COF
$97.69
Capital One Financial
($1.63)
(1.64%)
Earnings Details
3rd Quarter September 2022
Thursday, October 27, 2022 4:05:00 PM
Tweet Share Watch
Summary

Capital One Financial Misses

Capital One Financial (COF) reported 3rd Quarter September 2022 earnings of $4.20 per share on revenue of $10.0 billion. The consensus earnings estimate was $5.03 per share on revenue of $8.5 billion. The Earnings Whisper number was $4.86 per share. Revenue grew 21.8% on a year-over-year basis.

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
$4.20
Earnings Whisper
$4.86
Consensus Estimate
$5.03
Reported Revenue
$10.00 Bil
Revenue Estimate
$8.54 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Capital One Reports Third Quarter 2022 Net Income of $1.7 billion, or $4.20 per share

MCLEAN, Va., Oct. 27, 2022 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2022 of $1.7 billion, or $4.20 per diluted common share, compared with net income of $2.0 billion, or $4.96 per diluted common share in the second quarter of 2022, and with net income of $3.1 billion, or $6.78 per diluted common share in the third quarter of 2021.

Capital_One_Logo

"We delivered strong growth and revenue in the third quarter, and we continue to see opportunities to lean into marketing and resilient asset growth that can deliver sustained revenue annuities," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "We're in a strong position to deliver compelling long-term shareholder value as modern digital technology continues to transform banking."

All comparisons below are for the third quarter of 2022 compared with the second quarter of 2022 unless otherwise noted.

Third Quarter 2022 Income Statement Summary:

  • Total net revenue increased 7 percent to $8.8 billion.
  • Total non-interest expense increased 8 percent to $4.9 billion:
    • 2 percent decrease in marketing.
    • 11 percent increase in operating expenses.
  • Pre-provision earnings increased 6 percent to $3.9 billion.(1)
  • Provision for credit losses increased $584 million to $1.7 billion:
    • Net charge-offs of $931 million.
    • $734 million loan reserve build.
  • Net interest margin of 6.80 percent, an increase of 26 basis points.
  • Efficiency ratio of 56.21 percent.
  • Operating efficiency ratio of 45.10 percent.

Third Quarter 2022 Balance Sheet Summary:

  • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.2 percent at September 30, 2022.
  • Period-end loans held for investment in the quarter increased $7.6 billion, or 3 percent, to $303.9 billion.
    • Credit Card period-end loans increased $6.0 billion, or 5 percent, to $126.9 billion.
      • Domestic Card period-end loans increased $6.3 billion, or 5 percent, to $121.3 billion.
    • Consumer Banking period-end loans decreased $332 million, or less than 1 percent, to $81.2 billion.
      • Auto period-end loans decreased $346 million, or less than 1 percent, to $79.6 billion.
    • Commercial Banking period-end loans increased $1.9 billion, or 2 percent, to $95.8 billion.
  • Average loans held for investment in the quarter increased $14.1 billion, or 5 percent, to $300.2 billion.
    • Credit Card average loans increased $7.5 billion, or 6 percent, to $123.4 billion.
      • Domestic Card average loans increased $7.5 billion, or 7 percent, to $117.5 billion.
    • Consumer Banking average loans increased $358 million, or less than 1 percent, to $81.3 billion.
      • Auto average loans increased $428 million, or 1 percent, to $79.7 billion.
    • Commercial Banking average loans increased $6.2 billion, or 7 percent, to $95.5 billion.
  • Period-end total deposits increased $9.3 billion, or 3 percent, to $317.2 billion, while average deposits increased $6.0 billion, or 2 percent, to $311.9 billion.
  • Interest-bearing deposits rate paid increased 56 basis points to 1.00 percent.

 

(1)

Pre-provision earnings is calculated based on the sum of net interest income and non-interest income, less non-interest expense for the period. Management believes that this financial metric is useful in enabling investors and others to assess the Company's ability to generate income to cover credit losses through a credit cycle, which can vary significantly between periods.

 

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on October 27, 2022 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 10, 2022 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, 2021.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $317.2 billion in deposits and $444.2 billion in total assets as of September 30, 2022. 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 2022

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

6








Table 5:

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

8








Table 6:

Average Balances, Net Interest Income and Net Interest Margin

9








Table 7:

Loan Information and Performance Statistics

10








Table 8:

Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

12







Business Segment Results







Table 9:

Financial Summary—Business Segment Results

13








Table 10:

Financial & Statistical Summary—Credit Card Business

14








Table 11:

Financial & Statistical Summary—Consumer Banking Business

16








Table 12:

Financial & Statistical Summary—Commercial Banking Business

17








Table 13:

Financial & Statistical Summary—Other and Total

18







Other







Table 14:

Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)

19








Table 15:

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

20







__________

(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, 2022 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














2022 Q3 vs.


Nine Months Ended September 30,

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


2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.

2021











Income Statement





















Net interest income


$      7,003


$      6,517


$      6,397


$      6,450


$      6,156


7 %


14 %


$    19,917


$    17,721


12 %

Non-interest income


1,802


1,715


1,776


1,668


1,674


5


8


5,293


4,596


15

Total net revenue(1)


8,805


8,232


8,173


8,118


7,830


7


12


25,210


22,317


13

Provision (benefit) for credit losses


1,669


1,085


677


381


(342)


54


**


3,431


(2,325)


**

Non-interest expense:





















Marketing


978


1,003


918


999


751


(2)


30


2,899


1,872


55

Operating expense


3,971


3,580


3,633


3,679


3,435


11


16


11,184


10,020


12

Total non-interest expense


4,949


4,583


4,551


4,678


4,186


8


18


14,083


11,892


18

Income from continuing operations before income taxes


2,187


2,564


2,945


3,059


3,986


(15)


(45)


7,696


12,750


(40)

Income tax provision


493


533


542


633


882


(8)


(44)


1,568


2,782


(44)

Income from continuing operations, net of tax


1,694


2,031


2,403


2,426


3,104


(17)


(45)


6,128


9,968


(39)

Income (loss) from discontinued operations, net of tax





(1)






(3)


**

Net income


1,694


2,031


2,403


2,425


3,104


(17)


(45)


6,128


9,965


(39)

Dividends and undistributed earnings allocated to participating securities(2)


(21)


(25)


(28)


(21)


(26)


(16)


(19)


(74)


(84)


(12)

Preferred stock dividends


(57)


(57)


(57)


(74)


(79)



(28)


(171)


(200)


(15)

Issuance cost for redeemed preferred stock(3)





(34)


(12)



**



(12)


**

Net income available to common stockholders


$      1,616


$      1,949


$      2,318


$      2,296


$      2,987


(17)


