MCLEAN, Va., Oct. 24, 2019 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2019 of $1.3 billion, or $2.69 per diluted common share, compared with net income of $1.6 billion, or $3.24 per diluted common share in the second quarter of 2019, and with net income of $1.5 billion, or $2.99 per diluted common share in the third quarter of 2018. Excluding adjusting items, net income for the third quarter of 2019 was $3.32 per diluted common share(1).

"Our marketing and technology investments are building our momentum and creating great value," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "Our domestic card business delivered strong year-over-year growth in purchase volume and branded card loans, and our consumer banking business posted strong year-over-year growth in auto originations and retail deposits."

Adjusting items in the third quarter of 2019, which are excluded from diluted earnings per share (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

U.K. Payment Protection Insurance customer refund reserve build ("U.K. PPI Reserve")

$

212


$

0.45


Walmart launch and related integration expenses

84


0.14


Cybersecurity Incident expenses, net of insurance

22


0.04


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

Third Quarter 2019 Income Statement Summary:

  • Total net revenue decreased 2 percent to $7.0 billion.
  • Total non-interest expense increased 2 percent to $3.9 billion:
    • 8 percent decrease in marketing.

(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.

    • 4 percent increase in operating expenses.
  • Pre-provision earnings decreased 8 percent to $3.1 billion(2).
  • Provision for credit losses increased 3 percent to $1.4 billion:
    • Net charge-offs of $1.5 billion.
    • $79 million reserve release.
  • Net interest margin of 6.73 percent, decreased 7 basis points.
  • Efficiency ratio of 55.64 percent.
    • Efficiency ratio excluding adjusting items of 52.04 percent(1).
  • Operating efficiency ratio of 48.44 percent.
    • Operating efficiency ratio excluding adjusting items of 44.98 percent(1).

Third Quarter 2019 Balance Sheet Summary:

  • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.5 percent at September 30, 2019.
  • Period-end loans held for investment in the quarter increased $4.9 billion, or 2 percent, to $249.4 billion.
    • Credit Card period-end loans increased $1.5 billion, or 1 percent, to $113.7 billion.
      • Domestic Card period-end loans increased $1.7 billion, or 2 percent, to $104.7 billion.
    • Consumer Banking period-end loans increased $1.7 billion, or 3 percent, to $62.0 billion.
      • Auto period-end loans increased $1.7 billion, or 3 percent, to $59.3 billion.
    • Commercial Banking period-end loans increased $1.7 billion, or 2 percent, to $73.7 billion.
  • Average loans held for investment in the quarter increased $3.5 billion, or 1 percent, to $246.1 billion.
    • Credit Card average loans increased $1.6 billion, or 1 percent, to $112.4 billion.
      • Domestic Card average loans increased $1.5 billion, or 1 percent, to $103.4 billion.
    • Consumer Banking average loans increased $1.4 billion, or 2 percent, to $61.3 billion.
      • Auto average loans increased $1.4 billion, or 3 percent, to $58.5 billion.
    • Commercial Banking average loans increased $510 million, or 1 percent, to $72.5 billion.
  • Period-end total deposits increased $2.6 billion, or 1 percent, to $257.1 billion, while average deposits increased $1.4 billion, or 1 percent, to $255.1 billion.
  • Interest-bearing deposits rate paid increased 4 basis points to 1.55 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 October 24, 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 November 7, 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 $257.1 billion in deposits and $378.8 billion in total assets as of September 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)

Third Quarter 2019

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 Loan and Lease 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:

Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—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, 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 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions, except per share data and as noted)


2019


2019


2019


2018


2018


2019


2018






2019 vs.


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Income Statement





















Net interest income


$

5,737



$

5,746



$

5,791



$

5,820



$

5,786





(1)

%


$

17,274



$

17,055



1

%

Non-interest income


1,222



1,378



1,292



1,193



1,176



(11)

%


4



3,892



4,008



(3)


Total net revenue(1)


6,959



7,124



7,083



7,013



6,962



(2)





21,166



21,063




Provision for credit losses


1,383



1,342



1,693



1,638



1,268



3



9



4,418



4,218



5


Non-interest expense:





















Marketing


501



546



517



831



504



(8)



(1)



1,564



1,343



16


Operating expense


3,371



3,233



3,154



3,301



3,269



4



3



9,758



9,427



4


Total non-interest expense


3,872



3,779



3,671



4,132



3,773



2



3



11,322



10,770



5


Income from continuing operations before income taxes


1,704



2,003



1,719



1,243



1,921



(15)



(11)



5,426



6,075



(11)


Income tax provision (benefit)


375



387



309



(21)



420



(3)



(11)



1,071



1,314



(18)


Income from continuing operations, net of tax


1,329



1,616



1,410



1,264



1,501



(18)



(11)



4,355



4,761



(9)


Income (loss) from discontinued operations, net of tax


4



9



2



(3)



1



(56)



**



15



(7)



**


Net income


1,333



1,625



1,412



1,261



1,502



(18)



(11)



4,370



4,754



(8)


Dividends and undistributed earnings allocated to participating securities(2)


(10)



(12)



(12)



(9)



(9)



(17)



11



(34)



(32)



6


Preferred stock dividends


(53)



(80)



(52)



(80)



(53)



(34)





(185)



(185)




Net income available to common stockholders


$

1,270



$

1,533



$

1,348



$

1,172



$

1,440



(17)



(12)



$

4,151



$

4,537



(9)


Common Share Statistics





















Basic earnings per common share:(2)





















Net income from continuing operations


$

2.70



$

3.24



$

2.87



$

2.50



$

3.01



(17)

%


(10)

%


$

8.80



$

9.40



(6)

%

Income (loss) from discontinued operations


0.01



0.02





(0.01)





(50)



**



0.03



(0.01)



**


Net income per basic common share


$

2.71



$

3.26



$

2.87



$

2.49



$

3.01



(17)



(10)



$

8.83



$

9.39



(6)


Diluted earnings per common share:(2)





















Net income from continuing operations


$

2.68



$

3.22



$

2.86



$

2.49



$

2.99



(17)



(10)



$

8.76



$

9.33



(6)


Income (loss) from discontinued operations


0.01



0.02





(0.01)





(50)



**



0.03



(0.01)



**


Net income per diluted common share


$

2.69



$

3.24



$

2.86



$

2.48



$

2.99



(17)



(10)



$

8.79



$

9.32



(6)


Weighted-average common shares outstanding (in millions):





















Basic


469.5



470.8



469.4



470.0



477.8





(2)



469.9



483.2



(3)


Diluted


471.8



473.0



471.6



472.7



480.9





(2)



472.1



486.7



(3)


Common shares outstanding (period-end, in millions)


465.7



470.3



469.6



467.7



473.7



(1)



(2)



465.7



473.7



(2)


Dividends declared and paid per common share


$

0.40



$

0.40



$

0.40



$

0.40



$

0.40







$

1.20



$

1.20




Tangible book value per common share (period-end)(3)


80.46



77.65



72.86



69.20



66.15



4



22



80.46



66.15



22












































































2019 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions)


2019


2019


2019


2018


2018


2019


2018






2019 vs.


