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Capital One Reports Second Quarter Earnings per Share Increase Of 34% Over Year Ago Period

July 16, 2003 at 4:08 PM EDT

MCLEAN, Va., Jul 16, 2003 /PRNewswire-FirstCall via COMTEX/ -- Capital One Financial Corporation (NYSE: COF) today announced that its second quarter of 2003 earnings per share increased by 34 percent over the same period in the prior year. This increase in earnings was driven primarily by the improved profitability of its auto and international businesses.

Earnings for the second quarter of 2003 were $286.8 million, or $1.23 per share (fully diluted) compared with earnings of $213.1 million, or $0.92 per share, for the second quarter of 2002. Earnings in the first quarter of 2003 were $309.1 million, or $1.35 per share.

The managed charge-off rate declined to 6.32 percent in the second quarter of 2003, from 6.47 percent in the previous quarter. The managed delinquency rate declined to 4.95 percent from 4.97 percent at the end of the previous quarter.

"We continue to expect that we will report earnings per share of at least $4.55 for 2003, as we increase our marketing and Allowance for Loan Losses to support the more robust portfolio growth we expect in the second half," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "We are pleased that charge-offs declined in the quarter, as predicted, to 6.32 percent and we expect additional improvement in the second half of the year."

The company continues to shift its portfolio mix to higher quality loans. As a consequence, Capital One's managed revenue margin declined to 14.85 percent in the second quarter of 2003 from 15.70 percent in the previous quarter. The managed risk-adjusted margin declined to 9.23 percent from 9.77 percent in the previous quarter. The company expects that the revenue margin will drift lower as it continues to shift its mix to higher quality loans.

Capital One's managed loan balance increased by $1.5 billion to $60.7 billion at the end of the second quarter. Also, during the second quarter, as part of its ongoing program of auto-loan sales, the company sold $1.3 billion in auto loans, recording a gain of $35.0 million. The company expects to continue to sell auto loans in the second half of the year, yet hold a higher proportion of auto loan growth on its balance sheet. The company's accounts declined by 638 thousand to 45.8 million at the end of the second quarter.

"We continue to expect managed loan growth of 15 to 20 percent in 2003," said David R. Lawson, Capital One's Chief Financial Officer. "Our diversified efforts in auto finance and international will be an increasing contributor to the earnings growth of Capital One this year."

Marketing expenses for the second quarter of 2003 increased $28.9 million to $270.6 million from $241.7 million in the first quarter. Marketing expenses were $320.4 million in the comparable period of the prior year. Other non-interest expenses (excluding marketing) for the second quarter of 2003 were $880.0 million versus $931.2 million for the first quarter and $833.2 million in the comparable period of the prior year. Annualized operating cost per account decreased to $76.35 for the second quarter of 2003 from $79.43 in the prior quarter.

The company generates earnings from its managed loan portfolio which includes both on-balance sheet loans and off-balance sheet loans. For this reason the company believes the 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. Please see the schedule entitled "Reconciliation to GAAP Financial Measures" attached to this release for more information.

The company cautioned that its current expectations for 2003 earnings, charge-off rates, margins, marketing expense, Allowance for Loan Losses, and future loan growth are forward-looking statements and actual results could differ materially from current expectations due to a number of factors, including: competition in the credit card industry; the actual account and balance growth achieved by the company; the company's ability to access the capital markets at attractive rates and terms to fund its operations and future growth; and general economic conditions affecting consumer income and spending, which may affect consumer bankruptcies, defaults and charge-offs.

A discussion of these and other factors can be found in Capital One's annual and other reports filed with the Securities and Exchange Commission, including, but not limited to, Capital One's report on Form 10-Q for the quarter ended March 31, 2003.

Headquartered in McLean, Virginia, Capital One Financial Corporation (www.capitalone.com) is a holding company whose principal subsidiaries include: Capital One Bank and Capital One, F.S.B., which offer consumer lending products, and Capital One Auto Finance, Inc., which offers auto loan products. Capital One's subsidiaries collectively had 45.8 million managed accounts and $60.7 billion in managed loans outstanding as of June 30, 2003. Capital One, a Fortune 500 company, is one of the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 500 index.



