90 percent for the quarter, down from 10.60 percent for the previous year quarter.
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