COF
$91.28
Capital One Financial
($.11)
(.12%)
Earnings Details
3rd Quarter September 2020
Thursday, October 22, 2020 4:05:00 PM
Tweet Share Watch
Summary

Capital One Financial Beats

Capital One Financial (COF) reported 3rd Quarter September 2020 earnings of $5.05 per share on revenue of $8.0 billion. The consensus earnings estimate was $1.99 per share on revenue of $6.8 billion. The Earnings Whisper number was $2.22 per share. Revenue fell 3.1% compared to the same quarter a year ago.

Capital One Financial Corp is a financial services holding company. The Company with its banking and non-banking subsidiaries markets financial products and services.

Results
Reported Earnings
$5.05
Earnings Whisper
$2.22
Consensus Estimate
$1.99
Reported Revenue
$8.04 Bil
Revenue Estimate
$6.76 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

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

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

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

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

(Dollars in millions, except per share data)

Pre-Tax
Impact

Diluted EPS
Impact



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

$

36


$

0.08



Legal reserve builds

(40)


(0.06)



Cybersecurity Incident expenses, net of insurance

(6)


(0.01)





The quarter included the following notable items:




(Dollars in millions, except per share data)

Pre-Tax
Impact

Diluted EPS
Impact



Equity investment gain

$

470


$

0.79



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

327


0.54



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

Third Quarter 2020 Income Statement Summary:

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

Third Quarter 2020 Balance Sheet Summary:

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

(1)

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

(2)

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

Earnings Conference Call Webcast Information

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

Forward-Looking Statements

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

About Capital One

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

 

Exhibit 99.2

Capital One Financial Corporation


Financial Supplement(1)(2)


Third Quarter 2020


Table of Contents




Capital One Financial Corporation Consolidated Results

Page


Table 1:

Financial Summary—Consolidated

1


Table 2:

Selected Metrics—Consolidated

3


Table 3:

Consolidated Statements of Income

4


Table 4:

Consolidated Balance Sheets

7


Table 5:

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

10


Table 6:

Average Balances, Net Interest Income and Net Interest Margin

11


Table 7:

Loan Information and Performance Statistics

12


Table 8:

Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

15

Business Segment Results



Table 9:

Financial Summary—Business Segment Results

17


Table 10:

Financial & Statistical Summary—Credit Card Business

18


Table 11:

Financial & Statistical Summary—Consumer Banking Business

20


Table 12:

Financial & Statistical Summary—Commercial Banking Business

21


Table 13:

Financial & Statistical Summary—Other and Total

22

Other



Table 14:

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

23


Table 15:

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

24

__________



(1)

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

(2)

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

 

               

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













2020 Q3 vs.


Nine Months Ended September 30,


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


2020


2020


2020


2019


2019


2020


2019






2020 vs.



Q3


Q2


Q1


Q4


Q3


Q2


Q3


2020


2019


2019


Income Statement






















Net interest income


$

5,555



$

5,460



$

6,025



$

6,066



$

5,737



2

%


(3)

%


$

17,040



$

17,274



(1)

%


Non-interest income


1,826



1,096



1,224



1,361



1,222



67



49



4,146



3,892



7



Total net revenue(1)


7,381



6,556



7,249



7,427



6,959



13



6



21,186



21,166





Provision for credit losses


331



4,246



5,423



1,818



1,383



(92)



(76)



10,000



4,418



126



Non-interest expense:






















Marketing


283



273



491



710



501



4



(44)



1,047



1,564



(33)



Operating expense


3,265



3,497



3,238



3,451



3,371



(7)



(3)



10,000



9,758



2



Total non-interest expense


3,548



3,770



3,729



4,161



3,872



(6)



(8)



11,047



11,322



(2)



Income (loss) from continuing operations before income taxes


3,502



(1,460)



(1,903)



1,448



1,704



**



106



139



5,426



(97)



Income tax provision (benefit)


1,096



(543)



(563)



270



375



**



192



(10)



1,071



**



Income (loss) from continuing operations, net of tax


2,406



(917)



(1,340)



1,178



1,329



**



81



149



4,355



(97)



Income (loss) from discontinued operations, net of tax




(1)





(2)



4



**



**



(1)



15



**



Net income (loss)


2,406



(918)



(1,340)



1,176



1,333



**



80



148



4,370



(97)



Dividends and undistributed earnings allocated to participating securities(2)


(20)



(1)



(3)



(7)



(10)



**



100



(5)



(34)



(85)



Preferred stock dividends


(67)



(90)



(55)



(97)



(53)



(26)



26



(212)



(185)



15



Issuance cost for redeemed preferred stock(3)






(22)



(31)









(22)





**



Net income (loss) available to common stockholders


$

2,319



$

(1,009)



$

(1,420)



$

1,041



$

1,270



**



83



$

(91)



$

4,151



**



Common Share Statistics






















Basic earnings per common share:(2)






















Net income (loss) from continuing operations


$

5.07



$

(2.21)



$

(3.10)



$

2.26



$

2.70



**



88

%


$

(0.20)



$

8.80



**



Income from discontinued operations










0.01





**





0.03



**



Net income (loss) per basic common share


$

5.07



$

(2.21)



$

(3.10)



$

2.26



$

2.71



**



87



$

(0.20)



$

8.83



**



Diluted earnings per common share:(2)






















Net income (loss) from continuing operations


$

5.06



$

(2.21)



$

(3.10)



$

2.25



$

2.68



**



89



$

(0.20)



$

8.76



**



Income from discontinued operations










0.01





**





0.03



**



Net income (loss) per diluted common share


$

5.06



$

(2.21)



$

(3.10)



$

2.25



$

2.69



**



88



$

(0.20)



$

8.79



**



Weighted-average common shares outstanding (in millions):






















Basic


457.8



456.7



457.6



460.9



469.5





(2)



457.4



469.9



(3)

%


Diluted


458.5



456.7



457.6



463.4



471.8





(3)



457.4



472.1



(3)



Common shares outstanding (period-end, in millions)


457.4



456.3



455.3



456.6



465.7





(2)



457.4



465.7



(2)



Dividends declared and paid per common share


$

0.10



$

0.40



$

0.40



$

0.40



$

0.40



(75)

%


(75)



$

0.90



$

1.20



(25)



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


83.67



78.82



80.68



83.72



80.46



6



4



83.67



80.46



4































2020 Q3 vs.


Nine Months Ended September 30,


(Dollars in millions)


2020


2020


2020


2019


2019


2020


2019






2020 vs.