(46)


$      5,883


$      9,669


(39)

Common Share Statistics





















Basic earnings per common share:(2)





















Net income from continuing operations


$       4.21


$       4.98


$       5.65


$       5.43


$       6.81


(15) %


(38) %


$      14.90


$      21.53


(31) %

Income (loss) from discontinued operations










(0.01)


**

Net income per basic common share


$       4.21


$       4.98


$       5.65


$       5.43


$       6.81


(15)


(38)


$      14.90


$      21.52


(31)

Diluted earnings per common share:(2)





















Net income from continuing operations


$       4.20


$       4.96


$       5.62


$       5.41


$       6.78


(15) %


(38) %


$      14.84


$      21.45


(31) %

Income (loss) from discontinued operations










(0.01)


**

Net income per diluted common share


$       4.20


$       4.96


$       5.62


$       5.41


$       6.78


(15)


(38)


$      14.84


$      21.44


(31)

Weighted-average common shares outstanding (in millions):





















Basic


383.4


391.2


410.4


422.5


438.8


(2) %


(13) %


394.9


449.2


(12) %

Diluted


384.6


392.6


412.2


424.3


440.5


(2)


(13)


396.4


450.9


(12)

Common shares outstanding (period-end, in millions)


382.0


383.8


399.0


413.9


430.4



(11)


382.0


430.4


(11)

Dividends declared and paid per common share


$       0.60


$       0.60


$       0.60


$       0.60


$       1.20



(50)


$       1.80


$       2.00


(10)

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


81.38


87.84


91.77


99.74


99.60


(7)


(18)


81.38


99.60


(18)















2022 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions)


2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.

2021











Balance Sheet (Period-End)





















Loans held for investment


$  303,943


$  296,384


$  280,466


$  277,340


$  261,390


3 %


16 %


$  303,943


$  261,390


16 %

Interest-earning assets


415,262


406,565


398,241


397,341


387,208


2


7


415,262


387,208


7

Total assets


444,232


440,288


434,195


432,381


425,377


1


4


444,232


425,377


4

Interest-bearing deposits


282,802


270,881


275,648


272,937


269,134


4


5


282,802


269,134


5

Total deposits


317,193


307,885


313,429


310,980


305,938


3


4


317,193


305,938


4

Borrowings


54,607


58,938


45,358


43,086


37,501


(7)


46


54,607


37,501


46

Common equity


46,015


48,564


51,499


56,184


57,632


(5)


(20)


46,015


57,632


(20)

Total stockholders' equity


50,861


53,410


56,345


61,029


63,544


(5)


(20)


50,861


63,544


(20)

Balance Sheet (Average Balances)





















Loans held for investment


$  300,186


$  286,110


$  275,342


$  267,159


$  253,101


5 %


19 %


$  287,304


$  247,867


16 %

Interest-earning assets


412,171


398,934


394,082


390,868


387,766


3


6


401,793


388,820


3

Total assets


447,088


435,327


430,372


427,845


424,506


3


5


437,523


423,457


3

Interest-bearing deposits


275,900


268,104


271,823


269,951


269,278


3


2


271,957


272,022


Total deposits


311,928


305,954


309,597


307,272


305,035


2


2


309,168


306,102


1

Borrowings


58,628


53,208


42,277


39,943


37,464


10


56


51,431


38,134


35

Common equity


49,696


49,319


54,591


56,946


58,230


1


(15)


51,184


56,972


(10)

Total stockholders' equity


54,541


54,165


59,437


62,498


64,682


1


(16)


56,030


62,575


(10)

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated














2022 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions, except as noted)


2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.

2021











Performance Metrics





















Net interest income growth (period over period)


7 %


2 %


(1) %


5 %


7 %


**


**


12 %


4 %


**

Non-interest income growth (period over period)


5


(3)


6



3


**


**


15


11


**

Total net revenue growth (period over period)


7


1


1


4


6


**


**


13


5


**

Total net revenue margin(5)


8.55


8.25


8.30


8.31


8.08


30 bps


47 bps


8.37


7.65


72 bps

Net interest margin(6)


6.80


6.54


6.49


6.60


6.35


26


45


6.61


6.08


53

Return on average assets


1.52


1.87


2.23


2.27


2.92


(35)


(140)


1.87


3.14


(127)

Return on average tangible assets(7)


1.57


1.93


2.31


2.35


3.03


(36)


(146)


1.93


3.25


(132)

Return on average common equity(8)


13.01


15.81


16.98


16.13


20.52


(3) %


(8) %


15.33


22.64


(7) %

Return on average tangible common equity(9)


18.59


22.63


23.36


21.82


27.50


(4)


(9)


21.62


30.57


(9)

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


6.59


6.41


6.61


7.00


6.62


18 bps


(3) bps


6.54


6.40


14 bps

Efficiency ratio(10)


56.21


55.67


55.68


57.63


53.46


54


275


55.86


53.29


257

Operating efficiency ratio(11)


45.10


43.49


44.45


45.32


43.87


161


123


44.36


44.90


(54)

Effective income tax rate for continuing operations


22.5


20.8


18.4


20.7


22.1


170


40


20.4


21.8


(140)

Employees (period-end, in thousands)


55.1


53.6


51.5


50.8


50.8


3 %


8 %


55.1


50.8


8 %

Credit Quality Metrics





















Allowance for credit losses


$    12,209


$    11,491


$    11,308


$    11,430


$    11,573


6 %


5 %


$    12,209


$    11,573


5 %

Allowance coverage ratio


4.02 %


3.88 %


4.03 %


4.12 %


4.43 %


14 bps


(41) bps


4.02 %


4.43 %


(41) bps

Net charge-offs


$         931


$         845


$         767


$         527


$         426


10 %


119 %


$      2,543


$      1,707


49 %

Net charge-off rate(12)


1.24 %


1.18 %


1.11 %


0.79 %


0.67 %


6 bps


57 bps


1.18 %


0.92 %


  26 bps

30+ day performing delinquency rate


2.58


2.36


2.08


2.25


1.97


22


61


2.58


1.97


61

30+ day delinquency rate


2.78


2.54


2.21


2.41


2.13


24


65


2.78


2.13


65

Capital Ratios(13)





















Common equity Tier 1 capital


12.2 %


12.1 %


12.7 %


13.1 %


13.8 %


10 bps


(160) bps


12.2 %


13.8 %


(160) bps

Tier 1 capital


13.6


13.5


14.1


14.5


15.7


10


(210)


13.6


15.7


(210)

Total capital


15.7


15.7


16.4


16.9


18.2



(250)


15.7


18.2


(250)

Tier 1 leverage


11.0


11.1


11.3


11.6


12.2


(10)


(120)


11.0


12.2


(120)

Tangible common equity ("TCE")(14)


7.2


7.9


8.7


9.9


10.4


(70)


(320)


7.2


10.4


(320)

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income














2022 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions, except as noted)


2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.

