“Our 10-year quest to build our heavy spender franchise has brought with it significantly increased levels of marketing, but the sustained revenue, credit resilience and capital benefits of this enduring franchise are compelling, and they’re growing,” Fairbank told analysts. It also offers partner lounges at other airports for cardholders.įairbank said the company is already seeing benefits from its decadelong push toward “heavy spenders,” whose higher purchase volumes drive up interchange fee revenues and whose strong repayment behaviors limit any credit deterioration. The company has opened a lounge at the Dallas-Fort Worth airport and is set to open locations in the Denver airport and Washington D.C.’s Dulles airport this year. Spending bonuses for new cardholders drove up marketing expenditures, as did spending on Capital One’s online travel and the airport lounges it is launching for Venture X cardholders. The push continued in the second quarter, with marketing expenses jumping just above $1 billion.
The company, which last year launched a premium travel card called Venture X, has been spending heavily on marketing the past couple of quarters.
Capital One’s lower appetite for auto loans stands in contrast to its leaning into consumer credit cards.
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