Q3


Q2


Q1


Q4


Q3


Q2


Q3


2020


2019


2019


Balance Sheet (Period-End)






















Loans held for investment


$

248,223



$

251,512



$

262,990



$

265,809



$

249,355



(1)

%




$

248,223



$

249,355





Interest-earning assets


390,040



389,829



364,472



355,202



344,643





13

%


390,040



344,643



13

%


Total assets


421,883



421,296



396,878



390,365



378,810





11



421,883



378,810



11



Interest-bearing deposits


276,092



275,183



245,142



239,209



234,084





18



276,092



234,084



18



Total deposits


305,725



304,238



269,689



262,697



257,148





19



305,725



257,148



19



Borrowings


42,795



44,900



55,681



55,697



50,149



(5)



(15)



42,795



50,149



(15)



Common equity


53,093



50,835



51,620



53,157



52,412



4



1



53,093



52,412



1



Total stockholders' equity


58,424



56,045



56,830



58,011



58,235



4





58,424



58,235





Balance Sheet (Average Balances)






















Loans held for investment


$

249,511



$

253,358



$

262,889



$

258,870



$

246,147



(2)

%


1

%


$

255,232



$

243,602



5

%


Interest-earning assets


391,451



378,145



355,347



349,150



340,949



4



15



375,041



338,936



11



Total assets


422,854



411,075



390,380



383,162



374,905



3



13



408,233



372,148



10



Interest-bearing deposits


276,339



261,256



241,115



236,250



232,063



6



19



259,631



230,045



13



Total deposits


305,516



288,344



264,653



260,040



255,082



6



20



286,242



253,389



13



Borrowings


44,161



49,827



51,795



51,442



49,413



(11)



(11)



48,577



50,804



(4)



Common equity


51,995



52,413



53,186



52,641



52,566



(1)



(1)



52,529



50,393



4



Total stockholders' equity


57,223



57,623



58,568



58,148



57,245



(1)





57,802



54,861



5



































 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated














2020 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions, except as noted)


2020


2020


2020


2019


2019


2020


2019






2020 vs.


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2020


2019


2019

Performance Metrics





















Net interest income growth (period over period)


2

%


(9)

%


(1)

%


6

%




**



**



(1)

%


1

%


**


Non-interest income growth (period over period)


67



(10)



(10)



11



(11)

%


**



**



7



(3)



**


Total net revenue growth (period over period)


13



(10)



(2)



7



(2)



**



**







**


Total net revenue margin(5)


7.54



6.93



8.16



8.51



8.16



61

bps


(62)

bps


7.53



8.33



(80)

bps

Net interest margin(6)


5.68



5.78



6.78



6.95



6.73



(10)



(105)



6.06



6.80



(74)


Return on average assets


2.28



(0.89)



(1.37)



1.23



1.42



317



86



0.05



1.56



(151)


Return on average tangible assets(7)


2.36



(0.93)



(1.43)



1.28



1.48



329



88



0.05



1.63



(158)


Return on average common equity(8)


17.84



(7.69)



(10.68)



7.93



9.63



**



8

%


(0.23)



10.94



**


Return on average tangible common equity(9)


24.98



(10.74)



(14.85)



11.07



13.45



**



12



(0.32)



15.54



**


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


5.69



5.95



5.67



6.43



6.29



(26)



(60)

bps


5.77



6.20



(43)


Efficiency ratio(10)


48.07



57.50



51.44



56.03



55.64



(9)

%


(8)

%


52.14



53.49



(135)


Operating efficiency ratio(11)


44.24



53.34



44.67



46.47



48.44



(9)



(4)



47.20



46.10



110


Effective income tax rate for continuing operations


31.3



37.2



29.6



18.6



22.0



(6)



9



(7.2)



19.7



(27)

%

Employees (period-end, in thousands)


52.5



53.1



52.1



51.9



52.1



(1)



1



52.5



52.1



1


Credit Quality Metrics





















Allowance for credit losses


$

16,129



$

16,832



$

14,073



$

7,208



$

7,037



(4)

%


129

%


$

16,129



$

7,037



129

%

Allowance coverage ratio


6.50

%


6.69

%


5.35

%


2.71

%


2.82

%


(19)

bps


368

bps


6.50

%


2.82

%


368

bps

Net charge-offs


$

1,073



$

1,505



$

1,791



$

1,683



$

1,462



(29)

%


(27)

%


$

4,369



$

4,569



(4)

%

Net charge-off rate(12)


1.72

%


2.38

%


2.72

%


2.60

%


2.38

%


(66)

bps


(66)

bps


2.28

%


2.50

%


(22)

bps

30+ day performing delinquency rate(13)


1.97



2.09



2.95



3.51



3.28



(12)



(131)



1.97



3.28



(131)


30+ day delinquency rate(13)


2.22



2.30



3.16



3.74



3.51



(8)



(129)



2.22



3.51



(129)


Capital Ratios(14)





















Common equity Tier 1 capital


13.0

%


12.4

%


12.0

%


12.2

%


12.5

%


60

bps


50

bps


13.0

%


12.5

%


50

bps

Tier 1 capital


14.8



14.2



13.7



13.7



14.4



60



40



14.8



14.4



40


Total capital


17.3



16.7



16.1



16.1



16.8



60



50



17.3



16.8



50


Tier 1 leverage


10.6



10.3



11.0



11.7



11.9



30



(130)



10.6



11.9



(130)


Tangible common equity ("TCE")(15)


9.4



8.8



9.6



10.2



10.3



60



(90)



9.4



10.3



(90)








































 

 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income














2020 Q3 vs.


Nine Months Ended September 30,



2020


2020


2020


2019


2019


2020


2019






2020 vs.

