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Capital One Reports Third Quarter 2003 Earnings per Share Increase Over Third Quarter 2002

October 22, 2003 at 4:11 PM EDT

MCLEAN, Va., Oct 22, 2003 /PRNewswire-FirstCall via COMTEX/ -- Capital One Financial Corporation (NYSE: COF) today announced that its earnings for the third quarter of 2003 were $276.3 million, or $1.17 per share (fully diluted), compared with earnings of $258.8 million, or $1.13 per share, for the comparable period of the prior year and $286.8 million, or $1.23 per share, in the previous quarter. Also, the company maintained its 2003 earnings guidance of at least $4.55 per share and announced that it expects managed loan growth of around 20 percent in 2003. The company expects to release its 2004 earnings guidance on October 29, 2003.

During the third quarter of 2003, Capital One grew its managed loan portfolio by $6.5 billion to $67.3 billion. The managed charge-off rate declined to 5.44 percent in the third quarter of 2003, from 6.32 percent in the previous quarter. The managed delinquency rate (30+ days) declined to 4.65 percent from 4.95 percent at the end of the previous quarter.

"Our loan growth was broadly based across products and geographies, and was largely fueled by growth in superprime assets," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "We are also pleased by our continued strong credit performance."

The company continues to diversify its portfolio and shift its product mix upmarket. As a result, Capital One's managed revenue margin declined to 14.36 percent in the third quarter of 2003 from 14.85 percent in the previous quarter. The managed risk-adjusted margin rose to 9.48 percent from 9.23 percent in the previous quarter due to lower charge-offs in the third quarter. As the company continues its asset diversification and its shift upmarket, management expects revenue margins and charge-offs to continue to trend generally downward, after a slight seasonal increase in charge-offs in the fourth quarter of 2003.

Marketing expenses for the third quarter of 2003 increased $45.4 million to $316.0 million from $270.6 million in the previous quarter. Marketing expenses were $185.8 million in the comparable quarter of the prior year. Other non-interest expenses (excluding marketing) for the third quarter of 2003 were $924.6 million versus $880.0 million for the second quarter and $965.2 million in the comparable period of the prior year. The company's accounts increased by 621 thousand to 46.4 million at the end of the third quarter.

In July 2003, the company adopted the provisions of FASB Interpretation No. 46 ("FIN 46"), Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51. The company has consolidated all Variable Interest Entities (VIEs) for which the company is the primary beneficiary, as defined by FIN 46. The VIEs relate to certain office building operating leases. This consolidation resulted in a $15.0 million ($23.9 million pre- tax) charge for a cumulative effect of a change in accounting principle.

The company generates earnings from its managed loan portfolio, which includes both on-balance sheet loans and securitized 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. Please see the schedule entitled "Reconciliation to GAAP Financial Measures" attached to this release for more information. The company cautioned that its current expectations in this release, in the presentation slides available on the company's website (www.capitalone.com) and on its Form 8-K dated October 22, 2003, for 2003 earnings, charge-off rates, margins, 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 June 30, 2003.

Headquartered in McLean, Virginia, Capital One Financial Corporation (www.capitalone.com) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products and Capital One Auto Finance, Inc., which offers auto loan products. Capital One's subsidiaries collectively had 46.4 million managed accounts and $67.3 billion in managed loans outstanding as of September, 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.

NOTE: Third quarter 2003 financial results, SEC Fillings, and third quarter earnings conference call slides are accessible on Capital One's home page (www.capitalone.com). Choose "About Capital One" to access the Investor Center to view and download the earnings press release, slides, and other financial information (http://www.capitalone.com/about/invest/financials). Additionally, a webcast of today's 5:00pm (EDT) earnings conference call is accessible through the company's home page.



