SEC Filing | Capital One Financial Corp.

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cof-20220426

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 8-K

____________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

April 26, 2022

Date of Report (Date of earliest event reported)

____________________________________

CAPITAL ONE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

____________________________________


Delaware		001-13300	54-1719854
(State or other jurisdiction of incorporation)		(Commission File Number)	(IRS Employer Identification No.)
1680 Capital One Drive,
McLean,	Virginia		22102
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (703) 720-1000

(Not applicable)

(Former name or former address, if changed since last report)

____________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock (par value $.01 per share)	COF	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I	COF PRI	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series J	COF PRJ	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K	COF PRK	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series L	COF PRL	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N	COF PRN	New York Stock Exchange
0.800% Senior Notes Due 2024	COF24	New York Stock Exchange
1.650% Senior Notes Due 2029	COF29	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On April 26, 2022, Capital One Financial Corporation (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2022. Copies of the Company’s press release and financial supplement are attached and furnished herewith as Exhibits 99.1 and 99.2 to this Form 8-K and are incorporated herein by reference.

Note: Information in this report (including Exhibits 99.1 and 99.2) furnished pursuant to Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.						Description
99.1						Press Release, dated April 26, 2022 - First Quarter 2022
99.2						Financial Supplement - First Quarter 2022
104						The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

Earnings Conference Call Webcast Information.

The Company will hold an earnings conference call on April 26, 2022 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. A replay of the webcast will be archived on the Company’s website through May 10, 2022 at 5:00 PM Eastern Time.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

CAPITAL ONE FINANCIAL CORPORATION

Date: April 26, 2022

By:

/s/ TIMOTHY P. GOLDEN

Timothy P. Golden

Controller and Principal Accounting Officer

Document

Exhibit 99.1

News Release

https://cdn.kscope.io/abd77ee669a0bd7c89de97a140d4af8a-earningsslidesvfinal1b58aa.jpg


Contacts:
Investor Relations		Media Relations
Jeff Norris	Danielle Dietz	Sie Soheili
jeff.norris@capitalone.com	danielle.dietz@capitalone.com	sie.soheili@capitalone.com

FOR IMMEDIATE RELEASE: April 26, 2022

Capital One Reports First Quarter 2022 Net Income of $2.4 billion,
or $5.62 per share

McLean, Va. (April 26, 2022) – Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2022 of $2.4 billion, or $5.62 per diluted common share, compared with net income of $2.4 billion, or $5.41 per diluted common share in the fourth quarter of 2021, and with net income of $3.3 billion, or $7.03 per diluted common share in the first quarter of 2021.

“We continued to deliver strong growth across our businesses in the first quarter,” said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. “We remain well-positioned to capitalize on opportunities that emerge as sweeping digital change and modern technology transform banking.”

The quarter included the following notable item:

(Dollars in millions, except per share data)

Pre-Tax
Impact

Diluted EPS
Impact

Gain on sale of partnership card portfolios

192

0.35

All comparisons below are for the first quarter of 2022 compared with the fourth quarter of 2021 unless otherwise noted.

First Quarter 2022 Income Statement Summary:

•Total net revenue increased 1 percent to $8.2 billion.

•Total non-interest expense decreased 3 percent to $4.6 billion:

◦8 percent decrease in marketing.

◦1 percent decrease in operating expenses.

Capital One First Quarter 2022 Earnings

Page 2

•Pre-provision earnings increased 5 percent to $3.6 billion.(1)

•Provision for credit losses increased $296 million to $677 million:

◦Net charge-offs of $767 million.

◦$119 million loan reserve release.

•Net interest margin of 6.49 percent, a decrease of 11 basis points.

•Efficiency ratio of 55.68 percent.

•Operating efficiency ratio of 44.45 percent.

First Quarter 2022 Balance Sheet Summary:

•Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.7 percent at March 31, 2022.

•Period-end loans held for investment in the quarter increased $3.1 billion, or 1 percent, to $280.5 billion.

◦Credit Card period-end loans decreased $810 million, or 1 percent, to $114.0 billion.

•Domestic Card period-end loans decreased $736 million, or 1 percent, to $108.0 billion.

◦Consumer Banking period-end loans increased $2.7 billion, or 3 percent, to $80.3 billion.

•Auto period-end loans increased $2.8 billion, or 4 percent, to $78.6 billion.

◦Commercial Banking period-end loans increased $1.3 billion, or 1 percent, to $86.2 billion.

•Average loans held for investment in the quarter increased $8.2 billion, or 3 percent, to $275.3 billion.

◦Credit Card average loans increased $2.9 billion, or 3 percent, to $111.5 billion.

•Domestic Card average loans increased $2.8 billion, or 3 percent, to $105.5 billion.

◦Consumer Banking average loans increased $1.2 billion, or 2 percent, to $78.7 billion.

•Auto average loans increased $1.6 billion, or 2 percent, to $76.9 billion.

◦Commercial Banking average loans increased $4.0 billion, or 5 percent, to $85.2 billion.

•Period-end total deposits increased $2.4 billion, or 1 percent, to $313.4 billion, while average deposits increased $2.3 billion, or 1 percent, to $309.6 billion.

•Interest-bearing deposits rate paid decreased 1 basis point to 0.32 percent.

(1)Pre-provision earnings is calculated based on the sum of net interest income and non-interest income, less non-interest expense for the period. Management believes that this financial metric is useful in enabling investors and others to assess the Company’s ability to generate income to cover credit losses through a credit cycle, which can vary significantly between periods.

Capital One First Quarter 2022 Earnings

Page 3

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 26, 2022 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 May 10, 2022 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, 2021.

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 $313.4 billion in deposits and $434.2 billion in total assets as of March 31, 2022. 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.

