Capital One Financial Corp

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.

Capital One (COF) disclosed that it suffered a major data breach, with the hack exposing the personal data of 106 million customers in the US and Canada.

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.

Pulling its application for an industrial bank license doesn’t mean that Square has put its ambitions to challenge traditional banks on ice.

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.

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.

In the first quarter, Capital One’s net income totaled $1.3 billion while Discover’s net income reached $666.0 million.

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.

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

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.”

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.

Analysts still love Visa (V) stock, primarily because of its strong outlook.

Visa’s (V) NTM (next-12-month) and LTM (last-12-month) price-to-book ratios are 7.6x and 8.9x, respectively.

Visa’s (V) performance is expected to be primarily driven by spending trends, electronic payment adoption, and tapping into areas where many payments are still made in cash.

Discover Financial Services’ (DFS) Direct Banking segment generates most of its interest income from credit card loans.

At the end of the first quarter, Discover Financial’s Payment Services segment saw total volumes of $88.4 billion.

Capital One’s (COF) price-to-earnings ratio stood at ~9.1x on an NTM basis compared to the average of its peers of ~16.7x.

Capital One’s (COF) Consumer Banking business generated total net revenues of ~$1.8 billion in the first quarter for a YoY increase of 4.0%.

Capital One’s Credit Card segment generated total net revenues of ~$4.4 billion in Q1 2018, compared to ~$4.1 billion in Q1 2017, reflecting an 8.0% YoY increase.

Capital One’s (COF) Commercial Banking segment generated total net revenues of $723.0 million in Q1 2018, compared to $724.0 million in Q1 2017.

After gaining for two consecutive trading weeks, Capital One Financial started this week on a weaker note and declined as the week progressed.

Goodyear Tire & Rubber (GT), which is an American multinational tire manufacturing company, was among the S&P 500’s top losses on April 25.

Discover Financial Services’ (DFS) Direct Banking segment generated pretax income of $3.4 billion in 2017.

Wall Street analysts gave a high estimate of $2.02 and a low estimate of $1.65 on Discover’s earnings per share for 1Q18.

Amazon (AMZN) is exploring launching a banking service that would appeal to young people and those without traditional bank accounts, according to recent reports by The Wall Street Journal and Bloomberg.

JPMorgan Chase (JPM) has rewarded shareholders with higher yields and repurchases in 2017.

For Amazon, PayPal, and Square, supplying credit to customers is a good way to get customers to spend more. It’s also a way to deepen customer relationships.

In February 2018, Discover Financial Services (DFS) was covered by 25 analysts, of whom nine suggested a “strong buy” and five recommended a “hold” on the stock.

The Trump administration is seeking amendments in the Dodd-Frank Act in a bid to push for reduced regulations for banks and insurance companies.

Wall Street analysts gave a one-year target on E*TRADE Financial of $62.25, reflecting an ~18.1% increase from the current price of $52.70.

In 4Q17, JPMorgan Chase (JPM) returned $6.7 billion to shareholders in the form of dividends and repurchases, compared to $4.5 billion in 3Q17.

American Express’s (AXP) total revenues (net of interest expense) were $8.8 billion in 4Q17 compared to $8 billion in 4Q16.

American Express’s (AXP) Global Merchant Services segment saw a rise in non-interest revenues from $1.06 billion in 4Q16 to $1.14 billion in 4Q17.

American Express’s (AXP) Global Commercial Services segment saw a substantial rise of 52% in net income, from $382 million in 4Q16 to $580 million in 4Q17.

In December 2017, American Express (AXP) is being tracked by 30 analysts. Five of them are suggesting a “strong buy” for the stock, and 16 are suggesting a “hold.”

On an NTM (next 12-month) basis, American Express (AXP) has a PB (price-to-book) ratio of 3.92x. The average for its peers is 2.16x.

American Express (AXP) and JPMorgan Chase (JPM) have finally sealed a deal with Marriott International (MAR) for its credit card program.

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.

The Global Commercial Services division of American Express (AXP) posted total revenues after the deduction of interest expenses of $7.6 billion in the first three quarters of 2017.

In the first three quarters of 2017, American Express (AXP) posted total expenses of $17.1 billion compared to $15.7 billion during the same period of 2016.

In 3Q17, Wells Fargo saw its non-accrual loans fall to $8.6 billion, or 0.91% of its total loans, compared to $9.1 billion, or 0.95% of its total loans, on June 30, 2017.

American Express (AXP) incurred total expenses of $5.8 billion in 3Q17 compared to $5.5 billion in 3Q16, which reflects a 6.0% rise.

After making adjustments related to foreign exchange, American Express (AXP) saw a YoY (year-over-year) rise of 8.0% in revenues for 3Q17.