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
              FINANCIAL & STATISTICAL SUMMARY REPORTED BASIS(5)

                                                   2003              2003
                                                    Q2                Q1
    (in millions, except per share data
     and as noted)
    Earnings (Reported Basis)
    Net Interest Income                         $   682.3         $   734.8
    Non-Interest Income                           1,310.6           1,304.6
    Total Revenue(1)                              1,992.9           2,039.4
    Provision for Loan Losses                       387.1             375.9
    Marketing Expenses                              270.6             241.7
    Operating Expenses                              880.0             931.2
    Income Before Taxes                             455.2             490.6
    Tax Rate                                         37.0 %            37.0 %
    Net Income                                  $   286.8         $   309.1
    Common Share Statistics
    Basic EPS                                   $    1.28         $    1.39
    Diluted EPS                                 $    1.23         $    1.35
    Dividends Per Share                         $    0.03         $    0.03
    Book Value Per Share (period end)           $   23.37         $   21.78
    Stock Price Per Share (period end)          $   49.18         $   30.01
    Total Market Capitalization (period end)    $11,170.0         $ 6,791.8
    Shares Outstanding (period end)                 227.1             226.3
    Shares Used to Compute Basic EPS                223.7             223.0
    Shares Used to Compute Diluted EPS              232.6             228.4
    Reported Balance Sheet Statistics
     (period avg.)
    Average Loans                               $  27,101         $  27,316
    Average Earning Assets                      $  36,298         $  34,144
    Average Assets                              $  39,678         $  38,318
    Average Equity                              $   5,148         $   4,823
    Net Interest Margin                              7.52 %            8.61 %
    Revenue Margin                                  21.96 %           23.89 %
    Risk Adjusted Margin (2)                        17.16 %           18.49 %
    Return on Average Assets (ROA)                   2.89 %            3.23 %
    Return on Average Equity (ROE)                  22.28 %           25.64 %
    Net Charge-Off Rate                              6.43 %            6.76 %
    Net Charge-Offs                             $   435.6         $   461.5
    Reported Balance Sheet Statistics
     (period end)
    Loans                                       $  26,849         $  27,634
    Delinquency Rate (30+ days)                      5.61 %            5.39 %
    Total Assets                                $  40,367         $  37,911
    Allowance as a % of reported loans               5.92 %            5.92 %
    Capital (4)                                 $ 6,130.4         $ 5,749.0
    Capital to Assets Ratio                         15.19 %           15.16 %
    Capital plus Allowance to Assets Ratio          19.24 %           19.48 %

    (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:  Q2 2003 - $497.3 million, Q1 2003 -
        $519.7 million, Q4 2002 - $675.7 million, Q3 2002 - $489.6 million and
        Q2 2002 - $574.4 million.
    (2) Risk adjusted margin is total revenue less net charge-offs as a
        percentage of average earning assets.
    (3) Includes $110.0 million of one-time charges in Q3 2002.
    (4) Includes preferred interests and mandatory convertible securities.
    (5) Certain prior period amounts have been reclassified to conform to the
        current period presentation related to the adoption of Financial
        Accounting Standards Board Staff Position, "Accrued Interest
        Receivable", that was issued in April 2003.



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
              FINANCIAL & STATISTICAL SUMMARY REPORTED BASIS(5)

                                           2002        2002          2002
                                            Q4          Q3            Q2
    (in millions, except per share data
     and as noted)
    Earnings (Reported Basis)
    Net Interest Income                 $   731.0   $   722.4     $   654.4
    Non-Interest Income                   1,320.3     1,520.2       1,384.8
    Total Revenue(1)                      2,051.4     2,242.6       2,039.2
    Provision for Loan Losses               543.8       674.1         541.8
    Marketing Expenses                      210.8       185.8         320.4
    Operating Expenses                      910.2       965.2(3)      833.2
    Income Before Taxes                     386.6       417.5         343.7
    Tax Rate                                 38.0 %      38.0 %        38.0 %
    Net Income                          $   239.7   $   258.8     $   213.1
    Common Share Statistics
    Basic EPS                           $    1.08   $    1.17     $    0.97
    Diluted EPS                         $    1.05   $    1.13     $    0.92
    Dividends Per Share                 $    0.03   $    0.03     $    0.03
    Book Value Per Share (period end)   $   20.44   $   19.55     $   18.13
    Stock Price Per Share (period end)  $   29.72   $   34.92     $   61.05
    Total Market Capitalization (period
     end)                               $ 6,722.5   $ 7,744.2     $13,512.9
    Shares Outstanding (period end)         226.2       221.8         221.3
    Shares Used to Compute Basic EPS        221.8       220.6         220.0
    Shares Used to Compute Diluted EPS      228.2       228.4         231.7
    Reported Balance Sheet Statistics
     (period avg.)
    Average Loans                       $  27,260   $  26,058     $  24,876
    Average Earning Assets              $  34,075   $  32,449     $  30,678
    Average Assets                      $  37,208   $  35,470     $  34,040
    Average Equity                      $   4,568   $   4,418     $   4,021
    Net Interest Margin                      8.58 %      8.91 %        8.53 %
    Revenue Margin                          24.08 %     27.64 %       26.59 %
    Risk Adjusted Margin (2)                19.18 %     23.90 %       22.69 %
    Return on Average Assets (ROA)           2.58 %      2.92 %        2.50 %
    Return on Average Equity (ROE)          20.99 %     23.44 %       21.20 %
    Net Charge-Off Rate                      6.13 %      4.66 %        4.81 %
    Net Charge-Offs                     $   417.7   $   303.9     $   299.4
    Reported Balance Sheet Statistics
     (period end)
    Loans                               $  27,344   $  27,598     $  24,496
    Delinquency Rate (30+ days)              6.12 %      5.71 %        4.51 %
    Total Assets                        $  37,382   $  36,910     $  33,834
    Allowance as a % of reported loans       6.29 %      5.78 %        5.05 %
    Capital (4)                         $ 5,440.4   $ 5,149.6     $ 4,823.6
    Capital to Assets Ratio                 14.55 %     13.95 %       14.26 %
    Capital plus Allowance to Assets
     Ratio                                  19.15 %     18.27 %       17.91 %

