Enhanced Investments - Financial Portal

Published: 2021-10-26 00:00:00 ET

HTTP/1.1 200 OK HTTP/1.1 200 OK X-Crawlera-Slave: 67.207.172.178:3128 X-Crawlera-Version: 1.60.1 accept-ranges: bytes content-type: text/html last-modified: Tue, 26 Oct 2021 20:06:59 GMT server: AmazonS3 x-amz-id-2: DXWDgknzHwgE0ORZtzg57HEYVlmLKAtUGQ7uNF1D3enmj+5MXItMYOf39OCPMoSl15+XM8m0+Dc= x-amz-meta-mode: 33188 x-amz-meta-s3cmd-attrs: uid:504/gname:fitrprnt/uname:fitrprnt/gid:504/mode:33184/mtime:1635278815/atime:1635278815/md5:daad4f5d2f6123db077912b0a1eb0237/ctime:1635278815 x-amz-replication-status: COMPLETED x-amz-request-id: BEDZ8XNXPX9X431C x-amz-version-id: 2iOzqaV6CjGL.wPTYjgrxmvUP9m6x83n x-content-type-options: nosniff x-frame-options: SAMEORIGIN x-xss-protection: 1; mode=block x-akamai-transformed: 9 - 0 pmb=mTOE,2 expires: Fri, 07 Apr 2023 03:07:40 GMT cache-control: max-age=0, no-cache, no-store pragma: no-cache date: Fri, 07 Apr 2023 03:07:40 GMT vary: Accept-Encoding akamai-x-true-ttl: -1 strict-transport-security: max-age=31536000 ; includeSubDomains ; preload set-cookie: ak_bmsc=E9A757726CD7DF44AF67BFA202CB2F5B~000000000000000000000000000000~YAAQnw8kF1lZRCyHAQAATRmvWRPRNMb7tSQRq51KzdHhni26FdRofghdEBqfzReIFXrODsRMeCM4RQYgGINW/q3q0Jtc7EmlJmhs14xbw+QwH73Gtc2V8Tx4GdYsGDKc6fMUOTeUpyIWlOeaVXqdNHHYRc7Rz14iA0uVwf00Jbb4M0Ku/R3sAm98tjmCZ39/R5Qg6ew/EuUCcmd6eIbgQ/1gc29OHED2qCl+8rNBM+dQanDMB2mfQQX0Y1Ky7esdyrc8LZS9vC3vSCpZQf6cakppYCyYi00iJv6+1SOcaC4f3tQLXPHG1caW6EiGoVhI2iN0VD6ZaMfr5XsaaufD2E93ksgDwuVu8loiDY2ruCm+fjcGVRJacXRHH/w9NZhDM/Zl8eAc6fI=; Domain=.sec.gov; Path=/; Expires=Fri, 07 Apr 2023 05:07:39 GMT; Max-Age=7199; HttpOnly set-cookie: bm_mi=3612F0EABAEEB70EAB5878BD738D332A~YAAQnw8kF1pZRCyHAQAATRmvWROYuh7e4G2Xc9Xreh3DOCjNyZf2mvA15Nks4BpYDrLkRO5fLmAmb00QF6v2+dje9rkLMygVtbICLzRsYu8KvIms6XMvf8H49MVpJ2pEczema/dQUmeaICBqw18H1eMi9P68/+Ahvor1g4KueyjNHQfCFyasrqmpXcAOhPRdMuGhfPYqqEtlWbLzmdMVhnjgPU+uTA/oVg2NX3NPxvXHRaupgRfBIYI3InhCsTDqJMZ7SY0shMSEsgBiTzSQZSJWO4Nak0XLI6qFtnURBggtfSHD7S3rnF5ajZYcD7w7vyUWYn7syx7y9Vb/fwCfApDdTBd6RPEStjHrvCval2BvJMvXzLpBb1DFpYeyvyV2cJjlgQ7N81d4DXICqATNcCkrFK1bBA0=~1; Domain=.sec.gov; Path=/; Expires=Fri, 07 Apr 2023 03:07:40 GMT; Max-Age=0; Secure Transfer-Encoding: chunked Proxy-Connection: close Connection: close EX-99.2 3 ex992q32021earningsrelease.htm EX-99.2 Document

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement(1)(2)

Third Quarter 2021

Table of Contents


Capital One Financial Corporation Consolidated Results			Page
	Table 1:	Financial Summary—Consolidated	1
	Table 2:	Selected Metrics—Consolidated	3
	Table 3:	Consolidated Statements of Income	4
	Table 4:	Consolidated Balance Sheets	6
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	8
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	9
	Table 7:	Loan Information and Performance Statistics	10
	Table 8:	Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity	12
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	13
	Table 10:	Financial & Statistical Summary—Credit Card Business	14
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	16
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	17
	Table 13:	Financial & Statistical Summary—Other and Total	18
Other
	Table 14:	N otes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6 —13)	19
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	20

__________

(1)The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended September 30, 2021 once it is filed with the Securities and Exchange Commission.

(2)This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated


											2021 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)	2021		2021		2021		2020		2020		2021		2020						2021 vs.
	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2021		2020		2020
Income Statement
Net interest income	$	6,156	$	5,743	$	5,822	$	5,873	$	5,555	7	%	11	%	$	17,721	$	17,040	4	%
Non-interest income	1,674		1,631		1,291		1,464		1,826		3		(8)		4,596		4,146		11
Total net revenue(1)	7,830		7,374		7,113		7,337		7,381		6		6		22,317		21,186		5
Provision (benefit) for credit losses	(342)		(1,160)		(823)		264		331		(71)		**		(2,325)		10,000		**
Non-interest expense:
Marketing	751		620		501		563		283		21		165		1,872		1,047		79
Operating expense	3,435		3,346		3,239		3,446		3,265		3		5		10,020		10,000		—
Total non-interest expense	4,186		3,966		3,740		4,009		3,548		6		18		11,892		11,047		8
Income from continuing operations before income taxes	3,986		4,568		4,196		3,064		3,502		(13)		14		12,750		139		**
Income tax provision (benefit)	882		1,031		869		496		1,096		(14)		(20)		2,782		(10)		**
Income from continuing operations, net of tax	3,104		3,537		3,327		2,568		2,406		(12)		29		9,968		149		**
Loss from discontinued operations, net of tax	—		(1)		(2)		(2)		—		**		—		(3)		(1)		**
Net income	3,104		3,536		3,325		2,566		2,406		(12)		29		9,965		148		**
Dividends and undistributed earnings allocated to participating securities(2)	(26)		(30)		(28)		(19)		(20)		(13)		30		(84)		(5)		**
Preferred stock dividends	(79)		(60)		(61)		(68)		(67)		32		18		(200)		(212)		(6)
Issuance cost for redeemed preferred stock(3)	(12)		—		—		(17)		—		**		**		(12)		(22)		(45)
Net income (loss) available to common stockholders	$	2,987	$	3,446	$	3,236	$	2,462	$	2,319	(13)		29		$	9,669	$	(91)	**
Common Share Statistics
Basic earnings per common share:(2)
Net income (loss) from continuing operations	$	6.81	$	7.65	$	7.06	$	5.36	$	5.07	(11)	%	34	%	$	21.53	$	(0.20)	**
Income (loss) from discontinued operations	—		—		—		—		—		—		—		(0.01)		—		**
Net income (loss) per basic common share	$	6.81	$	7.65	$	7.06	$	5.36	$	5.07	(11)		34		$	21.52	$	(0.20)	**
Diluted earnings per common share:(2)
Net income (loss) from continuing operations	$	6.78	$	7.62	$	7.03	$	5.35	$	5.06	(11)	%	34	%	$	21.45	$	(0.20)	**
Income (loss) from discontinued operations	—		—		—		—		—		—		—		(0.01)		—		**
Net income (loss) per diluted common share	$	6.78	$	7.62	$	7.03	$	5.35	$	5.06	(11)		34		$	21.44	$	(0.20)	**
Weighted-average common shares outstanding (in millions):
Basic	438.8		450.6		458.6		459.1		457.8		(3)	%	(4)	%	449.2		457.4		(2)	%
Diluted	440.5		452.3		460.1		460.2		458.5		(3)		(4)		450.9		457.4		(1)
Common shares outstanding (period-end, in millions)	430.4		446.1		456.8		459.0		457.4		(4)		(6)		430.4		457.4		(6)
Dividends declared and paid per common share	$	1.20	$	0.40	$	0.40	$	0.10	$	0.10	**		**		$	2.00	$	0.90	122
Tangible book value per common share (period-end)(4)	99.60		97.20		90.96		88.34		83.67		2		19		99.60		83.67		19


