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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
FORM 8-K
____________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

October 22, 2020
Date of Report (Date of earliest event reported)
____________________________________
CAPITAL ONE FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
____________________________________
Delaware001-1330054-1719854
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
1680 Capital One Drive,
McLean,Virginia 22102
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (703) 720-1000
(Not applicable)
(Former name or former address, if changed since last report)
____________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock (par value $.01 per share)COF
New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series FCOF PRF
New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series GCOF PRG
New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series HCOF PRH
New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series ICOF PRI
New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series JCOF PRJ
New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series KCOF PRK
New York Stock Exchange
0.800% Senior Notes Due 2024COF24
New York Stock Exchange
1.650% Senior Notes Due 2029COF29
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company     ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02 Results of Operations and Financial Condition.

On October 22, 2020, Capital One Financial Corporation (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2020. Copies of the Company’s press release and financial supplement are attached and furnished herewith as Exhibits 99.1 and 99.2 to this Form 8-K and are incorporated herein by reference.

Note: Information in this report (including Exhibits 99.1 and 99.2) furnished pursuant to Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. 
1




Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.
Exhibit No.Description
99.1
99.2
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

Earnings Conference Call Webcast Information.

The Company will hold an earnings conference call on October 22, 2020 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. A replay of the webcast will be archived on the Company’s website through November 5, 2020 at 5:00 PM Eastern Time.

2




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
CAPITAL ONE FINANCIAL CORPORATION
Date: October 22, 2020By:/s/ TIMOTHY P. GOLDEN
Timothy P. Golden
Controller and Principal Accounting Officer

3
Document

Exhibit 99.1
News Release
https://cdn.kscope.io/8427ecbf9d5b33b12e15116596132dd6-earningsslidesvfinal1b.jpg    
Contacts:
Investor RelationsMedia Relations
Jeff NorrisDanielle DietzSie SoheiliTatiana Stead
jeff.norris@capitalone.comdanielle.dietz@capitalone.comsie.soheili@capitalone.comtatiana.stead@capitalone.com

FOR IMMEDIATE RELEASE: October 22, 2020
Capital One Reports Third Quarter 2020 Net Income of $2.4 billion,
or $5.06 per share
Excluding adjusting items, Third Quarter 2020 Net Income of $5.05 per share(1)
McLean, Va. (October 22, 2020) – Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2020 of $2.4 billion, or $5.06 per diluted common share, compared with a net loss of $918 million, or $2.21 per diluted common share in the second quarter of 2020, and with net income of $1.3 billion, or $2.69 per diluted common share in the third quarter of 2019. Excluding adjusting items, net income for the third quarter of 2020 was $5.05 per diluted common share(1).
“Capital One posted strong third quarter results. We are leaning in to resilience and we continue to be well served by the choices we made before the pandemic,” said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. “Our investments to transform our technology are powering our response to the downturn, and positioning us for the acceleration of digital change driven by the pandemic.”
Adjusting items in the third quarter of 2020, which are excluded from diluted earnings per share (EPS), efficiency ratio and operating efficiency ratio metrics (see Table 15 in our Financial Supplement for additional information):
(Dollars in millions, except per share data)Pre-Tax
Impact		Diluted EPS
Impact
U.K. Payment Protection Insurance customer refund reserve release (“U.K. PPI Reserve”)$36 $0.08 
Legal reserve builds(40)(0.06)
Cybersecurity Incident expenses, net of insurance(6)(0.01)
The quarter included the following notable items:
(Dollars in millions, except per share data)Pre-Tax
Impact		Diluted EPS
Impact
Equity investment gain$470 $0.79 
Allowance release associated with partnership loans moving to held-for-sale327 0.54 
(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.