###

Document

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement(1)(2)

First Quarter 2022

Table of Contents


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

__________

(1)The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended March 31, 2022 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


											2022 Q1 vs.
(Dollars in millions, except per share data and as noted)	2022		2021		2021		2021		2021		2021		2021
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Income Statement
Net interest income	$	6,397	$	6,450	$	6,156	$	5,743	$	5,822	(1)	%	10	%
Non-interest income	1,776		1,668		1,674		1,631		1,291		6		38
Total net revenue(1)	8,173		8,118		7,830		7,374		7,113		1		15
Provision (benefit) for credit losses	677		381		(342)		(1,160)		(823)		78		**
Non-interest expense:
Marketing	918		999		751		620		501		(8)		83
Operating expense	3,633		3,679		3,435		3,346		3,239		(1)		12
Total non-interest expense	4,551		4,678		4,186		3,966		3,740		(3)		22
Income from continuing operations before income taxes	2,945		3,059		3,986		4,568		4,196		(4)		(30)
Income tax provision	542		633		882		1,031		869		(14)		(38)
Income from continuing operations, net of tax	2,403		2,426		3,104		3,537		3,327		(1)		(28)
Loss from discontinued operations, net of tax	—		(1)		—		(1)		(2)		**		**
Net income	2,403		2,425		3,104		3,536		3,325		(1)		(28)
Dividends and undistributed earnings allocated to participating securities(2)	(28)		(21)		(26)		(30)		(28)		33		—
Preferred stock dividends	(57)		(74)		(79)		(60)		(61)		(23)		(7)
Issuance cost for redeemed preferred stock(3)	—		(34)		(12)		—		—		**		—
Net income available to common stockholders	$	2,318	$	2,296	$	2,987	$	3,446	$	3,236	1		(28)
Common Share Statistics
Basic earnings per common share:(2)
Net income from continuing operations	$	5.65	$	5.43	$	6.81	$	7.65	$	7.06	4	%	(20)	%

Net income per basic common share	$	5.65	$	5.43	$	6.81	$	7.65	$	7.06	4		(20)
Diluted earnings per common share:(2)
Net income from continuing operations	$	5.62	$	5.41	$	6.78	$	7.62	$	7.03	4	%	(20)	%

Net income per diluted common share	$	5.62	$	5.41	$	6.78	$	7.62	$	7.03	4		(20)
Weighted-average common shares outstanding (in millions):
Basic	410.4		422.5		438.8		450.6		458.6		(3)	%	(11)	%
Diluted	412.2		424.3		440.5		452.3		460.1		(3)		(10)
Common shares outstanding (period-end, in millions)	399.0		413.9		430.4		446.1		456.8		(4)		(13)
Dividends declared and paid per common share	$	0.60	$	0.60	$	1.20	$	0.40	$	0.40	—		50
Tangible book value per common share (period-end)(4)	91.77		99.74		99.60		97.20		90.96		(8)		1


											2022 Q1 vs.
(Dollars in millions)	2022		2021		2021		2021		2021		2021		2021
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Balance Sheet (Period-End)
Loans held for investment	$	280,466	$	277,340	$	261,390	$	249,597	$	243,131	1	%	15	%
Interest-earning assets	398,241		397,341		387,208		387,295		392,485		—		1
Total assets	434,195		432,381		425,377		423,420		425,175		—		2
Interest-bearing deposits	275,648		272,937		269,134		271,314		276,325		1		—
Total deposits	313,429		310,980		305,938		306,308		310,328		1		1
Borrowings	45,358		43,086		37,501		36,343		38,450		5		18
Common equity	51,499		56,184		57,632		58,136		56,341		(8)		(9)
Total stockholders’ equity	56,345		61,029		63,544		64,624		61,188		(8)		(8)
Balance Sheet (Average Balances)
Loans held for investment	$	275,342	$	267,159	$	253,101	$	246,463	$	243,937	3	%	13	%
Interest-earning assets	394,082		390,868		387,766		390,129		388,572		1		1
Total assets	430,372		427,845		424,506		424,099		421,808		1		2
Interest-bearing deposits	271,823		269,951		269,278		273,476		273,358		1		(1)
Total deposits	309,597		307,272		305,035		308,217		305,056		1		1
Borrowings	42,277		39,943		37,464		37,054		39,911		6		6
Common equity	54,591		56,946		58,230		56,885		55,775		(4)		(2)
Total stockholders’ equity	59,437		62,498		64,682		62,376		60,623		(5)		(2)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated


																2022 Q1 vs.
(Dollars in millions, except as noted)	2022			2021			2021			2021			2021			2021		2021
	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Performance Metrics
Net interest income growth (period over period)	(1)		%	5		%	7		%	(1)		%	(1)		%	**		**
Non-interest income growth (period over period)	6			—			3			26			(12)			**		**
Total net revenue growth (period over period)	1			4			6			4			(3)			**		**
Total net revenue margin(5)	8.30			8.31			8.08			7.56			7.32			(1)	bps	98	bps
Net interest margin(6)	6.49			6.60			6.35			5.89			5.99			(11)		50
Return on average assets	2.23			2.27			2.92			3.34			3.16			(4)		(93)
Return on average tangible assets(7)	2.31			2.35			3.03			3.46			3.27			(4)		(96)
Return on average common equity(8)	16.98			16.13			20.52			24.24			23.22			85		(6)%
Return on average tangible common equity(9)	23.36			21.82			27.50			32.75			31.61			154		(8)
Non-interest expense as a percentage of average loans held for investment	6.61			7.00			6.62			6.44			6.13			(39)		48	bps
Efficiency ratio(10)	55.68			57.63			53.46			53.78			52.58			(195)		310
Operating efficiency ratio(11)	44.45			45.32			43.87			45.38			45.54			(87)		(109)
Effective income tax rate for continuing operations	18.4			20.7			22.1			22.6			20.7			(230)		(230)
Employees (period-end, in thousands)	51.5			50.8			50.8			52.0			51.7			1%		—	%
Credit Quality Metrics
Allowance for credit losses	$	11,308		$	11,430		$	11,573		$	12,346		$	14,017		(1)%		(19)%
Allowance coverage ratio	4.03		%	4.12		%	4.43		%	4.95		%	5.77		%	(9)	bps	(174)	bps
Net charge-offs	$	767		$	527		$	426		$	541		$	740		46%		4%
Net charge-off rate(12)	1.11		%	0.79		%	0.67		%	0.88		%	1.21		%	32	bps	(10)	bps
30+ day performing delinquency rate	2.08			2.25			1.97			1.75			1.82			(17)		26
30+ day delinquency rate	2.21			2.41			2.13			1.89			1.98			(20)		23
Capital Ratios(13)
Common equity Tier 1 capital	12.7		%	13.1		%	13.8		%	14.5		%	14.6		%	(40)	bps	(190)	bps
Tier 1 capital	14.1			14.5			15.7			16.6			16.2			(40)		(210)
Total capital	16.4			16.9			18.2			18.8			18.6			(50)		(220)
Tier 1 leverage	11.3			11.6			12.2			12.4			11.7			(30)		(40)
Tangible common equity (“TCE”)(14)	8.7			9.9			10.4			10.6			10.1			(120)		(140)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income