2021











Interest income:





















Loans, including loans held for sale


$      7,578


$      6,605


$      6,367


$      6,451


$      6,205


15 %


22 %


$   20,550


$   17,812


15 %

Investment securities


499


435


402


368


317


15


57


1,336


1,078


24

Other


123


55


15


12


16


124


**


193


48


**

Total interest income


8,200


7,095


6,784


6,831


6,538


16


25


22,079


18,938


17

Interest expense:





















Deposits


689


293


218


222


228


135


**


1,200


734


63

Securitized debt obligations


120


65


29


30


29


85


**


214


89


140

Senior and subordinated notes


319


194


131


121


116


64


175


644


367


75

Other borrowings


69


26


9


8


9


165


**


104


27


**

Total interest expense


1,197


578


387


381


382


107


**


2,162


1,217


78

Net interest income


7,003


6,517


6,397


6,450


6,156


7


14


19,917


17,721


12

Provision (benefit) for credit losses


1,669


1,085


677


381


(342)


54


**


3,431


(2,325)


**

Net interest income after provision for credit losses


5,334


5,432


5,720


6,069


6,498


(2)


(18)


16,486


20,046


(18)

Non-interest income:





















Interchange fees, net


1,195


1,201


1,033


1,005


1,022



17


3,429


2,855


20

Service charges and other customer-related fees


415


415


400


435


407



2


1,230


1,143


8

Other


192


99


343


228


245


94


(22)


634


598


6

Total non-interest income


1,802


1,715


1,776


1,668


1,674


5


8


5,293


4,596


15

Non-interest expense:





















Salaries and associate benefits


2,187


1,946


2,026


1,941


1,852


12


18


6,159


5,480


12

Occupancy and equipment


502


481


513


527


481


4


4


1,496


1,476


1

Marketing


978


1,003


918


999


751


(2)


30


2,899


1,872


55

Professional services


471


458


397


449


358


3


32


1,326


991


34

Communications and data processing


349


339


339


326


319


3


9


1,027


936


10

Amortization of intangibles


17


14


14


13


5


21


**


45


16


181

Other


445


342


344


423


420


30


6


1,131


1,121


1

Total non-interest expense


4,949


4,583


4,551


4,678


4,186


8


18


14,083


11,892


18

Income from continuing operations before income taxes


2,187


2,564


2,945


3,059


3,986


(15)


(45)


7,696


12,750


(40)

Income tax provision


493


533


542


633


882


(8)


(44)


1,568


2,782


(44)

Income from continuing operations, net of tax


1,694


2,031


2,403


2,426


3,104


(17)


(45)


6,128


9,968


(39)

Income (loss) from discontinued operations, net of tax





(1)






(3)


**

Net income


1,694


2,031


2,403


2,425


3,104


(17)


(45)


6,128


9,965


(39)

Dividends and undistributed earnings allocated to participating securities(2)


(21)


(25)


(28)


(21)


(26)


(16)


(19)


(74)


(84)


(12)

Preferred stock dividends


(57)


(57)


(57)


(74)


(79)



(28)


(171)


(200)


(15)

Issuance cost for redeemed preferred stock(3)





(34)


(12)



**



(12)


**

Net income available to common stockholders


$      1,616


$      1,949


$      2,318


$      2,296


$      2,987


(17)


(46)


$    5,883


$     9,669


(39)












































































2022 Q3 vs.


Nine Months Ended September 30,



2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.

2021











Basic earnings per common share:(2)





















Net income from continuing operations


$        4.21


$        4.98


$        5.65


$        5.43


$        6.81


(15) %


(38) %


$    14.90


$     21.53


(31) %

Income (loss) from discontinued operations










(0.01)


**

Net income per basic common share


$        4.21


$        4.98


$        5.65


$        5.43


$        6.81


(15)


(38)


$    14.90


$     21.52


(31)

Diluted earnings per common share:(2)





















Net income from continuing operations


$        4.20


$        4.96


$        5.62


$        5.41


$        6.78


(15)


(38)


$    14.84


$     21.45


(31)

Income (loss) from discontinued operations










(0.01)


**

Net income per diluted common share


$        4.20


$        4.96


$        5.62


$        5.41


$        6.78


(15)


(38)


$    14.84


$     21.44


(31)

Weighted-average common shares outstanding (in millions):





















Basic common shares


383.4


391.2


410.4


422.5


438.8


(2)


(13)


394.9


449.2


(12)

Diluted common shares


384.6


392.6


412.2


424.3


440.5


(2)


(13)


396.4


450.9


(12)

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets














2022 Q3 vs.



2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3

(Dollars in millions)








Assets:















Cash and cash equivalents:















Cash and due from banks


$     3,716


$     4,825


$     5,107


$     4,164


$     5,444


(23) %


(32) %

Interest-bearing deposits and other short-term investments


21,176


16,728


21,697


17,582


21,180


27


Total cash and cash equivalents


24,892


21,553


26,804


21,746


26,624


15


(7)

Restricted cash for securitization investors


399


697


281


308


234


(43)


71

Securities available for sale


75,303


83,022


89,076


95,261


98,149


(9)


(23)

Loans held for investment:















Unsecuritized loans held for investment


277,576


271,339


257,505


252,468


238,475


2


16

Loans held in consolidated trusts


26,367


25,045


22,961


24,872


22,915


5


15

Total loans held for investment


303,943


296,384


280,466


277,340


261,390


3


16

Allowance for credit losses


(12,209)


(11,491)


(11,308)


(11,430)


(11,573)


6


5

Net loans held for investment


291,734


284,893


269,158


265,910


249,817


2


17

Loans held for sale


1,729


875


1,155


5,888


6,300


98


(73)

Premises and equipment, net


4,265


4,238


4,238


4,210


4,204


1


1

Interest receivable


1,853


1,611


1,479


1,460


1,418


15


31

Goodwill


14,771


14,778


14,784


14,782


14,652



1

Other assets


29,286


28,621


27,220


22,816


23,979


2


22

Total assets


$ 444,232


$ 440,288


$ 434,195


$ 432,381


$ 425,377


1


4




























2022 Q3 vs.



2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3

(Dollars in millions)








Liabilities:















Interest payable


$        433


$        333


$        261


$        281


$        241


30 %


80 %

Deposits:















Non-interest-bearing deposits


34,391


37,004


37,781


38,043


36,804


(7)


(7)