Capital One Third Quarter 2020 Earnings
Page 2

All comparisons below are for the third quarter of 2020 compared with the second quarter of 2020 unless otherwise noted.
Third Quarter 2020 Income Statement Summary:
•Total net revenue increased 13 percent to $7.4 billion.
•Total non-interest expense decreased 6 percent to $3.5 billion:
◦4 percent increase in marketing.
◦7 percent decrease in operating expenses.
•Pre-provision earnings increased 38 percent to $3.8 billion(2).
•Provision for credit losses decreased 92 percent to $331 million:
◦Net charge-offs of $1.1 billion.
◦$742 million reserve release.
•Net interest margin of 5.68 percent, decreased 10 basis points.
•Efficiency ratio of 48.07 percent.
◦Efficiency ratio excluding adjusting items of 47.68 percent(1).
•Operating efficiency ratio of 44.24 percent.
◦Operating efficiency ratio excluding adjusting items of 43.83 percent(1).
Third Quarter 2020 Balance Sheet Summary:
•Common equity Tier 1 capital ratio under Basel III Standardized Approach of 13.0 percent at September 30, 2020.
•Period-end loans held for investment in the quarter decreased $3.3 billion, or 1 percent, to $248.2 billion.
◦Credit Card period-end loans decreased $3.7 billion, or 3 percent, to $103.6 billion.
•Domestic Card period-end loans decreased $3.8 billion, or 4 percent, to $95.5 billion.
◦Consumer Banking period-end loans increased $2.0 billion, or 3 percent, to $68.7 billion.
•Auto period-end loans increased $2.1 billion, or 3 percent, to $65.4 billion.
◦Commercial Banking period-end loans decreased $1.6 billion, or 2 percent, to $75.9 billion.
•Average loans held for investment in the quarter decreased $3.8 billion, or 2 percent, to $249.5 billion.
◦Credit Card average loans decreased $3.4 billion, or 3 percent, to $105.4 billion.
•Domestic Card average loans decreased $3.7 billion, or 4 percent, to $97.3 billion.
◦Consumer Banking average loans increased $3.0 billion, or 5 percent, to $67.8 billion.
•Auto average loans increased $2.7 billion, or 4 percent, to $64.5 billion.
◦Commercial Banking average loans decreased $3.4 billion, or 4 percent, to $76.3 billion.
(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.
Capital One Third Quarter 2020 Earnings
Page 3

•Period-end total deposits increased $1.5 billion, or less than 1 percent, to $305.7 billion, while average deposits increased $17.2 billion, or 6 percent, to $305.5 billion.
•Interest-bearing deposits rate paid decreased 25 basis points to 0.69 percent.
Earnings Conference Call Webcast Information
The company will hold an earnings conference call on October 22, 2020 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 5, 2020 at 5:00 PM Eastern Time.
Forward-Looking Statements
Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2019.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $305.7 billion in deposits and $421.9 billion in total assets as of September 30, 2020. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.
###



Document

Exhibit 99.2

Capital One Financial Corporation
Financial Supplement(1)(2)
Third Quarter 2020
Table of Contents
Capital One Financial Corporation Consolidated ResultsPage
Business Segment Results
Other
__________
(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, 2020 once it is filed with the Securities and Exchange Commission.
(2)This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies.


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 1: Financial Summary—Consolidated
2020 Q3 vs.Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted) 20202020202020192019202020192020 vs.
Q3Q2Q1Q4Q3Q2Q3202020192019
Income Statement
Net interest income$5,555 $5,460 $6,025 $6,066 $5,737 2 %(3)%$17,040 $17,274 (1)%
Non-interest income1,826 1,096 1,224 1,361 1,222 67 49 4,146 3,892 7 
Total net revenue(1)
7,381 6,556 7,249 7,427 6,959 13 6 21,186 21,166 — 
Provision for credit losses331 4,246 5,423 1,818 1,383 (92)(76)10,000 4,418 126 
Non-interest expense:
Marketing283 273 491 710 501 4 (44)1,047 1,564 (33)
Operating expense3,265 3,497 3,238 3,451 3,371 (7)(3)10,000 9,758 2 
Total non-interest expense3,548 3,770 3,729 4,161 3,872 (6)(8)11,047 11,322 (2)
Income (loss) from continuing operations before income taxes3,502 (1,460)(1,903)1,448 1,704 **106 139 5,426 (97)
Income tax provision (benefit)1,096 (543)(563)270 375 **192 (10)1,071 **
Income (loss) from continuing operations, net of tax2,406 (917)(1,340)1,178 1,329 **81 149 4,355 (97)
Income (loss) from discontinued operations, net of tax— (1)— (2)4 ****(1)15 **
Net income (loss)2,406 (918)(1,340)1,176 1,333 **80 148 4,370 (97)
Dividends and undistributed earnings allocated to participating securities(2)
(20)(1)(3)(7)(10)**100 (5)(34)(85)
Preferred stock dividends(67)(90)(55)(97)(53)(26)26 (212)(185)15 
Issuance cost for redeemed preferred stock(3)
— — (22)(31)— — — (22)— **
Net income (loss) available to common stockholders$2,319 $(1,009)$(1,420)$1,041 $1,270 **83 $(91)$4,151 **
Common Share Statistics
Basic earnings per common share:(2)
Net income (loss) from continuing operations$5.07 $(2.21)$(3.10)$2.26 $2.70 **88 %$(0.20)$8.80 **
Income from discontinued operations— — — — 0.01 — **— 0.03 **
Net income (loss) per basic common share$5.07 $(2.21)$(3.10)$2.26 $2.71 **87 $(0.20)$8.83 **
Diluted earnings per common share:(2)
Net income (loss) from continuing operations$5.06 $(2.21)$(3.10)$2.25 $2.68 **89 $(0.20)$8.76 **
Income from discontinued operations— — — — 0.01 — **— 0.03 **
Net income (loss) per diluted common share$5.06 $(2.21)$(3.10)$2.25 $2.69 **88 $(0.20)$8.79 **
Weighted-average common shares outstanding (in millions):
Basic457.8 456.7 457.6 460.9 469.5 — (2)457.4 469.9 (3)%
Diluted458.5 456.7 457.6 463.4 471.8 — (3)457.4 472.1 (3)
Common shares outstanding (period-end, in millions)457.4 456.3 455.3 456.6 465.7 — (2)457.4 465.7 (2)
Dividends declared and paid per common share$0.10 $0.40 $0.40 $0.40 $0.40 (75)%(75)$0.90 $1.20 (25)
Tangible book value per common share (period-end)(4)
83.67 78.82 80.68 83.72 80.46 6 4 83.67 80.46 4 
1

