Capital One Reports Third Quarter 2020 Net Income of $2.4 billion, or $5.06 per share

Excluding adjusting items, Third Quarter 2020 Net Income of $5.05 per share(1)

MCLEAN, Va., Oct. 22, 2020 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2020 of $2.4 billion, or $5.06 per diluted common share, compared with a net loss of $918 million, or $2.21 per diluted common share in the second quarter of 2020, and with net income of $1.3 billion, or $2.69 per diluted common share in the third quarter of 2019. Excluding adjusting items, net income for the third quarter of 2020 was $5.05 per diluted common share(1).

"Capital One posted strong third quarter results. We are leaning in to resilience and we continue to be well served by the choices we made before the pandemic," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "Our investments to transform our technology are powering our response to the downturn, and positioning us for the acceleration of digital change driven by the pandemic."

Adjusting items in the third quarter of 2020, which are excluded from diluted earnings per share (EPS), efficiency ratio and operating efficiency ratio metrics (see Table 15 in our Financial Supplement for additional information):

(Dollars in millions, except per share data)

Pre-Tax
Impact

Diluted EPS
Impact

U.K. Payment Protection Insurance customer refund reserve release ("U.K. PPI Reserve")

$

36

$

0.08

Legal reserve builds

(40)

(0.06)

Cybersecurity Incident expenses, net of insurance

(6)

(0.01)



The quarter included the following notable items:


(Dollars in millions, except per share data)

Pre-Tax
Impact

Diluted EPS
Impact

Equity investment gain

$

470

$

0.79

Allowance release associated with partnership loans moving to held-for-sale

327

0.54

All comparisons below are for the third quarter of 2020 compared with the second quarter of 2020 unless otherwise noted.

Third Quarter 2020 Income Statement Summary:

  • Total net revenue increased 13 percent to $7.4 billion.
  • Total non-interest expense decreased 6 percent to $3.5 billion:
    • 4 percent increase in marketing.
    • 7 percent decrease in operating expenses.
  • Pre-provision earnings increased 38 percent to $3.8 billion(2).
  • Provision for credit losses decreased 92 percent to $331 million:
    • Net charge-offs of $1.1 billion.
    • $742 million reserve release.
  • Net interest margin of 5.68 percent, decreased 10 basis points.
  • Efficiency ratio of 48.07 percent.
    • Efficiency ratio excluding adjusting items of 47.68 percent(1).
  • Operating efficiency ratio of 44.24 percent.
    • Operating efficiency ratio excluding adjusting items of 43.83 percent(1).

Third Quarter 2020 Balance Sheet Summary:

  • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 13.0 percent at September 30, 2020.
  • Period-end loans held for investment in the quarter decreased $3.3 billion, or 1 percent, to $248.2 billion.
    • Credit Card period-end loans decreased $3.7 billion, or 3 percent, to $103.6 billion.
      • Domestic Card period-end loans decreased $3.8 billion, or 4 percent, to $95.5 billion.
    • Consumer Banking period-end loans increased $2.0 billion, or 3 percent, to $68.7 billion.
      • Auto period-end loans increased $2.1 billion, or 3 percent, to $65.4 billion.
    • Commercial Banking period-end loans decreased $1.6 billion, or 2 percent, to $75.9 billion.
  • Average loans held for investment in the quarter decreased $3.8 billion, or 2 percent, to $249.5 billion.
    • Credit Card average loans decreased $3.4 billion, or 3 percent, to $105.4 billion.
      • Domestic Card average loans decreased $3.7 billion, or 4 percent, to $97.3 billion.
    • Consumer Banking average loans increased $3.0 billion, or 5 percent, to $67.8 billion.
      • Auto average loans increased $2.7 billion, or 4 percent, to $64.5 billion.
    • Commercial Banking average loans decreased $3.4 billion, or 4 percent, to $76.3 billion.
  • Period-end total deposits increased $1.5 billion, or less than 1 percent, to $305.7 billion, while average deposits increased $17.2 billion, or 6 percent, to $305.5 billion.
  • Interest-bearing deposits rate paid decreased 25 basis points to 0.69 percent.

(1)

Amounts excluding adjusting items are non-GAAP measures that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to these non-GAAP measures.

(2)

Pre-provision earnings is calculated based on the sum of net interest income and non-interest income, less non-interest expense for the period.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on October 22, 2020 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page (www.capitalone.com). Under "About," choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through November 5, 2020 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2019.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $305.7 billion in deposits and $421.9 billion in total assets as of  September 30, 2020. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

 

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement(1)(2)

Third Quarter 2020

Table of Contents


Capital One Financial Corporation Consolidated Results

Page

Table 1:

Financial Summary—Consolidated

1

Table 2:

Selected Metrics—Consolidated

3

Table 3:

Consolidated Statements of Income

4

Table 4:

Consolidated Balance Sheets

7

Table 5:

Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

10

Table 6:

Average Balances, Net Interest Income and Net Interest Margin

11

Table 7:

Loan Information and Performance Statistics

12

Table 8:

Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

15

Business Segment Results

Table 9:

Financial Summary—Business Segment Results

17

Table 10:

Financial & Statistical Summary—Credit Card Business

18

Table 11:

Financial & Statistical Summary—Consumer Banking Business

20

Table 12:

Financial & Statistical Summary—Commercial Banking Business

21

Table 13:

Financial & Statistical Summary—Other and Total

22

Other

Table 14:

Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)

23

Table 15:

Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures

24

__________

(1)

The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended September 30, 2020 once it is filed with the Securities and Exchange Commission.

(2)

This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. ("GAAP"), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies.

 

               

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 1: Financial Summary—Consolidated












2020 Q3 vs.

Nine Months Ended September 30,

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

2020

2020

2020

2019

2019

2020

2019




2020 vs.

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2020

2019

2019

Income Statement




















Net interest income

$

5,555

$

5,460

$

6,025

$

6,066

$

5,737

2

%

(3)

%

$

17,040

$

17,274

(1)

%

Non-interest income

1,826

1,096

1,224

1,361

1,222

67

49

4,146

3,892

7

Total net revenue(1)

7,381

6,556

7,249

7,427

6,959

13

6

21,186

21,166

—

Provision for credit losses

331

4,246

5,423

1,818

1,383

(92)

(76)

10,000

4,418

126

Non-interest expense:




















Marketing

283

273

491

710

501

4

(44)

1,047

1,564

(33)

Operating expense

3,265

3,497

3,238

3,451

3,371

(7)

(3)

10,000

9,758

2

Total non-interest expense

3,548

3,770

3,729

4,161

3,872

(6)

(8)

11,047

11,322

(2)

Income (loss) from continuing operations before income taxes

3,502

(1,460)

(1,903)

1,448

1,704

**

106

139

5,426

(97)

Income tax provision (benefit)

1,096

(543)

(563)

270

375

**

192

(10)

1,071

**

Income (loss) from continuing operations, net of tax

2,406

(917)

(1,340)

1,178

1,329

**

81

149

4,355

(97)

Income (loss) from discontinued operations, net of tax

—

(1)

—

(2)

4

**

**

(1)

15

**

Net income (loss)

2,406

(918)

(1,340)

1,176

1,333

**

80

148

4,370

(97)

Dividends and undistributed earnings allocated to participating securities(2)

(20)

(1)

(3)

(7)

(10)

**

100

(5)

(34)

(85)

Preferred stock dividends

(67)

(90)

(55)

(97)

(53)

(26)

26

(212)

(185)

15

Issuance cost for redeemed preferred stock(3)

—

—

(22)

(31)

—

—

—

(22)

—

**

Net income (loss) available to common stockholders

$

2,319

$

(1,009)

$

(1,420)

$

1,041

$

1,270

**

83

$

(91)

$

4,151

**

Common Share Statistics




















Basic earnings per common share:(2)




















Net income (loss) from continuing operations

$

5.07

$

(2.21)

$

(3.10)

$

2.26

$

2.70

**

88

%

$

(0.20)

$

8.80

**

Income from discontinued operations

—

—

—

—

0.01

—

**

—

0.03

**

Net income (loss) per basic common share

$

5.07

$

(2.21)

$

(3.10)

$

2.26

$

2.71

**

87

$

(0.20)

$

8.83

**

Diluted earnings per common share:(2)




















Net income (loss) from continuing operations

$

5.06

$

(2.21)

$

(3.10)

$

2.25

$

2.68

**

89

$

(0.20)

$

8.76

**

Income from discontinued operations

—

—

—

—

0.01

—

**

—

0.03

**

Net income (loss) per diluted common share

$

5.06

$

(2.21)

$

(3.10)

$

2.25

$

2.69

**

88

$

(0.20)

$

8.79

**

Weighted-average common shares outstanding (in millions):




















Basic

457.8

456.7

457.6

460.9

469.5

—

(2)

457.4

469.9

(3)

%

Diluted

458.5

456.7

457.6

463.4

471.8

—

(3)

457.4

472.1

(3)

Common shares outstanding (period-end, in millions)

457.4

456.3

455.3

456.6

465.7

—

(2)

457.4

465.7

(2)

Dividends declared and paid per common share

$

0.10

$

0.40

$

0.40

$

0.40

$

0.40

(75)

%

(75)

$

0.90

$

1.20

(25)

Tangible book value per common share (period-end)(4)

83.67

78.82

80.68

83.72

80.46

6

4

83.67

80.46

4





























2020 Q3 vs.

Nine Months Ended September 30,

(Dollars in millions)

2020

2020

2020

2019

2019

2020

2019




2020 vs.