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Balance Sheet (Period-End)





















Loans held for investment


$

249,355



$

244,460



$

240,273



$

245,899



$

238,761



2

%


4

%


$

249,355



$

238,761



4

%

Interest-earning assets


344,643



339,160



340,071



341,293



331,293



2



4



344,643



331,293



4


Total assets


378,810



373,619



373,191



372,538



362,909



1



4



378,810



362,909



4


Interest-bearing deposits


234,084



231,161



230,199



226,281



222,356



1



5



234,084



222,356



5


Total deposits


257,148



254,535



255,107



249,764



247,195



1



4



257,148



247,195



4


Borrowings


50,149



49,233



50,358



58,905



52,205



2



(4)



50,149



52,205



(4)


Common equity


52,412



51,406



49,120



47,307



46,277



2



13



52,412



46,277



13


Total stockholders' equity


58,235



55,767



53,481



51,668



50,638



4



15



58,235



50,638



15


Balance Sheet (Average Balances)





















Loans held for investment


$

246,147



$

242,653



$

241,959



$

241,371



$

236,766



1

%


4

%


$

243,602



$

242,369



1

%

Interest-earning assets


340,949



338,026



337,793



334,714



330,272



1



3



338,936



331,318



2


Total assets


374,905



371,095



370,394



365,243



360,937



1



4



372,148



362,293



3


Interest-bearing deposits


232,063



230,452



227,572



222,827



221,431



1



5



230,045



221,400



4


Total deposits


255,082



253,634



251,410



247,663



246,720



1



3



253,389



246,932



3


Borrowings


49,413



49,982



53,055



53,994



51,684



(1)



(4)



50,804



52,858



(4)


Common equity


52,566



50,209



48,359



46,753



46,407



5



13



50,393



45,521



11


Total stockholders' equity


57,245



54,570



52,720



51,114



50,768



5



13



54,861



49,882



10


 

 

               


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated














2019 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions, except as noted)


2019


2019


2019


2018


2018


2019


2018






2019 vs.


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Performance Metrics





















Net interest income growth (period over period)




(1)

%




1

%


4

%


**



**



1

%


2

%


**


Non-interest income growth (period over period)


(11)

%


7



8

%


1



(28)



**



**



(3)



12



**


Total net revenue growth (period over period)


(2)



1



1



1



(3)



**



**





4



**


Total net revenue margin(4)


8.16



8.43



8.39



8.38



8.43



(27)

bps


(27)

bps


8.33



8.48



(15)

bps

Net interest margin(5)


6.73



6.80



6.86



6.96



7.01



(7)



(28)



6.80



6.86



(6)


Return on average assets


1.42



1.74



1.52



1.38



1.66



(32)



(24)



1.56



1.75



(19)


Return on average tangible assets(6)


1.48



1.82



1.59



1.44



1.74



(34)



(26)



1.63



1.83



(20)


Return on average common equity(7)


9.63



12.14



11.13



10.05



12.40



(251)



(277)



10.94



13.31



(237)


Return on average tangible common equity(8)


13.45



17.26



16.11



14.78



18.32



(381)



(487)



15.54



19.88



(434)


Non-interest expense as a percentage of average loans held for investment


6.29



6.23



6.07



6.85



6.37



6



(8)



6.20



5.92



28


Efficiency ratio(9)


55.64



53.05



51.83



58.92



54.19



259



145



53.49



51.13



236


Operating efficiency ratio(10)


48.44



45.38



44.53



47.07



46.95



306



149



46.10



44.76



134


Effective income tax rate for continuing operations


22.0



19.3



18.0



(1.7)



21.9



270



10



19.7



21.6



(190)


Employees (period-end, in thousands)


52.1



50.7



48.8



47.6



47.6



3

%


9

%


52.1



47.6



9

%

Credit Quality Metrics





















Allowance for loan and lease losses


$

7,037



$

7,133



$

7,313



$

7,220



$

7,219



(1)

%


(3)

%


$

7,037



$

7,219



(3)

%

Allowance as a percentage of loans held for investment


2.82

%


2.92

%


3.04

%


2.94

%


3.02

%


(10)

bps


(20)

bps


2.82

%


3.02

%


(20)

bps

Net charge-offs


$

1,462



$

1,508



$

1,599



$

1,610



$

1,425



(3)

%


3

%


$

4,569



$

4,502



1

%

Net charge-off rate(11)


2.38

%


2.48

%


2.64

%


2.67

%


2.41

%


(10)

bps


(3)

bps


2.50

%


2.48

%


2

bps

30+ day performing delinquency rate


3.28



3.15



3.23



3.62



3.28



13





3.28



3.28




30+ day delinquency rate


3.51



3.35



3.40



3.84



3.48



16



3



3.51



3.48



3


Capital Ratios(12)





















Common equity Tier 1 capital


12.5

%


12.3

%


11.9

%


11.2

%


11.2

%


20

bps


130

bps


12.5

%


11.2

%


130

bps

Tier 1 capital


14.4



13.8



13.4



12.7



12.8



60



160



14.4



12.8



160


Total capital


16.8



16.2



15.8



15.1



15.2



60



160



16.8



15.2



160


Tier 1 leverage


11.9



11.4



11.0



10.7



10.6



50



130



11.9



10.6



130


Tangible common equity ("TCE")(13)


10.3



10.2



9.6



9.1



9.0



10



130



10.3



9.0



130



 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income














2019 Q3 vs.


Nine Months Ended September 30,



2019


2019


2019


2018


2018


2019


2018






2019 vs.

(Dollars in millions, except per share data and as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Interest income:





















Loans, including loans held for sale


$

6,429



$

6,383



$

6,368



$

6,358



$

6,247



1

%


3

%


$

19,180



$

18,370



4

%

Investment securities


583



629



655



627



593



(7)



(2)



1,867



1,584



18


Other


63



64



69



63



55



(2)



15



196



174



13


Total interest income


7,075



7,076



7,092



7,048



6,895





3



21,243



20,128



6


Interest expense:





















Deposits


901



870



817



756



681



4



32



2,588



1,842



40


Securitized debt obligations


123



139



143



138



127



(12)



(3)



405



358



13


Senior and subordinated notes


299



310



314



297



288



(4)



4



923



828



11


Other borrowings


15



11



27



37



13



36



15



53



45



18


Total interest expense


1,338



1,330



1,301



1,228



1,109



1



21



3,969



3,073



29


Net interest income


5,737



5,746



5,791



5,820



5,786





(1)



17,274



17,055



1


Provision for credit losses


1,383



1,342



1,693



1,638



1,268



3



9



4,418



4,218



5


Net interest income after provision for credit losses


4,354



4,404



4,098



4,182



4,518



(1)



(4)



12,856



12,837




Non-interest income:





















Interchange fees, net


790



820



758



743



714



(4)



11



2,368



2,080



14


Service charges and other customer-related fees


283



352



353



352



410



(20)



(31)



988



1,233



(20)


Net securities gains (losses)


5



15



24



(20)



(196)



(67)



**



44



(189)



**


Other


144



191



157



118



248



(25)



(42)



492



884



(44)


Total non-interest income


1,222



1,378



1,292



1,193



1,176



(11)



4



3,892



4,008



(3)


Non-interest expense:





















Salaries and associate benefits


1,605



1,558



1,573



1,345



1,432



3



12



4,736



4,382



8


Occupancy and equipment


519



521



493



610



515





1



1,533



1,508



2


Marketing


501



546



517



831



504



(8)



(1)



1,564



1,343



16


Professional services


314



314



291



426



275





14



919



719



28


Communications and data processing


312



329



303



326



311



(5)





944



934



1


Amortization of intangibles


25



29



30



43



44



(14)



