SEC Filing | Capital One Financial Corp.

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cof-20240125

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

January 25, 2024

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 January 25, 2024, Capital One Financial Corporation (the “Company”) issued a press release announcing its financial results for the fourth quarter ended December 31, 2023. 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 January 2 5 , 202 4 - Fourth Quarter 2023
99.2						Financial Supplement - Fourth Quarter 2023
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 January 25, 2024 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 February 8, 2024 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: January 25, 2024

By:

/s/ TIMOTHY P. GOLDEN

Timothy P. Golden

SVP, Controller and Principal Accounting Officer

Document

Exhibit 99.1

News Release

https://cdn.kscope.io/fd1e0287fdf562e8a8354b047b90c570-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: January 25, 2024

Capital One Reports Fourth Quarter 2023 Net Income of $706 million,
or $1.67 per share

Net of adjusting items, Fourth Quarter 2023 Net Income of $2.24 per share(1)

McLean, Va. (January 25, 2024) – Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2023 of $706 million, or $1.67 per diluted common share, compared with net income of $1.8 billion, or $4.45 per diluted common share in the third quarter of 2023, and with net income of $1.2 billion, or $3.03 per diluted common share in the fourth quarter of 2022. Adjusted net income(1) for the fourth quarter of 2023 was $2.24 per diluted common share.

"We delivered solid results with strong top line growth in 2023," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "Our modern technology capabilities are driving resilient growth, enabling efficiency improvement, and putting us in a strong position to deliver long-term shareholder value."

The quarter included the following adjusting item:

(Dollars in millions, except per share data)

Pre-Tax
Impact

After-Tax Diluted EPS
Impact

FDIC special assessment

289

0.57

All comparisons below are for the fourth quarter of 2023 compared with the third quarter of 2023 unless otherwise noted.

Fourth Quarter 2023 Income Statement Summary:

•Total net revenue increased 1 percent to $9.5 billion.

•Total non-interest expense increased 18 percent to $5.7 billion:

◦29 percent increase in marketing.

◦15 percent increase in operating expenses.

•Pre-provision earnings(2) decreased 16 percent to $3.8 billion.

•Provision for credit losses increased $573 million to $2.9 billion:

•Net charge-offs of $2.5 billion.

•$326 million loan reserve build.

Capital One Fourth Quarter 2023 Earnings

Page 2

•Net interest margin of 6.73 percent, an increase of 4 basis points.

•Efficiency ratio of 60.14 percent.

◦Adjusted efficiency ratio(1) of 57.10 percent.

•Operating efficiency ratio of 46.95 percent.

◦Adjusted operating efficiency ratio(1) of 43.91 percent.

Fourth Quarter 2023 Balance Sheet Summary:

•Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.9 percent at December 31, 2023.

•Period-end loans held for investment in the quarter increased $5.7 billion, or 2 percent, to $320.5 billion.

◦Credit Card period-end loans increased $7.8 billion, or 5 percent, to $154.5 billion.

•Domestic Card period-end loans increased $7.3 billion, or 5 percent, to $147.7 billion.

◦Consumer Banking period-end loans decreased $1.4 billion, or 2 percent, to $75.4 billion.

•Auto period-end loans decreased $1.4 billion, or 2 percent, to $74.1 billion.

◦Commercial Banking period-end loans decreased $665 million, or 1 percent, to $90.5 billion.

•Average loans held for investment in the quarter increased $3.1 billion, or 1 percent, to $315.9 billion.

◦Credit Card average loans increased $4.6 billion, or 3 percent, to $148.6 billion.

•Domestic Card average loans increased $4.6 billion, or 3 percent, to $142.1 billion.

◦Consumer Banking average loans decreased $916 million, or 1 percent, to $76.2 billion.

•Auto average loans decreased $879 million, or 1 percent, to $74.9 billion.

◦Commercial Banking average loans decreased $531 million, or 1 percent, to $91.0 billion.

•Period-end total deposits increased $2.4 billion, or 1 percent, to $348.4 billion, while average deposits increased $315 million, or less than 1 percent, to $345.3 billion.

•Interest-bearing deposits rate paid increased 17 basis points to 3.47 percent.

2023 Full Year Income Statement Summary:

◦Total net revenue increased 7 percent to $36.8 billion.

◦Total non-interest expense increased 6 percent to $20.3 billion:

▪Marketing expense remained flat at $4.0 billion.

▪8 percent increase in operating expenses.

◦Pre-provision earnings(2) increased 9 percent to $16.5 billion.

◦Provision for credit losses increased $4.6 billion to $10.4 billion.

◦Net interest margin of 6.63 percent, a decrease of 4 basis points.

Capital One Fourth Quarter 2023 Earnings

Page 3

◦Efficiency ratio of 55.23 percent.

▪Adjusted efficiency ratio(1) of 54.44 percent.

◦Operating efficiency ratio of 44.33 percent.

▪Adjusted operating efficiency ratio(1) of 43.54 percent.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on January 25, 2024 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 February 8, 2024 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. Forward-looking statements often use words such as “will,” “anticipate,” “target,” “expect,” “think,” “estimate,” “intend,” “plan,” “goal,” “believe,” “forecast,” “outlook” or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. 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. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under “Part I—Item 1A. Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $348.4 billion in deposits and $478.5 billion in total assets as of December 31, 2023. 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 and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia 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.

###

(1) This is a non-GAAP measure. We believe non-GAAP measures 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. “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” in Exhibit 99.2 for a reconciliation of our selected reported results to these non-GAAP measures.

(2) Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on From 8-K on January 25, 2024 with the Securities and Exchange Commission (the “SEC”), “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.

Document

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement(1)(2)

Fourth Quarter 2023

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	14
	Table 10:	Financial & Statistical Summary—Credit Card Business	15
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	17
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	18
	Table 13:	Financial & Statistical Summary—Other and Total	19
Other
	Table 14:	Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)	20
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	21

__________

(1)The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Annual Report on Form 10-K for the period ended December 31, 2023 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. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation of any non-GAAP financial measures.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated


											2023 Q4				Year Ended December 31,
(Dollars in millions, except per share data and as noted)	2023		2023		2023		2023		2022		2023		2022						2023 vs.
	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2023		2022		2022
Income Statement
Net interest income	$	7,519	$	7,423	$	7,113	$	7,186	$	7,197	1	%	4	%	$	29,241	$	27,114	8	%
Non-interest income	1,987		1,943		1,899		1,717		1,843		2		8		7,546		7,136		6
Total net revenue(1)	9,506		9,366		9,012		8,903		9,040		1		5		36,787		34,250		7
Provision for credit losses	2,857		2,284		2,490		2,795		2,416		25		18		10,426		5,847		78
Non-interest expense:
Marketing	1,254		972		886		897		1,118		29		12		4,009		4,017		—
Operating expense	4,463		3,888		3,908		4,048		3,962		15		13		16,307		15,146		8
Total non-interest expense	5,717		4,860		4,794		4,945		5,080		18		13		20,316		19,163		6
Income from continuing operations before income taxes	932		2,222		1,728		1,163		1,544		(58)		(40)		6,045		9,240		(35)
Income tax provision	226		432		297		203		312		(48)		(28)		1,158		1,880		(38)


Net income	706		1,790		1,431		960		1,232		(61)		(43)		4,887		7,360		(34)
Dividends and undistributed earnings allocated to participating securities(2)	(10)		(28)		(23)		(16)		(14)		(64)		(29)		(77)		(88)		(13)
Preferred stock dividends	(57)		(57)		(57)		(57)		(57)		—		—		(228)		(228)		—

