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)

News provided by

Capital One Financial Corporation

Jan 26, 2021, 16:05 ET

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