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

                                                 2002              2002
    (in millions, except per share data           Q4                Q3
    and as noted)
    Earnings (Reported Basis)
    Net Interest Income                        $   731.0         $   722.4
    Non-Interest Income                          1,320.3           1,520.2
    Total Revenue(1)                             2,051.4           2,242.6
    Provision for Loan Losses                      543.8             674.1
    Marketing Expenses                             210.8             185.8
    Operating Expenses                             910.2             965.2(2)
    Income Before Taxes and Accounting
     Change                                        386.6             417.5
    Tax Rate                                        38.0 %            38.0 %
    Cumulative Effect of Accounting
     Change, net of tax(3)                             -                 -
    Net Income                                 $   239.7         $   258.8
    Common Share Statistics
    Basic EPS                                  $    1.08         $    1.17
    Diluted EPS                                $    1.05         $    1.13
    Dividends Per Share                        $    0.03         $    0.03
    Book Value Per Share (period end)          $   20.44         $   19.55
    Stock Price Per Share (period end)         $   29.72         $   34.92
    Total Market Capitalization (period
     end)                                      $ 6,722.5         $ 7,744.2
    Shares Outstanding (period end)                226.2             221.8
    Shares Used to Compute Basic EPS               221.8             220.6
    Shares Used to Compute Diluted EPS             228.2             228.4
    Reported Balance Sheet Statistics
     (period avg.)
    Average Loans                              $  27,260         $  26,058
    Average Earning Assets                     $  34,075         $  32,449
    Average Assets                             $  37,208         $  35,470
    Average Equity                             $   4,568         $   4,418
    Net Interest Margin                             8.58 %            8.91 %
    Revenue Margin                                 24.08 %           27.64 %
    Risk Adjusted Margin (4)                       19.18 %           23.90 %
    Return on Average Assets (ROA)                  2.58 %            2.92 %
    Return on Average Equity (ROE)                 20.99 %           23.44 %
    Net Charge-Off Rate                             6.13 %            4.66 %
    Net Charge-Offs                            $   417.7         $   303.9
    Reported Balance Sheet Statistics
     (period end)
    Loans                                      $  27,344         $  27,598
    Delinquency Rate (30+ days)                     6.12 %            5.71 %
    Total Assets                               $  37,382         $  36,910
    Allowance as a % of reported loans              6.29 %            5.78 %
    Capital (5)                                $ 5,440.4         $ 5,149.6
    Capital to Assets Ratio                        14.55 %           13.95 %
    Capital plus Allowance to Assets
     Ratio                                         19.15 %           18.27 %

    (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:  Q3 2003 - $481.0 million, Q2 2003 -
        $497.3 million, Q1 2003 - $519.7 million, Q4 2002 - $675.7 million and
        Q3 2002 - $489.6 million.
    (2) Includes $110.0 million of one-time charges in Q3 2002.
    (3) Net charge from the adoption of FASB Interpretation No. 46,
        Consolidation of Variable Interest Entities.
    (4) Risk adjusted margin is total revenue less net charge-offs as a
        percentage of average earning assets.
    (5) Includes preferred interests and mandatory convertible securities.



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

                                              2003        2003        2003
    (in millions, except per share data        Q3          Q2          Q1
    and as noted)
    Revenue & Expense Statistics
     (Reported)
    Net interest income growth
     (annualized)                               13 %       (29)%         2 %
    Non interest income growth
     (annualized)                               16 %         2 %        (5)%
    Revenue growth (annualized)                 15 %        (9)%        (2)%
    Loan revenue margin(1)                   28.51 %     29.46 %     29.73 %
    Loan risk adjusted margin(2)             23.22 %     23.03 %     22.97 %
    Operating expense as a % of revenues     44.73 %     44.16 %     45.66 %
    Operating expense as a % of average
     loans (annualized)                      12.78 %     12.99 %     13.64 %
    Per Account Statistics (Reported)
    Net interest income per account
     (annualized)                         $  61.08    $  59.19    $  62.68
    Non interest income per account
     (annualized)                         $ 118.29    $ 113.71    $ 111.28
    Revenue per account (annualized)      $ 179.38    $ 172.90    $ 173.95
    Growth Statistics (Reported)
    Consumer loan growth                  $  3,769    $   (785)   $    290
    % loan growth Q over Q (annualized)         56 %       (11)%         4 %
    % loan growth Y over Y                      11 %        10 %        15 %

    (1) Loan revenue margin is total loan revenue, loan interest income less
        interest expense plus non-interest income, as a percent of average
        loans outstanding for the period.  Loan interest expense is calculated
        using the cost of funds rate applied to the average consumer loan
        balance.
    (2) Loan risk adjusted margin is total loan revenue, loan net interest
        income and non-interest income, less net charge-offs as a percentage
        of average loans outstanding for the period.