    (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:  Q2 2003 - $497.3 million, Q1 2003 -
        $519.7 million, Q4 2002 - $675.7 million, Q3 2002 - $489.6 million and
        Q2 2002 - $574.4 million.
    (2) Risk adjusted margin is total revenue less net charge-offs as a
        percentage of average earning assets.
    (3) Includes $110.0 million of one-time charges in Q3 2002.
    (4) Includes preferred interests and mandatory convertible securities.
    (5) Certain prior period amounts have been reclassified to conform to the
        current period presentation related to the adoption of Financial
        Accounting Standards Board Staff Position, "Accrued Interest
        Receivable", that was issued in April 2003.



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
             FINANCIAL & STATISTICAL SUPPLEMENT REPORTED BASIS(1)

                                                 2003              2003
                                                  Q2                Q1
    (in millions, except per share data
     and as noted)
    Revenue & Expense Statistics (Reported)
    Net interest income growth (annualized)          (29)%               2 %
    Non interest income growth (annualized)            2 %              (5)%
    Revenue growth (annualized)                       (9)%              (2)%
    Revenue margin (average loans)                 29.41 %           29.86 %
    Risk adjusted margin (average loans)           22.98 %           23.11 %
    Ops cost as a % of revenues                    44.16 %           45.66 %
    Ops cost as a % of average loans
     (annualized)                                  12.99 %           13.64 %
    Per Account Statistics (Reported)
    Net interest income per account
     (annualized)                              $   59.19         $   62.68
    Non interest income per account
     (annualized)                              $  113.71         $  111.28
    Revenue per account (annualized)           $  172.90         $  173.95
    Growth Statistics (Reported)
    Net new loans                              $    (785)        $     290
    % loan growth Q over Q (annualized)              (11)%               4 %
    % loan growth Y over Y                            10 %              15 %

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation related to the adoption of Financial
        Accounting Standards Board Staff Position, "Accrued Interest
        Receivable", that was issued in April 2003.



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
             FINANCIAL & STATISTICAL SUPPLEMENT REPORTED BASIS(1)

                                              2002        2002        2002
                                               Q4          Q3          Q2
    (in millions, except per share data
     and as noted)
    Revenue & Expense Statistics
     (Reported)
    Net interest income growth
     (annualized)                                5 %        42 %        28 %
    Non interest income growth
     (annualized)                              (53)%        39 %        46 %
    Revenue growth (annualized)                (34)%        40 %        40 %
    Revenue margin (average loans)           30.10 %     34.43 %     32.79 %
    Risk adjusted margin (average loans)     23.97 %     29.76 %     27.98 %
    Ops cost as a % of revenues              44.37 %     43.04 %     40.86 %
    Ops cost as a % of average loans
     (annualized)                            13.36 %     14.82 %     13.40 %
    Per Account Statistics (Reported)
    Net interest income per account
     (annualized)                        $   61.22   $   59.72   $   54.97
    Non interest income per account
     (annualized)                        $  110.57   $  125.67   $  116.33
    Revenue per account (annualized)     $  171.78   $  185.39   $  171.30
    Growth Statistics (Reported)
    Net new loans                        $    (254)  $   3,102   $     532
    % loan growth Q over Q (annualized)         (4)%        51 %         9 %
    % loan growth Y over Y                      31 %        58 %        50 %


    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation related to the adoption of Financial
        Accounting Standards Board Staff Position, "Accrued Interest
        Receivable", that was issued in April 2003.



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
               FINANCIAL & STATISTICAL SUMMARY MANAGED BASIS(4)

