Capital One Financial Corp

Capital One Financial Corporation’s (COF) PE (price-to-earnings) ratio is 8.77x on an NTM basis compared to its competitors’ average PE ratio of 20.79x.

The addition of “at its next meeting” in the FOMC’s October statement has led market participants to believe that a rate hike may be effected in its December meeting.

Last week was slightly downbeat for Amazon (AMZN), which fell 1%. The stock was at its weekly high of $1,815 on November 4 and its weekly low on November 8.

When a borrower isn’t able to pay back the loan, the loan is considered a non-performing asset (or NPA)—since the money for lending came from a depositor, the bank needs a large enough pool of capital to withstand such a shock.

Some of the top US financial services companies host their data on Amazon’s cloud. Amazon’s rise in the financial sector has caught the Fed’s attention.

Capital One announced yesterday that a data breach occurred in March. It affected about 100 million people in the US and 6 million in Canada.

In the fiscal third quarter, Visa (V) witnessed strong growth on a YoY (year-over-year) basis in all its primary business metrics.

In the third quarter, Visa (V) witnessed a rise in payment volumes from the United States on a sequential basis from 10.1% to 10.5%.

Visa (V) posted total payment volumes amounting to $2.1 trillion in its fiscal third quarter.

In the second quarter, Mastercard (MA) witnessed total gross dollar volumes (or GDV) of $1.5 trillion.

On July 26, Discover Financial Services (DFS) released its earnings report for the second quarter.

On July 25, Visa (V) posted its third fiscal quarter results. The company posted an EPS of $1.20, which exceeds Wall Street analysts’ expectations.

On July 25, Visa (V) is scheduled to report its results for the third fiscal quarter. Analysts expect Visa to post an EPS of $1.09.

Mastercard (MA) is set to release its second-quarter earnings report on July 26. What can we expect?

Capital One Financial (COF) posted second-quarter results on July 19.

On July 18, American Express (AXP) is expected to report its Q2 2018. Analysts expect EPS to be $1.82 compared to $1.86 in the first quarter.

Capital One (COF) is expected to release its Q2 2018 earnings on July 19. Analysts expect EPS of $2.68, a YoY rise of 38.1%.

Growing trade tensions are a primary concern, as they could impact the performances of Discover Financial Services (DFS) and its peers.

Discover Financial Services (DFS) generated net interest income amounting to $2.1 billion in the first quarter.

In June, eight of the 32 analysts covering the stock have given it a “buy” rating, and two analysts have given it a “strong sell.”

On June 25, the Dow Jones Industrial Average saw strong downward pressure primarily due to escalating US-China trade tensions.

American Express’s (AXP) Global Commercial Services segment’s non-interest revenues rose 9% YoY in the first quarter.

The second quarter could be beneficial for American Express (AXP) due to an expected rise in consumer loans and transactions.

In fiscal Q3 2018, Visa’s (V) service revenue could rise YoY (year-over-year) due to its payment volumes rising YoY in fiscal Q2 2018.

In the first three quarters of 2017, American Express’s (AXP) Global Merchant Services division rose 7% in income compared to the same period in 2016.

Wells Fargo (WFC) added 350 million shares to its share repurchase authorization in January 2016.

Larger-cap stocks, above $10 billion, make up 87.3% of the Financial Select Sector SPDR Fund (XLF). These stocks have lost 8% in the past year.

The financial sector gained big on December 4 as the prospects of a rate hike increased following the day’s jobs report.

The flows into investment-grade bond funds were positive for the week ending October 28. This was the third consecutive week of inflows.

US corporates were the biggest issuers of high-grade bonds in the week ending October 30. They accounted for 67.1%, or $25.7 billion, of all the issues.

There were investment-grade corporate bonds worth $38.2 billion issued in the primary market in the week ending October 30—the highest since September 18.

Some market participants point out that regulations give cause for worry about bond market liquidity because they hinder banks’ market-making capabilities.

Shares of Capital One Financial (COF) tumbled 13.33% during the week ended July 27 due to an earnings miss.

Discover Financial’s average ROE over the last five years was 19%—compared to the 5% average ROE for large banks that participated in the 2014 CCAR.

Despite higher incomes, the savings rate increased to 5.6% in April from 5.2% in March. Flat consumer spending isn’t a good sign for banks.

One of the main reasons consumer spending remained low in the first quarter of 2015 is probably the harsh winter. Consumers are also not very confident about the overall economy.

PNC Bank has done a good job at reducing its non-interest expenses, but the bank’s efficiency ratio still remains above 60%.

Auto finance is a business where Capital One (COF) grew rapidly. The bank entered the market in 1997. Since then, it has been able to build a sizeable market share.

Capital One (COF) can be understood best by breaking it into different business segments—Credit Card, Consumer Banking, and Commercial Banking.

Capital One is organized into subsidiaries. Capital One’s principal subsidiary is a limited purpose credit card bank. It’s chartered in Virginia.

Capital One’s history is shorter than other banks. In 1994, Signet Financial Corp. spun off its credit card business into a separate subsidiary—Capital One.

PNC’s net interest expenses stood at ~$9.5 billion at the end of 2014, $193 million lower than 2013 after curtailing salary and miscellaneous expenses.

PNC Bank’s loan book is skewed toward a few types of loans: commercial and industrial loans and 1–4 Family First Liens, about 44.5% of its total loans.

With a strong presence in the East, South, and Midwest, PNC Bank offers community banking, wholesale banking, corporate banking, and asset management.

Allergan’s total product sales were $1.79 billion, up 17.2% as compared to total product sales in 3Q13.

The U.S. Treasury held this auction on August 12, putting $27 billion worth of securities on offer. The amount on offer was the same as July’s auction amount. Despite the same level of issuance, the bid-to-cover ratio was 10% lower at 3.03x—compared to 3.38x in the July auction.

Generally, the interest charged from those who took the loans is higher than the interest paid to depositors—the difference in the interest earned and interest paid is the interest income that is essentially the money made by the bank from its core operations.