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Capital One Reports Third Quarter Net Income of $425.6 million, or $0.94 per share

October 22, 2009 at 4:09 PM EDT

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Income from continuing operations of $1.03 per share

MCLEAN, Va., Oct. 22 /PRNewswire-FirstCall/ --

Third Quarter Highlights

    --  Managed revenue increased $482.0 million, or 11.6 percent, relative to
        the second quarter.
    --  Provision expense increased $296.4 million, due to an anticipated
        increase in charge-offs as well as a modest allowance build of $31.7
        million in the third quarter.
    --  Allowance as a percentage of reported loans rose to 5.08 percent in the
        third quarter of 2009 from 4.84 percent in the second quarter of 2009.

    --  Tangible common equity to tangible managed assets, or "TCE ratio,"
        increased to 6.2 percent, up 52 basis points from the June 30, 2009
        ratio of 5.7 percent, and Tier 1 capital rose to 11.8 percent.

Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2009 of $425.6 million, or $0.94 per common share (diluted), versus second quarter 2009 net income of $224.2 million, or $0.53 per common share (diluted), before taking into account the impact from the repayment of the government's TARP preferred share investment. In the third quarter of 2008, the company reported $374.1 million, or $1.00 per common share (diluted).

"We've worked for years to position our company to be resilient, and our third quarter results demonstrate that resiliency in the midst of the most challenging economic cycle we've seen in generations," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "We are successfully weathering the storm, but the storm is not over. Therefore, we will continue to take the decisive actions necessary to place our company in the best position to navigate the downturn and drive shareholder value over the cycle."

Total Company Results

    --  Total managed revenue in the third quarter of 2009 was $4.6 billion, an
        increase of $482.0 million, or 11.6 percent, relative to the second
        quarter. Net interest income increased $298.3 million in the third
        quarter, or 10.1 percent, while non-interest income increased $183.7
        million, or 15.4 percent. The increase in revenue was driven primarily
        by higher yields in Domestic Card, lower funding costs, a sequential
        improvement in valuation adjustments to retained securitization
        interests, and opportunistic moves in the investment portfolio that
        resulted in gains from securities sales.
    --  Provision expense increased $296.4 million quarter over quarter, due to
        an anticipated increase in charge-offs as well as a $31.7 million
        allowance build in the third quarter compared to a second quarter
        release of $166.2 million. The total company allowance build was a
        result of a significant increase in the Commercial Banking allowance
        partially offset by releases in both the Credit Card and Consumer
        Banking allowances.
        --  Credit Card total allowance release of $78 million
            --  Domestic credit card release of $89 million
            --  International credit card build of $11 million
        --  Consumer Banking total allowance release of $124 million
            --  Auto release of $190 million
            --  Other Consumer Banking build of $66 million
        --  Commercial Banking total allowance build of $256 million
    --  Allowance as a percentage of reported loans rose to 5.08 percent in the
        third quarter of 2009 from 4.84 percent in the second quarter of 2009
        and from 3.59 percent from the third quarter of 2008, excluding the
        effect of Chevy Chase Bank.
    --  Average deposits decreased by $3.7 billion in the quarter to $115.9
        billion, or 3.1 percent, over the prior quarter.
    --  The cost of managed interest-bearing liabilities decreased from 2.40
        percent in the second quarter to 2.28 percent in the third quarter as
        the company benefited from lower interest rates and continued to replace
        the run off of higher cost funding with lower cost Consumer Banking and
        Commercial Banking deposits.  The total cost of funds declined 12 basis
        points to 2.28 percent in the third quarter.
    --  Average assets held for investment decreased $4.9 billion in the
        quarter, driven primarily by reductions in loans outstanding.
    --  Non-interest expenses declined $119.3 million in the third quarter of
        2009, driven primarily by the absence of the FDIC special assessment
        that impacted the second quarter as well as modestly lower marketing and
        restructuring expenses. The managed efficiency ratio decreased to 38.36
        percent in the third quarter of 2009 from 45.28 percent in the second
        quarter of 2009, driven largely by increasing revenue.

    --  The company's TCE ratio increased to 6.2 percent on September 30, 2009,
        an improvement of 52 basis points from the second quarter level of 5.7
        percent. The Tier 1 risk-based capital ratio of an estimated 11.8
        percent, increased 2.1 percentage points, and continues to be well above
        the regulatory well-capitalized minimum.

"Despite continued credit pressures, Capital One posted solid growth in both revenues and bottom-line profits in the third quarter," said Gary L. Perlin, Capital One's Chief Financial Officer. "Our strong balance sheet is supported by healthy reserve levels and a tangible common equity ratio that grew to 6.2 percent, which positions the company against downside risk while enabling future growth."

Segment Results

During the third quarter of 2009, the company realigned its business segment reporting structure to better reflect the manner in which the performance of the company's operations is evaluated. The company now reports the results of its business through three operating segments: Credit Card, Commercial Banking, and Consumer Banking.

Credit Card Highlights

For details on the sub-segments' results, please refer to the Financial Supplement.

The Credit Card segment reported net income in the third quarter of $291.7 million, an increase of $119.1 million, or 69.0 percent, from second quarter net income $172.6 million. Improving revenue margin in the Domestic Credit Card sub-segment drove the improved profitability despite higher provision expense.

    --  Revenues improved $296.4 million, or 11.0 percent, to $3.0 billion in
        the third quarter of 2009.
        --  Domestic Card - revenues up $271.6 million, or 11.4 percent from the
            second quarter
        --  International Card - revenues up $24.7 million, or 7.9 percent from
            the second quarter
    --  Revenue margin in the Domestic Card sub-segment improved to
        approximately 16.8 percent in the third quarter, up from 14.5 percent in
        the second quarter. The company expects Domestic Card revenue margin to
        remain above 16 percent in the fourth quarter. In 2010, the company
        expects Domestic Card quarterly revenue margin to moderate modestly, but
        remain close to its fourth quarter 2009 level.
    --  Period-end loans in the Credit Card segment were $70.4 billion, a
        decline of $3.0 billion, or 4.1 percent, from the second quarter of
        2009.
        --  Domestic Card - loans declined $2.9 billion, or 4.4 percent from the
            second quarter. The continuing run-off of nationally-originated
            Installment Loans drove approximately 40 percent of the decline,
            although they comprise only 13 percent of the Domestic Card loan
            balances.
        --  International Card - loans declined $0.2 billion or 1.9 percent from
            the second quarter
    --  The managed net charge-off rate for the Credit Card segment increased 35
        basis points to 9.59 percent in the third quarter of 2009 from 9.24
        percent in the second quarter of 2009, primarily as a result of the
        continuing difficult credit environment.
        --  Domestic Card - net charge-offs increased to 9.64 percent in the
            third quarter from 9.23 percent in the second quarter. The increase
            was driven by declining balances, the implementation of the OCC
            minimum payment policies, and the absence of the one-time second
            quarter benefit from a change in bankruptcy processing partially
            offset by favorable seasonal trends and a modest improvement in the
            underlying charge-off rate.
        --  International Card - net charge-offs decreased to 9.19 percent in
            the third quarter from 9.32 percent in the second quarter.
    --  The delinquency rate for the Credit Card segment increased 54 basis
        points to 5.53 percent in the third quarter of 2009 from 4.99 percent in
        the second quarter of 2009.
        --  Domestic Card - delinquencies increased to 5.38 percent in the third
            quarter from 4.77 percent in the second quarter, reflecting seasonal
            patterns as well as revenue enhancements taken earlier in 2009.

        --  International Card - delinquencies remained basically flat,
            decreasing to 6.63 percent in the third quarter from 6.69 percent in
            the second quarter.

Commercial Banking highlights

For more lending information and statistics on the segment results, please refer to the Financial Supplement.

The Commercial Banking segment consists of commercial and multi-family real-estate, middle market lending, and specialty lending, which are summarized under Commercial Lending, and small ticket commercial real estate. The total segment reported a net loss of $130.2 million in the third quarter, down from a profit of $29.8 million in the prior quarter, driven by a $252.6 million increase in the loss provision relative to the second quarter. The provision expense increased primarily as a result of a large allowance build in anticipation of future credit losses. The two most important drivers of the allowance build were the significant decline in collateral values, particularly in the company's construction portfolio, and recognizing the effects of higher charge-offs.

