Capital One Reports Second Quarter 2019 Net Income of $1.6 billion, or $3.24 per share

Excluding adjusting items, Second Quarter 2019 Net Income of $3.37 per share(1)

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Jul 18, 2019, 22:57 ET

MCLEAN, Va., July 18, 2019 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the second quarter of 2019 of $1.6 billion, or $3.24 per diluted common share, compared with net income of $1.4 billion, or $2.86 per diluted common share in the first quarter of 2019, and with net income of $1.9 billion, or $3.71 per diluted common share in the second quarter of 2018. Excluding adjusting items, net income for the second quarter of 2019 was $3.37 per diluted common share⁽¹⁾.

"In the second quarter, Capital One continued to post solid results as we invest to grow and to drive our digital transformation," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "As the benefits from our digital transformation continue and increase, we are well positioned to succeed in a rapidly changing marketplace and create long-term shareholder value."

Adjusting items in the second quarter of 2019, which are excluded from diluted earning per sharing (EPS), efficiency ratio and operating efficiency ratio metrics (see Table 15 in our Financial Supplement for additional information):

	Pre-Tax		Diluted EPS
(Dollars in millions, except per share data)	Impact		Impact
Walmart launch and related integration expenses	$	(54)	$	(0.09)
Restructuring charges	(28)		(0.04)

The quarter included one notable item:

	Pre-Tax		Diluted EPS
(Dollars in millions, except per share data)	Impact		Impact
Sale of partnership receivables	$ 128		$ 0.21

⁽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.

All comparisons below are for the second quarter of 2019 compared with the first quarter of 2019 unless otherwise noted.

Second Quarter 2019 Income Statement Summary:

Total net revenue increased 1 percent to $7.1 billion.
Total non-interest expense increased 3 percent to $3.8 billion:
- 6 percent increase in marketing.
- 3 percent increase in operating expenses.
Pre-provision earnings decreased 2 percent to $3.3 billion⁽²⁾.
Provision for credit losses decreased 21 percent to $1.3 billion:
- Net charge-offs of $1.5 billion.
- $166 million reserve release.
Net interest margin of 6.80 percent, decreased 6 basis points.
Efficiency ratio of 53.05 percent.
- Efficiency ratio excluding adjusting items of 51.90 percent⁽¹⁾.
Operating efficiency ratio of 45.38 percent.
- Operating efficiency ratio excluding adjusting items of 44.24 percent⁽¹⁾.

Second Quarter 2019 Balance Sheet Summary:

Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.3 percent at June 30, 2019.
Period-end loans held for investment in the quarter increased $4.2 billion, or 2 percent, to $244.5 billion.
- Credit Card period-end loans increased $2.3 billion, or 2 percent, to $112.1 billion.
  - Domestic Card period-end loans increased $1.9 billion, or 2 percent, to $103.0 billion.
- Consumer Banking period-end loans increased $1.1 billion, or 2 percent, to $60.3 billion.
  - Auto period-end loans increased $1.1 billion, or 2 percent, to $57.6 billion.
- Commercial Banking period-end loans increased $803 million, or 1 percent, to $72.0 billion.
Average loans held for investment in the quarter increased $694 million, or less than 1 percent, to $242.7 billion.
- Credit Card average loans decreased $658 million, or 1 percent, to $110.8 billion.
  - Domestic Card average loans decreased $737 million, or 1 percent, to $101.9 billion.
- Consumer Banking average loans increased $793 million, or 1 percent, to $59.9 billion.
  - Auto average loans increased $836 million, or 1 percent, to $57.1 billion.
- Commercial Banking average loans increased $559 million, or 1 percent, to $72.0 billion.
Period-end total deposits decreased $572 million, or less than 1 percent, to $254.5 billion, while average deposits increased $2.2 billion, or 1 percent, to $253.6 billion.
Interest-bearing deposits rate paid increased 7 basis points to 1.51 percent.

⁽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 July 18, 2019 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 August 1, 2019 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, 2018.

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 $254.5 billion in deposits and $373.6 billion in total assets as of June 30, 2019. 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⁾
Second Quarter 2019
Table of Contents

Capital One Financial Corporation Consolidated Results			Page
	Table 1:	Financial Summary—Consolidated	1
	Table 2:	Selected Metrics—Consolidated	4
	Table 3:	Consolidated Statements of Income	5
	Table 4:	Consolidated Balance Sheets	7
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	9
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	10
	Table 7:	Loan Information and Performance Statistics	11
	Table 8:	Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity	13
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	14
	Table 10:	Financial & Statistical Summary—Credit Card Business	15
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	17
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	18
	Table 13:	Financial & Statistical Summary—Other and Total	19
Other
	Table 14:	Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)	20
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	21
__________
⁽¹⁾	The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended June 30, 2019 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

											2019 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	2019		2019		2018		2018		2018		2019		2018						2019 vs.
(Dollars in millions, except per share data and as noted)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2019		2018		2018
Income Statement
Net interest income	$	5,746	$	5,791	$	5,820	$	5,786	$	5,551	(1)	%	4	%	$	11,537	$	11,269	2	%
Non-interest income	1,378		1,292		1,193		1,176		1,641		7		(16)		2,670		2,832		(6)
Total net revenue⁽¹⁾	7,124		7,083		7,013		6,962		7,192		1		(1)		14,207		14,101		1
Provision for credit losses	1,342		1,693		1,638		1,268		1,276		(21)		5		3,035		2,950		3
Non-interest expense:
Marketing	546		517		831		504		425		6		28		1,063		839		27
Operating expense	3,233		3,154		3,301		3,269		2,999		3		8		6,387		6,158		4
Total non-interest expense	3,779		3,671		4,132		3,773		3,424		3		10		7,450		6,997		6
Income from continuing operations before income taxes	2,003		1,719		1,243		1,921		2,492		17		(20)		3,722		4,154		(10)
Income tax provision (benefit)	387		309		(21)		420		575		25		(33)		696		894		(22)
Income from continuing operations, net of tax	1,616		1,410		1,264		1,501		1,917		15		(16)		3,026		3,260		(7)
Income (loss) from discontinued operations, net of tax	9		2		(3)		1		(11)		**		**		11		(8)		**
Net income	1,625		1,412		1,261		1,502		1,906		15		(15)		3,037		3,252		(7)
Dividends and undistributed earnings allocated to participating securities⁽²⁾	(12)		(12)		(9)		(9)		(12)		—		—		(24)		(23)		4
Preferred stock dividends	(80)		(52)		(80)		(53)		(80)		54		—		(132)		(132)		—
Net income available to common stockholders	$	1,533	$	1,348	$	1,172	$	1,440	$	1,814	14		(15)		$	2,881	$	3,097	(7)
Common Share Statistics
Basic earnings per common share:⁽²⁾
Net income from continuing operations	$	3.24	$	2.87	$	2.50	$	3.01	$	3.76	13	%	(14)	%	$	6.11	$	6.39	(4)	%
Income (loss) from discontinued operations	0.02		—		(0.01)		—		(0.02)		**		**		0.02		(0.02)		**
Net income per basic common share	$	3.26	$	2.87	$	2.49	$	3.01	$	3.74	14		(13)		$	6.13	$	6.37	(4)
Diluted earnings per common share:⁽²⁾
Net income from continuing operations	$	3.22	$	2.86	$	2.49	$	2.99	$	3.73	13		(14)		$	6.08	$	6.35	(4)
Income (loss) from discontinued operations	0.02		—		(0.01)		—		(0.02)		**		**		0.02		(0.02)		**
Net income per diluted common share	$	3.24	$	2.86	$	2.48	$	2.99	$	3.71	13		(13)		$	6.10	$	6.33	(4)
Weighted-average common shares outstanding (in millions):
Basic	470.8		469.4		470.0		477.8		485.1		—		(3)		470.1		485.9		(3)
Diluted	473.0		471.6		472.7		480.9		488.3		—		(3)		472.3		489.6		(4)
Common shares outstanding (period-end, in millions)	470.3		469.6		467.7		473.7		478.4		—		(2)		470.3		478.4		(2)
Dividends declared and paid per common share	$	0.40	$	0.40	$	0.40	$	0.40	$	0.40	—		—		$	0.80	$	0.80	—
Tangible book value per common share (period-end)⁽³⁾	77.65		72.86		69.20		66.15		63.86		7		22		77.65		63.86		22