Net income available to common stockholders	$	639	$	1,705	$	1,351	$	887	$	1,161	(63)		(45)		$	4,582	$	7,044	(35)
Common Share Statistics
Basic earnings per common share:(2)


Net income per basic common share	$	1.67	$	4.46	$	3.53	$	2.32	$	3.03	(63)	%	(45)	%	$	11.98	$	17.98	(33)	%
Diluted earnings per common share:(2)


Net income per diluted common share	$	1.67	$	4.45	$	3.52	$	2.31	$	3.03	(62)	%	(45)	%	$	11.95	$	17.91	(33)	%
Weighted-average common shares outstanding (in millions):
Basic	381.9		382.5		382.8		382.6		382.6		—		—		382.4		391.8		(2)	%
Diluted	382.8		383.3		383.7		383.8		383.7		—		—		383.4		393.2		(2)
Common shares outstanding (period-end, in millions)	380.4		381.0		381.4		382.0		381.3		—		—		380.4		381.3		—
Dividends declared and paid per common share	$	0.60	$	0.60	$	0.60	$	0.60	$	0.60	—		—		$	2.40	$	2.40	—
Tangible book value per common share (period-end)(3)	99.78		87.97		90.07		90.86		86.11		13	%	16	%	99.78		86.11		16


											2023 Q4				Year Ended December 31,
(Dollars in millions)	2023		2023		2023		2023		2022		2023		2022						2023 vs.
	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2023		2022		2022
Balance Sheet (Period-End)
Loans held for investment	$	320,472	$	314,780	$	311,323	$	308,836	$	312,331	2	%	3	%	$	320,472	$	312,331	3	%
Interest-earning assets	449,701		445,428		441,250		445,166		427,248		1		5		449,701		427,248		5
Total assets	478,464		471,435		467,800		471,660		455,249		1		5		478,464		455,249		5
Interest-bearing deposits	320,389		317,217		314,393		318,641		300,789		1		7		320,389		300,789		7
Total deposits	348,413		346,011		343,705		349,827		332,992		1		5		348,413		332,992		5
Borrowings	49,856		49,247		50,258		48,777		48,715		1		2		49,856		48,715		2
Common equity	53,244		48,823		49,713		49,807		47,737		9		12		53,244		47,737		12
Total stockholders’ equity	58,089		53,668		54,559		54,653		52,582		8		10		58,089		52,582		10
Balance Sheet (Average Balances)
Loans held for investment	$	315,890	$	312,759	$	309,655	$	307,756	$	306,881	1	%	3	%	$	311,541	$	292,238	7	%
Interest-earning assets	446,929		443,532		439,139		435,199		421,051		1		6		441,238		406,646		9
Total assets	472,594		469,860		466,652		462,324		449,659		1		5		467,807		440,538		6
Interest-bearing deposits	316,808		316,032		313,207		308,788		292,793		—		8		313,737		277,208		13
Total deposits	345,328		345,013		343,678		340,123		326,558		—		6		343,554		313,551		10
Borrowings	51,070		49,736		48,468		48,016		49,747		3		3		49,332		51,006		(3)
Common equity	50,786		50,166		50,511		49,927		47,594		1		7		50,349		50,279		—
Total stockholders’ equity	55,632		55,012		55,357		54,773		52,439		1		6		55,195		55,125		—

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated


																2023 Q4				Year Ended December 31,
(Dollars in millions, except as noted)	2023			2023			2023			2023			2022			2023		2022								2023 vs.
	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2023			2022			2022
Performance Metrics
Net interest income growth (period over period)	1		%	4		%	(1)		%	—			3		%	**		**		8		%	12		%	**
Non-interest income growth (period over period)	2			2			11			(7)		%	2			**		**		6			14			**
Total net revenue growth (period over period)	1			4			1			(2)			3			**		**		7			13			**
Total net revenue margin(4)	8.51			8.45			8.21			8.18			8.59			6	bps	(8)	bps	8.34			8.42			(8)	bps
Net interest margin(5)	6.73			6.69			6.48			6.60			6.84			4		(11)		6.63			6.67			(4)
Return on average assets	0.60			1.52			1.23			0.83			1.10			(92)		(50)		1.04			1.67			(63)
Return on average tangible assets(6)	0.62			1.58			1.27			0.86			1.13			(96)		(51)		1.08			1.73			(65)
Return on average common equity(7)	5.03			13.59			10.70			7.11			9.76			(856)		(473)		9.10			14.01			(491)
Return on average tangible common equity(8)	7.20			19.59			15.30			10.15			14.22			(1,239)		(702)		13.04			19.91			(687)

Efficiency ratio(9)	60.14			51.89			53.20			55.54			56.19			825		395		55.23			55.95			(72)
Operating efficiency ratio(10)	46.95			41.51			43.36			45.47			43.83			544		312		44.33			44.22			11
Effective income tax rate for continuing operations	24.2			19.4			17.2			17.5			20.2			480		400		19.2			20.3			(110)
Employees (period-end, in thousands)	52.0			54.2			55.6			56.1			56.0			(4)%		(7)%		52.0			56.0			(7)%
Credit Quality Metrics
Allowance for credit losses	$	15,296		$	14,955		$	14,646		$	14,318		$	13,240		2%		16%		$	15,296		$	13,240		16%
Allowance coverage ratio	4.77		%	4.75		%	4.70		%	4.64		%	4.24		%	2	bps	53	bps	4.77		%	4.24		%	53	bps
Net charge-offs	$	2,533		$	1,999		$	2,185		$	1,697		$	1,430		27%		77%		$	8,414		$	3,973		112%
Net charge-off rate(11)	3.21		%	2.56		%	2.82		%	2.21		%	1.86		%	65	bps	135	bps	2.70		%	1.36		%	134	bps
30+ day performing delinquency rate	3.71			3.42			3.08			2.88			2.96			29		75		3.71			2.96			75
30+ day delinquency rate	3.99			3.71			3.36			3.09			3.21			28		78		3.99			3.21			78
Capital Ratios(12)
Common equity Tier 1 capital	12.9		%	13.0		%	12.7		%	12.5		%	12.5		%	(10)	bps	40	bps	12.9		%	12.5		%	40	bps
Tier 1 capital	14.2			14.3			14.0			13.9			13.9			(10)		30		14.2			13.9			30
Total capital	16.0			16.2			16.0			15.9			15.8			(20)		20		16.0			15.8			20
Tier 1 leverage	11.2			11.2			11.0			10.9			11.1			—		10		11.2			11.1			10
Tangible common equity (“TCE”)(13)	8.2			7.3			7.6			7.6			7.5			90		70		8.2			7.5			70