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


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2020


2019


2019

Interest income:





















Loans, including loans held for sale


$

5,758



$

5,820



$

6,542



$

6,682



$

6,429



(1)

%


(10)

%


$

18,120



$

19,180



(6)

%

Investment securities


443



482



530



544



583



(8)



(24)



1,455



1,867



(22)


Other


14



16



37



44



63



(13)



(78)



67



196



(66)


Total interest income


6,215



6,318



7,109



7,270



7,075



(2)



(12)



19,642



21,243



(8)


Interest expense:





















Deposits


476



611



731



832



901



(22)



(47)



1,818



2,588



(30)


Securitized debt obligations


43



56



99



118



123



(23)



(65)



198



405



(51)


Senior and subordinated notes


132



180



239



236



299



(27)



(56)



551



923



(40)


Other borrowings


9



11



15



18



15



(18)



(40)



35



53



(34)


Total interest expense


660



858



1,084



1,204



1,338



(23)



(51)



2,602



3,969



(34)


Net interest income


5,555



5,460



6,025



6,066



5,737



2



(3)



17,040



17,274



(1)


Provision for credit losses


331



4,246



5,423



1,818



1,383



(92)



(76)



10,000



4,418



126


Net interest income after provision for credit losses


5,224



1,214



602



4,248



4,354



**



20



7,040



12,856



(45)


Non-interest income:





















Interchange fees, net


775



672



752



811



790



15



(2)



2,199



2,368



(7)


Service charges and other customer-related fees


320



258



327



342



283



24



13



905



988



(8)


Net securities gains (losses)


25







(18)



5



**



**



25



44



(43)


Other


706



166



145



226



144



**



**



1,017



492



107


Total non-interest income


1,826



1,096



1,224



1,361



1,222



67



49



4,146



3,892



7


Non-interest expense:





















Salaries and associate benefits


1,719



1,704



1,627



1,652



1,605



1



7



5,050



4,736



7


Occupancy and equipment


506



523



517



565



519



(3)



(3)



1,546



1,533



1


Marketing


283



273



491



710



501



4



(44)



1,047



1,564



(33)


Professional services


327



304



287



318



314



8



4



918



919




Communications and data processing


310



308



302



346



312



1



(1)



920



944



(3)


Amortization of intangibles


14



16



22



28



25



(13)



(44)



52



84



(38)


Other(16)


389



642



483



542



596



(39)



(35)



1,514



1,542



(2)


Total non-interest expense


3,548



3,770



3,729



4,161



3,872



(6)



(8)



11,047



11,322



(2)


Income (loss) from continuing operations before income taxes


3,502



(1,460)



(1,903)



1,448



1,704



**



106



139



5,426



(97)


Income tax provision (benefit)


1,096



(543)



(563)



270



375



**



192



(10)



1,071



**


Income (loss) from continuing operations, net of tax


2,406



(917)



(1,340)



1,178



1,329



**



81



149



4,355



(97)


Income (loss) from discontinued operations, net of tax




(1)





(2)



4



**



**



(1)



15



**


Net income (loss)


2,406



(918)



(1,340)



1,176



1,333



**



80



148



4,370



(97)


Dividends and undistributed earnings allocated to participating securities(2)


(20)



(1)



(3)



(7)



(10)



**



100



(5)



(34)



(85)


Preferred stock dividends


(67)



(90)



(55)



(97)



(53)



(26)



26



(212)



(185)



15


Issuance cost for redeemed preferred stock(3)






(22)



(31)









(22)





**


Net income (loss) available to common stockholders


$

2,319



$

(1,009)



$

(1,420)



$

1,041



$

1,270



**



83



$

(91)



$

4,151



**
























































2020 Q3 vs.


Nine Months Ended September 30,



2020


2020


2020


2019


2019


2020


2019






2020 vs.

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


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2020


2019


2019

Basic earnings per common share:(2)





















Net income (loss) from continuing operations


$

5.07



$

(2.21)



$

(3.10)



$

2.26



$

2.70



**



88

%


$

(0.20)



$

8.80



**


Income from discontinued operations










0.01





**





0.03



**


Net income (loss) per basic common share


$

5.07



$

(2.21)



$

(3.10)



$

2.26



$

2.71



**



87



$

(0.20)



$

8.83



**


Diluted earnings per common share:(2)





















Net income (loss) from continuing operations


$

5.06



$

(2.21)



$

(3.10)



$

2.25



$

2.68



**



89



$

(0.20)



$

8.76



**


Income from discontinued operations










0.01





**





0.03



**


Net income (loss) per diluted common share


$

5.06



$

(2.21)



$

(3.10)



$

2.25



$

2.69



**



88



$

(0.20)



$

8.79



**


Weighted-average common shares outstanding (in millions):





















Basic common shares


457.8



456.7



457.6



460.9



469.5





(2)



457.4



469.9



(3)

%

Diluted common shares


458.5



456.7



457.6



463.4



471.8





(3)



457.4



472.1



(3)


 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets














2020 Q3 vs.



2020


2020


2020


2019


2019


2020


2019

(Dollars in millions)


Q3


Q2


Q1


Q4


Q3


Q2


Q3

Assets:















Cash and cash equivalents:















Cash and due from banks


$

4,267



$

4,583



$

4,545



$

4,129



$

4,452



(7)

%


(4)

%

Interest-bearing deposits and other short-term investments


39,839



51,235



20,391



9,278



12,668



(22)



**


Total cash and cash equivalents


44,106



55,818



24,936



13,407



17,120



(21)



158


Restricted cash for securitization investors


895



740



364



342



417



21



115


Investment securities:















Securities available for sale


99,853



87,859



81,423



79,213



46,168



14



116


Securities held to maturity










33,894





**


Total investment securities


99,853



87,859



81,423



79,213



80,062



14



25


Loans held for investment:















Unsecuritized loans held for investment


217,878



222,310



231,318



231,992



215,892



(2)



1


Loans held in consolidated trusts


30,345



29,202



31,672



33,817



33,463



4



(9)


Total loans held for investment


248,223



251,512



262,990



265,809



249,355



(1)




Allowance for credit losses


(16,129)



(16,832)



(14,073)



(7,208)



(7,037)



(4)



129


Net loans held for investment


232,094



234,680



248,917



258,601



242,318



(1)



(4)


Loans held for sale


3,433



711



1,056



400



1,245



**



176


Premises and equipment, net


4,333



4,324



4,336



4,378



4,311





1


Interest receivable


1,551



1,574



1,687



1,758



1,627



(1)



(5)


Goodwill


14,648



14,645



14,645



14,653



14,624






Other assets


20,970



20,945



19,514



17,613



17,086





23


Total assets


$

421,883



$

421,296



$

396,878



$

390,365



$

378,810





11





























2020 Q3 vs.



2020


2020


2020


2019


2019


2020


2019

(Dollars in millions)