											2022 Q1 vs.
	2022		2021		2021		2021		2021		2021		2021
(Dollars in millions, except per share data and as noted)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Interest income:
Loans, including loans held for sale	$	6,367	$	6,451	$	6,205	$	5,753	$	5,854	(1)	%	9	%
Investment securities	402		368		317		370		391		9		3
Other	15		12		16		16		16		25		(6)
Total interest income	6,784		6,831		6,538		6,139		6,261		(1)		8
Interest expense:
Deposits	218		222		228		237		269		(2)		(19)
Securitized debt obligations	29		30		29		28		32		(3)		(9)
Senior and subordinated notes	131		121		116		122		129		8		2
Other borrowings	9		8		9		9		9		13		—
Total interest expense	387		381		382		396		439		2		(12)
Net interest income	6,397		6,450		6,156		5,743		5,822		(1)		10
Provision (benefit) for credit losses	677		381		(342)		(1,160)		(823)		78		**
Net interest income after provision for credit losses	5,720		6,069		6,498		6,903		6,645		(6)		(14)
Non-interest income:
Interchange fees, net	1,033		1,005		1,022		1,016		817		3		26
Service charges and other customer-related fees	400		435		407		384		352		(8)		14

Other	343		228		245		231		122		50		181
Total non-interest income	1,776		1,668		1,674		1,631		1,291		6		38
Non-interest expense:
Salaries and associate benefits	2,026		1,941		1,852		1,781		1,847		4		10
Occupancy and equipment	513		527		481		523		472		(3)		9
Marketing	918		999		751		620		501		(8)		83
Professional services	397		449		358		341		292		(12)		36
Communications and data processing	339		326		319		315		302		4		12
Amortization of intangibles	14		13		5		5		6		8		133
Other	344		423		420		381		320		(19)		8
Total non-interest expense	4,551		4,678		4,186		3,966		3,740		(3)		22
Income from continuing operations before income taxes	2,945		3,059		3,986		4,568		4,196		(4)		(30)
Income tax provision	542		633		882		1,031		869		(14)		(38)
Income from continuing operations, net of tax	2,403		2,426		3,104		3,537		3,327		(1)		(28)
Loss from discontinued operations, net of tax	—		(1)		—		(1)		(2)		**		**
Net income	2,403		2,425		3,104		3,536		3,325		(1)		(28)
Dividends and undistributed earnings allocated to participating securities(2)	(28)		(21)		(26)		(30)		(28)		33		—
Preferred stock dividends	(57)		(74)		(79)		(60)		(61)		(23)		(7)
Issuance cost for redeemed preferred stock(3)	—		(34)		(12)		—		—		**		—
Net income available to common stockholders	$	2,318	$	2,296	$	2,987	$	3,446	$	3,236	1		(28)


											2022 Q1 vs.
	2022		2021		2021		2021		2021		2021		2021
(Dollars in millions, except per share data and as noted)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Basic earnings per common share:(2)
Net income from continuing operations	$	5.65	$	5.43	$	6.81	$	7.65	$	7.06	4	%	(20)	%

Net income per basic common share	$	5.65	$	5.43	$	6.81	$	7.65	$	7.06	4		(20)
Diluted earnings per common share:(2)
Net income from continuing operations	$	5.62	$	5.41	$	6.78	$	7.62	$	7.03	4		(20)

Net income per diluted common share	$	5.62	$	5.41	$	6.78	$	7.62	$	7.03	4		(20)
Weighted-average common shares outstanding (in millions):
Basic common shares	410.4		422.5		438.8		450.6		458.6		(3)		(11)
Diluted common shares	412.2		424.3		440.5		452.3		460.1		(3)		(10)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets


											2022 Q1 vs.
	2022		2021		2021		2021		2021		2021		2021
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Assets:
Cash and cash equivalents:
Cash and due from banks	$	5,107	$	4,164	$	5,444	$	5,312	$	4,670	23	%	9	%
Interest-bearing deposits and other short-term investments	21,697		17,582		21,180		29,534		45,825		23		(53)
Total cash and cash equivalents	26,804		21,746		26,624		34,846		50,495		23		(47)
Restricted cash for securitization investors	281		308		234		242		1,779		(9)		(84)
Securities available for sale	89,076		95,261		98,149		101,766		99,165		(6)		(10)
Loans held for investment:
Unsecuritized loans held for investment	257,505		252,468		238,475		226,130		219,182		2		17
Loans held in consolidated trusts	22,961		24,872		22,915		23,467		23,949		(8)		(4)
Total loans held for investment	280,466		277,340		261,390		249,597		243,131		1		15
Allowance for credit losses	(11,308)		(11,430)		(11,573)		(12,346)		(14,017)		(1)		(19)
Net loans held for investment	269,158		265,910		249,817		237,251		229,114		1		17
Loans held for sale	1,155		5,888		6,300		6,522		2,896		(80)		(60)
Premises and equipment, net	4,238		4,210		4,204		4,227		4,277		1		(1)
Interest receivable	1,479		1,460		1,418		1,372		1,380		1		7
Goodwill	14,784		14,782		14,652		14,654		14,654		—		1
Other assets	27,220		22,816		23,979		22,540		21,415		19		27
Total assets	$	434,195	$	432,381	$	425,377	$	423,420	$	425,175	—		2


