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Capital One Reports First Quarter Earnings per Share (diluted) of $1.47

April 17, 2008 at 4:07 PM EDT

Diluted earning per share from continuing operations of $1.70 increased 2.9%

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MCLEAN, Va., April 17 /PRNewswire-FirstCall/ -- Capital One Financial Corporation (NYSE: COF) today announced earnings for the first quarter of 2008 of $548.5 million, or $1.47 per share (diluted). Earnings from continuing operations in the first quarter of 2008 were $632.6 million, or $1.70 per share (diluted). In the first quarter of 2007, the company reported earnings of $675.0 million, or $1.62 per share (diluted), and earnings from continuing operations of $686.1 million, or $1.65 per share (diluted). Earnings from continuing operations exclude the loss from discontinued operations related to the shutdown of GreenPoint Mortgage.

"In March, we completed a major milestone of our banking integration and launched the Capital One Bank brand in the New York region, marking the completion of our transformation into a diversified bank," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "We're well positioned to navigate near-term cyclical challenges with resilient businesses, experience in managing through prior cyclical downturns, and a strong balance sheet. We're actively managing the company to protect our franchises and deliver shareholder returns."

Highlights of the quarter:

  • Results include a $200 million benefit related to the VISA initial public offering, a $310 million addition to the company's allowance for loan losses, and a $104 million increase to the GreenPoint Mortgage rep and warranty reserve
  • Credit performance was largely in line with expectations; but outlook significantly deteriorated due to weakness in U.S. economy
  • Managed loans declined $3.3 billion; deposits grew $4.9 billion
  • Ratio of tangible common equity (TCE) to tangible managed assets increased from 5.83 percent to 6.03 percent.
  • Increased the quarterly dividend per share from $0.027 to $0.375
  • Completed integration of multiple systems, including deposit platform, and New York metro bank brand conversion.

"A substantial increase in revenue margin coupled with expense reductions largely offset the adverse impact of higher credit costs," said Gary L. Perlin, Capital One's Chief Financial Officer. "Because of the strong capital generation of our businesses, we were able to significantly raise our dividend as planned, while building capital to the high end of our range."

Total Company Results

  • Total deposits of $87.7 billion at March 31, 2008 were up $4.9 billion, or 6.0 percent, from December 31, 2007 and $224.3 million, or essentially flat relative to March 31, 2007.
  • Managed loans held for investment of $148.0 billion decreased from the fourth quarter of 2007 by $3.3 billion, or 2.2 percent, but increased from the year ago quarter by $6.0 billion, or 4.2 percent.
  • Managed revenue margin of 10.43 percent in the first quarter of 2008 was relatively flat compared to 10.40 percent in the fourth quarter of 2007, but up 123 basis points from 9.20 percent in the first quarter of 2007.
  • Managed provision expense was $1.8 billion. The company added $310.4 million to its allowance in the first quarter of 2008. This allowance build is consistent with expected managed losses of $6.7 billion over the next 12 months, ending March 31, 2009.
  • Operating expenses declined $277.5 million relative to the fourth quarter of 2007. The managed efficiency ratio for the first quarter of 2008 was 38.61 percent, down from 46.15 percent in the fourth quarter of 2007. Looking forward, the company expects its operating efficiency ratio to be in the mid-forty percent range or lower for the full year 2008.

Segment Results

Local Banking Segment highlights

The Local Banking business posted modest loan and deposit growth while successfully completing a major platform integration in the quarter. Profits declined, mostly as a result of higher provision expense as the economy weakened. The successful integration of multiple systems, including the deposit platform, and the launch of the Capital One Bank brand in the New York area provide the foundations that will enable the Local Banking business to develop new growth strategies and continue the tradition of providing excellent customer service to banking customers across the franchise.

  • Net income of $75.8 million was down $27.8 million from $103.6 million in the fourth quarter of 2007.
  • Loans held for investment were up $224.3 million relative to the fourth quarter of 2007 to $44.2 billion.
  • Total Bank deposits increased $297.9 million from the fourth quarter of 2007 to $73.4 billion.
  • Net charge-off rate of 31 basis points and non-performing loans as a percent of loans held for investment of 56 basis points increased from 28 basis points and 41 basis points in the fourth quarter of 2007, respectively.

National Lending Segment

In the first quarter of 2008 the company reorganized its National Lending subsegments from U.S. Card, Auto Finance and Global Financial Services to U.S. Card and Other National Lending. The U.S. Card subsegment contains the results of the company's domestic credit card business, as well as small business lending and the installment loan business, which were previously in Global Financial Services. The Other National Lending subsegment contains the results of the company's auto finance business, and the company's international lending businesses, which were previously in Global Financial Services. Components of the Other National Lending subsegment are separately disclosed. Segment and subsegment results have been restated for all periods presented.

  • Profits for the National Lending segment were flat as compared to the fourth quarter of 2007, and down 26.6 percent relative to the first quarter of 2007.
  • The managed charge-off rate for the National Lending segment increased 61 basis points to 5.34 percent in the first quarter of 2008 from 4.73 percent in the fourth quarter of 2007.
  • The delinquency rate of 4.73 percent in the first quarter of 2008 for the National Lending subsegment decreased from 5.17 percent as of December 31, 2007.

U.S. Card highlights

Strong revenue growth and continuing expense reductions partially offset increasing provision expense, resulting in solid profits in the face of cyclical economic headwinds. The US Card business remains well positioned to navigate near-term challenges and continue its profitability through the economic cycle.

  • U.S. Card reported net income of $491.2 million, a 1.5 percent decrease relative to the fourth quarter of 2007 and an 8.8 percent decrease relative to the first quarter of 2007.
  • Total revenues decreased $117.2 million, or 4.0 percent, compared to the fourth quarter of 2007 but increased $474.1 million, or 20.3 percent, over the prior year's same quarter.
  • Non-interest expenses declined 3.8 percent over the previous quarter and 8.6 percent relative to the first quarter of 2007.
  • Managed loans declined from the fourth quarter of 2007 by 3.4 percent, or $2.3 billion, to $67.4 billion at March 31, 2008, but increased 3.1 percent from the year ago quarter.
  • Charge-offs rose in the first quarter of 2008 to 5.85 percent from 4.84 percent in the fourth quarter of 2007, and from 3.72 percent in the first quarter of 2007. The company expects the charge-off rate to be in the low six percent range for the next six months for the new U.S. Card subsegment, but higher in the fourth quarter.
  • Delinquencies improved in the first quarter of 2008 to 4.04 percent from 4.28 percent in the previous quarter but rose from 3.06 percent in the year ago quarter.

