• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
  • Contact

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Sponsored Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

Capital One Reports Third Quarter 2019 Net Income of $1.3 billion, or $2.69 per share

Excluding adjusting items, Third Quarter 2019 Net Income of $3.32 per share(1)

capital_one_logo

News provided by

Capital One Financial Corporation

Oct 24, 2019, 16:05 ET

Share this article

Share this article


MCLEAN, Va., Oct. 24, 2019 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2019 of $1.3 billion, or $2.69 per diluted common share, compared with net income of $1.6 billion, or $3.24 per diluted common share in the second quarter of 2019, and with net income of $1.5 billion, or $2.99 per diluted common share in the third quarter of 2018. Excluding adjusting items, net income for the third quarter of 2019 was $3.32 per diluted common share(1).

"Our marketing and technology investments are building our momentum and creating great value," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "Our domestic card business delivered strong year-over-year growth in purchase volume and branded card loans, and our consumer banking business posted strong year-over-year growth in auto originations and retail deposits."

Adjusting items in the third quarter of 2019, 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):



Pre-Tax

Diluted EPS

(Dollars in millions, except per share data)

Impact

Impact

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

$

212


$

0.45


Walmart launch and related integration expenses

84


0.14


Cybersecurity Incident expenses, net of insurance

22


0.04


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

Third Quarter 2019 Income Statement Summary:

  • Total net revenue decreased 2 percent to $7.0 billion.
  • Total non-interest expense increased 2 percent to $3.9 billion:
    • 8 percent decrease in marketing.

(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.

    • 4 percent increase in operating expenses.
  • Pre-provision earnings decreased 8 percent to $3.1 billion(2).
  • Provision for credit losses increased 3 percent to $1.4 billion:
    • Net charge-offs of $1.5 billion.
    • $79 million reserve release.
  • Net interest margin of 6.73 percent, decreased 7 basis points.
  • Efficiency ratio of 55.64 percent.
    • Efficiency ratio excluding adjusting items of 52.04 percent(1).
  • Operating efficiency ratio of 48.44 percent.
    • Operating efficiency ratio excluding adjusting items of 44.98 percent(1).

Third Quarter 2019 Balance Sheet Summary:

  • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.5 percent at September 30, 2019.
  • Period-end loans held for investment in the quarter increased $4.9 billion, or 2 percent, to $249.4 billion.
    • Credit Card period-end loans increased $1.5 billion, or 1 percent, to $113.7 billion.
      • Domestic Card period-end loans increased $1.7 billion, or 2 percent, to $104.7 billion.
    • Consumer Banking period-end loans increased $1.7 billion, or 3 percent, to $62.0 billion.
      • Auto period-end loans increased $1.7 billion, or 3 percent, to $59.3 billion.
    • Commercial Banking period-end loans increased $1.7 billion, or 2 percent, to $73.7 billion.
  • Average loans held for investment in the quarter increased $3.5 billion, or 1 percent, to $246.1 billion.
    • Credit Card average loans increased $1.6 billion, or 1 percent, to $112.4 billion.
      • Domestic Card average loans increased $1.5 billion, or 1 percent, to $103.4 billion.
    • Consumer Banking average loans increased $1.4 billion, or 2 percent, to $61.3 billion.
      • Auto average loans increased $1.4 billion, or 3 percent, to $58.5 billion.
    • Commercial Banking average loans increased $510 million, or 1 percent, to $72.5 billion.
  • Period-end total deposits increased $2.6 billion, or 1 percent, to $257.1 billion, while average deposits increased $1.4 billion, or 1 percent, to $255.1 billion.
  • Interest-bearing deposits rate paid increased 4 basis points to 1.55 percent.

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

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

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on October 24, 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 November 7, 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 $257.1 billion in deposits and $378.8 billion in total assets as of September 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)

Third Quarter 2019

Table of Contents


Capital One Financial Corporation Consolidated Results

Page


Table 1:

Financial Summary—Consolidated

1


Table 2:

Selected Metrics—Consolidated

3


Table 3:

Consolidated Statements of Income

4


Table 4:

Consolidated Balance Sheets

6


Table 5:

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

8


Table 6:

Average Balances, Net Interest Income and Net Interest Margin

9


Table 7:

Loan Information and Performance Statistics

10


Table 8:

Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity

12

Business Segment Results



Table 9:

Financial Summary—Business Segment Results

13


Table 10:

Financial & Statistical Summary—Credit Card Business

14


Table 11:

Financial & Statistical Summary—Consumer Banking Business

16


Table 12:

Financial & Statistical Summary—Commercial Banking Business

17


Table 13:

Financial & Statistical Summary—Other and Total

18

Other



Table 14:

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

19


Table 15:

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

20

__________

(1)

The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings

presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended September 30, 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 Q3 vs.