(43)



84



131



(36)


Other(14)


596



482



464



551



692



24



(14)



1,542



1,753



(12)


Total non-interest expense


3,872



3,779



3,671



4,132



3,773



2



3



11,322



10,770



5


Income from continuing operations before income taxes


1,704



2,003



1,719



1,243



1,921



(15)



(11)



5,426



6,075



(11)


Income tax provision (benefit)


375



387



309



(21)



420



(3)



(11)



1,071



1,314



(18)


Income from continuing operations, net of tax


1,329



1,616



1,410



1,264



1,501



(18)



(11)



4,355



4,761



(9)


Income (loss) from discontinued operations, net of tax


4



9



2



(3)



1



(56)



**



15



(7)



**


Net income


1,333



1,625



1,412



1,261



1,502



(18)



(11)



4,370



4,754



(8)


Dividends and undistributed earnings allocated to participating securities(2)


(10)



(12)



(12)



(9)



(9)



(17)



11



(34)



(32)



6


Preferred stock dividends


(53)



(80)



(52)



(80)



(53)



(34)





(185)



(185)




Net income available to common stockholders


$

1,270



$

1,533



$

1,348



$

1,172



$

1,440



(17)



(12)



$

4,151



$

4,537



(9)



































2019 Q3 vs.


Nine Months Ended September 30,



2019


2019


2019


2018


2018


2019


2018






2019 vs.

(Dollars in millions, except per share data and as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Basic earnings per common share:(2)





















Net income from continuing operations


$

2.70



$

3.24



$

2.87



$

2.50



$

3.01



(17)

%


(10)

%


$

8.80



$

9.40



(6)

%

Income (loss) from discontinued operations


0.01



0.02





(0.01)





(50)



**



0.03



(0.01)



**


Net income per basic common share


$

2.71



$

3.26



$

2.87



$

2.49



$

3.01



(17)



(10)



$

8.83



$

9.39



(6)


Diluted earnings per common share:(2)





















Net income from continuing operations


$

2.68



$

3.22



$

2.86



$

2.49



$

2.99



(17)



(10)



$

8.76



$

9.33



(6)


Income (loss) from discontinued operations


0.01



0.02





(0.01)





(50)



**



0.03



(0.01)



**


Net income per diluted common share


$

2.69



$

3.24



$

2.86



$

2.48



$

2.99



(17)



(10)



$

8.79



$

9.32



(6)


Weighted-average common shares outstanding (in millions):





















Basic common shares


469.5



470.8



469.4



470.0



477.8





(2)



469.9



483.2



(3)


Diluted common shares


471.8



473.0



471.6



472.7



480.9





(2)



472.1



486.7



(3)


 


 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets














2019 Q3 vs.



2019


2019


2019


2018


2018


2019


2018

(Dollars in millions)


Q3


Q2


Q1


Q4


Q3


Q2


Q3

Assets:















Cash and cash equivalents:















Cash and due from banks


$

4,452



$

5,184



$

4,572



$

4,768



$

4,547



(14)

%


(2)

%

Interest-bearing deposits and other short-term investments


12,668



9,927



12,897



8,418



6,335



28



100


Total cash and cash equivalents


17,120



15,111



17,469



13,186



10,882



13



57


Restricted cash for securitization investors


417



710



1,969



303



746



(41)



(44)


Investment securities:















Securities available for sale


46,168



45,658



45,888



46,150



47,384



1



(3)


Securities held to maturity


33,894



35,475



36,503



36,771



34,631



(4)



(2)


Total investment securities


80,062



81,133



82,391



82,921



82,015



(1)



(2)


Loans held for investment:















Unsecuritized loans held for investment


215,892



211,556



208,591



211,702



204,796



2



5


Loans held in consolidated trusts


33,463



32,904



31,682



34,197



33,965



2



(1)


Total loans held for investment


249,355



244,460



240,273



245,899



238,761



2



4


Allowance for loan and lease losses


(7,037)



(7,133)



(7,313)



(7,220)



(7,219)



(1)



(3)


Net loans held for investment


242,318



237,327



232,960



238,679



231,542



2



5


Loans held for sale, at lower of cost or fair value


1,245



1,829



905



1,192



1,402



(32)



(11)


Premises and equipment, net


4,311



4,243



4,205



4,191



4,149



2



4


Interest receivable


1,627



1,544



1,615



1,614



1,518



5



7


Goodwill


14,624



14,545



14,546



14,544



14,513



1



1


Other assets


17,086



17,177



17,131



15,908



16,142



(1)



6


Total assets


$

378,810



$

373,619



$

373,191



$

372,538



$

362,909



1



4





























2019 Q3 vs.



2019


2019


2019


2018


2018


2019


2018

(Dollars in millions)


Q3


Q2


Q1


Q4


Q3


Q2


Q3

Liabilities:















Interest payable


$

370



$

437



$

382



$

458



$

391



(15)

%


(5)

%

Deposits:















Non-interest-bearing deposits


23,064



23,374



24,908



23,483



24,839



(1)



(7)


Interest-bearing deposits


234,084



231,161



230,199



226,281



222,356



1



5


Total deposits


257,148



254,535



255,107



249,764



247,195



1



4


Securitized debt obligations


18,910



16,959



19,273



18,307



18,649



12



1


Other debt:















Federal funds purchased and securities loaned or sold under agreements to repurchase


464



359



335



352



384



29



21


Senior and subordinated notes


30,682



31,822



30,645



30,826



31,291



(4)



(2)


Other borrowings


93



93



105



9,420



1,881





(95)


Total other debt


31,239



32,274



31,085



40,598



33,556



(3)



(7)


Other liabilities


12,908



13,647



13,863



11,743



12,480



(5)



3


Total liabilities


320,575



317,852



319,710



320,870



312,271



1



3

















Stockholders' equity:















Preferred stock


0



0



0



0



0






Common stock


7



7



7



7



7






Additional paid-in capital, net


33,826



32,262



32,160



32,040



31,978



5



6


Retained earnings


39,476



38,386



37,030



35,875



34,883



3



13


Accumulated other comprehensive income (loss)


453



170



(660)



(1,263)



(1,877)



**



**


Treasury stock, at cost


(15,527)



(15,058)



(15,056)



(14,991)



(14,353)



3



8


Total stockholders' equity


58,235



55,767



53,481



51,668



50,638



4



15


Total liabilities and stockholders' equity


$

378,810



$

373,619



$

373,191



$

372,538



$

362,909



1



4


 

 

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 $330 million in Q3 2019, $318 million in Q2 2019, $376 million in Q1 2019, $391 million in Q4 2018 and $305 million in Q3 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 Q3 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.

(14)

Includes $22 million of net Cybersecurity Incident expenses in Q3 2019, consisting of $49 million of expenses and $27 million of probable insurance recoveries.

**

Not meaningful.