											2021 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions)	2021		2021		2021		2020		2020		2021		2020						2021 vs.
	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2021		2020		2020
Balance Sheet (Period-End)
Loans held for investment	$	261,390	$	249,597	$	243,131	$	251,624	$	248,223	5	%	5	%	$	261,390	$	248,223	5	%
Interest-earning assets	387,208		387,295		392,485		388,917		390,040		—		(1)		387,208		390,040		(1)
Total assets	425,377		423,420		425,175		421,602		421,883		—		1		425,377		421,883		1
Interest-bearing deposits	269,134		271,314		276,325		274,300		276,092		(1)		(3)		269,134		276,092		(3)
Total deposits	305,938		306,308		310,328		305,442		305,725		—		—		305,938		305,725		—
Borrowings	37,501		36,343		38,450		40,539		42,795		3		(12)		37,501		42,795		(12)
Common equity	57,632		58,136		56,341		55,356		53,093		(1)		9		57,632		53,093		9
Total stockholders’ equity	63,544		64,624		61,188		60,204		58,424		(2)		9		63,544		58,424		9
Balance Sheet (Average Balances)
Loans held for investment	$	253,101	$	246,463	$	243,937	$	247,689	$	249,511	3	%	1	%	$	247,867	$	255,232	(3)	%
Interest-earning assets	387,766		390,129		388,572		388,252		391,451		(1)		(1)		388,820		375,041		4
Total assets	424,506		424,099		421,808		420,011		422,854		—		—		423,457		408,233		4
Interest-bearing deposits	269,278		273,476		273,358		274,142		276,339		(2)		(3)		272,022		259,631		5
Total deposits	305,035		308,217		305,056		304,513		305,516		(1)		—		306,102		286,242		7
Borrowings	37,464		37,054		39,911		40,662		44,161		1		(15)		38,134		48,577		(21)
Common equity	58,230		56,885		55,775		54,220		51,995		2		12		56,972		52,529		8
Total stockholders’ equity	64,682		62,376		60,623		59,389		57,223		4		13		62,575		57,802		8

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated


																2021 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions, except as noted)	2021			2021			2021			2020			2020			2021		2020								2021 vs.
	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2021			2020			2020
Performance Metrics
Net interest income growth (period over period)	7		%	(1)		%	(1)		%	6		%	2		%	**		**		4		%	(1)		%	**
Non-interest income growth (period over period)	3			26			(12)			(20)			67			**		**		11			7			**
Total net revenue growth (period over period)	6			4			(3)			(1)			13			**		**		5			—			**
Total net revenue margin(5)	8.08			7.56			7.32			7.56			7.54			52	bps	54	bps	7.65			7.53			12	bps
Net interest margin(6)	6.35			5.89			5.99			6.05			5.68			46		67		6.08			6.06			2
Return on average assets	2.92			3.34			3.16			2.45			2.28			(42)		64		3.14			0.05			309
Return on average tangible assets(7)	3.03			3.46			3.27			2.54			2.36			(43)		67		3.25			0.05			320
Return on average common equity(8)	20.52			24.24			23.22			18.18			17.84			(372)		268		22.64			(0.23)			23%
Return on average tangible common equity(9)	27.50			32.75			31.61			25.02			24.98			(5)%		252		30.57			(0.32)			31
Non-interest expense as a percentage of average loans held for investment	6.62			6.44			6.13			6.47			5.69			18	bps	93		6.40			5.77			63	bps
Efficiency ratio(10)	53.46			53.78			52.58			54.64			48.07			(32)		5%		53.29			52.14			115
Operating efficiency ratio(11)	43.87			45.38			45.54			46.97			44.24			(151)		(37)	bps	44.90			47.20			(230)
Effective income tax rate for continuing operations	22.1			22.6			20.7			16.2			31.3			(50)		(9)%		21.8			(7.2)			29%
Employees (period-end, in thousands)	50.8			52.0			51.7			52.0			52.5			(2)%		(3)		50.8			52.5			(3)
Credit Quality Metrics
Allowance for credit losses	$	11,573		$	12,346		$	14,017		$	15,564		$	16,129		(6)%		(28)%		$	11,573		$	16,129		(28)%
Allowance coverage ratio	4.43		%	4.95		%	5.77		%	6.19		%	6.50		%	(52)	bps	(207)	bps	4.43		%	6.50		%	(207)	bps
Net charge-offs	$	426		$	541		$	740		$	856		$	1,073		(21)%		(60)%		$	1,707		$	4,369		(61)%
Net charge-off rate(12)	0.67		%	0.88		%	1.21		%	1.38		%	1.72		%	(21)	bps	(105)	bps	0.92		%	2.28		%	(136)	bps
30+ day performing delinquency rate	1.97			1.75			1.82			2.41			1.97			22		—		1.97			1.97			—
30+ day delinquency rate	2.13			1.89			1.98			2.61			2.22			24		(9)		2.13			2.22			(9)
Capital Ratios(13)
Common equity Tier 1 capital	13.8		%	14.5		%	14.6		%	13.7		%	13.0		%	(70)	bps	80	bps	13.8		%	13.0		%	80	bps
Tier 1 capital	15.7			16.6			16.2			15.3			14.8			(90)		90		15.7			14.8			90
Total capital	18.2			18.8			18.6			17.7			17.3			(60)		90		18.2			17.3			90
Tier 1 leverage	12.2			12.4			11.7			11.2			10.6			(20)		160		12.2			10.6			160
Tangible common equity (“TCE”)(14)	10.4			10.6			10.1			10.0			9.4			(20)		100		10.4			9.4			100