Q3


Q2


Q1


Q4


Q3


Q2


Q3

Liabilities:















Interest payable


$

332



$

380



$

359



$

439



$

370



(13)

%


(10)

%

Deposits:















Non-interest-bearing deposits


29,633



29,055



24,547



23,488



23,064



2



28


Interest-bearing deposits


276,092



275,183



245,142



239,209



234,084





18


Total deposits


305,725



304,238



269,689



262,697



257,148





19


Securitized debt obligations


13,566



15,761



17,141



17,808



18,910



(14)



(28)


Other debt:















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


702



573



399



314



464



23



51


Senior and subordinated notes


28,448



28,481



32,049



30,472



30,682





(7)


Other borrowings


79



85



6,092



7,103



93



(7)



(15)


Total other debt


29,229



29,139



38,540



37,889



31,239





(6)


Other liabilities


14,607



15,733



14,319



13,521



12,908



(7)



13


Total liabilities


363,459



365,251



340,048



332,354



320,575





13

















Stockholders' equity:















Preferred stock


0



0



0



0



0






Common stock


7



7



7



7



7






Additional paid-in capital, net


33,793



33,556



33,450



32,980



33,826



1




Retained earnings


37,653



35,361



36,552



40,340



39,476



6



(5)


Accumulated other comprehensive income


3,833



3,981



3,679



1,156



453



(4)



**


Treasury stock, at cost


(16,862)



(16,860)



(16,858)



(16,472)



(15,527)





9


Total stockholders' equity


58,424



56,045



56,830



58,011



58,235



4




Total liabilities and stockholders' equity


$

421,883



$

421,296



$

396,878



$

390,365



$

378,810





11


 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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

(8)

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

(9)

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

(10)

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

(11)

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

(12)

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

(13)

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

(14)

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

(15)

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

(16)

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

**

Not meaningful.

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




2020 Q3


2020 Q2


2019 Q3




Average
Balance


Interest
Income/
Expense


Yield/Rate


Average
Balance


Interest
Income/
Expense


Yield/Rate


Average
Balance


Interest
Income/
Expense


Yield/Rate


(Dollars in millions, except as noted)











Interest-earning assets:




















Loans, including loans held for sale


$

250,525



$

5,758



9.19

%


$

254,402



$

5,820



9.15

%


$

247,419



$

6,429



10.39

%


Investment securities


91,777



443



1.93



81,095



482



2.38



80,762



583



2.88



Cash equivalents and other


49,149



14



0.11



42,648



16



0.15



12,768



63



2.00



Total interest-earning assets


$

391,451



$

6,215



6.35



$

378,145



$

6,318



6.68



$

340,949



$

7,075



8.30



Interest-bearing liabilities:




















Interest-bearing deposits


$

276,339



$

476



0.69



$

261,256



$

611



0.94



$

232,063



$

901



1.55



Securitized debt obligations


15,032



43



1.14



16,432



56



1.37



16,750



123



2.94



Senior and subordinated notes


28,497



132



1.86



31,294



180



2.30



31,220



299



3.84



Other borrowings and liabilities


2,119



9



1.77



3,554



11



1.21



2,698



15



2.14



Total interest-bearing liabilities


$

321,987



$

660



0.82



$

312,536



$

858



1.10



$

282,731



$

1,338



1.89



Net interest income/spread




$

5,555



5.53





$

5,460



5.58





$

5,737



6.41



Impact of non-interest-bearing funding






0.15







0.20







0.32



Net interest margin






5.68

%






5.78

%






6.73

%






Nine Months Ended September 30,



2020


2019



Average
Balance


Interest
Income/
Expense


Yield/Rate


Average
Balance


Interest
Income/
Expense


Yield/Rate

(Dollars in millions, except as noted)







Interest-earning assets:













Loans, including loans held for sale


$

256,165



$

18,120



9.43

%


$

244,743



$

19,180



10.45

%

Investment securities


83,724



1,455



2.32



82,264



1,867



3.03


Cash equivalents and other


35,152



67



0.25



11,929



196



2.19


Total interest-earning assets


$

375,041



$

19,642



6.98



$

338,936



$

21,243



8.36


Interest-bearing liabilities:













Interest-bearing deposits


$

259,631



$

1,818



0.93



$

230,045



$

2,588



1.50


Securitized debt obligations


16,500



198



1.60



17,912



405



3.02


Senior and subordinated notes


30,371



551



2.42



30,897



923



3.98


Other borrowings and liabilities


3,147



35



1.50



3,228



53



2.19


Total interest-bearing liabilities


$

309,649



$

2,602



1.12



$

282,082



$

3,969



1.88


Net interest income/spread




$

17,040



5.86





$

17,274



6.48


Impact of non-interest-bearing funding






0.20







0.32


Net interest margin






6.06

%






6.80

%

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics














2020 Q3 vs.


Nine Months Ended September 30,



2020


2020


2020


2019


2019


2020


2019


2020


2019


2020 vs.

(Dollars in millions, except as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3

2019

Loans Held for Investment (Period-End)





















Credit card:





















   Domestic credit card(7)


$

95,541



$

99,390



$

109,549



$

118,606



$

104,664



(4)

%


(9)

%


$

95,541



$

104,664



(9)

%

   International card businesses


8,100



7,920



8,248



9,630



9,017



2



(10)



8,100



9,017



(10)


Total credit card(1)


103,641



107,310



117,797



128,236



113,681



(3)



(9)



103,641



113,681



(9)


Consumer banking:





















   Auto


65,394



63,319



61,364



60,362



59,278



3



10



65,394



59,278



10


   Retail banking


3,294



3,393



2,669



2,703



2,737



(3)



20



3,294



2,737



20


Total consumer banking


68,688



66,712



64,033



63,065



62,015



3



11



68,688



62,015



11


Commercial banking:





















   Commercial and multifamily real estate


31,197



30,953



32,373



30,245



30,009



1



4



31,197



30,009



4


   Commercial and industrial


44,697



46,537



48,787



44,263



43,650



(4)



2



44,697



43,650



2


Total commercial banking


75,894



77,490



81,160



74,508



73,659



(2)



3



75,894



73,659



3


Total loans held for investment


$

248,223



$

251,512



$

262,990



$

265,809



$

249,355



(1)





$

248,223



$

249,355




Loans Held for Investment (Average)





















Credit card:





