2020 Q3 vs.Nine Months Ended September 30,
(Dollars in millions)20202020202020192019202020192020 vs.
Q3Q2Q1Q4Q3Q2Q3202020192019
Balance Sheet (Period-End)
Loans held for investment$248,223 $251,512 $262,990 $265,809 $249,355 (1)%— $248,223 $249,355 — 
Interest-earning assets390,040 389,829 364,472 355,202 344,643 — 13 %390,040 344,643 13 %
Total assets421,883 421,296 396,878 390,365 378,810 — 11 421,883 378,810 11 
Interest-bearing deposits276,092 275,183 245,142 239,209 234,084 — 18 276,092 234,084 18 
Total deposits305,725 304,238 269,689 262,697 257,148 — 19 305,725 257,148 19 
Borrowings42,795 44,900 55,681 55,697 50,149 (5)(15)42,795 50,149 (15)
Common equity53,093 50,835 51,620 53,157 52,412 4 1 53,093 52,412 1 
Total stockholders’ equity58,424 56,045 56,830 58,011 58,235 4 — 58,424 58,235 — 
Balance Sheet (Average Balances)
Loans held for investment$249,511 $253,358 $262,889 $258,870 $246,147 (2)%1 %$255,232 $243,602 5 %
Interest-earning assets391,451 378,145 355,347 349,150 340,949 4 15 375,041 338,936 11 
Total assets422,854 411,075 390,380 383,162 374,905 3 13 408,233 372,148 10 
Interest-bearing deposits276,339 261,256 241,115 236,250 232,063 6 19 259,631 230,045 13 
Total deposits305,516 288,344 264,653 260,040 255,082 6 20 286,242 253,389 13 
Borrowings44,161 49,827 51,795 51,442 49,413 (11)(11)48,577 50,804 (4)
Common equity51,995 52,413 53,186 52,641 52,566 (1)(1)52,529 50,393 4 
Total stockholders’ equity57,223 57,623 58,568 58,148 57,245 (1)— 57,802 54,861 5 
    
2

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Selected Metrics—Consolidated
2020 Q3 vs.Nine Months Ended September 30,
(Dollars in millions, except as noted) 20202020202020192019202020192020 vs.
Q3Q2Q1Q4Q3Q2Q3202020192019
Performance Metrics
Net interest income growth (period over period)2 %(9)%(1)%6 %— ****(1)%1 %**
Non-interest income growth (period over period)67 (10)(10)11 (11)%****7 (3)**
Total net revenue growth (period over period)13 (10)(2)7 (2)****— — **
Total net revenue margin(5)
7.54 6.93 8.16 8.51 8.16 61 bps(62)bps7.53 8.33 (80)bps
Net interest margin(6)
5.68 5.78 6.78 6.95 6.73 (10)(105)6.06 6.80 (74)
Return on average assets2.28 (0.89)(1.37)1.23 1.42 317 86 0.05 1.56 (151)
Return on average tangible assets(7)
2.36 (0.93)(1.43)1.28 1.48 329 88 0.05 1.63 (158)
Return on average common equity(8)
17.84 (7.69)(10.68)7.93 9.63 **8 %(0.23)10.94 **
Return on average tangible common equity(9)
24.98 (10.74)(14.85)11.07 13.45 **12 (0.32)15.54 **
Non-interest expense as a percentage of average loans held for investment5.69 5.95 5.67 6.43 6.29 (26)(60)bps5.77 6.20 (43)
Efficiency ratio(10)
48.07 57.50 51.44 56.03 55.64 (9)%(8)%52.14 53.49 (135)
Operating efficiency ratio(11)
44.24 53.34 44.67 46.47 48.44 (9)(4)47.20 46.10 110 
Effective income tax rate for continuing operations 31.3 37.2 29.6 18.6 22.0 (6)9 (7.2)19.7 (27)%
Employees (period-end, in thousands)52.5 53.1 52.1 51.9 52.1 (1)1 52.5 52.1 1 
Credit Quality Metrics
Allowance for credit losses$16,129 $16,832 $14,073 $7,208 $7,037 (4)%129 %$16,129 $7,037 129 %
Allowance coverage ratio6.50 %6.69 %5.35 %2.71 %2.82 %(19)bps368 bps6.50 %2.82 %368 bps
Net charge-offs$1,073 $1,505 $1,791 $1,683 $1,462 (29)%(27)%$4,369 $4,569 (4)%
Net charge-off rate(12)
1.72 %2.38 %2.72 %2.60 %2.38 %(66)bps(66)bps2.28 %2.50 %(22)bps
30+ day performing delinquency rate(13)
1.97 2.09 2.95 3.51 3.28 (12)(131)1.97 3.28 (131)
30+ day delinquency rate(13)
2.22 2.30 3.16 3.74 3.51 (8)(129)2.22 3.51 (129)
Capital Ratios(14)
Common equity Tier 1 capital
13.0 %12.4 %12.0 %12.2 %12.5 %60 bps50 bps13.0 %12.5 %50 bps
Tier 1 capital14.8 14.2 13.7 13.7 14.4 60 40 14.8 14.4 40 
Total capital17.3 16.7 16.1 16.1 16.8 60 50 17.3 16.8 50 
Tier 1 leverage10.6 10.3 11.0 11.7 11.9 30 (130)10.6 11.9 (130)
Tangible common equity (“TCE”)(15)
9.4 8.8 9.6 10.2 10.3 60 (90)9.4 10.3 (90)
 