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income


											2021 Q3 vs.				Nine Months Ended September 30,
	2021		2021		2021		2020		2020		2021		2020						2021 vs.
(Dollars in millions, except per share data and as noted)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2021		2020		2020
Interest income:
Loans, including loans held for sale	$	6,205	$	5,753	$	5,854	$	5,954	$	5,758	8	%	8	%	$	17,812	$	18,120	(2)	%
Investment securities	317		370		391		422		443		(14)		(28)		1,078		1,455		(26)
Other	16		16		16		15		14		—		14		48		67		(28)
Total interest income	6,538		6,139		6,261		6,391		6,215		6		5		18,938		19,642		(4)
Interest expense:
Deposits	228		237		269		347		476		(4)		(52)		734		1,818		(60)
Securitized debt obligations	29		28		32		34		43		4		(33)		89		198		(55)
Senior and subordinated notes	116		122		129		128		132		(5)		(12)		367		551		(33)
Other borrowings	9		9		9		9		9		—		—		27		35		(23)
Total interest expense	382		396		439		518		660		(4)		(42)		1,217		2,602		(53)
Net interest income	6,156		5,743		5,822		5,873		5,555		7		11		17,721		17,040		4
Provision (benefit) for credit losses	(342)		(1,160)		(823)		264		331		(71)		**		(2,325)		10,000		**
Net interest income after provision for credit losses	6,498		6,903		6,645		5,609		5,224		(6)		24		20,046		7,040		185
Non-interest income:
Interchange fees, net	1,022		1,016		817		818		775		1		32		2,855		2,199		30
Service charges and other customer-related fees	407		384		352		338		320		6		27		1,143		905		26
Net securities gains	2		—		4		—		25		—		(92)		6		25		(76)
Other	243		231		118		308		706		5		(66)		592		1,017		(42)
Total non-interest income	1,674		1,631		1,291		1,464		1,826		3		(8)		4,596		4,146		11
Non-interest expense:
Salaries and associate benefits	1,852		1,781		1,847		1,755		1,719		4		8		5,480		5,050		9
Occupancy and equipment	481		523		472		572		506		(8)		(5)		1,476		1,546		(5)
Marketing	751		620		501		563		283		21		165		1,872		1,047		79
Professional services	358		341		292		394		327		5		9		991		918		8
Communications and data processing	319		315		302		295		310		1		3		936		920		2
Amortization of intangibles	5		5		6		8		14		—		(64)		16		52		(69)
Other	420		381		320		422		389		10		8		1,121		1,514		(26)
Total non-interest expense	4,186		3,966		3,740		4,009		3,548		6		18		11,892		11,047		8
Income from continuing operations before income taxes	3,986		4,568		4,196		3,064		3,502		(13)		14		12,750		139		**
Income tax provision (benefit)	882		1,031		869		496		1,096		(14)		(20)		2,782		(10)		**
Income from continuing operations, net of tax	3,104		3,537		3,327		2,568		2,406		(12)		29		9,968		149		**
Income (loss) from discontinued operations, net of tax	—		(1)		(2)		(2)		—		**		—		(3)		(1)		200
Net income	3,104		3,536		3,325		2,566		2,406		(12)		29		9,965		148		**
Dividends and undistributed earnings allocated to participating securities(2)	(26)		(30)		(28)		(19)		(20)		(13)		30		(84)		(5)		**
Preferred stock dividends	(79)		(60)		(61)		(68)		(67)		32		18		(200)		(212)		(6)
Issuance cost for redeemed preferred stock(3)	(12)		—		—		(17)		—		**		**		(12)		(22)		(45)
Net income (loss) available to common stockholders	$	2,987	$	3,446	$	3,236	$	2,462	$	2,319	(13)		29		$	9,669	$	(91)	**



											2021 Q3 vs.				Nine Months Ended September 30,
	2021		2021		2021		2020		2020		2021		2020						2021 vs.
(Dollars in millions, except per share data and as noted)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2021		2020		2020
Basic earnings per common share:(2)
Net income (loss) from continuing operations	$	6.81	$	7.65	$	7.06	$	5.36	$	5.07	(11)	%	34	%	$	21.53	$	(0.20)	**
Income (loss) from discontinued operations	—		—		—		—		—		—		—		(0.01)		—		**
Net income (loss) per basic common share	$	6.81	$	7.65	$	7.06	$	5.36	$	5.07	(11)		34		$	21.52	$	(0.20)	**
Diluted earnings per common share:(2)
Net income (loss) from continuing operations	$	6.78	$	7.62	$	7.03	$	5.35	$	5.06	(11)		34		$	21.45	$	(0.20)	**
Income (loss) from discontinued operations	—		—		—		—		—		—		—		(0.01)		—		**
Net income (loss) per diluted common share	$	6.78	$	7.62	$	7.03	$	5.35	$	5.06	(11)		34		$	21.44	$	(0.20)	**
Weighted-average common shares outstanding (in millions):
Basic common shares	438.8		450.6		458.6		459.1		457.8		(3)		(4)		449.2		457.4		(2)	%
Diluted common shares	440.5		452.3		460.1		460.2		458.5		(3)		(4)		450.9		457.4		(1)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets


											2021 Q3 vs.
	2021		2021		2021		2020		2020		2021		2020
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3		Q2		Q3
Assets:
Cash and cash equivalents:
Cash and due from banks	$	5,444	$	5,312	$	4,670	$	4,708	$	4,267	2	%	28	%
Interest-bearing deposits and other short-term investments	21,180		29,534		45,825		35,801		39,839		(28)		(47)
Total cash and cash equivalents	26,624		34,846		50,495		40,509		44,106		(24)		(40)
Restricted cash for securitization investors	234		242		1,779		262		895		(3)		(74)
Securities available for sale	98,149		101,766		99,165		100,445		99,853		(4)		(2)
Loans held for investment:
Unsecuritized loans held for investment	238,475		226,130		219,182		225,698		217,878		5		9
Loans held in consolidated trusts	22,915		23,467		23,949		25,926		30,345		(2)		(24)
Total loans held for investment	261,390		249,597		243,131		251,624		248,223		5		5
Allowance for credit losses	(11,573)		(12,346)		(14,017)		(15,564)		(16,129)		(6)		(28)
Net loans held for investment	249,817		237,251		229,114		236,060		232,094		5		8
Loans held for sale	6,300		6,522		2,896		2,710		3,433		(3)		84
Premises and equipment, net	4,204		4,227		4,277		4,287		4,333		(1)		(3)
Interest receivable	1,418		1,372		1,380		1,471		1,551		3		(9)
Goodwill	14,652		14,654		14,654		14,653		14,648		—		—
Other assets	23,979		22,540		21,415		21,205		20,970		6		14
Total assets	$	425,377	$	423,420	$	425,175	$	421,602	$	421,883	—		1


											2021 Q3 vs.
	2021		2021		2021		2020		2020		2021		2020
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3		Q2		Q3
Liabilities:
Interest payable	$	241	$	301	$	288	$	352	$	332	(20)	%	(27)	%
Deposits:
Non-interest-bearing deposits	36,804		34,994		34,003		31,142		29,633		5		24
Interest-bearing deposits	269,134		271,314		276,325		274,300		276,092		(1)		(3)
Total deposits	305,938		306,308		310,328		305,442		305,725		—		—
Securitized debt obligations	12,635		10,561		12,071		12,414		13,566		20		(7)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	825		845		842		668		702		(2)		18
Senior and subordinated notes	23,983		24,878		25,467		27,382		28,448		(4)		(16)
Other borrowings	58		59		70		75		79		(2)		(27)
Total other debt	24,866		25,782		26,379		28,125		29,229		(4)		(15)
Other liabilities	18,153		15,844		14,921		15,065		14,607		15		24
Total liabilities	361,833		358,796		363,987		361,398		363,459		1		—

Stockholders’ equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	35,051		35,472		33,671		33,480		33,793		(1)		4
Retained earnings	48,944		46,461		43,167		40,088		37,653		5		30
Accumulated other comprehensive income	1,360		1,792		1,783		3,494		3,833		(24)		(65)
Treasury stock, at cost	(21,818)		(19,108)		(17,440)		(16,865)		(16,862)		14		29
Total stockholders’ equity	63,544		64,624		61,188		60,204		58,424		(2)		9
Total liabilities and stockholders’ equity	$	425,377	$	423,420	$	425,175	$	421,602	$	421,883	—		1

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

(1)Total net revenue was reduced by $123 million in Q3 2021, $175 million in Q2 2021, $180 million in Q1 2021, $177 million in Q4 2020 and $235 million in Q3 2020 for credit card finance charges and fees charged-off as uncollectible.