											2019 Q2 vs.				Six Months Ended June 30,
(Dollars in millions)	2019		2019		2018		2018		2018		2019		2018						2019 vs.
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2019		2018		2018
Balance Sheet (Period-End)
Loans held for investment	$	244,460	$	240,273	$	245,899	$	238,761	$	236,124	2	%	4	%	$	244,460	$	236,124	4	%
Interest-earning assets	339,160		340,071		341,293		331,293		332,167		—		2		339,160		332,167		2
Total assets	373,619		373,191		372,538		362,909		363,989		—		3		373,619		363,989		3
Interest-bearing deposits	231,161		230,199		226,281		222,356		222,605		—		4		231,161		222,605		4
Total deposits	254,535		255,107		249,764		247,195		248,225		—		3		254,535		248,225		3
Borrowings	49,233		50,358		58,905		52,205		53,310		(2)		(8)		49,233		53,310		(8)
Common equity	51,406		49,120		47,307		46,277		45,566		5		13		51,406		45,566		13
Total stockholders' equity	55,767		53,481		51,668		50,638		49,926		4		12		55,767		49,926		12
Balance Sheet (Average Balances)
Loans held for investment	$	242,653	$	241,959	$	241,371	$	236,766	$	240,758	—		1	%	$	242,307	$	245,218	(1)	%
Interest-earning assets	338,026		337,793		334,714		330,272		333,495		—		1		337,913		331,850		2
Total assets	371,095		370,394		365,243		360,937		363,929		—		2		370,746		362,988		2
Interest-bearing deposits	230,452		227,572		222,827		221,431		223,079		1	%	3		229,020		221,384		3
Total deposits	253,634		251,410		247,663		246,720		248,790		1		2		252,528		247,040		2
Borrowings	49,982		53,055		53,994		51,684		52,333		(6)		(4)		51,510		53,454		(4)
Common equity	50,209		48,359		46,753		46,407		45,466		4		10		49,289		45,070		9
Total stockholders' equity	54,570		52,720		51,114		50,768		49,827		4		10		53,650		49,431		9

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Selected Metrics—Consolidated

																2019 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except as noted)	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Performance Metrics
Net interest income growth (period over period)	(1)		%	—			1		%	4		%	(3)		%	**		**		2		%	3		%	**
Non-interest income growth (period over period)	7			8		%	1			(28)			38			**		**		(6)			24			**
Total net revenue growth (period over period)	1			1			1			(3)			4			**		**		1			7			**
Total net revenue margin⁽⁴⁾	8.43			8.39			8.38			8.43			8.63			4	bps	(20)	bps	8.41			8.50			(9)	bps
Net interest margin⁽⁵⁾	6.80			6.86			6.96			7.01			6.66			(6)		14		6.83			6.79			4
Return on average assets	1.74			1.52			1.38			1.66			2.11			22		(37)		1.63			1.80			(17)
Return on average tangible assets⁽⁶⁾	1.82			1.59			1.44			1.74			2.20			23		(38)		1.70			1.87			(17)
Return on average common equity⁽⁷⁾	12.14			11.13			10.05			12.40			16.06			101		(392)		11.65			13.78			(213)
Return on average tangible common equity⁽⁸⁾	17.26			16.11			14.78			18.32			23.99			115		(673)		16.70			20.70			(400)
Non-interest expense as a percentage of average loans held for investment	6.23			6.07			6.85			6.37			5.69			16		54		6.15			5.71			44
Efficiency ratio⁽⁹⁾	53.05			51.83			58.92			54.19			47.61			122		544		52.44			49.62			282
Operating efficiency ratio⁽¹⁰⁾	45.38			44.53			47.07			46.95			41.70			85		368		44.96			43.67			129
Effective income tax rate for continuing operations	19.3			18.0			(1.7)			21.9			23.1			130		(380)		18.7			21.5			(280)
Employees (in thousands), period-end	50.7			48.8			47.6			47.6			47.8			4	%	6	%	50.7			47.8			6	%
Credit Quality Metrics
Allowance for loan and lease losses	$	7,133		$	7,313		$	7,220		$	7,219		$	7,368		(2)	%	(3)	%	$	7,133		$	7,368		(3)	%
Allowance as a percentage of loans held for investment	2.92		%	3.04		%	2.94		%	3.02		%	3.12		%	(12)	bps	(20)	bps	2.92		%	3.12		%	(20)	bps
Net charge-offs	$	1,508		$	1,599		$	1,610		$	1,425		$	1,459		(6)	%	3	%	$	3,107		$	3,077		1	%
Net charge-off rate⁽¹¹⁾	2.48		%	2.64		%	2.67		%	2.41		%	2.42		%	(16)	bps	6	bps	2.56		%	2.51		%	5	bps
30+ day performing delinquency rate	3.15			3.23			3.62			3.28			2.88			(8)		27		3.15			2.88			27
30+ day delinquency rate	3.35			3.40			3.84			3.48			3.05			(5)		30		3.35			3.05			30
Capital Ratios⁽¹²⁾
Common equity Tier 1 capital	12.3		%	11.9		%	11.2		%	11.2		%	11.1		%	40	bps	120	bps	12.3		%	11.1		%	120	bps
Tier 1 capital	13.8			13.4			12.7			12.8			12.6			40		120		13.8			12.6			120
Total capital	16.2			15.8			15.1			15.2			15.1			40		110		16.2			15.1			110
Tier 1 leverage	11.4			11.0			10.7			10.6			10.3			40		110		11.4			10.3			110
Tangible common equity ("TCE")⁽¹³⁾	10.2			9.6			9.1			9.0			8.8			60		140		10.2			8.8			140

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3: Consolidated Statements of Income