Nine Months Ended September 30,

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


2019


2019


2019


2018


2018


2019


2018






2019 vs.


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Income Statement





















Net interest income


$

5,737



$

5,746



$

5,791



$

5,820



$

5,786



—



(1)

%


$

17,274



$

17,055



1

%

Non-interest income


1,222



1,378



1,292



1,193



1,176



(11)

%


4



3,892



4,008



(3)


Total net revenue(1)


6,959



7,124



7,083



7,013



6,962



(2)



—



21,166



21,063



—


Provision for credit losses


1,383



1,342



1,693



1,638



1,268



3



9



4,418



4,218



5


Non-interest expense:





















Marketing


501



546



517



831



504



(8)



(1)



1,564



1,343



16


Operating expense


3,371



3,233



3,154



3,301



3,269



4



3



9,758



9,427



4


Total non-interest expense


3,872



3,779



3,671



4,132



3,773



2



3



11,322



10,770



5


Income from continuing operations before income taxes


1,704



2,003



1,719



1,243



1,921



(15)



(11)



5,426



6,075



(11)


Income tax provision (benefit)


375



387



309



(21)



420



(3)



(11)



1,071



1,314



(18)


Income from continuing operations, net of tax


1,329



1,616



1,410



1,264



1,501



(18)



(11)



4,355



4,761



(9)


Income (loss) from discontinued operations, net of tax


4



9



2



(3)



1



(56)



**



15



(7)



**


Net income


1,333



1,625



1,412



1,261



1,502



(18)



(11)



4,370



4,754



(8)


Dividends and undistributed earnings allocated to participating securities(2)


(10)



(12)



(12)



(9)



(9)



(17)



11



(34)



(32)



6


Preferred stock dividends


(53)



(80)



(52)



(80)



(53)



(34)



—



(185)



(185)



—


Net income available to common stockholders


$

1,270



$

1,533



$

1,348



$

1,172



$

1,440



(17)



(12)



$

4,151



$

4,537



(9)


Common Share Statistics





















Basic earnings per common share:(2)





















Net income from continuing operations


$

2.70



$

3.24



$

2.87



$

2.50



$

3.01



(17)

%


(10)

%


$

8.80



$

9.40



(6)

%

Income (loss) from discontinued operations


0.01



0.02



—



(0.01)



—



(50)



**



0.03



(0.01)



**


Net income per basic common share


$

2.71



$

3.26



$

2.87



$

2.49



$

3.01



(17)



(10)



$

8.83



$

9.39



(6)


Diluted earnings per common share:(2)





















Net income from continuing operations


$

2.68



$

3.22



$

2.86



$

2.49



$

2.99



(17)



(10)



$

8.76



$

9.33



(6)


Income (loss) from discontinued operations


0.01



0.02



—



(0.01)



—



(50)



**



0.03



(0.01)



**


Net income per diluted common share


$

2.69



$

3.24



$

2.86



$

2.48



$

2.99



(17)



(10)



$

8.79



$

9.32



(6)


Weighted-average common shares outstanding (in millions):





















Basic


469.5



470.8



469.4



470.0



477.8



—



(2)



469.9



483.2



(3)


Diluted


471.8



473.0



471.6



472.7



480.9



—



(2)



472.1



486.7



(3)


Common shares outstanding (period-end, in millions)


465.7



470.3



469.6



467.7



473.7



(1)



(2)



465.7



473.7



(2)


Dividends declared and paid per common share


$

0.40



$

0.40



$

0.40



$

0.40



$

0.40



—



—



$

1.20



$

1.20



—


Tangible book value per common share (period-end)(3)


80.46



77.65



72.86



69.20



66.15



4



22



80.46



66.15



22












































































2019 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions)


2019


2019


2019


2018


2018


2019


2018






2019 vs.