   Domestic credit card


$

97,306



$

100,996



$

113,711



$

112,965



$

103,426



(4)

%


(6)

%


$

103,980



$

102,677



1

%

   International card businesses


8,061



7,752



9,065



9,120



8,945



4



(10)



8,292



8,868



(6)


Total credit card(1)


105,367



108,748



122,776



122,085



112,371



(3)



(6)



112,272



111,545



1


Consumer banking:





















   Auto


64,476



61,798



61,005



59,884



58,517



4



10



62,434



57,282



9


   Retail banking


3,346



3,053



2,666



2,712



2,752



10



22



3,023



2,790



8


Total consumer banking


67,822



64,851



63,671



62,596



61,269



5



11



65,457



60,072



9


Commercial banking:





















   Commercial and multifamily real estate


30,918



31,723



31,081



30,173



29,698



(3)



4



31,239



29,418



6


   Commercial and industrial


45,404



48,036



45,361



44,016



42,807



(5)



6



46,264



42,474



9


   Total commercial lending


76,322



79,759



76,442



74,189



72,505



(4)



5



77,503



71,892



8


   Small-ticket commercial real estate










2



**



**





93



**


Total commercial banking


76,322



79,759



76,442



74,189



72,507



(4)



5



77,503



71,985



8


Total average loans held for investment


$

249,511



$

253,358



$

262,889



$

258,870



$

246,147



(2)



1



$

255,232



$

243,602



5




















2020 Q3 vs.


Nine Months Ended September 30,



2020


2020



2020


2019


2019


2020


2019


2020


2019


2020 vs.



Q3


Q2



Q1


Q4


Q3


Q2


Q3

2019

Net Charge-Off Rates




























Credit card:




























   Domestic credit card



3.64

%



4.53

%



4.68

%



4.32

%



4.12

%


(89)

bps


(48)

bps



4.31

%



4.67

%


(36)

bps

   International card businesses



2.89




3.47




4.65




4.22




3.78



(58)



(89)




3.71




3.54



17


Total credit card



3.58




4.46




4.68




4.31




4.09



(88)



(51)




4.26




4.58



(32)


Consumer banking:




























   Auto



0.23




1.16




1.51




1.90




1.60



(93)



(137)




0.95




1.38



(43)


   Retail banking



1.38




1.78




2.37




2.77




2.55



(40)



(117)




1.80




2.51



(71)


Total consumer banking



0.28




1.19




1.54




1.93




1.64



(91)



(136)




0.99




1.43



(44)


Commercial banking:




























   Commercial and multifamily real estate



0.41




0.09










0.02



32



39




0.17




0.01



16


   Commercial and industrial



0.45




0.78




0.96




0.60




0.55



(33)



(10)




0.73




0.28



45


Total commercial banking



0.43




0.51




0.57




0.35




0.33



(8)



10




0.50




0.17



33


Total net charge-offs



1.72




2.38




2.72




2.60




2.38



(66)



(66)




2.28




2.50



(22)


30+ Day Performing Delinquency Rates(2)




























Credit card:




























   Domestic credit card



2.21

%



2.74

%



3.69

%



3.93

%



3.71

%


(53)

bps


(150)

bps



2.21

%



3.71

%


(150)

bps

   International card businesses



2.15




2.71




3.66




3.47




3.52



(56)



(137)




2.15




3.52



(137)


Total credit card



2.20




2.74




3.69




3.89




3.69



(54)



(149)




2.20




3.69



(149)


Consumer banking:




























   Auto



3.76




3.28




5.29




6.88




6.47



48



(271)




3.76




6.47



(271)


   Retail banking



0.83




0.89




1.27




1.02




1.01



(6)



(18)




0.83




1.01



(18)


Total consumer banking



3.62




3.16




5.12




6.63




6.23



46



(261)




3.62




6.23



(261)


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




























Credit card:




























   International card businesses



0.25

%



0.29

%



0.29

%



0.26

%



0.25

%


(4)

bps





0.25

%



0.25

%



Total credit card



0.02




0.02




0.02




0.02




0.02








0.02




0.02




Consumer banking:




























   Auto



0.36




0.41




0.62




0.81




0.73



(5)



(37)

bps



0.36




0.73



(37)

bps

   Retail banking



0.77




0.70




0.88




0.87




0.91



7



(14)




0.77




0.91



(14)


Total consumer banking



0.38




0.43




0.63




0.81




0.74



(5)



(36)




0.38




0.74



(36)


Commercial banking:




























   Commercial and multifamily real estate



0.58




0.54




0.22




0.12




0.12



4



46




0.58




0.12



46


   Commercial and industrial



1.31




1.06




0.87




0.93




0.95



25



36




1.31




0.95



36


Total commercial banking



1.01




0.85




0.61




0.60




0.61



16



40




1.01




0.61



40


Total nonperforming loans



0.42




0.38




0.35




0.37




0.37



4



5




0.42




0.37



5


Total nonperforming assets



0.44




0.39




0.37




0.39




0.40



5



4




0.44




0.40



4


 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




Three Months Ended September 30, 2020



Credit Card


Consumer Banking





(Dollars in millions)


Domestic
Card


International
Card
Businesses


Total Credit
Card


Auto


Retail
Banking


Total
Consumer
Banking


Commercial
Banking


Total

Allowance for credit losses:

















Balance as of June 30, 2020


$

11,569



$

522



$

12,091



$

2,726



$

112



$

2,838



$

1,903



$

16,832


Charge-offs


(1,198)



(98)



(1,296)



(280)



(15)



(295)



(88)



(1,679)


Recoveries


313



40



353



244



3



247



6



606


Net charge-offs


(885)



(58)



(943)



(36)



(12)



(48)



(82)



(1,073)


Provision (benefit) for credit losses


378



72



450



(43)





(43)



(51)



356


Allowance build (release) for credit losses


(507)



14



(493)



(79)



(12)



(91)



(133)



(717)


Other changes(5)




14



14











14


Balance as of September 30, 2020


11,062



550



11,612



2,647



100



2,747



1,770



16,129


Reserve for unfunded lending commitments:

















Balance as of June 30, 2020














218



218


Benefit for losses on unfunded lending commitments














(23)



(23)


Balance as of September 30, 2020














195



195


Combined allowance and reserve as of September 30, 2020


$

11,062



$

550



$

11,612



$

2,647



$

100



$

2,747



$

1,965



$

16,324






Nine Months Ended September 30, 2020



Credit Card


Consumer Banking





(Dollars in millions)