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2020

2019

2019

Balance Sheet (Period-End)




















Loans held for investment

$

248,223

$

251,512

$

262,990

$

265,809

$

249,355

(1)

%

—

$

248,223

$

249,355

—

Interest-earning assets

390,040

389,829

364,472

355,202

344,643

—

13

%

390,040

344,643

13

%

Total assets

421,883

421,296

396,878

390,365

378,810

—

11

421,883

378,810

11

Interest-bearing deposits

276,092

275,183

245,142

239,209

234,084

—

18

276,092

234,084

18

Total deposits

305,725

304,238

269,689

262,697

257,148

—

19

305,725

257,148

19

Borrowings

42,795

44,900

55,681

55,697

50,149

(5)

(15)

42,795

50,149

(15)

Common equity

53,093

50,835

51,620

53,157

52,412

4

1

53,093

52,412

1

Total stockholders' equity

58,424

56,045

56,830

58,011

58,235

4

—

58,424

58,235

—

Balance Sheet (Average Balances)




















Loans held for investment

$

249,511

$

253,358

$

262,889

$

258,870

$

246,147

(2)

%

1

%

$

255,232

$

243,602

5

%

Interest-earning assets

391,451

378,145

355,347

349,150

340,949

4

15

375,041

338,936

11

Total assets

422,854

411,075

390,380

383,162

374,905

3

13

408,233

372,148

10

Interest-bearing deposits

276,339

261,256

241,115

236,250

232,063

6

19

259,631

230,045

13

Total deposits

305,516

288,344

264,653

260,040

255,082

6

20

286,242

253,389

13

Borrowings

44,161

49,827

51,795

51,442

49,413

(11)

(11)

48,577

50,804

(4)

Common equity

51,995

52,413

53,186

52,641

52,566

(1)

(1)

52,529

50,393

4

Total stockholders' equity

57,223

57,623

58,568

58,148

57,245

(1)

—

57,802

54,861

5

































 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated













2020 Q3 vs.

Nine Months Ended September 30,

(Dollars in millions, except as noted)

2020

2020

2020

2019

2019

2020

2019




2020 vs.

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2020

2019

2019

Performance Metrics



















Net interest income growth (period over period)

2

%

(9)

%

(1)

%

6

%

—

**

**

(1)

%

1

%

**

Non-interest income growth (period over period)

67

(10)

(10)

11

(11)

%

**

**

7

(3)

**

Total net revenue growth (period over period)

13

(10)

(2)

7

(2)

**

**

—

—

**

Total net revenue margin(5)

7.54

6.93

8.16

8.51

8.16

61

bps

(62)

bps

7.53

8.33

(80)

bps

Net interest margin(6)

5.68

5.78

6.78

6.95

6.73

(10)

(105)

6.06

6.80

(74)

Return on average assets

2.28

(0.89)

(1.37)

1.23

1.42

317

86

0.05

1.56

(151)

Return on average tangible assets(7)

2.36

(0.93)

(1.43)

1.28

1.48

329

88

0.05

1.63

(158)

Return on average common equity(8)

17.84

(7.69)

(10.68)

7.93

9.63

**

8

%

(0.23)

10.94

**

Return on average tangible common equity(9)

24.98

(10.74)

(14.85)

11.07

13.45

**

12

(0.32)

15.54

**

Non-interest expense as a percentage of average loans held for
investment

5.69

5.95

5.67

6.43

6.29

(26)

(60)

bps

5.77

6.20

(43)

Efficiency ratio(10)

48.07

57.50

51.44

56.03

55.64

(9)

%

(8)

%

52.14

53.49

(135)

Operating efficiency ratio(11)

44.24

53.34

44.67

46.47

48.44

(9)

(4)

47.20

46.10

110

Effective income tax rate for continuing operations

31.3

37.2

29.6

18.6

22.0

(6)

9

(7.2)

19.7

(27)

%

Employees (period-end, in thousands)

52.5

53.1

52.1

51.9

52.1

(1)

1

52.5

52.1

1

Credit Quality Metrics



















Allowance for credit losses

$

16,129

$

16,832

$

14,073

$

7,208

$

7,037

(4)

%

129

%

$

16,129

$

7,037

129

%

Allowance coverage ratio

6.50

%

6.69

%

5.35

%

2.71

%

2.82

%

(19)

bps

368

bps

6.50

%

2.82

%

368

bps

Net charge-offs

$

1,073

$

1,505

$

1,791

$

1,683

$

1,462

(29)

%

(27)

%

$

4,369

$

4,569

(4)

%

Net charge-off rate(12)

1.72

%

2.38

%

2.72

%

2.60

%

2.38

%

(66)

bps

(66)

bps

2.28

%

2.50

%

(22)

bps

30+ day performing delinquency rate(13)

1.97

2.09

2.95

3.51

3.28

(12)

(131)

1.97

3.28

(131)

30+ day delinquency rate(13)

2.22

2.30

3.16

3.74

3.51

(8)

(129)

2.22

3.51

(129)

Capital Ratios(14)



















Common equity Tier 1 capital

13.0

%

12.4

%

12.0

%

12.2

%

12.5

%

60

bps

50

bps

13.0

%

12.5

%

50

bps

Tier 1 capital

14.8

14.2

13.7

13.7

14.4

60

40

14.8

14.4

40

Total capital

17.3

16.7

16.1

16.1

16.8

60

50

17.3

16.8

50

Tier 1 leverage

10.6

10.3

11.0

11.7

11.9

30

(130)

10.6

11.9

(130)

Tangible common equity ("TCE")(15)

9.4

8.8

9.6

10.2

10.3

60

(90)

9.4

10.3

(90)






































 

 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income













2020 Q3 vs.

Nine Months Ended September 30,


2020

2020

2020

2019

2019

2020

2019




2020 vs.

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

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2020

2019

2019

Interest income:



















Loans, including loans held for sale

$

5,758

$

5,820

$

6,542

$

6,682

$

6,429

(1)

%

(10)

%

$

18,120

$

19,180

(6)

%

Investment securities

443

482

530

544

583

(8)

(24)

1,455

1,867

(22)

Other

14

16

37

44

63

(13)

(78)

67

196

(66)

Total interest income

6,215

6,318

7,109

7,270

7,075

(2)

(12)

19,642

21,243

(8)

Interest expense:



















Deposits

476

611

731

832

901

(22)

(47)

1,818

2,588

(30)

Securitized debt obligations

43

56

99

118

123

(23)

(65)

198

405

(51)

Senior and subordinated notes

132

180

239

236

299

(27)

(56)

551

923

(40)

Other borrowings

9

11

15

18

15

(18)

(40)

35

53

(34)

Total interest expense

660

858

1,084

1,204

1,338

(23)

(51)

2,602

3,969

(34)

Net interest income

5,555

5,460

6,025

6,066

5,737

2

(3)

17,040

17,274

(1)

Provision for credit losses

331

4,246

5,423

1,818

1,383

(92)

(76)

10,000

4,418

126

Net interest income after provision for credit losses

5,224

1,214

602

4,248

4,354

**

20

7,040

12,856

(45)

Non-interest income:



















Interchange fees, net

775

672

752

811

790

15

(2)

2,199

2,368

(7)

Service charges and other customer-related fees

320

258

327

342

283

24

13

905

988

(8)

Net securities gains (losses)

25

—

—

(18)

5

**

**

25

44

(43)

Other

706

166

145

226

144

**

**

1,017

492

107

Total non-interest income

1,826

1,096

1,224

1,361

1,222

67

49

4,146

3,892

7

Non-interest expense:



















Salaries and associate benefits

1,719

1,704

1,627

1,652

1,605

1

7

5,050

4,736

7

Occupancy and equipment

506

523

517

565

519

(3)