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income


											2023 Q4				Year Ended December 31,
(Dollars in millions, except as noted)	2023		2023		2023		2023		2022		2023		2022						2023 vs.
	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2023		2022		2022
Interest income:
Loans, including loans held for sale	$	9,934	$	9,696	$	9,057	$	8,723	$	8,360	2	%	19	%	$	37,410	$	28,910	29	%
Investment securities	669		627		639		615		548		7		22		2,550		1,884		35
Other	542		550		470		416		250		(1)		117		1,978		443		**
Total interest income	11,145		10,873		10,166		9,754		9,158		3		22		41,938		31,237		34
Interest expense:
Deposits	2,745		2,611		2,277		1,856		1,335		5		106		9,489		2,535		**
Securitized debt obligations	263		249		236		211		170		6		55		959		384		150
Senior and subordinated notes	608		579		528		489		430		5		41		2,204		1,074		105
Other borrowings	10		11		12		12		26		(9)		(62)		45		130		(65)
Total interest expense	3,626		3,450		3,053		2,568		1,961		5		85		12,697		4,123		**
Net interest income	7,519		7,423		7,113		7,186		7,197		1		4		29,241		27,114		8
Provision for credit losses	2,857		2,284		2,490		2,795		2,416		25		18		10,426		5,847		78
Net interest income after provision for credit losses	4,662		5,139		4,623		4,391		4,781		(9)		(2)		18,815		21,267		(12)
Non-interest income:
Interchange fees, net	1,207		1,234		1,213		1,139		1,177		(2)		3		4,793		4,606		4
Service charges and other customer-related fees	424		453		411		379		395		(6)		7		1,667		1,625		3
Net securities gains (losses)	(34)		—		—		—		—		**		—		(34)		(9)		**
Other	390		256		275		199		271		52		44		1,120		914		23
Total non-interest income	1,987		1,943		1,899		1,717		1,843		2		8		7,546		7,136		6
Non-interest expense:
Salaries and associate benefits	2,284		2,274		2,317		2,427		2,266		—		1		9,302		8,425		10
Occupancy and equipment	628		518		506		508		554		21		13		2,160		2,050		5
Marketing	1,254		972		886		897		1,118		29		12		4,009		4,017		—
Professional services	359		295		290		324		481		22		(25)		1,268		1,807		(30)
Communications and data processing	345		344		344		350		352		—		(2)		1,383		1,379		—
Amortization of intangibles	22		24		22		14		25		(8)		(12)		82		70		17
Other	825		433		429		425		284		91		190		2,112		1,415		49
Total non-interest expense	5,717		4,860		4,794		4,945		5,080		18		13		20,316		19,163		6
Income from continuing operations before income taxes	932		2,222		1,728		1,163		1,544		(58)		(40)		6,045		9,240		(35)
Income tax provision	226		432		297		203		312		(48)		(28)		1,158		1,880		(38)


Net income	706		1,790		1,431		960		1,232		(61)		(43)		4,887		7,360		(34)
Dividends and undistributed earnings allocated to participating securities(2)	(10)		(28)		(23)		(16)		(14)		(64)		(29)		(77)		(88)		(13)
Preferred stock dividends	(57)		(57)		(57)		(57)		(57)		—		—		(228)		(228)		—

Net income available to common stockholders	$	639	$	1,705	$	1,351	$	887	$	1,161	(63)		(45)		$	4,582	$	7,044	(35)



											2023 Q4				Year Ended December 31,
	2023		2023		2023		2023		2022		2023		2022						2023 vs.
	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2023		2022		2022
Basic earnings per common share:(2)


Net income per basic common share	$	1.67	$	4.46	$	3.53	$	2.32	$	3.03	(63)	%	(45)	%	$	11.98	$	17.98	(33)	%
Diluted earnings per common share:(2)


Net income per diluted common share	$	1.67	$	4.45	$	3.52	$	2.31	$	3.03	(62)	%	(45)	%	$	11.95	$	17.91	(33)	%
Weighted-average common shares outstanding (in millions):
Basic common shares	381.9		382.5		382.8		382.6		382.6		—		—		382.4		391.8		(2)%
Diluted common shares	382.8		383.3		383.7		383.8		383.7		—		—		383.4		393.2		(2)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets


											2023 Q4
	2023		2023		2023		2023		2022		2023		2022
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3		Q4
Assets:
Cash and cash equivalents:
Cash and due from banks	$	4,903	$	4,620	$	3,360	$	3,347	$	5,193	6	%	(6)	%
Interest-bearing deposits and other short-term investments	38,394		40,249		38,236		43,166		25,663		(5)		50
Total cash and cash equivalents	43,297		44,869		41,596		46,513		30,856		(4)		40
Restricted cash for securitization investors	458		435		452		460		400		5		15
Securities available for sale	79,117		74,837		78,412		81,925		76,919		6		3
Loans held for investment:
Unsecuritized loans held for investment	289,229		284,953		280,933		280,093		283,282		2		2
Loans held in consolidated trusts	31,243		29,827		30,390		28,743		29,049		5		8
Total loans held for investment	320,472		314,780		311,323		308,836		312,331		2		3
Allowance for credit losses	(15,296)		(14,955)		(14,646)		(14,318)		(13,240)		2		16
Net loans held for investment	305,176		299,825		296,677		294,518		299,091		2		2
Loans held for sale	854		742		1,211		363		203		15		**
Premises and equipment, net	4,375		4,378		4,359		4,365		4,351		—		1
Interest receivable	2,478		2,469		2,297		2,250		2,104		—		18
Goodwill	15,065		15,048		15,060		14,779		14,777		—		2
Other assets	27,644		28,832		27,736		26,487		26,548		(4)		4
Total assets	$	478,464	$	471,435	$	467,800	$	471,660	$	455,249	1		5


											2023 Q4
	2023		2023		2023		2023		2022		2023		2022
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3		Q4
Liabilities:
Interest payable	$	649	$	685	$	637	$	621	$	527	(5)	%	23	%
Deposits:
Non-interest-bearing deposits	28,024		28,794		29,312		31,186		32,203		(3)		(13)
Interest-bearing deposits	320,389		317,217		314,393		318,641		300,789		1		7
Total deposits	348,413		346,011		343,705		349,827		332,992		1		5
Securitized debt obligations	18,043		17,417		17,861		17,813		16,973		4		6
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	538		522		649		542		883		3		(39)
Senior and subordinated notes	31,248		31,283		31,627		30,398		30,826		—		1
Other borrowings	27		25		121		24		33		8		(18)
Total other debt	31,813		31,830		32,397		30,964		31,742		—		—
Other liabilities	21,457		21,824		18,641		17,782		20,433		(2)		5
Total liabilities	420,375		417,767		413,241		417,007		402,667		1		4

Stockholders’ equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	35,541		35,334		35,163		34,952		34,725		1		2
Retained earnings	60,945		60,529		59,028		57,898		57,184		1		7
Accumulated other comprehensive loss	(8,268)		(12,224)		(9,818)		(8,540)		(9,916)		(32)		(17)
Treasury stock, at cost	(30,136)		(29,978)		(29,821)		(29,664)		(29,418)		1		2
Total stockholders’ equity	58,089		53,668		54,559		54,653		52,582		8		10
Total liabilities and stockholders’ equity	$	478,464	$	471,435	$	467,800	$	471,660	$	455,249	1		5

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 $566 million in Q4 2023, $449 million in Q3 2023, $443 million in Q2 2023, $405 million in Q1 2023 and $321 million in Q4 2022 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)Tangible book value per common share is a non-GAAP measure calculated based on TCE 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 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 (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.

(7)Return on average common equity is calculated based on net income (loss) available to common stockholders less 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.

(8)Return on average tangible common equity is a non-GAAP measure calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average TCE. 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 Q4 2023 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.