Domestic
Card


International
Card
Businesses


Total Credit
Card


Auto


Retail
Banking


Total
Consumer
Banking


Commercial
Banking


Total

Allowance for credit losses:

















Balance as of December 31, 2019


$

4,997



$

398



$

5,395



$

984



$

54



$

1,038



$

775



$

7,208


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


2,237



4



2,241



477



25



502



102



2,845


Finance charge and fee reserve reclassification(1)


439



23



462











462


Balance as of January 1, 2020


7,673



425



8,098



1,461



79



1,540



877



10,515


Charge-offs


(4,406)



(351)



(4,757)



(1,155)



(52)



(1,207)



(303)



(6,267)


Recoveries


1,047



120



1,167



710



11



721



10



1,898


Net charge-offs


(3,359)



(231)



(3,590)



(445)



(41)



(486)



(293)



(4,369)


Provision for credit losses


6,748



348



7,096



1,631



62



1,693



1,186



9,975


Allowance build for credit losses


3,389



117



3,506



1,186



21



1,207



893



5,606


Other changes(5)




8



8











8


Balance as of September 30, 2020


11,062



550



11,612



2,647



100



2,747



1,770



16,129


Reserve for unfunded lending commitments:

















Balance as of December 31, 2019










5



5



130



135


Cumulative effects from adoption of the CECL standard










(5)



(5)



42



37


Balance as of January 1, 2020














172



172


Provision for losses on unfunded lending commitments














23



23


Balance as of September 30, 2020














195



195


Combined allowance and reserve as of September 30, 2020


$

11,062



$

550



$

11,612



$

2,647



$

100



$

2,747



$

1,965



$

16,324


 

 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results




Three Months Ended September 30, 2020


Nine Months Ended September 30, 2020

(Dollars in millions)


Credit
Card


Consumer
Banking


Commercial
Banking(6)


Other(6)


Total


Credit
Card


Consumer
Banking


Commercial
Banking(6)


Other(6)


Total

Net interest income (loss)


$

3,292



$

1,904



$

517



$

(158)



$

5,555



$

10,363



$

5,226



$

1,526



$

(75)



$

17,040


Non-interest income


1,013



107



237



469



1,826



2,769



330



655



392



4,146


Total net revenue


4,305



2,011



754



311



7,381



13,132



5,556



2,181



317



21,186


Provision (benefit) for credit losses


450



(43)



(74)



(2)



331



7,096



1,693



1,209



2



10,000


Non-interest expense


2,003



1,011



424



110



3,548



6,180



3,038



1,261



568



11,047


Income (loss) from continuing operations before income taxes


1,852



1,043



404



203



3,502



(144)



825



(289)



(253)



139


Income tax provision (benefit)


438



247



95



316



1,096



(34)



195



(69)



(102)



(10)


Income (loss) from continuing operations, net of tax


$

1,414



$

796



$

309



$

(113)



$

2,406



$

(110)



$

630



$

(220)



$

(151)



$

149

























Three Months Ended June 30, 2020











(Dollars in millions)


Credit
Card


Consumer
Banking


Commercial
Banking(6)


Other(6)


Total











Net interest income (loss)


$

3,369



$

1,665



$

518



$

(92)



$

5,460












Non-interest income (loss)


845



97



180



(26)



1,096












Total net revenue (loss)


4,214



1,762



698



(118)



6,556












Provision (benefit) for credit losses


2,944



876



427



(1)



4,246












Non-interest expense


1,969



1,036



425



340



3,770












Loss from continuing operations before income taxes


(699)



(150)



(154)



(457)



(1,460)












Income tax benefit


(166)



(36)



(36)



(305)



(543)












Loss from continuing operations, net of tax


$

(533)



$

(114)



$

(118)



$

(152)



$

(917)



































Three Months Ended September 30, 2019


Nine Months Ended September 30, 2019

(Dollars in millions)


Credit
Card


Consumer
Banking


Commercial
Banking(6)


Other(6)


Total


Credit
Card


Consumer
Banking


Commercial
Banking(6)


Other(6)


Total

Net interest income


$

3,546



$

1,682



$

486



$

23



$

5,737



$

10,667



$

5,070



$

1,489



$

48



$

17,274


Non-interest income (loss)


870



165



221



(34)



1,222



2,858



491



608



(65)



3,892


Total net revenue (loss)


4,416



1,847



707



(11)



6,959



13,525



5,561



2,097



(17)



21,166


Provision for credit losses


1,087



203



93





1,383



3,571



603



244





4,418


Non-interest expense


2,360



985



414



113



3,872



6,784



2,981



1,258



299



11,322


Income (loss) from continuing operations before income taxes


969



659



200



(124)



1,704



3,170



1,977



595



(316)



5,426


Income tax provision (benefit)


235



154



46



(60)



375



747



461



138



(275)



1,071


Income (loss) from continuing operations, net of tax


$

734



$

505



$

154



$

(64)



$

1,329



$

2,423



$

1,516



$

457



$

(41)



$

4,355























 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business













2020 Q3 vs.


Nine Months Ended September 30,



2020


2020


2020


2019


2019


2020


2019






2020 vs.

(Dollars in millions, except as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2020


2019


2019

Credit Card





















Earnings:





















Net interest income


$

3,292



$

3,369



$

3,702



$

3,794



$

3,546



(2)

%


(7)

%


$

10,363



$

10,667



(3)

%

Non-interest income


1,013



845



911



1,030



870



20



16



2,769



2,858



(3)


Total net revenue


4,305



4,214



4,613



4,824



4,416



2



(3)



13,132



13,525



(3)


Provision for credit losses


450



2,944



3,702



1,421



1,087



(85)



(59)



7,096



3,571



99


Non-interest expense


2,003



1,969



2,208



2,487



2,360



2



(15)



6,180



6,784



(9)


Income (loss) from continuing operations before income taxes


1,852



(699)



(1,297)



916



969



**



91



(144)



3,170



**


Income tax provision (benefit)


438



(166)



(306)



212



235



**



86



(34)



747



**


Income (loss) from continuing operations, net of tax


$

1,414



$

(533)



$

(991)



$

704



$

734



**



93



$

(110)



$

2,423



**


Selected performance metrics:





















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


$

103,641



$

107,310



$

117,797



$

128,236



$

113,681



(3)