    --  Commercial Banking revenue increased $16.8 million, or 5.2 percent, to
        $340.8 million in the third quarter of 2009, while non-interest expenses
        increased $10.5 million, or 6.7 percent, to $166.0 million.
    --  Average loans declined $391.6 million, or 1.3 percent, to $30.1 billion
        during the third quarter from $30.5 billion during the second quarter of
        2009.
        --  Commercial Lending - declined $320.5 million, or 1.1 percent, to
            $27.6 billion
        --  Small ticket commercial real estate - declined $71.1 million, or 2.8
            percent, to $2.5 billion
    --  Average deposits increased $739.9 million, or 4.3 percent, to $17.8
        billion during the third quarter from $17.0 billion during the second
        quarter of 2009, while the deposit interest expense was effectively
        stable at 75 basis points.
    --  The managed net charge-off rate for Commercial Banking increased 53
        basis points in the third quarter of 2009 to 1.42 percent from 0.89
        percent in the second quarter of 2009.
        --  Commercial Lending - 1.08 percent, an increase of 28 basis points
            over the second quarter of 2009

        --  Small ticket commercial real estate - 5.19 percent, an increase of
            333 basis points over the second quarter of 2009
    --  Non-performing loans as a percentage of loans held for investment for
        Commercial Banking was 2.64 percent, an increase of 32 basis points from
        2.32 percent at the end of the second quarter of 2009.

Consumer Banking highlights

For more lending information and statistics on the segment's results, please refer to the Financial Supplement.

Consumer Banking reported net income for the third quarter of $184.6 million. Revenue increased $56.5 million in the quarter, with improvements across the Consumer Banking segment. Provision expense declined $46.0 million, driven by an allowance release in the auto finance business. Non-interest expense declined $43.4 million.

    --  Average loans declined $1.7 billion, or 4.0 percent, to $41.3 billion
        during the third quarter. Auto finance loans declined as a result of the
        company's earlier efforts to retrench and reposition the auto finance
        business.  Mortgage loans fell as the company continued to experience
        expected run off in the portfolio.
        --  Auto - declined $667.3 million, or 3.3 percent, to $19.6 billion
        --  Mortgages - declined $857.3 million, or 5.0 percent, to $16.2
            billion
        --  Retail banking - declined $211.4 million, or 3.7 percent, to $5.5
            billion
    --  Average deposits in the Consumer Banking segment declined $1.0 billion,
        or 1.4 percent, to $73.3 billion during the third quarter from $74.3
        billion during the second quarter of 2009. Improved deposit mix and
        favorable interest rates drove an 18 basis point improvement in the
        deposit interest expense rate in the third quarter.
    --  The managed net charge-off rate for Consumer Banking increased 46 basis
        points in the third quarter of 2009 to 2.67 percent from 2.21 percent in
        the second quarter of 2009.
        --  Auto - 4.38 percent, an increase of 73 basis points over the second
            quarter
        --  Mortgages - 0.68 percent, an increase of 26 basis points from the
            second quarter

        --  Retail Banking -  2.44 percent, an increase of 3 basis points from
            the second quarter

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

Forward looking statements

The company cautions that its current expectations in this release, in the presentation slides available on the company's website and in its Form 8-K dated October 22, 2009, including those regarding Domestic Card revenue margin in the fourth quarter of 2009 and in 2010; and the company's plans, objectives, expectations, and intentions, are forward-looking statements. Actual results could differ materially from current expectations due to a number of factors, including: general economic conditions in the U.S., the UK, or the company's local markets, including conditions affecting consumer income, confidence, spending, and savings which may affect consumer bankruptcies, defaults, charge-offs, deposit activity, and interest rates; changes in the labor and employment market; changes in the credit environment; the company's ability to execute on its strategic and operational plans; competition from providers of products and services that compete with the company's businesses; increases or decreases in the company's aggregate accounts and balances, or the growth rate and/or composition thereof; changes in the reputation of or expectations regarding the financial services industry or the company with respect to practices, products or financial condition; financial, legal, regulatory, tax or accounting changes or actions, including with respect to any litigation matter involving the company; and the success of the company's marketing efforts in attracting or retaining customers. A discussion of these and other factors can be found in the company's annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, the company's reports on Form 10-K for the fiscal year ended December 31, 2008 and reports on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009.

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 $114.5 billion in deposits and $209.7 billion in total managed assets outstanding as of September 30, 2009. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia, 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.

NOTE: Third quarter 2009 financial results, SEC Filings, and earnings conference call slides are accessible on Capital One's home page (www.capitalone.com). Choose "Investors" on the bottom of the home page to view and download the earnings press release, slides, and other financial information. Additionally, a podcast and webcast of today's 5:00 pm (ET) earnings conference call is accessible through the same link.



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


    (in millions, except per      2009           2009                 2008
     share data and as noted)      Q3             Q2                   Q3
    -------------------------      --             --                   --
    Earnings (Reported Basis)
    Net Interest Income         $2,050.7       $1,946.6             $1,806.6
    Non-Interest Income (2)      1,552.4        1,231.7(5)           1,696.9
                                 -------        -------              -------
    Total Revenue (1)            3,603.1        3,178.3              3,503.5
    Provision for Loan Losses    1,173.2          934.0              1,093.9
    Marketing Expenses             103.7          134.0                267.4
    Restructuring Expenses          26.4           43.4                 15.3
    Operating Expenses (3)       1,672.4        1,744.4(8)           1,527.5
                                 -------        -------              -------
    Income (Loss) Before Taxes     627.4          322.5                599.4
    Tax Rate                        25.2%          28.6%                35.6%
    Income (Loss) From
     Continuing Operations,
     Net of Tax                   $469.2         $230.2               $385.8
    Loss From Discontinued
     Operations, Net of Tax        (43.6)          (6.0)               (11.7)
                                   -----           ----                -----
    Net Income (Loss)             $425.6         $224.2               $374.1
                                  ------         ------               ------
    Net Income (Loss)
     Available to Common
     Shareholders (F)             $425.6        $(275.5)(10)          $374.1
    --------------------          ------        -------               ------
    Common Share Statistics
    Basic EPS: (G)
       Income (Loss) From
        Continuing Operations      $1.04         $(0.64)               $1.03
       Loss From Discontinued
        Operations                $(0.09)        $(0.01)              $(0.03)
                                  ------         ------               ------
       Net Income (Loss)           $0.95         $(0.65)               $1.00
    Diluted EPS: (G)
       Income (Loss) From
        Continuing Operations      $1.03         $(0.64)               $1.03
       Loss From Discontinued
        Operations                $(0.09)        $(0.01)              $(0.03)
                                  ------         ------               ------
       Net Income (Loss)           $0.94         $(0.65)               $1.00
    Dividends Per Common Share     $0.05          $0.05               $0.375
    Tangible Book Value Per
     Common Share (period end)    $27.02         $25.34               $31.63
    Stock Price Per Common
     Share (period end)           $35.73         $21.88               $51.00
    Total Market Capitalization
     (period end)              $16,064.2       $9,826.3            $19,833.9
    Common Shares Outstanding
     (period end)                  449.6          449.1                388.9
    Shares Used to Compute
     Basic EPS                     449.4          421.9                372.9
    Shares Used to Compute
     Diluted EPS                   453.7          421.9                374.3
    ----------------------         -----          -----                -----
    Reported Balance Sheet
     Statistics (period average) (A)
    Average Loans Held for
     Investment                  $99,485       $105,278              $98,778
    Average Earning Assets      $145,410       $151,400             $133,277
    Average Assets              $173,348       $177,589             $156,958
    Average Interest Bearing
     Deposits                   $103,105       $107,040              $84,655
    Total Average Deposits      $115,883       $119,611              $95,328
    Average Equity               $25,999        $27,658(7),(9)       $25,046
    Return on Average Assets
     (ROA)                          1.08%          0.52%                0.98%
    Return on Average Equity
     (ROE)                          7.22%          3.33%                6.16%
    ------------------------        ----           ----                 ----
    Reported Balance Sheet
     Statistics (period end) (A)
    Loans Held for Investment    $96,783       $101,074              $97,965
    Total Assets                $168,472       $171,865             $154,783
    Interest Bearing Deposits   $101,769       $104,121              $88,248
    Total Deposits              $114,503       $116,724              $98,913
    --------------              --------       --------              -------
    Performance Statistics
     (Reported) (A)
    Net Interest Income
     Growth (annualized)              21%            36%                  18%
    Non Interest Income
     Growth (annualized)             104%            52%                  18%
    Revenue Growth
     (annualized)                     53%            42%                  18%
    Net Interest Margin             5.64%          5.14%                5.42%
    Revenue Margin                  9.91%          8.40%               10.51%
    Risk Adjusted Margin (B)        6.81%          5.44%                7.90%
    Non Interest Expense as a
     % of Average Loans Held
     for Investment
     (annualized)                   7.25%          7.30%                7.33%
    Efficiency Ratio (C)           49.29%         59.10%               51.23%
    --------------------           -----          -----                -----
    Asset Quality Statistics
     (Reported) (A)
    Allowance                     $4,513         $4,482               $3,520
    Allowance as a % of
     Reported Loans Held for
     Investment                     4.66%(4)       4.43%(4)             3.59%
    Net Charge-Offs               $1,127(4)      $1,119(4)              $872
    Net Charge-Off Rate             4.53%(4)       4.25%(4)             3.53%
    30+ day performing
     delinquency rate               4.11%(4)       3.71%(4)             3.85%
    ---------------------------     ----           ----                 ----
    Full-time equivalent
     employees (in thousands)       26.0           26.6                 23.5
    -------------------------       ----           ----                 ----


