Capital One Financial : Reports Second Quarter 2019 Net Income of $1.6 billion, or $3.24 per share

MCLEAN, Va., July 18, 2019 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the second quarter of 2019 of $1.6 billion, or $3.24 per diluted common share, compared with net income of $1.4 billion, or $2.86 per diluted common share in the first quarter of 2019, and with net income of $1.9 billion, or $3.71 per diluted common share in the second quarter of 2018. Excluding adjusting items, net income for the second quarter of 2019 was $3.37 per diluted common share⁽¹⁾.

"In the second quarter, Capital One continued to post solid results as we invest to grow and to drive our digital transformation," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "As the benefits from our digital transformation continue and increase, we are well positioned to succeed in a rapidly changing marketplace and create long-term shareholder value."

Adjusting items in the second quarter of 2019, which are excluded from diluted earning per sharing (EPS), efficiency ratio and operating efficiency ratio metrics (see Table 15 in our Financial Supplement for additional information):

	Pre-Tax			Diluted EPS
(Dollars in millions, except per share data)	Impact			Impact
Walmart launch and related integration expenses	$	(54)		$	(0.09)
Restructuring charges	(28)			(0.04)
The quarter included one notable item:
	Pre-Tax			Diluted EPS
(Dollars in millions, except per share data)	Impact			Impact
Sale of partnership receivables	$     128			$      0.21

⁽¹⁾ Amounts excluding adjusting items are non-GAAP measures that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to these non-GAAP measures.

All comparisons below are for the second quarter of 2019 compared with the first quarter of 2019 unless otherwise noted.

Second Quarter 2019 Income Statement Summary:

• Total net revenue increased 1 percent to $7.1 billion.
• Total non-interest expense increased 3 percent to $3.8 billion:
  
• 6 percent increase in marketing.
• 3 percent increase in operating expenses.
• Pre-provision earnings decreased 2 percent to $3.3 billion⁽²⁾.
• Provision for credit losses decreased 21 percent to $1.3 billion:
  
• Net charge-offs of $1.5 billion.
• $166 million reserve release.
• Net interest margin of 6.80 percent, decreased 6 basis points.
• Efficiency ratio of 53.05 percent.
  
• Efficiency ratio excluding adjusting items of 51.90 percent⁽¹⁾.
• Operating efficiency ratio of 45.38 percent.
  
• Operating efficiency ratio excluding adjusting items of 44.24 percent⁽¹⁾.

Second Quarter 2019 Balance Sheet Summary:

• Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.3 percent at June 30, 2019.
• Period-end loans held for investment in the quarter increased $4.2 billion, or 2 percent, to $244.5 billion.
• Credit Card period-end loans increased $2.3 billion, or 2 percent, to $112.1 billion.
• Domestic Card period-end loans increased $1.9 billion, or 2 percent, to $103.0 billion.
• Consumer Banking period-end loans increased $1.1 billion, or 2 percent, to $60.3 billion.
  
• Auto period-end loans increased $1.1 billion, or 2 percent, to $57.6 billion.
• Commercial Banking period-end loans increased $803 million, or 1 percent, to $72.0 billion.
• Average loans held for investment in the quarter increased $694 million, or less than 1 percent, to $242.7 billion.
• Credit Card average loans decreased $658 million, or 1 percent, to $110.8 billion.
• Domestic Card average loans decreased $737 million, or 1 percent, to $101.9 billion.
• Consumer Banking average loans increased $793 million, or 1 percent, to $59.9 billion.
• Auto average loans increased $836 million, or 1 percent, to $57.1 billion.
• Commercial Banking average loans increased $559 million, or 1 percent, to $72.0 billion.
• Period-end total deposits decreased $572 million, or less than 1 percent, to $254.5 billion, while average deposits increased $2.2 billion, or 1 percent, to $253.6 billion.
• Interest-bearing deposits rate paid increased 7 basis points to 1.51 percent.

⁽¹⁾ Amounts excluding adjusting items are non-GAAP measures that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to these non-GAAP measures.

⁽²⁾ Pre-provision earnings is calculated based on the sum of net interest income and non-interest income, less non-interest expense for the period.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on July 18, 2019 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page (www.capitalone.com). Under "About," choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through August 1, 2019 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2018.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $254.5 billion in deposits and $373.6 billion in total assets as of June 30, 2019. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

###

 

Exhibit 99.2
Capital One Financial Corporation
Financial Supplement(1)(2)
Second Quarter 2019
Table of Contents
Capital One Financial Corporation Consolidated Results			Page
	Table 1:	Financial Summary—Consolidated	1
	Table 2:	Selected Metrics—Consolidated	4
	Table 3:	Consolidated Statements of Income	5
	Table 4:	Consolidated Balance Sheets	7
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	9
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	10
	Table 7:	Loan Information and Performance Statistics	11
	Table 8:	Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity	13
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	14
	Table 10:	Financial & Statistical Summary—Credit Card Business	15
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	17
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	18
	Table 13:	Financial & Statistical Summary—Other and Total	19
Other
	Table 14:	Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)	20
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	21
__________
(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 June 30, 2019 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
																						2019 Q2 vs.						Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)		2019				2019				2018				2018				2018				2019			2018											2019 vs.
		Q2				Q1				Q4				Q3				Q2				Q1			Q2			2019				2018				2018
Income Statement
Net interest income		$	5,746			$	5,791			$	5,820			$	5,786			$	5,551			(1)	%		4	%		$	11,537			$	11,269			2	%
Non-interest income		1,378				1,292				1,193				1,176				1,641				7			(16)			2,670				2,832				(6)
Total net revenue(1)		7,124				7,083				7,013				6,962				7,192				1			(1)			14,207				14,101				1
Provision for credit losses		1,342				1,693				1,638				1,268				1,276				(21)			5			3,035				2,950				3
Non-interest expense:
Marketing		546				517				831				504				425				6			28			1,063				839				27
Operating expense		3,233				3,154				3,301				3,269				2,999				3			8			6,387				6,158				4
Total non-interest expense		3,779				3,671				4,132				3,773				3,424				3			10			7,450				6,997				6
Income from continuing operations before income taxes		2,003				1,719				1,243				1,921				2,492				17			(20)			3,722				4,154				(10)
Income tax provision (benefit)		387				309				(21)				420				575				25			(33)			696				894				(22)
Income from continuing operations, net of tax		1,616				1,410				1,264				1,501				1,917				15			(16)			3,026				3,260				(7)
Income (loss) from discontinued operations, net of tax		9				2				(3)				1				(11)				**			**			11				(8)				**
Net income		1,625				1,412				1,261				1,502				1,906				15			(15)			3,037				3,252				(7)
Dividends and undistributed earnings allocated to participating securities(2)		(12)				(12)				(9)				(9)				(12)				—			—			(24)				(23)				4
Preferred stock dividends		(80)				(52)				(80)				(53)				(80)				54			—			(132)				(132)				—
Net income available to common stockholders		$	1,533			$	1,348			$	1,172			$	1,440			$	1,814			14			(15)			$	2,881			$	3,097			(7)
Common Share Statistics
Basic earnings per common share:(2)
Net income from continuing operations		$	3.24			$	2.87			$	2.50			$	3.01			$	3.76			13	%		(14)	%		$	6.11			$	6.39			(4)	%
Income (loss) from discontinued operations		0.02				—				(0.01)				—				(0.02)				**			**			0.02				(0.02)				**
Net income per basic common share		$	3.26			$	2.87			$	2.49			$	3.01			$	3.74			14			(13)			$	6.13			$	6.37			(4)
Diluted earnings per common share:(2)
Net income from continuing operations		$	3.22			$	2.86			$	2.49			$	2.99			$	3.73			13			(14)			$	6.08			$	6.35			(4)
Income (loss) from discontinued operations		0.02				—				(0.01)				—				(0.02)				**			**			0.02				(0.02)				**
Net income per diluted common share		$	3.24			$	2.86			$	2.48			$	2.99			$	3.71			13			(13)			$	6.10			$	6.33			(4)
Weighted-average common shares outstanding (in millions):
Basic		470.8				469.4				470.0				477.8				485.1				—			(3)			470.1				485.9				(3)
Diluted		473.0				471.6				472.7				480.9				488.3				—			(3)			472.3				489.6				(4)
Common shares outstanding (period-end, in millions)		470.3				469.6				467.7				473.7				478.4				—			(2)			470.3				478.4				(2)
Dividends declared and paid per common share		$	0.40			$	0.40			$	0.40			$	0.40			$	0.40			—			—			$	0.80			$	0.80			—
Tangible book value per common share (period-end)(3)		77.65				72.86				69.20				66.15				63.86				7			22			77.65				63.86				22
																						2019 Q2 vs.						Six Months Ended June 30,
(Dollars in millions)		2019				2019				2018				2018				2018				2019			2018											2019 vs.
		Q2				Q1				Q4				Q3				Q2				Q1			Q2			2019				2018				2018
Balance Sheet (Period-End)
Loans held for investment		$	244,460			$	240,273			$	245,899			$	238,761			$	236,124			2	%		4	%		$	244,460			$	236,124			4	%
Interest-earning assets		339,160				340,071				341,293				331,293				332,167				—			2			339,160				332,167				2
Total assets		373,619				373,191				372,538				362,909				363,989				—			3			373,619				363,989				3
Interest-bearing deposits		231,161				230,199				226,281				222,356				222,605				—			4			231,161				222,605				4
Total deposits		254,535				255,107				249,764				247,195				248,225				—			3			254,535				248,225				3
Borrowings		49,233				50,358				58,905				52,205				53,310				(2)			(8)			49,233				53,310				(8)
Common equity		51,406				49,120				47,307				46,277				45,566				5			13			51,406				45,566				13
Total stockholders' equity		55,767				53,481				51,668				50,638				49,926				4			12			55,767				49,926				12
Balance Sheet (Average Balances)
Loans held for investment		$	242,653			$	241,959			$	241,371			$	236,766			$	240,758			—			1	%		$	242,307			$	245,218			(1)	%
Interest-earning assets		338,026				337,793				334,714				330,272				333,495				—			1			337,913				331,850				2
Total assets		371,095				370,394				365,243				360,937				363,929				—			2			370,746				362,988				2
Interest-bearing deposits		230,452				227,572				222,827				221,431				223,079				1	%		3			229,020				221,384				3
Total deposits		253,634				251,410				247,663				246,720				248,790				1			2			252,528				247,040				2
Borrowings		49,982				53,055				53,994				51,684				52,333				(6)			(4)			51,510				53,454				(4)
Common equity		50,209				48,359				46,753				46,407				45,466				4			10			49,289				45,070				9
Total stockholders' equity		54,570				52,720				51,114				50,768				49,827				4			10			53,650				49,431				9

