• by Danielle Oster , October 27, 2024

Capital One spent a lot of money on marketing last quarter, and doesn’t expect to slow down anytime soon.

Discussing the company’s Q3 earnings, Capital One CEO Richard Fairbank shared that the company's total marketing expenses for the quarter reached around $1.1 billion, a 15% increase YOY. He explained that marketing for the domestic debit card business was “the biggest driver of total company marketing," noting that the increases included “ihigher media spend and increased investment in differentiated customer experiences like our travel portal, airport lounges and Capital One Shopping.”

It seems Capital One’s marketing expenses will not shrink any time soon.

“We continue to expect total company marketing in the second half of 2024 to be meaningfully higher than in the first half, similar to the pattern we saw last year,” he added, including “ much higher marketing levels” typical for the fourth quarter which includes the busy holiday season.

Another prime topic during the call was the planned acquisition of Discover Capital One announced earlier this year. That deal is now facing some hurdles, following news this week that New York Attorney General Letitia James has launched a probe into whether the proposed $35.3 billion acquisition violates New York antitrust law. Discover is also working to resolve a separate SEC dispute related to a misclassification issue.

Capital One acknowledged that the deal wouldn’t close by the end of 2024. “We expect to be in a position to complete the acquisition early in 2025, subject to regulatory and shareholder approval,” Fairbank said, calling the proposed acquisition “a singular opportunity that would create a consumer banking and global payments platform with unique capabilities, modern technology, powerful brands and a franchise of more than 100 million customers.”