Auto Finance highlights

The Auto Finance business posted a net loss in the quarter as the company continued its significant pull back and repositioning of the business. The results of the Auto Finance business continue to be negatively impacted by both the current credit environment, and the company's credit outlook. Origination volumes were reduced significantly as a result of tightening credit policy and increased pricing. The company expects its actions to result in a substantially smaller but more stable Auto Finance business going forward.

  • Auto Finance posted a net loss of $82.4 million in the quarter, compared to a loss of $112.4 million last quarter. Total revenues increased $15.5 million and provision and operating expenses decreased by $29.1 million.
  • Net charge-offs of 3.98 percent declined slightly from 4.00 percent in the fourth quarter of 2007, but increased from 2.29 percent in the first quarter of 2007. Delinquencies declined 142 basis points from the prior quarter to 6.42 percent but rose from 4.64 percent in the year ago quarter.
  • Originations in the first quarter of $2.4 billion were down 32.7 percent, or $1.2 billion, compared to the prior quarter.
  • Managed loans of $24.6 billion as of March 31, 2008 were down 2.0 percent relative to the fourth quarter of 2007 but up 2.9 percent from the first quarter of 2007.

International highlights

The Canadian credit card business continued to perform relatively well, with stable credit performance and solid returns. The company's credit performance has been stable to modestly improving for several quarters, reflecting a more stable UK credit environment. However, the company remains cautious about growth in the UK, given growing economic uncertainty in that market.

  • International's net income of $33.3 million declined $21.4 million from the fourth quarter of 2007, but increased $13.8 million from $19.5 million in the year-ago quarter.
  • Charge-offs of 5.30 percent declined 31 basis points from 5.61 percent in the fourth quarter of 2007, and 74 basis points from 6.04 percent in the first quarter of 2007.
  • Delinquencies increased 33 basis points to 5.12 percent from 4.79 percent in the prior quarter and 34 basis points from 4.78 percent in the year ago quarter.

The company generates earnings from its managed loan portfolio, which includes both on-balance sheet loans and securitized (off-balance sheet) loans. For this reason, the company believes managed financial measures to be useful to stakeholders. In compliance with Regulation G of the Securities and Exchange Commission, the company is providing a numerical reconciliation of managed financial measures to comparable measures calculated on a reported basis using generally accepted accounting principles (GAAP). Please see the schedule titled "Reconciliation to GAAP Financial Measures" attached to this release for more information.

Forward looking statements

The company cautions that its current expectations in this release, in the presentation slides available on the company's website and in its Form 8-K dated April 17, 2008 for 2008 revenue growth, loan and deposit growth, return on equity, the projected charge-off rate and revenue margin in the U.S. Card subsegment for 2008, estimated loss levels for the 12 months ending March 31, 2009 underlying its provision expenses in the first quarter of 2008, credit performance and trends, operating efficiencies, operating expense reductions, and dividends, including future financial and operating results, and the company's plans, objectives, expectations, and intentions, are forward-looking statements and actual results could differ materially from current expectations due to a number of factors, including: general economic conditions affecting interest rates and consumer income, spending, and savings which may affect consumer bankruptcies, defaults, charge-offs and deposit activity; changes in the labor and employment market; changes in the credit environment in the U.S. and/or the UK; the company's ability to execute on its strategic and operational plans; the risk that the company's acquired businesses will not be integrated successfully and that the cost savings and other synergies from such acquisitions may not be fully realized; continued intense competition from numerous providers of products and services which compete with Capital One's businesses; changes in the company's aggregate accounts and balances, and the growth rate and composition thereof; the risk that the benefits of the company's restructuring initiative, including cost savings and other benefits, may not be fully realized; the success of the company's marketing efforts; and general secondary market conditions in the mortgage industry. A discussion of these and other factors can be found in Capital One's annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, Capital One's report on Form 10-K for the fiscal year ended December 31, 2007.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries collectively had $87.7 billion in deposits and $148.0 billion in managed loans outstanding as of March 31, 2008. Headquartered in McLean, VA, Capital One has 745 locations in New York, New Jersey, Connecticut, Texas and Louisiana. It is a diversified financial services company whose principal subsidiaries, Capital One, N.A., Capital One Bank (USA), N. A., and Capital One Auto Finance, Inc., offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. 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.

NOTE: First quarter 2008 financial results, SEC Filings, and first quarter earnings conference call slides are accessible on Capital One's home page (www.capitalone.com). Choose "Investors" on the bottom of the home page to view and download the earnings press release, slides, and other financial information. Additionally, a podcast and webcast of today's 5:00 pm (ET) earnings conference call is accessible through the same link.



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
                         FINANCIAL & STATISTICAL SUMMARY
                                  REPORTED BASIS

    (in millions, except per       2008             2007            2007
    share data and as noted)        Q1               Q4              Q1

    Earnings (Reported Basis)
    Net Interest Income          $1,811.9         $1,762.3        $1,604.5
    Non-Interest Income           2,056.5 (8),(9)  2,158.3 (7)     1,774.4 (6)
    Total Revenue (1)             3,868.4          3,920.6         3,378.9
    Provision for Loan Losses     1,079.1          1,294.2           350.0
    Marketing Expenses              297.8            358.2           330.9
    Restructuring Expenses (2)       52.8             27.8           -
    Operating Expenses            1,471.7 (3),(4)  1,749.2 (3),(4) 1,643.2 (3)
    Income Before Taxes             967.0            491.2         1,054.8
    Tax Rate                         34.6 %           34.5 %          35.0 %
    Income From Continuing
     Operations, Net of Tax        $632.6           $321.6          $686.1
    Loss From Discontinued
     Operations, Net of Tax (5)     (84.1) (10)      (95.0)          (11.1)
    Net Income                     $548.5           $226.6          $675.0

    Common Share Statistics
    Basic EPS:
       Income From Continuing
        Operations                  $1.71            $0.85           $1.68
       Loss From Discontinued
        Operations                 $(0.23)          $(0.25)         $(0.03)
       Net Income                   $1.48            $0.60           $1.65
    Diluted EPS:
       Income From Continuing
        Operations                  $1.70            $0.85           $1.65
       Loss From Discontinued
        Operations                 $(0.23)          $(0.25)         $(0.03)
       Net Income                   $1.47            $0.60           $1.62
    Dividends Per Share            $0.375            $0.03           $0.03
    Tangible Book Value Per
     Share (period end)            $29.94           $29.00          $29.76
    Stock Price Per Share
     (period end)                  $49.22           $47.26          $75.46
    Total Market Capitalization
     (period end)               $18,442.7        $17,623.3       $31,112.2
    Shares Outstanding (period
     end)                           374.7            372.9           412.3
    Shares Used to Compute
     Basic EPS                      370.7            375.6           408.7
    Shares Used to Compute
     Diluted EPS                    372.3            378.4           415.5