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

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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


	2023 Q4						2023 Q3						2022 Q4
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale	$	316,670	$	9,934	12.55	%	$	313,461	$	9,696	12.37	%	$	307,852	$	8,360	10.86	%
Investment securities	88,650		669		3.02		87,845		627		2.86		87,110		548		2.52
Cash equivalents and other	41,609		542		5.21		42,226		550		5.21		26,089		250		3.84
Total interest-earning assets	$	446,929	$	11,145	9.97		$	443,532	$	10,873	9.81		$	421,051	$	9,158	8.70
Interest-bearing liabilities:
Interest-bearing deposits	$	316,808	$	2,745	3.47		$	316,032	$	2,611	3.30		$	292,793	$	1,335	1.82
Securitized debt obligations	18,022		263		5.84		17,649		249		5.63		16,478		170		4.13
Senior and subordinated notes	32,586		608		7.46		31,522		579		7.36		30,718		430		5.59
Other borrowings and liabilities	2,349		10		1.74		2,473		11		1.79		4,289		26		2.50
Total interest-bearing liabilities	$	369,765	$	3,626	3.92		$	367,676	$	3,450	3.75		$	344,278	$	1,961	2.28
Net interest income/spread			$	7,519	6.05				$	7,423	6.05				$	7,197	6.42
Impact of non-interest-bearing funding					0.68						0.64						0.42
Net interest margin					6.73	%					6.69	%					6.84	%



	Year Ended December 31,
	2023						2022
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale	$	312,173	$	37,410	11.98	%	$	293,839	$	28,910	9.84	%
Investment securities	89,105		2,550		2.86		90,608		1,884		2.08
Cash equivalents and other	39,960		1,978		4.95		22,199		443		2.00
Total interest-earning assets	$	441,238	$	41,938	9.50		$	406,646	$	31,237	7.68
Interest-bearing liabilities:
Interest-bearing deposits	$	313,737	$	9,489	3.02		$	277,208	$	2,535	0.91
Securitized debt obligations	17,675		959		5.42		15,603		384		2.46
Senior and subordinated notes	31,109		2,204		7.08		29,286		1,074		3.67
Other borrowings and liabilities	2,394		45		1.89		7,800		130		1.67
Total interest-bearing liabilities	$	364,915	$	12,697	3.48		$	329,897	$	4,123	1.25
Net interest income/spread			$	29,241	6.03				$	27,114	6.43
Impact of non-interest-bearing funding					0.60						0.24
Net interest margin					6.63	%					6.67	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics


											2023 Q4				Year Ended December 31,
	2023		2023		2023		2023		2022		2023		2022		2023		2022		2023 vs. 2022
(Dollars in millions, except as noted)	Q4		Q3		Q2		Q1		Q4		Q3		Q4
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	147,666	$	140,320	$	135,975	$	130,980	$	131,581	5	%	12	%	$	147,666	$	131,581	12	%
International card businesses	6,881		6,463		6,516		6,162		6,149		6		12		6,881		6,149		12
Total credit card	154,547		146,783		142,491		137,142		137,730		5		12		154,547		137,730		12
Consumer banking:
Auto	74,075		75,456		75,841		76,652		78,373		(2)		(5)		74,075		78,373		(5)
Retail banking	1,362		1,388		1,439		1,499		1,552		(2)		(12)		1,362		1,552		(12)
Total consumer banking	75,437		76,844		77,280		78,151		79,925		(2)		(6)		75,437		79,925		(6)
Commercial banking:
Commercial and multifamily real estate	34,446		35,622		36,041		37,132		37,453		(3)		(8)		34,446		37,453		(8)
Commercial and industrial	56,042		55,531		55,511		56,411		57,223		1		(2)		56,042		57,223		(2)
Total commercial banking	90,488		91,153		91,552		93,543		94,676		(1)		(4)		90,488		94,676		(4)

Total loans held for investment	$	320,472	$	314,780	$	311,323	$	308,836	$	312,331	2		3		$	320,472	$	312,331	3
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	142,112	$	137,500	$	132,505	$	128,562	$	124,816	3	%	14	%	$	135,213	$	114,506	18	%
International card businesses	6,515		6,549		6,257		6,108		5,836		(1)		12		6,359		5,886		8
Total credit card	148,627		144,049		138,762		134,670		130,652		3		14		141,572		120,392		18
Consumer banking:
Auto	74,861		75,740		76,233		77,465		79,108		(1)		(5)		76,067		78,772		(3)
Retail banking	1,377		1,414		1,465		1,529		1,592		(3)		(14)		1,446		1,663		(13)
Total consumer banking	76,238		77,154		77,698		78,994		80,700		(1)		(6)		77,513		80,435		(4)
Commercial banking:
Commercial and multifamily real estate	35,414		35,964		37,068		37,373		37,848		(2)		(6)		36,448		36,639		(1)
Commercial and industrial	55,611		55,592		56,127		56,719		57,681		—		(4)		56,008		54,772		2
Total commercial banking	91,025		91,556		93,195		94,092		95,529		(1)		(5)		92,456		91,411		1
Total average loans held for investment	$	315,890	$	312,759	$	309,655	$	307,756	$	306,881	1		3		$	311,541	$	292,238	7


											2023 Q4				Year Ended December 31,
	2023		2023		2023		2023		2022		2023		2022		2023		2022		2023 vs. 2022
	Q4		Q3		Q2		Q1		Q4		Q3		Q4
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card(2)	5.35	%	4.40	%	4.38	%	4.04	%	3.22	%	95	bps	213	bps	4.56	%	2.47	%	209	bps
International card businesses	4.94		4.87		4.98		4.54		4.29		7		65		4.84		3.65		119
Total credit card	5.33		4.42		4.41		4.06		3.27		91		206		4.57		2.53		204
Consumer banking:
Auto	2.19		1.77		1.40		1.53		1.66		42		53		1.72		1.00		72
Retail banking	5.68		3.80		3.25		2.97		5.15		188		53		3.89		4.24		(35)
Total consumer banking	2.25		1.81		1.43		1.56		1.73		44		52		1.76		1.06		70
Commercial banking:
Commercial and multifamily real estate	0.96		0.27		3.91		0.19		0.05		69		91		1.34		—		134
Commercial and industrial	0.26		0.24		0.11		0.03		0.06		2		20		0.16		0.13		3
Total commercial banking	0.53		0.25		1.62		0.09		0.06		28		47		0.62		0.08		54
Total net charge-offs	3.21		2.56		2.82		2.21		1.86		65		135		2.70		1.36		134
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	4.61	%	4.31	%	3.74	%	3.66	%	3.43	%	30	bps	118	bps	4.61	%	3.43	%	118	bps
International card businesses	4.67		4.43		4.24		4.20		4.03		24		64		4.67		4.03		64
Total credit card	4.61		4.32		3.77		3.68		3.46		29		115		4.61		3.46		115
Consumer banking:
Auto	6.34		5.64		5.38		5.00		5.62		70		72		6.34		5.62		72
Retail banking	1.19		1.07		1.19		0.56		1.02		12		17		1.19		1.02		17
Total consumer banking	6.25		5.55		5.30		4.92		5.53		70		72		6.25		5.53		72
Nonperforming Loans and Nonperforming Assets Rates(3)(4)
Credit card:
International card businesses	0.13	%	0.14	%	0.16	%	0.12	%	0.14	%	(1)	bps	(1)	bps	0.13	%	0.14	%	(1)	bps
Total credit card	0.01		0.01		0.01		0.01		0.01		—		—		0.01		0.01		—
Consumer banking:
Auto	0.96		0.85		0.77		0.67		0.76		11		20		0.96		0.76		20
Retail banking	3.36		3.28		2.99		2.94		2.49		8		87		3.36		2.49		87
Total consumer banking	1.00		0.89		0.82		0.72		0.79		11		21		1.00		0.79		21
Commercial banking:
Commercial and multifamily real estate	1.23		1.29		1.15		0.90		0.72		(6)		51		1.23		0.72		51
Commercial and industrial	0.60		0.65		0.71		0.72		0.75		(5)		(15)		0.60		0.75		(15)
Total commercial banking	0.84		0.90		0.89		0.79		0.74		(6)		10		0.84		0.74		10
Total nonperforming loans	0.48		0.48		0.47		0.42		0.43		—		5		0.48		0.43		5
Total nonperforming assets	0.50		0.50		0.48		0.44		0.45		—		5		0.50		0.45		5