(2)Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(3)On March 2, 2020, we redeemed all outstanding shares of our fixed rate 6.00% non-cumulative perpetual preferred stock Series B, which increased our net loss available to common shareholders by $22 million in Q1 2020. On December 1, 2020, we redeemed all outstanding shares of our fixed rate 6.20% non-cumulative perpetual preferred stock Series F, which reduced our net income available to common shareholders by $17 million in Q4 2020. On September 1, 2021, we redeemed all outstanding shares of our fixed-to-floating rate non-cumulative perpetual preferred stock Series E, which reduced our net income available to common shareholders by $12 million in Q3 2021.

(4)Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(5)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

(6)Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

(7)Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(8)Return on average common equity is calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.

(9)Return on average tangible common equity (“ROTCE”) is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average tangible common equity (“TCE”). Our calculation of return on average TCE may not be comparable to similarly-titled measures reported by other companies. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(10)Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(11)Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(12)Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

(13)Capital ratios as of the end of Q3 2021 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.

(14)TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 6: Average Balances, Net Interest Income and Net Interest Margin


	2021 Q3						2021 Q2						2020 Q3
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale	$	260,235	$	6,205	9.54	%	$	249,280	$	5,753	9.23	%	$	250,525	$	5,758	9.19	%
Investment securities(1)	98,802		317		1.28		100,071		370		1.48		91,777		443		1.93
Cash equivalents and other	28,729		16		0.22		40,778		16		0.16		49,149		14		0.11
Total interest-earning assets	$	387,766	$	6,538	6.74		$	390,129	$	6,139	6.29		$	391,451	$	6,215	6.35
Interest-bearing liabilities:
Interest-bearing deposits	$	269,278	$	228	0.34		$	273,476	$	237	0.35		$	276,339	$	476	0.69
Securitized debt obligations	12,420		29		0.93		10,890		28		1.03		15,032		43		1.14
Senior and subordinated notes	24,241		116		1.91		25,487		122		1.92		28,497		132		1.86
Other borrowings and liabilities	2,357		9		1.49		2,198		9		1.67		2,119		9		1.77
Total interest-bearing liabilities	$	308,296	$	382	0.49		$	312,051	$	396	0.50		$	321,987	$	660	0.82
Net interest income/spread			$	6,156	6.25				$	5,743	5.79				$	5,555	5.53
Impact of non-interest-bearing funding					0.10						0.10						0.15
Net interest margin					6.35	%					5.89	%					5.68	%



	Nine Months Ended September 30,
	2021						2020
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale	$	252,113	$	17,812	9.42	%	$	256,165	$	18,120	9.43	%
Investment securities	99,059		1,078		1.45		83,724		1,455		2.32
Cash equivalents and other	37,648		48		0.17		35,152		67		0.25
Total interest-earning assets	$	388,820	$	18,938	6.49		$	375,041	$	19,642	6.98
Interest-bearing liabilities:
Interest-bearing deposits	$	272,022	$	734	0.36		$	259,631	$	1,818	0.93
Securitized debt obligations	11,851		89		1.00		16,500		198		1.60
Senior and subordinated notes	25,555		367		1.92		30,371		551		2.42
Other borrowings and liabilities	2,256		27		1.59		3,147		35		1.50
Total interest-bearing liabilities	$	311,684	$	1,217	0.52		$	309,649	$	2,602	1.12
Net interest income/spread			$	17,721	5.97				$	17,040	5.86
Impact of non-interest-bearing funding					0.11						0.20
Net interest margin					6.08	%					6.06	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics


											2021 Q3 vs.				Nine Months Ended September 30,
	2021		2021		2021		2020		2020		2021		2020		2021		2020		2021 vs. 2020
(Dollars in millions, except as noted)	Q3		Q2		Q1		Q4		Q3		Q2		Q3
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card(2)	$	99,258	$	95,309	$	91,099	$	98,504	$	95,541	4	%	4	%	$	99,258	$	95,541	4	%
International card businesses(3)	5,772		5,708		8,028		8,452		8,100		1		(29)		5,772		8,100		(29)
Total credit card	105,030		101,017		99,127		106,956		103,641		4		1		105,030		103,641		1
Consumer banking:
Auto	74,716		71,713		67,059		65,762		65,394		4		14		74,716		65,394		14
Retail banking	2,396		3,046		3,143		3,126		3,294		(21)		(27)		2,396		3,294		(27)
Total consumer banking	77,112		74,759		70,202		68,888		68,688		3		12		77,112		68,688		12
Commercial banking:
Commercial and multifamily real estate(4)	33,096		29,616		30,008		30,681		31,197		12		6		33,096		31,197		6
Commercial and industrial	46,152		44,205		43,794		45,099		44,697		4		3		46,152		44,697		3
Total commercial banking	79,248		73,821		73,802		75,780		75,894		7		4		79,248		75,894		4

Total loans held for investment	$	261,390	$	249,597	$	243,131	$	251,624	$	248,223	5		5		$	261,390	$	248,223	5
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	96,309	$	91,535	$	92,594	$	95,453	$	97,306	5	%	(1)	%	$	93,493	$	103,980	(10)	%
International card businesses	5,737		8,139		7,940		8,108		8,061		(30)		(29)		7,264		8,292		(12)
Total credit card	102,046		99,674		100,534		103,561		105,367		2		(3)		100,757		112,272		(10)
Consumer banking:
Auto	73,296		69,543		66,185		65,590		64,476		5		14		69,700		62,434		12
Retail banking	2,700		3,162		3,049		3,218		3,346		(15)		(19)		2,969		3,023		(2)
Total consumer banking	75,996		72,705		69,234		68,808		67,822		5		12		72,669		65,457		11
Commercial banking:
Commercial and multifamily real estate	30,314		30,124		29,856		30,825		30,918		1		(2)		30,100		31,239		(4)
Commercial and industrial	44,745		43,960		44,313		44,495		45,404		2		(1)		44,341		46,264		(4)
Total commercial banking	75,059		74,084		74,169		75,320		76,322		1		(2)		74,441		77,503		(4)
Total average loans held for investment	$	253,101	$	246,463	$	243,937	$	247,689	$	249,511	3		1		$	247,867	$	255,232	(3)