 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




2019 Q3


2019 Q2


2018 Q3



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


$

247,419



$

6,429



10.39

%


$

243,831



$

6,383



10.47

%


$

238,150



$

6,247



10.49

%

Investment securities


80,762



583



2.88



82,383



629



3.05



83,894



593



2.83


Cash equivalents and other


12,768



63



2.00



11,812



64



2.16



8,228



55



2.66


Total interest-earning assets


$

340,949



$

7,075



8.30



$

338,026



$

7,076



8.37



$

330,272



$

6,895



8.35


Interest-bearing liabilities:



















Interest-bearing deposits


$

232,063



$

901



1.55



$

230,452



$

870



1.51



$

221,431



$

681



1.23


Securitized debt obligations


16,750



123



2.94



18,262



139



3.04



18,917



127



2.68


Senior and subordinated notes


31,220



299



3.84



30,630



310



4.05



31,660



288



3.63


Other borrowings and liabilities


2,698



15



2.14



2,322



11



1.91



3,084



13



1.67


Total interest-bearing liabilities


$

282,731



$

1,338



1.89



$

281,666



$

1,330



1.89



$

275,092



$

1,109



1.62


Net interest income/spread




$

5,737



6.41





$

5,746



6.48





$

5,786



6.73


Impact of non-interest-bearing funding






0.32







0.32







0.28


Net interest margin






6.73

%






6.80

%






7.01

%




Nine Months Ended September 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


$

244,743



$

19,180



10.45

%


$

243,653



$

18,370



10.05

%

Investment securities


82,264



1,867



3.03



77,819



1,584



2.71


Cash equivalents and other


11,929



196



2.19



9,846



174



2.36


Total interest-earning assets


$

338,936



$

21,243



8.36



$

331,318



$

20,128



8.10


Interest-bearing liabilities:













Interest-bearing deposits


$

230,045



$

2,588



1.50



$

221,400



$

1,842



1.11


Securitized debt obligations


17,912



405



3.02



19,251



358



2.46


Senior and subordinated notes


30,897



923



3.98



31,452



828



3.51


Other borrowings and liabilities


3,228



53



2.19



4,674



45



1.28


Total interest-bearing liabilities


$

282,082



$

3,969



1.88



$

276,777



$

3,073



1.49


Net interest income/spread




$

17,274



6.48





$

17,055



6.61


Impact of non-interest-bearing funding






0.32







0.25


Net interest margin






6.80

%






6.86

%

 

 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics














2019 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions, except as noted)


2019
Q3


2019
Q2


2019
Q1


2018
Q4


2018
Q3


2019
Q2


2018
Q3


2019


2018


2019 vs.
2018

Loans Held for Investment (Period-End)





















Credit card:





















   Domestic credit card


$

104,664



$

102,959



$

101,052



$

107,350



$

101,564



2

%


3

%


$

104,664



$

101,564



3

%

   International card businesses


9,017



9,182



8,784



9,011



9,121



(2)



(1)



9,017



9,121



(1)


Total credit card


113,681



112,141



109,836



116,361



110,685



1



3



113,681



110,685



3


Consumer banking:





















   Auto


59,278



57,556



56,444



56,341



56,422



3



5



59,278



56,422



5


   Retail banking


2,737



2,771



2,804



2,864



2,907



(1)



(6)



2,737



2,907



(6)


Total consumer banking


62,015



60,327



59,248



59,205



59,329



3



5



62,015



59,329



5


Commercial banking:





















   Commercial and multifamily real estate


30,009



29,861



28,984



28,899



29,064





3



30,009



29,064



3


   Commercial and industrial


43,650



42,125



42,197



41,091



39,325



4



11



43,650



39,325



11


     Total commercial lending


73,659



71,986



71,181



69,990



68,389



2



8



73,659



68,389



8


   Small-ticket commercial real estate




6



8



343



358



**



**





358



**


Total commercial banking


73,659



71,992



71,189



70,333



68,747



2



7



73,659



68,747



7


Total loans held for investment


$

249,355



$

244,460



$

240,273



$

245,899



$

238,761



2



4



$

249,355



$

238,761



4


Loans Held for Investment (Average)





















Credit card:





















   Domestic credit card


$

103,426



$

101,930



$

102,667



$

103,391



$

100,566



1

%


3

%


$

102,677



$

99,970



3

%

   International card businesses


8,945



8,868



8,789



8,958



8,944



1





8,868



8,998



(1)


Total credit card


112,371



110,798



111,456



112,349



109,510



1



3



111,545



108,968



2


Consumer banking:





















   Auto


58,517



57,070



56,234



56,469



56,297



3



4



57,282



55,320



4


   Home loan(1)












**



**





8,377



**


   Retail banking


2,752



2,788



2,831



2,873



2,923



(1)



(6)



2,790



3,144



(11)


Total consumer banking


61,269



59,858



59,065



59,342



59,220



2



3



60,072



66,841



(10)


Commercial banking:





















   Commercial and multifamily real estate


29,698



29,514



29,034



28,855



28,354



1



5



29,418



27,406



7


   Commercial and industrial


42,807



42,476



42,132



40,476



39,318



1



9



42,474



38,754



10


     Total commercial lending


72,505



71,990



71,166



69,331



67,672



1



7



71,892



66,160



9


   Small-ticket commercial real estate


2



7



272



349



364



(71)



(99)



93



378



(75)


Total commercial banking


72,507



71,997



71,438



69,680



68,036



1



7



71,985



66,538



8


Other loans












**



**





22



**


Total average loans held for investment


$

246,147



$

242,653



$

241,959



$

241,371



$

236,766



1



4



$

243,602



$

242,369



1





















2019 Q3 vs.


Nine Months Ended September 30,



 

2019
Q3


 

2019
Q2


 

2019
Q1


 

2018
Q4


 

2018
Q3


2019
Q2


2018
Q3


 

2019


 

2018


2019 vs.
2018

Net Charge-Off (Recovery) Rates




























Credit card:




























   Domestic credit card(2)



4.12

%



4.86

%



5.04

%



4.64

%



4.35

%


(74)

bps


(23)

bps



4.67

%



4.78

%


(11)

bps

   International card businesses



3.78




3.63




3.20




4.22




1.92



15



186




3.54




2.85



69


Total credit card(2)



4.09




4.76




4.90




4.61




4.15



(67)



(6)




4.58




4.62



(4)


Consumer banking:




























   Auto



1.60




1.09




1.44




1.98




1.73



51



(13)




1.38




1.53



(15)


   Retail banking



2.55




2.42




2.56




2.56




2.62



13



(7)




2.51




2.18



33


Total consumer banking



1.64




1.15




1.49




2.01




1.77



49



(13)




1.43




1.36



7


Commercial banking:




























   Commercial and multifamily real estate



0.02










(0.01)




0.04



2



(2)




0.01




0.01




   Commercial and industrial



0.55




0.15




0.13




0.17




0.25



40



30




0.28




0.13



15


     Total commercial lending



0.33




0.09




0.08




0.10




0.16



24



17




0.17




0.08



9


   Small-ticket commercial real estate



**




**




0.23




0.13




0.56



**



**




**




(0.02)



**


Total commercial banking



0.33




0.09




0.08




0.10




0.16



24



17




0.17




0.08



9


Total net charge-offs



2.38




2.48




2.64




2.67




2.41



(10)



(3)




2.50




2.48



2


30+ Day Performing Delinquency Rates




























Credit card:




























   Domestic credit card



3.71

%



3.40

%



3.72

%



4.04

%



3.80

%


31

bps


(9)

bps



3.71

%



3.80

%


(9)

bps

   International card businesses



3.52




3.40




3.61




3.52




3.55



12



(3)




3.52




3.55



(3)


Total credit card



3.69




3.40




3.71




4.00




3.78



29



(9)




3.69




3.78



(9)


Consumer banking:




