Interest-bearing deposits


282,802


270,881


275,648


272,937


269,134


4


5

Total deposits


317,193


307,885


313,429


310,980


305,938


3


4

Securitized debt obligations


15,926


17,466


13,740


14,994


12,635


(9)


26

Other debt:















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


528


440


594


820


825


20


(36)

Senior and subordinated notes


30,615


30,489


26,976


27,219


23,983



28

Other borrowings


7,538


10,543


4,048


53


58


(29)


**

Total other debt


38,681


41,472


31,618


28,092


24,866


(7)


56

Other liabilities


21,138


19,722


18,802


17,005


18,153


7


16

Total liabilities


393,371


386,878


377,850


371,352


361,833


2


9
















Stockholders' equity:















Preferred stock


0


0


0


0


0



Common stock


7


7


7


7


7



Additional paid-in capital, net


34,579


34,425


34,286


34,112


35,051



(1)

Retained earnings


56,240


54,836


53,099


51,006


48,944


3


15

Accumulated other comprehensive income (loss)


(10,704)


(6,916)


(4,093)


374


1,360


55


**

Treasury stock, at cost


(29,261)


(28,942)


(26,954)


(24,470)


(21,818)


1


34

Total stockholders' equity


50,861


53,410


56,345


61,029


63,544


(5)


(20)

Total liabilities and stockholders' equity


$ 444,232


$ 440,288


$ 434,195


$ 432,381


$ 425,377


1


4

 

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 $222 million in Q3 2022, $211 million in Q2 2022, $192 million in Q1 2022, $151 million in Q4 2021 and $123 million in Q3 2021 for credit card finance charges and fees charged-off as uncollectible.

(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 September 1, 2021, we redeemed all outstanding shares of our fixed-to-floating rate non-cumulative perpetual preferred stock Series E, which reduced our net income available to common shareholders by $12 million in Q3 2021. On December 1, 2021, we redeemed all outstanding shares of our fixed rate 5.20% non-cumulative perpetual preferred stock Series G and our fixed rate 6.00% non-cumulative perpetual preferred stock Series H, which together reduced our net income available to common shareholders by $34 million in Q4 2021.

(4)

Tangible book value per common share is a non-GAAP measure calculated based on TCE 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 annualized net income (loss) available to common stockholders less annualized 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 is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average 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)

Capital ratios as of the end of Q3 2022 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.

(14)

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.

**    Not meaningful.

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




2022 Q3


2022 Q2


2021 Q3

(Dollars in millions, except as noted)


Average
Balance


Interest
Income/
Expense


Yield/Rate(1)


Average
Balance


Interest
Income/
Expense


Yield/Rate(1)


Average
Balance


Interest
Income/
Expense


Yield/Rate

Interest-earning assets:



















Loans, including loans held for sale


$   300,952


$      7,578


10.07 %


$   287,134


$      6,605


9.20 %


$   260,235


$      6,205


9.54 %

Investment securities


88,666


499


2.25


92,062


435


1.89


98,802


317


1.28

Cash equivalents and other


22,553


123


2.19


19,738


55


1.10


28,729


16


0.22

Total interest-earning assets


$   412,171


$      8,200


7.96


$   398,934


$      7,095


7.11


$   387,766


$      6,538


6.74

Interest-bearing liabilities:



















Interest-bearing deposits


$   275,900


$         689


1.00


$   268,104


$         293


0.44


$   269,278


$         228


0.34

Securitized debt obligations


17,108


120


2.81


15,041


65


1.73


12,420


29


0.93

Senior and subordinated notes


30,962


319


4.13


28,919


194


2.68


24,241


116


1.91

Other borrowings and liabilities


12,296


69


2.20


10,922


26


0.98


2,357


9


1.49

Total interest-bearing liabilities


$   336,266


$      1,197


1.42


$   322,986


$         578


0.72


$   308,296


$         382


0.49

Net interest income/spread




$      7,003


6.53




$      6,517


6.40




$      6,156


6.25

Impact of non-interest-bearing funding






0.27






0.14






0.10

Net interest margin






6.80 %






6.54 %






6.35 %























Nine Months Ended September 30,









2022


2021

(Dollars in millions, except as noted)








Average
Balance


Interest
Income/
Expense


Yield/Rate(1)


Average
Balance


Interest
Income/
Expense


Yield/Rate

Interest-earning assets:



















Loans, including loans held for sale








$   289,116


$     20,550


9.48 %


$   252,113


$     17,812


9.42 %

Investment securities








91,788


1,336


1.94


99,059


1,078


1.45

Cash equivalents and other








20,889


193


1.23


37,648


48


0.17

Total interest-earning assets








$   401,793


$     22,079


7.33


$   388,820


$     18,938


6.49

Interest-bearing liabilities:



















Interest-bearing deposits








$   271,957


$       1,200


0.59


$   272,022


$          734


0.36

Securitized debt obligations








15,309


214


1.87


11,851


89


1.00

Senior and subordinated notes








28,804


644


2.98


25,555


367


1.92

Other borrowings and liabilities








8,982


104


1.53


2,256


27


1.59

Total interest-bearing liabilities








$   325,052


$       2,162


0.89


$   311,684


$       1,217


0.52

Net interest income/spread










$     19,917


6.44




$     17,721


5.97

Impact of non-interest-bearing funding












0.17






0.11

Net interest margin












6.61 %






6.08 %

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics














2022 Q3 vs.


Nine Months Ended September 30,



2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.
2021

(Dollars in millions, except as noted)








Loans Held for Investment (Period-End)





















Credit card:





















   Domestic credit card


$   121,279


$   115,004


$   107,987


$   108,723


$     99,258


5 %


22 %


$ 121,279


$   99,258


22 %

   International card businesses


5,634


5,876


5,975


6,049


5,772


(4)


(2)


5,634


5,772


(2)

Total credit card


126,913


120,880


113,962


114,772


105,030


5


21


126,913


105,030


21

Consumer banking:





















   Auto


79,580


79,926


78,604


75,779


74,716



7


79,580


74,716


7

   Retail banking


1,619


1,605


1,726


1,867


2,396


1


(32)


1,619


2,396


(32)

Total consumer banking


81,199


81,531


80,330


77,646


77,112



5


81,199


77,112


5

Commercial banking:





















   Commercial and multifamily real estate


38,225


37,845


34,354


35,262


33,096


1


15


38,225


33,096


15

   Commercial and industrial


57,606


56,128


51,820


49,660


46,152


3


25


57,606


46,152


25

Total commercial banking


95,831


93,973


86,174


84,922


79,248


2


21


95,831


79,248


21

Total loans held for investment


$   303,943


$   296,384


$   280,466


$   277,340


$   261,390


3


16


$ 303,943


$ 261,390


16

Loans Held for Investment (Average)





