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

                                                   2002              2002
    (in millions, except per share data             Q4                Q3
    and as noted)
    Revenue & Expense Statistics
     (Reported)
    Net interest income growth
     (annualized)                                      5 %              42 %
    Non interest income growth
     (annualized)                                    (53)%              39 %
    Revenue growth (annualized)                      (34)%              40 %
    Loan revenue margin(1)                         29.95 %           34.18 %
    Loan risk adjusted margin(2)                   23.82 %           29.52 %
    Operating expense as a % of revenues           44.37 %           43.04 %
    Operating expense as a % of average
     loans (annualized)                            13.36 %           14.82 %
    Per Account Statistics (Reported)
    Net interest income per account
     (annualized)                               $  61.22          $  59.72
    Non interest income per account
     (annualized)                               $ 110.57          $ 125.67
    Revenue per account (annualized)            $ 171.78          $ 185.39
    Growth Statistics (Reported)
    Consumer loan growth                        $   (254)         $  3,102
    % loan growth Q over Q (annualized)               (4)%              51 %
    % loan growth Y over Y                            31 %              58 %

    (1) Loan revenue margin is total loan revenue, loan interest income less
        interest expense plus non-interest income, as a percent of average
        loans outstanding for the period.  Loan interest expense is calculated
        using the cost of funds rate applied to the average consumer loan
        balance.
    (2) Loan risk adjusted margin is total loan revenue, loan net interest
        income and non-interest income, less net charge-offs as a percentage
        of average loans outstanding for the period.



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

                                             2003        2003        2003
    (in millions, except per share data       Q3          Q2          Q1
    and as noted)
    Earnings (Managed Basis)
    Net Interest Income                   $ 1,500.8   $ 1,457.5   $ 1,508.0
    Non-Interest Income                     1,049.2     1,046.0     1,027.9
    Total Revenue(2)                        2,550.0     2,503.5     2,535.9
    Provision for Loan Losses                 847.0       897.7       872.3
    Marketing Expenses                        316.0       270.6       241.7
    Operating Expenses                        924.6       880.0       931.2
    Income Before Taxes and Accounting
     Change                                   462.4       455.2       490.6
    Tax Rate                                   37.0 %      37.0 %      37.0 %
    Cumulative Effect of Accounting
     Change, net of tax(4)                     15.0           -           -
    Net Income                            $   276.3   $   286.8   $   309.1
    Managed Balance Sheet Statistics
     (period avg.)
    Average Loans                         $  63,691   $  59,916   $  59,250
    Average Earning Assets                $  71,022   $  67,451   $  64,602
    Average Assets                        $  75,831   $  71,913   $  69,670
    Net Interest Margin                        8.45 %      8.64 %      9.34 %
    Revenue Margin                            14.36 %     14.85 %     15.70 %
    Risk Adjusted Margin (5)                   9.48 %      9.23 %      9.77 %
    Return on Average Assets (ROA)             1.46 %      1.60 %      1.77 %
    Net Charge-Off Rate                        5.44 %      6.32 %      6.47 %
    Net Charge-Offs                       $   866.1   $   946.3   $   957.9
    Cost Per Account (in dollars)         $   80.23   $   76.35   $   79.43
    Managed Balance Sheet Statistics
     (period end)
    Loans                                 $  67,260   $  60,736   $  59,214
    Delinquency Rate (30+ days)                4.65 %      4.95 %      4.97 %
    Number of Accounts (000's)               46,406      45,785      46,423
    Total Assets                          $  79,465   $  73,636   $  68,927
    Capital to Assets Ratio                    8.12 %      8.33 %      8.34 %
    Capital plus Allowance to Assets Ratio    10.09 %     10.48 %     10.71 %

    (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".
    (2) 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:  Q3 2003 - $481.0 million, Q2 2003 -
        $497.3 million, Q1 2003 - $519.7 million, Q4 2002 - $675.7 million and
        Q3 2002 - $489.6 million.
    (3) Includes $110.0 million of one-time charges in Q3 2002.
    (4) Net charge from the adoption of FASB Interpretation No. 46,
        Consolidation of Variable Interest Entities.
    (5) Risk adjusted margin is total revenue less net charge-offs as a
        percentage of average earning assets.