											2021 Q3 vs.				Nine Months Ended September 30,
	2021		2021		2021		2020		2020		2021		2020		2021		2020		2021 vs. 2020
	Q3		Q2		Q1		Q4		Q3		Q2		Q3
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card	1.36	%	2.28	%	2.54	%	2.69	%	3.64	%	(92)	bps	(228)	bps	2.05	%	4.31	%	(226)	bps
International card businesses	2.72		2.41		2.30		1.86		2.89		31		(17)		2.45		3.71		(126)
Total credit card	1.43		2.29		2.52		2.63		3.58		(86)		(215)		2.08		4.26		(218)
Consumer banking:
Auto	0.18		(0.12)		0.47		0.47		0.23		30		(5)		0.17		0.95		(78)
Retail banking	2.45		1.41		1.68		1.88		1.38		104		107		1.82		1.80		2
Total consumer banking	0.27		(0.06)		0.52		0.53		0.28		33		(1)		0.24		0.99		(75)
Commercial banking:
Commercial and multifamily real estate	0.01		0.04		0.06		0.02		0.41		(3)		(40)		0.04		0.17		(13)
Commercial and industrial	0.07		(0.21)		0.11		0.74		0.45		28		(38)		(0.01)		0.73		(74)
Total commercial banking	0.05		(0.11)		0.09		0.45		0.43		16		(38)		0.01		0.50		(49)
Total net charge-offs	0.67		0.88		1.21		1.38		1.72		(21)		(105)		0.92		2.28		(136)
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	1.93	%	1.68	%	2.24	%	2.42	%	2.21	%	25	bps	(28)	bps	1.93	%	2.21	%	(28)	bps
International card businesses	3.27		2.89		2.51		2.61		2.15		38		112		3.27		2.15		112
Total credit card	2.00		1.75		2.26		2.44		2.20		25		(20)		2.00		2.20		(20)
Consumer banking:
Auto	3.65		3.26		3.12		4.78		3.76		39		(11)		3.65		3.76		(11)
Retail banking	1.15		0.79		1.02		1.32		0.83		36		32		1.15		0.83		32
Total consumer banking	3.58		3.16		3.03		4.62		3.62		42		(4)		3.58		3.62		(4)
Nonperforming Loans and Nonperforming Assets Rates(5)(6)
Credit card:
International card businesses	0.16	%	0.20	%	0.17	%	0.24	%	0.25	%	(4)	bps	(9)	bps	0.16	%	0.25	%	(9)	bps
Total credit card	0.01		0.01		0.01		0.02		0.02		—		(1)		0.01		0.02		(1)
Consumer banking:
Auto	0.36		0.29		0.29		0.45		0.36		7		—		0.36		0.36		—
Retail banking	2.20		1.75		1.16		0.96		0.77		45		143		2.20		0.77		143
Total consumer banking	0.42		0.35		0.33		0.47		0.38		7		4		0.42		0.38		4
Commercial banking:
Commercial and multifamily real estate	0.87		1.02		0.78		0.65		0.58		(15)		29		0.87		0.58		29
Commercial and industrial	0.68		1.03		1.02		1.00		1.31		(35)		(63)		0.68		1.31		(63)
Total commercial banking	0.76		1.03		0.92		0.86		1.01		(27)		(25)		0.76		1.01		(25)
Total nonperforming loans	0.35		0.41		0.38		0.40		0.42		(6)		(7)		0.35		0.42		(7)
Total nonperforming assets	0.37		0.43		0.40		0.41		0.44		(6)		(7)		0.37		0.44		(7)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity



	Three Months Ended September 30, 2021
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of June 30, 2021	$	8,489	$	384	$	8,873	$	2,122	$	81	$	2,203	$	1,270	$	12,346
Charge-offs	(658)		(77)		(735)		(244)		(20)		(264)		(20)		(1,019)
Recoveries	331		38		369		210		3		213		11		593
Net charge-offs	(327)		(39)		(366)		(34)		(17)		(51)		(9)		(426)
Provision (benefit) for credit losses	(200)		2		(198)		(100)		9		(91)		(55)		(344)
Allowance build (release) for credit losses	(527)		(37)		(564)		(134)		(8)		(142)		(64)		(770)
Other changes(7)	6		(9)		(3)		—		—		—		—		(3)
Balance as of September 30, 2021	7,968		338		8,306		1,988		73		2,061		1,206		11,573
Reserve for unfunded lending commitments:
Balance as of June 30, 2021	—		—		—		—		—		—		164		164
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		2		2

Balance as of September 30, 2021	—		—		—		—		—		—		166		166
Combined allowance and reserve as of September 30, 2021	$	7,968	$	338	$	8,306	$	1,988	$	73	$	2,061	$	1,372	$	11,739



	Nine Months Ended September 30, 2021
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2020	$	10,650	$	541	$	11,191	$	2,615	$	100	$	2,715	$	1,658	$	15,564
Charge-offs	(2,436)		(259)		(2,695)		(813)		(53)		(866)		(47)		(3,608)
Recoveries	1,000		125		1,125		723		12		735		41		1,901
Net charge-offs	(1,436)		(134)		(1,570)		(90)		(41)		(131)		(6)		(1,707)
Provision (benefit) for credit losses	(1,252)		(73)		(1,325)		(537)		14		(523)		(446)		(2,294)
Allowance build (release) for credit losses	(2,688)		(207)		(2,895)		(627)		(27)		(654)		(452)		(4,001)
Other changes(7)	6		4		10		—		—		—		—		10
Balance as of September 30, 2021	7,968		338		8,306		1,988		73		2,061		1,206		11,573
Reserve for unfunded lending commitments:
Balance as of December 31, 2020	—		—		—		—		—		—		195		195


Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(29)		(29)

Balance as of September 30, 2021	—		—		—		—		—		—		166		166
Combined allowance and reserve as of September 30, 2021	$	7,968	$	338	$	8,306	$	1,988	$	73	$	2,061	$	1,372	$	11,739

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results


	Three Months Ended September 30, 2021										Nine Months Ended September 30, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(8)		Other(8)		Total		Credit Card		Consumer Banking		Commercial Banking(8)		Other(8)		Total
Net interest income (loss)	$	3,620	$	2,159	$	578	$	(201)	$	6,156	$	10,209	$	6,290	$	1,558	$	(336)	$	17,721
Non-interest income (loss)	1,263		127		306		(22)		1,674		3,545		412		803		(164)		4,596
Total net revenue (loss)	4,883		2,286		884		(223)		7,830		13,754		6,702		2,361		(500)		22,317
Provision (benefit) for credit losses	(198)		(91)		(53)		—		(342)		(1,325)		(523)		(475)		(2)		(2,325)
Non-interest expense	2,424		1,186		459		117		4,186		6,822		3,426		1,295		349		11,892
Income (loss) from continuing operations before income taxes	2,657		1,191		478		(340)		3,986		8,257		3,799		1,541		(847)		12,750
Income tax provision (benefit)	627		282		113		(140)		882		1,952		897		364		(431)		2,782
Income (loss) from continuing operations, net of tax	$	2,030	$	909	$	365	$	(200)	$	3,104	$	6,305	$	2,902	$	1,177	$	(416)	$	9,968

	Three Months Ended June 30, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(8)		Other(8)		Total
Net interest income (loss)	$	3,217	$	2,101	$	460	$	(35)	$	5,743
Non-interest income (loss)	1,253		144		257		(23)		1,631
Total net revenue (loss)	4,470		2,245		717		(58)		7,374
Provision (benefit) for credit losses	(635)		(306)		(219)		—		(1,160)
Non-interest expense	2,263		1,123		417		163		3,966
Income (loss) from continuing operations before income taxes	2,842		1,428		519		(221)		4,568
Income tax provision (benefit)	672		337		123		(101)		1,031
Income (loss) from continuing operations, net of tax	$	2,170	$	1,091	$	396	$	(120)	$	3,537

	Three Months Ended September 30, 2020										Nine Months Ended September 30, 2020
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(8)		Other(8)		Total		Credit Card		Consumer Banking		Commercial Banking(8)		Other(8)		Total
Net interest income (loss)	$	3,292	$	1,904	$	517	$	(158)	$	5,555	$	10,363	$	5,226	$	1,526	$	(75)	$	17,040
Non-interest income	1,013		107		237		469		1,826		2,769		330		655		392		4,146
Total net revenue	4,305		2,011		754		311		7,381		13,132		5,556		2,181		317		21,186
Provision (benefit) for credit losses	450		(43)		(74)		(2)		331		7,096		1,693		1,209		2		10,000
Non-interest expense	2,003		1,011		424		110		3,548		6,180		3,038		1,261		568		11,047
Income (loss) from continuing operations before income taxes	1,852		1,043		404		203		3,502		(144)		825		(289)		(253)		139
Income tax provision (benefit)	438		247		95		316		1,096		(34)		195		(69)		(102)		(10)
Income (loss) from continuing operations, net of tax	$	1,414	$	796	$	309	$	(113)	$	2,406	$	(110)	$	630	$	(220)	$	(151)	$	149