(3)

1,546

1,533

1

Marketing

283

273

491

710

501

4

(44)

1,047

1,564

(33)

Professional services

327

304

287

318

314

8

4

918

919

—

Communications and data processing

310

308

302

346

312

1

(1)

920

944

(3)

Amortization of intangibles

14

16

22

28

25

(13)

(44)

52

84

(38)

Other(16)

389

642

483

542

596

(39)

(35)

1,514

1,542

(2)

Total non-interest expense

3,548

3,770

3,729

4,161

3,872

(6)

(8)

11,047

11,322

(2)

Income (loss) from continuing operations before income taxes

3,502

(1,460)

(1,903)

1,448

1,704

**

106

139

5,426

(97)

Income tax provision (benefit)

1,096

(543)

(563)

270

375

**

192

(10)

1,071

**

Income (loss) from continuing operations, net of tax

2,406

(917)

(1,340)

1,178

1,329

**

81

149

4,355

(97)

Income (loss) from discontinued operations, net of tax

—

(1)

—

(2)

4

**

**

(1)

15

**

Net income (loss)

2,406

(918)

(1,340)

1,176

1,333

**

80

148

4,370

(97)

Dividends and undistributed earnings allocated to participating securities(2)

(20)

(1)

(3)

(7)

(10)

**

100

(5)

(34)

(85)

Preferred stock dividends

(67)

(90)

(55)

(97)

(53)

(26)

26

(212)

(185)

15

Issuance cost for redeemed preferred stock(3)

—

—

(22)

(31)

—

—

—

(22)

—

**

Net income (loss) available to common stockholders

$

2,319

$

(1,009)

$

(1,420)

$

1,041

$

1,270

**

83

$

(91)

$

4,151

**






















































2020 Q3 vs.

Nine Months Ended September 30,


2020

2020

2020

2019

2019

2020

2019




2020 vs.

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

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2020

2019

2019

Basic earnings per common share:(2)



















Net income (loss) from continuing operations

$

5.07

$

(2.21)

$

(3.10)

$

2.26

$

2.70

**

88

%

$

(0.20)

$

8.80

**

Income from discontinued operations

—

—

—

—

0.01

—

**

—

0.03

**

Net income (loss) per basic common share

$

5.07

$

(2.21)

$

(3.10)

$

2.26

$

2.71

**

87

$

(0.20)

$

8.83

**

Diluted earnings per common share:(2)



















Net income (loss) from continuing operations

$

5.06

$

(2.21)

$

(3.10)

$

2.25

$

2.68

**

89

$

(0.20)

$

8.76

**

Income from discontinued operations

—

—

—

—

0.01

—

**

—

0.03

**

Net income (loss) per diluted common share

$

5.06

$

(2.21)

$

(3.10)

$

2.25

$

2.69

**

88

$

(0.20)

$

8.79

**

Weighted-average common shares outstanding (in millions):



















Basic common shares

457.8

456.7

457.6

460.9

469.5

—

(2)

457.4

469.9

(3)

%

Diluted common shares

458.5

456.7

457.6

463.4

471.8

—

(3)

457.4

472.1

(3)

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets














2020 Q3 vs.


2020

2020

2020

2019

2019

2020

2019

(Dollars in millions)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

Assets:













Cash and cash equivalents:













Cash and due from banks

$

4,267

$

4,583

$

4,545

$

4,129

$

4,452

(7)

%

(4)

%

Interest-bearing deposits and other short-term investments

39,839

51,235

20,391

9,278

12,668

(22)

**

Total cash and cash equivalents

44,106

55,818

24,936

13,407

17,120

(21)

158

Restricted cash for securitization investors

895

740

364

342

417

21

115

Investment securities:













Securities available for sale

99,853

87,859

81,423

79,213

46,168

14

116

Securities held to maturity

—

—

—

—

33,894

—

**

Total investment securities

99,853

87,859

81,423

79,213

80,062

14

25

Loans held for investment:













Unsecuritized loans held for investment

217,878

222,310

231,318

231,992

215,892

(2)

1

Loans held in consolidated trusts

30,345

29,202

31,672

33,817

33,463

4

(9)

Total loans held for investment

248,223

251,512

262,990

265,809

249,355

(1)

—

Allowance for credit losses

(16,129)

(16,832)

(14,073)

(7,208)

(7,037)

(4)

129

Net loans held for investment

232,094

234,680

248,917

258,601

242,318

(1)

(4)

Loans held for sale

3,433

711

1,056

400

1,245

**

176

Premises and equipment, net

4,333

4,324

4,336

4,378

4,311

—

1

Interest receivable

1,551

1,574

1,687

1,758

1,627

(1)

(5)

Goodwill

14,648

14,645

14,645

14,653

14,624

—

—

Other assets

20,970

20,945

19,514

17,613

17,086

—

23

Total assets

$

421,883

$

421,296

$

396,878

$

390,365

$

378,810

—

11



























2020 Q3 vs.


2020

2020

2020

2019

2019

2020

2019

(Dollars in millions)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

Liabilities:













Interest payable

$

332

$

380

$

359

$

439

$

370

(13)

%

(10)

%

Deposits:













Non-interest-bearing deposits

29,633

29,055

24,547

23,488

23,064

2

28

Interest-bearing deposits

276,092

275,183

245,142

239,209

234,084

—

18

Total deposits

305,725

304,238

269,689

262,697

257,148

—

19

Securitized debt obligations

13,566

15,761

17,141

17,808

18,910

(14)

(28)

Other debt:













Federal funds purchased and securities loaned or sold under agreements to repurchase

702

573

399

314

464

23

51

Senior and subordinated notes

28,448

28,481

32,049

30,472

30,682

—

(7)

Other borrowings

79

85

6,092

7,103

93

(7)

(15)

Total other debt

29,229

29,139

38,540

37,889

31,239

—

(6)

Other liabilities

14,607

15,733

14,319

13,521

12,908

(7)

13

Total liabilities

363,459

365,251

340,048

332,354

320,575

—

13















Stockholders' equity:













Preferred stock

0

0

0

0

0

—

—

Common stock

7

7

7

7

7

—

—

Additional paid-in capital, net

33,793

33,556

33,450

32,980

33,826

1

—

Retained earnings

37,653

35,361

36,552

40,340

39,476

6

(5)

Accumulated other comprehensive income

3,833

3,981

3,679

1,156

453

(4)

**

Treasury stock, at cost

(16,862)

(16,860)

(16,858)

(16,472)

(15,527)

—

9

Total stockholders' equity

58,424

56,045

56,830

58,011

58,235

4

—

Total liabilities and stockholders' equity

$

421,883

$

421,296

$

396,878

$

390,365

$

378,810

—

11

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)



(1)

Total net revenue was reduced by $235 million in Q3 2020, $318 million in Q2 2020 and $389 million in Q1 2020 for credit card finance charges and fees charged-off as uncollectible, and by $365 million in Q4 2019 and $330 million in Q3 2019 for the estimated uncollectible amount of credit card finance charges and fees and related losses.

(2)

Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures.

(3)

On March 2, 2020, we redeemed all outstanding shares of our fixed rate 6.00% non-cumulative perpetual preferred stock Series B. The redemption increased our net loss available to common shareholders by $22 million in Q1 2020. On December 2, 2019, we redeemed all outstanding shares of our fixed rate 6.25% non-cumulative perpetual preferred stock Series C and fixed rate 6.70% non-cumulative perpetual preferred stock Series D. The redemption reduced our net income available to common shareholders by $31 million in Q4 2019.

(4)

Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.

(5)

Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

(6)

Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

(7)

Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.

(8)

Return on average common equity is calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.

(9)

Return on average tangible common equity ("ROTCE") is a non-GAAP measure calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average tangible common equity ("TCE"). Our calculation of return on average TCE may not be comparable to similarly-titled measures reported by other companies. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.

(10)

Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures.

(11)

Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures.

(12)

Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

(13)

Metrics for Q3 2020, Q2 2020 and Q1 2020 include the impact of COVID-19 customer assistance programs where applicable.

(14)

Capital ratios as of the end of Q3 2020 are preliminary and therefore subject to change. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for information on the calculation of each of these ratios.

(15)

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

(16)

Includes net Cybersecurity Incident expenses of $6 million in Q3 2020, $11 million in Q2 2020, $4 million in Q1 2020, $16 million in Q4 2019 and $22 million in Q3 2019, respectively.

**

Not meaningful.