											2022 Q1 vs.
	2022		2021		2021		2021		2021		2021		2021
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Liabilities:
Interest payable	$	261	$	281	$	241	$	301	$	288	(7)	%	(9)	%
Deposits:
Non-interest-bearing deposits	37,781		38,043		36,804		34,994		34,003		(1)		11
Interest-bearing deposits	275,648		272,937		269,134		271,314		276,325		1		—
Total deposits	313,429		310,980		305,938		306,308		310,328		1		1
Securitized debt obligations	13,740		14,994		12,635		10,561		12,071		(8)		14
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	594		820		825		845		842		(28)		(29)
Senior and subordinated notes	26,976		27,219		23,983		24,878		25,467		(1)		6
Other borrowings	4,048		53		58		59		70		**		**
Total other debt	31,618		28,092		24,866		25,782		26,379		13		20
Other liabilities	18,802		17,005		18,153		15,844		14,921		11		26
Total liabilities	377,850		371,352		361,833		358,796		363,987		2		4

Stockholders’ equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	34,286		34,112		35,051		35,472		33,671		1		2
Retained earnings	53,099		51,006		48,944		46,461		43,167		4		23
Accumulated other comprehensive income (loss)	(4,093)		374		1,360		1,792		1,783		**		**
Treasury stock, at cost	(26,954)		(24,470)		(21,818)		(19,108)		(17,440)		10		55
Total stockholders’ equity	56,345		61,029		63,544		64,624		61,188		(8)		(8)
Total liabilities and stockholders’ equity	$	434,195	$	432,381	$	425,377	$	423,420	$	425,175	—		2

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 $192 million in Q1 2022, $151 million in Q4 2021, $123 million in Q3 2021, $175 million in Q2 2021 and $180 million in Q1 2021 for credit card finance charges and fees charged-off as uncollectible.

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

(3)On September 1, 2021, we redeemed all outstanding shares of our fixed-to-floating rate non-cumulative perpetual preferred stock Series E, which reduced our net income available to common shareholders by $12 million in Q3 2021. On December 1, 2021, we redeemed all outstanding shares of our fixed rate 5.20% non-cumulative perpetual preferred stock Series G, and our fixed rate 6.00% non-cumulative perpetual preferred stock Series H, which together reduced our net income available to common shareholders by $34 million in Q4 2021.

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

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

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

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

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

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

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

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

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

(13)Capital ratios as of the end of Q1 2022 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.

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

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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


	2022 Q1						2021 Q4						2021 Q1
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale	$	279,022	$	6,367	9.13	%	$	272,805	$	6,451	9.46	%	$	246,675	$	5,854	9.49	%
Investment securities	94,700		402		1.70		96,421		368		1.53		98,296		391		1.59
Cash equivalents and other	20,360		15		0.29		21,642		12		0.22		43,601		16		0.15
Total interest-earning assets	$	394,082	$	6,784	6.89		$	390,868	$	6,831	6.99		$	388,572	$	6,261	6.45
Interest-bearing liabilities:
Interest-bearing deposits	$	271,823	$	218	0.32		$	269,951	$	222	0.33		$	273,358	$	269	0.39
Securitized debt obligations	13,740		29		0.84		13,775		30		0.87		12,240		32		1.05
Senior and subordinated notes	26,481		131		1.98		25,454		121		1.90		26,968		129		1.91
Other borrowings and liabilities	3,633		9		1.00		2,279		8		1.50		2,210		9		1.62
Total interest-bearing liabilities	$	315,677	$	387	0.49		$	311,459	$	381	0.49		$	314,776	$	439	0.56
Net interest income/spread			$	6,397	6.40				$	6,450	6.50				$	5,822	5.89
Impact of non-interest-bearing funding					0.09						0.10						0.10
Net interest margin					6.49	%					6.60	%					5.99	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics


											2022 Q1 vs.
	2022		2021		2021		2021		2021		2021		2021
(Dollars in millions, except as noted)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	107,987	$	108,723	$	99,258	$	95,309	$	91,099	(1)	%	19	%
International card businesses	5,975		6,049		5,772		5,708		8,028		(1)		(26)
Total credit card	113,962		114,772		105,030		101,017		99,127		(1)		15
Consumer banking:
Auto	78,604		75,779		74,716		71,713		67,059		4		17
Retail banking	1,726		1,867		2,396		3,046		3,143		(8)		(45)
Total consumer banking	80,330		77,646		77,112		74,759		70,202		3		14
Commercial banking:
Commercial and multifamily real estate	34,354		35,262		33,096		29,616		30,008		(3)		14
Commercial and industrial	51,820		49,660		46,152		44,205		43,794		4		18
Total commercial banking	86,174		84,922		79,248		73,821		73,802		1		17