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

                                                 2002              2002
    (in millions, except per share data           Q4                Q3
    and as noted)
    Earnings (Managed Basis)
    Net Interest Income                        $ 1,442.2         $ 1,435.3
    Non-Interest Income                          1,086.9           1,189.1
    Total Revenue(2)                             2,529.1           2,624.4
    Provision for Loan Losses                    1,021.5           1,055.9
    Marketing Expenses                             210.8             185.8
    Operating Expenses                             910.2             965.2 (3)
    Income Before Taxes and Accounting
     Change                                        386.6             417.5
    Tax Rate                                        38.0 %            38.0 %
    Cumulative Effect of Accounting
     Change, net of tax(4)                             -                 -
    Net Income                                 $   239.7         $   258.8
    Managed Balance Sheet Statistics
     (period avg.)
    Average Loans                              $  57,669         $  55,350
    Average Earning Assets                     $  62,789         $  60,016
    Average Assets                             $  67,037         $  64,193
    Net Interest Margin                             9.19 %            9.57 %
    Revenue Margin                                 16.11 %           17.49 %
    Risk Adjusted Margin (5)                       10.41 %           12.92 %
    Return on Average Assets (ROA)                  1.43 %            1.61 %
    Net Charge-Off Rate                             6.21 %            4.96 %
    Net Charge-Offs                            $   895.5         $   685.7
    Cost Per Account (in dollars)              $   76.22         $   79.79
    Managed Balance Sheet Statistics
     (period end)
    Loans                                      $  59,747         $  56,883
    Delinquency Rate (30+ days)                     5.60 %            5.31 %
    Number of Accounts (000's)                    47,369            48,163
    Total Assets                               $  69,205         $  65,614
    Capital to Assets Ratio                         7.86 %            7.85 %
    Capital plus Allowance to Assets
     Ratio                                         10.35 %           10.28 %

    (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".
    (2) 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:  Q3 2003 - $481.0 million, Q2 2003 -
        $497.3 million, Q1 2003 - $519.7 million, Q4 2002 - $675.7 million and
        Q3 2002 - $489.6 million.
    (3) Includes $110.0 million of one-time charges in Q3 2002.
    (4) Net charge from the adoption of FASB Interpretation No. 46,
        Consolidation of Variable Interest Entities.
    (5) Risk adjusted margin is total revenue less net charge-offs as a
        percentage of average earning assets.



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

                                             2003        2003        2003
    (in millions, except per share data       Q3          Q2          Q1
    and as noted)
    Revenue & Expense Statistics
     (Managed)
    Net interest income growth
     (annualized)                               12 %       (13)%        18 %
    Non interest income growth
     (annualized)                                1 %         7 %       (22)%
    Revenue growth (annualized)                  7 %        (5)%         1 %
    Loan revenue margin(2)                   16.15 %     16.87 %     17.20 %
    Loan risk adjusted margin(3)             10.71 %     10.56 %     10.73 %
    Operating expense as a % of revenues     36.26 %     35.15 %     36.72 %
    Operating expense as a % of average
     loans (annualized)                       5.81 %      5.87 %      6.29 %
    Per Account Statistics (Managed)
    Net interest income per account
     (annualized)                         $ 130.23    $ 126.45    $ 128.62
    Non interest income per account
     (annualized)                         $  91.05      $90.75    $  87.68
    Revenue per account (annualized)      $ 221.28    $ 217.21    $ 216.30
    Net income per account (annualized)   $  23.98    $  24.88    $  26.37
    Growth Statistics (Managed)
    Average accounts (000's)                46,096      46,104      46,896
    Net new accounts per quarter (000's)       621        (638)       (946)
    % account growth Q over Q
     (annualized)                                5 %        (5)%        (8)%
    % account growth Y over Y                   (4)%        (6)%       -   %
    Consumer loan growth                  $  6,524    $  1,522    $   (533)
    % loan growth Q over Q (annualized)         43 %        10 %        (4)%
    % loan growth Y over Y                      18 %        14 %        22 %
    Balance Sheet Measures
    % off-balance sheet securitizations         54 %        55 %        53 %
    % at introductory rate                      11 %        10 %         9 %
    Segment Statistics
    Consumer Lending:
      Loans receivable                    $ 52,545    $ 47,182    $ 45,963
      Net income (loss)                   $  290.7    $  289.8    $  309.2
      Net charge-off rate                     5.74 %      6.95 %      7.12 %
      Delinquency rate                        4.41 %      4.83 %      4.99 %
    Auto Finance:
      Loans receivable                    $  8,008    $  7,380    $  7,742
      Net income (loss)                   $   27.3    $   44.0    $   (6.5)
      Net charge-off rate                     5.10 %      4.22 %      4.91 %
      Delinquency rate                        7.07 %      6.97 %      5.37 %
    International:
      Loans receivable                    $  6,562    $  6,061    $  5,390
      Net income (loss)                   $   21.5    $   13.6    $   18.1
      Net charge-off rate                     4.01 %      4.48 %      4.28 %
      Delinquency rate                        4.08 %      3.92 %      4.22 %