											2019 Q2 vs.				Six Months Ended June 30,
	2019		2019		2018		2018		2018		2019		2018						2019 vs.
(Dollars in millions, except per share data and as noted)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2019		2018		2018
Interest income:
Loans, including loans held for sale	$	6,383	$	6,368	$	6,358	$	6,247	$	5,989	—		7	%	$	12,751	$	12,123	5	%
Investment securities	629		655		627		593		539		(4)	%	17		1,284		991		30
Other	64		69		63		55		68		(7)		(6)		133		119		12
Total interest income	7,076		7,092		7,048		6,895		6,596		—		7		14,168		13,233		7
Interest expense:
Deposits	870		817		756		681		622		6		40		1,687		1,161		45
Securitized debt obligations	139		143		138		127		124		(3)		12		282		231		22
Senior and subordinated notes	310		314		297		288		289		(1)		7		624		540		16
Other borrowings	11		27		37		13		10		(59)		10		38		32		19
Total interest expense	1,330		1,301		1,228		1,109		1,045		2		27		2,631		1,964		34
Net interest income	5,746		5,791		5,820		5,786		5,551		(1)		4		11,537		11,269		2
Provision for credit losses	1,342		1,693		1,638		1,268		1,276		(21)		5		3,035		2,950		3
Net interest income after provision for credit losses	4,404		4,098		4,182		4,518		4,275		7		3		8,502		8,319		2
Non-interest income:
Interchange fees, net	820		758		743		714		723		8		13		1,578		1,366		16
Service charges and other customer-related fees	352		353		352		410		391		—		(10)		705		823		(14)
Net securities gains (losses)	15		24		(20)		(196)		(1)		(38)		**		39		7		**
Other	191		157		118		248		528		22		(64)		348		636		(45)
Total non-interest income	1,378		1,292		1,193		1,176		1,641		7		(16)		2,670		2,832		(6)
Non-interest expense:
Salaries and associate benefits	1,558		1,573		1,345		1,432		1,430		(1)		9		3,131		2,950		6
Occupancy and equipment	521		493		610		515		503		6		4		1,014		993		2
Marketing	546		517		831		504		425		6		28		1,063		839		27
Professional services	314		291		426		275		234		8		34		605		444		36
Communications and data processing	329		303		326		311		317		9		4		632		623		1
Amortization of intangibles	29		30		43		44		43		(3)		(33)		59		87		(32)
Other	482		464		551		692		472		4		2		946		1,061		(11)
Total non-interest expense	3,779		3,671		4,132		3,773		3,424		3		10		7,450		6,997		6
Income from continuing operations before income taxes	2,003		1,719		1,243		1,921		2,492		17		(20)		3,722		4,154		(10)
Income tax provision (benefit)	387		309		(21)		420		575		25		(33)		696		894		(22)
Income from continuing operations, net of tax	1,616		1,410		1,264		1,501		1,917		15		(16)		3,026		3,260		(7)
Income (loss) from discontinued operations, net of tax	9		2		(3)		1		(11)		**		**		11		(8)		**
Net income	1,625		1,412		1,261		1,502		1,906		15		(15)		3,037		3,252		(7)
Dividends and undistributed earnings allocated to participating securities⁽²⁾	(12)		(12)		(9)		(9)		(12)		—		—		(24)		(23)		4
Preferred stock dividends	(80)		(52)		(80)		(53)		(80)		54		—		(132)		(132)		—
Net income available to common stockholders	$	1,533	$	1,348	$	1,172	$	1,440	$	1,814	14		(15)		$	2,881	$	3,097	(7)

											2019 Q2 vs.				Six Months Ended June 30,
	2019		2019		2018		2018		2018		2019		2018						2019 vs.
(Dollars in millions, except per share data and as noted)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2019		2018		2018
Basic earnings per common share:⁽²⁾
Net income from continuing operations	$	3.24	$	2.87	$	2.50	$	3.01	$	3.76	13	%	(14)	%	$	6.11	$	6.39	(4)	%
Income (loss) from discontinued operations	0.02		—		(0.01)		—		(0.02)		**		**		0.02		(0.02)		**
Net income per basic common share	$	3.26	$	2.87	$	2.49	$	3.01	$	3.74	14		(13)		$	6.13	$	6.37	(4)
Diluted earnings per common share:⁽²⁾
Net income from continuing operations	$	3.22	$	2.86	$	2.49	$	2.99	$	3.73	13		(14)		$	6.08	$	6.35	(4)
Income (loss) from discontinued operations	0.02		—		(0.01)		—		(0.02)		**		**		0.02		(0.02)		**
Net income per diluted common share	$	3.24	$	2.86	$	2.48	$	2.99	$	3.71	13		(13)		$	6.10	$	6.33	(4)
Weighted-average common shares outstanding (in millions):
Basic common shares	470.8		469.4		470.0		477.8		485.1		—		(3)		470.1		485.9		(3)
Diluted common shares	473.0		471.6		472.7		480.9		488.3		—		(3)		472.3		489.6		(4)

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets

											2019 Q2 vs.
	2019		2019		2018		2018		2018		2019		2018
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Assets:
Cash and cash equivalents:
Cash and due from banks	$	5,184	$	4,572	$	4,768	$	4,547	$	4,499	13	%	15	%
Interest-bearing deposits and other short-term investments	9,927		12,897		8,418		6,335		7,774		(23)		28
Total cash and cash equivalents	15,111		17,469		13,186		10,882		12,273		(13)		23
Restricted cash for securitization investors	710		1,969		303		746		1,023		(64)		(31)
Investment securities:
Securities available for sale	45,658		45,888		46,150		47,384		50,691		(1)		(10)
Securities held to maturity	35,475		36,503		36,771		34,631		33,464		(3)		6
Total investment securities	81,133		82,391		82,921		82,015		84,155		(2)		(4)
Loans held for investment:
Unsecuritized loans held for investment	211,556		208,591		211,702		204,796		201,222		1		5
Loans held in consolidated trusts	32,904		31,682		34,197		33,965		34,902		4		(6)
Total loans held for investment	244,460		240,273		245,899		238,761		236,124		2		4
Allowance for loan and lease losses	(7,133)		(7,313)		(7,220)		(7,219)		(7,368)		(2)		(3)
Net loans held for investment	237,327		232,960		238,679		231,542		228,756		2		4
Loans held for sale, at lower of cost or fair value	1,829		905		1,192		1,402		1,480		102		24
Premises and equipment, net	4,243		4,205		4,191		4,149		4,095		1		4
Interest receivable	1,544		1,615		1,614		1,518		1,493		(4)		3
Goodwill	14,545		14,546		14,544		14,513		14,531		—		—
Other assets	17,177		17,131		15,908		16,142		16,183		—		6
Total assets	$	373,619	$	373,191	$	372,538	$	362,909	$	363,989	—		3

											2019 Q2 vs.
	2019		2019		2018		2018		2018		2019		2018
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Liabilities:
Interest payable	$	437	$	382	$	458	$	391	$	450	14	%	(3)	%
Deposits:
Non-interest-bearing deposits	23,374		24,908		23,483		24,839		25,620		(6)		(9)
Interest-bearing deposits	231,161		230,199		226,281		222,356		222,605		—		4
Total deposits	254,535		255,107		249,764		247,195		248,225		—		3
Securitized debt obligations	16,959		19,273		18,307		18,649		19,649		(12)		(14)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	359		335		352		384		553		7		(35)
Senior and subordinated notes	31,822		30,645		30,826		31,291		32,920		4		(3)
Other borrowings	93		105		9,420		1,881		188		(11)		(51)
Total other debt	32,274		31,085		40,598		33,556		33,661		4		(4)
Other liabilities	13,647		13,863		11,743		12,480		12,078		(2)		13
Total liabilities	317,852		319,710		320,870		312,271		314,063		(1)		1

Stockholders' equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	32,262		32,160		32,040		31,978		31,868		—		1
Retained earnings	38,386		37,030		35,875		34,883		33,626		4		14
Accumulated other comprehensive income (loss)	170		(660)		(1,263)		(1,877)		(1,793)		**		**
Treasury stock, at cost	(15,058)		(15,056)		(14,991)		(14,353)		(13,782)		—		9
Total stockholders' equity	55,767		53,481		51,668		50,638		49,926		4		12
Total liabilities and stockholders' equity	$	373,619	$	373,191	$	372,538	$	362,909	$	363,989	—		3

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 $318 million in Q2 2019, $376 million in Q1 2019, $391 million in Q4 2018, $305 million in Q3 2018 and $309 million in Q2 2018 for the estimated uncollectible amount of billed 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⁾	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.
⁽⁴⁾	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.
⁽⁵⁾	Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
⁽⁶⁾	Return on average tangible assets is a non-GAAP measure calculated based on annualized income 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.
⁽⁷⁾	Return on average common equity is calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.
⁽⁸⁾	Return on average tangible common equity ("ROTCE") is a non-GAAP measure calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Our calculation of ROTCE 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.
⁽⁹⁾	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.
⁽¹⁰⁾	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.
⁽¹¹⁾	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.
⁽¹²⁾	Capital ratios as of the end of Q2 2019 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.
⁽¹³⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.
**	Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 6: Average Balances, Net Interest Income and Net Interest Margin

