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Capital One Reports Fourth Quarter 2020 Net Income of $2.6 billion, or $5.35 per share

Excluding adjusting items, Fourth Quarter 2020 Net Income of $5.29 per share(1)

Capital_One_Logo

News provided by

Capital One Financial Corporation

Jan 26, 2021, 16:05 ET

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MCLEAN, Va., Jan. 26, 2021 /PRNewswire/ --  Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2020 of $2.6 billion, or $5.35 per diluted common share, compared with net income of $2.4 billion, or $5.06 per diluted common share in the third quarter of 2020, and with net income of $1.2 billion, or $2.25 per diluted common share in the fourth quarter of 2019. Excluding adjusting items, net income for the fourth quarter of 2020 was $5.29 per diluted common share(1). In addition, Capital One's Board of Directors has authorized a common stock repurchase program of up to $7.5 billion.

"Our long-standing strategic choices put us in a strong position to respond to both the near-term challenges and the emerging opportunities as the pandemic plays out," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "Despite the pressures of the pandemic in the near-term, nothing has changed about where we think our businesses are headed, or the long-term strategic opportunities that are being created as sweeping digital change continues to transform banking."

Adjusting items in the fourth 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

Legal reserve activity, including insurance recoveries

$

37


$

0.07


Cybersecurity Incident expenses, net of insurance

(6)


(0.01)



The quarter included the following notable item:


(Dollars in millions, except per share data)

Pre-Tax
Impact

Diluted EPS
Impact

Equity investment gain

$

60


$

0.10


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

Fourth Quarter 2020 Income Statement Summary:

  • Total net revenue decreased 1 percent to $7.3 billion.
  • Total non-interest expense increased 13 percent to $4.0 billion:
    • 99 percent increase in marketing.
    • 6 percent increase in operating expenses.
  • Pre-provision earnings decreased 13 percent to $3.3 billion(2).
  • Provision for credit losses decreased 20 percent to $264 million:
    • Net charge-offs of $856 million.
    • $593 million loan reserve release.
  • Net interest margin of 6.05 percent, an increase of 37 basis points.
  • Efficiency ratio of 54.64 percent.
    • Efficiency ratio excluding adjusting items of 55.06 percent(1).
  • Operating efficiency ratio of 46.97 percent.
    • Operating efficiency ratio excluding adjusting items of 47.39 percent(1).

Fourth Quarter 2020 Balance Sheet Summary:

  • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 13.7 percent at December 31, 2020.
  • Period-end loans held for investment in the quarter increased $3.4 billion, or 1 percent, to $251.6 billion.
    • Credit Card period-end loans increased $3.3 billion, or 3 percent, to $107.0 billion.
      • Domestic Card period-end loans increased $3.0 billion, or 3 percent, to $98.5 billion.
    • Consumer Banking period-end loans increased $200 million, or less than 1 percent, to $68.9 billion.
      • Auto period-end loans increased $368 million, or 1 percent, to $65.8 billion.
    • Commercial Banking period-end loans decreased $114 million, or less than 1 percent, to $75.8 billion.
  • Average loans held for investment in the quarter decreased $1.8 billion, or 1 percent, to $247.7 billion.
    • Credit Card average loans decreased $1.8 billion, or 2 percent, to $103.6 billion.
      • Domestic Card average loans decreased $1.9 billion, or 2 percent, to $95.5 billion.
    • Consumer Banking average loans increased $986 million, or 1 percent, to $68.8 billion.
      • Auto average loans increased $1.1 billion, or 2 percent, to $65.6 billion.
    • Commercial Banking average loans decreased $1.0 billion, or 1 percent, to $75.3 billion.
  • Period-end total deposits decreased $283 million, or less than 1 percent, to $305.4 billion, while average deposits decreased $1.0 billion, or less than 1 percent, to $304.5 billion.
  • Interest-bearing deposits rate paid decreased 18 basis points to 0.51 percent.

All comparisons below are for the full year of 2020 compared with the full year of 2019 unless otherwise noted.

 2020 Full Year Income Statement Summary:

  • Total net revenue decreased less than 1% to $28.5 billion.
  • Total non-interest expense decreased 3 percent to $15.1 billion:
    • 29 percent decrease in marketing.
    • 2 percent increase in operating expenses.
  • Pre-provision earnings increased 3 percent to $13.5 billion(2).
  • Provision for credit losses increased 65 percent to $10.3 billion:
  • Efficiency ratio of 52.79 percent.
    • Efficiency ratio excluding adjusting items of 51.66 percent(1).
  • Operating efficiency ratio of 47.14 percent.
    • Operating efficiency ratio excluding adjusting items of 46.01 percent(1).

(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 January 26, 2021 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 February 9, 2021 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 $305.4 billion in deposits and $421.6 billion in total assets as of  December 31, 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)

Fourth 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 Annual Report on Form 10-K for the period ended December 31,
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 Q4 vs.


Year Ended December 31,

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


2020


2020


2020


2020


2019


2020


2019






2020 vs.