    (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".
    (2) Loan revenue margin is total loan revenue, loan interest income less
        interest expense plus non-interest income, as a percent of average
        loans outstanding for the period.  Loan interest expense is calculated
        using the cost of funds rate applied to the average consumer loan
        balance.
    (3) Loan risk adjusted margin is total loan revenue, loan net interest
        income and non-interest income, less net charge-offs as a percentage
        of average loans outstanding for the period.



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

                                                  2002              2002
    (in millions, except per share data            Q4                Q3
    and as noted)
    Revenue & Expense Statistics
     (Managed)
    Net interest income growth
     (annualized)                                      2 %              65 %
    Non interest income growth
     (annualized)                                    (34)%              15 %
    Revenue growth (annualized)                      (15)%              41 %
    Loan revenue margin(2)                         17.58 %           19.01 %
    Loan risk adjusted margin(3)                   11.37 %           14.06 %
    Operating expense as a % of revenues           35.99 %           36.78 %
    Operating expense as a % of average
     loans (annualized)                             6.31 %            6.98 %
    Per Account Statistics (Managed)
    Net interest income per account
     (annualized)                               $ 120.77          $ 118.65
    Non interest income per account
     (annualized)                               $  91.02          $  98.30
    Revenue per account (annualized)            $ 211.79          $ 216.95
    Net income per account (annualized)         $  20.07          $  21.39
    Growth Statistics (Managed)
    Average accounts (000's)                      47,766            48,388
    Net new accounts per quarter (000's)            (794)             (449)
    % account growth Q over Q
     (annualized)                                     (7)%              (4)%
    % account growth Y over Y                          8 %              20 %
    Consumer loan growth                        $  2,864          $  3,675
    % loan growth Q over Q (annualized)               20 %              28 %
    % loan growth Y over Y                            32 %              48 %
    Balance Sheet Measures
    % off-balance sheet securitizations               53 %              51 %
    % at introductory rate                            10 %              11 %
    Segment Statistics
    Consumer Lending:
      Loans receivable                          $ 47,290          $ 45,021
      Net income (loss)                         $  183.1          $  291.3
      Net charge-off rate                           6.45 %            5.16 %
      Delinquency rate                              5.54 %            5.41 %
    Auto Finance:
      Loans receivable                          $  6,992          $  6,496
      Net income (loss)                         $    8.8          $   (3.4)
      Net charge-off rate                           4.83 %            3.97 %
      Delinquency rate                              7.15 %            6.30 %
    International:
      Loans receivable                          $  5,331          $  5,255
      Net income (loss)                         $   (6.2)         $   (1.1)
      Net charge-off rate                           3.92 %            3.61 %
      Delinquency rate                              4.18 %            3.78 %

    (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".
    (2) Loan revenue margin is total loan revenue, loan interest income less
        interest expense plus non-interest income, as a percent of average
        loans outstanding for the period.  Loan interest expense is calculated
        using the cost of funds rate applied to the average consumer loan
        balance.
    (3) Loan risk adjusted margin is total loan revenue, loan net interest
        income and non-interest income, less net charge-offs as a percentage
        of average loans outstanding for the period.