                        CAPITAL ONE FINANCIAL CORPORATION (COF)
                           FINANCIAL & STATISTICAL SUMMARY
                                   MANAGED BASIS (*)
                                        2009           2009         2008
    (in millions)                        Q3             Q2           Q3
    -------------                        --             --           --
    Earnings (Managed Basis)
    Net Interest Income               $3,257.5       $2,959.2     $2,889.3
    Non-Interest Income (2)            1,372.7        1,189.0(5)   1,325.6
                                       -------        -------      -------
    Total Revenue (1)                  4,630.2        4,148.2      4,214.9
    Provision for Loan Losses          2,200.3        1,903.9      1,805.3
    Marketing Expenses                   103.7          134.0        267.4
    Restructuring Expenses                26.4           43.4         15.3
    Operating Expenses (3)             1,672.4        1,744.4(8)   1,527.5
                                       -------        -------      -------
    Income (Loss) Before Taxes           627.4          322.5        599.4
    Tax Rate                              25.2%          28.6%        35.6%
    Income (Loss) From Continuing
     Operations, Net of Tax             $469.2         $230.2       $385.8
    Loss From Discontinued
     Operations, Net of Tax              (43.6)          (6.0)       (11.7)
                                         -----           ----        -----
    Net Income (Loss)                   $425.6         $224.2       $374.1
                                        ------         ------       ------
    Net Income (Loss) Available to
     Common Shareholders (F)            $425.6        $(275.5)(10)  $374.1
    ------------------------------      ------        -------       ------
    Managed Balance Sheet Statistics
     (period average) (A)
    Average Loans Held for Investment $143,671       $148,609     $147,247
    Average Earning Assets            $186,005       $191,804     $179,753
    Average Assets                    $214,575       $218,325     $204,694
    Return on Average Assets (ROA)        0.87%          0.42%        0.75%
    ------------------------------        ----           ----         ----
    Managed Balance Sheet Statistics
     (period end) (A)
    Loans Held for Investment         $141,059       $146,251     $147,346
    Total Assets                      $209,723       $214,095     $203,452
    Tangible Assets(D)                $195,647       $200,110     $190,141
    Tangible Common Equity (E)         $12,146        $11,379      $12,301
    Tangible Common Equity to
     Tangible Assets Ratio (H)            6.21%          5.69%(6)     6.47%(6)
    % Off-Balance Sheet
     Securitizations                        31%            31%          34%
    --------------------                    --             --           --
    Performance Statistics
     (Managed) (A)
    Net Interest Income Growth
     (annualized)                           40%            31%          15%
    Non Interest Income Growth
     (annualized)                           62%            82%           7%
    Revenue Growth (annualized)             46%            45%          12%
    Net Interest Margin                   7.01%          6.17%        6.43%
    Revenue Margin                        9.96%          8.65%        9.38%
    Risk Adjusted Margin (B)              5.32%          4.30%        5.86%
    Non Interest Expense as a % of
     Average Loans Held for
     Investment (annualized)              5.02%          5.17%        4.92%
    Efficiency Ratio (C)                 38.36%         45.28%       42.58%
    --------------------                 -----          -----        -----
    Asset Quality Statistics
     (Managed) (A)
    Net Charge-Offs                     $2,155(4)       $2,087(4)   $1,583
    Net Charge-Off Rate                   6.00%(4)        5.62%(4)    4.30%
    30+ day performing
     delinquency rate                     4.55%(4)        4.09%(4)    3.99%
    ----------------------------          ----           ----         ----


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


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

    (1) In accordance with the Company's finance charge and fee revenue
        recognition policy, the amounts billed to customers but not recognized
        as revenue were as follows: Q3 2009 - $517.0 million, Q2 2009 - $571.9
        million and Q3 2008 - $445.7 million.

    (2) Includes the impact from the change in fair value of retained
        interests, including the interest-only strips, of an increase of $37.3
        million in Q3 2009, and a decrease of $114.5 million in Q2 2009 and
        $73.5 million in Q3 2008.

    (3) Includes core deposit intangible amortization expense of $55.5 million
        in Q3 2009, $57.4 million in Q2 2009 and $47.3 million in Q3 2008
        and integration costs of $10.7 million in Q3 2009, $8.8 million in Q2
        2009 and $10.3 million in Q3 2008.

    (4) Allowance as a % of Reported Loans Held for Investment, Net Charge-off
        Rate and 30+ Days Performing Delinquency Rate on both a Reported and
        Managed basis include period end loans held for investment and average
        loans held for investment acquired as part of the Chevy Chase Bank,
        FSB (CCB) acquisition. The period end and average loans held for
        investment and metrics excluding such loans are as follows. The net
        charge-off dollars were unchanged.

                                                  Q3 2009   Q2 2009
                                                  -------   -------
              CCB period end acquired loan
               portfolio (in millions)           $8,002.3  $8,552.9
              CCB average acquired loan
               portfolio (in millions)           $8,525.2  $8,931.9
              Allowance as a % of reported
               loans held for investment             5.08%     4.84%
              Net charge-off rate (Reported)         4.96%     4.65%
              Net charge-off rate (Managed)          6.38%     5.98%
              30+ day performing delinquency
               rate(Reported)                        4.48%     4.05%
              30+ day performing delinquency
               rate(Managed)                         4.82%     4.35%

    (5)  In Q2 2009 the Company elected to convert and sell 404,508 shares of
         MasterCard class B common stock and recognized a gain of $65.5
         Million in non-interest income from the transaction.

    (6)  The Q2 2009 TCE ratio reflects the issuance of 56,000,000 common
         shares on May 14, 2009 at $27.75 per share. The Q3 2008 TCE ratio
         reflects the issuance of 15,527,000 shares on September 30, 2008 at
         $49 per share.

    (7)  Average equity includes the impact of the Company's participation in
         the U.S. Treasury's Capital Purchase Program. On June 17, 2009, the
         Company repurchased all 3,555,199 preferred shares issued in Q4 2008
         for approximately $3.57 billion, including accrued dividends. The
         warrants to purchase common shares of $491.5 million remain
         outstanding and are included in paid-in capital on the balance sheet.

    (8)  Includes the FDIC Special Assessment of $80.5 million.

    (9)  Average equity includes the impact of the issuance of 56,000,000
         common shares on May 14, 2009 at $27.75 per share.

    (10) The calculation of net income (loss) available to common shareholders
         includes the impact from dividends on preferred shares of $38.0
         million and from the accretion of the discount on preferred shares of
         $461.7 million. With the repayment of the preferred shares to the
         U.S. Treasury, the remaining accretion was accelerated to Q2 2009 and
         treated as a dividend.

           STATISTICS / METRIC DEFINITIONS
           -------------------------------

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

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

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

    (D)  Tangible assets include managed assets less intangible assets and is
         considered a non-GAAP measure.  See accompanying schedule
         Reconciliation to GAAP Financial Measures for a reconciliation of
         tangible assets.

    (E)  Includes stockholders' equity less preferred shares less intangible
         assets and related deferred tax liabilities.  Tangible Common Equity
         on a reported and managed basis is the same and is considered a non-
         GAAP measure.  See accompanying schedule Reconciliation To GAAP
         Financial Measures for a reconciliation of tangible common equity.

    (F)  Net income (loss) available to common shareholders equals net income
         (loss) less dividends on preferred shares.

    (G)  Earnings per share is based on net income (loss) available to common
         shareholders.

    (H)  Tangible Common Equity to Tangible Assets Ratio ("TCE Ratio") is
         considered a non-GAAP measure. See accompanying schedule
         Reconciliation To GAAP Financial Measures for a reconciliation of the
         TCE Ratio.