(9)



$

103,641



$

113,681



(9)


Average loans held for investment(1)


105,367



108,748



122,776



122,085



112,371



(3)



(6)



112,272



111,545



1


Average yield on loans held for investment(8)


13.83

%


13.72

%


14.46

%


15.02

%


15.55

%


11

bps


(172)

bps


14.03

%


15.66

%


(163)

bps

Total net revenue margin(9)


16.34



15.50



15.03



15.80



15.72



84



62



15.59



16.17



(58)


Net charge-off rate


3.58



4.46



4.68



4.31



4.09



(88)



(51)



4.26



4.58



(32)


30+ day performing delinquency rate


2.20



2.74



3.69



3.89



3.69



(54)



(149)



2.20



3.69



(149)


30+ day delinquency rate


2.21



2.75



3.70



3.91



3.71



(54)



(150)



2.21



3.71



(150)


Nonperforming loan rate(3)


0.02



0.02



0.02



0.02



0.02







0.02



0.02




Purchase volume(10)


$

107,102



$

90,149



$

99,920



$

116,631



$

108,034



19

%


(1)

%


$

297,171



$

308,134



(4)

%
















































2020 Q3 vs.


Nine Months Ended September 30,



2020


2020


2020


2019


2019


2020


2019






2020 vs.

(Dollars in millions, except as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2020


2019


2019

Domestic Card





















Earnings:





















Net interest income


$

2,995



$

3,094



$

3,381



$

3,473



$

3,299



(3)

%


(9)

%


$

9,470



$

9,792



(3)

%

Non-interest income


952



795



842



962



878



20



8



2,589



2,722



(5)


Total net revenue


3,947



3,889



4,223



4,435



4,177



1



(6)



12,059



12,514



(4)


Provision for credit losses


378



2,906



3,464



1,346



1,010



(87)



(63)



6,748



3,325



103


Non-interest expense


1,802



1,776



1,984



2,249



2,076



1



(13)



5,562



6,059



(8)


Income (loss) from continuing operations before income taxes


1,767



(793)



(1,225)



840



1,091



**



62



(251)



3,130



**


Income tax provision (benefit)


419



(188)



(290)



196



254



**



65



(59)



729



**


Income (loss) from continuing operations, net of tax


$

1,348



$

(605)



$

(935)



$

644



$

837



**



61



$

(192)



$

2,401



**


Selected performance metrics:





















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


$

95,541



$

99,390



$

109,549



$

118,606



$

104,664



(4)



(9)



$

95,541



$

104,664



(9)


Average loans held for investment(1)


97,306



100,996



113,711



112,965



103,426



(4)



(6)



103,980



102,677



1


Average yield on loans held for investment(8)


13.57

%


13.52

%


14.30

%


14.91

%


15.74

%


5

bps


(217)

bps


13.82

%


15.67

%


(185)

bps

Total net revenue margin(9)


16.22



15.40



14.86



15.70



16.15



82



7



15.46



16.25



(79)


Net charge-off rate


3.64



4.53



4.68



4.32



4.12



(89)



(48)



4.31



4.67



(36)


30+ day performing delinquency rate


2.21



2.74



3.69



3.93



3.71



(53)



(150)



2.21



3.71



(150)


Purchase volume(10)


$

98,107



$

82,860



$

92,248



$

107,154



$

99,087



18

%


(1)

%


$

273,215



$

282,878



(3)

%

Refreshed FICO scores:(11)





















Greater than 660


69

%


67

%


65

%


67

%


68

%


2



1



69

%


68

%


1


660 or below


31



33



35



33



32



(2)



(1)



31



32



(1)


Total


100

%


100

%


100

%


100

%


100

%






100

%


100

%



 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business














2020 Q3 vs.


Nine Months Ended September 30,



2020


2020


2020


2019


2019


2020


2019






2020 vs.

(Dollars in millions, except as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2020


2019


2019

Consumer Banking





















Earnings:





















Net interest income


$

1,904



$

1,665



$

1,657



$

1,662



$

1,682



14

%


13

%


$

5,226



$

5,070



3

%

Non-interest income


107



97



126



152



165



10



(35)



330



491



(33)


Total net revenue


2,011



1,762



1,783



1,814



1,847



14



9



5,556



5,561




Provision (benefit) for credit losses


(43)



876



860



335



203



**



**



1,693



603



181


Non-interest expense


1,011



1,036



991



1,110



985



(2)



3



3,038



2,981



2


Income (loss) from continuing operations before income taxes


1,043



(150)



(68)



369



659



**



58



825



1,977



(58)


Income tax provision (benefit)


247



(36)



(16)



86



154



**



60



195



461



(58)


Income (loss) from continuing operations, net of tax


$

796



$

(114)



$

(52)



$

283



$

505



**



58



$

630



$

1,516



(58)


Selected performance metrics:





















Period-end loans held for investment


$

68,688



$

66,712



$

64,033



$

63,065



$

62,015



3



11



$

68,688



$

62,015



11


Average loans held for investment


67,822



64,851



63,671



62,596



61,269



5



11



65,457



60,072



9


Average yield on loans held for investment(8)


8.36

%


8.41

%


8.46

%


8.51

%


8.47

%


(5)

bps


(11)

bps


8.41

%


8.33

%


8

bps

Auto loan originations


$

8,979



$

8,292



$

7,640



$

7,527



$

8,175



8

%


10

%


$

24,910



$

21,723



15

%

Period-end deposits


249,684



246,804



217,607



213,099



206,423



1



21



249,684



206,423



21


Average deposits


248,418



232,293



215,071



209,783



204,933



7



21



231,988



203,404



14


Average deposits interest rate


0.66

%


0.89

%


1.06

%


1.20

%


1.31

%


(23)

bps


(65)

bps


0.86

%


1.25

%


(39)

bps

Net charge-off rate


0.28



1.19



1.54



1.93



1.64



(91)



(136)



0.99



1.43



(44)


30+ day performing delinquency rate


3.62



3.16



5.12



6.63



6.23



46



(261)



3.62



6.23



(261)


30+ day delinquency rate


3.90



3.48



5.65



7.34



6.86



42



(296)



3.90



6.86



(296)


Nonperforming loan rate(3)


0.38



0.43



0.63



0.81



0.74



(5)



(36)



0.38



0.74



(36)


Nonperforming asset rate(4)


0.43



0.46



0.71



0.91



0.83



(3)



(40)



0.43



0.83



(40)


Auto—At origination FICO scores:(12)





















Greater than 660


46

%


46

%


47

%


48

%


48

%




(2)

%


46

%


48

%


(2)

%

621 - 660


20



20



20



20



20







20



20




620 or below


34



34



33



32



32





2



34



32



2


Total


100

%


100

%


100

%


100

%


100

%






100

%


100

%
























 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business














2020 Q3 vs.


Nine Months Ended September 30,



2020


2020


2020


2019


2019


2020


2019






2020 vs.