                                                 2003              2003
                                                  Q2                Q1
    (in millions, except per share data
     and as noted)
    Earnings (Managed Basis)
    Net Interest Income                        $ 1,457.5         $ 1,508.0
    Non-Interest Income                          1,046.0           1,027.9
    Total Revenue(1)                             2,503.5           2,535.9
    Provision for Loan Losses                      897.7             872.3
    Marketing Expenses                             270.6             241.7
    Operating Expenses                             880.0             931.2
    Income Before Taxes                            455.2             490.6
    Tax Rate                                        37.0 %            37.0 %
    Net Income                                 $   286.8         $   309.1
    Managed Balance Sheet Statistics
     (period avg.)
    Average Loans                              $  59,916         $  59,250
    Average Earning Assets                     $  67,451         $  64,602
    Average Assets                             $  71,913         $  69,670
    Net Interest Margin                             8.64 %            9.34 %
    Revenue Margin                                 14.85 %           15.70 %
    Risk Adjusted Margin (2)                        9.23 %            9.77 %
    Return on Average Assets (ROA)                  1.60 %            1.77 %
    Net Charge-Off Rate                             6.32 %            6.47 %
    Net Charge-Offs                            $   946.3         $   957.9
    Cost Per Account (in dollars)              $   76.35         $   79.43
    Managed Balance Sheet Statistics
     (period end)
    Loans                                      $  60,736         $  59,214
    Delinquency Rate (30+ days)                     4.95 %            4.97 %
 plus Allowance to Assets Ratio         10.48 %           10.71 %

    (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:  Q2 2003 - $497.3 million, Q1 2003 -
        $519.7 million, Q4 2002 - $675.7 million, Q3 2002 - $489.6 million and
        Q2 2002 - $574.4 million.
    (2) Risk adjusted margin is total revenue less net charge-offs as a
        percentage of average earning assets.
    (3) Includes $110.0 million of one-time charges in Q3 2002.
    (4) The information in this statistical summary reflects the adjustment to
        add back the effect of securitized loans.  See accompanying schedule -
        "Reconciliation to GAAP Financial Measures".



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
               FINANCIAL & STATISTICAL SUMMARY MANAGED BASIS(4)

                                            2002        2002         2002
                                             Q4          Q3           Q2
    (in millions, except per share data
     and as noted)
    Earnings (Managed Basis)
    Net Interest Income                  $ 1,442.2   $ 1,435.3    $ 1,234.3
    Non-Interest Income                    1,086.9     1,189.1      1,145.0
    Total Revenue(1)                       2,529.1     2,624.4      2,379.3
    Provision for Loan Losses              1,021.5     1,055.9        881.9
    Marketing Expenses                       210.8       185.8        320.4
    Operating Expenses                       910.2       965.2(3)     833.2
    Income Before Taxes                      386.6       417.5        343.7
    Tax Rate                                  38.0 %      38.0 %       38.0 %
    Net Income                           $   239.7   $   258.8    $   213.1
    Managed Balance Sheet Statistics
     (period avg.)
    Average Loans                        $  57,669   $  55,350    $  51,343
    Average Earning Assets               $  62,789   $  60,016    $  55,559
    Average Assets                       $  67,037   $  64,193    $  59,989
    Net Interest Margin                       9.19 %      9.57 %       8.89 %
    Revenue Margin                           16.11 %     17.49 %      17.13 %
    Risk Adjusted Margin (2)                 10.41 %     12.92 %      12.53 %
    Return on Average Assets (ROA)            1.43 %      1.61 %       1.42 %
    Net Charge-Off Rate                       6.21 %      4.96 %       4.98 %
    Net Charge-Offs                      $   895.5   $   685.7    $   639.4
    Cost Per Account (in dollars)        $   76.22   $   79.79    $   69.99
    Managed Balance Sheet Statistics
     (period end)
    Loans                                $  59,747   $  56,883    $  53,208
    Delinquency Rate (30+ days)               5.60 %      5.31 %       4.43 %
    Number of Accounts (000's)              47,369      48,163       48,612
    Total Assets                         $  69,205   $  65,614    $  62,022
    Capital to Assets Ratio                   7.86 %      7.85 %       7.78 %
    Capital plus Allowance to Assets
     Ratio                                   10.35 %     10.28 %       9.77 %

    (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:  Q2 2003 - $497.3 million, Q1 2003 -
        $519.7 million, Q4 2002 - $675.7 million, Q3 2002 - $489.6 million and
        Q2 2002 - $574.4 million.
    (2) Risk adjusted margin is total revenue less net charge-offs as a
        percentage of average earning assets.
    (3) Includes $110.0 million of one-time charges in Q3 2002.
    (4) The information in this statistical summary reflects the adjustment to
        add back the effect of securitized loans.  See accompanying schedule -
        "Reconciliation to GAAP Financial Measures".



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
             FINANCIAL & STATISTICAL SUPPLEMENT MANAGED BASIS(1)