Credit card:





















   Domestic credit card


$   117,467


$   109,962


$   105,536


$   102,717


$     96,309


7 %


22 %


$ 111,032


$   93,493


19 %

   International card businesses


5,890


5,873


5,944


5,871


5,737



3


5,902


7,264


(19)

Total credit card


123,357


115,835


111,480


108,588


102,046


6


21


116,934


100,757


16

Consumer banking:





















   Auto


79,741


79,313


76,892


75,284


73,296


1


9


78,659


69,700


13

   Retail banking


1,598


1,668


1,797


2,160


2,700


(4)


(41)


1,687


2,969


(43)

Total consumer banking


81,339


80,981


78,689


77,444


75,996



7


80,346


72,669


11

Commercial banking:





















   Commercial and multifamily real estate


38,230


35,754


34,671


33,591


30,314


7


26


36,231


30,100


20

   Commercial and industrial


57,260


53,540


50,502


47,536


44,745


7


28


53,793


44,341


21

Total commercial banking


95,490


89,294


85,173


81,127


75,059


7


27


90,024


74,441


21

Total average loans held for investment


$   300,186


$   286,110


$   275,342


$   267,159


$   253,101


5


19


$ 287,304


$ 247,867


16
















































































2022 Q3 vs.


Nine Months Ended September 30,



2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.
2021









Net Charge-Off (Recovery) Rates





















Credit card:





















   Domestic credit card(2)


2.20 %


2.26 %


2.12 %


1.49 %


1.36 %


(6) bps


84 bps


2.19 %


2.05 %


14 bps

   International card businesses


3.30


3.82


3.20


0.14


2.72


(52)


58


3.44


2.45


99

Total credit card


2.25


2.34


2.18


1.42


1.43


(9)


82


2.26


2.08


18

Consumer banking:





















   Auto


1.05


0.61


0.66


0.58


0.18


44


87


0.77


0.17


60

   Retail banking


3.89


3.62


4.31


6.69


2.45


27


144


3.95


1.82


213

Total consumer banking


1.10


0.67


0.75


0.75


0.27


43


83


0.84


0.24


60

Commercial banking:





















   Commercial and multifamily real estate


0.03


(0.08)




0.01


11


2


(0.02)


0.04


(6)

   Commercial and industrial


0.06


0.29


0.11


(0.03)


0.07


(23)


(1)


0.15


(0.01)


16

Total commercial banking


0.05


0.14


0.06


(0.02)


0.05


(9)



0.08


0.01


7

Total net charge-offs


1.24


1.18


1.11


0.79


0.67


6


57


1.18


0.92


26

30+ Day Performing Delinquency Rates





















Credit card:





















   Domestic credit card


2.97 %


2.35 %


2.32 %


2.22 %


1.93 %


62 bps


104 bps


2.97 %


1.93 %


104 bps

   International card businesses


3.90


3.67


3.58


3.42


3.27


23


63


3.90


3.27


63

Total credit card


3.01


2.42


2.38


2.28


2.00


59


101


3.01


2.00


101

Consumer banking:





















   Auto


4.85


4.47


3.85


4.32


3.65


38


120


4.85


3.65


120

   Retail banking


0.84


0.67


0.74


1.92


1.15


17


(31)


0.84


1.15


(31)

Total consumer banking


4.77


4.39


3.78


4.26


3.58


38


119


4.77


3.58


119

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





















Credit card:





















   International card businesses


0.14 %


0.13 %


0.14 %


0.16 %


0.16 %


1 bps


(2) bps


0.14 %


0.16 %


(2) bps

Total credit card


0.01


0.01


0.01


0.01


0.01




0.01


0.01


Consumer banking:





















   Auto


0.60


0.50


0.41


0.45


0.36


10


24


0.60


0.36


24

   Retail banking


2.62


2.61


2.63


2.51


2.20


1


42


2.62


2.20


42

Total consumer banking


0.64


0.54


0.46


0.50


0.42


10


22


0.64


0.42


22

Commercial banking:





















   Commercial and multifamily real estate


0.64


0.78


0.98


1.09


0.87


(14)


(23)


0.64


0.87


(23)

   Commercial and industrial


0.53


0.64


0.69


0.64


0.68


(11)


(15)


0.53


0.68


(15)

Total commercial banking


0.57


0.70


0.81


0.82


0.76


(13)


(19)


0.57


0.76


(19)

Total nonperforming loans


0.35


0.37


0.38


0.40


0.35


(2)



0.35


0.35


Total nonperforming assets


0.37


0.39


0.40


0.41


0.37


(2)



0.37


0.37


 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




Three Months Ended September 30, 2022



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, 2022


$         7,840


$             326


$         8,166


$         1,999


$             48


$         2,047


$         1,278


$       11,491

Charge-offs


(960)


(87)


(1,047)


(389)


(21)


(410)


(13)


(1,470)

Recoveries


313


39


352


181


5


186


1


539

Net charge-offs


(647)


(48)


(695)


(208)


(16)


(224)


(12)


(931)

Provision for credit losses


1,167


94


1,261


266


19


285


119


1,665

Allowance build for credit losses


520


46


566


58


3


61


107


734

Other changes(5)


10


(26)


(16)






(16)

Balance as of September 30, 2022


8,370


346


8,716


2,057


51


2,108


1,385


12,209

Reserve for unfunded lending commitments:

















Balance as of June 30, 2022








239


239

Provision for losses on unfunded lending commitments








4


4

Balance as of September 30, 2022








243


243

Combined allowance and reserve as of September 30, 2022


$         8,370


$             346


$         8,716


$         2,057


$             51


$         2,108


$         1,628


$       12,452

 



Nine Months Ended September 30, 2022



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, 2021


$         7,968


$             377


$         8,345


$         1,852


$             66


$         1,918


$         1,167


$       11,430

Charge-offs


(2,747)


(264)


(3,011)


(1,026)


(64)


(1,090)


(73)


(4,174)

Recoveries


919


112


1,031


570


14


584


16


1,631

Net charge-offs


(1,828)


(152)


(1,980)


(456)


(50)


(506)


(57)


(2,543)

Provision for credit losses


2,220


167


2,387


661


35


696


275


3,358

Allowance build (release) for credit losses


392


15


407


205


(15)


190


218


815

Other changes(5)


10


(46)


(36)






(36)

Balance as of September 30, 2022


8,370


346


8,716


2,057


51


2,108


1,385


12,209

Reserve for unfunded lending commitments:

















