Is Capital One bank in trouble?
Your money is safe at Capital One
The FDIC insures balances up to $250,000 held in various types of consumer and business deposit accounts.
Is Capital One bank insured by the FDIC? Yes. Single accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000, joint accounts up to $500,000.
Capital One has concentration risk in its loan portfolio due to the high level of consumer and auto loans on its balance sheet. Credit card loans represent 47% of Capital One's loan portfolio; the credit card portfolio rose for the last four consecutive quarters.
Capital One's threat of distress is under 9% at the present time. It has tiny chance of undergoing some form of financial crunch in the near future.
Capital One Financial has total assets of $478.5B and total equity of $58.1B. Total deposits are $348.4B, and total loans are $305.2B. It earns a Net Interest Margin of 6.6%. It has sufficient allowance for bad loans, which are currently at 0.5% of total loans.
Banks decide for themselves, but regulators all over the world require banks to hold a certain amount of capital—calculated as a percentage of their assets—so they are less likely to fail, seek a government rescue, or trigger a financial crisis.
Two financial giants are joining forces, but the impact may not be seen until early 2025.
Fitch Ratings - New York - 21 Feb 2024: Fitch Ratings has affirmed Capital One Financial Corporation's (COF) Long- and Short-Term Issuer Default Ratings (IDRs) at 'A-' and 'F1', respectively, and has affirmed the bank's Viability Rating (VR) at 'a-'.
Capital One announced its plan to merge with Discover Financial Services in late 2024 or early 2025 in a deal that would offer multiple benefits to both financial institutions (Photo courtesy of Wikimedia Commons / Tdorante10.
What is downside risk to capital?
Downside risk is the potential for your investments to lose value in the short term. History shows that stock and bond markets generate positive results over time, but certain events can cause markets or specific investments you hold to drop in value.
Credit card charges might be declined if your credit card has been suspended or restricted. Your credit card might be suspended or restricted because the card hasn't been activated, there have been unusual transactions or payments are late.
The world's largest retailer had accused Capital One of being too slow to post many transactions to cardholders' accounts, and failing to promptly replace many lost cards. The problems were uncovered in late 2022 and early 2023.
Capital One is owned by Capital One Financial Corporation, a financial services holding company.
1. JP Morgan Private Bank. “J.P. Morgan Private Bank is known for its investment services, which makes them a great option for those with millionaire status,” Kullberg said. “With J.P. Morgan, each client is given access to a panel of experts, including experienced strategists, economists and advisors.”
Capital One Financial long term debt for 2023 was $49.318B, a 3.11% increase from 2022. Capital One Financial long term debt for 2022 was $47.832B, a 13.17% increase from 2021.
Mr. Fairbank is the founder, CEO and Chairman of Capital One and one of just a few founder-CEOs among America's largest public companies. In 1987, Mr. Fairbank founded Capital One on the belief that data and technology could change how banking works.
Total debt on the balance sheet as of December 2023 : $49.31 B. According to Capital One's latest financial reports the company's total debt is $49.31 B. A company's total debt is the sum of all current and non-current debts.
Capital One was named best big bank and best bank for ATM access as part of the 2024 Bankrate Awards, which recognizes the best financial products available to consumers.
The largely online institution is one of the nation's top 10 banks by assets and offers a wide range of financial products and services. Its credit cards, long the brand's bread and butter, are standouts—particularly if you're eyeing travel rewards or cash back.
Is Capital One a growing bank?
Adjusted net income(1) for the fourth quarter of 2023 was $2.24 per diluted common share. "We delivered solid results with strong top line growth in 2023," said Richard D. Fairbank , Founder, Chairman, and Chief Executive Officer.
So, if you prefer higher savings rates and lower fees on your banking accounts, then Capital One might be your choice. However, if you want to keep all your money in one place, and like the option of in-person banking you might want to consider Chase.
Capital One: APYs. Annual percentage yield (APY) is a place of major difference between Bank of America and Capital One. Capital One pays consistently higher APYs on savings account and CD products, more like an online-only bank would, plus its checking accounts earn interest, too.
First Horizon National Corp. Completes Acquisition of Capital Bank Financial Corp.
Capital One announced Monday evening its plans to acquire Discover Financial Services in a stock-only transaction valued at $35.3 billion.
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