                                                  2003              2003
                                                   Q2                Q1
    (in millions, except per share data
     and as noted)
    Revenue & Expense Statistics (Managed)
    Net interest income growth (annualized)          (13)%              18 %
    Non interest income growth (annualized)            7 %             (22)%
    Revenue growth (annualized)                       (5)%               1 %
    Revenue margin (average loans)                 16.71 %           17.12 %
    Risk adjusted margin (average loans)           10.40 %           10.65 %
    Ops cost as a % of revenues                    35.15 %           36.72 %
    Ops cost as a % of average loans
     (annualized)                                   5.87 %            6.29 %
    Per Account Statistics (Managed)
    Net interest income per account
     (annualized)                              $  126.45         $  128.62
    Non interest income per account
     (annualized)                              $   90.75         $   87.68
    Revenue per account (annualized)           $  217.21         $  216.30
    Net income per account (annualized)        $   24.88         $   26.37
    Growth Statistics (Managed)
    Average accounts (000's)                      46,104            46,896
    Net new accounts per quarter (000's)            (638)             (946)
    % account growth Q over Q (annualized)            (5)%              (8)%
    % account growth Y over Y                         (6)%               - %
    Net new loans                              $   1,522         $    (533)
    % loan growth Q over Q (annualized)               10 %              (4)%
    % loan growth Y over Y                            14 %              22 %
    Balance Sheet Measures
    % off-balance sheet securitizations               55 %              53 %
    % at introductory rate                            10 %               9 %
    Segment Statistics
    Consumer Lending:
      Loans receivable                         $  47,182         $  45,963
      Net income (loss)                        $   289.8         $   309.2
      Net charge-off rate                           6.95 %            7.12 %
      Delinquency rate                              4.83 %            4.99 %
    Auto Finance:
      Loans receivable                         $   7,380         $   7,742
      Net income (loss)                        $    44.0         $   (6.5)
      Net charge-off rate                           4.22 %            4.91 %
      Delinquency rate                              6.97 %            5.37 %
    International:
      Loans receivable                         $   6,061         $   5,390
      Net income (loss)                        $    13.6         $    18.1
      Net charge-off rate                           4.48 %            4.28 %
      Delinquency rate                              3.92 %            4.22 %

    (1) The information in this statistical summary supplement reflects the
        adjustment to add back the effect of securitized loans.  See
        accompanying schedule -- "Reconciliation to GAAP Financial Measures".



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
             FINANCIAL & STATISTICAL SUPPLEMENT MANAGED BASIS(1)

                                             2002        2002        2002
                                              Q4          Q3          Q2
    (in millions, except per share data
     and as noted)
    Revenue & Expense Statistics
     (Managed)
    Net interest income growth
     (annualized)                                2 %        65 %        21 %
    Non interest income growth
     (annualized)                              (34)%        15 %        63 %
    Revenue growth (annualized)                (15)%        41 %        40 %
    Revenue margin (average loans)           17.54 %     18.97 %     18.54 %
    Risk adjusted margin (average loans)     11.33 %     14.01 %     13.55 %
    Ops cost as a % of revenues              35.99 %     36.78 %     35.02 %
    Ops cost as a % of average loans
     (annualized)                             6.31 %      6.98 %      6.49 %
    Per Account Statistics (Managed)
    Net interest income per account
     (annualized)                        $  120.77   $  118.65   $  103.69
    Non interest income per account
     (annualized)                        $   91.02   $   98.30   $   96.18
    Revenue per account (annualized)     $  211.79   $  216.95   $  199.87
    Net income per account (annualized)  $   20.07   $   21.39   $   17.90
    Growth Statistics (Managed)
    Average accounts (000's)                47,766      48,388      47,618
    Net new accounts per quarter (000's)      (794)       (449)      1,989
    % account growth Q over Q
     (annualized)                               (7)%        (4)%        17 %
    % account growth Y over Y                    8 %        20 %        27 %
    Net new loans                        $   2,864   $   3,675   $   4,644
    % loan growth Q over Q (annualized)         20 %        28 %        38 %
    % loan growth Y over Y                      32 %        48 %        51 %
    Balance Sheet Measures
    % off-balance sheet securitizations         53 %        51 %        53 %
    % at introductory rate                      10 %        11 %        12 %
    Segment Statistics
    Consumer Lending:
      Loans receivable                   $  47,290   $  45,021   $  42,819
      Net income (loss)                  $   183.1   $   291.3   $   296.6
      Net charge-off rate                     6.45 %      5.16 %      5.46 %
      Delinquency rate                        5.54 %      5.41 %      4.51 %
    Auto Finance:
      Loans receivable                   $   6,992   $   6,496   $   5,354
      Net income (loss)                  $     8.8   $    (3.4)  $    14.9
      Net charge-off rate                     4.83 %      3.97 %      2.84 %
      Delinquency rate                        7.15 %      6.30 %      5.38 %
    International:
      Loans receivable                   $   5,331   $   5,255   $   4,985
      Net income (loss)                  $    (6.2)  $    (1.1)  $   (19.8)
      Net charge-off rate                     3.92 %      3.61 %      3.91 %
      Delinquency rate                        4.18 %      3.78 %      3.78 %

    (1) The information in this statistical summary supplement reflects the
        adjustment to add back the effect of securitized loans.  See
        accompanying schedule -- "Reconciliation to GAAP Financial Measures".