    CAPITAL ONE FINANCIAL CORPORATION
    Reconciliation to GAAP Financial Measures
    For the Three Months Ended September 30, 2009
    (dollars in thousands)(unaudited)

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

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

                           Total Reported  Adjustments(1)    Total Managed(2)
    ---------------------- --------------  --------------    ----------------
    Income Statement Measures(3)
    Net interest income        $2,050,680      $1,206,867        $3,257,547
    Non-interest income         1,552,380        (179,700)        1,372,680
                                ---------        --------         ---------
    Total revenue               3,603,060       1,027,167         4,630,227
    Provision for loan
     and lease losses           1,173,165       1,027,167         2,200,332
    Net charge-offs            $1,127,465      $1,027,167        $2,154,632
    ---------------            ----------      ----------        ----------
    Balance Sheet Measures
    Loans held for
     investment               $96,783,165     $44,275,350      $141,058,515
    Total assets             $168,503,921     $41,250,924      $209,754,845
    Total liabilities        $142,281,769     $41,250,924      $183,532,693
    Average loans held
     for investment           $99,484,847     $44,185,873      $143,670,720
    Average earning assets   $145,425,656     $40,594,656      $186,020,312
    Average total assets     $173,389,149     $41,226,895      $214,616,044
    Average total
     liabilities             $147,390,307     $41,226,895      $188,617,202
    Delinquencies              $3,982,504      $2,434,461        $6,416,965
    -------------              ----------      ----------        ----------

     The table below presents a reconciliation of tangible common equity and
     tangible assets, which are the components used to calculate the
     tangible common equity "TCE" ratio.  The Company believes the TCE ratio
     is an important financial measure of capital strength to our investors
     and readers even though it is considered to be a non-GAAP measure.


    (dollars in                     2009            2009              2008
     millions)(unaudited)            Q3              Q2               Q3
                                     --              --               --

    Equity                        $26,222         $25,326           $25,612
    Less: preferred stock               -              38                 -
    Less: intangible  assets (4)  (14,076)        (13,985)          (13,311)
                                  -------         -------           -------
    Tangible common equity        $12,146         $11,379           $12,301
                                  =======         =======           =======

    Total assets                  209,754         214,141           203,472
    Less: discontinued ops assets     (31)            (46)              (20)
                                      ---             ---               ---
    Total assets-continuing ops   209,723         214,095           203,452
    Less: intangible assets (4)   (14,076)        (13,985)          (13,311)
                                  -------         -------           -------
    Tangible assets              $195,647        $200,110          $190,141
                                 ========        ========          ========

    TCE ratio                        6.21            5.69              6.47

    (1) Income statement adjustments reclassify the net of finance charges
    of $1,317.2 million, past-due fees of $198.3 million, other interest
    income of $(51.0) million and interest expense of $257.6 million; and
    net charge-offs of $1,027.2 million from non-interest income to net
    interest income and provision for loan and lease losses, respectively.

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

    (3) Based on continuing operations.

    (4) Includes impact from related deferred taxes.



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

                                   As of         As of         As of
                               September 30     June 30     September 30
                                   2009          2009          2008
                                   ----          ----          ----
    Assets:
    Cash and due from banks      $2,719,100    $3,001,944    $3,511,558
    Federal funds sold and
     resale agreements              544,793       603,564     1,435,521
    Interest-bearing deposits
     at other banks                 863,310     1,166,419       673,662
                                    -------     ---------       -------
      Cash and cash equivalents   4,127,203     4,771,927     5,620,741
    Securities available for
     sale                        37,693,001    37,667,165    26,969,471
    Securities held to maturity      83,608        87,545             -
    Mortgage loans held for
     sale                           141,158       319,975        98,900
    Loans held for investment    96,783,165   101,073,629    97,965,351
      Less:  Allowance for
       loan and lease losses     (4,513,493)   (4,481,827)   (3,519,610)
                                 ----------    ----------    ----------
    Net loans held for
     investment(1)               92,269,672    96,591,802    94,445,741
    Accounts receivable from
     securitizations              6,985,200     5,219,968     4,980,823
    Premises and equipment, net   2,773,173     2,824,785     2,305,286
    Interest receivable             947,738       951,201       750,717
    Goodwill(1)                  13,524,978    13,381,056    12,815,642
    Other(1)                      9,958,190    10,095,883     6,815,792
                                  ---------    ----------     ---------
      Total assets             $168,503,921  $171,911,307  $154,803,113
                               ============  ============  ============


    Liabilities:
    Non-interest-bearing
     deposits                   $12,734,589   $12,603,548   $10,665,286
    Interest-bearing deposits   101,768,522   104,120,642    88,247,688
    Senior and subordinated
     notes                        9,208,769    10,092,619     8,278,856
    Other borrowings             12,126,181    13,260,589    15,962,072
    Interest payable                582,969       659,784       508,091
    Other(1)                      5,860,739     5,848,464     5,529,580
                                  ---------     ---------     ---------
      Total liabilities         142,281,769   146,585,646   129,191,573

    Stockholders' Equity:
    Preferred stock                       -             -             -
    Common stock                      5,021         5,019         4,383
    Paid-in capital, net         18,928,719    18,891,333    16,752,078
    Retained earnings and
     cumulative other
     comprehensive income        10,460,779     9,598,606    12,020,490
      Less:  Treasury stock,
       at cost                   (3,172,367)   (3,169,297)   (3,165,411)
                                 ----------    ----------    ----------
      Total stockholders'
       equity                    26,222,152    25,325,661    25,611,540
                                 ----------    ----------    ----------
      Total liabilities and
       stockholders' equity    $168,503,921  $171,911,307  $154,803,113
                               ============  ============  ============

    (1) Balances at September 30, 2009 reflect adjustments made to the
    allocation of purchase price of the Chevy Chase Bank acquisition.
    The balances at June 30, 2009 have not been adjusted, however, if
    the adjustments had been made at June 30, 2009, net loans held for
    investment would have been $96,518.7 million (a decrease of $73.1
    million), goodwill would have been $13,527.9 million (an increase
    of $146.9 million), other assets would have been $10,045.2 million
    (an decrease of $50.7 million) and other liabilities would have
    been $5,822.8 million (a decrease of $25.7 million). The allocation
    of purchase price is still preliminary and will be finalized upon
    completion of the analysis of the fair values of Chevy Chase Bank's
    assets and liabilities.


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

                            Three Months Ended            Nine Months Ended
                    September      June    September   September    September
                       30           30        30           30          30
                      2009         2009      2008         2009        2008
    Interest Income:
    Loans held for
     investment,
     including past-due
     fees          $2,265,720  $2,233,808  $2,347,480  $6,689,859  $7,153,582
    Investment
     securities       398,835     412,845     317,268   1,206,460     856,093
    Other              83,195      67,982     107,048     214,294     333,503
                       ------      ------     -------     -------     -------
      Total interest
       income       2,747,750   2,714,635   2,771,796   8,110,613   8,343,178

    Interest Expense:
    Deposits          479,178     555,579     624,319   1,666,605   1,827,284
    Senior and
     subordinated
     notes             74,032      57,113      96,568     189,189     352,335
    Other borrowings  143,860     155,357     244,264     470,802     817,241
                      -------     -------     -------     -------     -------
      Total interest
       expense        697,070     768,049     965,151   2,326,596   2,996,860
                      -------     -------     -------   ---------   ---------
    Net interest
     income         2,050,680   1,946,586   1,806,645   5,784,017   5,346,318
    Provision for
     loan and
     lease losses   1,173,165     934,038   1,093,917   3,386,340   3,002,119
                    ---------     -------   ---------   ---------   ---------
    Net interest income
     after provision for
     loan and lease
     losses           877,515   1,012,548     712,728   2,397,677   2,344,199

    Non-Interest Income:
    Servicing and
     securitizations  720,698     362,416     875,718   1,536,751   2,793,520
    Service charges and
     other customer-
     related fees     496,404     491,763     576,762   1,494,292   1,675,032
    Mortgage servicing
     and other          8,656      13,163      39,183      45,199      90,990
    Interchange       122,585     126,702     148,076     389,378     432,708
    Net impairment
     losses recognized in
     earnings(1)      (11,173)    (10,031)          -     (21,567)          -
    Other             215,210     247,674      57,152     430,348     383,435
                      -------     -------      ------     -------     -------
      Total non-interest
       income       1,552,380   1,231,687   1,696,891   3,874,401   5,375,685