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



	Three Months Ended December 31, 2023
	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 September 30, 2023	$	10,925	$	399	$	11,324	$	2,013	$	36	$	2,049	$	1,582	$	14,955
Charge-offs	(2,192)		(114)		(2,306)		(650)		(24)		(674)		(126)		(3,106)
Recoveries	290		33		323		240		5		245		5		573
Net charge-offs	(1,902)		(81)		(1,983)		(410)		(19)		(429)		(121)		(2,533)
Provision for credit losses	2,238		115		2,353		399		23		422		84		2,859
Allowance build (release) for credit losses	336		34		370		(11)		4		(7)		(37)		326
Other changes(5)	—		15		15		—		—		—		—		15
Balance as of December 31, 2023	11,261		448		11,709		2,002		40		2,042		1,545		15,296
Reserve for unfunded lending commitments:
Balance as of September 30, 2023	—		—		—		—		—		—		158		158
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		—		—

Balance as of December 31, 2023	—		—		—		—		—		—		158		158
Combined allowance and reserve as of December 31, 2023	$	11,261	$	448	$	11,709	$	2,002	$	40	$	2,042	$	1,703	$	15,454



	Year Ended December 31, 2023
	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, 2022	$	9,165	$	380	$	9,545	$	2,187	$	50	$	2,237	$	1,458	$	13,240
Cumulative effects of accounting standards adoption(6)	(40)		(23)		(63)		—		—		—		—		(63)
Balance as of January 1, 2023	9,125		357		9,482		2,187		50		2,237		1,458		13,177
Charge-offs	(7,348)		(439)		(7,787)		(2,252)		(75)		(2,327)		(588)		(10,702)
Recoveries	1,184		131		1,315		944		19		963		10		2,288
Net charge-offs	(6,164)		(308)		(6,472)		(1,308)		(56)		(1,364)		(578)		(8,414)
Provision for credit losses	8,268		383		8,651		1,123		46		1,169		665		10,485
Allowance build (release) for credit losses	2,104		75		2,179		(185)		(10)		(195)		87		2,071
Other changes(5)	32		16		48		—		—		—		—		48
Balance as of December 31, 2023	11,261		448		11,709		2,002		40		2,042		1,545		15,296
Reserve for unfunded lending commitments:
Balance as of December 31, 2022	—		—		—		—		—		—		218		218


Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(60)		(60)

Balance as of December 31, 2023	—		—		—		—		—		—		158		158
Combined allowance and reserve as of December 31, 2023	$	11,261	$	448	$	11,709	$	2,002	$	40	$	2,042	$	1,703	$	15,454

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results


	Three Months Ended December 31, 2023										Year Ended December 31, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total		Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)	$	5,231	$	1,951	$	617	$	(280)	$	7,519	$	19,729	$	8,713	$	2,518	$	(1,719)	$	29,241
Non-interest income	1,565		163		245		14		1,987		5,940		589		1,002		15		7,546
Total net revenue (loss)	6,796		2,114		862		(266)		9,506		25,669		9,302		3,520		(1,704)		36,787
Provision (benefit) for credit losses	2,353		422		84		(2)		2,857		8,651		1,169		605		1		10,426
Non-interest expense	3,417		1,402		487		411		5,717		12,490		5,178		2,011		637		20,316
Income (loss) from continuing operations before income taxes	1,026		290		291		(675)		932		4,528		2,955		904		(2,342)		6,045
Income tax provision (benefit)	241		68		68		(151)		226		1,071		697		213		(823)		1,158
Income (loss) from continuing operations, net of tax	$	785	$	222	$	223	$	(524)	$	706	$	3,457	$	2,258	$	691	$	(1,519)	$	4,887

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)	$	5,114	$	2,133	$	621	$	(445)	$	7,423
Non-interest income	1,513		142		288		—		1,943
Total net revenue (loss)	6,627		2,275		909		(445)		9,366
Provision for credit losses	1,953		213		116		2		2,284
Non-interest expense	3,015		1,262		512		71		4,860
Income (loss) from continuing operations before income taxes	1,659		800		281		(518)		2,222
Income tax provision (benefit)	393		189		67		(217)		432
Income (loss) from continuing operations, net of tax	$	1,266	$	611	$	214	$	(301)	$	1,790

	Three Months Ended December 31, 2022										Year Ended December 31, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total		Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)	$	4,533	$	2,394	$	520	$	(250)	$	7,197	$	16,584	$	8,965	$	2,461	$	(896)	$	27,114
Non-interest income (loss)	1,449		139		261		(6)		1,843		5,771		469		1,129		(233)		7,136
Total net revenue (loss)	5,982		2,533		781		(256)		9,040		22,355		9,434		3,590		(1,129)		34,250
Provision (benefit) for credit losses	1,878		477		62		(1)		2,416		4,265		1,173		415		(6)		5,847
Non-interest expense	3,069		1,450		555		6		5,080		11,627		5,312		2,070		154		19,163
Income (loss) from continuing operations before income taxes	1,035		606		164		(261)		1,544		6,463		2,949		1,105		(1,277)		9,240
Income tax provision (benefit)	245		144		39		(116)		312		1,536		699		262		(617)		1,880
Income (loss) from continuing operations, net of tax	$	790	$	462	$	125	$	(145)	$	1,232	$	4,927	$	2,250	$	843	$	(660)	$	7,360

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business


																2023 Q4 vs.				Year Ended December 31,
	2023			2023			2023			2023			2022			2023		2022								2023 vs.
(Dollars in millions, except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2023			2022			2022
Credit Card
Earnings:
Net interest income	$	5,231		$	5,114		$	4,727		$	4,657		$	4,533		2%		15%		$	19,729		$	16,584		19%
Non-interest income	1,565			1,513			1,499			1,363			1,449			3		8		5,940			5,771			3
Total net revenue	6,796			6,627			6,226			6,020			5,982			3		14		25,669			22,355			15
Provision for credit losses	2,353			1,953			2,084			2,261			1,878			20		25		8,651			4,265			103
Non-interest expense	3,417			3,015			3,020			3,038			3,069			13		11		12,490			11,627			7
Income from continuing operations before income taxes	1,026			1,659			1,122			721			1,035			(38)		(1)		4,528			6,463			(30)
Income tax provision	241			393			265			172			245			(39)		(2)		1,071			1,536			(30)
Income from continuing operations, net of tax	$	785		$	1,266		$	857		$	549		$	790		(38)		(1)		$	3,457		$	4,927		(30)
Selected performance metrics:
Period-end loans held for investment	$	154,547		$	146,783		$	142,491		$	137,142		$	137,730		5		12		$	154,547		$	137,730		12
Average loans held for investment	148,627			144,049			138,762			134,670			130,652			3		14		141,572			120,392			18
Average yield on loans outstanding(1)	18.96		%	19.02		%	18.17		%	17.98		%	17.69		%	(6)	bps	127	bps	18.54		%	16.21		%	233	bps
Total net revenue margin(8)	18.24			18.40			17.95			17.88			18.32			(16)		(8)		18.12			18.47			(35)
Net charge-off rate	5.33			4.42			4.41			4.06			3.27			91		206		4.57			2.53			204
30+ day performing delinquency rate	4.61			4.32			3.77			3.68			3.46			29		115		4.61			3.46			115
30+ day delinquency rate	4.62			4.32			3.77			3.69			3.46			30		116		4.62			3.46			116
Nonperforming loan rate(3)	0.01			0.01			0.01			0.01			0.01			—		—		0.01			0.01			—
Purchase volume(9)	$	162,055		$	158,640		$	157,937		$	141,658		$	155,633		2%		4%		$	620,290		$	587,283		6%