Total loans held for investment	$	280,466	$	277,340	$	261,390	$	249,597	$	243,131	1		15
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	105,536	$	102,717	$	96,309	$	91,535	$	92,594	3	%	14	%
International card businesses	5,944		5,871		5,737		8,139		7,940		1		(25)
Total credit card	111,480		108,588		102,046		99,674		100,534		3		11
Consumer banking:
Auto	76,892		75,284		73,296		69,543		66,185		2		16
Retail banking	1,797		2,160		2,700		3,162		3,049		(17)		(41)
Total consumer banking	78,689		77,444		75,996		72,705		69,234		2		14
Commercial banking:
Commercial and multifamily real estate	34,671		33,591		30,314		30,124		29,856		3		16
Commercial and industrial	50,502		47,536		44,745		43,960		44,313		6		14
Total commercial banking	85,173		81,127		75,059		74,084		74,169		5		15
Total average loans held for investment	$	275,342	$	267,159	$	253,101	$	246,463	$	243,937	3		13


											2022 Q1 vs.
	2022		2021		2021		2021		2021		2021		2021
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card	2.12	%	1.49	%	1.36	%	2.28	%	2.54	%	63	bps	(42)	bps
International card businesses	3.20		0.14		2.72		2.41		2.30		306		90
Total credit card	2.18		1.42		1.43		2.29		2.52		76		(34)
Consumer banking:
Auto	0.66		0.58		0.18		(0.12)		0.47		8		19
Retail banking	4.31		6.69		2.45		1.41		1.68		(238)		263
Total consumer banking	0.75		0.75		0.27		(0.06)		0.52		—		23
Commercial banking:
Commercial and multifamily real estate	—		—		0.01		0.04		0.06		—		(6)
Commercial and industrial	0.11		(0.03)		0.07		(0.21)		0.11		14		—
Total commercial banking	0.06		(0.02)		0.05		(0.11)		0.09		8		(3)
Total net charge-offs	1.11		0.79		0.67		0.88		1.21		32		(10)
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	2.32	%	2.22	%	1.93	%	1.68	%	2.24	%	10	bps	8	bps
International card businesses	3.58		3.42		3.27		2.89		2.51		16		107
Total credit card	2.38		2.28		2.00		1.75		2.26		10		12
Consumer banking:
Auto	3.85		4.32		3.65		3.26		3.12		(47)		73
Retail banking	0.74		1.92		1.15		0.79		1.02		(118)		(28)
Total consumer banking	3.78		4.26		3.58		3.16		3.03		(48)		75
Nonperforming Loans and Nonperforming Assets Rates(1)(2)
Credit card:
International card businesses	0.14	%	0.16	%	0.16	%	0.20	%	0.17	%	(2)	bps	(3)	bps
Total credit card	0.01		0.01		0.01		0.01		0.01		—		—
Consumer banking:
Auto	0.41		0.45		0.36		0.29		0.29		(4)		12
Retail banking	2.63		2.51		2.20		1.75		1.16		12		147
Total consumer banking	0.46		0.50		0.42		0.35		0.33		(4)		13
Commercial banking:
Commercial and multifamily real estate	0.98		1.09		0.87		1.02		0.78		(11)		20
Commercial and industrial	0.69		0.64		0.68		1.03		1.02		5		(33)
Total commercial banking	0.81		0.82		0.76		1.03		0.92		(1)		(11)
Total nonperforming loans	0.38		0.40		0.35		0.41		0.38		(2)		—
Total nonperforming assets	0.40		0.41		0.37		0.43		0.40		(1)		—

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



	Three Months Ended March 31, 2022
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2021	$	7,968	$	377	$	8,345	$	1,852	$	66	$	1,918	$	1,167	$	11,430
Charge-offs	(867)		(88)		(955)		(326)		(23)		(349)		(17)		(1,321)
Recoveries	308		40		348		199		4		203		3		554
Net charge-offs	(559)		(48)		(607)		(127)		(19)		(146)		(14)		(767)
Provision (benefit) for credit losses	559		(14)		545		127		3		130		(27)		648
Allowance build (release) for credit losses	—		(62)		(62)		—		(16)		(16)		(41)		(119)
Other changes(3)	—		(3)		(3)		—		—		—		—		(3)
Balance as of March 31, 2022	7,968		312		8,280		1,852		50		1,902		1,126		11,308
Reserve for unfunded lending commitments:
Balance as of December 31, 2021	—		—		—		—		—		—		165		165


Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		35		35

Balance as of March 31, 2022	—		—		—		—		—		—		200		200
Combined allowance and reserve as of March 31, 2022	$	7,968	$	312	$	8,280	$	1,852	$	50	$	1,902	$	1,326	$	11,508

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results


	Three Months Ended March 31, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(4)		Other(4)		Total
Net interest income (loss)	$	3,839	$	2,113	$	607	$	(162)	$	6,397
Non-interest income (loss)	1,458		105		277		(64)		1,776
Total net revenue (loss)	5,297		2,218		884		(226)		8,173
Provision (benefit) for credit losses	545		130		8		(6)		677
Non-interest expense	2,783		1,236		488		44		4,551
Income (loss) from continuing operations before income taxes	1,969		852		388		(264)		2,945
Income tax provision (benefit)	469		202		92		(221)		542
Income (loss) from continuing operations, net of tax	$	1,500	$	650	$	296	$	(43)	$	2,403

	Three Months Ended December 31, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(4)		Other(4)		Total
Net interest income (loss)	$	3,865	$	2,158	$	595	$	(168)	$	6,450
Non-interest income (loss)	1,261		142		345		(80)		1,668
Total net revenue (loss)	5,126		2,300		940		(248)		8,118
Provision (benefit) for credit losses	423		2		(44)		—		381
Non-interest expense	2,799		1,285		520		74		4,678
Income (loss) from continuing operations before income taxes	1,904		1,013		464		(322)		3,059
Income tax provision (benefit)	451		239		109		(166)		633
Income (loss) from continuing operations, net of tax	$	1,453	$	774	$	355	$	(156)	$	2,426