   Auto



6.47




6.10




5.78




6.95




6.27



37



20




6.47




6.27



20


   Retail banking



1.01




0.93




0.84




1.01




0.80



8



21




1.01




0.80



21


Total consumer banking



6.23




5.87




5.55




6.67




6.01



36



22




6.23




6.01



22


Nonperforming Loans and Nonperforming Assets Rates(3)(4)




























Credit card:




























   International card businesses



0.25

%



0.25

%



0.26

%



0.25

%



0.22

%




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



0.73




0.64




0.57




0.80




0.70



9

bps


3




0.73




0.70



3


   Retail banking



0.91




1.02




1.10




1.04




1.13



(11)



(22)




0.91




1.13



(22)


Total consumer banking



0.74




0.66




0.59




0.81




0.72



8



2




0.74




0.72



2


Commercial banking:




























   Commercial and multifamily real estate



0.12




0.14




0.24




0.29




0.13



(2)



(1)




0.12




0.13



(1)


   Commercial and industrial



0.95




0.74




0.71




0.54




0.55



21



40




0.95




0.55



40


     Total commercial lending



0.61




0.49




0.52




0.44




0.37



12



24




0.61




0.37



24


   Small-ticket commercial real estate



**




**




**




1.80




1.65



**



**




**




1.65



**


Total commercial banking



0.61




0.50




0.53




0.44




0.38



11



23




0.61




0.38



23


Total nonperforming loans



0.37




0.32




0.31




0.33




0.30



5



7




0.37




0.30



7


Total nonperforming assets



0.40




0.34




0.33




0.35




0.33



6



7




0.40




0.33



7


 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




Three Months Ended September 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 June 30, 2019


$

4,925



$

417



$

5,342



$

997



$

58



$

1,055



$

736



$

7,133


Charge-offs


(1,403)



(128)



(1,531)



(468)



(21)



(489)



(66)



(2,086)


Recoveries


338



42



380



234



4



238



6



624


Net charge-offs


(1,065)



(86)



(1,151)



(234)



(17)



(251)



(60)



(1,462)


Provision for loan and lease losses


1,010



77



1,087



189



14



203



84



1,374


Allowance build (release) for loan and lease losses


(55)



(9)



(64)



(45)



(3)



(48)



24



(88)


Other changes(5)




(8)



(8)











(8)


Balance as of September 30, 2019


4,870



400



5,270



952



55



1,007



760



7,037


Reserve for unfunded lending commitments:

















Balance as of June 30, 2019










4



4



140



144


Provision for losses on unfunded lending commitments














9



9


Balance as of September 30, 2019










4



4



149



153


Combined allowance and reserve as of September 30, 2019


$

4,870



$

400



$

5,270



$

952



$

59



$

1,011



$

909



$

7,190






Nine Months Ended September 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


(4,635)



(389)



(5,024)



(1,318)



(65)



(1,383)



(109)



(6,516)


Recoveries


1,036



153



1,189



726



13



739



19



1,947


Net charge-offs


(3,599)



(236)



(3,835)



(592)



(52)



(644)



(90)



(4,569)


Provision for loan and lease losses


3,325



246



3,571



554



49



603



213



4,387


Allowance build (release) for loan and lease losses


(274)



10



(264)



(38)



(3)



(41)



123



(182)


Other changes(5)




(1)



(1)











(1)


Balance as of September 30, 2019


4,870



400



5,270



952



55



1,007



760



7,037


Reserve for unfunded lending commitments:

















Balance as of December 31, 2018










4



4



118



122


Provision for losses on unfunded lending commitments














31



31


Balance as of September 30, 2019










4



4



149



153


Combined allowance and reserve as of September 30, 2019


$

4,870



$

400



$

5,270



$

952



$

59



$

1,011



$

909



$

7,190


 


 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results




Three Months Ended September 30, 2019


Nine Months Ended September 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


$

3,546



$

1,682



$

486



$

23



$

5,737



$

10,667



$

5,070



$

1,489



$

48



$

17,274


Non-interest income (loss)


870



165



221



(34)



1,222



2,858



491



608



(65)



3,892


Total net revenue (loss)


4,416



1,847



707



(11)



6,959



13,525



5,561



2,097



(17)



21,166


Provision for credit losses


1,087



203



93





1,383



3,571



603



244





4,418


Non-interest expense


2,360



985



414



113



3,872



6,784



2,981



1,258



299



11,322


Income (loss) from continuing operations before income taxes


969



659



200



(124)



1,704



3,170



1,977



595



(316)



5,426


Income tax provision (benefit)


235



154



46



(60)



375



747



461



138



(275)



1,071


Income (loss) from continuing operations, net of tax


$

734



$

505



$

154



$

(64)



$

1,329



$

2,423



$

1,516



$

457



$

(41)



$

4,355

























Three Months Ended June 30, 2019











(Dollars in millions)


Credit
Card


Consumer
Banking


Commercial
Banking(6)(7)


Other(6)(7)


Total











Net interest income (loss)


$

3,531



$

1,709



$

514



$

(8)



$

5,746












Non-interest income (loss)


1,038



166



200



(26)



1,378












Total net revenue (loss)


4,569



1,875



714



(34)



7,124












Provision for credit losses


1,095



165



82





1,342












Non-interest expense


2,253



1,002



427



97



3,779












Income (loss) from continuing operations before income taxes


1,221



708



205



(131)



2,003












Income tax provision (benefit)


283



165



48



(109)



387












Income (loss) from continuing operations, net of tax


$

938



$

543



$

157



$

(22)



$

1,616



































Three Months Ended September 30, 2018


Nine Months Ended September 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


$

3,596



$

1,636



$

513



$

41



$

5,786



$

10,550



$

4,860



$

1,536



$

109



$

17,055


Non-interest income (loss)


893



155



189



(61)



1,176



2,634



504



585



285



4,008


Total net revenue (loss)


4,489



1,791



702



(20)



6,962



13,184



5,364



2,121



394



21,063


Provision (benefit) for credit losses


1,031



184



54



(1)



1,268



3,658



535



74



(49)



4,218


Non-interest expense


2,103



979



408



283



3,773



6,046



2,942



1,220



562



10,770


Income (loss) from continuing operations before income taxes


1,355



628



240



(302)



1,921



3,480



1,887



827



(119)



6,075


Income tax provision (benefit)


315



146



56



(97)



420



810



440



193



(129)



1,314


Income (loss) from continuing operations, net of tax


$

1,040



$

482



$

184



$

(205)



$

1,501



$

2,670



$

1,447



$

634



$

10



$

4,761























 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business














2019 Q3 vs.


Nine Months Ended September 30,



2019


2019


2019


2018


2018


2019


2018






2019 vs.