(Dollars in millions, except as noted)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2020


2019


2019

Commercial Banking





















Earnings:





















Net interest income


$

517



$

518



$

491



$

494



$

486





6

%


$

1,526



$

1,489



2

%

Non-interest income


237



180



238



223



221



32

%


7



655



608



8


Total net revenue(6)


754



698



729



717



707



8



7



2,181



2,097



4


Provision (benefit) for credit losses


(74)



427



856



62



93



**



**



1,209



244



**


Non-interest expense


424



425



412



441



414





2



1,261



1,258




Income (loss) from continuing operations before income taxes


404



(154)



(539)



214



200



**



102



(289)



595



**


Income tax provision (benefit)


95



(36)



(128)



50



46



**



107



(69)



138



**


Income (loss) from continuing operations, net of tax


$

309



$

(118)



$

(411)



$

164



$

154



**



101



$

(220)



$

457



**


Selected performance metrics:





















Period-end loans held for investment


$

75,894



$

77,490



$

81,160



$

74,508



$

73,659



(2)



3



$

75,894



$

73,659



3


Average loans held for investment


76,322



79,759



76,442



74,189



72,507



(4)



5



77,503



71,985



8


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


2.82

%


3.00

%


3.88

%


4.22

%


4.45

%


(18)

bps


(163)

bps


3.23

%


4.61

%


(138)

bps

Period-end deposits


$

36,783



$

35,669



$

32,822



$

32,134



$

30,923



3

%


19

%


$

36,783



$

30,923



19

%

Average deposits


36,278



34,635



32,238



32,034



30,693



5



18



34,391



30,957



11


Average deposits interest rate


0.25

%


0.30

%


0.89

%


1.10

%


1.25

%


(5)

bps


(100)

bps


0.47

%


1.21

%


(74)

bps

Net charge-off rate


0.43



0.51



0.57



0.35



0.33



(8)



10



0.50



0.17



33


Nonperforming loan rate(3)


1.01



0.85



0.61



0.60



0.61



16



40



1.01



0.61



40


Nonperforming asset rate(4)


1.01



0.85



0.61



0.60



0.61



16



40



1.01



0.61



40


Risk category:(13)





















Noncriticized


$

68,533



$

70,881



$

77,714



$

71,848



$

71,144



(3)

%


(4)

%


$

68,533



$

71,144



(4)

%

Criticized performing


6,593



5,949



2,952



2,181



2,035



11



**



6,593



2,035



**


Criticized nonperforming


768



660



494



448



449



16



71



768



449



71


PCI loans








31



31





**





31



**


Total commercial banking loans


$

75,894



$

77,490



$

81,160



$

74,508



$

73,659



(2)



3



$

75,894



$

73,659



3


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

















Noncriticized


90.3

%


91.4

%


95.8

%


96.5

%


96.6

%


(110)

bps


(630)

bps


90.3

%


96.6

%


(630)

bps

Criticized performing


8.7



7.7



3.6



2.9



2.8



100



590



8.7



2.8



590


Criticized nonperforming


1.0



0.9



0.6



0.6



0.6



10



40



1.0



0.6



40


Total commercial banking loans


100.0

%


100.0

%


100.0

%


100.0

%


100.0

%






100.0

%


100.0

%









































 

 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total














2020 Q3 vs.


Nine Months Ended September 30,



2020


2020


2020


2019


2019


2020


2019






2020 vs.

(Dollars in millions)


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2020


2019


2019

Other





















Earnings:





















Net interest income (loss)


$

(158)



$

(92)



$

175



$

116



$

23



72

%


**



$

(75)



$

48



**


Non-interest income (loss)


469



(26)



(51)



(44)



(34)



**



**



392



(65)



**


Total net revenue (loss)(6)


311



(118)



124



72



(11)



**



**



317



(17)



**


Provision (benefit) for credit losses


(2)



(1)



5







100



**



2





**


Non-interest expense(14)(15)


110



340



118



123



113



(68)



(3)

%


568



299



90

%

Income (loss) from continuing operations before income taxes


203



(457)



1



(51)



(124)



**



**



(253)



(316)



(20)


Income tax provision (benefit)


316



(305)



(113)



(78)



(60)



**



**



(102)



(275)



(63)


Income (loss) from continuing operations, net of tax


$

(113)



$

(152)



$

114



$

27



$

(64)



(26)



77



$

(151)



$

(41)



**


Selected performance metrics:





















Period-end deposits


$

19,258



$

21,765



$

19,260



$

17,464



$

19,802



(12)



(3)



$

19,258



$

19,802



(3)


Average deposits


20,820



21,416



17,344



18,223



19,456



(3)



7



19,863



19,028



4


Total





















Earnings:





















Net interest income


$

5,555



$

5,460



$

6,025



$

6,066



$

5,737



2

%


(3)

%


$

17,040



$

17,274



(1)

%

Non-interest income


1,826



1,096



1,224



1,361



1,222



67



49



4,146



3,892



7


Total net revenue


7,381



6,556



7,249



7,427



6,959



13



6



21,186



21,166




Provision for credit losses


331



4,246



5,423



1,818



1,383



(92)



(76)



10,000



4,418



126


Non-interest expense


3,548



3,770



3,729



4,161



3,872



(6)



(8)



11,047



11,322



(2)


Income (loss) from continuing operations before income taxes


3,502



(1,460)



(1,903)



1,448



1,704



**



106



139



5,426



(97)


Income tax provision (benefit)


1,096



(543)



(563)



270



375



**



192



(10)



1,071



**


Income (loss) from continuing operations, net of tax


$

2,406



$

(917)



$

(1,340)



$

1,178



$

1,329



**



81



$

149



$

4,355



(97)


Selected performance metrics:





















Period-end loans held for investment


$

248,223