    Reported Balance Sheet Statistics
     (period average) (A)
    Average Loans Held for
     Investment                   $99,819          $97,785         $93,466
    Average Earning Assets       $127,820         $127,242        $120,766
    Average Assets               $149,460         $150,926        $143,130
    Average Interest Bearing
     Deposits                     $74,167          $72,074         $74,654
    Total Average Deposits        $84,779          $83,813         $86,024
    Average Equity                $24,569          $24,733         $25,610
    Return on Average Assets (ROA)   1.69 %           0.85 %          1.92 %
    Return on Average Equity (ROE)  10.30 %           5.20 %         10.72 %

    Reported Balance Sheet Statistics
     (period end) (A)
    Loans Held for Investment     $98,356         $101,805         $90,869
    Total Assets                 $150,428         $150,202        $143,832
    Interest Bearing Deposits     $76,624          $71,715         $76,113
    Total Deposits                $87,695          $82,761         $87,471

    Performance Statistics
     (Reported) (A)
    Net Interest Income Growth
     (annualized)                      11 %             34 %            61 %
    Non Interest Income Growth
     (annualized)                     (19)%              2 %            25 %
    Revenue Growth (annualized)        (5)%             16 %            41 %
    Net Interest Margin              5.67 %           5.54 %          5.31 %
    Revenue Margin                  12.11 %          12.32 %         11.19 %
    Risk Adjusted Margin (B)         9.71 %          10.28 %          9.77 %
    Non Interest Expense as a %
     of Average Loans Held for
     Investment (annualized)         7.30 %           8.73 %          8.45 %
    Efficiency Ratio (C)            45.74 %          53.75 %         58.42 %

    Asset Quality Statistics
     (Reported) (A)
    Allowance                      $3,273           $2,963          $2,105
    Allowance as a % of Reported
     Loans Held for Investment       3.33 %           2.91 %          2.32 %
    Net Charge-Offs                  $767             $650            $430
    Net Charge-Off Rate              3.07 %           2.66 %          1.84 %
    Full-time equivalent
     employees (in thousands)        25.4             27.0            30.8



                     CAPITAL ONE FINANCIAL CORPORATION (COF)
                         FINANCIAL & STATISTICAL SUMMARY
                                MANAGED BASIS (*)

                                  2008               2007           2007
    (in millions)                  Q1                 Q4             Q1
    Earnings (Managed Basis)
    Net Interest Income         $2,976.8          $3,000.5        $2,602.5
    Non-Interest Income          1,606.7 (8),(9)   1,566.2 (7)     1,294.1 (6)
    Total Revenue (1)            4,583.5           4,566.7         3,896.6
    Provision for Loan Losses    1,794.2           1,940.3           867.7
    Marketing Expenses             297.8             358.2           330.9
    Restructuring Expenses (2)      52.8              27.8             -
    Operating Expenses           1,471.7 (3),(4)   1,749.2 (3),(4) 1,643.2 (3)
    Income Before Taxes            967.0             491.2         1,054.8
    Tax Rate                        34.6 %            34.5 %          35.0 %
    Income From Continuing
     Operations, Net of Tax       $632.6            $321.6          $686.1
    Loss From Discontinued
     Operations, Net of Tax (5)    (84.1) (10)       (95.0)          (11.1)
    Net Income                    $548.5            $226.6          $675.0

    Managed Balance Sheet Statistics
     (period average) (A)
    Average Loans Held for
     Investment                 $149,719          $148,362        $144,113
    Average Earning Assets      $175,709          $175,652        $169,358
    Average Assets              $198,516          $200,658        $193,034
    Return on Average Assets
     (ROA)                          1.27 %            0.64 %          1.42 %

    Managed Balance Sheet
     Statistics (period end) (A)
    Loans Held for Investment   $148,037          $151,362        $142,005
    Total Assets                $199,362          $198,908        $194,252
    Tangible Assets(D)          $185,962          $185,428        $180,501
    Tangible Common Equity (E)   $11,220           $10,814         $12,270
    Tangible Common Equity to
     Tangible Assets Ratio          6.03 %            5.83 %          6.80 %
    % Off-Balance Sheet
     Securitizations                  34 %              33 %            36 %

    Performance Statistics
     (Managed) (A)
    Net Interest Income Growth
     (annualized)                     (3)%              28 %            45 %
    Non Interest Income Growth
     (annualized)                     10 %              13 %            28 %
    Revenue Growth (annualized)        1 %              23 %            39 %
    Net Interest Margin             6.78 %            6.83 %          6.15 %
    Revenue Margin                 10.43 %           10.40 %          9.20 %
    Risk Adjusted Margin (B)        7.06 %            7.45 %          6.97 %
    Non Interest Expense as a %
     of Average Loans Held for
     Investment (annualized)        4.87 %            5.76 %          5.48 %
    Efficiency Ratio (C)           38.61 %           46.15 %         50.66 %

    Asset Quality Statistics
     (Managed) (A)
    Net Charge-Offs               $1,482            $1,296            $947
    Net Charge-Off Rate             3.96 %            3.49 %          2.63 %

    (*) The information in this statistical summary reflects the adjustment to
        add back the effect of securitization transactions qualifying as sales
        under generally accepted accounting principles. See accompanying
        schedule - "Reconciliation to GAAP Financial Measures".



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
                    FINANCIAL & STATISTICAL SUMMARY NOTES

    (1) In accordance with the Company's finance charge and fee revenue
        recognition policy, the amounts billed to customers but not recognized
        as revenue were as follows: Q1 2008 - $407.6 million, Q4 2007 - $379.4
        million and Q1 2007 - $213.6 million.

    (2) During the second quarter of 2007, the Company announced a broad-based
        initiative to reduce expenses and improve its competitive cost
        position. As part of this initiative $52.8 million and $27.8 million
        of restructuring charges were recognized as part of continuing
        operations during  Q1 2008 and Q4 2007, respectively.

    (3) Includes core deposit intangible amortization expense of $49.8 million
        in Q1 2008, $51.1 million in Q4 2007 and $55.0 million in Q1 2007, and
        integration costs of $29.6 million in Q1 2008, $28.6 million in Q4
        2007 and $14.6 million in Q1 2007.