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Balance Sheet (Period-End)





















Loans held for investment


$

249,355



$

244,460



$

240,273



$

245,899



$

238,761



2

%


4

%


$

249,355



$

238,761



4

%

Interest-earning assets


344,643



339,160



340,071



341,293



331,293



2



4



344,643



331,293



4


Total assets


378,810



373,619



373,191



372,538



362,909



1



4



378,810



362,909



4


Interest-bearing deposits


234,084



231,161



230,199



226,281



222,356



1



5



234,084



222,356



5


Total deposits


257,148



254,535



255,107



249,764



247,195



1



4



257,148



247,195



4


Borrowings


50,149



49,233



50,358



58,905



52,205



2



(4)



50,149



52,205



(4)


Common equity


52,412



51,406



49,120



47,307



46,277



2



13



52,412



46,277



13


Total stockholders' equity


58,235



55,767



53,481



51,668



50,638



4



15



58,235



50,638



15


Balance Sheet (Average Balances)





















Loans held for investment


$

246,147



$

242,653



$

241,959



$

241,371



$

236,766



1

%


4

%


$

243,602



$

242,369



1

%

Interest-earning assets


340,949



338,026



337,793



334,714



330,272



1



3



338,936



331,318



2


Total assets


374,905



371,095



370,394



365,243



360,937



1



4



372,148



362,293



3


Interest-bearing deposits


232,063



230,452



227,572



222,827



221,431



1



5



230,045



221,400



4


Total deposits


255,082



253,634



251,410



247,663



246,720



1



3



253,389



246,932



3


Borrowings


49,413



49,982



53,055



53,994



51,684



(1)



(4)



50,804



52,858



(4)


Common equity


52,566



50,209



48,359



46,753



46,407



5



13



50,393



45,521



11


Total stockholders' equity


57,245



54,570



52,720



51,114



50,768



5



13



54,861



49,882



10


               

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated














2019 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions, except as noted)


2019


2019


2019


2018


2018


2019


2018






2019 vs.


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Performance Metrics





















Net interest income growth (period over period)


—



(1)

%


—



1

%


4

%


**



**



1

%


2

%


**


Non-interest income growth (period over period)


(11)

%


7



8

%


1



(28)



**



**



(3)



12



**


Total net revenue growth (period over period)


(2)



1



1



1



(3)



**



**



—



4



**


Total net revenue margin(4)


8.16



8.43



8.39



8.38



8.43



(27)

bps


(27)

bps


8.33



8.48



(15)

bps

Net interest margin(5)


6.73



6.80



6.86



6.96



7.01



(7)



(28)



6.80



6.86



(6)


Return on average assets


1.42



1.74



1.52



1.38



1.66



(32)



(24)



1.56



1.75



(19)


Return on average tangible assets(6)


1.48



1.82



1.59



1.44



1.74



(34)



(26)



1.63



1.83



(20)


Return on average common equity(7)


9.63



12.14



11.13



10.05



12.40



(251)



(277)



10.94



13.31



(237)


Return on average tangible common equity(8)


13.45



17.26



16.11



14.78



18.32



(381)



(487)



15.54



19.88



(434)


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


6.29



6.23



6.07



6.85



6.37



6



(8)



6.20



5.92



28


Efficiency ratio(9)


55.64



53.05



51.83



58.92



54.19



259



145



53.49



51.13



236


Operating efficiency ratio(10)


48.44



45.38



44.53



47.07



46.95



306



149



46.10



44.76



134


Effective income tax rate for continuing operations


22.0



19.3



18.0



(1.7)



21.9



270



10



19.7



21.6



(190)


Employees (period-end, in thousands)


52.1



50.7



48.8



47.6



47.6



3

%


9

%


52.1



47.6



9

%

Credit Quality Metrics





















Allowance for loan and lease losses


$

7,037



$

7,133



$

7,313



$

7,220



$

7,219



(1)

%


(3)

%


$

7,037



$

7,219



(3)

%

Allowance as a percentage of loans held for investment


2.82

%


2.92

%


3.04

%


2.94

%


3.02

%


(10)

bps


(20)

bps


2.82

%


3.02

%


(20)

bps

Net charge-offs


$

1,462



$

1,508



$

1,599



$

1,610



$

1,425



(3)

%


3

%


$

4,569



$

4,502



1

%

Net charge-off rate(11)


2.38

%


2.48

%


2.64

%


2.67

%


2.41

%


(10)

bps


(3)

bps


2.50

%


2.48

%


2

bps

30+ day performing delinquency rate


3.28



3.15



3.23



3.62



3.28



13



—



3.28



3.28



—


30+ day delinquency rate


3.51



3.35



3.40



3.84



3.48



16



3



3.51



3.48



3


Capital Ratios(12)





















Common equity Tier 1 capital


12.5

%


12.3

%


11.9

%


11.2

%


11.2

%


20

bps


130

bps


12.5

%


11.2

%


130

bps

Tier 1 capital


14.4



13.8



13.4



12.7



12.8



60



160



14.4



12.8



160


Total capital


16.8



16.2



15.8



15.1



15.2



60



160



16.8



15.2



160


Tier 1 leverage


11.9



11.4



11.0



10.7



10.6



50



130



11.9



10.6



130


Tangible common equity ("TCE")(13)


10.3



10.2



9.6



9.1



9.0



10



130



10.3



9.0



130


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income














2019 Q3 vs.


Nine Months Ended September 30,



2019


2019


2019


2018


2018


2019


2018






2019 vs.