	Three Months Ended March 31, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(4)		Other(4)		Total
Net interest income (loss)	$	3,372	$	2,030	$	520	$	(100)	$	5,822
Non-interest income (loss)	1,029		141		240		(119)		1,291
Total net revenue (loss)	4,401		2,171		760		(219)		7,113
Provision (benefit) for credit losses	(492)		(126)		(203)		(2)		(823)
Non-interest expense	2,135		1,117		419		69		3,740
Income (loss) from continuing operations before income taxes	2,758		1,180		544		(286)		4,196
Income tax provision (benefit)	653		278		128		(190)		869
Income (loss) from continuing operations, net of tax	$	2,105	$	902	$	416	$	(96)	$	3,327

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business


																2022 Q1 vs.
	2022			2021			2021			2021			2021			2021		2021
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Credit Card
Earnings:
Net interest income	$	3,839		$	3,865		$	3,620		$	3,217		$	3,372		(1)%		14%
Non-interest income	1,458			1,261			1,263			1,253			1,029			16		42
Total net revenue	5,297			5,126			4,883			4,470			4,401			3		20
Provision (benefit) for credit losses	545			423			(198)			(635)			(492)			29		**
Non-interest expense	2,783			2,799			2,424			2,263			2,135			(1)		30
Income from continuing operations before income taxes	1,969			1,904			2,657			2,842			2,758			3		(29)
Income tax provision	469			451			627			672			653			4		(28)
Income from continuing operations, net of tax	$	1,500		$	1,453		$	2,030		$	2,170		$	2,105		3		(29)
Selected performance metrics:
Period-end loans held for investment	$	113,962		$	114,772		$	105,030		$	101,017		$	99,127		(1)		15
Average loans held for investment	111,480			108,588			102,046			99,674			100,534			3		11
Average yield on loans outstanding(5)	14.97		%	14.94		%	14.88		%	14.04		%	14.49		%	3	bps	48	bps
Total net revenue margin(6)	18.56			18.11			18.33			17.59			17.17			45		139
Net charge-off rate	2.18			1.42			1.43			2.29			2.52			76		(34)
30+ day performing delinquency rate	2.38			2.28			2.00			1.75			2.26			10		12
30+ day delinquency rate	2.39			2.29			2.00			1.75			2.27			10		12
Nonperforming loan rate(1)	0.01			0.01			0.01			0.01			0.01			—		—
Purchase volume(7)	$	133,662		$	149,982		$	136,614		$	132,676		$	108,333		(11)	%	23%


																2022 Q1 vs.
	2022			2021			2021			2021			2021			2021		2021
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Domestic Card
Earnings:
Net interest income	$	3,620		$	3,558		$	3,319		$	2,944		$	3,095		2%		17%
Non-interest income	1,248			1,190			1,200			1,183			959			5		30
Total net revenue	4,868			4,748			4,519			4,127			4,054			3		20
Provision (benefit) for credit losses	559			384			(200)			(561)			(491)			46		**
Non-interest expense	2,564			2,564			2,191			2,034			1,923			—		33
Income from continuing operations before income taxes	1,745			1,800			2,528			2,654			2,622			(3)		(33)
Income tax provision	414			424			597			626			619			(2)		(33)
Income from continuing operations, net of tax	$	1,331		$	1,376		$	1,931		$	2,028		$	2,003		(3)		(34)
Selected performance metrics:
Period-end loans held for investment	$	107,987		$	108,723		$	99,258		$	95,309		$	91,099		(1)		19
Average loans held for investment	105,536			102,717			96,309			91,535			92,594			3		14
Average yield on loans outstanding(5)	14.82		%	14.86		%	14.80		%	13.91		%	14.34		%	(4)	bps	48	bps
Total net revenue margin(6)	18.28			18.14			18.40			17.66			17.15			14		113
Net charge-off rate	2.12			1.49			1.36			2.28			2.54			63		(42)
30+ day performing delinquency rate	2.32			2.22			1.93			1.68			2.24			10		8
Purchase volume(7)	$	126,284		$	138,825		$	126,057		$	122,456		$	99,960		(9)%		26%
Refreshed FICO scores:(8)
Greater than 660	70		%	71		%	71		%	72		%	70		%	(1)		—
660 or below	30			29			29			28			30			1		—
Total	100		%	100		%	100		%	100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business


																2022 Q1 vs.
	2022			2021			2021			2021			2021			2021		2021
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Consumer Banking
Earnings:
Net interest income	$	2,113		$	2,158		$	2,159		$	2,101		$	2,030		(2)%		4%
Non-interest income	105			142			127			144			141			(26)		(26)
Total net revenue	2,218			2,300			2,286			2,245			2,171			(4)		2
Provision (benefit) for credit losses	130			2			(91)			(306)			(126)			**		**
Non-interest expense	1,236			1,285			1,186			1,123			1,117			(4)		11
Income from continuing operations before income taxes	852			1,013			1,191			1,428			1,180			(16)		(28)
Income tax provision	202			239			282			337			278			(15)		(27)
Income from continuing operations, net of tax	$	650		$	774		$	909		$	1,091		$	902		(16)		(28)
Selected performance metrics:
Period-end loans held for investment	$	80,330		$	77,646		$	77,112		$	74,759		$	70,202		3		14
Average loans held for investment	78,689			77,444			75,996			72,705			69,234			2		14
Average yield on loans held for investment(5)	7.17		%	7.55		%	7.78		%	7.99		%	8.16		%	(38)	bps	(99)	bps
Auto loan originations	$	11,713		$	9,721		$	11,570		$	12,959		$	8,833		20%		33%
Period-end deposits	258,359			256,407			252,387			251,155			254,001			1		2
Average deposits	255,265			253,372			251,307			252,488			249,499			1		2
Average deposits interest rate	0.29		%	0.30		%	0.30		%	0.31		%	0.36		%	(1)	bps	(7)	bps
Net charge-off (recovery) rate	0.75			0.75			0.27			(0.06)			0.52			—		23
30+ day performing delinquency rate	3.78			4.26			3.58			3.16			3.03			(48)		75
30+ day delinquency rate	4.13			4.66			3.88			3.40			3.25			(53)		88
Nonperforming loan rate(1)	0.46			0.50			0.42			0.35			0.33			(4)		13
Nonperforming asset rate(2)	0.52			0.56			0.47			0.40			0.39			(4)		13
Auto—At origination FICO scores:(9)
Greater than 660	51		%	50		%	49		%	48		%	47		%	1	%	4	%
621 - 660	20			20			20			20			20			—		—
620 or below	29			30			31			32			33			(1)		(4)
Total	100		%	100		%	100		%	100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business