Q4


Q3


Q2


Q1


Q4


Q3


Q4


2020


2019


2019

Income Statement





















Net interest income


$

5,873



$

5,555



$

5,460



$

6,025



$

6,066



6

%


(3)

%


$

22,913



$

23,340



(2)

%

Non-interest income


1,464



1,826



1,096



1,224



1,361



(20)



8



5,610



5,253



7


Total net revenue(1)


7,337



7,381



6,556



7,249



7,427



(1)



(1)



28,523



28,593



—


Provision for credit losses


264



331



4,246



5,423



1,818



(20)



(85)



10,264



6,236



65


Non-interest expense:





















Marketing


563



283



273



491



710



99



(21)



1,610



2,274



(29)


Operating expense


3,446



3,265



3,497



3,238



3,451



6



—



13,446



13,209



2


Total non-interest expense


4,009



3,548



3,770



3,729



4,161



13



(4)



15,056



15,483



(3)


Income (loss) from continuing operations before income taxes


3,064



3,502



(1,460)



(1,903)



1,448



(13)



112



3,203



6,874



(53)


Income tax provision (benefit)


496



1,096



(543)



(563)



270



(55)



84



486



1,341



(64)


Income (loss) from continuing operations, net of tax


2,568



2,406



(917)



(1,340)



1,178



7



118



2,717



5,533



(51)


Income (loss) from discontinued operations, net of tax


(2)



—



(1)



—



(2)



**



—



(3)



13



**


Net income (loss)


2,566



2,406



(918)



(1,340)



1,176



7



118



2,714



5,546



(51)


Dividends and undistributed earnings allocated to participating securities(2)


(19)



(20)



(1)



(3)



(7)



(5)



171



(20)



(41)



(51)


Preferred stock dividends


(68)



(67)



(90)



(55)



(97)



1



(30)



(280)



(282)



(1)


Issuance cost for redeemed preferred stock(3)


(17)



—



—



(22)



(31)



**



(45)



(39)



(31)



26


Net income (loss) available to common stockholders


$

2,462



$

2,319



$

(1,009)



$

(1,420)



$

1,041



6



137



$

2,375



$

5,192



(54)


Common Share Statistics





















Basic earnings per common share:(2)





















Net income (loss) from continuing operations


$

5.36



$

5.07



$

(2.21)



$

(3.10)



$

2.26



6

%


137

%


$

5.20



$

11.07



(53)

%

Income (loss) from discontinued operations


—



—



—



—



—



—



—



(0.01)



0.03



**


Net income (loss) per basic common share


$

5.36



$

5.07



$

(2.21)



$

(3.10)



$

2.26



6



137



$

5.19



$

11.10



(53)


Diluted earnings per common share:(2)





















Net income (loss) from continuing operations


$

5.35



$

5.06



$

(2.21)



$

(3.10)



$

2.25



6



138



$

5.19



$

11.02



(53)


Income (loss) from discontinued operations


—



—



—



—



—



—



—



(0.01)



0.03



**


Net income (loss) per diluted common share


$

5.35



$

5.06



$

(2.21)



$

(3.10)



$

2.25



6



138



$

5.18



$

11.05



(53)


Weighted-average common shares outstanding (in millions):





















Basic


459.1



457.8



456.7



457.6



460.9



—



—



457.8



467.6



(2)


Diluted


460.2



458.5



456.7



457.6



463.4



—



(1)



458.9



469.9



(2)


Common shares outstanding (period-end, in millions)


459.0



457.4



456.3



455.3



456.6



—



1



459.0



456.6



1


Dividends declared and paid per common share


$

0.10



$

0.10



$

0.40



$

0.40



$

0.40



—



(75)



$

1.00



$

1.60



(38)


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


88.34



83.67



78.82



80.68



83.72



6



6



88.34



83.72



6












































































2020 Q4 vs.


Year Ended December 31,

(Dollars in millions)


2020


2020


2020


2020


2019


2020


2019






2020 vs.


Q4


Q3


Q2


Q1


Q4


Q3


Q4


2020


2019


2019

Balance Sheet (Period-End)





















Loans held for investment


$

251,624



$

248,223



$

251,512



$

262,990



$

265,809



1

%


(5)

%


$

251,624



$

265,809



(5)

%

Interest-earning assets


388,917



390,040



389,829



364,472



355,202



—



9



388,917



355,202



9


Total assets


421,602



421,883



421,296



396,878



390,365



—



8



421,602



390,365



8


Interest-bearing deposits


274,300



276,092



275,183



245,142



239,209



(1)



15



274,300



239,209



15


Total deposits


305,442



305,725



304,238



269,689



262,697



—



16



305,442



262,697



16


Borrowings


40,539



42,795



44,900



55,681



55,697



(5)



(27)



40,539



55,697



(27)


Common equity


55,356



53,093



50,835



51,620



53,157



4



4



55,356



53,157



4


Total stockholders' equity


60,204



58,424



56,045



56,830



58,011



3



4



60,204



58,011



4


Balance Sheet (Average Balances)





















Loans held for investment


$

247,689



$

249,511



$

253,358



$

262,889



$

258,870



(1)

%


(4)

%


$

253,335



$

247,450



2

%

Interest-earning assets


388,252



391,451



378,145



355,347



349,150



(1)



11



378,362



341,510



11


Total assets


420,011



422,854



411,075



390,380



383,162



(1)



10



411,187



374,924



10


Interest-bearing deposits


274,142



276,339



261,256



241,115



236,250



(1)



16



263,279



231,609



14


Total deposits


304,513



305,516



288,344



264,653



260,040



—



17



290,835



255,065



14


Borrowings


40,662



44,161



49,827



51,795



51,442



(8)



(21)



46,588



50,965



(9)


Common equity


54,220



51,995



52,413



53,186



52,641



4



3



52,954



50,960



4


Total stockholders' equity


59,389



57,223



57,623



58,568



58,148



4



2



58,201



55,690



5


               

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated














2020 Q4 vs.


Year Ended December 31,

(Dollars in millions, except as noted)


2020


2020


2020


2020


2019


2020


2019






2020 vs.