                      CAPITAL ONE FINANCIAL CORPORATION
                  Reconciliation to GAAP Financial Measures
                   For the Three Months Ended June 30, 2003
                      (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, interest income, interchange, fees and recoveries generated from the securitized loan portfolio net of charge-offs in excess of the interest paid to investors of asset-backed securitizations are recognized as non-interest income on the "reported" income statement.

The Company's "managed" consolidated financial statements add back the 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 non-interest income generated from the securitized portfolio and distributes the revenue 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
    Net interest income              $    682,263 $    775,254 $  1,457,517
    Non-interest income              $  1,310,622 $   (264,610)$  1,046,012
    Total revenue                    $  1,992,885 $    510,644 $  2,503,529
    Provision for loan losses        $    387,097 $    510,644     $897,741
    Balance Sheet Measures
    Consumer loans                   $ 26,848,578 $ 33,887,231 $ 60,735,809
    Total assets                     $ 40,366,651 $ 33,269,431 $ 73,636,082
    Average consumer loans           $ 27,101,042 $ 32,814,755 $ 59,915,797
    Average earning assets           $ 36,297,922 $ 31,152,917 $ 67,450,839
    Average total assets             $ 39,678,236 $ 32,235,014 $ 71,913,250
    Delinquencies                    $  1,506,812 $  1,497,314 $  3,004,126

    (1) Includes adjustments made related to the effects of securitization
        transactions qualifying as sales under GAAP and adjustments made to
        reclassify to "managed" loans outstanding the collectible portion of
        billed finance charge and fee income on the investors' interest in
        securitized loans excluded from loans outstanding on the "reported"
        balance sheet in accordance with Financial Accounting Standards Board
        Staff Position, "Accrued Interest Receivable", issued April 2003.

    (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.



                      CAPITAL ONE FINANCIAL CORPORATION
                        Consolidated Balance Sheets(1)
                          (in thousands)(unaudited)

                                           June 30     March 31      June 30
                                            2003         2003         2002

    Assets:
    Cash and due from banks            $    296,551 $    328,791 $    244,857
    Federal funds sold and resale
     agreements                           2,320,658      864,036      432,124
    Interest-bearing deposits at other
     banks                                  578,479      247,560      448,363
      Cash and cash equivalents           3,195,688    1,440,387    1,125,344
    Securities available for sale         5,418,817    4,817,322    4,538,223
    Consumer loans                       26,848,578   27,634,440   24,496,006
      Less:  Allowance for loan losses   (1,590,000)  (1,635,000)  (1,237,000)
    Net loans                            25,258,578   25,999,440   23,259,006
    Accounts receivable from
     securitizations                      4,092,961    3,378,593    2,886,979
    Premises and equipment, net             760,376      769,112      808,972
    Interest receivable                     200,517      208,998      151,828
    Other                                 1,439,714    1,297,115    1,064,127
      Total assets                     $ 40,366,651 $ 37,910,967 $ 33,834,479


    Liabilities:
    Interest-bearing deposits          $ 19,821,881 $ 18,489,388 $ 16,014,392
    Senior notes                          5,987,125    5,116,591    6,069,719
    Other borrowings                      6,237,419    6,576,876    4,590,716
    Interest payable                        230,836      194,629      235,108
    Other                                 2,782,400    2,604,818    2,910,638
      Total liabilities                  35,059,661   32,982,302   29,820,573

    Stockholders' Equity:
    Common stock                              2,284        2,275        2,222
    Paid-in capital, net                  1,762,469    1,730,883    1,600,489
    Retained earnings and cumulative
     other comprehensive income           3,591,403    3,244,673    2,446,147
      Less:  Treasury stock, at cost        (49,166)     (49,166)     (34,952)
      Total stockholders' equity          5,306,990    4,928,665    4,013,906
      Total liabilities and
       stockholders' equity            $ 40,366,651 $ 37,910,967 $ 33,834,479

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accrued Interest Receivable", that was issued
        in April 2003.



                      CAPITAL ONE FINANCIAL CORPORATION
                     Consolidated Statements of Income(1)
               (in thousands, except per share data)(unaudited)

                                                  Three Months Ended
                                            June 30    March 31    June 30
                                             2003        2003       2002


    Interest Income:
    Consumer loans, including past-due
     fees                                 $  960,124  $1,013,282 $  930,751
    Securities available for sale             47,895      42,931     45,815
    Other                                     62,261      50,353     48,095
      Total interest income                1,070,280   1,106,566  1,024,661

    Interest Expense:
    Deposits                                 220,640     209,308    203,112
    Senior notes                             106,151     104,097    109,687
    Other borrowings                          61,226      58,357     57,450
      Total interest expense                 388,017     371,762    370,249
    Net interest income                      682,263     734,804    654,412
    Provision for loan losses                387,097     375,851    541,841
    Net interest income after provision
     for loan losses                         295,166     358,953    112,571