    Non-Interest Expense:
    Salaries and
     associate
     benefits         648,180     633,819     571,686   1,836,430   1,761,538
    Marketing         103,698     133,970     267,372     400,380     853,265
    Communications and
     data processing  175,575     194,578     176,720     569,257     559,065
    Supplies and
     equipment        122,777     128,483     126,781     370,160     389,649
    Occupancy         113,913     114,885      96,483     329,049     264,700
    Restructuring
     expense           26,357      43,374      15,306      87,358      81,625
    Other             611,978     672,647     555,858   1,876,692   1,542,242
                      -------     -------     -------   ---------   ---------
      Total non-interest
       expense      1,802,478   1,921,756   1,810,206   5,469,326   5,452,084
                    ---------   ---------   ---------   ---------   ---------
    Income from
     continuing
     operations before
     income taxes     627,417     322,479     599,413     802,752   2,267,800
    Income taxes      158,191      92,278     213,624     190,246     786,958
                      -------      ------     -------     -------     -------
    Income from
     continuing
     operations, net
     of tax           469,226     230,201     385,789     612,506   1,480,842
    Loss from
     discontinued
     operations, net
     of tax           (43,587)     (5,998)    (11,650)    (74,543)   (105,294)
                      -------      ------     -------     -------    --------
    Net income       $425,639    $224,203    $374,139    $537,963  $1,375,548
                     ========    ========    ========    ========  ==========
    Net income (loss)
     available to common
     shareholders    $425,639   $(275,515)   $374,139    $(25,945) $1,375,548
                     ========   =========    ========    ========  ==========



    Basic earnings per common share
    Income (loss) from
     continuing
     operations         $1.04      $(0.64)      $1.03       $0.12       $3.98
    Loss from
     discontinued
     operations         (0.09)      (0.01)      (0.03)      (0.18)      (0.28)
                         -----       -----       -----       -----       -----
    Net Income (loss)
     per common share   $0.95      $(0.65)      $1.00      $(0.06)      $3.70
                        =====      ======       =====      ======       =====

    Diluted earnings per
     common share
    Income (loss) from
     continuing
     operations         $1.03      $(0.64)      $1.03       $0.12       $3.96
    Loss from
     discontinued
     operations         (0.09)      (0.01)      (0.03)      (0.18)      (0.28)
                         -----       -----       -----       -----       -----
    Net Income (loss)
     per common share   $0.94      $(0.65)      $1.00      $(0.06)      $3.68
                        =====      ======       =====      ======       =====

    Dividends paid per
     common share       $0.05       $0.05      $0.375      $0.475      $1.125
                        =====       =====      ======      ======       =====


    (1) Total other-than-temporary impairment losses for the three and nine
    months ended September 30, 2009 are $131.0 million and $290.6 million,
    respectively. The portion of loss recognized in other comprehensive income
    (before taxes) for the three and nine months ended September 30, 2009 are
    $119.9 million and $269.0 million, respectively. Total other-than-
    temporary impairment losses for the three months ended June 30, 2009 is
    $159.2 million. The portion of loss recognized in other comprehensive
    income (before taxes) for the three months ended June 30, 2009 is $149.2
    million.


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

    Reported                                    Quarter Ended 09/30/09
                                                ----------------------
                                            Average     Income/    Yield/
                                            Balance     Expense     Rate
                                            -------     -------   --------
    Earning assets:

      Loans held for investment           $99,484,847 $2,265,720     9.11%
      Investment Securities (2)            37,376,895    398,835     4.27%
      Other                                 8,548,610     83,195     3.89%
                                            ---------     ------     ----
    Total earning assets                 $145,410,352 $2,747,750     7.56%
                                         ============ ==========

    Interest-bearing liabilities:
      Interest-bearing deposits
        NOW accounts                       10,418,557     12,745     0.49%
        Money market deposit accounts      36,036,826     96,477     1.07%
        Savings accounts                   12,266,254     22,772     0.74%
        Other consumer time deposits       32,075,905    248,272     3.10%
        Public fund CD's of $100,000 or
         more                               1,061,134      2,789     1.05%
        CD's of $100,000 or more            9,764,172     92,681     3.80%
        Foreign time deposits               1,482,519      3,442     0.93%
                                            ---------      -----     ----
      Total interest-bearing deposits    $103,105,367   $479,178     1.86%
      Senior and subordinated notes         9,553,950     74,032     3.10%
      Other borrowings                     13,480,527    143,860     4.27%
                                           ----------    -------     ----
    Total interest-bearing liabilities   $126,139,844   $697,070     2.21%
                                         ============   ========

                                                                     ----
    Net interest spread                                              5.35%
                                                                     ====

    Interest income to average earning assets                        7.56%
    Interest expense to average earning assets                       1.92%
                                                                     ----
    Net interest margin                                              5.64%
                                                                     ====




    Reported                                    Quarter Ended 06/30/09
                                                ----------------------
                                            Average     Income/    Yield/
                                            Balance     Expense     Rate
                                            -------     -------   --------
    Earning assets:

      Loans held for investment          $105,278,045 $2,233,808    8.49%
      Investment Securities (2)            37,499,187    412,845    4.40%
      Other                                 8,623,100     67,982    3.15%
                                            ---------     ------    ----
    Total earning assets                 $151,400,332 $2,714,635    7.17%
                                         ============ ==========

    Interest-bearing liabilities:
      Interest-bearing deposits
        NOW accounts                      $10,914,679    $14,602    0.54%
        Money market deposit accounts      35,751,007    103,855    1.16%
        Savings accounts                    9,931,058     13,399    0.54%
        Other consumer time deposits       35,841,099    300,572    3.35%
        Public fund CD's of $100,000 or
         more                               1,117,460      3,450    1.23%
        CD's of $100,000 or more           11,097,722    108,228    3.90%
        Foreign time deposits               2,387,093     11,473    1.92%
                                            ---------     ------    ----
      Total interest-bearing deposits    $107,040,118   $555,579    2.08%
      Senior and subordinated notes         8,322,746     57,113    2.74%
      Other borrowings                     16,274,845    155,357    3.82%
                                           ----------    -------    ----
    Total interest-bearing liabilities   $131,637,709   $768,049    2.33%
                                         ============   ========

                                                                    ----
    Net interest spread                                             4.84%
                                                                    ====

    Interest income to average earning assets                       7.17%
    Interest expense to average earning assets                      2.03%
                                                                    ----
    Net interest margin                                             5.14%
                                                                    ====




    Reported                                    Quarter Ended 09/30/08
                                                ----------------------
                                            Average     Income/    Yield/
                                            Balance     Expense     Rate
                                            -------     -------   --------
    Earning assets:

      Loans held for investment           $98,778,393 $2,347,480     9.51%
      Investment Securities (2)            25,780,198    317,268     4.92%
      Other                                 8,718,392    107,048     4.91%
                                            ---------    -------     ----
    Total earning assets                 $133,276,983 $2,771,796     8.32%
                                         ============ ==========

    Interest-bearing liabilities:
      Interest-bearing deposits
        NOW accounts                       $9,292,819    $30,263     1.30%
        Money market deposit accounts      26,914,607    187,740     2.79%
        Savings accounts                    7,759,024     16,243     0.84%
        Other consumer time deposits       26,733,531    262,101     3.92%
        Public fund CD's of $100,000 or
         more                               1,305,438      8,233     2.52%
        CD's of $100,000 or more            9,084,740     89,192     3.93%
        Foreign time deposits               3,564,449     30,547     3.43%
                                            ---------     ------     ----
      Total interest-bearing deposits     $84,654,608   $624,319     2.95%
      Senior and subordinated notes         8,282,536     96,568     4.66%
      Other borrowings                     22,368,976    244,264     4.37%
                                           ----------    -------     ----
    Total interest-bearing liabilities   $115,306,120   $965,151     3.35%
                                         ============   ========

                                                                     ----
    Net interest spread                                              4.97%
                                                                     ====

    Interest income to average earning assets                        8.32%
    Interest expense to average earning assets                       2.90%
                                                                     ----
    Net interest margin                                              5.42%
                                                                     ====

    (1) Average balances, income and expenses, yields and rates are based
    on continuing operations.
    (2) Includes securities available for sale and securities held to
    maturity.