																2023 Q4 vs.				Year Ended December 31,
	2023			2023			2023			2023			2022			2023		2022								2023 vs.
(Dollars in millions, except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2023			2022			2022
Domestic Card
Earnings:
Net interest income	$	4,940		$	4,827		$	4,453		$	4,390		$	4,280		2%		15%		$	18,610		$	15,616		19%
Non-interest income	1,498			1,445			1,431			1,298			1,392			4		8		5,672			5,363			6
Total net revenue	6,438			6,272			5,884			5,688			5,672			3		14		24,282			20,979			16
Provision for credit losses	2,238			1,861			1,995			2,174			1,800			20		24		8,268			4,020			106
Non-interest expense	3,186			2,810			2,805			2,847			2,866			13		11		11,648			10,827			8
Income from continuing operations before income taxes	1,014			1,601			1,084			667			1,006			(37)		1		4,366			6,132			(29)
Income tax provision	239			378			256			157			238			(37)		—		1,030			1,453			(29)
Income from continuing operations, net of tax	$	775		$	1,223		$	828		$	510		$	768		(37)		1		$	3,336		$	4,679		(29)
Selected performance metrics:
Period-end loans held for investment	$	147,666		$	140,320		$	135,975		$	130,980		$	131,581		5		12		$	147,666		$	131,581		12
Average loans held for investment	142,112			137,500			132,505			128,562			124,816			3		14		135,213			114,506			18
Average yield on loans outstanding(1)	18.88		%	18.96		%	18.07		%	17.88		%	17.58		%	(8)	bps	130	bps	18.46		%	16.07		%	239	bps
Total net revenue margin(8)	18.07			18.24			17.76			17.70			18.18			(17)		(11)		17.94			18.28			(34)
Net charge-off rate(2)	5.35			4.40			4.38			4.04			3.22			95		213		4.56			2.47			209
30+ day performing delinquency rate	4.61			4.31			3.74			3.66			3.43			30		118		4.61			3.43			118
Purchase volume(9)	$	158,290		$	154,880		$	154,184		$	138,310		$	151,995		2%		4%		$	605,664		$	568,752		6%
Refreshed FICO scores:(10)
Greater than 660	68		%	69		%	69		%	68		%	69		%	(1)		(1)		68		%	69		%	(1)
660 or below	32			31			31			32			31			1		1		32			31			1
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business


																2023 Q4 vs.				Year Ended December 31,
	2023			2023			2023			2023			2022			2023		2022								2023 vs.
(Dollars in millions, except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2023			2022			2022
Consumer Banking
Earnings:
Net interest income	$	1,951		$	2,133		$	2,269		$	2,360		$	2,394		(9)%		(19)%		$	8,713		$	8,965		(3)%
Non-interest income	163			142			149			135			139			15		17		589			469			26
Total net revenue	2,114			2,275			2,418			2,495			2,533			(7)		(17)		9,302			9,434			(1)
Provision for credit losses	422			213			259			275			477			98		(12)		1,169			1,173			—
Non-interest expense	1,402			1,262			1,231			1,283			1,450			11		(3)		5,178			5,312			(3)
Income from continuing operations before income taxes	290			800			928			937			606			(64)		(52)		2,955			2,949			—
Income tax provision	68			189			219			221			144			(64)		(53)		697			699			—
Income from continuing operations, net of tax	$	222		$	611		$	709		$	716		$	462		(64)		(52)		$	2,258		$	2,250		—
Selected performance metrics:
Period-end loans held for investment	$	75,437		$	76,844		$	77,280		$	78,151		$	79,925		(2)		(6)		$	75,437		$	79,925		(6)
Average loans held for investment	76,238			77,154			77,698			78,994			80,700			(1)		(6)		77,513			80,435			(4)
Average yield on loans held for investment(1)	8.17		%	7.97		%	7.65		%	7.40		%	7.31		%	20	bps	86	bps	7.79		%	7.19		%	60	bps
Auto loan originations	$	6,157		$	7,452		$	7,160		$	6,211		$	6,635		(17)%		(7)%		$	26,980		$	36,965		(27)%
Period-end deposits	296,171			290,789			286,174			291,163			270,592			2		9		296,171			270,592			9
Average deposits	291,486			287,457			285,647			278,772			262,844			1		11		285,880			257,089			11
Average deposits interest rate	3.06		%	2.85		%	2.46		%	1.96		%	1.42		%	21	bps	164	bps	2.59		%	0.72		%	187	bps
Net charge-off rate	2.25			1.81			1.43			1.56			1.73			44		52		1.76			1.06			70
30+ day performing delinquency rate	6.25			5.55			5.30			4.92			5.53			70		72		6.25			5.53			72
30+ day delinquency rate	7.08			6.27			5.95			5.46			6.18			81		90		7.08			6.18			90
Nonperforming loan rate(3)	1.00			0.89			0.82			0.72			0.79			11		21		1.00			0.79			21
Nonperforming asset rate(4)	1.09			0.96			0.88			0.78			0.87			13		22		1.09			0.87			22
Auto—At origination FICO scores:(11)
Greater than 660	53		%	52		%	52		%	52		%	53		%	1%		—		53		%	53		%	—
621 - 660	20			20			20			20			20			—		—		20			20			—
620 or below	27			28			28			28			27			(1)		—		27			27			—
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business