	2019 Q2						2019 Q1						2018 Q2
	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)	Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale	$	243,831	$	6,383	10.47	%	$	242,929	$	6,368	10.49	%	$	242,043	$	5,989	9.90	%
Investment securities	82,383		629		3.05		83,679		655		3.13		79,829		539		2.70
Cash equivalents and other	11,812		64		2.16		11,185		69		2.47		11,623		68		2.34
Total interest-earning assets	$	338,026	$	7,076	8.37		$	337,793	$	7,092	8.40		$	333,495	$	6,596	7.91
Interest-bearing liabilities:
Interest-bearing deposits	$	230,452	$	870	1.51		$	227,572	$	817	1.44		$	223,079	$	622	1.12
Securitized debt obligations	18,262		139		3.04		18,747		143		3.05		19,147		124		2.59
Senior and subordinated notes	30,630		310		4.05		30,836		314		4.07		32,250		289		3.58
Other borrowings and liabilities	2,322		11		1.91		4,684		27		2.34		4,132		10		0.97
Total interest-bearing liabilities	$	281,666	$	1,330	1.89		$	281,839	$	1,301	1.85		$	278,608	$	1,045	1.50
Net interest income/spread			$	5,746	6.48				$	5,791	6.55				$	5,551	6.41
Impact of non-interest-bearing funding					0.32						0.31						0.25
Net interest margin					6.80	%					6.86	%					6.66	%

							Six Months Ended June 30,
							2019						2018
							Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate
(Dollars in millions, except as noted)							Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale							$	243,383	$	12,751	10.48	%	$	246,451	$	12,123	9.84	%
Investment securities							83,027		1,284		3.09		74,731		991		2.65
Cash equivalents and other							11,503		133		2.31		10,668		119		2.23
Total interest-earning assets							$	337,913	$	14,168	8.39		$	331,850	$	13,233	7.98
Interest-bearing liabilities:
Interest-bearing deposits							$	229,020	$	1,687	1.47		$	221,384	$	1,161	1.05
Securitized debt obligations							18,503		282		3.05		19,421		231		2.38
Senior and subordinated notes							30,732		624		4.06		31,345		540		3.45
Other borrowings and liabilities							3,497		38		2.20		5,483		32		1.17
Total interest-bearing liabilities							$	281,752	$	2,631	1.87		$	277,633	$	1,964	1.41
Net interest income/spread									$	11,537	6.52				$	11,269	6.57
Impact of non-interest-bearing funding											0.31						0.22
Net interest margin											6.83	%					6.79	%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics

																2019 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except as noted)	2019 Q2			2019 Q1			2018 Q4			2018 Q3			2018 Q2			2019 Q1		2018 Q2		2019			2018			2019 vs. 2018
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	102,959		$	101,052		$	107,350		$	101,564		$	100,714		2	%	2	%	$	102,959		$	100,714		2	%
International card businesses	9,182			8,784			9,011			9,121			9,063			5		1		9,182			9,063			1
Total credit card	112,141			109,836			116,361			110,685			109,777			2		2		112,141			109,777			2
Consumer banking:
Auto	57,556			56,444			56,341			56,422			55,781			2		3		57,556			55,781			3
Retail banking	2,771			2,804			2,864			2,907			2,946			(1)		(6)		2,771			2,946			(6)
Total consumer banking	60,327			59,248			59,205			59,329			58,727			2		3		60,327			58,727			3
Commercial banking:
Commercial and multifamily real estate	29,861			28,984			28,899			29,064			28,292			3		6		29,861			28,292			6
Commercial and industrial	42,125			42,197			41,091			39,325			38,948			—		8		42,125			38,948			8
Total commercial lending	71,986			71,181			69,990			68,389			67,240			1		7		71,986			67,240			7
Small-ticket commercial real estate	6			8			343			358			369			(25)		(98)		6			369			(98)
Total commercial banking	71,992			71,189			70,333			68,747			67,609			1		6		71,992			67,609			6
Other loans	—			—			—			—			11			**		**		—			11			**
Total loans held for investment	$	244,460		$	240,273		$	245,899		$	238,761		$	236,124		2		4		$	244,460		$	236,124		4
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	101,930		$	102,667		$	103,391		$	100,566		$	98,895		(1)	%	3	%	$	102,296		$	99,668		3	%
International card businesses	8,868			8,789			8,958			8,944			8,998			1		(1)		8,829			9,025			(2)
Total credit card	110,798			111,456			112,349			109,510			107,893			(1)		3		111,125			108,693			2
Consumer banking:
Auto	57,070			56,234			56,469			56,297			55,298			1		3		56,654			54,824			3
Home loan⁽¹⁾	—			—			—			—			8,098			**		**		—			12,635			**
Retail banking	2,788			2,831			2,873			2,923			3,084			(2)		(10)		2,809			3,256			(14)
Total consumer banking	59,858			59,065			59,342			59,220			66,480			1		(10)		59,463			70,715			(16)
Commercial banking:
Commercial and multifamily real estate	29,514			29,034			28,855			28,354			27,302			2		8		29,276			26,924			9
Commercial and industrial	42,476			42,132			40,476			39,318			38,686			1		10		42,304			38,467			10
Total commercial lending	71,990			71,166			69,331			67,672			65,988			1		9		71,580			65,391			9
Small-ticket commercial real estate	7			272			349			364			376			(97)		(98)		139			385			(64)
Total commercial banking	71,997			71,438			69,680			68,036			66,364			1		8		71,719			65,776			9
Other loans	—			—			—			—			21			**		**		—			34			**
Total average loans held for investment	$	242,653		$	241,959		$	241,371		$	236,766		$	240,758		—		1		$	242,307		$	245,218		(1)

																2019 Q2 vs.				Six Months Ended June 30,
	2019 Q2			2019 Q1			2018 Q4			2018 Q3			2018 Q2			2019 Q1		2018 Q2		2019			2018			2019 vs. 2018
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card⁽²⁾		4.86	%		5.04	%		4.64	%		4.35	%		4.72	%	(18)	bps	14	bps		4.95	%		4.99	%	(4)	bps
International card businesses		3.63			3.20			4.22			1.92			4.14		43		(51)			3.41			3.32		9
Total credit card⁽²⁾		4.76			4.90			4.61			4.15			4.67		(14)		9			4.83			4.85		(2)
Consumer banking:
Auto		1.09			1.44			1.98			1.73			1.32		(35)		(23)			1.26			1.42		(16)
Retail banking		2.42			2.56			2.56			2.62			2.07		(14)		35			2.49			1.97		52
Total consumer banking		1.15			1.49			2.01			1.77			1.19		(34)		(4)			1.32			1.19		13
Commercial banking:
Commercial and multifamily real estate		—			—			(0.01)			0.04			—		—		—			—			—		—
Commercial and industrial		0.15			0.13			0.17			0.25			(0.07)		2		22			0.14			0.06		8
Total commercial lending		0.09			0.08			0.10			0.16			(0.04)		1		13			0.08			0.04		4
Small-ticket commercial real estate		**			0.23			0.13			0.56			(0.40)		**		**			**			(0.29)		**
Total commercial banking		0.09			0.08			0.10			0.16			(0.04)		1		13			0.08			0.04		4
Total net charge-offs		2.48			2.64			2.67			2.41			2.42		(16)		6			2.56			2.51		5
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card		3.40	%		3.72	%		4.04	%		3.80	%		3.32	%	(32)	bps	8	bps		3.40	%		3.32	%	8	bps
International card businesses		3.40			3.61			3.52			3.55			3.39		(21)		1			3.40			3.39		1
Total credit card		3.40			3.71			4.00			3.78			3.32		(31)		8			3.40			3.32		8
Consumer banking:
Auto		6.10			5.78			6.95			6.27			5.57		32		53			6.10			5.57		53
Retail banking		0.93			0.84			1.01			0.80			0.84		9		9			0.93			0.84		9
Total consumer banking		5.87			5.55			6.67			6.01			5.33		32		54			5.87			5.33		54
Nonperforming Loans and Nonperforming Assets Rates⁽³⁾⁽⁴⁾
Credit card:
International card businesses		0.25	%		0.26	%		0.25	%		0.22	%		0.22	%	(1)	bps	3	bps		0.25	%		0.22	%	3	bps
Total credit card		0.02			0.02			0.02			0.02			0.02		—		—			0.02			0.02		—
Consumer banking:
Auto		0.64			0.57			0.80			0.70			0.55		7		9			0.64			0.55		9
Retail banking		1.02			1.10			1.04			1.13			1.15		(8)		(13)			1.02			1.15		(13)
Total consumer banking		0.66			0.59			0.81			0.72			0.58		7		8			0.66			0.58		8
Commercial banking:
Commercial and multifamily real estate		0.14			0.24			0.29			0.13			0.01		(10)		13			0.14			0.01		13
Commercial and industrial		0.74			0.71			0.54			0.55			0.57		3		17			0.74			0.57		17
Total commercial lending		0.49			0.52			0.44			0.37			0.33		(3)		16			0.49			0.33		16
Small-ticket commercial real estate		**			**			1.80			1.65			1.18		**		**			**			1.18		**
Total commercial banking		0.50			0.53			0.44			0.38			0.34		(3)		16			0.50			0.34		16
Total nonperforming loans		0.32			0.31			0.33			0.30			0.25		1		7			0.32			0.25		7
Total nonperforming assets		0.34			0.33			0.35			0.33			0.30		1		4			0.34			0.30		4

