On the revenue front, net interest income rose modestly to $5.82 billion, while non-interest income was down about 0.5% to $1.19 billion due to drop in service fees and unrealized losses offset by 4% improvement in interchange fees.
Net interest margin (NIM), one of the key metrics tracked by the street, was down 5 basis points to 6.96% compared to last year. Provision for bad loans decreased 15% over the prior year period but has jumped 29% sequentially which remains a concern for investors about the credit quality.
Capital One Financial posts upbeat Q3 results
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Credit card division grew 2% to $4.5 billion while consumer and commercial segment saw its top line jump 41% and 35% respectively.
Marketing expense came in at $831 million, witnessing 80% jump compared to last year and operating expense decreased modestly to $3.3 billion.
On the asset quality side, the charge-off ratio decreased 22 basis points to 2.67% compared to 2.89% reported last year. Non-performing assets (NPA), another vital metric of interest to analysts, was 0.35%, down six basis points compared to 0.41% reported in the prior year period.
The company’s stock is down over 21% over the last 12 months and it has increased 10% in 2019.