    Non-Interest Income:
    Servicing and securitizations            742,696     729,689    718,347
    Service charges and other customer-
     related fees                            402,970     441,226    460,984
    Interchange                               89,141      85,351    137,353
    Other                                     75,815      48,337     68,128
      Total non-interest income            1,310,622   1,304,603  1,384,812

    Non-Interest Expense:
    Salaries and associate benefits          373,257     397,449    379,363
    Marketing                                270,555     241,696    320,446
    Communications and data processing       112,456     112,052    101,601
    Supplies and equipment                    87,680      83,812     88,844
    Occupancy                                 42,755      43,574     38,275
    Other                                    263,865     294,331    225,117
      Total non-interest expense           1,150,568   1,172,914  1,153,646
    Income before income taxes               455,220     490,642    343,737
    Income taxes                             168,431     181,538    130,620
    Net income                            $  286,789  $  309,104 $  213,117

    Basic earnings per share              $     1.28  $     1.39 $     0.97
    Diluted earnings per share            $     1.23  $     1.35 $     0.92
    Dividends paid per share              $     0.03  $     0.03 $     0.03

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accrued Interest Receivable", that was issued
        in April 2003.



                      CAPITAL ONE FINANCIAL CORPORATION
                     Consolidated Statements of Income(1)
               (in thousands, except per share data)(unaudited)

                                                     Six Months Ended
                                                June 30           June 30
                                                  2003              2002

    Interest Income:
    Consumer loans, including past-due fees     $1,973,406        $1,775,291
    Securities available for sale                   90,826            88,159
    Other                                          112,614            95,572
      Total interest income                      2,176,846         1,959,022

    Interest Expense:
    Deposits                                       429,948           381,275
    Senior notes                                   210,248           203,591
    Other borrowings                               119,583           108,506
      Total interest expense                       759,779           693,372
    Net interest income                          1,417,067         1,265,650
    Provision for loan losses                      762,948           931,458
    Net interest income after provision
     for loan losses                               654,119           334,192

    Non-Interest Income:
    Servicing and securitizations                1,472,385         1,344,494
    Service charges and other customer-
     related fees                                  844,196           926,618
    Interchange                                    174,492           235,449
    Other                                          124,152           119,775
      Total non-interest income                  2,615,225         2,626,336

    Non-Interest Expense:
    Salaries and associate benefits                770,706           760,098
    Marketing                                      512,251           673,982
    Communications and data processing             224,508           193,794
    Supplies and equipment                         171,492           173,351
    Occupancy                                       86,329            71,656
    Other                                          558,196           440,660
      Total non-interest expense                 2,323,482         2,313,541
    Income before income taxes                     945,862           646,987
    Income taxes                                   349,969           245,855
    Net income                                  $  595,893        $  401,132

    Basic earnings per share                    $     2.67        $     1.83
    Diluted earnings per share                  $     2.58        $     1.75
    Dividends paid per share                    $     0.05        $     0.05

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accrued Interest Receivable", that was issued
        in April 2003.



                      CAPITAL ONE FINANCIAL CORPORATION
   Statements of Average Balances, Income and Expense, Yields and Rates(1)
                      (dollars in thousands)(unaudited)

    Reported                                     Quarter Ended 6/30/03
                                            Average      Income/      Yield/
                                            Balance      Expense       Rate
    Earning assets:
     Consumer loans                       $ 27,101,042 $    960,124   14.17%
     Securities available for sale           5,386,070       47,895    3.56%
     Other                                   3,810,810       62,261    6.54%
    Total earning assets                  $ 36,297,922 $  1,070,280   11.79%

    Interest-bearing liabilities:
     Deposits                             $ 19,178,154      220,640    4.60%
     Senior notes                            5,533,693      106,151    7.67%
     Other borrowings                        6,682,797       61,226    3.66%
    Total interest-bearing liabilities    $ 31,394,644 $    388,017    4.94%

    Net interest spread                                                6.85%

    Interest income to average earning
     assets                                                           11.79%
    Interest expense to average earning
     assets                                                            4.27%
    Net interest margin                                                7.52%

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accrued Interest Receivable", that was issued
        in April 2003.



                      CAPITAL ONE FINANCIAL CORPORATION
   Statements of Average Balances, Income and Expense, Yields and Rates(1)
                      (dollars in thousands)(unaudited)

    Reported                                     Quarter Ended 3/31/03
                                            Average      Income/      Yield/
                                            Balance      Expense       Rate
    Earning assets:
     Consumer loans                       $ 27,316,194 $  1,013,282   14.84%
     Securities available for sale           4,417,538       42,931    3.89%
     Other                                   2,410,750       50,353    8.35%
    Total earning assets                  $ 34,144,482 $  1,106,566   12.96%

    Interest-bearing liabilities:
     Deposits                             $ 17,940,058     $209,308    4.67%
     Senior notes                            5,309,690      104,097    7.84%
     Other borrowings                        7,009,915       58,357    3.33%
    Total interest-bearing liabilities    $ 30,259,663 $    371,762    4.91%

    Net interest spread                                                8.05%

    Interest income to average earning
     assets                                                           12.96%
    Interest expense to average earning
     assets                                                            4.35%
    Net interest margin                                                8.61%

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accrued Interest Receivable", that was issued
        in April 2003.