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity

	Three Months Ended June 30, 2019
	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 loan and lease losses:
Balance as of March 31, 2019	$	5,141	$	427	$	5,568	$	1,002	$	60	$	1,062	$	683	$	7,313
Charge-offs	(1,580)		(131)		(1,711)		(401)		(22)		(423)		(23)		(2,157)
Recoveries	340		51		391		246		5		251		7		649
Net charge-offs	(1,240)		(80)		(1,320)		(155)		(17)		(172)		(16)		(1,508)
Provision for loan and lease losses	1,024		71		1,095		150		15		165		69		1,329
Allowance build (release) for loan and lease losses	(216)		(9)		(225)		(5)		(2)		(7)		53		(179)
Other changes⁽⁵⁾	—		(1)		(1)		—		—		—		—		(1)
Balance as of June 30, 2019	4,925		417		5,342		997		58		1,055		736		7,133
Reserve for unfunded lending commitments:
Balance as of March 31, 2019	—		—		—		—		4		4		127		131
Provision for losses on unfunded lending commitments	—		—		—		—		—		—		13		13
Balance as of June 30, 2019	—		—		—		—		4		4		140		144
Combined allowance and reserve as of June 30, 2019	$	4,925	$	417	$	5,342	$	997	$	62	$	1,059	$	876	$	7,277

	Six Months Ended June 30, 2019
	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 loan and lease losses:
Balance as of December 31, 2018	$	5,144	$	391	$	5,535	$	990	$	58	$	1,048	$	637	$	7,220
Charge-offs	(3,232)		(261)		(3,493)		(850)		(44)		(894)		(43)		(4,430)
Recoveries	698		111		809		492		9		501		13		1,323
Net charge-offs	(2,534)		(150)		(2,684)		(358)		(35)		(393)		(30)		(3,107)
Provision for loan and lease losses	2,315		169		2,484		365		35		400		129		3,013
Allowance build (release) for loan and lease losses	(219)		19		(200)		7		—		7		99		(94)
Other changes⁽⁵⁾	—		7		7		—		—		—		—		7
Balance as of June 30, 2019	4,925		417		5,342		997		58		1,055		736		7,133
Reserve for unfunded lending commitments:
Balance as of December 31, 2018	—		—		—		—		4		4		118		122
Provision for losses on unfunded lending commitments	—		—		—		—		—		—		22		22
Balance as of June 30, 2019	—		—		—		—		4		4		140		144
Combined allowance and reserve as of June 30, 2019	$	4,925	$	417	$	5,342	$	997	$	62	$	1,059	$	876	$	7,277

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial Summary—Business Segment Results

	Three Months Ended June 30, 2019										Six Months Ended June 30, 2019
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾		Total		Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾		Total
Net interest income (loss)	$	3,531	$	1,709	$	514	$	(8)	$	5,746	$	7,121	$	3,388	$	1,003	$	25	$	11,537
Non-interest income (loss)	1,038		166		200		(26)		1,378		1,988		326		387		(31)		2,670
Total net revenue (loss)	4,569		1,875		714		(34)		7,124		9,109		3,714		1,390		(6)		14,207
Provision for credit losses	1,095		165		82		—		1,342		2,484		400		151		—		3,035
Non-interest expense	2,253		1,002		427		97		3,779		4,424		1,996		844		186		7,450
Income (loss) from continuing operations before income taxes	1,221		708		205		(131)		2,003		2,201		1,318		395		(192)		3,722
Income tax provision (benefit)	283		165		48		(109)		387		512		307		92		(215)		696
Income (loss) from continuing operations, net of tax	$	938	$	543	$	157	$	(22)	$	1,616	$	1,689	$	1,011	$	303	$	23	$	3,026

	Three Months Ended March 31, 2019
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾		Total
Net interest income	$	3,590	$	1,679	$	489	$	33	$	5,791
Non-interest income (loss)	950		160		187		(5)		1,292
Total net revenue	4,540		1,839		676		28		7,083
Provision for credit losses	1,389		235		69		—		1,693
Non-interest expense	2,171		994		417		89		3,671
Income (loss) from continuing operations before income taxes	980		610		190		(61)		1,719
Income tax provision (benefit)	229		142		44		(106)		309
Income from continuing operations, net of tax	$	751	$	468	$	146	$	45	$	1,410

	Three Months Ended June 30, 2018										Six Months Ended June 30, 2018
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾		Total		Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾		Total
Net interest income	$	3,396	$	1,609	$	517	$	29	$	5,551	$	6,954	$	3,224	$	1,023	$	68	$	11,269
Non-interest income	884		175		209		373		1,641		1,741		349		396		346		2,832
Total net revenue	4,280		1,784		726		402		7,192		8,695		3,573		1,419		414		14,101
Provision (benefit) for credit losses	1,171		118		34		(47)		1,276		2,627		351		20		(48)		2,950
Non-interest expense	1,904		963		409		148		3,424		3,943		1,963		812		279		6,997
Income from continuing operations before income taxes	1,205		703		283		301		2,492		2,125		1,259		587		183		4,154
Income tax provision (benefit)	282		164		66		63		575		495		294		137		(32)		894
Income from continuing operations, net of tax	$	923	$	539	$	217	$	238	$	1,917	$	1,630	$	965	$	450	$	215	$	3,260

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary—Credit Card Business

																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Credit Card
Earnings:
Net interest income	$	3,531		$	3,590		$	3,617		$	3,596		$	3,396		(2)	%	4	%	$	7,121		$	6,954		2	%
Non-interest income	1,038			950			886			893			884			9		17		1,988			1,741			14
Total net revenue	4,569			4,540			4,503			4,489			4,280			1		7		9,109			8,695			5
Provision for credit losses	1,095			1,389			1,326			1,031			1,171			(21)		(6)		2,484			2,627			(5)
Non-interest expense	2,253			2,171			2,496			2,103			1,904			4		18		4,424			3,943			12
Income from continuing operations before income taxes	1,221			980			681			1,355			1,205			25		1		2,201			2,125			4
Income tax provision	283			229			160			315			282			24		—		512			495			3
Income from continuing operations, net of tax	$	938		$	751		$	521		$	1,040		$	923		25		2		$	1,689		$	1,630		4
Selected performance metrics:
Period-end loans held for investment	$	112,141		$	109,836		$	116,361		$	110,685		$	109,777		2		2		$	112,141		$	109,777		2
Average loans held for investment	110,798			111,456			112,349			109,510			107,893			(1)		3		111,125			108,693			2
Average yield on loans held for investment⁽⁸⁾	15.66		%	15.77		%	15.63		%	15.79		%	15.06		%	(11)	bps	60	bps	15.72		%	15.15		%	57	bps
Total net revenue margin⁽⁹⁾	16.50			16.29			16.03			16.40			15.87			21		63		16.39			16.00			39
Net charge-off rate⁽²⁾	4.76			4.90			4.61			4.15			4.67			(14)		9		4.83			4.85			(2)
30+ day performing delinquency rate	3.40			3.71			4.00			3.78			3.32			(31)		8		3.40			3.32			8
30+ day delinquency rate	3.42			3.72			4.01			3.80			3.33			(30)		9		3.42			3.33			9
Nonperforming loan rate⁽³⁾	0.02			0.02			0.02			0.02			0.02			—		—		0.02			0.02			—
Purchase volume⁽¹⁰⁾	$	106,903		$	93,197		$	105,696		$	97,469		$	97,392		15	%	10	%	$	200,100		$	183,937		9	%