               

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Selected Metrics—Consolidated
																						2019 Q2 vs.						Six Months Ended June 30,
(Dollars in millions, except as noted)		2019				2019				2018				2018				2018				2019			2018											2019 vs.
		Q2				Q1				Q4				Q3				Q2				Q1			Q2			2019				2018				2018
Performance Metrics
Net interest income growth (period over period)		(1)		%		—				1		%		4		%		(3)		%		**			**			2		%		3		%		**
Non-interest income growth (period over period)		7				8		%		1				(28)				38				**			**			(6)				24				**
Total net revenue growth (period over period)		1				1				1				(3)				4				**			**			1				7				**
Total net revenue margin(4)		8.43				8.39				8.38				8.43				8.63				4	bps		(20)	bps		8.41				8.50				(9)	bps
Net interest margin(5)		6.80				6.86				6.96				7.01				6.66				(6)			14			6.83				6.79				4
Return on average assets		1.74				1.52				1.38				1.66				2.11				22			(37)			1.63				1.80				(17)
Return on average tangible assets(6)		1.82				1.59				1.44				1.74				2.20				23			(38)			1.70				1.87				(17)
Return on average common equity(7)		12.14				11.13				10.05				12.40				16.06				101			(392)			11.65				13.78				(213)
Return on average tangible common equity(8)		17.26				16.11				14.78				18.32				23.99				115			(673)			16.70				20.70				(400)
Non-interest expense as a percentage of average loans held for investment		6.23				6.07				6.85				6.37				5.69				16			54			6.15				5.71				44
Efficiency ratio(9)		53.05				51.83				58.92				54.19				47.61				122			544			52.44				49.62				282
Operating efficiency ratio(10)		45.38				44.53				47.07				46.95				41.70				85			368			44.96				43.67				129
Effective income tax rate for continuing operations		19.3				18.0				(1.7)				21.9				23.1				130			(380)			18.7				21.5				(280)
Employees (in thousands), period-end		50.7				48.8				47.6				47.6				47.8				4	%		6	%		50.7				47.8				6	%
Credit Quality Metrics
Allowance for loan and lease losses		$	7,133			$	7,313			$	7,220			$	7,219			$	7,368			(2)	%		(3)	%		$	7,133			$	7,368			(3)	%
Allowance as a percentage of loans held for investment		2.92		%		3.04		%		2.94		%		3.02		%		3.12		%		(12)	bps		(20)	bps		2.92		%		3.12		%		(20)	bps
Net charge-offs		$	1,508			$	1,599			$	1,610			$	1,425			$	1,459			(6)	%		3	%		$	3,107			$	3,077			1	%
Net charge-off rate(11)		2.48		%		2.64		%		2.67		%		2.41		%		2.42		%		(16)	bps		6	bps		2.56		%		2.51		%		5	bps
30+ day performing delinquency rate		3.15				3.23				3.62				3.28				2.88				(8)			27			3.15				2.88				27
30+ day delinquency rate		3.35				3.40				3.84				3.48				3.05				(5)			30			3.35				3.05				30
Capital Ratios(12)
Common equity Tier 1 capital		12.3		%		11.9		%		11.2		%		11.2		%		11.1		%		40	bps		120	bps		12.3		%		11.1		%		120	bps
Tier 1 capital		13.8				13.4				12.7				12.8				12.6				40			120			13.8				12.6				120
Total capital		16.2				15.8				15.1				15.2				15.1				40			110			16.2				15.1				110
Tier 1 leverage		11.4				11.0				10.7				10.6				10.3				40			110			11.4				10.3				110
Tangible common equity ("TCE")(13)		10.2				9.6				9.1				9.0				8.8				60			140			10.2				8.8				140