																2022 Q1 vs.
	2022			2021			2021			2021			2021			2021		2021
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Commercial Banking
Earnings:
Net interest income	$	607		$	595		$	578		$	460		$	520		2%		17%
Non-interest income	277			345			306			257			240			(20)		15
Total net revenue(6)	884			940			884			717			760			(6)		16
Provision (benefit) for credit losses	8			(44)			(53)			(219)			(203)			**		**
Non-interest expense	488			520			459			417			419			(6)		16
Income from continuing operations before income taxes	388			464			478			519			544			(16)		(29)
Income tax provision	92			109			113			123			128			(16)		(28)
Income from continuing operations, net of tax	$	296		$	355		$	365		$	396		$	416		(17)		(29)
Selected performance metrics:
Period-end loans held for investment	$	86,174		$	84,922		$	79,248		$	73,821		$	73,802		1		17
Average loans held for investment	85,173			81,127			75,059			74,084			74,169			5		15
Average yield on loans held for investment(4)(5)	2.66		%	2.71		%	2.77		%	2.72		%	2.76		%	(5)	bps	(10)	bps
Period-end deposits	$	45,232		$	44,809		$	43,347		$	42,973		$	41,552		1%		9%
Average deposits	45,008			44,206			42,729			42,311			40,107			2		12
Average deposits interest rate	0.12		%	0.12		%	0.15		%	0.14		%	0.18		%	—		(6)	bps
Net charge-off (recovery) rate	0.06			(0.02)			0.05			(0.11)			0.09			8	bps	(3)
Nonperforming loan rate(1)	0.81			0.82			0.76			1.03			0.92			(1)		(11)
Nonperforming asset rate(2)	0.81			0.82			0.76			1.03			0.92			(1)		(11)
Risk category:(10)
Noncriticized	$	80,586		$	79,014		$	73,218		$	67,481		$	66,299		2%		22%
Criticized performing	4,893			5,209			5,429			5,581			6,821			(6)		(28)
Criticized nonperforming	695			699			601			759			682			(1)		2
Total commercial banking loans	$	86,174		$	84,922		$	79,248		$	73,821		$	73,802		1		17
Risk category as a percentage of period-end loans held for investment:(10)
Noncriticized	93.5		%	93.1		%	92.3		%	91.4		%	89.9		%	40	bps	360	bps
Criticized performing	5.7			6.1			6.9			7.6			9.2			(40)		(350)
Criticized nonperforming	0.8			0.8			0.8			1.0			0.9			—		(10)
Total commercial banking loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total


											2022 Q1 vs.
	2022		2021		2021		2021		2021		2021		2021
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Other
Earnings:
Net interest loss	$	(162)	$	(168)	$	(201)	$	(35)	$	(100)	(4)	%	62	%
Non-interest loss	(64)		(80)		(22)		(23)		(119)		(20)		(46)
Total net loss(4)	(226)		(248)		(223)		(58)		(219)		(9)		3
Benefit for credit losses	(6)		—		—		—		(2)		**		**
Non-interest expense(11)	44		74		117		163		69		(41)		(36)
Loss from continuing operations before income taxes	(264)		(322)		(340)		(221)		(286)		(18)		(8)
Income tax benefit	(221)		(166)		(140)		(101)		(190)		33		16
Loss from continuing operations, net of tax	$	(43)	$	(156)	$	(200)	$	(120)	$	(96)	(72)		(55)
Selected performance metrics:
Period-end deposits	$	9,838	$	9,764	$	10,204	$	12,180	$	14,775	1		(33)
Average deposits	9,324		9,694		10,999		13,418		15,450		(4)		(40)
Total
Earnings:
Net interest income	$	6,397	$	6,450	$	6,156	$	5,743	$	5,822	(1)	%	10	%
Non-interest income	1,776		1,668		1,674		1,631		1,291		6		38
Total net revenue	8,173		8,118		7,830		7,374		7,113		1		15
Provision (benefit) for credit losses	677		381		(342)		(1,160)		(823)		78		**
Non-interest expense	4,551		4,678		4,186		3,966		3,740		(3)		22
Income from continuing operations before income taxes	2,945		3,059		3,986		4,568		4,196		(4)		(30)
Income tax provision	542		633		882		1,031		869		(14)		(38)
Income from continuing operations, net of tax	$	2,403	$	2,426	$	3,104	$	3,537	$	3,327	(1)		(28)
Selected performance metrics:
Period-end loans held for investment	$	280,466	$	277,340	$	261,390	$	249,597	$	243,131	1		15
Average loans held for investment	275,342		267,159		253,101		246,463		243,937		3		13
Period-end deposits	313,429		310,980		305,938		306,308		310,328		1		1
Average deposits	309,597		307,272		305,035		308,217		305,056		1		1

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

(1)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.

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

(3)Primarily represents foreign currency translation adjustments.

(4)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.

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

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

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

(8)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.

(9)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.