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




2020 Q3

2020 Q2

2019 Q3


Average
Balance

Interest
Income/
Expense

Yield/Rate

Average
Balance

Interest
Income/
Expense

Yield/Rate

Average
Balance

Interest
Income/
Expense

Yield/Rate

(Dollars in millions, except as noted)









Interest-earning assets:


















Loans, including loans held for sale

$

250,525

$

5,758

9.19

%

$

254,402

$

5,820

9.15

%

$

247,419

$

6,429

10.39

%

Investment securities

91,777

443

1.93

81,095

482

2.38

80,762

583

2.88

Cash equivalents and other

49,149

14

0.11

42,648

16

0.15

12,768

63

2.00

Total interest-earning assets

$

391,451

$

6,215

6.35

$

378,145

$

6,318

6.68

$

340,949

$

7,075

8.30

Interest-bearing liabilities:


















Interest-bearing deposits

$

276,339

$

476

0.69

$

261,256

$

611

0.94

$

232,063

$

901

1.55

Securitized debt obligations

15,032

43

1.14

16,432

56

1.37

16,750

123

2.94

Senior and subordinated notes

28,497

132

1.86

31,294

180

2.30

31,220

299

3.84

Other borrowings and liabilities

2,119

9

1.77

3,554

11

1.21

2,698

15

2.14

Total interest-bearing liabilities

$

321,987

$

660

0.82

$

312,536

$

858

1.10

$

282,731

$

1,338

1.89

Net interest income/spread


$

5,555

5.53



$

5,460

5.58



$

5,737

6.41

Impact of non-interest-bearing funding




0.15





0.20





0.32

Net interest margin




5.68

%




5.78

%




6.73

%




Nine Months Ended September 30,


2020

2019


Average
Balance

Interest
Income/
Expense

Yield/Rate

Average
Balance

Interest
Income/
Expense

Yield/Rate

(Dollars in millions, except as noted)





Interest-earning assets:











Loans, including loans held for sale

$

256,165

$

18,120

9.43

%

$

244,743

$

19,180

10.45

%

Investment securities

83,724

1,455

2.32

82,264

1,867

3.03

Cash equivalents and other

35,152

67

0.25

11,929

196

2.19

Total interest-earning assets

$

375,041

$

19,642

6.98

$

338,936

$

21,243

8.36

Interest-bearing liabilities:











Interest-bearing deposits

$

259,631

$

1,818

0.93

$

230,045

$

2,588

1.50

Securitized debt obligations

16,500

198

1.60

17,912

405

3.02

Senior and subordinated notes

30,371

551

2.42

30,897

923

3.98

Other borrowings and liabilities

3,147

35

1.50

3,228

53

2.19

Total interest-bearing liabilities

$

309,649

$

2,602

1.12

$

282,082

$

3,969

1.88

Net interest income/spread


$

17,040

5.86



$

17,274

6.48

Impact of non-interest-bearing funding




0.20





0.32

Net interest margin




6.06

%




6.80

%

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics














2020 Q3 vs.

Nine Months Ended September 30,


2020

2020

2020

2019

2019

2020

2019

2020

2019

2020 vs.

(Dollars in millions, except as noted)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2019

Loans Held for Investment (Period-End)



















Credit card:



















   Domestic credit card(7)

$

95,541

$

99,390

$

109,549

$

118,606

$

104,664

(4)

%

(9)

%

$

95,541

$

104,664

(9)

%

   International card businesses

8,100

7,920

8,248

9,630

9,017

2

(10)

8,100

9,017

(10)

Total credit card(1)

103,641

107,310

117,797

128,236

113,681

(3)

(9)

103,641

113,681

(9)

Consumer banking:



















   Auto

65,394

63,319

61,364

60,362

59,278

3

10

65,394

59,278

10

   Retail banking

3,294

3,393

2,669

2,703

2,737

(3)

20

3,294

2,737

20

Total consumer banking

68,688

66,712

64,033

63,065

62,015

3

11

68,688

62,015

11

Commercial banking:



















   Commercial and multifamily real estate

31,197

30,953

32,373

30,245

30,009

1

4

31,197

30,009

4

   Commercial and industrial

44,697

46,537

48,787

44,263

43,650

(4)

2

44,697

43,650

2

Total commercial banking

75,894

77,490

81,160

74,508

73,659

(2)

3

75,894

73,659

3

Total loans held for investment

$

248,223

$

251,512

$

262,990

$

265,809

$

249,355

(1)

—

$

248,223

$

249,355

—

Loans Held for Investment (Average)



















Credit card:



















   Domestic credit card

$

97,306

$

100,996

$

113,711

$

112,965

$

103,426

(4)

%

(6)

%

$

103,980

$

102,677

1

%

   International card businesses

8,061

7,752

9,065

9,120

8,945

4

(10)

8,292

8,868

(6)

Total credit card(1)

105,367

108,748

122,776

122,085

112,371

(3)

(6)

112,272

111,545

1

Consumer banking:



















   Auto

64,476

61,798

61,005

59,884

58,517

4

10

62,434

57,282

9

   Retail banking

3,346

3,053

2,666

2,712

2,752

10

22

3,023

2,790

8

Total consumer banking

67,822

64,851

63,671

62,596

61,269

5

11

65,457

60,072

9

Commercial banking:



















   Commercial and multifamily real estate

30,918

31,723

31,081

30,173

29,698

(3)

4

31,239

29,418

6

   Commercial and industrial

45,404

48,036

45,361

44,016

42,807

(5)

6

46,264

42,474

9

   Total commercial lending

76,322

79,759

76,442

74,189

72,505

(4)

5

77,503

71,892

8

   Small-ticket commercial real estate

—

—

—

—

2

**

**

—

93

**

Total commercial banking

76,322

79,759

76,442

74,189

72,507

(4)

5

77,503

71,985

8

Total average loans held for investment

$

249,511

$

253,358

$

262,889

$

258,870

$

246,147

(2)

1

$

255,232

$

243,602

5


















2020 Q3 vs.

Nine Months Ended September 30,


2020

2020

2020

2019

2019

2020

2019

2020

2019

2020 vs.



Q3

Q2

Q1

Q4

Q3

Q2

Q3

2019

Net Charge-Off Rates


























Credit card:


























   Domestic credit card

3.64

%

4.53

%

4.68

%

4.32

%

4.12

%

(89)

bps

(48)

bps

4.31

%

4.67

%

(36)

bps

   International card businesses

2.89


3.47


4.65


4.22


3.78

(58)

(89)


3.71


3.54

17

Total credit card

3.58


4.46


4.68


4.31


4.09

(88)

(51)


4.26


4.58

(32)

Consumer banking:


























   Auto

0.23


1.16


1.51


1.90


1.60

(93)

(137)


0.95


1.38

(43)

   Retail banking

1.38


1.78


2.37


2.77


2.55

(40)

(117)


1.80


2.51

(71)

Total consumer banking

0.28


1.19


1.54


1.93


1.64

(91)

(136)


0.99


1.43

(44)

Commercial banking:


























   Commercial and multifamily real estate

0.41


0.09


—


—


0.02

32

39


0.17


0.01

16

   Commercial and industrial

0.45


0.78


0.96


0.60


0.55

(33)

(10)


0.73


0.28

45

Total commercial banking

0.43


0.51


0.57


0.35


0.33

(8)

10


0.50


0.17

33

Total net charge-offs

1.72


2.38


2.72


2.60


2.38

(66)

(66)


2.28


2.50

(22)

30+ Day Performing Delinquency Rates(2)


























Credit card:


























   Domestic credit card

2.21

%

2.74

%

3.69

%

3.93

%

3.71

%

(53)

bps

(150)

bps

2.21

%

3.71

%

(150)

bps

   International card businesses

2.15


2.71


3.66


3.47


3.52

(56)

(137)


2.15


3.52

(137)

Total credit card

2.20


2.74


3.69


3.89


3.69

(54)

(149)


2.20


3.69

(149)

Consumer banking:


























   Auto

3.76


3.28


5.29


6.88


6.47

48

(271)


3.76


6.47

(271)

   Retail banking

0.83


0.89


1.27


1.02


1.01

(6)

(18)


0.83


1.01

(18)

Total consumer banking

3.62


3.16


5.12


6.63


6.23

46

(261)


3.62


6.23

(261)

Nonperforming Loans and Nonperforming Assets Rates(3)(4)


























Credit card:


























   International card businesses

0.25

%

0.29

%

0.29

%

0.26

%

0.25

%

(4)

bps

—


0.25

%

0.25

%

—

Total credit card

0.02


0.02


0.02


0.02


0.02

—

—


0.02


0.02

—

Consumer banking:


























   Auto

0.36


0.41


0.62


0.81


0.73

(5)