    (4) In Q4 2007, the Company recognized a pre-tax charge of approximately
        $140 million for liabilities in connection with the Visa antitrust
        lawsuit settlement with American Express and estimated possible
        damages in connection with other pending Visa litigation. In Q1 2008,
        the Company, in connection with the Visa initial public offering
        (IPO), reversed approximately $91 million of these legal liabilities.

    (5) In Q3 2007, the Company shutdown the mortgage origination operations
        of its wholesale mortgage banking unit, GreenPoint Mortgage, realizing
        an after tax loss of $898.0 million.  The results of the mortgage
        origination operation of GreenPoint have been accounted for as a
        discontinued operation and have been removed from the Company's
        results of continuing operations for all periods presented. The
        results of GreenPoint's mortgage servicing business are reported in
        continuing operations for all periods presented.  Effective Q4 2007,
        GreenPoint's held for investment commercial and consumer loan
        portfolio results are included in continuing operations.

    (6) Includes a $46.2 million gain resulting  from the sale of a 7% stake
        in the privately held company, DealerTrack Holding Inc., a leading
        provider of on-demand software and data solutions for the automotive
        retail industry in Q1 2007.

    (7) During the fourth quarter 2007, the Company completed the sale of its
        interest in a relationship agreement to develop and market consumer
        credit products in the Spanish Market and recorded a gain related to
        this sale of approximately $30 million in non-interest income.

    (8) In Q1 2008 the Company recorded a gain of $109.0 million in
        non-interest income from the redemption of 2.5 million shares related
        to the Visa IPO.

    (9) In Q1 2008 the Company repurchased approximately $1.0 billion of
        certain senior  unsecured debt, recognizing a gain of $52.0 million in
        non-interest income. The Company initiated the repurchases to take
        advantage of the current rate environment and replaced the borrowings
        with lower-rate unsecured funding.

    (10) In Q1 2008 the Company recorded a pre-tax expense of $104.2 million
         in discontinued operations to cover expected future claims made under
         representations and warranties provided by the Company on loans
         previously sold to third parties by GreenPoint's mortgage origination
         operation.  See also note (5) above.


                       STATISTICS / METRIC DEFINITIONS

    (A)  Based on continuing operations.  Average equity and return on equity
         are based on the Company's stockholders' equity.

    (B)  Risk adjusted margin equals total revenue less net charge-offs as a
         percentage of average earning assets.

    (C)  Efficiency ratio equals non-interest expense less restructuring
         expense divided by total revenue.

    (D)  Tangible assets include managed assets less intangible assets.

    (E)  Includes stockholders' equity and preferred interests less intangible
         assets and related deferred tax liabilities.  Tangible Common Equity
         on a reported and managed basis is the same.



                     CAPITAL ONE FINANCIAL CORPORATION (COF)
        SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
                                MANAGED BASIS (1)
                                         2008          2007          2007
    (in thousands)                        Q1          Q4 (6)        Q1 (6)

    Local Banking:
      Interest Income                  $1,575,325    $1,707,377    $1,746,213
      Interest Expense                  1,008,371     1,122,841     1,169,160
      Net interest income                $566,954      $584,536      $577,053
      Non-interest income                 215,469       206,002       246,573
      Provision for loan losses            60,394        42,665        23,776
      Other non-interest expenses         605,351       589,943       585,915
      Income tax provision                 40,837        54,328        74,737
      Net income                          $75,841      $103,602      $139,198

      Loans Held for Investment       $44,197,085   $43,972,795   $41,642,594
      Average Loans Held for
       Investment                     $43,887,387   $43,128,767   $41,846,678
      Core Deposits (2)               $62,811,696   $62,977,637   $62,769,255
      Total Deposits                  $73,387,227   $73,089,284   $74,315,914

      Loans Held for Investment
       Yield                                6.75%         7.02%         6.99%
      Net Interest Margin - Loans (3)       1.92%         1.87%         1.91%
      Net Interest Margin - Deposits (4)    1.93%         2.05%         1.99%
      Efficiency Ratio (5)                 77.37%        74.63%        71.14%
      Net charge-off rate                   0.31%         0.28%         0.15%
      Non Performing Loans               $249,055      $178,385       $80,162
      Non Performing Loans as a % of
       Loans Held for Investment            0.56%         0.41%         0.19%
      Non-Interest Expenses as a %
       of Average Loans Held for
       Investment                           5.52%         5.47%         5.60%

      Number of Active ATMs                 1,297         1,288         1,236
      Number of locations                     745           742           723


    National Lending (8):
      Interest Income                  $3,530,017    $3,670,404    $3,247,815
      Interest Expense                  1,121,434     1,231,978     1,180,987
      Net interest income              $2,408,583    $2,438,426    $2,066,828
      Non-interest income               1,226,114     1,370,655     1,092,066
      Provision for loan losses         1,677,220     1,777,327       849,216
      Other non-interest expenses       1,279,171     1,361,709     1,390,851
      Income tax provision                236,203       229,084       316,479
      Net income                         $442,103      $440,961      $602,348

      Loans Held for Investment      $103,003,402  $106,508,443  $100,371,532
      Average Loans Held for
       Investment                    $104,973,633  $104,321,485  $102,276,581
      Core Deposits(2)                     $2,171        $1,599        $3,212
      Total Deposits                   $1,774,690    $2,050,861    $2,409,291

      Loans Held for Investment
       Yield                               13.45%        14.07%        12.70%
      Net Interest Margin                   9.18%         9.35%         8.08%
      Revenue Margin                       13.85%        14.61%        12.35%
      Risk Adjusted Margin                  8.51%         9.88%         8.71%
      Non-Interest Expenses as a %
       of Average Loans Held for
       Investment                           4.87%         5.22%         5.44%
      Efficiency Ratio (5)                 35.19%        35.75%        44.03%
      Net charge-off rate                   5.34%         4.73%         3.65%
      Delinquency Rate (30+ days)           4.73%         5.17%         3.63%

      Number of Loan Accounts (000s)       48,065        48,537        48,667


    Other:
      Net interest income                  $1,313      $(22,449)     $(41,427)
      Non-interest income                 165,102       (10,425)      (44,563)
      Provision for loan losses            56,598       120,376        (5,330)
      Restructuring expenses               52,759        27,809           -
      Other non-interest expenses        (115,004)      155,746        (2,719)
      Income tax provision (benefit)       57,451      (113,854)      (22,519)
      Net income (loss)                  $114,611     $(222,951)     $(55,422)