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3: Consolidated Statements of Income
																						2019 Q2 vs.						Six Months Ended June 30,
		2019				2019				2018				2018				2018				2019			2018											2019 vs.
(Dollars in millions, except per share data and as noted)		Q2				Q1				Q4				Q3				Q2				Q1			Q2			2019				2018				2018
Interest income:
Loans, including loans held for sale		$	6,383			$	6,368			$	6,358			$	6,247			$	5,989			—			7	%		$	12,751			$	12,123			5	%
Investment securities		629				655				627				593				539				(4)	%		17			1,284				991				30
Other		64				69				63				55				68				(7)			(6)			133				119				12
Total interest income		7,076				7,092				7,048				6,895				6,596				—			7			14,168				13,233				7
Interest expense:
Deposits		870				817				756				681				622				6			40			1,687				1,161				45
Securitized debt obligations		139				143				138				127				124				(3)			12			282				231				22
Senior and subordinated notes		310				314				297				288				289				(1)			7			624				540				16
Other borrowings		11				27				37				13				10				(59)			10			38				32				19
Total interest expense		1,330				1,301				1,228				1,109				1,045				2			27			2,631				1,964				34
Net interest income		5,746				5,791				5,820				5,786				5,551				(1)			4			11,537				11,269				2
Provision for credit losses		1,342				1,693				1,638				1,268				1,276				(21)			5			3,035				2,950				3
Net interest income after provision for credit losses		4,404				4,098				4,182				4,518				4,275				7			3			8,502				8,319				2
Non-interest income:
Interchange fees, net		820				758				743				714				723				8			13			1,578				1,366				16
Service charges and other customer-related fees		352				353				352				410				391				—			(10)			705				823				(14)
Net securities gains (losses)		15				24				(20)				(196)				(1)				(38)			**			39				7				**
Other		191				157				118				248				528				22			(64)			348				636				(45)
Total non-interest income		1,378				1,292				1,193				1,176				1,641				7			(16)			2,670				2,832				(6)
Non-interest expense:
Salaries and associate benefits		1,558				1,573				1,345				1,432				1,430				(1)			9			3,131				2,950				6
Occupancy and equipment		521				493				610				515				503				6			4			1,014				993				2
Marketing		546				517				831				504				425				6			28			1,063				839				27
Professional services		314				291				426				275				234				8			34			605				444				36
Communications and data processing		329				303				326				311				317				9			4			632				623				1
Amortization of intangibles		29				30				43				44				43				(3)			(33)			59				87				(32)
Other		482				464				551				692				472				4			2			946				1,061				(11)
Total non-interest expense		3,779				3,671				4,132				3,773				3,424				3			10			7,450				6,997				6
Income from continuing operations before income taxes		2,003				1,719				1,243				1,921				2,492				17			(20)			3,722				4,154				(10)
Income tax provision (benefit)		387				309				(21)				420				575				25			(33)			696				894				(22)
Income from continuing operations, net of tax		1,616				1,410				1,264				1,501				1,917				15			(16)			3,026				3,260				(7)
Income (loss) from discontinued operations, net of tax		9				2				(3)				1				(11)				**			**			11				(8)				**
Net income		1,625				1,412				1,261				1,502				1,906				15			(15)			3,037				3,252				(7)
Dividends and undistributed earnings allocated to participating securities(2)		(12)				(12)				(9)				(9)				(12)				—			—			(24)				(23)				4
Preferred stock dividends		(80)				(52)				(80)				(53)				(80)				54			—			(132)				(132)				—
Net income available to common stockholders		$	1,533			$	1,348			$	1,172			$	1,440			$	1,814			14			(15)			$	2,881			$	3,097			(7)
																						2019 Q2 vs.						Six Months Ended June 30,
		2019				2019				2018				2018				2018				2019			2018											2019 vs.
(Dollars in millions, except per share data and as noted)		Q2				Q1				Q4				Q3				Q2				Q1			Q2			2019				2018				2018
Basic earnings per common share:(2)
Net income from continuing operations		$	3.24			$	2.87			$	2.50			$	3.01			$	3.76			13	%		(14)	%		$	6.11			$	6.39			(4)	%
Income (loss) from discontinued operations		0.02				—				(0.01)				—				(0.02)				**			**			0.02				(0.02)				**
Net income per basic common share		$	3.26			$	2.87			$	2.49			$	3.01			$	3.74			14			(13)			$	6.13			$	6.37			(4)
Diluted earnings per common share:(2)
Net income from continuing operations		$	3.22			$	2.86			$	2.49			$	2.99			$	3.73			13			(14)			$	6.08			$	6.35			(4)
Income (loss) from discontinued operations		0.02				—				(0.01)				—				(0.02)				**			**			0.02				(0.02)				**
Net income per diluted common share		$	3.24			$	2.86			$	2.48			$	2.99			$	3.71			13			(13)			$	6.10			$	6.33			(4)
Weighted-average common shares outstanding (in millions):
Basic common shares		470.8				469.4				470.0				477.8				485.1				—			(3)			470.1				485.9				(3)
Diluted common shares		473.0				471.6				472.7				480.9				488.3				—			(3)			472.3				489.6				(4)

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets
																						2019 Q2 vs.
		2019				2019				2018				2018				2018				2019			2018
(Dollars in millions)		Q2				Q1				Q4				Q3				Q2				Q1			Q2
Assets:
Cash and cash equivalents:
Cash and due from banks		$	5,184			$	4,572			$	4,768			$	4,547			$	4,499			13	%		15	%
Interest-bearing deposits and other short-term investments		9,927				12,897				8,418				6,335				7,774				(23)			28
Total cash and cash equivalents		15,111				17,469				13,186				10,882				12,273				(13)			23
Restricted cash for securitization investors		710				1,969				303				746				1,023				(64)			(31)
Investment securities:
Securities available for sale		45,658				45,888				46,150				47,384				50,691				(1)			(10)
Securities held to maturity		35,475				36,503				36,771				34,631				33,464				(3)			6
Total investment securities		81,133				82,391				82,921				82,015				84,155				(2)			(4)
Loans held for investment:
Unsecuritized loans held for investment		211,556				208,591				211,702				204,796				201,222				1			5
Loans held in consolidated trusts		32,904				31,682				34,197				33,965				34,902				4			(6)
Total loans held for investment		244,460				240,273				245,899				238,761				236,124				2			4
Allowance for loan and lease losses		(7,133)				(7,313)				(7,220)				(7,219)				(7,368)				(2)			(3)
Net loans held for investment		237,327				232,960				238,679				231,542				228,756				2			4
Loans held for sale, at lower of cost or fair value		1,829				905				1,192				1,402				1,480				102			24
Premises and equipment, net		4,243				4,205				4,191				4,149				4,095				1			4
Interest receivable		1,544				1,615				1,614				1,518				1,493				(4)			3
Goodwill		14,545				14,546				14,544				14,513				14,531				—			—
Other assets		17,177				17,131				15,908				16,142				16,183				—			6
Total assets		$	373,619			$	373,191			$	372,538			$	362,909			$	363,989			—			3
																						2019 Q2 vs.
		2019				2019				2018				2018				2018				2019			2018
(Dollars in millions)		Q2				Q1				Q4				Q3				Q2				Q1			Q2
Liabilities:
Interest payable		$	437			$	382			$	458			$	391			$	450			14	%		(3)	%
Deposits:
Non-interest-bearing deposits		23,374				24,908				23,483				24,839				25,620				(6)			(9)
Interest-bearing deposits		231,161				230,199				226,281				222,356				222,605				—			4
Total deposits		254,535				255,107				249,764				247,195				248,225				—			3
Securitized debt obligations		16,959				19,273				18,307				18,649				19,649				(12)			(14)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase		359				335				352				384				553				7			(35)
Senior and subordinated notes		31,822				30,645				30,826				31,291				32,920				4			(3)
Other borrowings		93				105				9,420				1,881				188				(11)			(51)
Total other debt		32,274				31,085				40,598				33,556				33,661				4			(4)
Other liabilities		13,647				13,863				11,743				12,480				12,078				(2)			13
Total liabilities		317,852				319,710				320,870				312,271				314,063				(1)			1
Stockholders' equity:
Preferred stock		0				0				0				0				0				—			—
Common stock		7				7				7				7				7				—			—
Additional paid-in capital, net		32,262				32,160				32,040				31,978				31,868				—			1
Retained earnings		38,386				37,030				35,875				34,883				33,626				4			14
Accumulated other comprehensive income (loss)		170				(660)				(1,263)				(1,877)				(1,793)				**			**
Treasury stock, at cost		(15,058)				(15,056)				(14,991)				(14,353)				(13,782)				—			9
Total stockholders' equity		55,767				53,481				51,668				50,638				49,926				4			12
Total liabilities and stockholders' equity		$	373,619			$	373,191			$	372,538			$	362,909			$	363,989			—			3

 

 

