Capital One’s technological advances allowed the bank to expand underwriting, modeling and marketing in the third quarter of 2023. 

“Our modern technology capabilities are generating an expanding set of opportunities across our businesses,” Chief Executive Richard Fairbank said during the bank’s Q3 earnings call Thursday. 

For example, during the quarter the bank used machine learning models to improve its customer experience — contributing to a 13% year-over-year increase in consumer bank deposits, totaling $34 billion, Fairbank said. 

BY THE NUMBERS: The $471 billion McLean, Va.-based Capital One reported in Q3: 

• Communication and data processing costs fell 1% YoY to $344 million; 
• Non-interest expenses, which include communication and data processing, occupancy and equipment, professional services, benefits and marketing, declined 2% YoY to $4.9 billion; and 
• Total revenue increased 6% YoY to $9.4 billion. 

NOTEWORTHY: Capital One reported an efficiency ratio of 51.9% in Q3, according to the bank’s earnings release. 

“We expect 2023 annual operating efficiency ratio net of adjustments will be modestly down compared to 2022,” Fairbank said. 

FLASHBACK: In January, the bank cut more than 1,100 employees including technology positions, according to a Capital One statement. 

The bank continued to reduce staff in Q3, with the number of full-time employees falling 2% YoY to 54,200, according to the Q3 earnings release. 

MARKET SHARE: Shares of Capital One (NYSE: COF) were up 9.6% from market open to $98.02 at 2.18 p.m. ET today. Capital One has a market capitalization of $37.4 billion.