																2023 Q4 vs.				Year Ended December 31,
	2023			2023			2023			2023			2022			2023		2022								2023 vs.
(Dollars in millions, except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2023			2022			2022
Commercial Banking
Earnings:
Net interest income(12)	$	617		$	621		$	632		$	648		$	520		(1)%		19%		$	2,518		$	2,461		2%
Non-interest income	245			288			257			212			261			(15)		(6)		1,002			1,129			(11)
Total net revenue(7)	862			909			889			860			781			(5)		10		3,520			3,590			(2)
Provision for credit losses	84			116			146			259			62			(28)		35		605			415			46
Non-interest expense	487			512			482			530			555			(5)		(12)		2,011			2,070			(3)
Income from continuing operations before income taxes	291			281			261			71			164			4		77		904			1,105			(18)
Income tax provision	68			67			61			17			39			1		74		213			262			(19)
Income from continuing operations, net of tax	$	223		$	214		$	200		$	54		$	125		4		78		$	691		$	843		(18)
Selected performance metrics:
Period-end loans held for investment(13)	$	90,488		$	91,153		$	91,552		$	93,543		$	94,676		(1)		(4)		$	90,488		$	94,676		(4)
Average loans held for investment	91,025			91,556			93,195			94,092			95,529			(1)		(5)		92,456			91,411			1
Average yield on loans held for investment(1)(7)	7.24		%	7.16		%	6.75		%	6.31		%	5.63		%	8	bps	161	bps	6.86		%	4.02		%	284	bps
Period-end deposits	$	32,712		$	36,035		$	36,793		$	38,380		$	40,808		(9)%		(20)%		$	32,712		$	40,808		(20)%
Average deposits	34,525			37,279			37,960			39,941			42,779			(7)		(19)		37,411			42,018			(11)
Average deposits interest rate	2.79		%	2.93		%	2.68		%	2.34		%	1.80		%	(14)	bps	99	bps	2.68		%	0.73		%	195	bps
Net charge-off rate	0.53			0.25			1.62			0.09			0.06			28		47		0.62			0.08			54
Nonperforming loan rate(3)	0.84			0.90			0.89			0.79			0.74			(6)		10		0.84			0.74			10
Nonperforming asset rate(4)	0.84			0.90			0.89			0.79			0.74			(6)		10		0.84			0.74			10
Risk category:(14)
Noncriticized	$	81,758		$	82,968		$	84,583		$	85,964		$	87,620		(1)%		(7)%		$	81,758		$	87,620		(7)%
Criticized performing	7,969			7,363			6,158			6,839			6,355			8		25		7,969			6,355			25
Criticized nonperforming	761			822			811			740			701			(7)		9		761			701			9
Total commercial banking loans held for investment	$	90,488		$	91,153		$	91,552		$	93,543		$	94,676		(1)		(4)		$	90,488		$	94,676		(4)
Risk category as a percentage of period-end loans held for investment:(14)
Noncriticized	90.35		%	91.02		%	92.38		%	91.90		%	92.55		%	(67)	bps	(220)	bps	90.35		%	92.55		%	(220)	bps
Criticized performing	8.81			8.08			6.73			7.31			6.71			73		210		8.81			6.71			210
Criticized nonperforming	0.84			0.90			0.89			0.79			0.74			(6)		10		0.84			0.74			10
Total commercial banking loans	100.00		%	100.00		%	100.00		%	100.00		%	100.00		%					100.00		%	100.00		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total


											2023 Q4 vs.		Year Ended December 31,
	2023		2023		2023		2023		2022		2023	2022					2023 vs.
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3	Q4	2023		2022		2022
Other
Earnings:
Net interest loss(12)	$	(280)	$	(445)	$	(515)	$	(479)	$	(250)	(37)%	12%	$	(1,719)	$	(896)	92%
Non-interest income (loss)	14		—		(6)		7		(6)		**	**	15		(233)		**
Total net loss(9)	(266)		(445)		(521)		(472)		(256)		(40)	4	(1,704)		(1,129)		51
Provision (benefit) for credit losses	(2)		2		1		—		(1)		**	100	1		(6)		**
Non-interest expense(15)	411		71		61		94		6		**	**	637		154		**
Loss from continuing operations before income taxes	(675)		(518)		(583)		(566)		(261)		30	159	(2,342)		(1,277)		83
Income tax benefit	(151)		(217)		(248)		(207)		(116)		(30)	30	(823)		(617)		33
Loss from continuing operations, net of tax	$	(524)	$	(301)	$	(335)	$	(359)	$	(145)	74	**	$	(1,519)	$	(660)	130
Selected performance metrics:
Period-end deposits	$	19,530	$	19,187	$	20,738	$	20,284	$	21,592	2	(10)	$	19,530	$	21,592	(10)
Average deposits	19,317		20,277		20,071		21,410		20,935		(5)	(8)	20,263		14,444		40
Total
Earnings:
Net interest income	$	7,519	$	7,423	$	7,113	$	7,186	$	7,197	1%	4%	$	29,241	$	27,114	8%
Non-interest income	1,987		1,943		1,899		1,717		1,843		2	8	7,546		7,136		6
Total net revenue	9,506		9,366		9,012		8,903		9,040		1	5	36,787		34,250		7
Provision for credit losses	2,857		2,284		2,490		2,795		2,416		25	18	10,426		5,847		78
Non-interest expense	5,717		4,860		4,794		4,945		5,080		18	13	20,316		19,163		6
Income from continuing operations before income taxes	932		2,222		1,728		1,163		1,544		(58)	(40)	6,045		9,240		(35)
Income tax provision	226		432		297		203		312		(48)	(28)	1,158		1,880		(38)
Income from continuing operations, net of tax	$	706	$	1,790	$	1,431	$	960	$	1,232	(61)	(43)	$	4,887	$	7,360	(34)
Selected performance metrics:
Period-end loans held for investment	$	320,472	$	314,780	$	311,323	$	308,836	$	312,331	2	3	$	320,472	$	312,331	3
Average loans held for investment	315,890		312,759		309,655		307,756		306,881		1	3	311,541		292,238		7
Period-end deposits	348,413		346,011		343,705		349,827		332,992		1	5	348,413		332,992		5
Average deposits	345,328		345,013		343,678		340,123		326,558		—	6	343,554		313,551		10

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

(1)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. Average yield is calculated using whole dollar values for average balances and interest income/expense. Accordingly, total interest earning assets less total interest bearing liabilities may not total net interest income/spread.

(2)In December 2023, we recognized $18 million of incremental net charge-offs on certain loans in hardship programs from the one-time impact of operational delays, which increased the Q4 2023 net charge-off rate by approximately 5 basis points. Excluding this impact, the Q4 2023 net charge-off rate would have been 5.30%.

(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. For Commercial Banking, loans categorized as nonperforming are considered criticized nonperforming.

(4)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.

(5)Primarily represents the initial allowance for purchased credit-deteriorated loans and foreign currency translation adjustments. The initial allowance of purchased credit-deteriorated loans was $0 million and $32 million for the three and twelve months ended December 31, 2023, respectively.

(6)Impact from the adoption of ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures as of January 1, 2023.

(7)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.

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

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

(10)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.

(11)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.

(12)In the fourth quarter of 2022, an internal funds transfer pricing impact of $176 million decreased net interest income in the Commercial Banking business and increased the Other category, and was therefore neutral to Capital One Financial Corporation.

(13)We reclassified $888 million in commercial office real estate loans from loans held for investment to loans held for sale as of June 30, 2023.

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

(15)Includes the impact of the $289 million FDIC special assessment in Q4 2023 and any charges incurred as a result of restructuring activities for the periods presented.

** 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)	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Regulatory Capital Metrics
Common equity excluding AOCI	$	62,710	$	62,245	$	60,729	$	59,546	$	59,450
Adjustments:
AOCI, net of tax(2)	27		(9)		31		(3)		(17)
Goodwill, net of related deferred tax liabilities	(14,811)		(14,797)		(14,813)		(14,538)		(14,540)
Other Intangible and deferred tax assets, net of deferred tax liabilities	(311)		(333)		(358)		(371)		(162)
Common equity Tier 1 capital	$	47,615	$	47,106	$	45,589	$	44,634	$	44,731
Tier 1 capital	$	52,460	$	51,952	$	50,434	$	49,479	$	49,576
Total capital(3)	59,124		58,844		57,607		56,611		56,714
Risk-weighted assets	369,217		362,962		359,613		356,079		357,920
Adjusted average assets(4)	467,553		464,286		459,732		455,477		444,704
Capital Ratios
Common equity Tier 1 capital(5)	12.9%		13.0%		12.7%		12.5%		12.5%
Tier 1 capital(6)	14.2		14.3		14.0		13.9		13.9
Total capital(7)	16.0		16.2		16.0		15.9		15.8
Tier 1 leverage(4)	11.2		11.2		11.0		10.9		11.1
TCE(8)	8.2		7.3		7.6		7.6		7.5

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, however, they may not be comparable to similarly-titled measures reported by other companies. 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.