																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Domestic Card
Earnings:
Net interest income	$	3,220		$	3,273		$	3,309		$	3,280		$	3,108		(2)	%	4	%	$	6,493		$	6,337		2	%
Non-interest income	971			873			828			819			818			11		19		1,844			1,592			16
Total net revenue	4,191			4,146			4,137			4,099			3,926			1		7		8,337			7,929			5
Provision for credit losses	1,024			1,291			1,229			950			1,094			(21)		(6)		2,315			2,474			(6)
Non-interest expense	2,034			1,949			2,216			1,890			1,683			4		21		3,983			3,515			13
Income from continuing operations before income taxes	1,133			906			692			1,259			1,149			25		(1)		2,039			1,940			5
Income tax provision	264			211			162			293			268			25		(1)		475			452			5
Income from continuing operations, net of tax	$	869		$	695		$	530		$	966		$	881		25		(1)		$	1,564		$	1,488		5
Selected performance metrics:
Period-end loans held for investment	$	102,959		$	101,052		$	107,350		$	101,564		$	100,714		2		2		$	102,959		$	100,714		2
Average loans held for investment	101,930			102,667			103,391			100,566			98,895			(1)		3		102,296			99,668			3
Average yield on loans held for investment⁽⁸⁾	15.60		%	15.69		%	15.58		%	15.73		%	15.05		%	(9)	bps	55	bps	15.65		%	15.07		%	58	bps
Total net revenue margin⁽⁹⁾	16.45			16.15			16.01			16.30			15.88			30		57		16.30			15.91			39
Net charge-off rate⁽²⁾	4.86			5.04			4.64			4.35			4.72			(18)		14		4.95			4.99			(4)
30+ day delinquency rate	3.40			3.72			4.04			3.80			3.32			(32)		8		3.40			3.32			8
Purchase volume⁽¹⁰⁾	$	98,052		$	85,738		$	96,818		$	89,205		$	88,941		14	%	10	%	$	183,790		$	168,135		9	%
Refreshed FICO scores:⁽¹¹⁾
Greater than 660	68		%	66		%	67		%	67		%	68		%	2		—		68		%	68		%	—
660 or below	32			34			33			33			32			(2)		—		32			32			—
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Financial & Statistical Summary—Consumer Banking Business

																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Consumer Banking
Earnings:
Net interest income	$	1,709		$	1,679		$	1,689		$	1,636		$	1,609		2	%	6	%	$	3,388		$	3,224		5	%
Non-interest income	166			160			159			155			175			4		(5)		326			349			(7)
Total net revenue	1,875			1,839			1,848			1,791			1,784			2		5		3,714			3,573			4
Provision for credit losses	165			235			303			184			118			(30)		40		400			351			14
Non-interest expense	1,002			994			1,085			979			963			1		4		1,996			1,963			2
Income from continuing operations before income taxes	708			610			460			628			703			16		1		1,318			1,259			5
Income tax provision	165			142			107			146			164			16		1		307			294			4
Income from continuing operations, net of tax	$	543		$	468		$	353		$	482		$	539		16		1		$	1,011		$	965		5
Selected performance metrics:
Period-end loans held for investment⁽¹⁾	$	60,327		$	59,248		$	59,205		$	59,329		$	58,727		2		3		$	60,327		$	58,727		3
Average loans held for investment⁽¹⁾	59,858			59,065			59,342			59,220			66,480			1		(10)		59,463			70,715			(16)
Average yield on loans held for investment⁽⁸⁾	8.36		%	8.15		%	8.14		%	8.03		%	7.32		%	21	bps	104	bps	8.25		%	7.08		%	117	bps
Auto loan originations	$	7,327		$	6,222		$	5,932		$	6,643		$	6,994		18	%	5	%	$	13,549		$	13,701		(1)	%
Period-end deposits	205,220			205,439			198,607			196,635			194,962			—		5		205,220			194,962			5
Average deposits	204,164			201,072			196,348			194,687			193,278			2		6		202,627			190,547			6
Average deposits interest rate	1.26		%	1.18		%	1.10		%	1.00		%	0.88		%	8	bps	38	bps	1.22		%	0.84		%	38	bps
Net charge-off rate	1.15			1.49			2.01			1.77			1.19			(34)		(4)		1.32			1.19			13
30+ day performing delinquency rate	5.87			5.55			6.67			6.01			5.33			32		54		5.87			5.33			54
30+ day delinquency rate	6.41			6.02			7.36			6.61			5.80			39		61		6.41			5.80			61
Nonperforming loan rate⁽³⁾	0.66			0.59			0.81			0.72			0.58			7		8		0.66			0.58			8
Nonperforming asset rate⁽⁴⁾	0.75			0.68			0.90			0.82			0.73			7		2		0.75			0.73			2
Auto—At origination FICO scores:⁽¹²⁾
Greater than 660	49		%	49		%	50		%	50		%	50		%	—		(1)	%	49		%	50		%	(1)	%
621 - 660	19			19			19			19			19			—		—		19			19			—
620 or below	32			32			31			31			31			—		1		32			31			1
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12: Financial & Statistical Summary—Commercial Banking Business

																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Commercial Banking
Earnings:
Net interest income	$	514		$	489		$	508		$	513		$	517		5	%	(1)	%	$	1,003		$	1,023		(2)	%
Non-interest income	200			187			159			189			209			7		(4)		387			396			(2)
Total net revenue⁽⁶⁾⁽⁷⁾	714			676			667			702			726			6		(2)		1,390			1,419			(2)
Provision for credit losses	82			69			9			54			34			19		141		151			20			**
Non-interest expense	427			417			434			408			409			2		4		844			812			4
Income from continuing operations before income taxes	205			190			224			240			283			8		(28)		395			587			(33)
Income tax provision	48			44			52			56			66			9		(27)		92			137			(33)
Income from continuing operations, net of tax	$	157		$	146		$	172		$	184		$	217		8		(28)		$	303		$	450		(33)
Selected performance metrics:
Period-end loans held for investment	$	71,992		$	71,189		$	70,333		$	68,747		$	67,609		1		6		$	71,992		$	67,609		6
Average loans held for investment	71,997			71,438			69,680			68,036			66,364			1		8		71,719			65,776			9
Average yield on loans held for investment⁽⁶⁾⁽⁸⁾	4.75		%	4.62		%	4.67		%	4.55		%	4.43		%	13	bps	32	bps	4.68		%	4.30		%	38	bps
Period-end deposits	$	30,761		$	31,248		$	29,480		$	30,474		$	31,078		(2)	%	(1)	%	$	30,761		$	31,078		(1)	%
Average deposits	31,364			30,816			30,680			31,061			32,951			2		(5)		31,092			33,501			(7)
Average deposits interest rate	1.28		%	1.11		%	0.95		%	0.79		%	0.65		%	17	bps	63	bps	1.19		%	0.59		%	60	bps
Net charge-off (recovery) rate	0.09			0.08			0.10			0.16			(0.04)			1		13		0.08			0.04			4
Nonperforming loan rate⁽³⁾	0.50			0.53			0.44			0.38			0.34			(3)		16		0.50			0.34			16
Nonperforming asset rate⁽⁴⁾	0.50			0.53			0.45			0.41			0.37			(3)		13		0.50			0.37			13
Risk category:⁽¹³⁾
Noncriticized	$	69,390		$	68,594		$	68,043		$	65,926		$	64,923		1	%	7	%	$	69,390		$	64,923		7	%
Criticized performing	2,211			2,094			1,848			2,204			2,088			6		6		2,211			2,088			6
Criticized nonperforming	360			378			312			259			229			(5)		57		360			229			57
PCI loans	31			123			130			358			369			(75)		(92)		31			369			(92)
Total commercial loans	$	71,992		$	71,189		$	70,333		$	68,747		$	67,609		1		6		$	71,992		$	67,609		6
Risk category as a percentage of period-end loans held for investment:⁽¹³⁾
Noncriticized	96.4		%	96.4		%	96.8		%	95.9		%	96.1		%	—		30	bps	96.4		%	96.1		%	30	bps
Criticized performing	3.1			2.9			2.6			3.2			3.1			20	bps	—		3.1			3.1			—
Criticized nonperforming	0.5			0.5			0.4			0.4			0.3			—		20		0.5			0.3			20
PCI loans	—			0.2			0.2			0.5			0.5			(20)		(50)		—			0.5			(50)
Total commercial loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%					100.0		%	100.0		%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Financial & Statistical Summary—Other and Total