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business


																2021 Q3 vs.				Nine Months Ended September 30,
	2021			2021			2021			2020			2020			2021		2020								2021 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2021			2020			2020
Credit Card
Earnings:
Net interest income	$	3,620		$	3,217		$	3,372		$	3,413		$	3,292		13%		10%		$	10,209		$	10,363		(1)%
Non-interest income	1,263			1,253			1,029			1,054			1,013			1		25		3,545			2,769			28
Total net revenue	4,883			4,470			4,401			4,467			4,305			9		13		13,754			13,132			5
Provision (benefit) for credit losses	(198)			(635)			(492)			231			450			(69)		**		(1,325)			7,096			**
Non-interest expense	2,424			2,263			2,135			2,311			2,003			7		21		6,822			6,180			10
Income (loss) from continuing operations before income taxes	2,657			2,842			2,758			1,925			1,852			(7)		43		8,257			(144)			**
Income tax provision (benefit)	627			672			653			454			438			(7)		43		1,952			(34)			**
Income (loss) from continuing operations, net of tax	$	2,030		$	2,170		$	2,105		$	1,471		$	1,414		(6)		44		$	6,305		$	(110)		**
Selected performance metrics:
Period-end loans held for investment(2)(3)	$	105,030		$	101,017		$	99,127		$	106,956		$	103,641		4		1		$	105,030		$	103,641		1
Average loans held for investment	102,046			99,674			100,534			103,561			105,367			2		(3)		100,757			112,272			(10)
Average yield on loans outstanding(9)	14.88		%	14.04		%	14.49		%	14.24		%	13.83		%	84	bps	105	bps	14.47		%	14.03		%	44	bps
Total net revenue margin(10)	18.33			17.59			17.17			16.92			16.34			74		199		17.70			15.59			211
Net charge-off rate	1.43			2.29			2.52			2.63			3.58			(86)		(215)		2.08			4.26			(218)
30+ day performing delinquency rate	2.00			1.75			2.26			2.44			2.20			25		(20)		2.00			2.20			(20)
30+ day delinquency rate	2.00			1.75			2.27			2.45			2.21			25		(21)		2.00			2.21			(21)
Nonperforming loan rate(5)	0.01			0.01			0.01			0.02			0.02			—		(1)		0.01			0.02			(1)
Purchase volume(11)	$	136,614		$	132,676		$	108,333		$	117,141		$	107,102		3%		28%		$	377,623		$	297,171		27%


																2021 Q3 vs.				Nine Months Ended September 30,
	2021			2021			2021			2020			2020			2021		2020								2021 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2021			2020			2020
Domestic Card
Earnings:
Net interest income	$	3,319		$	2,944		$	3,095		$	3,129		$	2,995		13%		11%		$	9,358		$	9,470		(1)%
Non-interest income	1,200			1,183			959			994			952			1		26		3,342			2,589			29
Total net revenue	4,519			4,127			4,054			4,123			3,947			9		14		12,700			12,059			5
Provision (benefit) for credit losses	(200)			(561)			(491)			231			378			(64)		**		(1,252)			6,748			**
Non-interest expense	2,191			2,034			1,923			2,063			1,802			8		22		6,148			5,562			11
Income (loss) from continuing operations before income taxes	2,528			2,654			2,622			1,829			1,767			(5)		43		7,804			(251)			**
Income tax provision (benefit)	597			626			619			433			419			(5)		42		1,842			(59)			**
Income (loss) from continuing operations, net of tax	$	1,931		$	2,028		$	2,003		$	1,396		$	1,348		(5)		43		$	5,962		$	(192)		**
Selected performance metrics:
Period-end loans held for investment(2)	$	99,258		$	95,309		$	91,099		$	98,504		$	95,541		4		4		$	99,258		$	95,541		4
Average loans held for investment	96,309			91,535			92,594			95,453			97,306			5		(1)		93,493			103,980			(10)
Average yield on loans outstanding(9)	14.80		%	13.91		%	14.34		%	14.07		%	13.57		%	89	bps	123	bps	14.36		%	13.82		%	54	bps
Total net revenue margin(10)	18.40			17.66			17.15			16.91			16.22			74		218		17.74			15.46			228
Net charge-off rate	1.36			2.28			2.54			2.69			3.64			(92)		(228)		2.05			4.31			(226)
30+ day performing delinquency rate	1.93			1.68			2.24			2.42			2.21			25		(28)		1.93			2.21			(28)
Purchase volume(11)	$	126,057		$	122,456		$	99,960		$	107,572		$	98,107		3%		28%		$	348,472		$	273,215		28%
Refreshed FICO scores:(12)
Greater than 660	71		%	72		%	70		%	69		%	69		%	(1)		2		71		%	69		%	2
660 or below	29			28			30			31			31			1		(2)		29			31			(2)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business


																2021 Q3 vs.				Nine Months Ended September 30,
	2021			2021			2021			2020			2020			2021		2020								2021 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2021			2020			2020
Consumer Banking
Earnings:
Net interest income	$	2,159		$	2,101		$	2,030		$	2,012		$	1,904		3%		13%		$	6,290		$	5,226		20%
Non-interest income	127			144			141			136			107			(12)		19		412			330			25
Total net revenue	2,286			2,245			2,171			2,148			2,011			2		14		6,702			5,556			21
Provision (benefit) for credit losses	(91)			(306)			(126)			60			(43)			(70)		112		(523)			1,693			**
Non-interest expense	1,186			1,123			1,117			1,121			1,011			6		17		3,426			3,038			13
Income from continuing operations before income taxes	1,191			1,428			1,180			967			1,043			(17)		14		3,799			825			**
Income tax provision	282			337			278			230			247			(16)		14		897			195			**
Income from continuing operations, net of tax	$	909		$	1,091		$	902		$	737		$	796		(17)		14		$	2,902		$	630		**
Selected performance metrics:
Period-end loans held for investment	$	77,112		$	74,759		$	70,202		$	68,888		$	68,688		3		12		$	77,112		$	68,688		12
Average loans held for investment	75,996			72,705			69,234			68,808			67,822			5		12		72,669			65,457			11
Average yield on loans held for investment(9)	7.78		%	7.99		%	8.16		%	8.28		%	8.36		%	(21)	bps	(58)	bps	7.97		%	8.41		%	(44)	bps
Auto loan originations	$	11,570		$	12,959		$	8,833		$	7,371		$	8,979		(11)%		29%		$	33,362		$	24,910		34%
Period-end deposits	252,387			251,155			254,001			249,815			249,684			—		1		252,387			249,684			1
Average deposits	251,307			252,488			249,499			249,419			248,418			—		1		251,105			231,988			8
Average deposits interest rate	0.30		%	0.31		%	0.36		%	0.47		%	0.66		%	(1)	bps	(36)	bps	0.32		%	0.86		%	(54)	bps
Net charge-off (recovery) rate	0.27			(0.06)			0.52			0.53			0.28			33		(1)		0.24			0.99			(75)
30+ day performing delinquency rate	3.58			3.16			3.03			4.62			3.62			42		(4)		3.58			3.62			(4)
30+ day delinquency rate	3.88			3.40			3.25			5.00			3.90			48		(2)		3.88			3.90			(2)
Nonperforming loan rate(5)	0.42			0.35			0.33			0.47			0.38			7		4		0.42			0.38			4
Nonperforming asset rate(6)	0.47			0.40			0.39			0.54			0.43			7		4		0.47			0.43			4
Auto—At origination FICO scores:(13)
Greater than 660	49		%	48		%	47		%	46		%	46		%	1%		3%		49		%	46		%	3%
621 - 660	20			20			20			20			20			—		—		20			20			—
620 or below	31			32			33			34			34			(1)		(3)		31			34			(3)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business