    CAPITAL ONE FINANCIAL CORPORATION
    Statements of Average Balances, Income and Expense, Yields and Rates (2)
    (dollars in thousands)(unaudited)

    Managed (1)                                    Quarter Ended 09/30/09
                                                   ----------------------
                                              Average     Income/     Yield/
                                              Balance     Expense      Rate
                                              -------     -------    --------
    Earning assets:
      Loans held for investment            $143,670,720 $3,795,387      10.57%
      Investment Securities (3)              37,376,895    398,835       4.27%
      Other                                   4,957,393     18,038       1.46%
                                              ---------     ------       ----
    Total earning assets                   $186,005,008 $4,212,260       9.06%
                                           ============ ==========

    Interest-bearing liabilities:
      Interest-bearing deposits
        NOW accounts                        $10,418,557    $12,745       0.49%
        Money market deposit accounts        36,036,826     96,477       1.07%
        Savings accounts                     12,266,254     22,772       0.74%
        Other consumer time deposits         32,075,905    248,272       3.10%
        Public fund CD's of $100,000 or
         more                                 1,061,134      2,789       1.05%
        CD's of $100,000 or more              9,764,172     92,681       3.80%
        Foreign time deposits                 1,482,519      3,442       0.93%
                                              ---------      -----       ----
      Total interest-bearing deposits      $103,105,367   $479,178       1.86%
      Senior and subordinated notes           9,553,950     74,032       3.10%
      Other borrowings                       13,480,527    143,860       4.27%
      Securitization liability               41,251,788    257,643       2.50%
                                             ----------    -------       ----
    Total interest-bearing liabilities     $167,391,632   $954,713       2.28%
                                           ============   ========
                                                                         ----
    Net interest spread                                                  6.78%
                                                                         ====

    Interest income to average earning assets                            9.06%
    Interest expense to average earning assets                           2.05%
                                                                         ----
    Net interest margin                                                  7.01%
                                                                         ====



    Managed (1)                                   Quarter Ended 06/30/09
                                                  ----------------------
                                              Average     Income/     Yield/
                                              Balance     Expense      Rate
                                              -------     -------    --------
    Earning assets:

      Loans held for investment            $148,609,132 $3,564,773       9.60%
      Investment Securities (3)              37,499,187    412,845       4.40%
      Other                                   5,695,941     17,074       1.20%
                                              ---------     ------       ----
    Total earning assets                   $191,804,260 $3,994,692       8.33%
                                           ============ ==========

    Interest-bearing liabilities:
      Interest-bearing deposits
        NOW accounts                        $10,914,679    $14,602       0.54%
        Money market deposit accounts        35,751,007    103,855       1.16%
        Savings accounts                      9,931,058     13,399       0.54%
        Other consumer time deposits         35,841,099    300,572       3.35%
        Public fund CD's of $100,000 or
         more                                 1,117,460      3,450       1.23%
        CD's of $100,000 or more             11,097,722    108,228       3.90%
        Foreign time deposits                 2,387,093     11,473       1.92%
                                              ---------     ------       ----
      Total interest-bearing deposits      $107,040,118   $555,579       2.08%
      Senior and subordinated notes           8,322,746     57,113       2.74%
      Other borrowings                       16,274,845    155,357       3.82%
      Securitization liability               40,806,188    267,450       2.62%
                                             ----------    -------       ----
    Total interest-bearing liabilities     $172,443,897 $1,035,499       2.40%
                                           ============ ==========
                                                                         ----
    Net interest spread                                                  5.93%
                                                                         ====

    Interest income to average earning assets                            8.33%
    Interest expense to average earning assets                           2.16%
                                                                         ----
    Net interest margin                                                  6.17%
                                                                         ====



    Managed (1)                                    Quarter Ended 09/30/08
                                                   ----------------------
                                               Average     Income/    Yield/
                                               Balance     Expense     Rate
                                               -------     -------   --------
    Earning assets:

      Loans held for investment           $147,247,398 $3,974,375      10.80%
      Investment Securities (3)             25,780,198    317,268       4.92%
      Other                                  6,725,201     54,618       3.25%
                                             ---------     ------       ----
    Total earning assets                  $179,752,797 $4,346,261       9.67%
                                          ============ ==========

    Interest-bearing liabilities:
      Interest-bearing deposits
        NOW accounts                        $9,292,819    $30,263       1.30%
        Money market deposit accounts       26,914,607    187,740       2.79%
        Savings accounts                     7,759,024     16,243       0.84%
        Other consumer time deposits        26,733,531    262,101       3.92%
        Public fund CD's of $100,000 or
         more                                1,305,438      8,233       2.52%
        CD's of $100,000 or more             9,084,740     89,192       3.93%
        Foreign time deposits                3,564,449     30,547       3.43%
                                             ---------     ------       ----
      Total interest-bearing deposits      $84,654,608   $624,319       2.95%
      Senior and subordinated notes          8,282,536     96,568       4.66%
      Other borrowings                      22,368,976    244,264       4.37%
      Securitization liability              48,069,177    491,780       4.09%
                                            ----------    -------       ----
    Total interest-bearing liabilities    $163,375,297 $1,456,931       3.57%
                                          ============ ==========
                                                                        ----
    Net interest spread                                                 6.10%
                                                                        ====

    Interest income to average earning assets                           9.67%
    Interest expense to average earning assets                          3.24%
                                                                        ----
    Net interest margin                                                 6.43%
                                                                        ====


    (1) The information in this table reflects the adjustment to add back the
    effect of securitized loans.
    (2) Average balances, income and expenses, yields and rates are based on
    continuing operations.
    (3) Includes securities available for sale and securities held to
    maturity.



                      CAPITAL ONE FINANCIAL CORPORATION (COF)
                        LENDING INFORMATION AND STATISTICS
                               MANAGED BASIS (1) (8)

                                         2009          2009          2008
                                          Q3            Q2            Q3
                                          --            --            --

    Period end loans held for investment
    (in thousands)
    Domestic credit card              $61,891,573   $64,760,128   $69,361,743
    International credit card           8,477,236     8,638,441    10,254,713
                                        ---------     ---------    ----------
      Total Credit Card               $70,368,809   $73,398,569   $79,616,456
                                      -----------   -----------   -----------

    Commercial and multi-family
     real estate                      $13,920,431   $14,153,752   $12,997,111
    Middle market                       9,987,237    10,190,701     9,768,420
    Specialty lending                   3,542,350     3,469,699     3,634,212
                                        ---------     ---------     ---------
      Total Commercial Lending        $27,450,018   $27,814,152   $26,399,743
    Small ticket commercial real
     estate                             2,412,400     2,503,035     2,695,570
                                        ---------     ---------     ---------
      Total Commercial Banking        $29,862,418   $30,317,187   $29,095,313
                                      -----------   -----------   -----------

    Automobile                        $19,295,218   $19,916,167   $22,318,970
    Mortgages                          15,838,327    16,674,368    10,355,853
    Retail banking                      5,346,260     5,593,040     5,402,783
                                        ---------     ---------     ---------
      Total Consumer Banking          $40,479,805   $42,183,575   $38,077,606
                                      -----------   -----------   -----------

    Other loans (7)                      $347,483      $351,393      $556,371
                                         --------      --------      --------
         Total                       $141,058,515  $146,250,724  $147,345,746
                                     ============  ============  ============

    Average loans held for investment
    (in thousands)
    Domestic credit card              $63,298,525   $65,862,569   $68,581,983
    International credit card           8,609,235     8,327,859    10,703,229
                                        ---------     ---------    ----------
      Total Credit Card               $71,907,760   $74,190,428   $79,285,212
                                      -----------   -----------   -----------

    Commercial and multi-family
     real estate                      $13,956,465   $14,056,005   $12,937,927
    Middle market                       9,924,849    10,426,572     9,303,068
    Specialty lending                   3,753,054     3,472,258     3,657,406
                                        ---------     ---------     ---------
      Total Commercial Lending        $27,634,368   $27,954,835   $25,898,401
    Small ticket commercial real
     estate                             2,470,961     2,542,082     2,709,568
                                        ---------     ---------     ---------
      Total Commercial Banking        $30,105,329   $30,496,917   $28,607,969
                                      -----------   -----------   -----------

    Automobile                        $19,635,979   $20,303,296   $22,870,070
    Mortgages                          16,156,009    17,013,312    10,562,385
    Retail banking                      5,515,647     5,727,032     5,391,590
                                        ---------     ---------     ---------
      Total Consumer Banking          $41,307,635   $43,043,640   $38,824,045
                                      -----------   -----------   -----------

    Other loans (7)                      $349,996      $878,147      $530,172
                                         --------      --------      --------
         Total                       $143,670,720  $148,609,132  $147,247,398
                                     ============  ============  ============

    Net Charge-off Rates
    Domestic credit card                     9.64%         9.23%         6.13%
    International credit card                9.19%         9.32%         5.90%
                                             ----          ----          ----
      Total Credit Card                      9.59%         9.24%         6.10%
                                             ----          ----          ----