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 $318 million in Q2 2019, $376 million in Q1 2019, $391 million in Q4 2018, $305 million in Q3 2018 and $309 million in Q2 2018 for the estimated uncollectible amount of billed finance charges and fees and related losses.
(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)	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.
(4)	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.
(5)	Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(6)	Return on average tangible assets is a non-GAAP measure calculated based on annualized income 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.
(7)	Return on average common equity is calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.
(8)	Return on average tangible common equity ("ROTCE") is a non-GAAP measure calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Our calculation of ROTCE 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.
(9)	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.
(10)	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.
(11)	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.
(12)	Capital ratios as of the end of Q2 2019 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.
(13)	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
		2019 Q2											2019 Q1											2018 Q2
		Average Balance				Interest Income/ Expense				Yield/Rate			Average Balance				Interest Income/ Expense				Yield/Rate			Average Balance				Interest Income/ Expense				Yield/Rate
(Dollars in millions, except as noted)
Interest-earning assets:
Loans, including loans held for sale		$	243,831			$	6,383			10.47	%		$	242,929			$	6,368			10.49	%		$	242,043			$	5,989			9.90	%
Investment securities		82,383				629				3.05			83,679				655				3.13			79,829				539				2.70
Cash equivalents and other		11,812				64				2.16			11,185				69				2.47			11,623				68				2.34
Total interest-earning assets		$	338,026			$	7,076			8.37			$	337,793			$	7,092			8.40			$	333,495			$	6,596			7.91
Interest-bearing liabilities:
Interest-bearing deposits		$	230,452			$	870			1.51			$	227,572			$	817			1.44			$	223,079			$	622			1.12
Securitized debt obligations		18,262				139				3.04			18,747				143				3.05			19,147				124				2.59
Senior and subordinated notes		30,630				310				4.05			30,836				314				4.07			32,250				289				3.58
Other borrowings and liabilities		2,322				11				1.91			4,684				27				2.34			4,132				10				0.97
Total interest-bearing liabilities		$	281,666			$	1,330			1.89			$	281,839			$	1,301			1.85			$	278,608			$	1,045			1.50
Net interest income/spread						$	5,746			6.48							$	5,791			6.55							$	5,551			6.41
Impact of non-interest-bearing funding										0.32											0.31											0.25
Net interest margin										6.80	%										6.86	%										6.66	%
													Six Months Ended June 30,
													2019											2018
													Average Balance				Interest Income/ Expense				Yield/Rate			Average Balance				Interest Income/ Expense				Yield/Rate
(Dollars in millions, except as noted)
Interest-earning assets:
Loans, including loans held for sale													$	243,383			$	12,751			10.48	%		$	246,451			$	12,123			9.84	%
Investment securities													83,027				1,284				3.09			74,731				991				2.65
Cash equivalents and other													11,503				133				2.31			10,668				119				2.23
Total interest-earning assets													$	337,913			$	14,168			8.39			$	331,850			$	13,233			7.98
Interest-bearing liabilities:
Interest-bearing deposits													$	229,020			$	1,687			1.47			$	221,384			$	1,161			1.05
Securitized debt obligations													18,503				282				3.05			19,421				231				2.38
Senior and subordinated notes													30,732				624				4.06			31,345				540				3.45
Other borrowings and liabilities													3,497				38				2.20			5,483				32				1.17
Total interest-bearing liabilities													$	281,752			$	2,631			1.87			$	277,633			$	1,964			1.41
Net interest income/spread																	$	11,537			6.52							$	11,269			6.57
Impact of non-interest-bearing funding																					0.31											0.22
Net interest margin																					6.83	%										6.79	%

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics
																						2019 Q2 vs.						Six Months Ended June 30,
(Dollars in millions, except as noted)		2019 Q2				2019 Q1				2018 Q4				2018 Q3				2018 Q2				2019 Q1			2018 Q2			2019				2018				2019 vs. 2018
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card		$	102,959			$	101,052			$	107,350			$	101,564			$	100,714			2	%		2	%		$	102,959			$	100,714			2	%
International card businesses		9,182				8,784				9,011				9,121				9,063				5			1			9,182				9,063				1
Total credit card		112,141				109,836				116,361				110,685				109,777				2			2			112,141				109,777				2
Consumer banking:
Auto		57,556				56,444				56,341				56,422				55,781				2			3			57,556				55,781				3
Retail banking		2,771				2,804				2,864				2,907				2,946				(1)			(6)			2,771				2,946				(6)
Total consumer banking		60,327				59,248				59,205				59,329				58,727				2			3			60,327				58,727				3
Commercial banking:
Commercial and multifamily real estate		29,861				28,984				28,899				29,064				28,292				3			6			29,861				28,292				6
Commercial and industrial		42,125				42,197				41,091				39,325				38,948				—			8			42,125				38,948				8
Total commercial lending		71,986				71,181				69,990				68,389				67,240				1			7			71,986				67,240				7
Small-ticket commercial real estate		6				8				343				358				369				(25)			(98)			6				369				(98)
Total commercial banking		71,992				71,189				70,333				68,747				67,609				1			6			71,992				67,609				6
Other loans		—				—				—				—				11				**			**			—				11				**
Total loans held for investment		$	244,460			$	240,273			$	245,899			$	238,761			$	236,124			2			4			$	244,460			$	236,124			4
Loans Held for Investment (Average)
Credit card:
Domestic credit card		$	101,930			$	102,667			$	103,391			$	100,566			$	98,895			(1)	%		3	%		$	102,296			$	99,668			3	%
International card businesses		8,868				8,789				8,958				8,944				8,998				1			(1)			8,829				9,025				(2)
Total credit card		110,798				111,456				112,349				109,510				107,893				(1)			3			111,125				108,693				2
Consumer banking:
Auto		57,070				56,234				56,469				56,297				55,298				1			3			56,654				54,824				3
Home loan(1)		—				—				—				—				8,098				**			**			—				12,635				**
Retail banking		2,788				2,831				2,873				2,923				3,084				(2)			(10)			2,809				3,256				(14)
Total consumer banking		59,858				59,065				59,342				59,220				66,480				1			(10)			59,463				70,715				(16)
Commercial banking:
Commercial and multifamily real estate		29,514				29,034				28,855				28,354				27,302				2			8			29,276				26,924				9
Commercial and industrial		42,476				42,132				40,476				39,318				38,686				1			10			42,304				38,467				10
Total commercial lending		71,990				71,166				69,331				67,672				65,988				1			9			71,580				65,391				9
Small-ticket commercial real estate		7				272				349				364				376				(97)			(98)			139				385				(64)
Total commercial banking		71,997				71,438				69,680				68,036				66,364				1			8			71,719				65,776				9
Other loans		—				—				—				—				21				**			**			—				34				**
Total average loans held for investment		$	242,653			$	241,959			$	241,371			$	236,766			$	240,758			—			1			$	242,307			$	245,218			(1)
																						2019 Q2 vs.						Six Months Ended June 30,
		2019 Q2				2019 Q1				2018 Q4				2018 Q3				2018 Q2				2019 Q1			2018 Q2			2019				2018				2019 vs. 2018
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card(2)			4.86	%			5.04	%			4.64	%			4.35	%			4.72	%		(18)	bps		14	bps			4.95	%			4.99	%		(4)	bps
International card businesses			3.63				3.20				4.22				1.92				4.14			43			(51)				3.41				3.32			9
Total credit card(2)			4.76				4.90				4.61				4.15				4.67			(14)			9				4.83				4.85			(2)
Consumer banking:
Auto			1.09				1.44				1.98				1.73				1.32			(35)			(23)				1.26				1.42			(16)
Retail banking			2.42				2.56				2.56				2.62				2.07			(14)			35				2.49				1.97			52
Total consumer banking			1.15				1.49				2.01				1.77				1.19			(34)			(4)				1.32				1.19			13
Commercial banking:
Commercial and multifamily real estate			—				—				(0.01)				0.04				—			—			—				—				—			—
Commercial and industrial			0.15				0.13				0.17				0.25				(0.07)			2			22				0.14				0.06			8
Total commercial lending			0.09				0.08				0.10				0.16				(0.04)			1			13				0.08				0.04			4
Small-ticket commercial real estate			**				0.23				0.13				0.56				(0.40)			**			**				**				(0.29)			**
Total commercial banking			0.09				0.08				0.10				0.16				(0.04)			1			13				0.08				0.04			4
Total net charge-offs			2.48				2.64				2.67				2.41				2.42			(16)			6				2.56				2.51			5
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card			3.40	%			3.72	%			4.04	%			3.80	%			3.32	%		(32)	bps		8	bps			3.40	%			3.32	%		8	bps
International card businesses			3.40				3.61				3.52				3.55				3.39			(21)			1				3.40				3.39			1
Total credit card			3.40				3.71				4.00				3.78				3.32			(31)			8				3.40				3.32			8
Consumer banking:
Auto			6.10				5.78				6.95				6.27				5.57			32			53				6.10				5.57			53
Retail banking			0.93				0.84				1.01				0.80				0.84			9			9				0.93				0.84			9
Total consumer banking			5.87				5.55				6.67				6.01				5.33			32			54				5.87				5.33			54
Nonperforming Loans and Nonperforming Assets Rates(3)(4)
Credit card:
International card businesses			0.25	%			0.26	%			0.25	%			0.22	%			0.22	%		(1)	bps		3	bps			0.25	%			0.22	%		3	bps
Total credit card			0.02				0.02				0.02				0.02				0.02			—			—				0.02				0.02			—
Consumer banking:
Auto			0.64				0.57				0.80				0.70				0.55			7			9				0.64				0.55			9
Retail banking			1.02				1.10				1.04				1.13				1.15			(8)			(13)				1.02				1.15			(13)
Total consumer banking			0.66				0.59				0.81				0.72				0.58			7			8				0.66				0.58			8
Commercial banking:
Commercial and multifamily real estate			0.14				0.24				0.29				0.13				0.01			(10)			13				0.14				0.01			13
Commercial and industrial			0.74				0.71				0.54				0.55				0.57			3			17				0.74				0.57			17
Total commercial lending			0.49				0.52				0.44				0.37				0.33			(3)			16				0.49				0.33			16
Small-ticket commercial real estate			**				**				1.80				1.65				1.18			**			**				**				1.18			**
Total commercial banking			0.50				0.53				0.44				0.38				0.34			(3)			16				0.50				0.34			16
Total nonperforming loans			0.32				0.31				0.33				0.30				0.25			1			7				0.32				0.25			7
Total nonperforming assets			0.34				0.33				0.35				0.33				0.30			1			4				0.34				0.30			4