      Loans Held for Investment          $836,041      $881,179       $(9,084)
      Core Deposits (2)               $10,729,004    $6,107,779    $7,532,854
      Total Deposits                  $12,533,025    $7,621,031   $10,745,405


    Total:
      Interest Income                  $4,628,257    $4,863,246    $4,359,663
      Interest Expense                  1,651,407     1,862,733     1,757,209
      Net interest income              $2,976,850    $3,000,513    $2,602,454
      Non-interest income               1,606,685     1,566,232     1,294,076
      Provision for loan losses         1,794,212     1,940,368       867,662
      Restructuring expenses               52,759        27,809           -
      Other non-interest expenses       1,769,518     2,107,398     1,974,047
      Income tax provision                334,491       169,558       368,697
      Net Income                         $632,555      $321,612      $686,124

      Loans Held for Investment      $148,036,528  $151,362,417  $142,005,042
      Core Deposits (2)               $73,542,871   $69,087,015   $70,305,321
      Total Deposits                  $87,694,942   $82,761,176   $87,470,610



                     CAPITAL ONE FINANCIAL CORPORATION (COF)
    NATIONAL LENDING SUBSEGMENT FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING
                                    OPERATIONS
                             MANAGED BASIS (1), (8)

                                             2008         2007         2007
    (in thousands)                            Q1         Q4 (6)       Q1 (6)

    US Card:
      Interest Income                    $2,433,665   $2,548,929   $2,225,128
      Interest Expense                      689,951      780,985      777,382
      Net interest income                $1,743,714   $1,767,944   $1,447,746
      Non-interest income                 1,070,831    1,163,795      892,668
      Provision for loan losses           1,120,025    1,195,469      492,051
      Non-interest expenses                 938,860      976,118    1,027,549
      Income tax provision                  264,481      261,492      282,360
      Net income                           $491,179     $498,660     $538,454

      Loans Held for Investment         $67,382,004  $69,723,169  $65,369,362
      Average Loans Held for Investment $68,544,190  $67,727,632  $67,258,715

      Loans Held for Investment Yield        14.20%       15.05%       13.23%
      Net Interest Margin                    10.18%       10.44%        8.61%
      Revenue Margin                         16.42%       17.31%       13.92%
      Risk Adjusted Margin                   10.58%       12.47%       10.20%
      Non-Interest Expenses as a % of
       Average Loans Held for
       Investment                             5.48%        5.76%        6.11%
      Efficiency Ratio                       33.36%       33.29%       43.90%
      Net charge-off rate                     5.85%        4.84%        3.72%
      Delinquency Rate (30+ days)             4.04%        4.28%        3.06%

      Purchase Volume (7)               $24,543,082  $28,230,725  $24,075,372
      Number of Loan Accounts (000s)         40,611       41,044       41,318

    Auto Finance:
      Interest Income                      $690,919     $687,389     $637,609
      Interest Expense                      289,357      300,133      265,556
      Net interest income                  $401,562     $387,256     $372,053
      Non-interest income                    16,110       14,888       60,586
      Provision for loan losses             408,251      429,247      200,058
      Non-interest expenses                 136,169      144,301      164,948
      Income tax (benefit) provision        (44,362)     (58,963)      23,266
      Net (loss) income                    $(82,386)   $(112,441)     $44,367

      Loans Held for Investment         $24,633,665  $25,128,352  $23,930,547
      Average Loans Held for Investment $25,047,501  $24,920,380  $23,597,675

      Loans Held for Investment Yield        11.03%       11.03%       10.81%
      Net Interest Margin                     6.41%        6.22%        6.31%
      Revenue Margin                          6.67%        6.45%        7.33%
      Risk Adjusted Margin                    2.69%        2.46%        5.04%
      Non-Interest Expenses as a % of
       Average Loans Held for
       Investment                             2.17%        2.32%        2.80%
      Efficiency Ratio                       32.60%       35.88%       38.13%
      Net charge-off rate                     3.98%        4.00%        2.29%
      Delinquency Rate (30+ days)             6.42%        7.84%        4.64%

      Auto Loan Originations             $2,440,227   $3,623,491   $3,311,868
      Number of Loan Accounts (000s)          1,763        1,771        1,762

    International:
      Interest Income                      $405,433     $434,086     $385,078
      Interest Expense                      142,126      150,860      138,049
      Net interest income                  $263,307     $283,226     $247,029
      Non-interest income                   139,173      191,972      138,812
      Provision for loan losses             148,944      152,611      157,107
      Non-interest expenses                 204,142      241,290      198,354
      Income tax provision                   16,084       26,555       10,853
      Net income                            $33,310      $54,742      $19,527

      Loans Held for Investment         $10,987,733  $11,656,922  $11,071,623
      Average Loans Held for Investment $11,381,942  $11,673,473  $11,420,191

      Loans Held for Investment Yield        14.25%       14.87%       13.49%
      Net Interest Margin                     9.25%        9.70%        8.65%
      Revenue Margin                         14.14%       16.28%       13.51%
      Risk Adjusted Margin                    8.84%       10.67%        7.47%
      Non-Interest Expenses as a % of
       Average Loans Held for
       Investment                             7.17%        8.27%        6.95%
      Efficiency Ratio                       50.72%       50.78%       51.41%
      Net charge-off rate                     5.30%        5.61%        6.04%
      Delinquency Rate (30+ days)             5.12%        4.79%        4.78%

      Purchase Volume (7)                $2,716,060   $2,966,350   $1,874,981
      Number of Loan Accounts (000s)          5,691        5,722        5,587



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
                   SEGMENT AND NATIONAL LENDING SUBSEGMENT
       FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS NOTES

    (1) The information in this statistical summary reflects the adjustment to
        add back the effect of securitization transactions qualifying as sales
        under generally accepted accounting principles.  See accompanying
        schedule - "Reconciliation to GAAP Financial Measures." In Q3 2007,
        the Company shutdown the mortgage origination operations of its
        wholesale mortgage banking unit, GreenPoint Mortgage. The results of
        the mortgage origination operation of GreenPoint have been accounted
        for as a discontinued operation and have been removed from the
        Company's results of continuing operations for all periods presented.
        The results of GreenPoint's mortgage servicing business are reported
        in continuing operations for all periods presented.  Effective Q4
        2007, GreenPoint's held for investment commercial and consumer loan
        portfolio results are included in continuing operations.

    (2) Includes domestic non-interest bearing deposits, NOW accounts, money
        market deposit accounts, savings accounts, certificates of deposit of
        less than $100,000 and other consumer time deposits.

    (3) Net Interest Margin - Loans equals interest income earned on loans
        divided by average managed loans.