    Commercial and multi-family
     real estate (4)                         1.37%         0.92%         0.14%
    Middle market (4)                        0.56%         0.58%         0.15%
    Specialty lending                        1.39%         0.99%         0.27%
                                             ----          ----          ----
      Total Commercial Lending (4)           1.08%         0.80%         0.16%
    Small ticket commercial real
     estate                                  5.19%         1.86%         0.10%
                                             ----          ----          ----
      Total Commercial Banking (4)           1.42%         0.89%         0.16%
                                             ----          ----          ----

    Automobile                               4.38%         3.65%         4.99%
    Mortgages (4)                            0.68%         0.42%         0.43%
    Retail banking (4)                       2.44%         2.41%         2.08%
                                             ----          ----          ----
      Total Consumer Banking (4)             2.67%         2.21%         3.35%
                                             ----          ----          ----

    Other loans                             28.53%        37.00%        18.98%
                                            -----         -----         -----
         Total                               6.00%         5.62%         4.30%
                                             ====          ====          ====

    30+ day performing delinquency rate
    Domestic credit card                     5.38%         4.77%         4.20%
    International credit card                6.63%         6.69%         5.24%
                                             ----          ----          ----
      Total Credit Card                      5.53%         4.99%         4.34%
                                             ----          ----          ----

    Automobile (6)                           9.52%         8.89%         9.31%
    Mortgages (4)                            1.15%         0.97%         0.82%
    Retail banking (4)                       1.23%         0.88%         0.89%
                                             ----          ----          ----
      Total Consumer Banking (4)             5.15%         4.69%         5.81%
                                             ====          ====          ====

    Non Performing Asset Rates (2) (5)
    Commercial and multi-family
     real estate (4)                         2.68%         2.16%         1.07%
    Middle market (4)                        1.26%         1.16%         0.26%
    Specialty lending                        2.04%         1.96%         0.38%
                                             ----          ----          ----
      Total Commercial Lending (4)           2.08%         1.77%         0.67%
    Small ticket commercial real
     estate                                 11.39%        10.08%         4.49%
                                            -----         -----          ----
      Total Commercial Banking (4)           2.83%         2.46%         1.03%
                                             ----          ----          ----

    Automobile (6)                           0.87%         0.78%         0.99%
    Mortgages (4)                            1.81%         1.50%         1.16%
    Retail banking (4)                       1.93%         1.80%         0.97%
                                             ----          ----          ----
      Total Consumer Banking (4)             1.38%         1.20%         1.03%
                                             ====          ====          ====



                     CAPITAL ONE FINANCIAL CORPORATION (COF)
                         CREDIT CARD SEGMENT FINANCIAL &
                  STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
                              MANAGED BASIS (1) (8)

                                           2009         2009         2008
    (in thousands)                          Q3           Q2           Q3
    --------------                          --           --           --
    Credit Card:
    ------------
    Earnings
      Net interest income               $2,024,250   $1,797,303   $1,862,034
      Non-interest income                  966,862      897,440    1,181,015
                                           -------      -------    ---------
      Total revenue                     $2,991,112   $2,694,743   $3,043,049
      Provision for loan and lease
       losses                            1,643,721    1,520,292    1,434,435
      Non-interest expenses                897,578      909,572    1,059,641
                                           -------      -------    ---------
      Income (loss) before taxes           449,813      264,879      548,973
      Income taxes (benefit)               158,074       92,251      192,461
                                           -------       ------      -------
      Net income (loss)                   $291,739     $172,628     $356,512
                                          ========     ========     ========

    Selected Metrics
      Period end loans held for
       investment                      $70,368,809  $73,398,569  $79,616,456
      Average loans held for
       investment                      $71,907,760  $74,190,428  $79,285,212
      Loans held for investment yield        13.75%       12.31%       13.20%
      Revenue margin                         16.64%       14.53%       15.35%
      Net charge-off rate                     9.59%        9.24%        6.10%
      30+ day performing delinquency
       rate                                   5.53%        4.99%        4.34%
      Purchase Volume (3)              $25,982,259  $25,746,799  $29,394,045

    Domestic Card Sub-segment
    Earnings
      Net interest income               $1,797,173   $1,586,686   $1,616,038
      Non-interest income                  855,571      794,440    1,027,918
                                           -------      -------    ---------
      Total revenue                     $2,652,744   $2,381,126   $2,643,956
      Provision for loan and lease
       losses                            1,436,959    1,336,736    1,240,580
      Non-interest expenses                769,995      787,624      873,866
                                           -------      -------      -------
      Income (loss) before taxes           445,790      256,766      529,510
      Income taxes (benefit)               156,027       89,868      185,328
                                           -------       ------      -------
      Net income (loss)                   $289,763     $166,898     $344,182
                                          ========     ========     ========

    Selected Metrics
      Period end loans held for
       investment                      $61,891,573  $64,760,128  $69,361,743
      Average loans held for
       investment                      $63,298,525  $65,862,569  $68,581,983
      Loans held for investment yield        13.74%       12.17%       13.07%
      Revenue margin                         16.76%       14.46%       15.42%
      Net charge-off rate                     9.64%        9.23%        6.13%
      30+ day performing delinquency
       rate                                   5.38%        4.77%        4.20%
      Purchase Volume (3)              $23,760,963  $23,610,760  $26,536,070

    International Card Sub-segment
    Earnings
      Net interest income                 $227,077     $210,617     $245,996
      Non-interest income                  111,291      103,000      153,097
                                           -------      -------      -------
      Total revenue                       $338,368     $313,617     $399,093
      Provision for loan and lease
       losses                              206,762      183,556      193,855
      Non-interest expenses                127,583      121,948      185,775
                                           -------      -------      -------
      Income (loss) before taxes             4,023        8,113       19,463
      Income taxes (benefit)                 2,047        2,383        7,133
                                             -----        -----        -----
      Net income (loss)                     $1,976       $5,730      $12,330
                                            ======       ======      =======

    Selected Metrics
      Period end loans held for
       investment                       $8,477,236   $8,638,441  $10,254,713
      Average loans held for
       investment                       $8,609,235   $8,327,859  $10,703,229
      Loans held for investment yield        13.81%       13.42%       14.02%
      Revenue margin                         15.72%       15.06%       14.91%
      Net charge-off rate                     9.19%        9.32%        5.90%
      30+ day performing delinquency
       rate                                   6.63%        6.69%        5.24%
      Purchase Volume (3)               $2,221,296   $2,136,039   $2,857,975



                     CAPITAL ONE FINANCIAL CORPORATION (COF)
                     COMMERCIAL BANKING SEGMENT FINANCIAL &
                  STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
                              MANAGED BASIS (1) (8)

                                          2009         2009         2008
    (in thousands)                         Q3           Q2           Q3
    --------------                         --           --           --
    Commercial Banking:
    -------------------
    Earnings
      Net interest income                $297,484     $274,927     $238,641
      Non-interest income                  43,299       49,043       35,608
                                           ------       ------       ------
      Total revenue                      $340,783     $323,970     $274,249
      Provision for loan and lease
       losses                             375,095      122,497       41,706
      Non-interest expenses               166,043      155,591      121,558
                                          -------      -------      -------
      Income (loss) before taxes         (200,355)      45,882      110,985
      Income taxes (benefit)              (70,125)      16,059       38,845
                                          -------       ------       ------
      Net income (loss)                 $(130,230)     $29,823      $72,140
                                        =========      =======      =======

    Selected Metrics
      Period end loans held for
       investment                     $29,862,418  $30,317,187  $29,095,313
      Average loans held for
       investment                     $30,105,329  $30,496,917  $28,607,969
      Loans held for investment yield        5.01%        4.97%        5.82%
      Period end deposits             $18,617,112  $16,897,441  $16,764,330
      Average deposits                $17,760,860  $17,020,998  $17,152,610
      Deposit interest expense rate          0.75%        0.77%        1.75%
      Core deposit intangible
       amortization                        $9,664       $9,975       $9,614
      Net charge-off rate (4)                1.42%        0.89%        0.16%
      Non-performing loans as a
       percentage of loans held for
       investment (4)                        2.64%        2.32%        1.00%
      Non-performing asset rate (4)          2.83%        2.46%        1.03%



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
                    CONSUMER BANKING SEGMENT FINANCIAL &
                STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
                            MANAGED BASIS (1) (8)

                                       2009         2009         2008
    (in thousands)                      Q3           Q2           Q3
    --------------                      --           --           --
    Consumer Banking:
    -----------------
    Earnings
      Net interest income             $908,744     $839,304     $754,439
      Non-interest income              212,716      225,627      194,741
                                       -------      -------      -------
      Total revenue                 $1,121,460   $1,064,931     $949,180
      Provision for loan and lease
       losses                          156,052      202,055      283,424
      Non-interest expenses            681,391      724,760      614,740
                                       -------      -------      -------
      Income (loss) before taxes       284,017      138,116       51,016
      Income taxes (benefit)            99,406       48,340       17,856
                                        ------       ------       ------
      Net income (loss)               $184,611      $89,776      $33,160
                                      ========      =======      =======