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity
		Three Months Ended June 30, 2019
		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 loan and lease losses:
Balance as of March 31, 2019		$	5,141			$	427			$	5,568			$	1,002			$	60			$	1,062			$	683			$	7,313
Charge-offs		(1,580)				(131)				(1,711)				(401)				(22)				(423)				(23)				(2,157)
Recoveries		340				51				391				246				5				251				7				649
Net charge-offs		(1,240)				(80)				(1,320)				(155)				(17)				(172)				(16)				(1,508)
Provision for loan and lease losses		1,024				71				1,095				150				15				165				69				1,329
Allowance build (release) for loan and lease losses		(216)				(9)				(225)				(5)				(2)				(7)				53				(179)
Other changes(5)		—				(1)				(1)				—				—				—				—				(1)
Balance as of June 30, 2019		4,925				417				5,342				997				58				1,055				736				7,133
Reserve for unfunded lending commitments:
Balance as of March 31, 2019		—				—				—				—				4				4				127				131
Provision for losses on unfunded lending commitments		—				—				—				—				—				—				13				13
Balance as of June 30, 2019		—				—				—				—				4				4				140				144
Combined allowance and reserve as of June 30, 2019		$	4,925			$	417			$	5,342			$	997			$	62			$	1,059			$	876			$	7,277
		Six Months Ended June 30, 2019
		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 loan and lease losses:
Balance as of December 31, 2018		$	5,144			$	391			$	5,535			$	990			$	58			$	1,048			$	637			$	7,220
Charge-offs		(3,232)				(261)				(3,493)				(850)				(44)				(894)				(43)				(4,430)
Recoveries		698				111				809				492				9				501				13				1,323
Net charge-offs		(2,534)				(150)				(2,684)				(358)				(35)				(393)				(30)				(3,107)
Provision for loan and lease losses		2,315				169				2,484				365				35				400				129				3,013
Allowance build (release) for loan and lease losses		(219)				19				(200)				7				—				7				99				(94)
Other changes(5)		—				7				7				—				—				—				—				7
Balance as of June 30, 2019		4,925				417				5,342				997				58				1,055				736				7,133
Reserve for unfunded lending commitments:
Balance as of December 31, 2018		—				—				—				—				4				4				118				122
Provision for losses on unfunded lending commitments		—				—				—				—				—				—				22				22
Balance as of June 30, 2019		—				—				—				—				4				4				140				144
Combined allowance and reserve as of June 30, 2019		$	4,925			$	417			$	5,342			$	997			$	62			$	1,059			$	876			$	7,277

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial Summary—Business Segment Results
		Three Months Ended June 30, 2019																				Six Months Ended June 30, 2019
(Dollars in millions)		Credit Card				Consumer Banking				Commercial Banking(6)(7)				Other(6)(7)				Total				Credit Card				Consumer Banking				Commercial Banking(6)(7)				Other(6)(7)				Total
Net interest income (loss)		$	3,531			$	1,709			$	514			$	(8)			$	5,746			$	7,121			$	3,388			$	1,003			$	25			$	11,537
Non-interest income (loss)		1,038				166				200				(26)				1,378				1,988				326				387				(31)				2,670
Total net revenue (loss)		4,569				1,875				714				(34)				7,124				9,109				3,714				1,390				(6)				14,207
Provision for credit losses		1,095				165				82				—				1,342				2,484				400				151				—				3,035
Non-interest expense		2,253				1,002				427				97				3,779				4,424				1,996				844				186				7,450
Income (loss) from continuing operations before income taxes		1,221				708				205				(131)				2,003				2,201				1,318				395				(192)				3,722
Income tax provision (benefit)		283				165				48				(109)				387				512				307				92				(215)				696
Income (loss) from continuing operations, net of tax		$	938			$	543			$	157			$	(22)			$	1,616			$	1,689			$	1,011			$	303			$	23			$	3,026
		Three Months Ended March 31, 2019
(Dollars in millions)		Credit Card				Consumer Banking				Commercial Banking(6)(7)				Other(6)(7)				Total
Net interest income		$	3,590			$	1,679			$	489			$	33			$	5,791
Non-interest income (loss)		950				160				187				(5)				1,292
Total net revenue		4,540				1,839				676				28				7,083
Provision for credit losses		1,389				235				69				—				1,693
Non-interest expense		2,171				994				417				89				3,671
Income (loss) from continuing operations before income taxes		980				610				190				(61)				1,719
Income tax provision (benefit)		229				142				44				(106)				309
Income from continuing operations, net of tax		$	751			$	468			$	146			$	45			$	1,410
		Three Months Ended June 30, 2018																				Six Months Ended June 30, 2018
(Dollars in millions)		Credit Card				Consumer Banking				Commercial Banking(6)(7)				Other(6)(7)				Total				Credit Card				Consumer Banking				Commercial Banking(6)(7)				Other(6)(7)				Total
Net interest income		$	3,396			$	1,609			$	517			$	29			$	5,551			$	6,954			$	3,224			$	1,023			$	68			$	11,269
Non-interest income		884				175				209				373				1,641				1,741				349				396				346				2,832
Total net revenue		4,280				1,784				726				402				7,192				8,695				3,573				1,419				414				14,101
Provision (benefit) for credit losses		1,171				118				34				(47)				1,276				2,627				351				20				(48)				2,950
Non-interest expense		1,904				963				409				148				3,424				3,943				1,963				812				279				6,997
Income from continuing operations before income taxes		1,205				703				283				301				2,492				2,125				1,259				587				183				4,154
Income tax provision (benefit)		282				164				66				63				575				495				294				137				(32)				894
Income from continuing operations, net of tax		$	923			$	539			$	217			$	238			$	1,917			$	1,630			$	965			$	450			$	215			$	3,260