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


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Interest income:





















Loans, including loans held for sale


$

6,429



$

6,383



$

6,368



$

6,358



$

6,247



1

%


3

%


$

19,180



$

18,370



4

%

Investment securities


583



629



655



627



593



(7)



(2)



1,867



1,584



18


Other


63



64



69



63



55



(2)



15



196



174



13


Total interest income


7,075



7,076



7,092



7,048



6,895



—



3



21,243



20,128



6


Interest expense:





















Deposits


901



870



817



756



681



4



32



2,588



1,842



40


Securitized debt obligations


123



139



143



138



127



(12)



(3)



405



358



13


Senior and subordinated notes


299



310



314



297



288



(4)



4



923



828



11


Other borrowings


15



11



27



37



13



36



15



53



45



18


Total interest expense


1,338



1,330



1,301



1,228



1,109



1



21



3,969



3,073



29


Net interest income


5,737



5,746



5,791



5,820



5,786



—



(1)



17,274



17,055



1


Provision for credit losses


1,383



1,342



1,693



1,638



1,268



3



9



4,418



4,218



5


Net interest income after provision for credit losses


4,354



4,404



4,098



4,182



4,518



(1)



(4)



12,856



12,837



—


Non-interest income:





















Interchange fees, net


790



820



758



743



714



(4)



11



2,368



2,080



14


Service charges and other customer-related fees


283



352



353



352



410



(20)



(31)



988



1,233



(20)


Net securities gains (losses)


5



15



24



(20)



(196)



(67)



**



44



(189)



**


Other


144



191



157



118



248



(25)



(42)



492



884



(44)


Total non-interest income


1,222



1,378



1,292



1,193



1,176



(11)



4



3,892



4,008



(3)


Non-interest expense:





















Salaries and associate benefits


1,605



1,558



1,573



1,345



1,432



3



12



4,736



4,382



8


Occupancy and equipment


519



521



493



610



515



—



1



1,533



1,508



2


Marketing


501



546



517



831



504



(8)



(1)



1,564



1,343



16


Professional services


314



314



291



426



275



—



14



919



719



28


Communications and data processing


312



329



303



326



311



(5)



—



944



934



1


Amortization of intangibles


25



29



30



43



44



(14)



(43)



84



131



(36)


Other(14)


596



482



464



551



692



24



(14)



1,542



1,753



(12)


Total non-interest expense


3,872



3,779



3,671



4,132



3,773



2



3



11,322



10,770



5


Income from continuing operations before income taxes


1,704



2,003



1,719



1,243



1,921



(15)



(11)



5,426



6,075



(11)


Income tax provision (benefit)


375



387



309



(21)



420



(3)



(11)



1,071



1,314



(18)


Income from continuing operations, net of tax


1,329



1,616



1,410



1,264



1,501



(18)



(11)



4,355



4,761



(9)


Income (loss) from discontinued operations, net of tax


4



9



2



(3)



1



(56)



**



15



(7)



**


Net income


1,333



1,625



1,412



1,261



1,502



(18)



(11)



4,370



4,754



(8)


Dividends and undistributed earnings allocated to participating securities(2)


(10)



(12)



(12)



(9)



(9)



(17)



11



(34)



(32)



6


Preferred stock dividends


(53)



(80)



(52)



(80)



(53)



(34)



—



(185)



(185)



—


Net income available to common stockholders


$

1,270



$

1,533



$

1,348



$

1,172



$

1,440



(17)



(12)



$

4,151



$

4,537



(9)



































2019 Q3 vs.


Nine Months Ended September 30,



2019


2019


2019


2018


2018


2019


2018






2019 vs.