Q4


Q3


Q2


Q1


Q4


Q3


Q4


2020


2019


2019

Performance Metrics





















Net interest income growth (period over period)


6

%


2

%


(9)

%


(1)

%


6

%


**



**



(2)

%


2

%


**


Non-interest income growth (period over period)


(20)



67



(10)



(10)



11



**



**



7



1



**


Total net revenue growth (period over period)


(1)



13



(10)



(2)



7



**



**



—



2



**


Total net revenue margin(5)


7.56



7.54



6.93



8.16



8.51



2

bps


(95)

bps


7.54



8.37



(83)

bps

Net interest margin(6)


6.05



5.68



5.78



6.78



6.95



37



(90)



6.06



6.83



(77)


Return on average assets


2.45



2.28



(0.89)



(1.37)



1.23



17



122



0.66



1.48



(82)


Return on average tangible assets(7)


2.54



2.36



(0.93)



(1.43)



1.28



18



126



0.69



1.54



(85)


Return on average common equity(8)


18.18



17.84



(7.69)



(10.68)



7.93



34



10

%


4.49



10.16



(6)

%

Return on average tangible common equity(9)


25.02



24.98



(10.74)



(14.85)



11.07



4



14



6.24



14.37



(8)


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


6.47



5.69



5.95



5.67



6.43



78



4

bps


5.94



6.26



(32)

bps

Efficiency ratio(10)


54.64



48.07



57.50



51.44



56.03



7

%


(139)



52.79



54.15



(136)


Operating efficiency ratio(11)


46.97



44.24



53.34



44.67



46.47



273

bps


50



47.14



46.20



94


Effective income tax rate for continuing operations


16.2



31.3



37.2



29.6



18.6



(15)

%


(240)



15.2



19.5



(4)

%

Employees (period-end, in thousands)


52.0



52.5



53.1



52.1



51.9



(1)



—



52.0



51.9



—


Credit Quality Metrics





















Allowance for credit losses


$

15,564



$

16,129



$

16,832



$

14,073



$

7,208



(4)

%


116

%


$

15,564



$

7,208



116

%

Allowance coverage ratio


6.19

%


6.50

%


6.69

%


5.35

%


2.71

%


(31)

bps


348

bps


6.19

%


2.71

%


348

bps

Net charge-offs


$

856



$

1,073



$

1,505



$

1,791



$

1,683



(20)

%


(49)

%


$

5,225



$

6,252



(16)

%

Net charge-off rate(12)


1.38

%


1.72

%


2.38

%


2.72

%


2.60

%


(34)

bps


(122)

bps


2.06

%


2.53

%


(47)

bps

30+ day performing delinquency rate(13)


2.41



1.97



2.09



2.95



3.51



44



(110)



2.41



3.51



(110)


30+ day delinquency rate(13)


2.61



2.22



2.30



3.16



3.74



39



(113)



2.61



3.74



(113)


Capital Ratios(14)





















Common equity Tier 1 capital


13.7

%


13.0

%


12.4

%


12.0

%


12.2

%


70

bps


150

bps


13.7

%


12.2

%


150

bps

Tier 1 capital


15.3



14.8



14.2



13.7



13.7



50



160



15.3



13.7



160


Total capital


17.7



17.3



16.7



16.1



16.1



40



160



17.7



16.1



160


Tier 1 leverage


11.2



10.6



10.3



11.0



11.7



60



(50)



11.2



11.7



(50)


Tangible common equity ("TCE")(15)


10.0



9.4



8.8



9.6



10.2



60



(20)



10.0



10.2



(20)


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income














2020 Q4 vs.


Year Ended December 31,



2020


2020


2020


2020


2019


2020


2019






2020 vs.

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


Q4


Q3


Q2


Q1


Q4


Q3


Q4


2020


2019


2019

Interest income:





















Loans, including loans held for sale


$

5,954



$

5,758



$

5,820



$

6,542



$

6,682



3

%


(11)

%


$

24,074



$

25,862



(7)

%

Investment securities


422



443



482



530



544



(5)



(22)



1,877



2,411



(22)


Other


15



14



16



37



44



7



(66)



82



240



(66)


Total interest income


6,391



6,215



6,318



7,109



7,270



3



(12)



26,033



28,513



(9)


Interest expense:





















Deposits


347



476



611



731



832



(27)



(58)



2,165



3,420



(37)


Securitized debt obligations


34



43



56



99



118



(21)



(71)



232



523



(56)


Senior and subordinated notes


128



132



180



239



236



(3)



(46)



679



1,159



(41)


Other borrowings


9



9



11



15



18



—



(50)



44



71



(38)


Total interest expense


518



660



858



1,084



1,204



(22)



(57)



3,120



5,173



(40)


Net interest income


5,873



5,555



5,460



6,025



6,066



6



(3)



22,913



23,340



(2)


Provision for credit losses


264



331



4,246



5,423



1,818



(20)



(85)



10,264



6,236



65


Net interest income after provision for credit losses


5,609



5,224



1,214



602



4,248



7



32



12,649



17,104



(26)