Balance as of December 31, 2021








165


165

Provision for losses on unfunded lending commitments








78


78

Balance as of September 30, 2022








243


243

Combined allowance and reserve as of September 30, 2022


$         8,370


$             346


$         8,716


$         2,057


$             51


$         2,108


$         1,628


$       12,452

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results




Three Months Ended September 30, 2022


Nine Months Ended September 30, 2022

(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)


$        4,313


$       2,311


$             699


$      (320)


$      7,003


$       12,051


$       6,571


$          1,941


$      (646)


$    19,917

Non-interest income (loss)


1,454


129


319


(100)


1,802


4,322


330


868


(227)


5,293

Total net revenue (loss)


5,767


2,440


1,018


(420)


8,805


16,373


6,901


2,809


(873)


25,210

Provision (benefit) for credit losses


1,261


285


123



1,669


2,387


696


353


(5)


3,431

Non-interest expense


3,004


1,340


542


63


4,949


8,558


3,862


1,515


148


14,083

Income (loss) from continuing operations before income taxes


1,502


815


353


(483)


2,187


5,428


2,343


941


(1,016)


7,696

Income tax provision (benefit)


356


193


83


(139)


493


1,291


555


223


(501)


1,568

Income (loss) from continuing operations, net of tax


$        1,146


$          622


$             270


$      (344)


$      1,694


$        4,137


$       1,788


$             718


$      (515)


$      6,128
























Three Months Ended June 30, 2022











(Dollars in millions)


Credit Card


Consumer
Banking


Commercial
Banking(6)


Other(6)


Total











Net interest income (loss)


$        3,899


$       2,147


$             635


$      (164)


$      6,517











Non-interest income (loss)


1,410


96


272


(63)


1,715











Total net revenue (loss)


5,309


2,243


907


(227)


8,232











Provision for credit losses


581


281


222


1


1,085











Non-interest expense


2,771


1,286


485


41


4,583











Income (loss) from continuing operations before income taxes


1,957


676


200


(269)


2,564











Income tax provision (benefit)


466


160


48


(141)


533











Income (loss) from continuing operations, net of tax


$        1,491


$          516


$             152


$      (128)


$      2,031


































Three Months Ended September 30, 2021


Nine Months Ended September 30, 2021

(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)


$        3,620


$       2,159


$             578


$      (201)


$      6,156


$       10,209


$       6,290


$          1,558


$      (336)


$    17,721

Non-interest income (loss)


1,263


127


306


(22)


1,674


3,545


412


803


(164)


4,596

Total net revenue (loss)


4,883


2,286


884


(223)


7,830


13,754


6,702


2,361


(500)


22,317

Provision (benefit) for credit losses


(198)


(91)


(53)



(342)


(1,325)


(523)


(475)


(2)


(2,325)

Non-interest expense


2,424


1,186


459


117


4,186


6,822


3,426


1,295


349


11,892

Income (loss) from continuing operations before income taxes


2,657


1,191


478


(340)


3,986


8,257


3,799


1,541


(847)


12,750

Income tax provision (benefit)


627


282


113


(140)


882


1,952


897


364


(431)


2,782

Income (loss) from continuing operations, net of tax


$        2,030


$          909


$             365


$      (200)


$      3,104


$        6,305


$       2,902


$          1,177


$      (416)


$      9,968

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business














2022 Q3 vs.


Nine Months Ended September 30,



2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.

2021

(Dollars in millions, except as noted)











Credit Card





















Earnings:





















Net interest income


$    4,313


$   3,899


$   3,839


$   3,865


$   3,620


11 %


19 %


$  12,051


$  10,209


18 %

Non-interest income


1,454


1,410


1,458


1,261


1,263


3


15


4,322


3,545


22

Total net revenue


5,767


5,309


5,297


5,126


4,883


9


18


16,373


13,754


19

Provision (benefit) for credit losses


1,261


581


545


423


(198)


117


**


2,387


(1,325)


**

Non-interest expense


3,004


2,771


2,783


2,799


2,424


8


24


8,558


6,822


25

Income from continuing operations before income taxes


1,502


1,957


1,969


1,904


2,657


(23)


(43)


5,428


8,257


(34)

Income tax provision


356


466


469


451


627


(24)


(43)


1,291


1,952


(34)

Income from continuing operations, net of tax


$    1,146


$   1,491


$   1,500


$   1,453


$   2,030


(23)


(44)


$    4,137


$   6,305


(34)

Selected performance metrics:





















Period-end loans held for investment


$  126,913


$ 120,880


$ 113,962


$ 114,772


$ 105,030


5


21


$  126,913


$ 105,030


21

Average loans held for investment


123,357


115,835


111,480


108,588


102,046


6


21


116,934


100,757


16

Average yield on loans outstanding(1)


16.74 %


15.24 %


14.97 %


14.94 %


14.88 %


150 bps


186 bps


15.67 %


14.47 %


120 bps

Total net revenue margin(7)


18.70


18.33


18.56


18.11


18.33


37


37


18.53


17.70


83

Net charge-off rate 


2.25


2.34


2.18


1.42


1.43


(9)


82


2.26


2.08


18

30+ day performing delinquency rate


3.01


2.42


2.38


2.28


2.00


59


101


3.01


2.00


101

30+ day delinquency rate


3.02


2.42


2.39


2.29


2.00


60


102


3.02


2.00


102

Nonperforming loan rate(3)


0.01


0.01


0.01


0.01


0.01




0.01


0.01


Purchase volume(8)


$  149,497


$ 148,491


$ 133,662


$ 149,982


$ 136,614


1 %


9 %


$  431,650


$ 377,623


14 %


































2022 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions, except as noted)


2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.

2021

Domestic Card





















Earnings:





















Net interest income


$    4,065


$   3,651


$   3,620


$   3,558


$   3,319


11 %


22 %


$  11,336


$   9,358


21 %

Non-interest income


1,383


1,340


1,248


1,190


1,200


3


15


3,971


3,342


19

Total net revenue


5,448


4,991


4,868


4,748


4,519


9


21


15,307


12,700


21

Provision (benefit) for credit losses


1,167


494


559


384


(200)


136


**


2,220


(1,252)


**

Non-interest expense


2,803


2,594


2,564


2,564


2,191


8


28


7,961


6,148


29

Income from continuing operations before income taxes


1,478


1,903


1,745


1,800


2,528


(22)


(42)


5,126


7,804


(34)

Income tax provision


351


450


414


424


597


(22)


(41)


1,215


1,842


(34)

Income from continuing operations, net of tax


$    1,127


$   1,453


$   1,331


$   1,376


$   1,931


(22)


(42)


$    3,911


$   5,962


(34)

Selected performance metrics:





