(37)

bps

0.36


0.73

(37)

bps

   Retail banking

0.77


0.70


0.88


0.87


0.91

7

(14)


0.77


0.91

(14)

Total consumer banking

0.38


0.43


0.63


0.81


0.74

(5)

(36)


0.38


0.74

(36)

Commercial banking:


























   Commercial and multifamily real estate

0.58


0.54


0.22


0.12


0.12

4

46


0.58


0.12

46

   Commercial and industrial

1.31


1.06


0.87


0.93


0.95

25

36


1.31


0.95

36

Total commercial banking

1.01


0.85


0.61


0.60


0.61

16

40


1.01


0.61

40

Total nonperforming loans

0.42


0.38


0.35


0.37


0.37

4

5


0.42


0.37

5

Total nonperforming assets

0.44


0.39


0.37


0.39


0.40

5

4


0.44


0.40

4

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




Three Months Ended September 30, 2020


Credit Card

Consumer Banking



(Dollars in millions)

Domestic
Card

International
Card
Businesses

Total Credit
Card

Auto

Retail
Banking

Total
Consumer
Banking

Commercial
Banking

Total

Allowance for credit losses:















Balance as of June 30, 2020

$

11,569

$

522

$

12,091

$

2,726

$

112

$

2,838

$

1,903

$

16,832

Charge-offs

(1,198)

(98)

(1,296)

(280)

(15)

(295)

(88)

(1,679)

Recoveries

313

40

353

244

3

247

6

606

Net charge-offs

(885)

(58)

(943)

(36)

(12)

(48)

(82)

(1,073)

Provision (benefit) for credit losses

378

72

450

(43)

—

(43)

(51)

356

Allowance build (release) for credit losses

(507)

14

(493)

(79)

(12)

(91)

(133)

(717)

Other changes(5)

—

14

14

—

—

—

—

14

Balance as of September 30, 2020

11,062

550

11,612

2,647

100

2,747

1,770

16,129

Reserve for unfunded lending commitments:















Balance as of June 30, 2020

—

—

—

—

—

—

218

218

Benefit for losses on unfunded lending commitments

—

—

—

—

—

—

(23)

(23)

Balance as of September 30, 2020

—

—

—

—

—

—

195

195

Combined allowance and reserve as of September 30, 2020

$

11,062

$

550

$

11,612

$

2,647

$

100

$

2,747

$

1,965

$

16,324




Nine Months Ended September 30, 2020


Credit Card

Consumer Banking



(Dollars in millions)

Domestic
Card

International
Card
Businesses

Total Credit
Card

Auto

Retail
Banking

Total
Consumer
Banking

Commercial
Banking

Total

Allowance for credit losses:















Balance as of December 31, 2019

$

4,997

$

398

$

5,395

$

984

$

54

$

1,038

$

775

$

7,208

Cumulative effects from adoption of the current expected credit loss ("CECL")
standard

2,237

4

2,241

477

25

502

102

2,845

Finance charge and fee reserve reclassification(1)

439

23

462

—

—

—

—

462

Balance as of January 1, 2020

7,673

425

8,098

1,461

79

1,540

877

10,515

Charge-offs

(4,406)

(351)

(4,757)

(1,155)

(52)

(1,207)

(303)

(6,267)

Recoveries

1,047

120

1,167

710

11

721

10

1,898

Net charge-offs

(3,359)

(231)

(3,590)

(445)

(41)

(486)

(293)

(4,369)

Provision for credit losses

6,748

348

7,096

1,631

62

1,693

1,186

9,975

Allowance build for credit losses

3,389

117

3,506

1,186

21

1,207

893

5,606

Other changes(5)

—

8

8

—

—

—

—

8

Balance as of September 30, 2020

11,062

550

11,612

2,647

100

2,747

1,770

16,129

Reserve for unfunded lending commitments:















Balance as of December 31, 2019

—

—

—

—

5

5

130

135

Cumulative effects from adoption of the CECL standard

—

—

—

—

(5)

(5)

42

37

Balance as of January 1, 2020

—

—

—

—

—

—

172

172

Provision for losses on unfunded lending commitments

—

—

—

—

—

—

23

23

Balance as of September 30, 2020

—

—

—

—

—

—

195

195

Combined allowance and reserve as of September 30, 2020

$

11,062

$

550

$

11,612

$

2,647

$

100

$

2,747

$

1,965

$

16,324

 

 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results




Three Months Ended September 30, 2020

Nine Months Ended September 30, 2020

(Dollars in millions)

Credit
Card

Consumer
Banking

Commercial
Banking(6)

Other(6)

Total

Credit
Card

Consumer
Banking

Commercial
Banking(6)

Other(6)

Total

Net interest income (loss)

$

3,292

$

1,904

$

517

$

(158)

$

5,555

$

10,363

$

5,226

$

1,526

$

(75)

$

17,040

Non-interest income

1,013

107

237

469

1,826

2,769

330

655

392

4,146

Total net revenue

4,305

2,011

754

311

7,381

13,132

5,556

2,181

317

21,186

Provision (benefit) for credit losses

450

(43)

(74)

(2)

331

7,096

1,693

1,209

2

10,000

Non-interest expense

2,003

1,011

424

110

3,548

6,180

3,038

1,261

568

11,047

Income (loss) from continuing operations before income taxes

1,852

1,043

404

203

3,502

(144)

825

(289)

(253)

139

Income tax provision (benefit)

438

247

95

316

1,096

(34)

195

(69)

(102)

(10)

Income (loss) from continuing operations, net of tax

$

1,414

$

796

$

309

$

(113)

$

2,406

$

(110)

$

630

$

(220)

$

(151)

$

149























Three Months Ended June 30, 2020









(Dollars in millions)

Credit
Card

Consumer
Banking

Commercial
Banking(6)

Other(6)

Total









Net interest income (loss)

$

3,369

$

1,665

$

518

$

(92)

$

5,460










Non-interest income (loss)

845

97

180

(26)

1,096










Total net revenue (loss)

4,214

1,762

698

(118)

6,556










Provision (benefit) for credit losses

2,944

876

427

(1)

4,246










Non-interest expense

1,969

1,036

425

340

3,770










Loss from continuing operations before income taxes

(699)

(150)

(154)

(457)

(1,460)










Income tax benefit

(166)

(36)

(36)

(305)

(543)










Loss from continuing operations, net of tax

$

(533)

$

(114)

$

(118)

$

(152)

$

(917)

































Three Months Ended September 30, 2019

Nine Months Ended September 30, 2019

(Dollars in millions)

Credit
Card

Consumer
Banking

Commercial
Banking(6)

Other(6)

Total

Credit
Card

Consumer
Banking

Commercial
Banking(6)

Other(6)

Total

Net interest income

$

3,546

$

1,682

$

486

$

23

$

5,737

$

10,667

$

5,070

$

1,489

$

48

$

17,274

Non-interest income (loss)

870

165

221

(34)

1,222

2,858

491

608

(65)

3,892

Total net revenue (loss)

4,416

1,847

707

(11)

6,959

13,525

5,561

2,097

(17)

21,166

Provision for credit losses

1,087

203

93

—

1,383

3,571

603

244

—

4,418

Non-interest expense

2,360

985

414

113

3,872

6,784

2,981

1,258

299

11,322

Income (loss) from continuing operations before income taxes

969

659

200

(124)

1,704

3,170

1,977

595

(316)

5,426

Income tax provision (benefit)

235

154

46

(60)

375

747

461

138

(275)

1,071

Income (loss) from continuing operations, net of tax

$

734

$

505

$

154

$

(64)

$

1,329

$

2,423

$

1,516

$

457

$

(41)

$

4,355





















 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business












2020 Q3 vs.

Nine Months Ended September 30,


2020

2020

2020

2019

2019

2020

2019




2020 vs.