American Express’s (AXP) Global Merchant Services division has seen a marginal rise of 4.0% on a YoY (year-over-year) basis for its total 3Q17 revenues.

Total 3Q17 revenues for American Express’s (AXP) Global Commercial Services division were $2.6 billion in 3Q17 compared to $2.4 billion in 3Q16, reflecting a 6.0% rise.

JPMorgan Chase’s $6.5 billion payout forms ~2% of the bank’s total market capitalization.

Capital One’s (COF) Consumer Banking segment’s ending loans were up ~1% YoY in 1Q15, as the growth in auto loans was offset by runoff in the mortgage portfolio.

Capital One repurchased 5.4 million shares in 1Q15—representing 1% of the its total outstanding shares. Its strategic priorities for 2015 haven’t changed.

In 1H16, Mastercard (MA) used net cash of $2.3 billion for its financing purposes. In 1H17, it was $2.5 billion for the same purpose.

Mastercard (MA) reported total assets of $19.8 billion as of June 30, 2017, and $18.7 billion as of December 31, 2016.

In 1H16, Mastercard (MA) reported net income of $1.9 billion. In 1H17, it was $2.3 billion, reflecting a substantial rise of 16.5%.

Lower valuation Wall Street analysts expect American Express (AXP) stock to reach $89.50 within one year. This estimate represents a 3.3% price increase. The company’s US consumer services division’s income fell substantially between 1H16 and 1H17. However, the company managed to reduce its marketing, promotion, and other expenses in its global merchant services division. American […]

PayPal (PYPL) may be bracing for more competition as banks have put their differences aside to launch a common P2P (peer-to-peer) payment platform called Zelle.

After pulling back briefly on March 29, the financials sector regained strength and led the market rally on March 30.

The Federal Reserve approved JPMorgan Chase’s (JPM) capital plans for 2016 after it cleared its annual stress test in June.

The Federal Reserve approved JPMorgan Chase’s (JPM) capital plans for 2016 after it passed the annual stress test. The bank said it would keep its dividends constant.

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

For 1Q16, Bank of America announced a dividend of $0.05 per share—flat on a quarterly and YoY basis—which translates to a dividend yield of 1.4%.

Citigroup is currently one of the stocks paying the lowest dividends in the banking space (KBE). In 2015, the company paid dividends of $0.16 per share.

Tableau projected revenues for 2016 to be between $830 million and $850 million, lower than its previous forecast of between $845 million and $865 million.

Capital One Financial continued to work on maintaining strong capital ratios and liquidity during the fourth quarter of 2015.

Capital One’s efficiency ratio was 56.2% for 4Q15, which is slightly lower than the 56.5% the company saw in 4Q14. With efficiency ratios, lower is better.

In 4Q15, Capital One’s non-performing loans in its Commerical Banking segment increased to $550 million due to downgrades of oil and gas loans.

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 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.

Yields, as measured by the BofA Merrill Lynch US High Yield Master II Effective Yield, have been 6%–8.2% YTD in 2015. The yields rose since May 2015.

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.

Capital One Financial (COF) delivered better-than-expected third quarter earnings on October 22 after markets closed.

Capital One Financial’s management scheduled a conference call on October 22 to discuss third quarter earnings and provide guidance for 4Q15 and 2016.

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

Labor market slack refers to the underutilization of available workforce. One of the indicators that shows whether there’s slack in the labor market is the labor force participation rate.

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

Analysts on the street have revised their EPS estimates for Navient downward seven times in the past month. On Friday, Navient closed at $16.86.

The latest Federal Reserve data on consumer credit were released on July 8, 2015. There was 2.10% growth in the revolving consumer credit levels in May.

Banking stocks within the Financial Select Sector SPDR Fund (XLF) fell by 0.81% in the week ending June 19, in line with the Dow Jones U.S. Banks Index, which fell by 0.7% that week.

Large-cap banking stocks make up 45.9% of the XLF portfolio. These stocks fell by 0.77% last week. And YTD, small-cap banking stocks have risen by 9.13%.

June 12 data from the Fed According to the latest Federal Reserve data released on June 12, total deposits at all US commercial banks in the week ending June 5 increased by 5.4% YoY (year-over-year). Deposits grew by 5.6% YoY in the previous week. Total deposits account for 85% of US banks’ funding. As the above graph shows, […]

Credit card loans account for nearly half of the total consumer loans at commercial banks. Card loans grew by 4.1% YoY in the week.

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.

During 1Q15, Discover repurchased ~6 million shares of common stock. This resulted in a 1% decline in the common stock outstanding from the previous quarter.

Ascend Capital increased its position in Bank of America by over $18 million. It represented 1.11% of the total portfolio in 4Q14—up from 0.32% in the third quarter.