Non-interest income:





















Interchange fees, net


818



775



672



752



811



6



1



3,017



3,179



(5)


Service charges and other customer-related fees


338



320



258



327



342



6



(1)



1,243



1,330



(7)


Net securities gains (losses)


—



25



—



—



(18)



**



**



25



26



(4)


Other


308



706



166



145



226



(56)



36



1,325



718



85


Total non-interest income


1,464



1,826



1,096



1,224



1,361



(20)



8



5,610



5,253



7


Non-interest expense:





















Salaries and associate benefits


1,755



1,719



1,704



1,627



1,652



2



6



6,805



6,388



7


Occupancy and equipment


572



506



523



517



565



13



1



2,118



2,098



1


Marketing


563



283



273



491



710



99



(21)



1,610



2,274



(29)


Professional services


394



327



304



287



318



20



24



1,312



1,237



6


Communications and data processing


295



310



308



302



346



(5)



(15)



1,215



1,290



(6)


Amortization of intangibles


8



14



16



22



28



(43)



(71)



60



112



(46)


Other(16)


422



389



642



483



542



8



(22)



1,936



2,084



(7)


Total non-interest expense


4,009



3,548



3,770



3,729



4,161



13



(4)



15,056



15,483



(3)


Income (loss) from continuing operations before income taxes


3,064



3,502



(1,460)



(1,903)



1,448



(13)



112



3,203



6,874



(53)


Income tax provision (benefit)


496



1,096



(543)



(563)



270



(55)



84



486



1,341



(64)


Income (loss) from continuing operations, net of tax


2,568



2,406



(917)



(1,340)



1,178



7



118



2,717



5,533



(51)


Income (loss) from discontinued operations, net of tax


(2)



—



(1)



—



(2)



**



—



(3)



13



**


Net income (loss)


2,566



2,406



(918)



(1,340)



1,176



7



118



2,714



5,546



(51)


Dividends and undistributed earnings allocated to participating securities(2)


(19)



(20)



(1)



(3)



(7)



(5)



171



(20)



(41)



(51)


Preferred stock dividends


(68)



(67)



(90)



(55)



(97)



1



(30)



(280)



(282)



(1)


Issuance cost for redeemed preferred stock(3)


(17)



—



—



(22)



(31)



**



(45)



(39)



(31)



26


Net income (loss) available to common stockholders


$

2,462



$

2,319



$

(1,009)



$

(1,420)



$

1,041



6



137



$

2,375



$

5,192



(54)
























































2020 Q4 vs.


Year Ended December 31,



2020


2020


2020


2020


2019


2020


2019






2020 vs.

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


Q4


Q3


Q2


Q1


Q4


Q3


Q4


2020


2019


2019

Basic earnings per common share:(2)





















Net income (loss) from continuing operations


$

5.36



$

5.07



$

(2.21)



$

(3.10)



$

2.26



6

%


137

%


$

5.20



$

11.07



(53)

%

Income (loss) from discontinued operations


—



—



—



—



—



—



—



(0.01)



0.03



**


Net income (loss) per basic common share


$

5.36



$

5.07



$

(2.21)



$

(3.10)



$

2.26



6



137



$

5.19



$

11.10



(53)


Diluted earnings per common share:(2)





















Net income (loss) from continuing operations


$

5.35



$

5.06



$

(2.21)



$

(3.10)



$

2.25



6



138



$

5.19



$

11.02



(53)


Income (loss) from discontinued operations


—



—



—



—



—



—



—



(0.01)



0.03



**


Net income (loss) per diluted common share


$

5.35



$

5.06



$

(2.21)



$

(3.10)



$

2.25



6



138



$

5.18



$

11.05



(53)


Weighted-average common shares outstanding (in millions):





















Basic common shares


459.1



457.8



456.7



457.6



460.9



—



—



457.8



467.6



(2)


Diluted common shares


460.2



458.5



456.7



457.6



463.4



—



(1)



458.9



469.9



(2)


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets














2020 Q4 vs.



2020


2020


2020


2020


2019


2020


2019

(Dollars in millions)


Q4


Q3


Q2


Q1


Q4


Q3


Q4

Assets:















Cash and cash equivalents:















Cash and due from banks


$

4,708



$

4,267



$

4,583



$

4,545



$

4,129



10

%


14

%

Interest-bearing deposits and other short-term investments


35,801



39,839



51,235



20,391



9,278



(10)



**


Total cash and cash equivalents


40,509



44,106



55,818



24,936



13,407



(8)



**


Restricted cash for securitization investors


262



895



740



364



342



(71)



(23)


Securities available for sale


100,445



99,853



87,859



81,423



79,213



1



27


Loans held for investment:















Unsecuritized loans held for investment


225,698



217,878



222,310



231,318



231,992



4



(3)


Loans held in consolidated trusts


25,926



30,345



29,202



31,672



33,817



(15)



(23)


Total loans held for investment


251,624



248,223



251,512



262,990



265,809



1



(5)


Allowance for credit losses


(15,564)



(16,129)



(16,832)



(14,073)



(7,208)



(4)



116


Net loans held for investment


236,060



232,094



234,680



248,917



258,601



2



(9)


Loans held for sale


2,710



3,433



711



1,056



400



(21)



**


Premises and equipment, net


4,287



4,333



4,324



4,336



4,378



(1)



(2)