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


Q3


Q2


Q1


Q4


Q3


Q2


Q3


2019


2018


2018

Basic earnings per common share:(2)





















Net income from continuing operations


$

2.70



$

3.24



$

2.87



$

2.50



$

3.01



(17)

%


(10)

%


$

8.80



$

9.40



(6)

%

Income (loss) from discontinued operations


0.01



0.02



—



(0.01)



—



(50)



**



0.03



(0.01)



**


Net income per basic common share


$

2.71



$

3.26



$

2.87



$

2.49



$

3.01



(17)



(10)



$

8.83



$

9.39



(6)


Diluted earnings per common share:(2)





















Net income from continuing operations


$

2.68



$

3.22



$

2.86



$

2.49



$

2.99



(17)



(10)



$

8.76



$

9.33



(6)


Income (loss) from discontinued operations


0.01



0.02



—



(0.01)



—



(50)



**



0.03



(0.01)



**


Net income per diluted common share


$

2.69



$

3.24



$

2.86



$

2.48



$

2.99



(17)



(10)



$

8.79



$

9.32



(6)


Weighted-average common shares outstanding (in millions):





















Basic common shares


469.5



470.8



469.4



470.0



477.8



—



(2)



469.9



483.2



(3)


Diluted common shares


471.8



473.0



471.6



472.7



480.9



—



(2)



472.1



486.7



(3)


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets














2019 Q3 vs.



2019


2019


2019


2018


2018


2019


2018

(Dollars in millions)


Q3


Q2


Q1


Q4


Q3


Q2


Q3

Assets:















Cash and cash equivalents:















Cash and due from banks


$

4,452



$

5,184



$

4,572



$

4,768



$

4,547



(14)

%


(2)

%

Interest-bearing deposits and other short-term investments


12,668



9,927



12,897



8,418



6,335



28



100


Total cash and cash equivalents


17,120



15,111



17,469



13,186



10,882



13



57


Restricted cash for securitization investors


417



710



1,969



303



746



(41)



(44)


Investment securities:















Securities available for sale


46,168



45,658



45,888



46,150



47,384



1



(3)


Securities held to maturity


33,894



35,475



36,503



36,771



34,631



(4)



(2)


Total investment securities


80,062



81,133



82,391



82,921



82,015



(1)



(2)


Loans held for investment:















Unsecuritized loans held for investment


215,892



211,556



208,591



211,702



204,796



2



5


Loans held in consolidated trusts


33,463



32,904



31,682



34,197



33,965



2



(1)


Total loans held for investment


249,355



244,460



240,273



245,899



238,761



2



4


Allowance for loan and lease losses


(7,037)



(7,133)



(7,313)



(7,220)



(7,219)



(1)



(3)


Net loans held for investment


242,318



237,327



232,960



238,679



231,542



2



5


Loans held for sale, at lower of cost or fair value


1,245



1,829



905



1,192



1,402



(32)



(11)


Premises and equipment, net


4,311



4,243



4,205



4,191



4,149



2



4


Interest receivable


1,627



1,544



1,615



1,614



1,518



5



7


Goodwill


14,624



14,545



14,546



14,544



14,513



1



1


Other assets


17,086



17,177



17,131



15,908



16,142



(1)



6


Total assets


$

378,810



$

373,619



$

373,191



$

372,538



$

362,909



1



4





























2019 Q3 vs.



2019


2019


2019


2018


2018


2019


2018

(Dollars in millions)


Q3


Q2


Q1


Q4


Q3


Q2


Q3

Liabilities:















Interest payable


$

370



$

437



$

382



$

458



$

391



(15)

%


(5)

%

Deposits:















Non-interest-bearing deposits


23,064



23,374



24,908



23,483



24,839



(1)



(7)


Interest-bearing deposits


234,084



231,161



230,199



226,281



222,356



1



5


Total deposits


257,148



254,535



255,107



249,764



247,195



1



4


Securitized debt obligations


18,910



16,959



19,273



18,307



18,649



12



1


Other debt:















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


464



359



335



352



384



29



21


Senior and subordinated notes


30,682



31,822



30,645



30,826



31,291



(4)



(2)


Other borrowings


93



93



105



9,420



1,881



—



(95)


Total other debt


31,239



32,274



31,085



40,598



33,556



(3)



(7)


Other liabilities


12,908



13,647



13,863



11,743



12,480



(5)



3


Total liabilities


320,575



317,852



319,710



320,870



312,271



1



3

















Stockholders' equity:















Preferred stock


0



0



0



0



0



—



—


Common stock


7



7



7



7



7



—



—


Additional paid-in capital, net


33,826



32,262



32,160



32,040



31,978



5



6


Retained earnings


39,476



38,386



37,030



35,875



34,883



3



13


Accumulated other comprehensive income (loss)


453



170



(660)



(1,263)



(1,877)



**



**


Treasury stock, at cost


(15,527)



(15,058)



(15,056)



(14,991)



(14,353)



3



8


Total stockholders' equity


58,235



55,767



53,481



51,668



50,638



4



15


Total liabilities and stockholders' equity


$

378,810



$

373,619



$

373,191



$

372,538



$

362,909



1



4


CAPITAL ONE FINANCIAL CORPORATION (COF)

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



(1)

Total net revenue was reduced by $330 million in Q3 2019, $318 million in Q2 2019, $376 million in Q1 2019, $391 million in Q4 2018 and $305 million in Q3 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 Q3 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.