											2019 Q2 vs.				Six Months Ended June 30,
	2019		2019		2018		2018		2018		2019		2018						2019 vs.
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2019		2018		2018
Other
Earnings:
Net interest income (loss)	$	(8)	$	33	$	6	$	41	$	29	**		**		$	25	$	68	(63)	%
Non-interest income (loss)⁽¹⁾	(26)		(5)		(11)		(61)		373		**		**		(31)		346		**
Total net revenue (loss)⁽⁶⁾⁽⁷⁾	(34)		28		(5)		(20)		402		**		**		(6)		414		**
Benefit for credit losses	—		—		—		(1)		(47)		**		**		—		(48)		**
Non-interest expense⁽¹⁴⁾	97		89		117		283		148		9	%	(34)	%	186		279		(33)
Income (loss) from continuing operations before income taxes	(131)		(61)		(122)		(302)		301		115		**		(192)		183		**
Income tax provision (benefit)	(109)		(106)		(340)		(97)		63		3		**		(215)		(32)		**
Income (loss) from continuing operations, net of tax	$	(22)	$	45	$	218	$	(205)	$	238	**		**		$	23	$	215	(89)
Selected performance metrics:
Period-end loans held for investment	—		—		—		—		$	11	**		**		—		$	11	**
Average loans held for investment	—		—		—		—		21		**		**		—		34		**
Period-end deposits	$	18,554	$	18,420	$	21,677	$	20,086	22,185		1		(16)		$	18,554	22,185		(16)
Average deposits	18,106		19,522		20,635		20,972		22,561		(7)		(20)		18,809		22,992		(18)
Total
Earnings:
Net interest income	$	5,746	$	5,791	$	5,820	$	5,786	$	5,551	(1)	%	4	%	$	11,537	$	11,269	2	%
Non-interest income	1,378		1,292		1,193		1,176		1,641		7		(16)		2,670		2,832		(6)
Total net revenue	7,124		7,083		7,013		6,962		7,192		1		(1)		14,207		14,101		1
Provision for credit losses	1,342		1,693		1,638		1,268		1,276		(21)		5		3,035		2,950		3
Non-interest expense	3,779		3,671		4,132		3,773		3,424		3		10		7,450		6,997		6
Income from continuing operations before income taxes	2,003		1,719		1,243		1,921		2,492		17		(20)		3,722		4,154		(10)
Income tax provision (benefit)	387		309		(21)		420		575		25		(33)		696		894		(22)
Income from continuing operations, net of tax	$	1,616	$	1,410	$	1,264	$	1,501	$	1,917	15		(16)		$	3,026	$	3,260	(7)
Selected performance metrics:
Period-end loans held for investment	$	244,460	$	240,273	$	245,899	$	238,761	$	236,124	2		4		$	244,460	$	236,124	4
Average loans held for investment	242,653		241,959		241,371		236,766		240,758		—		1		242,307		245,218		(1)
Period-end deposits	254,535		255,107		249,764		247,195		248,225		—		3		254,535		248,225		3
Average deposits	253,634		251,410		247,663		246,720		248,790		1		2		252,528		247,040		2

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)

⁽¹⁾	In 2018, we sold all of our consumer home loan portfolio and recognized a net gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million.
⁽²⁾	In August 2018, we accelerated charge-off recognition for certain domestic credit card accounts where the cardholder is deceased. This acceleration led to a one-time increase in net charge-offs of approximately $32 million, increasing the net charge-off rate for total credit card and domestic credit card by approximately 12 basis points and 13 basis points, respectively, for the third quarter of 2018.
⁽³⁾	Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category.
⁽⁴⁾	Nonperforming assets consist of nonperforming loans, real estate owned ("REO") and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, REO and other foreclosed assets.
⁽⁵⁾	Represents foreign currency translation adjustments.
⁽⁶⁾	Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.
⁽⁷⁾	In the first quarter of 2019, we made a change in how revenue is measured in our Commercial Banking business by revising the allocation of tax benefits on certain tax-advantaged investments. As such, prior period results have been recast to conform with the current period presentation. The result of this measurement change reduced the previously reported total net revenue in our Commercial Banking business by $30 million in Q1 2018, $32 million in Q2 2018, $26 million in Q3 2018, and $20 million in Q4 2018, with an offsetting increase in the Other category.
⁽⁸⁾	Average yield on loans held for investment is calculated based on annualized interest income for the period divided by average loans held for investment during the period for the respective loan category. Annualized interest income is computed based on the effective yield of the respective loan category and does not include any allocations, such as funds transfer pricing.
⁽⁹⁾	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average loans held for investment during the period for the respective loan category.
⁽¹⁰⁾	Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.
⁽¹¹⁾	Percentages represent period-end loans held for investment in each credit score category. Domestic card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.
⁽¹²⁾	Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.
⁽¹³⁾	Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.
⁽¹⁴⁾	Includes charges incurred as a result of restructuring activities.
^**	Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures⁽¹⁾

	Basel III Standardized Approach
(Dollars in millions, except as noted)	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Regulatory Capital Metrics
Common equity excluding AOCI	$	51,236		$	49,781		$	48,570		$	48,154		$	47,359
Adjustments:
AOCI⁽²⁾	170			(660)			(1,263)			(1,877)			(1,793)
Goodwill, net of related deferred tax liabilities	(14,365)			(14,369)			(14,373)			(14,345)			(14,368)
Intangible assets, net of related deferred tax liabilities	(194)			(223)			(254)			(284)			(328)
Other	(401)			113			391			817			735
Common equity Tier 1 capital	$	36,446		$	34,642		$	33,071		$	32,465		$	31,605
Tier 1 capital	$	40,806		$	39,002		$	37,431		$	36,826		$	35,965
Total capital⁽³⁾	47,919			46,042			44,645			43,947			43,082
Risk-weighted assets	295,280			291,483			294,950			288,694			285,223
Adjusted average assets⁽⁴⁾	356,518			355,781			350,606			346,297			349,222
Capital Ratios
Common equity Tier 1 capital⁽⁵⁾	12.3		%	11.9		%	11.2		%	11.2		%	11.1		%
Tier 1 capital⁽⁶⁾	13.8			13.4			12.7			12.8			12.6
Total capital⁽⁷⁾	16.2			15.8			15.1			15.2			15.1
Tier 1 leverage⁽⁴⁾	11.4			11.0			10.7			10.6			10.3
Tangible common equity ("TCE")⁽⁸⁾	10.2			9.6			9.1			9.0			8.8