    (4) Net Interest Margin - Deposits equals interest expense incurred on
        deposits divided by average retail deposits.

    (5) Efficiency Ratio equals non-interest expenses divided by total managed
        revenue.

    (6) Certain prior period amounts have been reclassified to conform with
        current period presentation.

    (7) Includes all purchase transactions net of returns and excludes cash
        advance transactions.

    (8) In Q1 2008 the Company reorganized its National Lending subsegments
        from U.S. Card, Auto Finance and Global Financial Services to U.S.
        Card and Other National Lending.  The U.S. Card subsegment contains
        the results of the Company's domestic credit card business, small
        business lending and the installment loan business.  The Other
        National Lending subsegment contains the results of the Company's auto
        finance business and the Company's international lending businesses.
        Components of the Other National Lending subsegment are separately
        disclosed. Segment and subsegment results have been restated for all
        periods presented.



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
                             U.S. CARD SUBSEGMENT
               MONTHLY CHARGE-OFF AND DELINQUENCY STATISTICS(1)

    (in thousands)                       March 2008 February 2008 January 2008

    US Card:
      Net Principal Charge-Offs            $342,098      $314,455     $345,673
      Average Loans Held for Investment $67,585,454   $68,635,480  $69,407,764
      Annualized Net Charge-Off Rate          6.07%         5.50%        5.98%
      30 Days + Delinquencies            $2,723,515    $2,871,007   $3,009,706
      Period-end Loans Held for
       Investment                       $67,382,681   $68,247,741  $69,080,666
      30 Days + Delinquency Rate              4.04%         4.21%        4.36%


    (1) In connection with the National Lending subsegment reorganization in
        Q1 2008 the Company is restating the monthly charge-off and
        delinquency statistics for U.S. Card.  The restated U.S. Card
        subsegment contains the results of the Company's domestic credit card
        business, small business lending and the installment loan business.



    CAPITAL ONE FINANCIAL CORPORATION
    Reconciliation to GAAP Financial Measures
    For the Three Months Ended March 31, 2008
    (dollars in thousands)(unaudited)

The Company's consolidated financial statements prepared in accordance with generally accepted accounting principles ("GAAP") are referred to as its "reported" financial statements. Loans included in securitization transactions which qualified as sales under GAAP have been removed from the Company's "reported" balance sheet. However, servicing fees, finance charges, and other fees, net of charge-offs, and interest paid to investors of securitizations are recognized as servicing and securitizations income on the "reported" income statement.

The Company's "managed" consolidated financial statements reflect adjustments made related to effects of securitization transactions qualifying as sales under GAAP. The Company generates earnings from its "managed" loan portfolio which includes both the on-balance sheet loans and off-balance sheet loans. The Company's "managed" income statement takes the components of the servicing and securitizations income generated from the securitized portfolio and distributes the revenue and expense to appropriate income statement line items from which it originated. For this reason the Company believes the "managed" consolidated financial statements and related managed metrics to be useful to stakeholders.


                                                                     Total
                                     Total Reported Adjustments(1) Managed(2)
    Income Statement Measures(3)
    Net interest income                 $1,811,917   $1,164,933    $2,976,850
    Non-interest income                  2,056,478     (449,793)    1,606,685
    Total revenue                        3,868,395      715,140     4,583,535
    Provision for loan losses            1,079,072      715,140     1,794,212
    Net charge-offs                       $767,134     $715,140    $1,482,274

    Balance Sheet Measures
    Loans held for investment          $98,356,088  $49,680,440  $148,036,528
    Total assets                      $150,608,527  $48,933,606  $199,542,133
    Average loans held for investment  $99,818,867  $49,900,631  $149,719,498
    Average earning assets            $127,867,951  $47,888,798  $175,756,749
    Average total assets              $151,294,899  $49,055,552  $200,350,451
    Delinquencies                       $3,206,724   $2,061,963    $5,268,687

    (1) Income statement adjustments reclassify the net of finance charges of
        $1,524.0 million, past-due fees of $263.5 million, other interest
        income of $(38.8) million and interest expense of $583.8 million; and
        net charge-offs of $715.1 million from non-interest income to net
        interest income and provision for loan losses, respectively.

    (2) The managed loan portfolio does not include auto loans which have been
        sold in whole loan sale transactions where the Company has retained
        servicing rights.

    (3) Based on continuing operations.



    CAPITAL ONE FINANCIAL CORPORATION
    Consolidated Balance Sheets
    (in thousands)(unaudited)

                                       As of         As of         As of
                                      March 31    December 31     March 31
                                        2008          2007          2007
    Assets:
    Cash and due from banks          $2,324,079    $2,377,287    $2,286,913
    Federal funds sold and resale
     agreements                       1,842,775     1,766,762     8,293,338
    Interest-bearing deposits at
     other banks                        663,150       677,360       844,907
      Cash and cash equivalents       4,830,004     4,821,409    11,425,158
    Securities available for sale    22,190,739    19,781,587    17,657,734
    Mortgage loans held for sale        192,584       315,863     4,738,765
    Loans held for investment        98,356,088   101,805,027    90,869,496
      Less:  Allowance for loan and
       lease losses                  (3,273,355)   (2,963,000)   (2,105,000)
    Net loans held for investment    95,082,733    98,842,027    88,764,496
    Accounts receivable from
     securitizations                  5,396,943     4,717,879     5,371,385
    Premises and equipment, net       2,316,233     2,299,603     2,258,861
    Interest receivable                 750,319       839,317       720,511
    Goodwill                         12,826,419    12,830,740    13,619,445
    Other                             7,022,553     6,141,944     4,142,250
      Total assets                 $150,608,527  $150,590,369  $148,698,605


    Liabilities:
    Non-interest-bearing deposits   $11,071,116   $11,046,549   $11,357,736
    Interest-bearing deposits        76,623,826    71,714,627    76,112,874
    Senior and subordinated notes     9,834,392    10,712,706     9,436,021
    Other borrowings                 21,673,670    26,812,969    20,437,982
    Interest payable                    509,278       631,609       540,160
    Other                             6,276,718     5,377,797     4,793,062
      Total liabilities             125,989,000   126,296,257   122,677,835

    Stockholders' Equity:
    Common stock                          4,213         4,192         4,146
    Paid-in capital, net             15,918,230    15,860,490    15,465,341
    Retained earnings and
     cumulative other
     comprehensive income            11,860,288    11,582,816    10,684,768
      Less:  Treasury stock, at
       cost                          (3,163,204)   (3,153,386)     (133,485)
      Total stockholders' equity     24,619,527    24,294,112    26,020,770
      Total liabilities and
       stockholders' equity        $150,608,527  $150,590,369  $148,698,605