(14)

Includes $22 million of net Cybersecurity Incident expenses in Q3 2019, consisting of $49 million of expenses and $27 million of probable insurance recoveries.

**

Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




2019 Q3


2019 Q2


2018 Q3



Average
Balance


Interest
Income/
Expense


Yield/Rate


Average
Balance


Interest
Income/
Expense


Yield/Rate


Average
Balance


Interest
Income/
Expense


Yield/Rate

(Dollars in millions, except as noted)










Interest-earning assets:



















Loans, including loans held for sale


$

247,419



$

6,429



10.39

%


$

243,831



$

6,383



10.47

%


$

238,150



$

6,247



10.49

%

Investment securities


80,762



583



2.88



82,383



629



3.05



83,894



593



2.83


Cash equivalents and other


12,768



63



2.00



11,812



64



2.16



8,228



55



2.66


Total interest-earning assets


$

340,949



$

7,075



8.30



$

338,026



$

7,076



8.37



$

330,272



$

6,895



8.35


Interest-bearing liabilities:



















Interest-bearing deposits


$

232,063



$

901



1.55



$

230,452



$

870



1.51



$

221,431



$

681



1.23


Securitized debt obligations


16,750



123



2.94



18,262



139



3.04



18,917



127



2.68


Senior and subordinated notes


31,220



299



3.84



30,630



310



4.05



31,660



288



3.63


Other borrowings and liabilities


2,698



15



2.14



2,322



11



1.91



3,084



13



1.67


Total interest-bearing liabilities


$

282,731



$

1,338



1.89



$

281,666



$

1,330



1.89



$

275,092



$

1,109



1.62


Net interest income/spread




$

5,737



6.41





$

5,746



6.48





$

5,786



6.73


Impact of non-interest-bearing funding






0.32







0.32







0.28


Net interest margin






6.73

%






6.80

%






7.01

%




Nine Months Ended September 30,



2019


2018



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


$

244,743



$

19,180



10.45

%


$

243,653



$

18,370



10.05

%

Investment securities


82,264



1,867



3.03



77,819



1,584



2.71


Cash equivalents and other


11,929



196



2.19



9,846



174



2.36


Total interest-earning assets


$

338,936



$

21,243



8.36



$

331,318



$

20,128



8.10


Interest-bearing liabilities:













Interest-bearing deposits


$

230,045



$

2,588



1.50



$

221,400



$

1,842



1.11


Securitized debt obligations


17,912



405



3.02



19,251



358



2.46


Senior and subordinated notes


30,897



923



3.98



31,452



828



3.51


Other borrowings and liabilities


3,228



53



2.19



4,674



45



1.28


Total interest-bearing liabilities


$

282,082



$

3,969



1.88



$

276,777



$

3,073



1.49


Net interest income/spread




$

17,274



6.48





$

17,055



6.61


Impact of non-interest-bearing funding






0.32







0.25


Net interest margin






6.80

%






6.86

%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics














2019 Q3 vs.


Nine Months Ended September 30,

(Dollars in millions, except as noted)


2019
Q3


2019
Q2


2019
Q1


2018
Q4


2018
Q3


2019
Q2


2018
Q3


2019


2018


2019 vs.
2018

Loans Held for Investment (Period-End)





















Credit card:





















   Domestic credit card


$

104,664



$

102,959



$

101,052



$

107,350



$

101,564



2

%


3

%


$

104,664



$

101,564



3

%

   International card businesses


9,017



9,182



8,784



9,011



9,121



(2)



(1)



9,017



9,121



(1)


Total credit card


113,681



112,141



109,836



116,361



110,685



1



3



113,681



110,685



3


Consumer banking:





















   Auto


59,278



57,556



56,444



56,341



56,422



3



5



59,278



56,422



5


   Retail banking


2,737



2,771



2,804



2,864



2,907



(1)



(6)



2,737



2,907



(6)


Total consumer banking


62,015



60,327



59,248



59,205



59,329



3



5



62,015



59,329



5


Commercial banking:





















   Commercial and multifamily real estate


30,009



29,861



28,984



28,899



29,064



—



3



30,009



29,064



3


   Commercial and industrial


43,650



42,125



42,197



41,091



39,325



4



11



43,650



39,325



11


     Total commercial lending


73,659



71,986



71,181



69,990



68,389



2



8



73,659



68,389



8


   Small-ticket commercial real estate


—



6



8



343



358



**



**



—



358



**


Total commercial banking


73,659



71,992



71,189



70,333



68,747



2



7



73,659



68,747



7


Total loans held for investment


$

249,355



$

244,460



$

240,273



$

245,899



$

238,761



2



4



$

249,355



$

238,761



4


Loans Held for Investment (Average)





