(Dollars in millions, except as noted)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2020

2019

2019

Credit Card



















Earnings:



















Net interest income

$

3,292

$

3,369

$

3,702

$

3,794

$

3,546

(2)

%

(7)

%

$

10,363

$

10,667

(3)

%

Non-interest income

1,013

845

911

1,030

870

20

16

2,769

2,858

(3)

Total net revenue

4,305

4,214

4,613

4,824

4,416

2

(3)

13,132

13,525

(3)

Provision for credit losses

450

2,944

3,702

1,421

1,087

(85)

(59)

7,096

3,571

99

Non-interest expense

2,003

1,969

2,208

2,487

2,360

2

(15)

6,180

6,784

(9)

Income (loss) from continuing operations before income taxes

1,852

(699)

(1,297)

916

969

**

91

(144)

3,170

**

Income tax provision (benefit)

438

(166)

(306)

212

235

**

86

(34)

747

**

Income (loss) from continuing operations, net of tax

$

1,414

$

(533)

$

(991)

$

704

$

734

**

93

$

(110)

$

2,423

**

Selected performance metrics:



















Period-end loans held for investment(1)(7)

$

103,641

$

107,310

$

117,797

$

128,236

$

113,681

(3)

(9)

$

103,641

$

113,681

(9)

Average loans held for investment(1)

105,367

108,748

122,776

122,085

112,371

(3)

(6)

112,272

111,545

1

Average yield on loans held for investment(8)

13.83

%

13.72

%

14.46

%

15.02

%

15.55

%

11

bps

(172)

bps

14.03

%

15.66

%

(163)

bps

Total net revenue margin(9)

16.34

15.50

15.03

15.80

15.72

84

62

15.59

16.17

(58)

Net charge-off rate

3.58

4.46

4.68

4.31

4.09

(88)

(51)

4.26

4.58

(32)

30+ day performing delinquency rate

2.20

2.74

3.69

3.89

3.69

(54)

(149)

2.20

3.69

(149)

30+ day delinquency rate

2.21

2.75

3.70

3.91

3.71

(54)

(150)

2.21

3.71

(150)

Nonperforming loan rate(3)

0.02

0.02

0.02

0.02

0.02

—

—

0.02

0.02

—

Purchase volume(10)

$

107,102

$

90,149

$

99,920

$

116,631

$

108,034

19

%

(1)

%

$

297,171

$

308,134

(4)

%















































2020 Q3 vs.

Nine Months Ended September 30,


2020

2020

2020

2019

2019

2020

2019




2020 vs.

(Dollars in millions, except as noted)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2020

2019

2019

Domestic Card



















Earnings:



















Net interest income

$

2,995

$

3,094

$

3,381

$

3,473

$

3,299

(3)

%

(9)

%

$

9,470

$

9,792

(3)

%

Non-interest income

952

795

842

962

878

20

8

2,589

2,722

(5)

Total net revenue

3,947

3,889

4,223

4,435

4,177

1

(6)

12,059

12,514

(4)

Provision for credit losses

378

2,906

3,464

1,346

1,010

(87)

(63)

6,748

3,325

103

Non-interest expense

1,802

1,776

1,984

2,249

2,076

1

(13)

5,562

6,059

(8)

Income (loss) from continuing operations before income taxes

1,767

(793)

(1,225)

840

1,091

**

62

(251)

3,130

**

Income tax provision (benefit)

419

(188)

(290)

196

254

**

65

(59)

729

**

Income (loss) from continuing operations, net of tax

$

1,348

$

(605)

$

(935)

$

644

$

837

**

61

$

(192)

$

2,401

**

Selected performance metrics:



















Period-end loans held for investment(1)(7)

$

95,541

$

99,390

$

109,549

$

118,606

$

104,664

(4)

(9)

$

95,541

$

104,664

(9)

Average loans held for investment(1)

97,306

100,996

113,711

112,965

103,426

(4)

(6)

103,980

102,677

1

Average yield on loans held for investment(8)

13.57

%

13.52

%

14.30

%

14.91

%

15.74

%

5

bps

(217)

bps

13.82

%

15.67

%

(185)

bps

Total net revenue margin(9)

16.22

15.40

14.86

15.70

16.15

82

7

15.46

16.25

(79)

Net charge-off rate

3.64

4.53

4.68

4.32

4.12

(89)

(48)

4.31

4.67

(36)

30+ day performing delinquency rate

2.21

2.74

3.69

3.93

3.71

(53)

(150)

2.21

3.71

(150)

Purchase volume(10)

$

98,107

$

82,860

$

92,248

$

107,154

$

99,087

18

%

(1)

%

$

273,215

$

282,878

(3)

%

Refreshed FICO scores:(11)



















Greater than 660

69

%

67

%

65

%

67

%

68

%

2

1

69

%

68

%

1

660 or below

31

33

35

33

32

(2)

(1)

31

32

(1)

Total

100

%

100

%

100

%

100

%

100

%




100

%

100

%

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business














2020 Q3 vs.

Nine Months Ended September 30,


2020

2020

2020

2019

2019

2020

2019




2020 vs.

(Dollars in millions, except as noted)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2020

2019

2019

Consumer Banking



















Earnings:



















Net interest income

$

1,904

$

1,665

$

1,657

$

1,662

$

1,682

14

%

13

%

$

5,226

$

5,070

3

%

Non-interest income

107

97

126

152

165

10

(35)

330

491

(33)

Total net revenue

2,011

1,762

1,783

1,814

1,847

14

9

5,556

5,561

—

Provision (benefit) for credit losses

(43)

876

860

335

203

**

**

1,693

603

181

Non-interest expense

1,011

1,036

991

1,110

985

(2)

3

3,038

2,981

2

Income (loss) from continuing operations before income taxes

1,043

(150)

(68)

369

659

**

58

825

1,977

(58)

Income tax provision (benefit)

247

(36)

(16)

86

154

**

60

195

461

(58)

Income (loss) from continuing operations, net of tax

$

796

$

(114)

$

(52)

$

283

$

505

**

58

$

630

$

1,516

(58)

Selected performance metrics:



















Period-end loans held for investment

$

68,688

$

66,712

$

64,033

$

63,065

$

62,015

3

11

$

68,688

$

62,015

11

Average loans held for investment

67,822

64,851

63,671

62,596

61,269

5

11

65,457

60,072

9

Average yield on loans held for investment(8)

8.36

%

8.41

%

8.46

%

8.51

%

8.47

%

(5)

bps

(11)

bps

8.41

%

8.33

%

8

bps

Auto loan originations

$

8,979

$

8,292

$

7,640

$

7,527

$

8,175

8

%

10

%

$

24,910

$

21,723

15

%

Period-end deposits

249,684

246,804

217,607

213,099

206,423

1

21

249,684

206,423

21

Average deposits

248,418

232,293

215,071

209,783

204,933

7

21

231,988

203,404

14

Average deposits interest rate

0.66

%

0.89

%

1.06

%

1.20

%

1.31

%

(23)

bps

(65)

bps

0.86

%

1.25

%

(39)

bps

Net charge-off rate

0.28

1.19

1.54

1.93

1.64

(91)

(136)

0.99

1.43

(44)

30+ day performing delinquency rate

3.62

3.16

5.12

6.63

6.23

46

(261)

3.62

6.23

(261)

30+ day delinquency rate

3.90

3.48

5.65

7.34

6.86

42

(296)

3.90

6.86

(296)

Nonperforming loan rate(3)

0.38

0.43

0.63

0.81

0.74

(5)

(36)

0.38

0.74

(36)

Nonperforming asset rate(4)

0.43

0.46

0.71

0.91

0.83

(3)

(40)

0.43

0.83

(40)

Auto—At origination FICO scores:(12)



















Greater than 660

46

%

46

%

47

%

48

%

48

%

—

(2)

%

46

%

48

%

(2)

%

621 - 660

20

20

20

20

20

—

—

20

20

—

620 or below

34

34

33

32

32

—

2

34

32

2

Total

100

%

100

%

100

%

100

%

100

%




100

%

100

%






















 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business













2020 Q3 vs.

Nine Months Ended September 30,


2020

2020

2020

2019

2019

2020

2019




2020 vs.

(Dollars in millions, except as noted)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2020

2019

2019

Commercial Banking



















Earnings:



















Net interest income

$

517

$

518

$

491

$

494

$

486

—

6

%

$

1,526

$

1,489

2

%

Non-interest income

237

180

238

223

221

32

%

7

655

608

8

Total net revenue(6)

754

698

729

717

707

8

7

2,181

2,097

4

Provision (benefit) for credit losses

(74)

427

856

62

93

**

**

1,209

244

**

Non-interest expense

424

425

412

441

414

—

2

1,261

1,258

—

Income (loss) from continuing operations before income taxes

404

(154)

(539)

214

200

**

102

(289)

595

**

Income tax provision (benefit)

95

(36)

(128)

50

46

**

107

(69)

138

**

Income (loss) from continuing operations, net of tax

$

309

$

(118)

$

(411)

$

164

$

154

**

101

$

(220)

$

457

**

Selected performance metrics:



















Period-end loans held for investment

$

75,894

$

77,490

$

81,160

$

74,508

$

73,659

(2)

3

$

75,894

$

73,659

3

Average loans held for investment

76,322

79,759

76,442

74,189

72,507

(4)

5

77,503

71,985

8

Average yield on loans held for investment(6)(8)