                      CAPITAL ONE FINANCIAL CORPORATION
                  Reconciliation to GAAP Financial Measures
                For the Three Months Ended September 30, 2003
                      (dollars in thousands)(unaudited)


                                          Total     Adjustments(1)   Total
                                        Reported                   Managed(2)
    Income Statement Measures
    Net interest income                $   703,921  $   796,843  $ 1,500,764
    Non-interest income                $ 1,363,208  $  (313,997) $ 1,049,211
    Total revenue                      $ 2,067,129  $   482,846  $ 2,549,975
    Provision for loan losses          $   364,144  $   482,846  $   846,990
    Balance Sheet Measures
    Consumer loans                     $30,617,843  $36,642,030  $67,259,873
    Total assets                       $43,446,337  $36,018,801  $79,465,138
    Average consumer loans             $28,949,372  $34,741,889  $63,691,261
    Average earning assets             $38,133,054  $32,889,060  $71,022,114
    Average total assets               $41,704,153  $34,126,592  $75,830,745
    Delinquencies                      $ 1,539,761  $ 1,586,061  $ 3,125,822

    (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, "Accounting for Accrued Interest Receivable Related to
        Securitized and Sold Receivables under FASB Statement 140, Accounting
        for Transfers and Servicing of Financial Assets and Extinguishments of
        Liabilities", 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.

    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.



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


                                       September 30    June 30   September 30
                                           2003         2003         2002

    Assets:
    Cash and due from banks             $   250,514  $   296,551  $   316,010
    Federal funds sold and resale
     agreements                             889,106    2,320,658      304,782
    Interest-bearing deposits at other
     banks                                  163,025      578,479      112,248
      Cash and cash equivalents           1,302,645    3,195,688      733,040
    Securities available for sale         5,408,671    5,418,817    4,290,441
    Consumer loans                       30,617,843   26,848,578   27,597,872
      Less:  Allowance for loan losses   (1,570,000)  (1,590,000)  (1,595,000)
    Net loans                            29,047,843   25,258,578   26,002,872
    Accounts receivable from
     securitizations                      5,204,170    4,092,961    3,090,842
    Premises and equipment, net             898,997      760,376      789,726
    Interest receivable                     201,783      200,517      182,300
    Other                                 1,382,228    1,439,714    1,820,749
      Total assets                      $43,446,337  $40,366,651  $36,909,970


    Liabilities:
    Interest-bearing deposits           $20,936,517  $19,821,881  $16,885,553
    Senior notes                          6,338,772    5,987,125    5,561,489
    Other borrowings                      7,519,770    6,237,419    6,638,560
    Interest payable                        231,365      230,836      214,220
    Other                                 2,796,719    2,782,400    3,274,637
      Total liabilities                  37,823,143   35,059,661   32,574,459

    Stockholders' Equity:
    Common stock                              2,305        2,284        2,227
    Paid-in capital, net                  1,833,520    1,762,469    1,636,738
    Retained earnings and cumulative
     other comprehensive income           3,836,535    3,591,403    2,731,498
      Less:  Treasury stock, at cost        (49,166)     (49,166)     (34,952)
      Total stockholders' equity          5,623,194    5,306,990    4,335,511
      Total liabilities and
       stockholders' equity             $43,446,337  $40,366,651  $36,909,970

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accounting for Accrued Interest Receivable
        Related to Securitized and Sold Receivables under FASB Statement No.
        140, Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities", 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
                                         September 30  June 30  September 30
                                             2003       2003        2002


    Interest Income:
    Consumer loans, including past-due
     fees                                 $  989,318 $  960,124  $1,003,988
    Securities available for sale             49,440     47,895      45,965
    Other                                     64,267     62,261      58,126
      Total interest income                1,103,025  1,070,280   1,108,079

    Interest Expense:
    Deposits                                 224,078    220,640     215,470
    Senior notes                             114,989    106,151     110,464
    Other borrowings                          60,037     61,226      59,716
      Total interest expense                 399,104    388,017     385,650
    Net interest income                      703,921    682,263     722,429
    Provision for loan losses                364,144    387,097     674,111
    Net interest income after provision
     for loan losses                         339,777    295,166      48,318