    CAPITAL ONE FINANCIAL CORPORATION
    Consolidated Statements of Income
    (in thousands, except per share data)(unaudited)


                                                   Three Months Ended
                                            March 31  December 31  March 31(1)
                                              2008        2007        2007

    Interest Income:
    Loans held for investment, including
     past-due fees                         $2,507,724  $2,536,779  $2,326,680
    Securities available for sale             257,747     256,364     204,080
    Other                                     114,054     167,051     181,549
       Total interest income                2,879,525   2,960,194   2,712,309

    Interest Expense:
    Deposits                                  610,389     686,174     730,483
    Senior and subordinated notes             140,970     159,878     138,546
    Other borrowings                          316,249     351,895     238,737
       Total interest expense               1,067,608   1,197,947   1,107,766
    Net interest income                     1,811,917   1,762,247   1,604,543
    Provision for loan and lease losses     1,079,072   1,294,210     350,045
    Net interest income after provision
     for loan and lease losses                732,845     468,037   1,254,498

    Non-Interest Income:
    Servicing and securitizations           1,083,062   1,271,396     988,082
    Service charges and other customer-
     related fees                             574,061     573,034     479,467
    Mortgage servicing and other               35,255      (5,700)     51,450
    Interchange                               151,902     152,595     118,111
    Other                                     212,198     167,015     137,260
       Total non-interest income            2,056,478   2,158,340   1,774,370

    Non-Interest Expense:
    Salaries and associate benefits           611,280     622,101     675,171
    Marketing                                 297,793     358,182     330,894
    Communications and data processing        187,243     189,415     182,234
    Supplies and equipment                    130,931     146,267     133,898
    Occupancy                                  88,080      91,675      77,395
    Restructuring expense                      52,759      27,809         -
    Other                                     454,191     699,758     574,455
       Total non-interest expense           1,822,277   2,135,207   1,974,047
    Income from continuing operations
     before income taxes                      967,046     491,170   1,054,821
    Income taxes                              334,491     169,558     368,697
    Income from continuing operations, net
     of tax                                   632,555     321,612     686,124
    Loss from discontinued operations, net
     of tax(2)                                (84,051)    (95,044)    (11,074)
    Net income                               $548,504    $226,568    $675,050


    Basic earnings per share
    Income from continuing operations           $1.71       $0.85       $1.68
    Loss from discontinued operations           (0.23)      (0.25)      (0.03)
    Net income                                  $1.48       $0.60       $1.65

    Diluted earnings per share
    Income from continuing operations           $1.70       $0.85       $1.65
    Loss from discontinued operations           (0.23)      (0.25)      (0.03)
    Net income                                  $1.47       $0.60       $1.62

    Dividends paid per share                   $0.375       $0.03       $0.03

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation.

    (2) In Q3 2007, the Company shutdown the mortgage origination operations
        of its wholesale mortgage banking unit, GreenPoint Mortgage. The
        results of the mortgage origination operation of GreenPoint have been
        accounted for as a discontinued operation and have been removed from
        the Company's results of continuing operations for all periods
        presented.



    CAPITAL ONE FINANCIAL CORPORATION
    Statements of Average Balances, Income and Expense, Yields and Rates
    (dollars in thousands)(unaudited)

    Reported                                     Quarter Ended 3/31/08
                                            Average       Income/     Yield/
                                            Balance       Expense      Rate
    Earning assets:
      Loans held for investment            $99,818,867   $2,507,724   10.05%
      Securities available for sale         21,211,356      257,747    4.86%
      Other                                  6,789,537      114,054    6.72%
    Total earning assets (2)              $127,819,760   $2,879,525    9.01%

    Interest-bearing liabilities:
     Interest-bearing deposits
        NOW accounts                        $3,958,482      $17,714    1.79%
        Money market deposit accounts       29,636,896      211,436    2.85%
        Savings accounts                     8,064,412       24,008    1.19%
        Other Consumer Time Deposits        18,429,463      204,942    4.45%
        Public Fund CD's of $100,000 or
         more                                1,671,936       15,718    3.76%
        CD's of $100,000 or more             8,756,978       99,264    4.53%
        Foreign time deposits                3,648,797       37,307    4.09%
      Total Interest-bearing deposits      $74,166,964     $610,389    3.29%
      Senior and subordinated notes         10,099,878      140,970    5.58%
      Other borrowings                      25,449,240      316,249    4.97%
    Total interest-bearing liabilities(2) $109,716,082   $1,067,608    3.89%

    Net interest spread                                                5.12%

    Interest income to average earning
     assets                                                            9.01%
    Interest expense to average earning
     assets                                                            3.34%
    Net interest margin                                                5.67%


    Reported                                    Quarter Ended 12/31/07 (1)
                                            Average       Income/     Yield/
                                            Balance       Expense      Rate
    Earning assets:
      Loans held for investment            $97,784,813   $2,536,779   10.38%
      Securities available for sale         20,102,440      256,364    5.10%
      Other                                  9,355,161      167,051    7.14%
    Total earning assets (2)              $127,242,414   $2,960,194    9.31%

    Interest-bearing liabilities:
      Interest-bearing deposits
        NOW accounts                        $4,674,490      $30,443    2.61%
        Money market deposit accounts       28,745,701      270,943    3.77%
        Savings accounts                     8,172,510       32,520    1.59%
        Other Consumer Time Deposits        16,374,958      183,570    4.48%
        Public Fund CD's of $100,000 or
         more                                1,902,442       23,126    4.86%
        CD's of $100,000 or more             8,335,941       97,335    4.67%
        Foreign time deposits                3,868,444       48,237    4.99%
      Total Interest-bearing deposits      $72,074,486     $686,174    3.81%
      Senior and subordinated notes         10,682,635      159,878    5.99%
      Other borrowings                      26,671,101      351,895    5.28%
    Total interest-bearing liabilities(2) $109,428,222   $1,197,947    4.38%

    Net interest spread                                                4.93%

    Interest income to average earning
     assets                                                            9.31%
    Interest expense to average earning
     assets                                                            3.77%
    Net interest margin                                                5.54%


    Reported                                   Quarter Ended 3/31/07 (1)
                                            Average       Income/    Yield/
                                            Balance       Expense     Rate
    Earning assets:
      Loans held for investment            $93,465,873   $2,326,680   9.96%
      Securities available for sale         16,598,686      204,080   4.92%
      Other                                 10,701,814      181,549   6.79%
    Total earning assets (2)              $120,766,373   $2,712,309   8.98%