(Dollars in millions, except as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Credit Card





















Earnings:





















Net interest income


$

3,546



$

3,531



$

3,590



$

3,617



$

3,596





(1)

%


$

10,667



$

10,550



1

%

Non-interest income


870



1,038



950



886



893



(16)

%


(3)



2,858



2,634



9


Total net revenue


4,416



4,569



4,540



4,503



4,489



(3)



(2)



13,525



13,184



3


Provision for credit losses


1,087



1,095



1,389



1,326



1,031



(1)



5



3,571



3,658



(2)


Non-interest expense


2,360



2,253



2,171



2,496



2,103



5



12



6,784



6,046



12


Income from continuing operations before income taxes


969



1,221



980



681



1,355



(21)



(28)



3,170



3,480



(9)


Income tax provision


235



283



229



160



315



(17)



(25)



747



810



(8)


Income from continuing operations, net of tax


$

734



$

938



$

751



$

521



$

1,040



(22)



(29)



$

2,423



$

2,670



(9)


Selected performance metrics:





















Period-end loans held for investment


$

113,681



$

112,141



$

109,836



$

116,361



$

110,685



1



3



$

113,681



$

110,685



3


Average loans held for investment


112,371



110,798



111,456



112,349



109,510



1



3



111,545



108,968



2


Average yield on loans held for investment(8)


15.55

%


15.66

%


15.77

%


15.63

%


15.79

%


(11)

bps


(24)

bps


15.66

%


15.37

%


29

bps

Total net revenue margin(9)


15.72



16.50



16.29



16.03



16.40



(78)



(68)



16.17



16.13



4


Net charge-off rate(2)


4.09



4.76



4.90



4.61



4.15



(67)



(6)



4.58



4.62



(4)


30+ day performing delinquency rate


3.69



3.40



3.71



4.00



3.78



29



(9)



3.69



3.78



(9)


30+ day delinquency rate


3.71



3.42



3.72



4.01



3.80



29



(9)



3.71



3.80



(9)


Nonperforming loan rate(3)


0.02



0.02



0.02



0.02



0.02







0.02



0.02




Purchase volume(10)


$

108,034



$

106,903



$

93,197



$

105,696



$

97,469



1

%


11

%


$

308,134



$

281,406



9

%
























2019 Q3 vs.


Nine Months Ended September 30,



2019


2019


2019


2018


2018


2019


2018






2019 vs.

(Dollars in millions, except as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Domestic Card





















Earnings:





















Net interest income


$

3,299



$

3,220



$

3,273



$

3,309



$

3,280



2

%


1

%


$

9,792



$

9,617



2

%

Non-interest income


878



971



873



828



819



(10)



7



2,722



2,411



13


Total net revenue


4,177



4,191



4,146



4,137



4,099





2



12,514



12,028



4


Provision for credit losses


1,010



1,024



1,291



1,229



950



(1)



6



3,325



3,424



(3)


Non-interest expense


2,076



2,034



1,949



2,216



1,890



2



10



6,059



5,405



12


Income from continuing operations before income taxes


1,091



1,133



906



692



1,259



(4)



(13)



3,130



3,199



(2)


Income tax provision


254



264



211



162



293



(4)



(13)



729



745



(2)


Income from continuing operations, net of tax


$

837



$

869



$

695



$

530



$

966



(4)



(13)



$

2,401



$

2,454



(2)


Selected performance metrics:





















Period-end loans held for investment


$

104,664



$

102,959



$

101,052



$

107,350



$

101,564



2



3



$

104,664



$

101,564



3


Average loans held for investment


103,426



101,930



102,667



103,391



100,566



1



3



102,677



99,970



3


Average yield on loans held for investment(8)


15.74

%


15.60

%


15.69

%


15.58

%


15.73

%


14

bps


1

bps


15.67

%


15.29

%


38

bps

Total net revenue margin(9)


16.15



16.45



16.15



16.01



16.30



(30)



(15)



16.25



16.04



21


Net charge-off rate(2)


4.12



4.86



5.04



4.64



4.35



(74)



(23)



4.67



4.78



(11)


30+ day delinquency rate


3.71



3.40



3.72



4.04



3.80



31



(9)



3.71



3.80



(9)


Purchase volume(10)


$

99,087



$

98,052



$

85,738



$

96,818



$

89,205



1

%


11

%


$

282,878



$

257,340



10

%

Refreshed FICO scores:(11)





















Greater than 660


68

%


68

%


66

%


67

%


67

%




1



68

%


67

%


1


660 or below


32



32



34



33



33





(1)



32



33



(1)


Total


100

%


100

%


100

%


100

%


100

%






100

%


100

%



 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business














2019 Q3 vs.


Nine Months Ended September 30,



2019


2019


2019


2018


2018


2019


2018






2019 vs.

(Dollars in millions, except as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Consumer Banking





















Earnings:





















Net interest income


$

1,682



$

1,709



$

1,679



$

1,689



$

1,636



(2)

%


3

%


$

5,070



$

4,860



4

%

Non-interest income


165



166



160



159



155



(1)



6



491



504



(3)


Total net revenue


1,847



1,875



1,839



1,848



1,791



(1)



3



5,561



5,364



4


Provision for credit losses


203



165



235



303



184



23



10



603



535



13


Non-interest expense


985



1,002



994



1,085



979



(2)



1



2,981



2,942



1


Income from continuing operations before income taxes


659



708



610



460



628



(7)



5



1,977



1,887



5


Income tax provision


154



165



142



107



146



(7)



5



461



440



5


Income from continuing operations, net of tax


$

505



$

543



$

468



$

353



$

482



(7)



5



$

1,516



$

1,447



5


Selected performance metrics:





















Period-end loans held for investment(1)


$

62,015



$

60,327



$

59,248



$

59,205



$

59,329



3



5



$

62,015



$

59,329



5


Average loans held for investment(1)


61,269



59,858



59,065



59,342



59,220



2



3



60,072



66,841



(10)


Average yield on loans held for investment(8)


8.47

%


8.36

%


8.15

%


8.14

%


8.03

%


11

bps


44

bps


8.33

%


7.36

%


97

bps

Auto loan originations


$

8,175



$

7,327



$

6,222



$

5,932



$

6,643



12

%


23

%


$

21,723



$

20,345



7

%

Period-end deposits


206,423



205,220



205,439



198,607



196,635



1



5



206,423



196,635



5


Average deposits


204,933



204,164



201,072



196,348



194,687





5



203,404



191,942



6


Average deposits interest rate


1.31

%


1.26

%


1.18

%


1.10

%


1.00

%


5

bps


31

bps


1.25

%


0.89

%


36

bps

Net charge-off rate


1.64



1.15



1.49



2.01



1.77



49



(13)



1.43



1.36



7


30+ day performing delinquency rate


6.23



5.87



5.55



6.67



6.01



36



22



6.23



6.01



22


30+ day delinquency rate


6.86



6.41



6.02



7.36



6.61



45



25



6.86



6.61



25


Nonperforming loan rate(3)


0.74



0.66



0.59



0.81



0.72



8



2



0.74



0.72



2


Nonperforming asset rate(4)


0.83



0.75



0.68



0.90



0.82



8



1



0.83



0.82



1


Auto—At origination FICO scores:(12)





















Greater than 660


48

%


49

%


49

%


50

%


50

%


(1)

%


(2)

%


48

%


50

%


(2)

%

621 - 660


20



19



19



19



19



1



1



20



19



1


620 or below


32



32



32



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 Q3 vs.


Nine Months Ended September 30,



2019


2019


2019


2018


2018


2019


2018






2019 vs.