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary—Credit Card Business
																						2019 Q2 vs.						Six Months Ended June 30,
		2019				2019				2018				2018				2018				2019			2018											2019 vs.
(Dollars in millions, except as noted)		Q2				Q1				Q4				Q3				Q2				Q1			Q2			2019				2018				2018
Credit Card
Earnings:
Net interest income		$	3,531			$	3,590			$	3,617			$	3,596			$	3,396			(2)	%		4	%		$	7,121			$	6,954			2	%
Non-interest income		1,038				950				886				893				884				9			17			1,988				1,741				14
Total net revenue		4,569				4,540				4,503				4,489				4,280				1			7			9,109				8,695				5
Provision for credit losses		1,095				1,389				1,326				1,031				1,171				(21)			(6)			2,484				2,627				(5)
Non-interest expense		2,253				2,171				2,496				2,103				1,904				4			18			4,424				3,943				12
Income from continuing operations before income taxes		1,221				980				681				1,355				1,205				25			1			2,201				2,125				4
Income tax provision		283				229				160				315				282				24			—			512				495				3
Income from continuing operations, net of tax		$	938			$	751			$	521			$	1,040			$	923			25			2			$	1,689			$	1,630			4
Selected performance metrics:
Period-end loans held for investment		$	112,141			$	109,836			$	116,361			$	110,685			$	109,777			2			2			$	112,141			$	109,777			2
Average loans held for investment		110,798				111,456				112,349				109,510				107,893				(1)			3			111,125				108,693				2
Average yield on loans held for investment(8)		15.66		%		15.77		%		15.63		%		15.79		%		15.06		%		(11)	bps		60	bps		15.72		%		15.15		%		57	bps
Total net revenue margin(9)		16.50				16.29				16.03				16.40				15.87				21			63			16.39				16.00				39
Net charge-off rate(2)		4.76				4.90				4.61				4.15				4.67				(14)			9			4.83				4.85				(2)
30+ day performing delinquency rate		3.40				3.71				4.00				3.78				3.32				(31)			8			3.40				3.32				8
30+ day delinquency rate		3.42				3.72				4.01				3.80				3.33				(30)			9			3.42				3.33				9
Nonperforming loan rate(3)		0.02				0.02				0.02				0.02				0.02				—			—			0.02				0.02				—
Purchase volume(10)		$	106,903			$	93,197			$	105,696			$	97,469			$	97,392			15	%		10	%		$	200,100			$	183,937			9	%
																						2019 Q2 vs.						Six Months Ended June 30,
		2019				2019				2018				2018				2018				2019			2018											2019 vs.
(Dollars in millions, except as noted)		Q2				Q1				Q4				Q3				Q2				Q1			Q2			2019				2018				2018
Domestic Card
Earnings:
Net interest income		$	3,220			$	3,273			$	3,309			$	3,280			$	3,108			(2)	%		4	%		$	6,493			$	6,337			2	%
Non-interest income		971				873				828				819				818				11			19			1,844				1,592				16
Total net revenue		4,191				4,146				4,137				4,099				3,926				1			7			8,337				7,929				5
Provision for credit losses		1,024				1,291				1,229				950				1,094				(21)			(6)			2,315				2,474				(6)
Non-interest expense		2,034				1,949				2,216				1,890				1,683				4			21			3,983				3,515				13
Income from continuing operations before income taxes		1,133				906				692				1,259				1,149				25			(1)			2,039				1,940				5
Income tax provision		264				211				162				293				268				25			(1)			475				452				5
Income from continuing operations, net of tax		$	869			$	695			$	530			$	966			$	881			25			(1)			$	1,564			$	1,488			5
Selected performance metrics:
Period-end loans held for investment		$	102,959			$	101,052			$	107,350			$	101,564			$	100,714			2			2			$	102,959			$	100,714			2
Average loans held for investment		101,930				102,667				103,391				100,566				98,895				(1)			3			102,296				99,668				3
Average yield on loans held for investment(8)		15.60		%		15.69		%		15.58		%		15.73		%		15.05		%		(9)	bps		55	bps		15.65		%		15.07		%		58	bps
Total net revenue margin(9)		16.45				16.15				16.01				16.30				15.88				30			57			16.30				15.91				39
Net charge-off rate(2)		4.86				5.04				4.64				4.35				4.72				(18)			14			4.95				4.99				(4)
30+ day delinquency rate		3.40				3.72				4.04				3.80				3.32				(32)			8			3.40				3.32				8
Purchase volume(10)		$	98,052			$	85,738			$	96,818			$	89,205			$	88,941			14	%		10	%		$	183,790			$	168,135			9	%
Refreshed FICO scores:(11)
Greater than 660		68		%		66		%		67		%		67		%		68		%		2			—			68		%		68		%		—
660 or below		32				34				33				33				32				(2)			—			32				32				—
Total		100		%		100		%		100		%		100		%		100		%								100		%		100		%

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Financial & Statistical Summary—Consumer Banking Business
																						2019 Q2 vs.						Six Months Ended June 30,
		2019				2019				2018				2018				2018				2019			2018											2019 vs.
(Dollars in millions, except as noted)		Q2				Q1				Q4				Q3				Q2				Q1			Q2			2019				2018				2018
Consumer Banking
Earnings:
Net interest income		$	1,709			$	1,679			$	1,689			$	1,636			$	1,609			2	%		6	%		$	3,388			$	3,224			5	%
Non-interest income		166				160				159				155				175				4			(5)			326				349				(7)
Total net revenue		1,875				1,839				1,848				1,791				1,784				2			5			3,714				3,573				4
Provision for credit losses		165				235				303				184				118				(30)			40			400				351				14
Non-interest expense		1,002				994				1,085				979				963				1			4			1,996				1,963				2
Income from continuing operations before income taxes		708				610				460				628				703				16			1			1,318				1,259				5
Income tax provision		165				142				107				146				164				16			1			307				294				4
Income from continuing operations, net of tax		$	543			$	468			$	353			$	482			$	539			16			1			$	1,011			$	965			5
Selected performance metrics:
Period-end loans held for investment(1)		$	60,327			$	59,248			$	59,205			$	59,329			$	58,727			2			3			$	60,327			$	58,727			3
Average loans held for investment(1)		59,858				59,065				59,342				59,220				66,480				1			(10)			59,463				70,715				(16)
Average yield on loans held for investment(8)		8.36		%		8.15		%		8.14		%		8.03		%		7.32		%		21	bps		104	bps		8.25		%		7.08		%		117	bps
Auto loan originations		$	7,327			$	6,222			$	5,932			$	6,643			$	6,994			18	%		5	%		$	13,549			$	13,701			(1)	%
Period-end deposits		205,220				205,439				198,607				196,635				194,962				—			5			205,220				194,962				5
Average deposits		204,164				201,072				196,348				194,687				193,278				2			6			202,627				190,547				6
Average deposits interest rate		1.26		%		1.18		%		1.10		%		1.00		%		0.88		%		8	bps		38	bps		1.22		%		0.84		%		38	bps
Net charge-off rate		1.15				1.49				2.01				1.77				1.19				(34)			(4)			1.32				1.19				13
30+ day performing delinquency rate		5.87				5.55				6.67				6.01				5.33				32			54			5.87				5.33				54
30+ day delinquency rate		6.41				6.02				7.36				6.61				5.80				39			61			6.41				5.80				61
Nonperforming loan rate(3)		0.66				0.59				0.81				0.72				0.58				7			8			0.66				0.58				8
Nonperforming asset rate(4)		0.75				0.68				0.90				0.82				0.73				7			2			0.75				0.73				2
Auto—At origination FICO scores:(12)
Greater than 660		49		%		49		%		50		%		50		%		50		%		—			(1)	%		49		%		50		%		(1)	%
621 - 660		19				19				19				19				19				—			—			19				19				—
620 or below		32				32				31				31				31				—			1			32				31				1
Total		100		%		100		%		100		%		100		%		100		%								100		%		100		%