Interest receivable


1,471



1,551



1,574



1,687



1,758



(5)



(16)


Goodwill


14,653



14,648



14,645



14,645



14,653



—



—


Other assets


21,205



20,970



20,945



19,514



17,613



1



20


Total assets


$

421,602



$

421,883



$

421,296



$

396,878



$

390,365



—



8





























2020 Q4 vs.



2020


2020


2020


2020


2019


2020


2019

(Dollars in millions)


Q4


Q3


Q2


Q1


Q4


Q3


Q4

Liabilities:















Interest payable


$

352



$

332



$

380



$

359



$

439



6

%


(20)

%

Deposits:















Non-interest-bearing deposits


31,142



29,633



29,055



24,547



23,488



5



33


Interest-bearing deposits


274,300



276,092



275,183



245,142



239,209



(1)



15


Total deposits


305,442



305,725



304,238



269,689



262,697



—



16


Securitized debt obligations


12,414



13,566



15,761



17,141



17,808



(8)



(30)


Other debt:















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


668



702



573



399



314



(5)



113


Senior and subordinated notes


27,382



28,448



28,481



32,049



30,472



(4)



(10)


Other borrowings


75



79



85



6,092



7,103



(5)



(99)


Total other debt


28,125



29,229



29,139



38,540



37,889



(4)



(26)


Other liabilities


15,065



14,607



15,733



14,319



13,521



3



11


Total liabilities


361,398



363,459



365,251



340,048



332,354



(1)



9

















Stockholders' equity:















Preferred stock


0



0



0



0



0



—



—


Common stock


7



7



7



7



7



—



—


Additional paid-in capital, net


33,480



33,793



33,556



33,450



32,980



(1)



2


Retained earnings


40,088



37,653



35,361



36,552



40,340



6



(1)


Accumulated other comprehensive income


3,494



3,833



3,981



3,679



1,156



(9)



**


Treasury stock, at cost


(16,865)



(16,862)



(16,860)



(16,858)



(16,472)



—



2


Total stockholders' equity


60,204



58,424



56,045



56,830



58,011



3



4


Total liabilities and stockholders' equity


$

421,602



$

421,883



$

421,296



$

396,878



$

390,365



—



8


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 $177 million in Q4 2020, $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 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 December 1, 2020, we redeemed all outstanding shares of our fixed rate 6.20% non-cumulative perpetual preferred stock Series F, which reduced our net income
available to common shareholders by $17 million in Q4 2020. On March 2, 2020, we redeemed all outstanding shares of our fixed rate 6.00% non-cumulative perpetual preferred
stock Series B, which 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, which 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 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 Q4 2020, 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 Q4 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 Q4 2020, $6 million in Q3 2020, $11 million in Q2 2020, $4 million in Q1 2020 and $16 million in Q4 2019, respectively.

**

Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




2020 Q4


2020 Q3


2019 Q4



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


$

251,135



$

5,954



9.48

%


$

250,525



$

5,758



9.19

%


$

259,855



$

6,682



10.29

%

Investment securities


97,640



422



1.73



91,777



443



1.93



79,104



544



2.75


Cash equivalents and other


39,477



15



0.15



49,149



14



0.11



10,191



44



1.70


Total interest-earning assets


$

388,252



$

6,391



6.58



$

391,451



$

6,215



6.35



$

349,150



$

7,270



8.33


Interest-bearing liabilities:



















Interest-bearing deposits


$

274,143



$

347



0.51



$

276,339



$

476



0.69



$

236,250



$

832



1.41


Securitized debt obligations


12,651



34



1.08



15,032



43



1.14



18,339



118



2.58


Senior and subordinated notes


27,386



128



1.87



28,497



132



1.86



30,597



236



3.08


Other borrowings and liabilities


2,095



9



1.75



2,119



9



1.77



3,789



18



1.95


Total interest-bearing liabilities


$

316,275



$

518



0.65



$

321,987



$

660



0.82



$

288,975



$

1,204



1.67


Net interest income/spread




$

5,873



5.93





$

5,555



5.53





$

6,066



6.66


Impact of non-interest-bearing funding






0.12







0.15







0.29


Net interest margin






6.05

%






5.68

%






6.95

%




Year Ended December 31,



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


$

254,901



$

24,074



9.44

%


$

248,552



$

25,862



10.41

%

Investment securities


87,222



1,877



2.15



81,467



2,411



2.96


Cash equivalents and other


36,239



82



0.23



11,491



240



2.08


Total interest-earning assets


$

378,362



$

26,033



6.88



$

341,510



$

28,513



8.35


Interest-bearing liabilities:













Interest-bearing deposits


$

263,279



$

2,165



0.82



$

231,609



$

3,420



1.48


Securitized debt obligations


15,533



232



1.49



18,020



523



2.90


Senior and subordinated notes


29,621



679



2.29



30,821



1,159



3.76


Other borrowings and liabilities


2,882



44



1.55



3,369



71



2.12


Total interest-bearing liabilities


$

311,315



$

3,120



1.00



$

283,819



$

5,173



1.82


Net interest income/spread




$

22,913



5.88





$

23,340



6.53


Impact of non-interest-bearing funding






0.18







0.30


Net interest margin






6.06

%






6.83

%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics














2020 Q4 vs.


Year Ended December 31,



2020


2020


2020


2020


2019


2020


2019


2020


2019


2020 vs.
2019

(Dollars in millions, except as noted)