Credit card:





















   Domestic credit card


$

103,426



$

101,930



$

102,667



$

103,391



$

100,566



1

%


3

%


$

102,677



$

99,970



3

%

   International card businesses


8,945



8,868



8,789



8,958



8,944



1



—



8,868



8,998



(1)


Total credit card


112,371



110,798



111,456



112,349



109,510



1



3



111,545



108,968



2


Consumer banking:





















   Auto


58,517



57,070



56,234



56,469



56,297



3



4



57,282



55,320



4


   Home loan(1)


—



—



—



—



—



**



**



—



8,377



**


   Retail banking


2,752



2,788



2,831



2,873



2,923



(1)



(6)



2,790



3,144



(11)


Total consumer banking


61,269



59,858



59,065



59,342



59,220



2



3



60,072



66,841



(10)


Commercial banking:





















   Commercial and multifamily real estate


29,698



29,514



29,034



28,855



28,354



1



5



29,418



27,406



7


   Commercial and industrial


42,807



42,476



42,132



40,476



39,318



1



9



42,474



38,754



10


     Total commercial lending


72,505



71,990



71,166



69,331



67,672



1



7



71,892



66,160



9


   Small-ticket commercial real estate


2



7



272



349



364



(71)



(99)



93



378



(75)


Total commercial banking


72,507



71,997



71,438



69,680



68,036



1



7



71,985



66,538



8


Other loans


—



—



—



—



—



**



**



—



22



**


Total average loans held for investment


$

246,147



$

242,653



$

241,959



$

241,371



$

236,766



1



4



$

243,602



$

242,369



1





















2019 Q3 vs.


Nine Months Ended September 30,



 

2019
Q3


 

2019
Q2


 

2019
Q1


 

2018
Q4


 

2018
Q3


2019
Q2


2018
Q3


 

2019


 

2018


2019 vs.
2018

Net Charge-Off (Recovery) Rates




























Credit card:




























   Domestic credit card(2)



4.12

%



4.86

%



5.04

%



4.64

%



4.35

%


(74)

bps


(23)

bps



4.67

%



4.78

%


(11)

bps

   International card businesses



3.78




3.63




3.20




4.22




1.92



15



186




3.54




2.85



69


Total credit card(2)



4.09




4.76




4.90




4.61




4.15



(67)



(6)




4.58




4.62



(4)


Consumer banking:




























   Auto



1.60




1.09




1.44




1.98




1.73



51



(13)




1.38




1.53



(15)


   Retail banking



2.55




2.42




2.56




2.56




2.62



13



(7)




2.51




2.18



33


Total consumer banking



1.64




1.15




1.49




2.01




1.77



49



(13)




1.43




1.36



7


Commercial banking:




























   Commercial and multifamily real estate



0.02




—




—




(0.01)




0.04



2



(2)




0.01




0.01



—


   Commercial and industrial



0.55




0.15




0.13




0.17




0.25



40



30




0.28




0.13



15


     Total commercial lending



0.33




0.09




0.08




0.10




0.16



24



17




0.17




0.08



9


   Small-ticket commercial real estate



**




**




0.23




0.13




0.56



**



**




**




(0.02)



**


Total commercial banking



0.33




0.09




0.08




0.10




0.16



24



17




0.17




0.08



9


Total net charge-offs



2.38




2.48




2.64




2.67




2.41



(10)



(3)




2.50




2.48



2


30+ Day Performing Delinquency Rates




























Credit card:




























   Domestic credit card



3.71

%



3.40

%



3.72

%



4.04

%



3.80

%


31

bps


(9)

bps



3.71

%



3.80

%


(9)

bps

   International card businesses



3.52




3.40




3.61




3.52




3.55



12



(3)




3.52




3.55



(3)


Total credit card



3.69




3.40




3.71




4.00




3.78



29



(9)




3.69




3.78



(9)


Consumer banking:




























   Auto



6.47




6.10




5.78




6.95




6.27



37



20




6.47




6.27



20


   Retail banking



1.01




0.93




0.84




1.01




0.80



8



21




1.01




0.80



21


Total consumer banking



6.23




5.87




5.55




6.67




6.01



36



22




6.23




6.01



22


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




























Credit card:




