    Selected Metrics
      Period end loans held for
       investment                  $40,479,805  $42,183,575  $38,077,606
      Average loans held for
       investment                  $41,307,635  $43,043,640  $38,824,045
      Loans held for investment
       yield                              9.50%        8.52%        9.19%
      Auto loan originations         1,512,707    1,341,583    1,444,291
      Period end deposits          $72,252,596  $73,882,639  $57,492,140
      Average deposits             $73,284,397  $74,320,889  $57,034,702
      Deposit interest expense rate       1.58%        1.76%        2.39%
      Core deposit intangible
       amortization                    $45,856      $47,447      $37,637
      Net charge-off rate (4)             2.67%        2.21%        3.35%
      Non-performing loans as a
       percentage of loans held
       for investment (4)(6)              1.25%        1.07%        0.81%
      Non-performing asset rate (4)(6)    1.38%        1.20%        1.03%
      30+ day performing delinquency
       rate(4)(6)                         5.15%        4.69%        5.81%
      Period end loans serviced for
       others                      $30,659,074  $31,491,554  $25,384,945



                    CAPITAL ONE FINANCIAL CORPORATION (COF)
                     OTHER AND TOTAL SEGMENT FINANCIAL &
                 STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
                             MANAGED BASIS (1) (8)

                                       2009          2009          2008
    (in thousands)                      Q3            Q2            Q3
    --------------                      --            --            --
    Other:
    ------
    Earnings
      Net interest income             $27,070       $47,659       $34,216
      Non-interest income             149,802        16,905       (85,805)
                                      -------        ------       -------
      Total revenue                  $176,872       $64,564      $(51,589)
      Provision for loan and
       lease losses                    25,464        59,129        45,705
      Restructuring expenses           26,357        43,374        15,306
      Non-interest expenses            31,109        88,459        (1,039)
                                       ------        ------        ------
      Income (loss) before taxes       93,942      (126,398)     (111,561)
      Income taxes (benefit)          (29,164)      (64,372)      (35,538)
                                      -------       -------       -------
      Net income (loss)              $123,106      $(62,026)     $(76,023)
                                     ========      ========      ========

    Selected Metrics
      Period end loans held for
       investment (7)                $347,483      $351,393      $556,371
      Average loans held for
       investment (7)                $349,996      $878,147      $530,172
      Period end deposits         $23,633,403   $25,944,110   $24,656,504
      Average deposits            $24,837,483   $28,268,755   $21,140,718

    Total:
    ------
    Earnings
      Interest income              $4,212,260    $3,994,692    $4,346,261
      Interest expense                954,712     1,035,499     1,456,931
                                      -------     ---------     ---------
      Net interest income          $3,257,548    $2,959,193    $2,889,330
      Non-interest income           1,372,679     1,189,015     1,325,559
                                    ---------     ---------     ---------
      Total revenue                $4,630,227    $4,148,208    $4,214,889
      Provision for loan and
       lease losses                 2,200,332     1,903,973     1,805,270
      Restructuring expenses           26,357        43,374        15,306
      Non-interest expenses         1,776,121     1,878,382     1,794,900
                                    ---------     ---------     ---------
      Income (loss) before taxes      627,417       322,479       599,413
      Income taxes (benefit)          158,191        92,278       213,624
                                      -------        ------       -------
      Net income (loss)              $469,226      $230,201      $385,789
                                     ========      ========      ========

    Selected Metrics
      Period end loans held for
       investment                $141,058,515  $146,250,724  $147,345,746
      Average loans held for
       investment                $143,670,720  $148,609,132  $147,247,398
      Period end deposits        $114,503,111  $116,724,190   $98,912,974
      Average deposits           $115,882,740  $119,610,642   $95,328,030




                            CAPITAL ONE FINANCIAL CORPORATION (COF)
                                 LOAN DISCLOSURES AND SEGMENT
             FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS NOTES

    (1) The information in this report 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) Non performing assets is comprised of non performing loans and other
        real estate owned (OREO). The non performing asset rate equals non
        performing assets divided by the sum of loans held for investment and
        OREO.

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

    (4) Net charge-off rates and 30+ day performing delinquency rates include
        period end loans held for investment and average loans held for
        investment acquired as part of the Chevy Chase Bank, FSB (CCB)
        acquisition. The period end and average loans held for investment and
        metrics excluding such loans are as follows. Net charge-off dollars
        were unchanged.

                                         Q3 2009   Q2 2009
                                         -------   -------
        CCB period end acquired loan
         portfolio (in millions)        $8,002.3  $8,552.9
        CCB average acquired loan
         portfolio (in millions)        $8,525.2  $8,931.9
        Net charge-off rate
          Commercial and Multi-Family
           Real Estate                      1.42%     0.95%
          Middle Market                     0.59%     0.61%
                                            ----      ----
            Total Commercial Lending        1.12%     0.83%
                                            ----      ----
              Total Commercial Banking      1.46%     0.92%

        Mortgage                            1.24%     0.77%
        Retail Banking                      2.57%     2.56%
                                            ----      ----
              Total Consumer Banking        3.28%     2.72%

        3(TM)0+ day performing delinquency
         rate
          Mortgage                          2.06%     1.74%
          Retail Banking                    1.29%     0.92%
                                            ----      ----
              Total Consumer Banking        6.27%     5.74%

        Non performing asset rate
          Commercial and Multi-Family
           Real Estate                      2.76%     2.25%
          Middle Market                     1.30%     1.20%
                                            ----      ----
            Total Commercial Lending        2.16%     1.83%
                                            ----      ----
              Total Commercial Banking      2.91%     2.53%

          Mortgage                          3.23%     2.78%
          Retail Banking                    2.03%     1.90%
                                            ----      ----
              Total Consumer Banking        1.68%     1.47%

        Non performing loans as a
         percentage of loans held for
         investment
          Commercial Banking                2.71%     2.39%
          Consumer Banking                  1.52%     1.31%

    (5) The Company's policy is not to reclassify credit card loans as
        nonperforming loans. Credit card loans continue to accrue finance
        charges and fees until charged off. The amount of finance charges and
        fees considered uncollectible are suppressed and are not recognized in
        income.

    (6) Includes non accrual consumer auto loans 90+ days past due.

    (7) Other loans held for investment includes unamortized premiums and
        discounts and certain other purchase accounting adjustments on loans
        acquired in the Chevy Chase Bank, North Fork and Hibernia
        acquisitions.

    (8) During the third quarter of 2009, the Company realigned its business
        segment reporting structure to better reflect the manner in which the
        performance of the Company's operations are evaluated. The Company now
        reports the results of its business through three operating segments:
        Credit Card, Commercial Banking, and Consumer Banking. Segment and
        certain sub-segment results have been recasted for all periods
        presented. The three segments consist of the following:

         -- Credit Card includes the Company's domestic consumer and small
            business card lending, domestic national small business lending,
            national closed end installment lending and the international card
            lending businesses in Canada and the United Kingdom.

         -- Commercial Banking includes the Company's lending, deposit
            gathering and treasury management services to commercial real
            estate and middle market customers. The Commercial segment also
            includes the financial results of a national portfolio of small
            ticket commercial real estate loans that are in run-off mode.

         -- Consumer Banking includes the Company's branch based lending and
            deposit gathering activities for small business customers as well
            as its branch-based consumer deposit gathering and lending
            activities, national deposit gathering, consumer mortgage lending
            and servicing activities and national automobile lending.

        The segment reorganization includes the allocation of Chevy Chase
        Bank to the appropriate segments. Chevy Chase Bank's operations are
        included in the Commercial Banking and Consumer Banking segments
        beginning in the second quarter 2009. Chevy Chase Bank's operations
        for the first quarter of 2009 remain in the Other category. Chevy
        Chase Bank's operations are impacted by the Company's analysis of the
        fair values and purchase price allocation of Chevy Chase Bank's assets
        and liabilities. As of September 30, 2009, the Company has not
        finalized the analysis. Changes to the purchase price allocation could
        result in the Company recasting results of Chevy Chase Bank's
        operations.

SOURCE Capital One Financial Corporation

Media: Julie Rakes, +1-804-284-5800 (office), julie.rakes@capitalone.com or Investors: Jeff Norris, 703-720-2455, both of Capital One