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

MCLEAN, Va., April 26, 2022 /PRNewswire/ -- 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.
  • 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.

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.

 

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

Q1

2021

Q4

2021

Q3

2021

Q2

2021

Q1

2021

Q4

2021

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.


2022

Q1

2021

Q4

2021

Q3

2021

Q2

2021

Q1

2021

Q4

2021

Q1

(Dollars in millions)






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

Q1

2021

Q4

2021

Q3

2021

Q2

2021

Q1

2021

Q4

2021

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

Q1

2021

Q4

2021

Q3

2021

Q2

2021

Q1

2021

Q4

2021

Q1

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








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

Q1

2021

Q4

2021

Q3

2021

Q2

2021

Q1

2021

Q4

2021

Q1

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






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

Q1

2021

Q4

2021

Q3

2021

Q2

2021

Q1

2021

Q4

2021

Q1

(Dollars in millions)






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

Q1

2021

Q4

2021

Q3

2021

Q2

2021

Q1

2021

Q4

2021

Q1

(Dollars in millions)








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

Q1

2021

Q4

2021

Q3

2021

Q2

2021

Q1

2021

Q4

2021

Q1

(Dollars in millions, except as noted)








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