2.82

%

3.00

%

3.88

%

4.22

%

4.45

%

(18)

bps

(163)

bps

3.23

%

4.61

%

(138)

bps

Period-end deposits

$

36,783

$

35,669

$

32,822

$

32,134

$

30,923

3

%

19

%

$

36,783

$

30,923

19

%

Average deposits

36,278

34,635

32,238

32,034

30,693

5

18

34,391

30,957

11

Average deposits interest rate

0.25

%

0.30

%

0.89

%

1.10

%

1.25

%

(5)

bps

(100)

bps

0.47

%

1.21

%

(74)

bps

Net charge-off rate

0.43

0.51

0.57

0.35

0.33

(8)

10

0.50

0.17

33

Nonperforming loan rate(3)

1.01

0.85

0.61

0.60

0.61

16

40

1.01

0.61

40

Nonperforming asset rate(4)

1.01

0.85

0.61

0.60

0.61

16

40

1.01

0.61

40

Risk category:(13)



















Noncriticized

$

68,533

$

70,881

$

77,714

$

71,848

$

71,144

(3)

%

(4)

%

$

68,533

$

71,144

(4)

%

Criticized performing

6,593

5,949

2,952

2,181

2,035

11

**

6,593

2,035

**

Criticized nonperforming

768

660

494

448

449

16

71

768

449

71

PCI loans

—

—

—

31

31

—

**

—

31

**

Total commercial banking loans

$

75,894

$

77,490

$

81,160

$

74,508

$

73,659

(2)

3

$

75,894

$

73,659

3

Risk category as a percentage of period-end loans held for investment:(13)















Noncriticized

90.3

%

91.4

%

95.8

%

96.5

%

96.6

%

(110)

bps

(630)

bps

90.3

%

96.6

%

(630)

bps

Criticized performing

8.7

7.7

3.6

2.9

2.8

100

590

8.7

2.8

590

Criticized nonperforming

1.0

0.9

0.6

0.6

0.6

10

40

1.0

0.6

40

Total commercial banking loans

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%




100.0

%

100.0

%







































 

 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total














2020 Q3 vs.

Nine Months Ended September 30,


2020

2020

2020

2019

2019

2020

2019




2020 vs.

(Dollars in millions)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2020

2019

2019

Other



















Earnings:



















Net interest income (loss)

$

(158)

$

(92)

$

175

$

116

$

23

72

%

**

$

(75)

$

48

**

Non-interest income (loss)

469

(26)

(51)

(44)

(34)

**

**

392

(65)

**

Total net revenue (loss)(6)

311

(118)

124

72

(11)

**

**

317

(17)

**

Provision (benefit) for credit losses

(2)

(1)

5

—

—

100

**

2

—

**

Non-interest expense(14)(15)

110

340

118

123

113

(68)

(3)

%

568

299

90

%

Income (loss) from continuing operations before income taxes

203

(457)

1

(51)

(124)

**

**

(253)

(316)

(20)

Income tax provision (benefit)

316

(305)

(113)

(78)

(60)

**

**

(102)

(275)

(63)

Income (loss) from continuing operations, net of tax

$

(113)

$

(152)

$

114

$

27

$

(64)

(26)

77

$

(151)

$

(41)

**

Selected performance metrics:



















Period-end deposits

$

19,258

$

21,765

$

19,260

$

17,464

$

19,802

(12)

(3)

$

19,258

$

19,802

(3)

Average deposits

20,820

21,416

17,344

18,223

19,456

(3)

7

19,863

19,028

4

Total



















Earnings:



















Net interest income

$

5,555

$

5,460

$

6,025

$

6,066

$

5,737

2

%

(3)

%

$

17,040

$

17,274

(1)

%

Non-interest income

1,826

1,096

1,224

1,361

1,222

67

49

4,146

3,892

7

Total net revenue

7,381

6,556

7,249

7,427

6,959

13

6

21,186

21,166

—

Provision for credit losses

331

4,246

5,423

1,818

1,383

(92)

(76)

10,000

4,418

126

Non-interest expense

3,548

3,770

3,729

4,161

3,872

(6)

(8)

11,047

11,322

(2)

Income (loss) from continuing operations before income taxes

3,502

(1,460)

(1,903)

1,448

1,704

**

106

139

5,426

(97)

Income tax provision (benefit)

1,096

(543)

(563)

270

375

**

192

(10)

1,071

**

Income (loss) from continuing operations, net of tax

$

2,406

$

(917)

$

(1,340)

$

1,178

$

1,329

**

81

$

149

$

4,355

(97)

Selected performance metrics:



















Period-end loans held for investment

$

248,223

$

251,512

$

262,990

$

265,809

$

249,355

(1)

—

$

248,223

$

249,355

—

Average loans held for investment

249,511

253,358

262,889

258,870

246,147

(2)

1

255,232

243,602

5

Period-end deposits

305,725

304,238

269,689

262,697

257,148

—

19

305,725

257,148

19

Average deposits

305,516

288,344

264,653

260,040

255,082

6

20

286,242

253,389

13

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)



(1)

Concurrent with our adoption of the CECL standard in the first quarter of 2020, we reclassified our finance charge and fee reserve to our allowance for credit losses, with a corresponding increase to credit card loans held for investment.

(2)

Metrics for Q3 2020, Q2 2020 and Q1 2020 include the impact of COVID-19 customer assistance programs where applicable.

(3)

Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category.

(4)

Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.

(5)

Represents foreign currency translation adjustments.

(6)

Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(7)

We reclassified $2.1 billion in partnership loans to held for sale as of September 30, 2020.

(8)

Average yield on loans held for investment is calculated based on annualized interest income for the period divided by average loans held for investment during the period for the respective loan category. Annualized interest income is computed based on the effective yield of the respective loan category and does not include any allocations, such as funds transfer pricing.

(9)

Total net revenue margin is calculated based on annualized total net revenue for the period divided by average loans held for investment during the period for the respective loan category.

(10)

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

(11)

Percentages represent period-end loans held for investment in each credit score category. Domestic card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.

(12)

Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.

(13)

Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.

(14)

Includes charges incurred as a result of restructuring activities.

(15)

Includes net Cybersecurity Incident expenses of $6 million in Q3 2020, $11 million in Q2 2020, $4 million in Q1 2020, $16 million in Q4 2019 and $22 million in Q3 2019, respectively.

** 

Not meaningful.

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1)



Basel III Standardized Approach

(Dollars in millions, except as noted)

September 30,
2020

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

Regulatory Capital Metrics









Common equity excluding AOCI

$

52,839

$

50,614

$

51,018

$

52,001

$

51,959

Adjustments:









AOCI, net of tax(2)

(122)

(145)

(170)

1,156

453

Goodwill, net of related deferred tax liabilities

(14,448)

(14,449)

(14,453)

(14,465)

(14,439)

Intangible assets, net of related deferred tax liabilities

(95)

(135)

(151)

(170)

(180)

Other(2)

—

—

—

(360)

(588)

Common equity Tier 1 capital

$

38,174

$

35,885

$

36,244

$

38,162

$

37,205

Tier 1 capital

$

43,505

$

41,094

$

41,453

$

43,015

$

43,028

Total capital(3)

50,954

48,508

48,775

50,350

50,174

Risk-weighted assets

293,790

290,222

302,871

313,155

298,130

Adjusted average assets(4)

409,602

398,062

377,360

368,511

360,266

Capital Ratios









Common equity Tier 1 capital(5)

13.0

%

12.4

%

12.0

%

12.2

%

12.5

%

Tier 1 capital(6)

14.8

14.2

13.7

13.7

14.4

Total capital(7)

17.3

16.7

16.1

16.1

16.8

Tier 1 leverage(4)

10.6

10.3

11.0

11.7

11.9

Tangible common equity ("TCE")(8)

9.4

8.8

9.6

10.2

10.3

 

 

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.