    Non-Interest Income:
    Servicing and securitizations            820,515    742,696     815,267
    Service charges and other customer-
     related fees                            405,063    402,970     535,732
    Interchange                               95,879     89,141     118,203
    Other                                     41,751     75,815      50,976
      Total non-interest income            1,363,208  1,310,622   1,520,178

    Non-Interest Expense:
    Salaries and associate benefits          387,653    373,257     417,189
    Marketing                                316,026    270,555     185,795
    Communications and data processing       107,385    112,456     106,128
    Supplies and equipment                    88,753     87,680      88,639
    Occupancy                                 47,205     42,755      86,942
    Other                                    293,575    263,865     266,327
      Total non-interest expense           1,240,597  1,150,568   1,151,020
    Income before income taxes and
     cumulative
      effect of accounting change            462,388    455,220     417,476
    Income taxes                             171,084    168,431     158,641
    Income before cumulative effect of
     accounting
      change                                 291,304    286,789     258,835
    Cumulative effect of accounting
     change, net of
      taxes of $8,832                         15,037          -           -
    Net income                            $  276,267 $  286,789  $  258,835


    Basic earnings per share before
     cumulative effect
      of accounting change                $     1.30 $     1.28  $     1.17
    Basic earnings per share after
     cumulative effect
      of accounting change                $     1.23 $     1.28  $     1.17

    Diluted earnings per share before
     cumulative effect
      of accounting change                $     1.23 $     1.23  $     1.13
    Diluted earnings per share after
     cumulative effect
      of accounting change                $     1.17 $     1.23  $     1.13

    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, "Accounting for Accrued Interest Receivable
        Related to Securitized and Sold Receivables under FASB Statement No.
        140, Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities", that was issued April 2003.


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

                                                   Nine Months Ended
                                             September 30        September 30
                                                 2003                2002

    Interest Income:
    Consumer loans, including past-due
     fees                                     $ 2,962,724         $ 2,779,280
    Securities available for sale                 140,266             134,124
    Other                                         176,881             153,698
      Total interest income                     3,279,871           3,067,102

    Interest Expense:
    Deposits                                      654,026             596,745
    Senior notes                                  325,237             314,055
    Other borrowings                              179,620             168,222
      Total interest expense                    1,158,883           1,079,022
    Net interest income                         2,120,988           1,988,080
    Provision for loan losses                   1,127,092           1,605,570
    Net interest income after provision
     for loan losses                              993,896             382,510

    Non-Interest Income:
    Servicing and securitizations               2,292,900           2,159,761
    Service charges and other customer-
     related fees                               1,249,259           1,462,350
    Interchange                                   270,371             353,652
    Other                                         165,903             170,751
      Total non-interest income                 3,978,433           4,146,514

    Non-Interest Expense:
    Salaries and associate benefits             1,158,359           1,177,287
    Marketing                                     828,277             859,777
    Communications and data processing            331,893             299,922
    Supplies and equipment                        260,245             261,990
    Occupancy                                     133,534             158,598
    Other                                         851,771             706,987
      Total non-interest expense                3,564,079           3,464,561
    Income before income taxes and
     cumulative
      effect of accounting change               1,408,250           1,064,463
    Income taxes                                  521,053             404,496
    Income before cumulative effect of
     accounting
      change                                      887,197             659,967
    Cumulative effect of accounting
     change, net of
      taxes of $8,832                              15,037                   -
    Net income                                $   872,160         $   659,967


    Basic earnings per share before
     cumulative effect
      of accounting change                    $      3.97         $      3.00
    Basic earnings per share after
     cumulative effect
      of accounting change                    $      3.90         $      3.00

    Diluted earnings per share before
     cumulative effect
      of accounting change                    $      3.82         $      2.88
    Diluted earnings per share after
     cumulative effect
      of accounting change                    $      3.75         $      2.88

    Dividends paid per share                  $      0.08         $      0.08

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accounting for Accrued Interest Receivable
        Related to Securitized and Sold Receivables under FASB Statement No.
        140, Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities", that was issued April 2003.



