Yahoo Finance Capital One: Higher loans helped revenue and profit surge
Higher loans helped Capital One’s revenue jump by £100m as profit surged at its European arm in 2023, it has been revealed.
The Nottingham-headquartered company has posted a revenue of £659.9m for the year, up from £569.5m.
Newly-filed accounts with Companies House also show its pre-tax profit also rose from £83.1m to £118.4m.
Capital One said its revenue increased by 16 per cent because of higher average loans to customers during the year.
The last time Capital One’s European arm made a higher pre-tax profit was the £159.7m it posted in 2021.
Its revenue has not been higher since it reported a total of £580.4m in 2018.
Capital One itself was founded in 1994 and is headquartered in the US.
Listed on the New York Stock Exchange, the group reported a revenue of $36.8bn (£28.9bn) for 2023.
At the time, founder, chairman and CEO Richard D. Fairbank said: “We delivered solid results with strong top line growth in 2023.
“Our modern technology capabilities are driving resilient growth, enabling efficiency improvement, and putting us in a strong position to deliver long-term shareholder value.”
In February this year, Capital One announced that it plans to buy rival card firm Discover Financial Services in a deal valued at $35.3bn (£27.7bn).
The transaction would create the sixth largest bank in the US, creating a new player in the payments market.
The transaction will close in late 2024 or early 2025, provided it gets the green light from both regulators and shareholders.