2020

2020

2020

Nine Months Ended


Q3

Q2

Q1

September 30, 2020

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

Reported

Results

Adj.(9)

Adjusted

Results

Reported

Results

Adj.(9)

Adjusted

Results

Reported

Results

Adj.(9)

Adjusted

Results

Reported

Results

Adj.(9)

Adjusted

Results

Selected income statement data:























Net interest income

$

5,555

$

(18)

$

5,537

$

5,460

—

$

5,460

$

6,025

—

$

6,025

$

17,040

$

(18)

$

17,022

Non-interest income

1,826

(18)

1,808

1,096

—

1,096

1,224

—

1,224

4,146

(18)

4,128

Total net revenue

7,381

(36)

7,345

6,556

—

6,556

7,249

—

7,249

21,186

(36)

21,150

Provision for credit losses

331

—

331

4,246

—

4,246

5,423

—

5,423

10,000

—

10,000

Non-interest expense

3,548

(46)

3,502

3,770

$

(276)

3,494

3,729

$

(49)

3,680

11,047

(371)

10,676

Income (loss) from continuing operations before

income taxes

3,502

10

3,512

(1,460)

276

(1,184)

(1,903)

49

(1,854)

139

335

474

Income tax provision (benefit)

1,096

12

1,108

(543)

3

(540)

(563)

12

(551)

(10)

27

17

Income (loss) from continuing operations, net of tax

2,406

(2)

2,404

(917)

273

(644)

(1,340)

37

(1,303)

149

308

457

Income (loss) from discontinued operations, net of tax

—

—

—

(1)

—

(1)

—

—

—

(1)

—

(1)

Net income (loss)

2,406

(2)

2,404

(918)

273

(645)

(1,340)

37

(1,303)

148

308

456

Dividends and undistributed earnings allocated to

participating securities(10)

(20)

—

(20)

(1)

—

(1)

(3)

—

(3)

(5)

—

(5)

Preferred stock dividends

(67)

—

(67)

(90)

—

(90)

(55)

—

(55)

(212)

—

(212)

Issuance cost for redeemed preferred stock

—

—

—

—

—

—

(22)

—

(22)

(22)

—

(22)

Net income (loss) available to common stockholders

$

2,319

$

(2)

$

2,317

$

(1,009)

$

273

$

(736)

$

(1,420)

$

37

$

(1,383)

$

(91)

$

308

$

217

Selected performance metrics:























Diluted EPS(10)

$

5.06

$

(0.01)

$

5.05

$

(2.21)

$

0.60

$

(1.61)

$

(3.10)

$

0.08

$

(3.02)

$

(0.20)

$

0.67

$

0.47

Efficiency ratio

48.07

%

(39)

bps

47.68

%

57.50

%

(421)

bps

53.29

%

51.44

%

(67)

bps

50.77

%

52.14

%

(166)

bps

50.48

%

Operating efficiency ratio

44.24

(41)

43.83

53.34

(421)

49.13

44.67

(68)

43.99

47.20

(167)

45.53







































2019

2019

2019

Nine Months Ended


Q3

Q2

Q1

September 30, 2019

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

Reported

Results

Adj.(9)

Adjusted

Results

Reported

Results

Adj.(9)

Adjusted

Results

Reported

Results

Adj.(9)

Adjusted

Results

Reported

Results

Adj.(9)

Adjusted

Results

Selected income statement data:























Net interest income

$

5,737

$

67

$

5,804

$

5,746

—

$

5,746

$

5,791

—

$

5,791

$

17,274

$

67

$

17,341

Non-interest income

1,222

73

1,295

1,378

$

1

1,379

1,292

—

1,292

3,892

74

3,966

Total net revenue

6,959

140

7,099

7,124

1

7,125

7,083

—

7,083

21,166

141

21,307

Provision for credit losses

1,383

—

1,383

1,342

—

1,342

1,693

—

1,693

4,418

—

4,418

Non-interest expense

3,872

(178)

3,694

3,779

(81)

3,698

3,671

$

(25)

3,646

11,322

(284)

11,038

Income from continuing operations before income

taxes

1,704

318

2,022

2,003

82

2,085

1,719

25

1,744

5,426

425

5,851

Income tax provision

375

21

396

387

19

406

309

6

315

1,071

46

1,117

Income from continuing operations, net of tax

1,329

297

1,626

1,616

63

1,679

1,410

19

1,429

4,355

379

4,734

Income from discontinued operations, net of tax

4

—

4

9

—

9

2

—

2

15

—

15

Net income

1,333

297

1,630

1,625

63

1,688

1,412

19

1,431

4,370

379

4,749

Dividends and undistributed earnings allocated to

participating securities(10)

(10)

(2)

(12)

(12)

(1)

(13)

(12)

—

(12)

(34)

(3)

(37)

Preferred stock dividends

(53)

—

(53)

(80)

—

(80)

(52)

—

(52)

(185)

—

(185)

Net income available to common stockholders

$

1,270

$

295

$

1,565

$

1,533

$

62

$

1,595

$

1,348

$

19

$

1,367

$

4,151

$

376

$

4,527

Selected performance metrics:























Diluted EPS(10)

$

2.69

$

0.63

$

3.32

$

3.24

$

0.13

$

3.37

$

2.86

$

0.04

$

2.90

$

8.79

$

0.80

$

9.59

Efficiency ratio

55.64

%

(360)

bps

52.04

%

53.05

%

(115)

bps

51.90

%

51.83

%

(35)

bps

51.48

%

53.49

%

(169)

bps

51.80

%

Operating efficiency ratio

48.44

(346)

44.98

45.38

(114)

44.24

44.53

(35)

44.18

46.10

(164)

44.46

 


 

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of TCE, tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. We consider these metrics to be key financial performance measures that management uses in assessing capital adequacy and the level of returns generated. While our non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.



2020

2020

2020

2019

2019

(Dollars in millions)

Q3

Q2

Q1

Q4

Q3

Tangible Common Equity (Period-End)









Stockholders' equity

$

58,424

$

56,045

$

56,830

$

58,011

$

58,235

Goodwill and intangible assets(11)

(14,825)

(14,869)

(14,888)

(14,932)

(14,940)

Noncumulative perpetual preferred stock

(5,330)

(5,209)

(5,209)

(4,853)

(5,823)

Tangible common equity

$

38,269

$

35,967

$

36,733

$

38,226

$

37,472

Tangible Common Equity (Average)









Stockholders' equity

$

57,223

$

57,623

$

58,568

$

58,148

$

57,245

Goodwill and intangible assets(11)

(14,867)

(14,880)

(14,930)

(14,967)

(14,908)

Noncumulative perpetual preferred stock

(5,228)

(5,209)

(5,382)

(5,506)

(4,678)

Tangible common equity

$

37,128

$

37,534

$

38,256

$

37,675

$

37,659

Tangible Assets (Period-End)









Total assets

$

421,883

$

421,296

$

396,878

$

390,365

$

378,810

Goodwill and intangible assets(11)

(14,825)

(14,869)

(14,888)

(14,932)

(14,940)

Tangible assets

$

407,058

$

406,427

$

381,990

$

375,433

$

363,870

Tangible Assets (Average)









Total assets

$

422,854

$

411,075

$

390,380

$

383,162

$

374,905

Goodwill and intangible assets(11)

(14,867)

(14,880)

(14,930)

(14,967)

(14,908)

Tangible assets

$

407,987

$

396,195

$

375,450

$

368,195

$

359,997

__________

(1)        Regulatory capital metrics and capital ratios as of September 30, 2020 are preliminary and therefore subject to change.

(2)        In the first quarter of 2020, we elected to exclude from our regulatory capital ratios certain components of AOCI as permitted under the Tailoring Rules. As such, we revised our presentation herein to only include 
          those components of AOCI that impact our regulatory capital ratios.

(3)        Total capital equals the sum of Tier 1 capital and Tier 2 capital.

(4)        Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible 
          assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.

(5)        Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.

(6)        Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.

(7)        Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.

(8)        TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.

(9)        The adjustments for the following periods consist of:



2020

2020

2020

Nine Months Ended

2019

2019

2019

Nine Months Ended

(Dollars in millions)

Q3

Q2

Q1

September 30, 2020

Q3

Q2

Q1

September 30, 2019

Legal reserve builds

$

40

$

265

$

45

$

350

—

—

—

—

U.K. Payment Protection Insurance customer
refund reserve ("U.K. PPI Reserve")

(36)

—

—

(36)

$

212

—

—

$

212

Cybersecurity Incident expenses, net of
insurance

6

11

4

21

22

—

—

22

Walmart launch and related integration expenses

—

—

—

—

84

$

54

$

25

163

Restructuring charges

—

—

—

—

—

28

—

28

Total

10

276

49

335

318

82

25

425

Income tax provision

12

3

12

27

21

19

6

46

Net income (loss)

$

(2)

$

273

$

37

$

308

$

297

$

63

$

19

$

379

(10)       Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the 
           year-to-date total.

(11)       Includes impact of related deferred taxes.

 

 

Cision View original content:http://www.prnewswire.com/news-releases/capital-one-reports-third-quarter-2020-net-income-of-2-4-billion-or-5-06-per-share-301158364.html

SOURCE Capital One Financial Corporation

Investor Relations: Jeff Norris, jeff.norris@capitalone.com; Danielle Dietz, danielle.dietz@capitalone.com; Media Relations: Sie Soheili, sie.soheili@capitalone.com; Tatiana Stead, tatiana.stead@capitalone.com