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

(11)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)	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Regulatory Capital Metrics
Common equity excluding AOCI	$	57,390		$	58,206		$	58,705		$	58,969		$	57,607
Adjustments:
AOCI, net of tax(2)	(20)			(23)			(33)			(5)			(13)
Goodwill, net of related deferred tax liabilities	(14,559)			(14,562)			(14,435)			(14,440)			(14,444)
Intangible assets, net of related deferred tax liabilities	(94)			(108)			(84)			(76)			(81)
Other	(16)			(12)			(15)			(16)			(18)
Common equity Tier 1 capital	$	42,701		$	43,501		$	44,138		$	44,432		$	43,051
Tier 1 capital	$	47,547		$	48,346		$	50,049		$	50,920		$	47,898
Total capital(3)	55,059			56,089			57,851			57,932			54,780
Risk-weighted assets	336,739			332,673			318,729			307,334			295,209
Adjusted average assets(4)	418,957			415,141			411,216			411,032			408,596
Capital Ratios
Common equity Tier 1 capital(5)	12.7		%	13.1		%	13.8		%	14.5		%	14.6		%
Tier 1 capital(6)	14.1			14.5			15.7			16.6			16.2
Total capital(7)	16.4			16.9			18.2			18.8			18.6
Tier 1 leverage(4)	11.3			11.6			12.2			12.4			11.7
Tangible common equity (“TCE”)(8)	8.7			9.9			10.4			10.6			10.1

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.


	2022		2021		2021		2021		2021
(Dollars in millions, except per share data and as noted)	Q1		Q4		Q3		Q2		Q1
Adjusted diluted EPS:
Net income available to common stockholders (GAAP)	$	2,318	$	2,296	$	2,987	$	3,446	$	3,236
Legal reserve activity, including insurance recoveries	—		—		45		55		—


Adjusted net income available to common stockholders before income tax impacts (non-GAAP)	2,318		2,296		3,032		3,501		3,236
Income tax impacts	—		—		(11)		(13)		—

Adjusted net income available to common stockholders (non-GAAP)	$	2,318	$	2,296	$	3,021	$	3,488	$	3,236

Diluted weighted-average common shares outstanding (in millions) (GAAP)	412.2		424.3		440.5		452.3		460.1

Diluted EPS (GAAP)	$	5.62	$	5.41	$	6.78	$	7.62	$	7.03
Impact of adjustments noted above	—		—		0.08		0.09		—
Adjusted diluted EPS (non-GAAP)	$	5.62	$	5.41	$	6.86	$	7.71	$	7.03

Adjusted efficiency ratio:
Non-interest expense (GAAP)	$	4,551	$	4,678	$	4,186	$	3,966	$	3,740
Legal reserve activity, including insurance recoveries	—		—		(45)		(55)		—

Adjusted non-interest expense (non-GAAP)	$	4,551	$	4,678	$	4,141	$	3,911	$	3,740

Total net revenue (GAAP)	$	8,173	$	8,118	$	7,830	$	7,374	$	7,113




Efficiency ratio (GAAP)	55.68%		57.63%		53.46%		53.78%		52.58%
Impact of adjustments noted above	—		—		(57)bps		(74)bps		—
Adjusted efficiency ratio (non-GAAP)	55.68%		57.63%		52.89%		53.04%		52.58%

Adjusted operating efficiency ratio:
Operating expense (GAAP)	$	3,633	$	3,679	$	3,435	$	3,346	$	3,239
Legal reserve activity, including insurance recoveries	—		—		(45)		(55)		—

Adjusted operating expense (non-GAAP)	$	3,633	$	3,679	$	3,390	$	3,291	$	3,239

Total net revenue (GAAP)	$	8,173	$	8,118	$	7,830	$	7,374	$	7,113



Operating efficiency ratio (GAAP)	44.45%		45.32%		43.87%		45.38%		45.54%


	2022	2021	2021	2021	2021
(Dollars in millions, except per share data and as noted)	Q1	Q4	Q3	Q2	Q1
Impact of adjustments noted above	—	—	(57)bps	(75)bps	—
Adjusted operating efficiency ratio (non-GAAP)	44.45%	45.32%	43.30%	44.63%	45.54%

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.


	2022		2021		2021		2021		2021
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1
Tangible Common Equity (Period-End)
Stockholders’ equity	$	56,345	$	61,029	$	63,544	$	64,624	$	61,188
Goodwill and intangible assets(9)	(14,883)		(14,907)		(14,766)		(14,774)		(14,789)
Noncumulative perpetual preferred stock	(4,845)		(4,845)		(5,912)		(6,488)		(4,847)
Tangible common equity	$	36,617	$	41,277	$	42,866	$	43,362	$	41,552
Tangible Common Equity (Average)
Stockholders’ equity	$	59,437	$	62,498	$	64,682	$	62,376	$	60,623
Goodwill and intangible assets(9)	(14,904)		(14,847)		(14,777)		(14,788)		(14,807)
Noncumulative perpetual preferred stock	(4,845)		(5,552)		(6,452)		(5,491)		(4,847)
Tangible common equity	$	39,688	$	42,099	$	43,453	$	42,097	$	40,969
Tangible Assets (Period-End)
Total assets	$	434,195	$	432,381	$	425,377	$	423,420	$	425,175
Goodwill and intangible assets(9)	(14,883)		(14,907)		(14,766)		(14,774)		(14,789)
Tangible assets	$	419,312	$	417,474	$	410,611	$	408,646	$	410,386
Tangible Assets (Average)
Total assets	$	430,372	$	427,845	$	424,506	$	424,099	$	421,808
Goodwill and intangible assets(9)	(14,904)		(14,847)		(14,777)		(14,788)		(14,807)
Tangible assets	$	415,468	$	412,998	$	409,729	$	409,311	$	407,001

__________

(1)Regulatory capital metrics and capital ratios as of March 31, 2022 are preliminary and therefore subject to change.

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

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

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

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

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

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

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

(9)Includes impact of related deferred taxes.