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12: Financial & Statistical Summary—Commercial Banking Business
																						2019 Q2 vs.						Six Months Ended June 30,
		2019				2019				2018				2018				2018				2019			2018											2019 vs.
(Dollars in millions, except as noted)		Q2				Q1				Q4				Q3				Q2				Q1			Q2			2019				2018				2018
Commercial Banking
Earnings:
Net interest income		$	514			$	489			$	508			$	513			$	517			5	%		(1)	%		$	1,003			$	1,023			(2)	%
Non-interest income		200				187				159				189				209				7			(4)			387				396				(2)
Total net revenue(6)(7)		714				676				667				702				726				6			(2)			1,390				1,419				(2)
Provision for credit losses		82				69				9				54				34				19			141			151				20				**
Non-interest expense		427				417				434				408				409				2			4			844				812				4
Income from continuing operations before income taxes		205				190				224				240				283				8			(28)			395				587				(33)
Income tax provision		48				44				52				56				66				9			(27)			92				137				(33)
Income from continuing operations, net of tax		$	157			$	146			$	172			$	184			$	217			8			(28)			$	303			$	450			(33)
Selected performance metrics:
Period-end loans held for investment		$	71,992			$	71,189			$	70,333			$	68,747			$	67,609			1			6			$	71,992			$	67,609			6
Average loans held for investment		71,997				71,438				69,680				68,036				66,364				1			8			71,719				65,776				9
Average yield on loans held for investment(6)(8)		4.75		%		4.62		%		4.67		%		4.55		%		4.43		%		13	bps		32	bps		4.68		%		4.30		%		38	bps
Period-end deposits		$	30,761			$	31,248			$	29,480			$	30,474			$	31,078			(2)	%		(1)	%		$	30,761			$	31,078			(1)	%
Average deposits		31,364				30,816				30,680				31,061				32,951				2			(5)			31,092				33,501				(7)
Average deposits interest rate		1.28		%		1.11		%		0.95		%		0.79		%		0.65		%		17	bps		63	bps		1.19		%		0.59		%		60	bps
Net charge-off (recovery) rate		0.09				0.08				0.10				0.16				(0.04)				1			13			0.08				0.04				4
Nonperforming loan rate(3)		0.50				0.53				0.44				0.38				0.34				(3)			16			0.50				0.34				16
Nonperforming asset rate(4)		0.50				0.53				0.45				0.41				0.37				(3)			13			0.50				0.37				13
Risk category:(13)
Noncriticized		$	69,390			$	68,594			$	68,043			$	65,926			$	64,923			1	%		7	%		$	69,390			$	64,923			7	%
Criticized performing		2,211				2,094				1,848				2,204				2,088				6			6			2,211				2,088				6
Criticized nonperforming		360				378				312				259				229				(5)			57			360				229				57
PCI loans		31				123				130				358				369				(75)			(92)			31				369				(92)
Total commercial loans		$	71,992			$	71,189			$	70,333			$	68,747			$	67,609			1			6			$	71,992			$	67,609			6
Risk category as a percentage of period-end loans held for investment:(13)
Noncriticized		96.4		%		96.4		%		96.8		%		95.9		%		96.1		%		—			30	bps		96.4		%		96.1		%		30	bps
Criticized performing		3.1				2.9				2.6				3.2				3.1				20	bps		—			3.1				3.1				—
Criticized nonperforming		0.5				0.5				0.4				0.4				0.3				—			20			0.5				0.3				20
PCI loans		—				0.2				0.2				0.5				0.5				(20)			(50)			—				0.5				(50)
Total commercial 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
																						2019 Q2 vs.						Six Months Ended June 30,
		2019				2019				2018				2018				2018				2019			2018											2019 vs.
(Dollars in millions)		Q2				Q1				Q4				Q3				Q2				Q1			Q2			2019				2018				2018
Other
Earnings:
Net interest income (loss)		$	(8)			$	33			$	6			$	41			$	29			**			**			$	25			$	68			(63)	%
Non-interest income (loss)(1)		(26)				(5)				(11)				(61)				373				**			**			(31)				346				**
Total net revenue (loss)(6)(7)		(34)				28				(5)				(20)				402				**			**			(6)				414				**
Benefit for credit losses		—				—				—				(1)				(47)				**			**			—				(48)				**
Non-interest expense(14)		97				89				117				283				148				9	%		(34)	%		186				279				(33)
Income (loss) from continuing operations before income taxes		(131)				(61)				(122)				(302)				301				115			**			(192)				183				**
Income tax provision (benefit)		(109)				(106)				(340)				(97)				63				3			**			(215)				(32)				**
Income (loss) from continuing operations, net of tax		$	(22)			$	45			$	218			$	(205)			$	238			**			**			$	23			$	215			(89)
Selected performance metrics:
Period-end loans held for investment		—				—				—				—				$	11			**			**			—				$	11			**
Average loans held for investment		—				—				—				—				21				**			**			—				34				**
Period-end deposits		$	18,554			$	18,420			$	21,677			$	20,086			22,185				1			(16)			$	18,554			22,185				(16)
Average deposits		18,106				19,522				20,635				20,972				22,561				(7)			(20)			18,809				22,992				(18)
Total
Earnings:
Net interest income		$	5,746			$	5,791			$	5,820			$	5,786			$	5,551			(1)	%		4	%		$	11,537			$	11,269			2	%
Non-interest income		1,378				1,292				1,193				1,176				1,641				7			(16)			2,670				2,832				(6)
Total net revenue		7,124				7,083				7,013				6,962				7,192				1			(1)			14,207				14,101				1
Provision for credit losses		1,342				1,693				1,638				1,268				1,276				(21)			5			3,035				2,950				3
Non-interest expense		3,779				3,671				4,132				3,773				3,424				3			10			7,450				6,997				6
Income from continuing operations before income taxes		2,003				1,719				1,243				1,921				2,492				17			(20)			3,722				4,154				(10)
Income tax provision (benefit)		387				309				(21)				420				575				25			(33)			696				894				(22)
Income from continuing operations, net of tax		$	1,616			$	1,410			$	1,264			$	1,501			$	1,917			15			(16)			$	3,026			$	3,260			(7)
Selected performance metrics:
Period-end loans held for investment		$	244,460			$	240,273			$	245,899			$	238,761			$	236,124			2			4			$	244,460			$	236,124			4
Average loans held for investment		242,653				241,959				241,371				236,766				240,758				—			1			242,307				245,218				(1)
Period-end deposits		254,535				255,107				249,764				247,195				248,225				—			3			254,535				248,225				3
Average deposits		253,634				251,410				247,663				246,720				248,790				1			2			252,528				247,040				2

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)
(1)	In 2018, we sold all of our consumer home loan portfolio and recognized a net gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million.
(2)	In August 2018, we accelerated charge-off recognition for certain domestic credit card accounts where the cardholder is deceased. This acceleration led to a one-time increase in net charge-offs of approximately $32 million, increasing the net charge-off rate for total credit card and domestic credit card by approximately 12 basis points and 13 basis points, respectively, for the third quarter of 2018.
(3)	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.
(4)	Nonperforming assets consist of nonperforming loans, real estate owned ("REO") 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, REO and other foreclosed assets.
(5)	Represents foreign currency translation adjustments.
(6)	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.
(7)	In the first quarter of 2019, we made a change in how revenue is measured in our Commercial Banking business by revising the allocation of tax benefits on certain tax-advantaged investments. As such, prior period results have been recast to conform with the current period presentation. The result of this measurement change reduced the previously reported total net revenue in our Commercial Banking business by $30 million in Q1 2018, $32 million in Q2 2018, $26 million in Q3 2018, and $20 million in Q4 2018, with an offsetting increase in the Other category.
(8)	Average yield on loans held for investment is calculated based on annualized interest income for the period divided by average loans held for investment during the period for the respective loan category. Annualized interest income is computed based on the effective yield of the respective loan category and does not include any allocations, such as funds transfer pricing.
(9)	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average loans held for investment during the period for the respective loan category.
(10)	Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.
(11)	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.
(12)	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.
(13)	Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.
(14)	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)		June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018
Regulatory Capital Metrics
Common equity excluding AOCI		$	51,236			$	49,781			$	48,570			$	48,154			$	47,359
Adjustments:
AOCI(2)		170				(660)				(1,263)				(1,877)				(1,793)
Goodwill, net of related deferred tax liabilities		(14,365)				(14,369)				(14,373)				(14,345)				(14,368)
Intangible assets, net of related deferred tax liabilities		(194)				(223)				(254)				(284)				(328)
Other		(401)				113				391				817				735
Common equity Tier 1 capital		$	36,446			$	34,642			$	33,071			$	32,465			$	31,605
Tier 1 capital		$	40,806			$	39,002			$	37,431			$	36,826			$	35,965
Total capital(3)		47,919				46,042				44,645				43,947				43,082
Risk-weighted assets		295,280				291,483				294,950				288,694				285,223
Adjusted average assets(4)		356,518				355,781				350,606				346,297				349,222
Capital Ratios
Common equity Tier 1 capital(5)		12.3		%		11.9		%		11.2		%		11.2		%		11.1		%
Tier 1 capital(6)		13.8				13.4				12.7				12.8				12.6
Total capital(7)		16.2				15.8				15.1				15.2				15.1
Tier 1 leverage(4)		11.4				11.0				10.7				10.6				10.3
Tangible common equity ("TCE")(8)		10.2				9.6				9.1				9.0				8.8