Q4


Q3


Q2


Q1


Q4


Q3


Q4

Loans Held for Investment (Period-End)





















Credit card:





















   Domestic credit card(7)


$

98,504



$

95,541



$

99,390



$

109,549



$

118,606



3

%


(17)

%


$

98,504



$

118,606



(17)

%

   International card businesses


8,452



8,100



7,920



8,248



9,630



4



(12)



8,452



9,630



(12)


Total credit card(1)


106,956



103,641



107,310



117,797



128,236



3



(17)



106,956



128,236



(17)


Consumer banking:





















   Auto


65,762



65,394



63,319



61,364



60,362



1



9



65,762



60,362



9


   Retail banking


3,126



3,294



3,393



2,669



2,703



(5)



16



3,126



2,703



16


Total consumer banking


68,888



68,688



66,712



64,033



63,065



—



9



68,888



63,065



9


Commercial banking:





















   Commercial and multifamily real estate


30,681



31,197



30,953



32,373



30,245



(2)



1



30,681



30,245



1


   Commercial and industrial


45,099



44,697



46,537



48,787



44,263



1



2



45,099



44,263



2


Total commercial banking


75,780



75,894



77,490



81,160



74,508



—



2



75,780



74,508



2


Total loans held for investment


$

251,624



$

248,223



$

251,512



$

262,990



$

265,809



1



(5)



$

251,624



$

265,809



(5)


Loans Held for Investment (Average)





















Credit card:





















   Domestic credit card


$

95,453



$

97,306



$

100,996



$

113,711



$

112,965



(2)

%


(16)

%


$

101,837



$

105,270



(3)

%

   International card businesses


8,108



8,061



7,752



9,065



9,120



1



(11)



8,245



8,932



(8)


Total credit card(1)


103,561



105,367



108,748



122,776



122,085



(2)



(15)



110,082



114,202



(4)


Consumer banking:





















   Auto


65,590



64,476



61,798



61,005



59,884



2



10



63,227



57,938



9


   Retail banking


3,218



3,346



3,053



2,666



2,712



(4)



19



3,072



2,770



11


Total consumer banking


68,808



67,822



64,851



63,671



62,596



1



10



66,299



60,708



9


Commercial banking:





















   Commercial and multifamily real estate


30,825



30,918



31,723



31,081



30,173



—



2



31,135



29,608



5


   Commercial and industrial


44,495



45,404



48,036



45,361



44,016



(2)



1



45,819



42,863



7


Total commercial lending


75,320



76,322



79,759



76,442



74,189



(1)



2



76,954



72,471



6


   Small-ticket commercial real estate


—



—



—



—



—



**



**



—



69



**


Total commercial banking


75,320



76,322



79,759



76,442



74,189



(1)



2



76,954



72,540



6


Total average loans held for investment


$

247,689



$

249,511



$

253,358



$

262,889



$

258,870



(1)



(4)



$

253,335



$

247,450



2




















2020 Q4 vs.



Year Ended December 31,



2020


2020


2020


2020


2019


2020


2019


 

2020


 

2019


2020 vs.
2019



Q4


Q3


Q2


Q1


Q4


Q3


Q4

Net Charge-Off Rates




























Credit card:




























   Domestic credit card



2.69

%



3.64

%



4.53

%



4.68

%



4.32

%


(95)

bps


(163)

bps



3.93

%



4.58

%


(65)

bps

   International card businesses



1.86




2.89




3.47




4.65




4.22



(103)



(236)




3.26




3.71



(45)


Total credit card



2.63




3.58




4.46




4.68




4.31



(95)



(168)




3.88




4.51



(63)


Consumer banking:




























   Auto



0.47




0.23




1.16




1.51




1.90



24



(143)




0.83




1.51



(68)


   Retail banking



1.88




1.38




1.78




2.37




2.77



50



(89)




1.82




2.57



(75)


Total consumer banking



0.53




0.28




1.19




1.54




1.93



25



(140)




0.87




1.56



(69)


Commercial banking:




























   Commercial and multifamily real estate



0.02




0.41




0.09




—




—



(39)



2




0.13




—



13


   Commercial and industrial



0.74




0.45




0.78




0.96




0.60



29



14




0.73




0.36



37


Total commercial banking



0.45




0.43




0.51




0.57




0.35



2



10




0.49




0.22



27


Total net charge-offs



1.38




1.72




2.38




2.72




2.60



(34)



(122)




2.06




2.53



(47)


30+ Day Performing Delinquency Rates(2)




























Credit card:




























   Domestic credit card



2.42

%



2.21

%



2.74

%



3.69

%



3.93

%


21

bps


(151)

bps



2.42

%



3.93

%


(151)

bps

   International card businesses



2.61




2.15




2.71




3.66




3.47



46



(86)




2.61




3.47



(86)


Total credit card



2.44




2.20




2.74




3.69




3.89



24



(145)




2.44




3.89



(145)


Consumer banking:




























   Auto



4.78




3.76




3.28




5.29




6.88



102



(210)




4.78




6.88



(210)


   Retail banking



1.32




0.83




0.89




1.27




1.02



49



30




1.32




1.02



30


Total consumer banking



4.62




3.62




3.16




5.12




6.63



100



(201)




4.62




6.63



(201)


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




























Credit card:




