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

    Reported                                     Quarter Ended 9/30/03
                                            Average       Income/    Yield/
                                            Balance       Expense     Rate
    Earning assets:
     Consumer loans                        $28,949,372  $   989,318   13.67 %
     Securities available for sale           5,702,955       49,440    3.47
     Other                                   3,480,727       64,267    7.39
    Total earning assets                   $38,133,054  $ 1,103,025   11.57 %

    Interest-bearing liabilities:
     Deposits                              $20,302,524  $   224,078    4.41 %
     Senior notes                            6,065,935      114,989    7.58
     Other borrowings                        6,891,889       60,037    3.48
    Total interest-bearing liabilities     $33,260,348  $   399,104    4.80 %

    Net interest spread                                                6.77 %

    Interest income to average earning
     assets                                                           11.57 %
    Interest expense to average earning
     assets                                                            4.19
    Net interest margin                                                7.38 %

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accounting for Accrued Interest Receivable
        Related to Securitized and Sold Receivables under FASB Statement No.
        140, Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities", that was issued 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, "Accounting for Accrued Interest Receivable
        Related to Securitized and Sold Receivables under FASB Statement No.
        140, Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities", that was issued April 2003.


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

    Reported                                    Quarter Ended 9/30/02
                                            Average       Income/    Yield/
                                            Balance       Expense     Rate
    Earning assets:
     Consumer loans                        $26,057,884  $ 1,003,988   15.41 %
     Securities available for sale           3,877,119       45,965    4.74
     Other                                   2,514,445       58,126    9.25
    Total earning assets                   $32,449,448  $ 1,108,079   13.66 %

    Interest-bearing liabilities:
     Deposits                               16,519,572      215,470    5.22 %
     Senior notes                            5,718,548      110,464    7.73
     Other borrowings                        5,631,470       59,716    4.24
    Total interest-bearing liabilities     $27,869,590  $   385,650    5.54 %

    Net interest spread                                                8.12 %

    Interest income to average earning
     assets                                                           13.66 %
    Interest expense to average earning
     assets                                                            4.75
    Net interest margin                                                8.91 %

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accounting for Accrued Interest Receivable
        Related to Securitized and Sold Receivables under FASB Statement No.
        140, Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities", that was issued April 2003.



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

    Managed (1)                                 Quarter Ended 9/30/03
                                            Average       Income/    Yield/
                                            Balance       Expense     Rate
    Earning assets:
     Consumer loans                        $63,691,261  $ 2,180,109   13.69 %
     Securities available for sale           5,702,955       49,440    3.47
     Other                                   1,627,898        9,501    2.33
    Total earning assets                   $71,022,114  $ 2,239,050   12.61 %

    Interest-bearing liabilities:
     Deposits                              $20,302,524  $   224,078    4.41 %
     Senior notes                            6,065,935      114,989    7.58
     Other borrowings                        6,891,889       60,037    3.48
     Securitization liability               34,156,144      339,182    3.97
    Total interest-bearing liabilities     $67,416,492  $   738,286    4.38 %

    Net interest spread                                                8.23 %

    Interest income to average earning
     assets                                                           12.61 %
    Interest expense to average earning
     assets                                                            4.16
    Net interest margin                                                8.45 %

    (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 6/30/03
                                            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 9/30/02
                                            Average       Income/    Yield/
                                            Balance       Expense     Rate
    Earning assets:
     Consumer loans                        $55,350,137  $ 2,081,399   15.04 %
     Securities available for sale           3,877,119       45,965    4.74
     Other                                     788,347        5,122    2.60
    Total earning assets                   $60,015,603  $ 2,132,486   14.21 %

    Interest-bearing liabilities:
     Deposits                              $16,519,572  $   215,470    5.22 %
     Senior notes                            5,718,548      110,464    7.73
     Other borrowings                        5,631,470       59,716    4.24
     Securitization liability               28,740,188      311,562    4.34
    Total interest-bearing liabilities     $56,609,778  $   697,212    4.93 %

    Net interest spread                                                9.28 %

    Interest income to average earning
     assets                                                           14.21 %
    Interest expense to average earning
     assets                                                            4.64
    Net interest margin                                                9.57 %

    (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, Corporate Media, +1-703-720-2352, both of Capital One Financial Corporation