Period-end loans held for investment


$  121,279


$ 115,004


$ 107,987


$ 108,723


$   99,258


5


22


$  121,279


$   99,258


22

Average loans held for investment


117,467


109,962


105,536


102,717


96,309


7


22


111,032


93,493


19

Average yield on loans outstanding(1)


16.61 %


15.03 %


14.82 %


14.86 %


14.80 %


158 bps


181 bps


15.51 %


14.36 %


115 bps

Total net revenue margin(7)


18.55


18.16


18.28


18.14


18.40


39


15


18.33


17.74


59

Net charge-off rate (2)


2.20


2.26


2.12


1.49


1.36


(6)


84


2.19


2.05


14

30+ day performing delinquency rate


2.97


2.35


2.32


2.22


1.93


62


104


2.97


1.93


104

Purchase volume(8)


$  145,805


$ 144,668


$ 126,284


$ 138,825


$ 126,057


1 %


16 %


$  416,757


$ 348,472


20 %

Refreshed FICO scores:(9)





















Greater than 660


70 %


70 %


70 %


71 %


71 %



(1)


70 %


71 %


(1)

660 or below


30


30


30


29


29



1


30


29


1

Total


100 %


100 %


100 %


100 %


100 %






100 %


100 %



 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business














2022 Q3 vs.


Nine Months Ended September 30,



2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.

2021

(Dollars in millions, except as noted)











Consumer Banking





















Earnings:





















Net interest income


$  2,311


$   2,147


$   2,113


$   2,158


$   2,159


8 %


7 %


$  6,571


$   6,290


4 %

Non-interest income


129


96


105


142


127


34


2


330


412


(20)

Total net revenue


2,440


2,243


2,218


2,300


2,286


9


7


6,901


6,702


3

Provision (benefit) for credit losses


285


281


130


2


(91)


1


**


696


(523)


**

Non-interest expense


1,340


1,286


1,236


1,285


1,186


4


13


3,862


3,426


13

Income from continuing operations before income taxes


815


676


852


1,013


1,191


21


(32)


2,343


3,799


(38)

Income tax provision


193


160


202


239


282


21


(32)


555


897


(38)

Income from continuing operations, net of tax


$     622


$      516


$      650


$      774


$      909


21


(32)


$  1,788


$   2,902


(38)

Selected performance metrics:





















Period-end loans held for investment


$   81,199


$   81,531


$   80,330


$   77,646


$   77,112



5


$   81,199


$   77,112


5

Average loans held for investment


81,339


80,981


78,689


77,444


75,996



7


80,346


72,669


11

Average yield on loans held for investment(1)


7.20 %


7.08 %


7.17 %


7.55 %


7.78 %


12 bps


(58) bps


7.15 %


7.97 %


(82) bps

Auto loan originations


$     8,289


$   10,328


$   11,713


$     9,721


$   11,570


(20) %


(28) %


$   30,330


$   33,362


(9) %

Period-end deposits


256,661


255,904


258,359


256,407


252,387



2


256,661


252,387


2

Average deposits


255,843


254,336


255,265


253,372


251,307


1


2


255,150


251,105


2

Average deposits interest rate


0.79 %


0.38 %


0.29 %


0.30 %


0.30 %


41 bps


49 bps


0.49 %


0.32 %


17 bps

Net charge-off rate


1.10


0.67


0.75


0.75


0.27


43


83


0.84


0.24


60

30+ day performing delinquency rate


4.77


4.39


3.78


4.26


3.58


38


119


4.77


3.58


119

30+ day delinquency rate


5.28


4.81


4.13


4.66


3.88


47


140


5.28


3.88


140

Nonperforming loan rate(3)


0.64


0.54


0.46


0.50


0.42


10


22


0.64


0.42


22

Nonperforming asset rate(4)


0.71


0.60


0.52


0.56


0.47


11


24


0.71


0.47


24

Auto—At origination FICO scores:(10)





















Greater than 660


52 %


52 %


51 %


50 %


49 %



3 %


52 %


49 %


3 %

621 - 660


20


20


20


20


20




20


20


620 or below


28


28


29


30


31



(3)


28


31


(3)

Total


100 %


100 %


100 %


100 %


100 %






100 %


100 %



 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business














2022 Q3 vs.


Nine Months Ended September 30,



2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.

2021

(Dollars in millions, except as noted)











Commercial Banking





















Earnings:





















Net interest income


$     699


$      635


$      607


$      595


$      578


10 %


21 %


$     1,941


$     1,558


25 %

Non-interest income


319


272


277


345


306


17


4


868


803


8

Total net revenue(6)


1,018


907


884


940


884


12


15


2,809


2,361


19

Provision (benefit) for credit losses


123


222


8


(44)


(53)


(45)


**


353


(475)


**

Non-interest expense


542


485


488


520


459


12


18


1,515


1,295


17

Income from continuing operations before income taxes


353


200


388


464


478


77


(26)


941


1,541


(39)

Income tax provision


83


48


92


109


113


73


(27)


223


364


(39)

Income from continuing operations, net of tax


$     270


$      152


$      296


$      355


$      365


78


(26)


$       718


$     1,177


(39)

Selected performance metrics:





















Period-end loans held for investment


$   95,831


$   93,973


$   86,174


$   84,922


$   79,248


2


21


$   95,831


$   79,248


21

     Average loans held for investment


95,490


89,294


85,173


81,127


75,059


7


27


90,024


74,441


21

Average yield on loans held for investment(1)(6)


4.40 %


3.18 %


2.66 %


2.71 %


2.77 %


122 bps


163 bps


3.44 %


2.75 %


69 bps

Period-end deposits


$   41,058


$   38,844


$   45,232


$   44,809


$   43,347


6 %


(5) %


$   41,058


$   43,347


(5) %

Average deposits


39,799


40,536


45,008


44,206


42,729


(2)


(7)


41,762


41,725


Average deposits interest rate


0.83 %


0.19 %


0.12 %


0.12 %


0.15 %


64 bps


68 bps


0.37 %


0.15 %


22 bps

Net charge-off (recovery) rate


0.05


0.14


0.06


(0.02)


0.05


(9)



0.08


0.01


7

Nonperforming loan rate(3)


0.57


0.70


0.81


0.82


0.76


(13)


(19)


0.57


0.76


(19)

Nonperforming asset rate(4)


0.57


0.70


0.81


0.82


0.76


(13)


(19)


0.57


0.76


(19)

Risk category:(11)





















Noncriticized


$   89,559


$   88,349


$   80,586


$   79,014


$   73,218


1 %


22 %


$   89,559


$   73,218


22 %

Criticized performing


5,722


4,969


4,893


5,209


5,429


15


5


5,722


5,429


5

Criticized nonperforming


550


655


695


699


601


(16)