   International card businesses



0.25

%



0.25

%



0.26

%



0.25

%



0.22

%


—



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



0.73




0.64




0.57




0.80




0.70



9

bps


3




0.73




0.70



3


   Retail banking



0.91




1.02




1.10




1.04




1.13



(11)



(22)




0.91




1.13



(22)


Total consumer banking



0.74




0.66




0.59




0.81




0.72



8



2




0.74




0.72



2


Commercial banking:




























   Commercial and multifamily real estate



0.12




0.14




0.24




0.29




0.13



(2)



(1)




0.12




0.13



(1)


   Commercial and industrial



0.95




0.74




0.71




0.54




0.55



21



40




0.95




0.55



40


     Total commercial lending



0.61




0.49




0.52




0.44




0.37



12



24




0.61




0.37



24


   Small-ticket commercial real estate



**




**




**




1.80




1.65



**



**




**




1.65



**


Total commercial banking



0.61




0.50




0.53




0.44




0.38



11



23




0.61




0.38



23


Total nonperforming loans



0.37




0.32




0.31




0.33




0.30



5



7




0.37




0.30



7


Total nonperforming assets



0.40




0.34




0.33




0.35




0.33



6



7




0.40




0.33



7


CAPITAL ONE FINANCIAL CORPORATION (COF)

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




Three Months Ended September 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 June 30, 2019


$

4,925



$

417



$

5,342



$

997



$

58



$

1,055



$

736



$

7,133


Charge-offs


(1,403)



(128)



(1,531)



(468)



(21)



(489)



(66)



(2,086)


Recoveries


338



42



380



234



4



238



6



624


Net charge-offs


(1,065)



(86)



(1,151)



(234)



(17)



(251)



(60)



(1,462)


Provision for loan and lease losses


1,010



77



1,087



189



14



203



84



1,374


Allowance build (release) for loan and lease losses


(55)



(9)



(64)



(45)



(3)



(48)



24



(88)


Other changes(5)


—



(8)



(8)



—



—



—



—



(8)


Balance as of September 30, 2019


4,870



400



5,270



952



55



1,007



760



7,037


Reserve for unfunded lending commitments:

















Balance as of June 30, 2019


—



—



—



—



4



4



140



144


Provision for losses on unfunded lending commitments


—



—



—



—



—



—



9



9


Balance as of September 30, 2019


—



—



—



—



4



4



149



153


Combined allowance and reserve as of September 30, 2019


$

4,870



$

400



$

5,270



$

952



$

59



$

1,011



$

909



$

7,190






Nine Months Ended September 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


(4,635)



(389)



(5,024)



(1,318)



(65)



(1,383)



(109)



(6,516)


Recoveries


1,036



153



1,189



726



13



739



19



1,947


Net charge-offs


(3,599)



(236)



(3,835)



(592)



(52)



(644)



(90)



(4,569)


Provision for loan and lease losses


3,325



246



3,571



554



49



603



213



4,387


Allowance build (release) for loan and lease losses


(274)



10



(264)



(38)



(3)



(41)



123



(182)


Other changes(5)


—



(1)



(1)



—



—



—



—



(1)


Balance as of September 30, 2019


4,870



400



5,270



952



55



1,007



760



7,037


Reserve for unfunded lending commitments:

















Balance as of December 31, 2018


—



—



—



—



4



4



118



122


Provision for losses on unfunded lending commitments


—



—



—



—



—



—



31



31


Balance as of September 30, 2019


—



—



—



—



4



4



149



153


Combined allowance and reserve as of September 30, 2019


$

4,870



$

400



$

5,270



$

952



$

59



$

1,011



$

909



$

7,190


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results




Three Months Ended September 30, 2019


Nine Months Ended September 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


$

3,546



$

1,682



$

486



$

23



$

5,737



$

10,667



$

5,070



$

1,489



$

48



$

17,274


Non-interest income (loss)


870



165



221



(34)



1,222



2,858



491



608



(65)



3,892


Total net revenue (loss)


4,416



1,847



707



(11)



6,959



13,525



5,561



2,097



(17)



21,166


Provision for credit losses


1,087



203



93



—



1,383



3,571



603



244



—



4,418


Non-interest expense


2,360



985



414



113



3,872



6,784



2,981



1,258



299



11,322


Income (loss) from continuing operations before income taxes


969



659



200



(124)



1,704



3,170



1,977



595



(316)



5,426


Income tax provision (benefit)


235



154



46



(60)



375



747



461



138



(275)



1,071


Income (loss) from continuing operations, net of tax


$

734



$

505



$

154



$

(64)



$

1,329



$

2,423



$

1,516



$

457



$

(41)