 

 

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.
		2019												2019												Six Months Ended
		Q2												Q1												June 30, 2019
(Dollars in millions, except per share data and as noted)		Reported Results				Adj.(9)				Adjusted Results				Reported Results				Adj.(9)				Adjusted Results				Reported Results				Adj.(9)				Adjusted Results
Selected income statement data:
Net interest income		$	5,746			—				$	5,746			$	5,791			—				$	5,791			$	11,537			—				$	11,537
Non-interest income		1,378				$	1			1,379				1,292				—				1,292				2,670				$	1			2,671
Total net revenue		7,124				1				7,125				7,083				—				7,083				14,207				1				14,208
Provision for credit losses		1,342				—				1,342				1,693				—				1,693				3,035				—				3,035
Non-interest expense		3,779				(81)				3,698				3,671				$	(25)			3,646				7,450				(106)				7,344
Income from continuing operations before income taxes		2,003				82				2,085				1,719				25				1,744				3,722				107				3,829
Income tax provision		387				19				406				309				6				315				696				25				721
Income from continuing operations, net of tax		1,616				63				1,679				1,410				19				1,429				3,026				82				3,108
Income (loss) from discontinued operations, net of tax		9				—				9				2				—				2				11				—				11
Net income		1,625				63				1,688				1,412				19				1,431				3,037				82				3,119
Dividends and undistributed earnings allocated to participating securities(10)		(12)				(1)				(13)				(12)				—				(12)				(24)				(1)				(25)
Preferred stock dividends		(80)				—				(80)				(52)				—				(52)				(132)				—				(132)
Net income available to common stockholders		$	1,533			$	62			$	1,595			$	1,348			$	19			$	1,367			$	2,881			$	81			$	2,962
Selected performance metrics:
Diluted EPS(10)		$	3.24			$	0.13			$	3.37			$	2.86			$	0.04			$	2.90			$	6.10			$	0.17			$	6.27
Efficiency ratio		53.05		%		(115)		bps		51.90		%		51.83		%		(35)		bps		51.48		%		52.44		%		(75)		bps		51.69		%
Operating efficiency ratio		45.38				(114)				44.24				44.53				(35)				44.18				44.96				(75)				44.21
		2018												2018												Six Months Ended
		Q2												Q1												June 30, 2018
(Dollars in millions, except per share data and as noted)		Reported Results				Adj.(9)				Adjusted Results				Reported Results				Adj.(9)				Adjusted Results				Reported Results				Adj.(9)				Adjusted Results
Selected income statement data:
Net interest income		$	5,551			$	26			$	5,577			$	5,718			—				$	5,718			$	11,269			$	26			$	11,295
Non-interest income		1,641				(361)				1,280				1,191				$	2			1,193				2,832				(359)				2,473
Total net revenue		7,192				(335)				6,857				6,909				2				6,911				14,101				(333)				13,768
Provision for credit losses		1,276				46				1,322				1,674				—				1,674				2,950				46				2,996
Non-interest expense		3,424				(45)				3,379				3,573				(17)				3,556				6,997				(62)				6,935
Income from continuing operations before income taxes		2,492				(336)				2,156				1,662				19				1,681				4,154				(317)				3,837
Income tax provision		575				(92)				483				319				4				323				894				(88)				806
Income from continuing operations, net of tax		1,917				(244)				1,673				1,343				15				1,358				3,260				(229)				3,031
Income (loss) from discontinued operations, net of tax		(11)				—				(11)				3				—				3				(8)				—				(8)
Net income		1,906				(244)				1,662				1,346				15				1,361				3,252				(229)				3,023
Dividends and undistributed earnings allocated to participating securities(10)		(12)				2				(10)				(10)				—				(10)				(23)				2				(21)
Preferred stock dividends		(80)				—				(80)				(52)				—				(52)				(132)				—				(132)
Net income available to common stockholders		$	1,814			$	(242)			$	1,572			$	1,284			$	15			$	1,299			$	3,097			$	(227)			$	2,870
Selected performance metrics:
Diluted EPS(10)		$	3.71			$	(0.49)			$	3.22			$	2.62			$	0.03			$	2.65			$	6.33			$	(0.47)			$	5.86
Efficiency ratio		47.61		%		167		bps		49.28		%		51.72		%		(27)		bps		51.45		%		49.62		%		75		bps		50.37		%
Operating efficiency ratio		41.70				138				43.08				45.72				(26)				45.46				43.67				61				44.28

 

 

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.
		2019				2019				2018				2018				2018
(Dollars in millions)		Q2				Q1				Q4				Q3				Q2
Tangible Common Equity (Period-End)
Stockholders' equity		$	55,767			$	53,481			$	51,668			$	50,638			$	49,926
Goodwill and intangible assets(11)		(14,886)				(14,904)				(14,941)				(14,945)				(15,013)
Noncumulative perpetual preferred stock		(4,360)				(4,360)				(4,360)				(4,360)				(4,360)
Tangible common equity		$	36,521			$	34,217			$	32,367			$	31,333			$	30,553
Tangible Common Equity (Average)
Stockholders' equity		$	54,570			$	52,720			$	51,114			$	50,768			$	49,827
Goodwill and intangible assets(11)		(14,900)				(14,932)				(14,953)				(14,982)				(15,043)
Noncumulative perpetual preferred stock		(4,360)				(4,360)				(4,360)				(4,360)				(4,360)
Tangible common equity		$	35,310			$	33,428			$	31,801			$	31,426			$	30,424
Tangible Assets (Period-End)
Total assets		$	373,619			$	373,191			$	372,538			$	362,909			$	363,989
Goodwill and intangible assets(11)		(14,886)				(14,904)				(14,941)				(14,945)				(15,013)
Tangible assets		$	358,733			$	358,287			$	357,597			$	347,964			$	348,976
Tangible Assets (Average)
Total assets		$	371,095			$	370,394			$	365,243			$	360,937			$	363,929
Goodwill and intangible assets(11)		(14,900)				(14,932)				(14,953)				(14,982)				(15,043)
Tangible assets		$	356,195			$	355,462			$	350,290			$	345,955			$	348,886
__________
(1)       Regulatory capital metrics and capital ratios as of June 30, 2019 are preliminary and therefore subject to change.
(2)       Amounts presented are net of tax.
(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)       The adjustments for the following periods consist of:

			2019				2019				Six Months Ended				2018				2018				Six Months Ended
(Dollars in millions)			Q2				Q1				June 30, 2019				Q2				Q1				June 30, 2018
Walmart launch and related integration expenses			$	54			$	25			$	79			—				—				—
Net gains on the sales of exited businesses			—				—				—				$	(400)			—				$	(400)
U.K. Payment Protection Insurance customer refund reserve build ("U.K. PPI Reserve")			—				—				—				49				—				49
Restructuring charges			28				—				28				15				$	19			34
Total			82				25				107				(336)				19				(317)
Income tax provision (benefit)			19				6				25				(92)				4				(88)
Net income			$	63			$	19			$	82			$	(244)			$	15			$	(229)
(10)       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.
(11)       Includes impact of related deferred taxes.

 

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SOURCE Capital One Financial Corporation