    Interest-bearing liabilities:
      Interest-bearing deposits
        NOW accounts                        $5,066,120      $35,414   2.80%
        Money market deposit accounts       25,273,763      249,654   3.95%
        Savings accounts                     8,384,994       35,529   1.69%
        Other Consumer Time Deposits        19,599,576      213,051   4.35%
        Public Fund CD's of $100,000 or
         more                                2,038,785       24,897   4.88%
        CD's of $100,000 or more            10,339,958      122,618   4.74%
        Foreign time deposits                3,950,808       49,320   4.99%
      Total Interest-bearing deposits      $74,654,004     $730,483   3.91%
      Senior and subordinated notes          9,517,209      138,546   5.82%
      Other borrowings                      17,908,044      238,737   5.33%
    Total interest-bearing liabilities(2) $102,079,257   $1,107,766   4.34%

    Net interest spread                                               4.64%

    Interest income to average earning
     assets                                                           8.98%
    Interest expense to average earning
     assets                                                           3.67%
    Net interest margin                                               5.31%


    (1) Prior period amounts have been reclassified to conform with current
        period presentation.
    (2) Average balances, income and expenses, yields and rates are based on
        continuing operations.



    CAPITAL ONE FINANCIAL CORPORATION
    Statements of Average Balances, Income and Expense, Yields and Rates
    (dollars in thousands)(unaudited)

    Managed (1)                                   Quarter Ended 3/31/08
                                             Average       Income/    Yield/
                                             Balance       Expense     Rate
    Earning assets:

      Loans held for investment            $149,719,498   $4,315,625   11.53%
      Securities available for sale          21,211,356      257,747    4.86%
      Other                                   4,777,704       54,884    4.60%
    Total earning assets (3)               $175,708,558   $4,628,256   10.54%

    Interest-bearing liabilities:
     Interest-bearing deposits
        NOW accounts                         $3,958,482      $17,714    1.79%
        Money market deposit accounts        29,636,896      211,436    2.85%
        Savings accounts                      8,064,412       24,008    1.19%
        Other Consumer Time Deposits         18,429,463      204,942    4.45%
        Public Fund CD's of $100,000 or
         more                                 1,671,936       15,718    3.76%
        CD's of $100,000 or more              8,756,978       99,264    4.53%
        Foreign time deposits                 3,648,797       37,307    4.09%
      Total Interest-bearing deposits       $74,166,964     $610,389    3.29%
      Senior and subordinated notes          10,099,878      140,970    5.58%
      Other borrowings                       25,449,240      316,249    4.97%
      Securitization liability               49,270,231      583,798    4.74%
    Total interest-bearing liabilities(3)  $158,986,313   $1,651,406    4.15%

    Net interest spread                                                 6.39%

    Interest income to average earning
     assets                                                            10.54%
    Interest expense to average earning
     assets                                                             3.76%
    Net interest margin                                                 6.78%


    Managed (1)                                 Quarter Ended 12/31/07 (2)
                                             Average       Income/    Yield/
                                             Balance       Expense     Rate
    Earning assets:

      Loans held for investment            $148,362,338   $4,512,219   12.17%
      Securities available for sale          20,102,440      256,364    5.10%
      Other                                   7,186,892       94,663    5.27%
    Total earning assets (3)               $175,651,670   $4,863,246   11.07%

    Interest-bearing liabilities:
     Interest-bearing deposits
        NOW accounts                         $4,674,490      $30,443    2.61%
        Money market deposit accounts        28,745,701      270,943    3.77%
        Savings accounts                      8,172,510       32,520    1.59%
        Other Consumer Time Deposits         16,374,958      183,570    4.48%
        Public Fund CD's of $100,000 or
         more                                 1,902,442       23,126    4.86%
        CD's of $100,000 or more              8,335,941       97,335    4.67%
        Foreign time deposits                 3,868,444       48,237    4.99%
      Total Interest-bearing deposits       $72,074,486     $686,174    3.81%
      Senior and subordinated notes          10,682,635      159,878    5.99%
      Other borrowings                       26,671,101      351,895    5.28%
      Securitization liability               49,847,555      664,786    5.33%
    Total interest-bearing liabilities(3)  $159,275,777   $1,862,733    4.68%

    Net interest spread                                                 6.39%

    Interest income to average earning
     assets                                                            11.07%
    Interest expense to average earning
     assets                                                             4.24%
    Net interest margin                                                 6.83%


    Managed (1)                                  Quarter Ended 3/31/07 (2)
                                             Average       Income/    Yield/
                                             Balance       Expense     Rate
    Earning assets:

      Loans held for investment            $144,112,789   $4,035,997   11.20%
      Securities available for sale          16,598,686      204,080    4.92%
      Other                                   8,646,251      119,586    5.53%
    Total earning assets (3)               $169,357,726   $4,359,663   10.30%

    Interest-bearing liabilities:
     Interest-bearing deposits
        NOW accounts                         $5,066,120      $35,414    2.80%
        Money market deposit accounts        25,273,763      249,654    3.95%
        Savings accounts                      8,384,994       35,529    1.69%
        Other Consumer Time Deposits         19,599,576      213,051    4.35%
        Public Fund CD's of $100,000 or
         more                                 2,038,785       24,897    4.88%
        CD's of $100,000 or more             10,339,958      122,618    4.74%
        Foreign time deposits                 3,950,808       49,320    4.99%
      Total Interest-bearing deposits       $74,654,004     $730,483    3.91%
      Senior and subordinated notes           9,517,209      138,546    5.82%
      Other borrowings                       17,908,044      238,737    5.33%
      Securitization liability               49,999,873      649,443    5.20%
    Total interest-bearing liabilities(3)  $152,079,130   $1,757,209    4.62%

    Net interest spread                                                 5.68%

    Interest income to average earning
     assets                                                            10.30%
    Interest expense to average earning
     assets                                                             4.15%
    Net interest margin                                                 6.15%


    (1) The information in this table reflects the adjustment to add back the
        effect of securitized loans.
    (2) Prior period amounts have been reclassified to conform with current
        period presentation.
    (3) Average balances, income and expenses, yields and rates are based on
        continuing operations.

SOURCE: Capital One Financial Corporation

CONTACT:
Investor Relations, Jeff Norris, +1-703-720-2455
or
Media Relations, Tatiana Stead, +1-703-720-2352
or
Julie Rakes, +1-804-284-5800
all of Capital One Financial Corporation