   International card businesses



0.24

%



0.25

%



0.29

%



0.29

%



0.26

%


(1)

bps


(2)

bps



0.24

%



0.26

%


(2)

bps

Total credit card



0.02




0.02




0.02




0.02




0.02



—



—




0.02




0.02



—


Consumer banking:




























   Auto



0.45




0.36




0.41




0.62




0.81



9



(36)




0.45




0.81



(36)


   Retail banking



0.96




0.77




0.70




0.88




0.87



19



9




0.96




0.87



9


Total consumer banking



0.47




0.38




0.43




0.63




0.81



9



(34)




0.47




0.81



(34)


Commercial banking:




























   Commercial and multifamily real estate



0.65




0.58




0.54




0.22




0.12



7



53




0.65




0.12



53


   Commercial and industrial



1.00




1.31




1.06




0.87




0.93



(31)



7




1.00




0.93



7


Total commercial banking



0.86




1.01




0.85




0.61




0.60



(15)



26




0.86




0.60



26


Total nonperforming loans



0.40




0.42




0.38




0.35




0.37



(2)



3




0.40




0.37



3


Total nonperforming assets



0.41




0.44




0.39




0.37




0.39



(3)



2




0.41




0.39



2


CAPITAL ONE FINANCIAL CORPORATION (COF)

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




Three Months Ended December 31, 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 September 30, 2020


$

11,062



$

550



$

11,612



$

2,647



$

100



$

2,747



$

1,770



$

16,129


Charge-offs


(912)



(80)



(992)



(309)



(18)



(327)



(91)



(1,410)


Recoveries


269



43



312



232



3



235



7



554


Net charge-offs


(643)



(37)



(680)



(77)



(15)



(92)



(84)



(856)


Provision (benefit) for credit losses


231



—



231



45



15



60



(28)



263


Allowance release for credit losses


(412)



(37)



(449)



(32)



—



(32)



(112)



(593)


Other changes(5)


—



28



28



—



—



—



—



28


Balance as of December 31, 2020


10,650



541



11,191



2,615



100



2,715



1,658



15,564


Reserve for unfunded lending commitments:

















Balance as of September 30, 2020


—



—



—



—



—



—



195



195


Provision for losses on unfunded lending commitments


—



—



—



—



—



—



—



—


Balance as of December 31, 2020


—



—



—



—



—



—



195



195


Combined allowance and reserve as of December 31, 2020


$

10,650



$

541



$

11,191



$

2,615



$

100



$

2,715



$

1,853



$

15,759





Year Ended December 31, 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


(5,318)



(431)



(5,749)



(1,464)



(70)



(1,534)



(394)



(7,677)


Recoveries


1,316



163



1,479



942



14



956



17



2,452


Net charge-offs


(4,002)



(268)



(4,270)



(522)



(56)



(578)



(377)



(5,225)


Provision for credit losses


6,979



348



7,327



1,676



77



1,753



1,158



10,238


Allowance build for credit losses


2,977



80



3,057



1,154



21



1,175



781



5,013


Other changes(5)


—



36



36



—



—



—



—



36


Balance as of December 31, 2020


10,650



541



11,191



2,615



100



2,715



1,658



15,564


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 December 31, 2020


—



—



—



—



—



—



195



195


Combined allowance and reserve as of December 31, 2020


$

10,650



$

541



$

11,191



$

2,615



$

100



$

2,715



$

1,853



$

15,759


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results




Three Months Ended December 31, 2020


Year Ended December 31, 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)


$

3,413



$

2,012



$

522



$

(74)



$

5,873



$

13,776



$

7,238



$

2,048



$

(149)



$

22,913


Non-interest income


1,054



136



268



6



1,464



3,823



466



923



398



5,610


Total net revenue (loss)


4,467



2,148



790



(68)



7,337



17,599



7,704



2,971



249



28,523


Provision (benefit) for credit losses


231



60



(28)



1



264



7,327



1,753



1,181



3



10,264


Non-interest expense


2,311



1,121



445



132



4,009



8,491



4,159



1,706



700



15,056


Income (loss) from continuing operations before income
taxes


1,925



967



373



(201)



3,064



1,781



1,792



84



(454)



3,203


Income tax provision (benefit)


454



230



88



(276)



496



420



425



19



(378)



486


Income (loss) from continuing operations, net of tax


$

1,471



$

737



$

285



$

75



$

2,568



$

1,361



$

1,367



$

65



$

(76)



$

2,717

























Three Months Ended September 30, 2020











(Dollars in millions)


Credit
Card


Consumer
Banking


Commercial
Banking(6)


Other(6)


Total











Net interest income (loss)


$

3,292



$

1,904



$

517



$

(158)



$

5,555












Non-interest income


1,013



107



237



469



1,826












Total net revenue


4,305



2,011



754



311



7,381












Provision (benefit) for credit losses


450



(43)



(74)



(2)



331












Non-interest expense


2,003



1,011



424



110



3,548












Income (loss) from continuing operations before income
taxes


1,852



1,043



404



203



3,502












Income tax provision (benefit)


438



247



95



316



1,096












Income (loss) from continuing operations, net of tax


$

1,414



$

796



$

309



$

(113)



$

2,406



































Three Months Ended December 31, 2019


Year Ended December 31, 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


$

3,794



$

1,662



$

494



$

116



$

6,066



$

14,461



$

6,732



$

1,983



$

164



$

23,340


Non-interest income (loss)


1,030



152



223



(44)