(Dollars in millions, except as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Commercial Banking





















Earnings:





















Net interest income


$

486



$

514



$

489



$

508



$

513



(5)

%


(5)

%


$

1,489



$

1,536



(3)

%

Non-interest income


221



200



187



159



189



11



17



608



585



4


Total net revenue(6)(7)


707



714



676



667



702



(1)



1



2,097



2,121



(1)


Provision for credit losses


93



82



69



9



54



13



72



244



74



230


Non-interest expense


414



427



417



434



408



(3)



1



1,258



1,220



3


Income from continuing operations before income taxes


200



205



190



224



240



(2)



(17)



595



827



(28)


Income tax provision


46



48



44



52



56



(4)



(18)



138



193



(28)


Income from continuing operations, net of tax


$

154



$

157



$

146



$

172



$

184



(2)



(16)



$

457



$

634



(28)


Selected performance metrics:





















Period-end loans held for investment


$

73,659



$

71,992



$

71,189



$

70,333



$

68,747



2



7



$

73,659



$

68,747



7


Average loans held for investment


72,507



71,997



71,438



69,680



68,036



1



7



71,985



66,538



8


Average yield on loans held for investment(6)(8)


4.45

%


4.75

%


4.62

%


4.67

%


4.55

%


(30)

bps


(10)

bps


4.61

%


4.38

%


23

bps

Period-end deposits


$

30,923



$

30,761



$

31,248



$

29,480



$

30,474



1

%


1

%


$

30,923



$

30,474



1

%

Average deposits


30,693



31,364



30,816



30,680



31,061



(2)



(1)



30,957



32,679



(5)


Average deposits interest rate


1.25

%


1.28

%


1.11

%


0.95

%


0.79

%


(3)

bps


46

bps


1.21

%


0.65

%


56

bps

Net charge-off rate


0.33



0.09



0.08



0.10



0.16



24



17



0.17



0.08



9


Nonperforming loan rate(3)


0.61



0.50



0.53



0.44



0.38



11



23



0.61



0.38



23


Nonperforming asset rate(4)


0.61



0.50



0.53



0.45



0.41



11



20



0.61



0.41



20


Risk category:(13)





















Noncriticized


$

71,144



$

69,390



$

68,594



$

68,043



$

65,926



3

%


8

%


$

71,144



$

65,926



8

%

Criticized performing


2,035



2,211



2,094



1,848



2,204



(8)



(8)



2,035



2,204



(8)


Criticized nonperforming


449



360



378



312



259



25



73



449



259



73


PCI loans


31



31



123



130



358





(91)



31



358



(91)


Total commercial banking loans


$

73,659



$

71,992



$

71,189



$

70,333



$

68,747



2



7



$

73,659



$

68,747



7


Risk category as a percentage of period-end loans held for investment:(13)

























Noncriticized


96.6

%


96.4

%


96.4

%


96.8

%


95.9

%


20

bps


70

bps


96.6

%


95.9

%


70

bps

Criticized performing


2.8



3.1



2.9



2.6



3.2



(30)



(40)



2.8



3.2



(40)


Criticized nonperforming


0.6



0.5



0.5



0.4



0.4



10



20



0.6



0.4



20


PCI loans






0.2



0.2



0.5





(50)





0.5



(50)


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














2019 Q3 vs.


Nine Months Ended September 30,



2019


2019


2019


2018


2018


2019


2018






2019 vs.

(Dollars in millions)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Other





















Earnings:





















Net interest income (loss)


$

23



$

(8)



$

33



$

6



$

41



**



(44)

%


$

48



$

109



(56)

%

Non-interest income (loss)


(34)



(26)



(5)



(11)



(61)



31

%


(44)



(65)



285



**


Total net revenue (loss)(6)(7)


(11)



(34)



28



(5)



(20)



(68)



(45)



(17)



394



**


Benefit for credit losses










(1)





**





(49)



**


Non-interest expense(14)(15)


113



97



89



117



283



16



(60)



299



562



(47)


Loss from continuing operations before income taxes


(124)



(131)



(61)



(122)



(302)



(5)



(59)



(316)



(119)



166


Income tax benefit


(60)



(109)



(106)



(340)



(97)



(45)



(38)



(275)



(129)



113


Income (loss) from continuing operations, net of tax


$

(64)



$

(22)



$

45



$

218



$

(205)



191



(69)



$

(41)



$

10



**


Selected performance metrics:





















Average loans held for investment


















$

22



**


Period-end deposits


$

19,802



$

18,554



$

18,420



$

21,677



$

20,086



7



(1)



$

19,802



20,086



(1)


Average deposits


19,456



18,106



19,522



20,635



20,972



7



(7)



19,028



22,311



(15)


Total





















Earnings:





















Net interest income


$

5,737



$

5,746



$

5,791



$

5,820



$

5,786





(1)

%


$

17,274



$

17,055



1

%

Non-interest income


1,222



1,378



1,292



1,193



1,176



(11)

%


4



3,892



4,008



(3)


Total net revenue


6,959



7,124



7,083



7,013



6,962



(2)





21,166



21,063




Provision for credit losses


1,383



1,342



1,693



1,638



1,268



3



9



4,418



4,218



5


Non-interest expense


3,872



3,779



3,671



4,132



3,773



2



3



11,322



10,770



5


Income from continuing operations before income taxes


1,704



2,003



1,719



1,243



1,921



(15)



(11)



5,426



6,075



(11)


Income tax provision (benefit)


375



387



309



(21)



420



(3)



(11)



1,071



1,314



(18)


Income from continuing operations, net of tax


$

1,329



$

1,616



$

1,410



$

1,264



$

1,501



(18)



(11)



$

4,355



$

4,761



(9)


Selected performance metrics:





















Period-end loans held for investment


$

249,355



$

244,460



$

240,273



$

245,899



$

238,761



2



4



$

249,355



$

238,761



4


Average loans held for investment


246,147



242,653



241,959



241,371



236,766



1



4



243,602



242,369



1


Period-end deposits


257,148



254,535



255,107



249,764



247,195



1



4



257,148



247,195



4


Average deposits


255,082



253,634



251,410



247,663



246,720



1



3



253,389



246,932



3



 

 

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.

(15)

Includes $22 million of net Cybersecurity Incident expenses in Q3 2019, consisting of $49 million of expenses and $27 million of probable insurance recoveries.

**

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,
2019


June 30,
2019


March 31,
2019


December 31,
2018


September 30,
2018

Regulatory Capital Metrics











Common equity excluding AOCI


$

51,959



$

51,236



$

49,781



$

48,570



$

48,154


Adjustments:











AOCI(2)


453



170



(660)



(1,263)



(1,877)


Goodwill, net of related deferred tax liabilities


(14,439)



(14,365)



(14,369)



(14,373)



(14,345)


Intangible assets, net of related deferred tax liabilities


(180)



(194)



(223)



(254)



(284)


Other


(588)



(401)



113



391



817


Common equity Tier 1 capital


$

37,205



$

36,446



$

34,642



$

33,071



$

32,465


Tier 1 capital


$

43,028



$

40,806



$

39,002



$

37,431



$

36,826


Total capital(3)


50,174



47,919



46,042



44,645



43,947


Risk-weighted assets


298,082



295,255



291,483



294,950



288,694


Adjusted average assets(4)


360,266



356,518



355,781



350,606



346,297


Capital Ratios











Common equity Tier 1 capital(5)


12.5

%


12.3

%


11.9

%


11.2

%


11.2

%

Tier 1 capital(6)


14.4



13.8



13.4



12.7



12.8


Total capital(7)


16.8



16.2



15.8



15.1



15.2


Tier 1 leverage(4)


11.9



11.4



11.0



10.7



10.6


Tangible common equity ("TCE")(8)


10.3



10.2



9.6



9.1



9.0


 

 

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


2019


Nine Months Ended



Q3


Q2


Q1


September 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


Reported
Results


Adj.(9)


Adjusted
Results

Selected income statement data:

