(8)


550


601


(8)

Total commercial banking loans


$   95,831


$   93,973


$   86,174


$   84,922


$   79,248


2


21


$   95,831


$   79,248


21

Risk category as a percentage of period-end loans held for investment:(11)





















Noncriticized


93.46 %


94.01 %


93.51 %


93.05 %


92.39 %


(55) bps


107 bps


93.46 %


92.39 %


107 bps

Criticized performing


5.97


5.29


5.68


6.13


6.85


68


(88)


5.97


6.85


(88)

Criticized nonperforming


0.57


0.70


0.81


0.82


0.76


(13)


(19)


0.57


0.76


(19)

Total commercial banking loans


100.00 %


100.00 %


100.00 %


100.00 %


100.00 %






100.00 %


100.00 %



 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total














2022 Q3 vs.


Nine Months Ended September 30,



2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


2022

Q2


2021

Q3


2022


2021


2022 vs.

2021

(Dollars in millions)











Other





















Earnings:





















Net interest loss


$        (320)


$        (164)


$        (162)


$        (168)


$        (201)


95 %


59 %


$        (646)


$        (336)


92 %

Non-interest loss


(100)


(63)


(64)


(80)


(22)


59


**


(227)


(164)


38

Total net loss(6)


(420)


(227)


(226)


(248)


(223)


85


88


(873)


(500)


75

Provision (benefit) for credit losses



1


(6)




**



(5)


(2)


150

Non-interest expense(12)


63


41


44


74


117


54


(46)


148


349


(58)

Loss from continuing operations before income taxes


(483)


(269)


(264)


(322)


(340)


80


42


(1,016)


(847)


20

Income tax benefit


(139)


(141)


(221)


(166)


(140)


(1)


(1)


(501)


(431)


16

Loss from continuing operations, net of tax


$        (344)


$        (128)


$          (43)


$        (156)


$        (200)


169


72


$        (515)


$        (416)


24

Selected performance metrics:





















Period-end deposits


$    19,474


$    13,137


$      9,838


$      9,764


$    10,204


48


91


$    19,474


$    10,204


91

Average deposits


16,286


11,082


9,324


9,694


10,999


47


48


12,256


13,272


(8)

Total





















Earnings:





















Net interest income


$      7,003


$      6,517


$      6,397


$      6,450


$      6,156


7 %


14 %


$    19,917


$    17,721


12 %

Non-interest income


1,802


1,715


1,776


1,668


1,674


5


8


5,293


4,596


15

Total net revenue


8,805


8,232


8,173


8,118


7,830


7


12


25,210


22,317


13

Provision (benefit) for credit losses


1,669


1,085


677


381


(342)


54


**


3,431


(2,325)


**

Non-interest expense


4,949


4,583


4,551


4,678


4,186


8


18


14,083


11,892


18

Income from continuing operations before income taxes


2,187


2,564


2,945


3,059


3,986


(15)


(45)


7,696


12,750


(40)

Income tax provision


493


533


542


633


882


(8)


(44)


1,568


2,782


(44)

Income from continuing operations, net of tax


$      1,694


$      2,031


$      2,403


$      2,426


$      3,104


(17)


(45)


$      6,128


$      9,968


(39)

Selected performance metrics:





















Period-end loans held for investment


$  303,943


$  296,384


$  280,466


$  277,340


$  261,390


3


16


$  303,943


$  261,390


16

Average loans held for investment


300,186


286,110


275,342


267,159


253,101


5


19


287,304


247,867


16

Period-end deposits


317,193


307,885


313,429


310,980


305,938


3


4


317,193


305,938


4

Average deposits


311,928


305,954


309,597


307,272


305,035


2


2


309,168


306,102


1

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)



(1)

Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing. Average yield is calculated using whole dollar values for average balances and interest income/expense. Accordingly, total interest earning assets less total interest bearing liabilities may not total net interest income/spread.

(2)

In August 2022, in addition to our normal recovery activity, we sold a pool of charged-off loans that resulted in elevated debt sale recovery activity of approximately $33 million, which decreased the Domestic Credit Card net charge-off rate for the third quarter of 2022 by approximately 11 basis points. Excluding the impact, the Domestic Credit Card net charge-off rate would have been 2.31% for the third quarter of 2022.

(3)

Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category. For Commercial Banking, loans categorized as nonperforming are considered criticized nonperforming.

(4)

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

(5)

Primarily represents foreign currency translation adjustments and initial allowance builds for purchase credit-deteriorated loans.

(6)

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

(7)

Total net revenue margin is calculated based on total net revenue for the period divided by average loans outstanding during the period.

(8)

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

(9)

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

(10)

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

(11)

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

(12)

Includes charges incurred as a result of restructuring activities.

**     Not meaningful.

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




Basel III Standardized Approach

(Dollars in millions, except as noted)


September 30,

2022


June 30,

2022


March 31,

2022


December 31,

2021


September 30,

2021

Regulatory Capital Metrics











Common equity excluding AOCI


$      58,516


$        57,278


$        57,390


$         58,206


$        58,705

Adjustments:











AOCI, net of tax(2)


(120)


(72)


(20)


(23)


(33)

Goodwill, net of related deferred tax liabilities


(14,537)


(14,548)


(14,559)


(14,562)


(14,435)

Intangible assets, net of related deferred tax liabilities


(180)


(80)


(94)


(108)


(84)

Other


(14)


(15)


(16)


(12)


(15)

Common equity Tier 1 capital


$      43,665


$        42,563


$        42,701


$         43,501


$        44,138

Tier 1 capital


$      48,510


$        47,408


$        47,547


$         48,346


$        50,049

Total capital(3)


55,938


55,100


55,059


56,089


57,851

Risk-weighted assets


356,817


351,746


336,739


332,673


318,729

Adjusted average assets(4)


439,479


427,446


418,957


415,141


411,216

Capital Ratios











Common equity Tier 1 capital(5)


12.2 %


12.1 %


12.7 %


13.1 %


13.8 %

Tier 1 capital(6)


13.6


13.5


14.1


14.5


15.7

Total capital(7)


15.7


15.7


16.4


16.9


18.2

Tier 1 leverage(4)


11.0


11.1


11.3


11.6


12.2

Tangible common equity ("TCE")(8)


7.2


7.9


8.7


9.9


10.4

 

Reconciliation of Non-GAAP Measures


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




2022

Q3


2022

Q2


2022

Q1


2021

Q4


2021

Q3


Nine Months Ended September 30,

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







2022


2021

Adjusted diluted earnings per share ("EPS"):