	2023		2023		2023		2023		2022		Year Ended December 31,
(Dollars in millions, except per share data and as noted)	Q4		Q3		Q2		Q1		Q4		2023		2022
Adjusted diluted earnings per share (“EPS”):
Net income available to common stockholders (GAAP)	$	639	$	1,705	$	1,351	$	887	$	1,161	$	4,582	$	7,044
FDIC special assessment	289		—		—		—		—		289		—
Insurance recoveries and legal reserve activity	—		—		—		—		(177)		—		(177)
Restructuring charges	—		—		—		—		72		—		72

Adjusted net income available to common stockholders before income tax impacts (non-GAAP)	928		1,705		1,351		887		1,056		4,871		6,939
Income tax impacts	(70)		—		—		—		25		(70)		25

Adjusted net income available to common stockholders (non-GAAP)	$	858	$	1,705	$	1,351	$	887	$	1,081	$	4,801	$	6,964

Diluted weighted-average common shares outstanding (in millions) (GAAP)	382.8		383.3		383.7		383.8		383.7		383.4		393.2

Diluted EPS (GAAP)	$	1.67	$	4.45	$	3.52	$	2.31	$	3.03	$	11.95	$	17.91
Impact of adjustments noted above	0.57		—		—		—		(0.21)		0.57		(0.20)
Adjusted diluted EPS (non-GAAP)	$	2.24	$	4.45	$	3.52	$	2.31	$	2.82	$	12.52	$	17.71

Adjusted efficiency ratio:
Non-interest expense (GAAP)	$	5,717	$	4,860	$	4,794	$	4,945	$	5,080	$	20,316	$	19,163
FDIC special assessment	(289)		—		—		—		—		(289)		—
Insurance recoveries and legal reserve activity	—		—		—		—		177		—		177
Restructuring charges	—		—		—		—		(72)		—		(72)
Adjusted non-interest expense (non-GAAP)	$	5,428	$	4,860	$	4,794	$	4,945	$	5,185	$	20,027	$	19,268

Total net revenue (GAAP)	$	9,506	$	9,366	$	9,012	$	8,903	$	9,040	$	36,787	$	34,250




Efficiency ratio (GAAP)	60.14%		51.89%		53.20%		55.54%		56.19%		55.23%		55.95%
Impact of adjustments noted above	(304)bps		—		—		—		117bps		(79)bps		31bps
Adjusted efficiency ratio (non-GAAP)	57.10%		51.89%		53.20%		55.54%		57.36%		54.44%		56.26%

Adjusted operating efficiency ratio:
Operating expense (GAAP)	$	4,463	$	3,888	$	3,908	$	4,048	$	3,962	$	16,307	$	15,146
FDIC special assessment	(289)		—		—		—		—		(289)		—
Insurance recoveries and legal reserve activity	—		—		—		—		177		—		177


	2023		2023		2023		2023		2022		Year Ended December 31,
(Dollars in millions, except per share data and as noted)	Q4		Q3		Q2		Q1		Q4		2023		2022
Restructuring charges	—		—		—		—		(72)		—		(72)
Adjusted operating expense (non-GAAP)	$	4,174	$	3,888	$	3,908	$	4,048	$	4,067	$	16,018	$	15,251


Total net revenue (GAAP)	$	9,506	$	9,366	$	9,012	$	8,903	$	9,040	$	36,787	$	34,250




Operating efficiency ratio (GAAP)	46.95%		41.51%		43.36%		45.47%		43.83%		44.33%		44.22%
Impact of adjustments noted above	(304)bps		—		—		—		116bps		(79)bps		31bps
Adjusted operating efficiency ratio (non-GAAP)	43.91%		41.51%		43.36%		45.47%		44.99%		43.54%		44.53%

Reconciliation of Non-GAAP Measures

The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following table presents reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.


	2023			2023			2023			2023			2022
(Dollars in millions)	Q4			Q3			Q2			Q1			Q4
Pre- Provision Earnings
Total net revenue	$	9,506		$	9,366		$	9,012		$	8,903		$	9,040
Non-interest expense	(5,717)			(4,860)			(4,794)			(4,945)			(5,080)
Pre-provision earnings(9)	$	3,789		$	4,506		$	4,218		$	3,958		$	3,960
Tangible Common Equity (Period-End)
Stockholders’ equity	$	58,089		$	53,668		$	54,559		$	54,653		$	52,582
Goodwill and other intangible assets(10)	(15,289)			(15,308)			(15,356)			(15,098)			(14,902)
Noncumulative perpetual preferred stock	(4,845)			(4,845)			(4,845)			(4,845)			(4,845)
Tangible common equity(11)	$	37,955		$	33,515		$	34,358		$	34,710		$	32,835
Tangible Common Equity (Average)
Stockholders’ equity	$	55,632		$	55,012		$	55,357		$	54,773		$	52,439
Goodwill and other intangible assets(10)	(15,304)			(15,348)			(15,187)			(14,984)			(14,926)
Noncumulative perpetual preferred stock	(4,845)			(4,845)			(4,845)			(4,845)			(4,845)
Tangible common equity(11)	$	35,483		$	34,819		$	35,325		$	34,944		$	32,668
Return on Tangible Common Equity (Average)
Net income available to common stockholders	$	639		$	1,705		$	1,351		$	887		$	1,161
Tangible common equity (Average)	35,483			34,819			35,325			34,944			32,668
Return on tangible common equity(11)(12)	7.20		%	19.59		%	15.30		%	10.15		%	14.22		%
Tangible Assets (Period-End)
Total assets	$	478,464		$	471,435		$	467,800		$	471,660		$	455,249
Goodwill and other intangible assets(10)	(15,289)			(15,308)			(15,356)			(15,098)			(14,902)
Tangible assets(11)	$	463,175		$	456,127		$	452,444		$	456,562		$	440,347


	2023		2023		2023		2023		2022
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4






















Tangible Assets (Average)
Total assets	$	472,594	$	469,860	$	466,652	$	462,324	$	449,659
Goodwill and other intangible assets(10)	(15,304)		(15,348)		(15,187)		(14,984)		(14,926)
Tangible assets(11)	$	457,290	$	454,512	$	451,465	$	447,340	$	434,733
Return on Tangible Assets (Average)
Net income	$	706	$	1,790	$	1,431	$	960	$	1,232
Tangible Assets (Average)	457,290		454,512		451,465		447,340		434,733
Return on tangible assets(11)(13)	0.62%		1.58%		1.27%		0.86%		1.13%
TCE Ratio
Tangible common equity (Period-end)	$	37,955	$	33,515	$	34,358	$	34,710	$	32,835
Tangible Assets (Period-end)	463,175		456,127		452,444		456,562		440,347
TCE Ratio(11)	8.2%		7.3%		7.6%		7.6%		7.5%
Tangible Book Value per Common Share
Tangible common equity (Period-end)	$	37,955	$	33,515	$	34,358	$	34,710	$	32,835
Outstanding Common Shares	380.4		381.0		381.4		382.0		381.3
Tangible book value per common share(11)	$	99.78	$	87.97	$	90.07	$	90.86	$	86.11

__________

(1)Regulatory capital metrics and capital ratios as of December 31, 2023 are preliminary and therefore subject to change.

(2)Excludes certain components of AOCI in accordance with rules applicable to Category III institutions.

(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)Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

(10)Includes impact of related deferred taxes.

(11)Management believes that this financial metric is useful in assessing capital adequacy and the level of returns generated.

(12)Return on average tangible common equity is a non-GAAP measure calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average TCE.

(13)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.