Net interest income


$

5,737



$

67



$

5,804



$

5,746





$

5,746



$

5,791





$

5,791



$

17,274



$

67



$

17,341


Non-interest income


1,222



73



1,295



1,378



$

1



1,379



1,292





1,292



3,892



74



3,966


Total net revenue


6,959



140



7,099



7,124



1



7,125



7,083





7,083



21,166



141



21,307


Provision for credit losses


1,383





1,383



1,342





1,342



1,693





1,693



4,418





4,418


Non-interest expense


3,872



(178)



3,694



3,779



(81)



3,698



3,671



$

(25)



3,646



11,322



(284)



11,038


Income from continuing operations before income taxes


1,704



318



2,022



2,003



82



2,085



1,719



25



1,744



5,426



425



5,851


Income tax provision


375



21



396



387



19



406



309



6



315



1,071



46



1,117


Income from continuing operations, net of tax


1,329



297



1,626



1,616



63



1,679



1,410



19



1,429



4,355



379



4,734


Income from discontinued operations, net of tax


4





4



9





9



2





2



15





15


Net income


1,333



297



1,630



1,625



63



1,688



1,412



19



1,431



4,370



379



4,749


Dividends and undistributed earnings allocated to participating securities(10)


(10)



(2)



(12)



(12)



(1)



(13)



(12)





(12)



(34)



(3)



(37)


Preferred stock dividends


(53)





(53)



(80)





(80)



(52)





(52)



(185)





(185)


Net income available to common stockholders


$

1,270



$

295



$

1,565



$

1,533



$

62



$

1,595



$

1,348



$

19



$

1,367



$

4,151



$

376



$

4,527


Selected performance metrics:

























Diluted EPS(10)


$

2.69



$

0.63



$

3.32



$

3.24



$

0.13



$

3.37



$

2.86



$

0.04



$

2.90



$

8.79



$

0.80



$

9.59


Efficiency ratio


55.64

%


(360)

bps


52.04

%


53.05

%


(115)

bps


51.90

%


51.83

%


(35)

bps


51.48

%


53.49

%


(169)

bps


51.80

%

Operating efficiency ratio


48.44



(346)



44.98



45.38



(114)



44.24



44.53



(35)



44.18



46.10



(164)



44.46






2018


2018


2018


Nine Months Ended



Q3


Q2


Q1


September 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


Reported
Results


Adj.(9)


Adjusted
Results

Selected income statement data:

























Net interest income


$

5,786





$

5,786



$

5,551



$

26



$

5,577



$

5,718





$

5,718



$

17,055



$

26



$

17,081


Non-interest income


1,176



$

(155)



1,021



1,641



(361)



1,280



1,191



$

2



1,193



4,008



(514)



3,494


Total net revenue


6,962



(155)



6,807



7,192



(335)



6,857



6,909



2



6,911



21,063



(488)



20,575


Provision for credit losses


1,268



2



1,270



1,276



46



1,322



1,674





1,674



4,218



48



4,266


Non-interest expense


3,773



(186)



3,587



3,424



(45)



3,379



3,573



(17)



3,556



10,770



(248)



10,522


Income from continuing operations before income taxes


1,921



29



1,950



2,492



(336)



2,156



1,662



19



1,681



6,075



(288)



5,787


Income tax provision (benefit)


420



(33)



387



575



(92)



483



319



4



323



1,314



(121)



1,193


Income from continuing operations, net of tax


1,501



62



1,563



1,917



(244)



1,673



1,343



15



1,358



4,761



(167)



4,594


Income (loss) from discontinued operations, net of tax


1





1



(11)





(11)



3





3



(7)





(7)


Net income


1,502



62



1,564



1,906



(244)



1,662



1,346



15



1,361



4,754



(167)



4,587


Dividends and undistributed earnings allocated to participating securities(10)


(9)





(9)



(12)



2



(10)



(10)





(10)



(32)



1



(31)


Preferred stock dividends


(53)





(53)



(80)





(80)



(52)





(52)



(185)





(185)


Net income available to common stockholders


$

1,440



$

62



$

1,502



$

1,814



$

(242)



$

1,572



$

1,284



$

15



$

1,299



$

4,537



$

(166)



$

4,371


Selected performance metrics:

























Diluted EPS(10)


$

2.99



$

0.13



$

3.12



$

3.71



$

(0.49)



$

3.22



$

2.62



$

0.03



$

2.65



$

9.32



$

(0.34)



$

8.98


Efficiency ratio


54.19

%


(149)

bps


52.70

%


47.61

%


167

bps


49.28

%


51.72

%


(27)

bps


51.45

%


51.13

%


1

bps


51.14

%

Operating efficiency ratio


46.95



(166)



45.29



41.70



138



43.08



45.72



(26)



45.46



44.76



(15)



44.61


 

 

 

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


2019


2018


2018

(Dollars in millions)


Q3


Q2


Q1


Q4


Q3

Tangible Common Equity (Period-End)











Stockholders' equity


$

58,235



$

55,767



$

53,481



$

51,668



$

50,638


Goodwill and intangible assets(11)


(14,940)



(14,886)



(14,904)



(14,941)



(14,945)


Noncumulative perpetual preferred stock


(5,823)



(4,360)



(4,360)



(4,360)



(4,360)


Tangible common equity


$

37,472



$

36,521



$

34,217



$

32,367



$

31,333


Tangible Common Equity (Average)











Stockholders' equity


$

57,245



$

54,570



$

52,720



$

51,114



$

50,768


Goodwill and intangible assets(11)


(14,908)



(14,900)



(14,932)



(14,953)



(14,982)


Noncumulative perpetual preferred stock


(4,678)



(4,360)



(4,360)



(4,360)



(4,360)


Tangible common equity


$

37,659



$

35,310



$

33,428



$

31,801



$

31,426


Tangible Assets (Period-End)











Total assets


$

378,810



$

373,619



$

373,191



$

372,538



$

362,909


Goodwill and intangible assets(11)


(14,940)



(14,886)



(14,904)



(14,941)



(14,945)


Tangible assets


$

363,870



$

358,733



$

358,287



$

357,597



$

347,964


Tangible Assets (Average)











Total assets


$

374,905



$

371,095



$

370,394



$

365,243



$

360,937


Goodwill and intangible assets(11)


(14,908)



(14,900)



(14,932)



(14,953)



(14,982)


Tangible assets


$

359,997



$

356,195



$

355,462



$

350,290



$

345,955




__________


(1)        Regulatory capital metrics and capital ratios as of September 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


2019


Nine Months Ended


2018


2018


2018


Nine Months Ended

(Dollars in millions)


Q3


Q2


Q1


September 30, 2019


Q3


Q2


Q1


September 30, 2018

U.K. Payment Protection Insurance customer refund reserve build ("U.K. PPI Reserve")


$

212







$

212





$

49





$

49


Walmart launch and related integration expenses


84



$

54



$

25



163










Cybersecurity Incident expenses, net of insurance


22







22










Restructuring charges




28





28





15



$

19



34


Net gains on the sales of exited businesses










$

(141)



(400)





(541)


Legal reserve build










170







170


Total


318



82



25



425



29



(336)



19



(288)


Income tax provision (benefit)


21



19



6



46



(33)



(92)



4



(121)


Net income


$

297



$

63



$

19



$

379



$

62



$

(244)



$

15



$

(167)



(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.

 

Cision View original content:http://www.prnewswire.com/news-releases/capital-one-reports-third-quarter-2019-net-income-of-1-3-billion-or-2-69-per-share-300945171.html

SOURCE Capital One Financial Corporation