                      CAPITAL ONE FINANCIAL CORPORATION
   Statements of Average Balances, Income and Expense, Yields and Rates(1)
                      (dollars in thousands)(unaudited)

    Reported                                     Quarter Ended 6/30/02
                                            Average      Income/      Yield/
                                            Balance      Expense       Rate
    Earning assets:
     Consumer loans                       $ 24,876,120 $    930,751   14.97%
     Securities available for sale           3,662,832       45,815    5.00%
     Other                                   2,138,553       48,095    9.00%
    Total earning assets                  $ 30,677,505 $  1,024,661   13.36%

    Interest-bearing liabilities:
     Deposits                             $ 15,276,514 $    203,112    5.32%
     Senior notes                            5,959,240      109,687    7.36%
     Other borrowings                        5,946,983       57,450    3.86%
    Total interest-bearing liabilities    $ 27,182,737 $    370,249    5.45%

    Net interest spread                                                7.91%

    Interest income to average earning
     assets                                                           13.36%
    Interest expense to average earning
     assets                                                            4.83%
    Net interest margin                                                8.53%

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accrued Interest Receivable", that was issued
        in April 2003.



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

    Managed (1)                                  Quarter Ended 6/30/03
                                            Average       Income/     Yield/
                                            Balance       Expense      Rate
    Earning assets:
     Consumer loans                       $ 59,915,797 $  2,110,859   14.09%
     Securities available for sale           5,386,070       47,895    3.56%
     Other                                   2,148,972       12,802    2.38%
    Total earning assets                  $ 67,450,839 $  2,171,556   12.88%

    Interest-bearing liabilities:
     Deposits                             $ 19,178,154 $    220,640    4.60%
     Senior notes                            5,533,693      106,151    7.67%
     Other borrowings                        6,682,797       61,226    3.66%
     Securitization liability               32,249,105      326,022    4.04%
    Total interest-bearing liabilities    $ 63,643,749 $    714,039    4.49%

    Net interest spread                                                8.39%

    Interest income to average earning
     assets                                                           12.88%
    Interest expense to average earning
     assets                                                            4.24%
    Net interest margin                                                8.64%

    (1)  The information in this table reflects the adjustment to add back the
         effect of securitized loans.



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

    Managed (1)                                  Quarter Ended 3/31/03
                                            Average      Income/      Yield/
                                            Balance      Expense       Rate
    Earning assets:
     Consumer loans                       $ 59,249,698 $  2,148,419   14.50%
     Securities available for sale           4,417,538       42,931    3.89%
     Other                                     934,382        5,323    2.28%
    Total earning assets                  $ 64,601,618 $  2,196,673   13.60%

    Interest-bearing liabilities:
     Deposits                             $ 17,940,058 $    209,308    4.67%
     Senior notes                            5,309,690      104,097    7.84%
     Other borrowings                        7,009,915       58,357    3.33%
     Securitization liability               31,361,051      316,960    4.04%
    Total interest-bearing liabilities    $ 61,620,714 $    688,722    4.47%

    Net interest spread                                                9.13%

    Interest income to average earning
     assets                                                           13.60%
    Interest expense to average earning
     assets                                                            4.26%
    Net interest margin                                                9.34%

    (1)  The information in this table reflects the adjustment to add back the
         effect of securitized loans.



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

    Managed (1)                                  Quarter Ended 6/30/02
                                            Average      Income/      Yield/
                                            Balance      Expense       Rate
    Earning assets:
     Consumer loans                       $ 51,342,764 $  1,838,672   14.32%
     Securities available for sale           3,662,832       45,815    5.00%
     Other                                     553,595        2,110    1.52%
    Total earning assets                  $ 55,559,191 $  1,886,597   13.58%

    Interest-bearing liabilities:
     Deposits                             $ 15,276,514 $    203,112    5.32%
     Senior notes                            5,959,240      109,687    7.36%
     Other borrowings                        5,946,983       57,450    3.86%
     Securitization liability               25,965,894      282,041    4.34%
    Total interest-bearing liabilities    $ 53,148,631 $    652,290    4.91%

    Net interest spread                                                8.67%

    Interest income to average earning
     assets                                                           13.58%
    Interest expense to average earning
     assets                                                            4.69%
    Net interest margin                                                8.89%

    (1)  The information in this table reflects the adjustment to add back the
         effect of securitized loans.

SOURCE Capital One Financial Corporation

Paul Paquin, V.P., Investor Relations, +1-703-720-2456, or Tatiana Stead, Director, Corporate Media, +1-703-720-2352, both of Capital One Financial Corporation