Reconciliation of Non-GAAP Measures

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

	2019									2019									Six Months Ended
	Q2									Q1									June 30, 2019
(Dollars in millions, except per share data and as noted)	Reported Results			Adj.⁽⁹⁾			Adjusted Results			Reported Results			Adj.⁽⁹⁾			Adjusted Results			Reported Results			Adj.⁽⁹⁾			Adjusted Results
Selected income statement data:
Net interest income	$	5,746		—			$	5,746		$	5,791		—			$	5,791		$	11,537		—			$	11,537
Non-interest income	1,378			$	1		1,379			1,292			—			1,292			2,670			$	1		2,671
Total net revenue	7,124			1			7,125			7,083			—			7,083			14,207			1			14,208
Provision for credit losses	1,342			—			1,342			1,693			—			1,693			3,035			—			3,035
Non-interest expense	3,779			(81)			3,698			3,671			$	(25)		3,646			7,450			(106)			7,344
Income from continuing operations before income taxes	2,003			82			2,085			1,719			25			1,744			3,722			107			3,829
Income tax provision	387			19			406			309			6			315			696			25			721
Income from continuing operations, net of tax	1,616			63			1,679			1,410			19			1,429			3,026			82			3,108
Income (loss) from discontinued operations, net of tax	9			—			9			2			—			2			11			—			11
Net income	1,625			63			1,688			1,412			19			1,431			3,037			82			3,119
Dividends and undistributed earnings allocated to participating securities⁽¹⁰⁾	(12)			(1)			(13)			(12)			—			(12)			(24)			(1)			(25)
Preferred stock dividends	(80)			—			(80)			(52)			—			(52)			(132)			—			(132)
Net income available to common stockholders	$	1,533		$	62		$	1,595		$	1,348		$	19		$	1,367		$	2,881		$	81		$	2,962
Selected performance metrics:
Diluted EPS⁽¹⁰⁾	$	3.24		$	0.13		$	3.37		$	2.86		$	0.04		$	2.90		$	6.10		$	0.17		$	6.27
Efficiency ratio	53.05		%	(115)		bps	51.90		%	51.83		%	(35)		bps	51.48		%	52.44		%	(75)		bps	51.69		%
Operating efficiency ratio	45.38			(114)			44.24			44.53			(35)			44.18			44.96			(75)			44.21

	2018									2018									Six Months Ended
	Q2									Q1									June 30, 2018
(Dollars in millions, except per share data and as noted)	Reported Results			Adj.⁽⁹⁾			Adjusted Results			Reported Results			Adj.⁽⁹⁾			Adjusted Results			Reported Results			Adj.⁽⁹⁾			Adjusted Results
Selected income statement data:
Net interest income	$	5,551		$	26		$	5,577		$	5,718		—			$	5,718		$	11,269		$	26		$	11,295
Non-interest income	1,641			(361)			1,280			1,191			$	2		1,193			2,832			(359)			2,473
Total net revenue	7,192			(335)			6,857			6,909			2			6,911			14,101			(333)			13,768
Provision for credit losses	1,276			46			1,322			1,674			—			1,674			2,950			46			2,996
Non-interest expense	3,424			(45)			3,379			3,573			(17)			3,556			6,997			(62)			6,935
Income from continuing operations before income taxes	2,492			(336)			2,156			1,662			19			1,681			4,154			(317)			3,837
Income tax provision	575			(92)			483			319			4			323			894			(88)			806
Income from continuing operations, net of tax	1,917			(244)			1,673			1,343			15			1,358			3,260			(229)			3,031
Income (loss) from discontinued operations, net of tax	(11)			—			(11)			3			—			3			(8)			—			(8)
Net income	1,906			(244)			1,662			1,346			15			1,361			3,252			(229)			3,023
Dividends and undistributed earnings allocated to participating securities⁽¹⁰⁾	(12)			2			(10)			(10)			—			(10)			(23)			2			(21)
Preferred stock dividends	(80)			—			(80)			(52)			—			(52)			(132)			—			(132)
Net income available to common stockholders	$	1,814		$	(242)		$	1,572		$	1,284		$	15		$	1,299		$	3,097		$	(227)		$	2,870
Selected performance metrics:
Diluted EPS⁽¹⁰⁾	$	3.71		$	(0.49)		$	3.22		$	2.62		$	0.03		$	2.65		$	6.33		$	(0.47)		$	5.86
Efficiency ratio	47.61		%	167		bps	49.28		%	51.72		%	(27)		bps	51.45		%	49.62		%	75		bps	50.37		%
Operating efficiency ratio	41.70			138			43.08			45.72			(26)			45.46			43.67			61			44.28

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of TCE, tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. We consider these metrics to be key financial performance measures that management uses in assessing capital adequacy and the level of returns generated. While our non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.

	2019		2019		2018		2018		2018
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2
Tangible Common Equity (Period-End)
Stockholders' equity	$	55,767	$	53,481	$	51,668	$	50,638	$	49,926
Goodwill and intangible assets⁽¹¹⁾	(14,886)		(14,904)		(14,941)		(14,945)		(15,013)
Noncumulative perpetual preferred stock	(4,360)		(4,360)		(4,360)		(4,360)		(4,360)
Tangible common equity	$	36,521	$	34,217	$	32,367	$	31,333	$	30,553
Tangible Common Equity (Average)
Stockholders' equity	$	54,570	$	52,720	$	51,114	$	50,768	$	49,827
Goodwill and intangible assets⁽¹¹⁾	(14,900)		(14,932)		(14,953)		(14,982)		(15,043)
Noncumulative perpetual preferred stock	(4,360)		(4,360)		(4,360)		(4,360)		(4,360)
Tangible common equity	$	35,310	$	33,428	$	31,801	$	31,426	$	30,424
Tangible Assets (Period-End)
Total assets	$	373,619	$	373,191	$	372,538	$	362,909	$	363,989
Goodwill and intangible assets⁽¹¹⁾	(14,886)		(14,904)		(14,941)		(14,945)		(15,013)
Tangible assets	$	358,733	$	358,287	$	357,597	$	347,964	$	348,976
Tangible Assets (Average)
Total assets	$	371,095	$	370,394	$	365,243	$	360,937	$	363,929
Goodwill and intangible assets⁽¹¹⁾	(14,900)		(14,932)		(14,953)		(14,982)		(15,043)
Tangible assets	$	356,195	$	355,462	$	350,290	$	345,955	$	348,886

__________
⁽¹⁾Regulatory capital metrics and capital ratios as of June 30, 2019 are preliminary and therefore subject to change.
⁽²⁾Amounts presented are net of tax.
⁽³⁾Total capital equals the sum of Tier 1 capital and Tier 2 capital.
⁽⁴⁾Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.
⁽⁵⁾Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.
⁽⁶⁾Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
⁽⁷⁾Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.
⁽⁸⁾TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.
⁽⁹⁾The adjustments for the following periods consist of:

	2019		2019		Six Months Ended		2018		2018		Six Months Ended
(Dollars in millions)	Q2		Q1		June 30, 2019		Q2		Q1		June 30, 2018
Walmart launch and related integration expenses	$	54	$	25	$	79	—		—		—
Net gains on the sales of exited businesses	—		—		—		$	(400)	—		$	(400)
U.K. Payment Protection Insurance customer refund reserve build ("U.K. PPI Reserve")	—		—		—		49		—		49
Restructuring charges	28		—		28		15		$	19	34
Total	82		25		107		(336)		19		(317)
Income tax provision (benefit)	19		6		25		(92)		4		(88)
Net income	$	63	$	19	$	82	$	(244)	$	15	$	(229)

⁽¹⁰⁾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.
⁽¹¹⁾Includes impact of related deferred taxes.