																2021 Q3 vs.				Nine Months Ended September 30,
	2021			2021			2021			2020			2020			2021		2020								2021 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2021			2020			2020
Commercial Banking
Earnings:
Net interest income	$	578		$	460		$	520		$	522		$	517		26%		12%		$	1,558		$	1,526		2%
Non-interest income	306			257			240			268			237			19		29		803			655			23
Total net revenue(8)	884			717			760			790			754			23		17		2,361			2,181			8
Provision (benefit) for credit losses	(53)			(219)			(203)			(28)			(74)			(76)		(28)		(475)			1,209			**
Non-interest expense	459			417			419			445			424			10		8		1,295			1,261			3
Income (loss) from continuing operations before income taxes	478			519			544			373			404			(8)		18		1,541			(289)			**
Income tax provision (benefit)	113			123			128			88			95			(8)		19		364			(69)			**
Income (loss) from continuing operations, net of tax	$	365		$	396		$	416		$	285		$	309		(8)		18		$	1,177		$	(220)		**
Selected performance metrics:
Period-end loans held for investment(4)	$	79,248		$	73,821		$	73,802		$	75,780		$	75,894		7		4		$	79,248		$	75,894		4
Average loans held for investment	75,059			74,084			74,169			75,320			76,322			1		(2)		74,441			77,503			(4)
Average yield on loans held for investment(8)(9)	2.77		%	2.72		%	2.76		%	2.83		%	2.82		%	5	bps	(5)	bps	2.75		%	3.23		%	(48)	bps
Period-end deposits	$	43,347		$	42,973		$	41,552		$	39,590		$	36,783		1%		18%		$	43,347		$	36,783		18%
Average deposits	42,729			42,311			40,107			38,676			36,278			1		18		41,725			34,391			21
Average deposits interest rate	0.15		%	0.14		%	0.18		%	0.23		%	0.25		%	1	bps	(10)	bps	0.15		%	0.47		%	(32)	bps
Net charge-off (recovery) rate	0.05			(0.11)			0.09			0.45			0.43			16		(38)		0.01			0.50			(49)
Nonperforming loan rate(5)	0.76			1.03			0.92			0.86			1.01			(27)		(25)		0.76			1.01			(25)
Nonperforming asset rate(6)	0.76			1.03			0.92			0.86			1.01			(27)		(25)		0.76			1.01			(25)
Risk category:(14)
Noncriticized	$	73,218		$	67,481		$	66,299		$	67,964		$	68,533		9%		7%		$	73,218		$	68,533		7%
Criticized performing	5,429			5,581			6,821			7,166			6,593			(3)		(18)		5,429			6,593			(18)
Criticized nonperforming	601			759			682			650			768			(21)		(22)		601			768			(22)
Total commercial banking loans	$	79,248		$	73,821		$	73,802		$	75,780		$	75,894		7		4		$	79,248		$	75,894		4
Risk category as a percentage of period-end loans held for investment:(14)
Noncriticized	92.3		%	91.4		%	89.9		%	89.6		%	90.3		%	90	bps	200	bps	92.3		%	90.3		%	200	bps
Criticized performing	6.9			7.6			9.2			9.5			8.7			(70)		(180)		6.9			8.7			(180)
Criticized nonperforming	0.8			1.0			0.9			0.9			1.0			(20)		(20)		0.8			1.0			(20)
Total commercial banking loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%					100.0		%	100.0		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total


											2021 Q3 vs.				Nine Months Ended September 30,
	2021		2021		2021		2020		2020		2021		2020						2021 vs.
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2021		2020		2020
Other
Earnings:
Net interest income (loss)	$	(201)	$	(35)	$	(100)	$	(74)	$	(158)	**		27	%	$	(336)	$	(75)	**
Non-interest income (loss)	(22)		(23)		(119)		6		469		(4)	%	**		(164)		392		**
Total net revenue (loss)(8)	(223)		(58)		(219)		(68)		311		**		**		(500)		317		**
Provision (benefit) for credit losses	—		—		(2)		1		(2)		—		**		(2)		2		**
Non-interest expense(15)	117		163		69		132		110		(28)		6		349		568		(39)	%
Income (loss) from continuing operations before income taxes	(340)		(221)		(286)		(201)		203		54		**		(847)		(253)		**
Income tax provision (benefit)	(140)		(101)		(190)		(276)		316		39		**		(431)		(102)		**
Income (loss) from continuing operations, net of tax	$	(200)	$	(120)	$	(96)	$	75	$	(113)	67		77		$	(416)	$	(151)	175
Selected performance metrics:
Period-end deposits	$	10,204	$	12,180	$	14,775	$	16,037	$	19,258	(16)		(47)		$	10,204	$	19,258	(47)
Average deposits	10,999		13,418		15,450		16,418		20,820		(18)		(47)		13,272		19,863		(33)
Total
Earnings:
Net interest income	$	6,156	$	5,743	$	5,822	$	5,873	$	5,555	7	%	11	%	$	17,721	$	17,040	4	%
Non-interest income	1,674		1,631		1,291		1,464		1,826		3		(8)		4,596		4,146		11
Total net revenue	7,830		7,374		7,113		7,337		7,381		6		6		22,317		21,186		5
Provision (benefit) for credit losses	(342)		(1,160)		(823)		264		331		(71)		**		(2,325)		10,000		**
Non-interest expense	4,186		3,966		3,740		4,009		3,548		6		18		11,892		11,047		8
Income from continuing operations before income taxes	3,986		4,568		4,196		3,064		3,502		(13)		14		12,750		139		**
Income tax provision (benefit)	882		1,031		869		496		1,096		(14)		(20)		2,782		(10)		**
Income from continuing operations, net of tax	$	3,104	$	3,537	$	3,327	$	2,568	$	2,406	(12)		29		$	9,968	$	149	**
Selected performance metrics:
Period-end loans held for investment	$	261,390	$	249,597	$	243,131	$	251,624	$	248,223	5		5		$	261,390	$	248,223	5
Average loans held for investment	253,101		246,463		243,937		247,689		249,511		3		1		247,867		255,232		(3)
Period-end deposits	305,938		306,308		310,328		305,442		305,725		—		—		305,938		305,725		—
Average deposits	305,035		308,217		305,056		304,513		305,516		(1)		—		306,102		286,242		7

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)

(1)Includes a catch-up in amortization expense related to prepayment activity on certain securities that reduced yield by 20 basis points for the three months ended September 30, 2021.

(2)We reclassified $2.1 billion in partnership loans to held for sale as of September 30, 2020.

(3)We reclassified $2.6 billion in international partnership loans to held for sale as of June 30, 2021.

(4)We reclassified $1.5 billion in commercial loans to held for sale as of June 30, 2021.

(5)Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category.

(6)Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.

(7)Primarily represents foreign currency translation adjustments.

(8)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(9)Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing.

(10)Total net revenue margin is calculated based on total net revenue for the period divided by average loans outstanding during the period.

(11)Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.

(12)Percentages represent period-end loans held for investment in each credit score category. Domestic card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.

(13)Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.

(14)Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.

(15)Includes charges incurred as a result of restructuring activities.