1,361



3,888



643



831



(109)



5,253


Total net revenue


4,824



1,814



717



72



7,427



18,349



7,375



2,814



55



28,593


Provision for credit losses


1,421



335



62



—



1,818



4,992



938



306



—



6,236


Non-interest expense


2,487



1,110



441



123



4,161



9,271



4,091



1,699



422



15,483


Income (loss) from continuing operations before income
taxes


916



369



214



(51)



1,448



4,086



2,346



809



(367)



6,874


Income tax provision (benefit)


212



86



50



(78)



270



959



547



188



(353)



1,341


Income (loss) from continuing operations, net of tax


$

704



$

283



$

164



$

27



$

1,178



$

3,127



$

1,799



$

621



$

(14)



$

5,533























CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business














2020 Q4 vs.


Year Ended December 31,



2020


2020


2020


2020


2019


2020


2019






2020 vs.

(Dollars in millions, except as noted)


Q4


Q3


Q2


Q1


Q4


Q3


Q4


2020


2019


2019

Credit Card





















Earnings:





















Net interest income


$

3,413



$

3,292



$

3,369



$

3,702



$

3,794



4

%


(10)

%


$

13,776



$

14,461



(5)

%

Non-interest income


1,054



1,013



845



911



1,030



4



2



3,823



3,888



(2)


Total net revenue


4,467



4,305



4,214



4,613



4,824



4



(7)



17,599



18,349



(4)


Provision for credit losses


231



450



2,944



3,702



1,421



(49)



(84)



7,327



4,992



47


Non-interest expense


2,311



2,003



1,969



2,208



2,487



15



(7)



8,491



9,271



(8)


Income (loss) from continuing operations before income taxes


1,925



1,852



(699)



(1,297)



916



4



110



1,781



4,086



(56)


Income tax provision (benefit)


454



438



(166)



(306)



212



4



114



420



959



(56)


Income (loss) from continuing operations, net of tax


$

1,471



$

1,414



$

(533)



$

(991)



$

704



4



109



$

1,361



$

3,127



(56)


Selected performance metrics:





















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


$

106,956



$

103,641



$

107,310



$

117,797



$

128,236



3



(17)



$

106,956



$

128,236



(17)


Average loans held for investment(1)


103,561



105,367



108,748



122,776



122,085



(2)



(15)



110,082



114,202



(4)


Average yield on loans outstanding(8)


14.24

%


13.83

%


13.72

%


14.46

%


15.02

%


41

bps


(78)

bps


14.08

%


15.49

%


(141)

bps

Total net revenue margin(9)


16.92



16.34



15.50



15.03



15.80



58



112



15.91



16.07



(16)


Net charge-off rate


2.63



3.58



4.46



4.68



4.31



(95)



(168)



3.88



4.51



(63)


30+ day performing delinquency rate


2.44



2.20



2.74



3.69



3.89



24



(145)



2.44



3.89



(145)


30+ day delinquency rate


2.45



2.21



2.75



3.70



3.91



24



(146)



2.45



3.91



(146)


Nonperforming loan rate(3)


0.02



0.02



0.02



0.02



0.02



—



—



0.02



0.02



—


Purchase volume(10)


$

117,141



$

107,102



$

90,149



$

99,920



$

116,631



9

%


—



$

414,312



$

424,765



(2)

%



















































2020 Q4 vs.


Year Ended December 31,



2020


2020


2020


2020


2019


2020


2019






2020 vs.

(Dollars in millions, except as noted)


Q4


Q3


Q2


Q1


Q4


Q3


Q4


2020


2019


2019

Domestic Card





















Earnings:





















Net interest income


$

3,129



$

2,995



$

3,094



$

3,381



$

3,473



4

%


(10)

%


$

12,599



$

13,265



(5)

%

Non-interest income


994



952



795



842



962



4



3



3,583



3,684



(3)


Total net revenue


4,123



3,947



3,889



4,223



4,435



4



(7)



16,182



16,949



(5)


Provision for credit losses


231



378



2,906



3,464



1,346



(39)



(83)



6,979



4,671



49


Non-interest expense


2,063



1,802



1,776



1,984



2,249



14



(8)



7,625



8,308



(8)


Income (loss) from continuing operations before income taxes


1,829



1,767



(793)



(1,225)



840



4



118



1,578



3,970



(60)


Income tax provision (benefit)


433



419



(188)



(290)



196



3



121



374



925



(60)


Income (loss) from continuing operations, net of tax


$

1,396



$

1,348



$

(605)



$

(935)



$

644



4



117



$

1,204



$

3,045



(60)


Selected performance metrics:





















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


$

98,504



$

95,541



$

99,390



$

109,549



$

118,606



3



(17)



$

98,504



$

118,606



(17)


Average loans held for investment(1)


95,453



97,306



100,996



113,711



112,965



(2)



(16)



101,837



105,270



(3)


Average yield on loans outstanding(8)


14.07

%


13.57

%


13.52

%


14.30

%


14.91

%


50

bps


(84)

bps


13.88

%


15.47

%


(159)

bps

Total net revenue margin(9)


16.91



16.22



15.40



14.86



15.70



69



121



15.80



16.10



(30)


Net charge-off rate


2.69



3.64



4.53



4.68



4.32



(95)



(163)



3.93



4.58



(65)


30+ day performing delinquency rate


2.42



2.21



2.74



3.69



3.93



21



(151)



2.42