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1)


	Basel III Standardized Approach
(Dollars in millions, except as noted)	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
Regulatory Capital Metrics
Common equity excluding AOCI	$	58,705		$	58,969		$	57,607		$	55,299		$	52,839
Adjustments:
AOCI, net of tax(2)	(33)			(5)			(13)			(29)			(122)
Goodwill, net of related deferred tax liabilities	(14,435)			(14,440)			(14,444)			(14,448)			(14,448)
Intangible assets, net of related deferred tax liabilities	(84)			(76)			(81)			(86)			(95)
Other	(15)			(16)			(18)			—			—
Common equity Tier 1 capital	$	44,138		$	44,432		$	43,051		$	40,736		$	38,174
Tier 1 capital	$	50,049		$	50,920		$	47,898		$	45,583		$	43,505
Total capital(3)	57,851			57,932			54,780			52,788			50,955
Risk-weighted assets	318,727			307,334			295,209			297,903			293,852
Adjusted average assets(4)	411,216			411,032			408,596			406,762			409,602
Capital Ratios
Common equity Tier 1 capital(5)	13.8		%	14.5		%	14.6		%	13.7		%	13.0		%
Tier 1 capital(6)	15.7			16.6			16.2			15.3			14.8
Total capital(7)	18.2			18.8			18.6			17.7			17.3
Tier 1 leverage(4)	12.2			12.4			11.7			11.2			10.6
Tangible common equity (“TCE”)(8)	10.4			10.6			10.1			10.0			9.4

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.


	2021						2020					Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)	Q3		Q2		Q1			Q3		Q2			Q1		2021		2020
Adjusted diluted EPS:
Net income (loss) available to common stockholders (GAAP)	$	2,987	$	3,446	$	3,236		$	2,319	$	(1,009)		$	(1,420)	$	9,669	$	(91)
Legal reserve activity, including insurance recoveries	45		55		—			40		265			45		100		350
U.K. Payment Protection Insurance customer refund reserve (“U.K. PPI Reserve”)	—		—		—			(36)		—			—		—		(36)
Cybersecurity Incident expenses, net of insurance	—		—		—			6		11			4		—		21



Adjusted net income (loss) available to common stockholders before income tax impacts (non-GAAP)	3,032		3,501		3,236			2,329		(733)			(1,371)		9,769		244
Income tax impacts	(11)		(13)		—			(12)		(3)			(12)		(24)		(27)

Adjusted net income (loss) available to common stockholders (non-GAAP)	$	3,021	$	3,488	$	3,236		$	2,317	$	(736)		$	(1,383)	$	9,745	$	217

Diluted weighted-average common shares outstanding (in millions) (GAAP)	440.5		452.3		460.1			458.5		456.7			457.6		450.9		457.4

Diluted EPS (GAAP)	$	6.78	$	7.62	$	7.03		$	5.06	$	(2.21)		$	(3.10)	$	21.44	$	(0.20)
Impact of adjustments noted above	0.08		0.09		—			(0.01)		0.60			0.08		0.17		0.67
Adjusted diluted EPS (non-GAAP)	$	6.86	$	7.71	$	7.03		$	5.05	$	(1.61)		$	(3.02)	$	21.61	$	0.47

Adjusted efficiency ratio:
Non-interest expense (GAAP)	$	4,186	$	3,966	$	3,740		$	3,548	$	3,770		$	3,729	$	11,892	$	11,047
Legal reserve activity, including insurance recoveries	(45)		(55)		—			(40)		(265)			(45)		(100)		(350)
Cybersecurity Incident expenses, net of insurance	—		—		—			(6)		(11)			(4)		—		(21)



Adjusted non-interest expense (non-GAAP)	$	4,141	$	3,911	$	3,740		$	3,502	$	3,494		$	3,680	$	11,792	$	10,676

Total net revenue (GAAP)	$	7,830	$	7,374	$	7,113		$	7,381	$	6,556		$	7,249	$	22,317	$	21,186
U.K. PPI Reserve	—		—		—			(36)		—			—		—		(36)

Adjusted net revenue (non-GAAP)	$	7,830	$	7,374	$	7,113		$	7,345	$	6,556		$	7,249	$	22,317	$	21,150

Efficiency ratio (GAAP)	53.46%		53.78%		52.58%			48.07%		57.50%			51.44%		53.29%		52.14%
Impact of adjustments noted above	(57)bps		(74)bps		—bps			(39)bps		(421)bps			(67)bps		(45)bps		(166)bps
Adjusted efficiency ratio (non-GAAP)	52.89%		53.04%		52.58%			47.68%		53.29%			50.77%		52.84%		50.48%


	2021						2020					Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)	Q3		Q2		Q1			Q3		Q2			Q1		2021		2020
Adjusted operating efficiency ratio:
Operating expense (GAAP)	$	3,435	$	3,346	$	3,239		$	3,265	$	3,497		$	3,238	$	10,020	$	10,000
Legal reserve activity, including insurance recoveries	(45)		(55)		—			(40)		(265)			(45)		(100)		(350)
Cybersecurity Incident expenses, net of insurance	—		—		—			(6)		(11)			(4)		—		(21)



Adjusted operating expense (non-GAAP)	$	3,390	$	3,291	$	3,239		$	3,219	$	3,221		$	3,189	$	9,920	$	9,629

Total net revenue (GAAP)	$	7,830	$	7,374	$	7,113		$	7,381	$	6,556		$	7,249	$	22,317	$	21,186
U.K. PPI Reserve	—		—		—			(36)		—			—		—		(36)

Adjusted net revenue (non-GAAP)	$	7,830	$	7,374	$	7,113		$	7,345	$	6,556		$	7,249	$	22,317	$	21,150

Operating efficiency ratio (GAAP)	43.87%		45.38%		45.54%			44.24%		53.34%			44.67%		44.90%		47.20%
Impact of adjustments noted above	(57)bps		(75)bps		—bps			(41)bps		(421)bps			(68)bps		(45)bps		(167)bps
Adjusted operating efficiency ratio (non-GAAP)	43.30%		44.63%		45.54%			43.83%		49.13%			43.99%		44.45%		45.53%

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of TCE, tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. We consider these metrics to be key financial performance measures that management uses in assessing capital adequacy and the level of returns generated. While our non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.


	2021		2021		2021		2020		2020
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3
Tangible Common Equity (Period-End)
Stockholders’ equity	$	63,544	$	64,624	$	61,188	$	60,204	$	58,424
Goodwill and intangible assets(9)	(14,766)		(14,774)		(14,789)		(14,809)		(14,825)
Noncumulative perpetual preferred stock	(5,912)		(6,488)		(4,847)		(4,847)		(5,330)
Tangible common equity	$	42,866	$	43,362	$	41,552	$	40,548	$	38,269
Tangible Common Equity (Average)
Stockholders’ equity	$	64,682	$	62,376	$	60,623	$	59,389	$	57,223
Goodwill and intangible assets(9)	(14,777)		(14,788)		(14,807)		(14,824)		(14,867)
Noncumulative perpetual preferred stock	(6,452)		(5,491)		(4,847)		(5,168)		(5,228)
Tangible common equity	$	43,453	$	42,097	$	40,969	$	39,397	$	37,128
Tangible Assets (Period-End)
Total assets	$	425,377	$	423,420	$	425,175	$	421,602	$	421,883
Goodwill and intangible assets(9)	(14,766)		(14,774)		(14,789)		(14,809)		(14,825)
Tangible assets	$	410,611	$	408,646	$	410,386	$	406,793	$	407,058
Tangible Assets (Average)
Total assets	$	424,506	$	424,099	$	421,808	$	420,011	$	422,854
Goodwill and intangible assets(9)	(14,777)		(14,788)		(14,807)		(14,824)		(14,867)
Tangible assets	$	409,729	$	409,311	$	407,001	$	405,187	$	407,987

__________

(1)Regulatory capital metrics and capital ratios as of September 30, 2021 are preliminary and therefore subject to change.

(2)Excludes certain components of AOCI as permitted under the Tailoring Rules.

(3)Total capital equals the sum of Tier 1 capital and Tier 2 capital.

(4)Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.

(5)Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.

(6)Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.

(7)Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.

(8)TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.

(9)Includes impact of related deferred taxes.