3

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3: Consolidated Statements of Income
2020 Q3 vs.Nine Months Ended September 30,
20202020202020192019202020192020 vs.
(Dollars in millions, except per share data and as noted) Q3Q2Q1Q4Q3Q2Q3202020192019
Interest income:
Loans, including loans held for sale$5,758 $5,820 $6,542 $6,682 $6,429 (1)%(10)%$18,120 $19,180 (6)%
Investment securities443 482 530 544 583 (8)(24)1,455 1,867 (22)
Other14 16 37 44 63 (13)(78)67 196 (66)
Total interest income6,215 6,318 7,109 7,270 7,075 (2)(12)19,642 21,243 (8)
Interest expense:
Deposits476 611 731 832 901 (22)(47)1,818 2,588 (30)
Securitized debt obligations43 56 99 118 123 (23)(65)198 405 (51)
Senior and subordinated notes132 180 239 236 299 (27)(56)551 923 (40)
Other borrowings9 11 15 18 15 (18)(40)35 53 (34)
Total interest expense660 858 1,084 1,204 1,338 (23)(51)2,602 3,969 (34)
Net interest income5,555 5,460 6,025 6,066 5,737 2 (3)17,040 17,274 (1)
Provision for credit losses331 4,246 5,423 1,818 1,383 (92)(76)10,000 4,418 126 
Net interest income after provision for credit losses5,224 1,214 602 4,248 4,354 **20 7,040 12,856 (45)
Non-interest income:
Interchange fees, net775 672 752 811 790 15 (2)2,199 2,368 (7)
Service charges and other customer-related fees320 258 327 342 283 24 13 905 988 (8)
Net securities gains (losses)25 — — (18)5 ****25 44 (43)
Other706 166 145 226 144 ****1,017 492 107 
Total non-interest income1,826 1,096 1,224 1,361 1,222 67 49 4,146 3,892 7 
Non-interest expense:
Salaries and associate benefits1,719 1,704 1,627 1,652 1,605 1 7 5,050 4,736 7 
Occupancy and equipment506 523 517 565 519 (3)(3)1,546 1,533 1 
Marketing283 273 491 710 501 4 (44)1,047 1,564 (33)
Professional services327 304 287 318 314 8 4 918 919 — 
Communications and data processing310 308 302 346 312 1 (1)920 944 (3)
Amortization of intangibles14 16 22 28 25 (13)(44)52 84 (38)
Other(16)
389 642 483 542 596 (39)(35)1,514 1,542 (2)
Total non-interest expense3,548 3,770 3,729 4,161 3,872 (6)(8)11,047 11,322 (2)
Income (loss) from continuing operations before income taxes3,502 (1,460)(1,903)1,448 1,704 **106 139 5,426 (97)
Income tax provision (benefit)1,096 (543)(563)270 375 **192 (10)1,071 **
Income (loss) from continuing operations, net of tax2,406 (917)(1,340)1,178 1,329 **81 149 4,355 (97)
Income (loss) from discontinued operations, net of tax— (1)— (2)4 ****(1)15 **
Net income (loss)2,406 (918)(1,340)1,176 1,333 **80 148 4,370 (97)
Dividends and undistributed earnings allocated to participating securities(2)
(20)(1)(3)(7)(10)**100 (5)(34)(85)
Preferred stock dividends(67)(90)(55)(97)(53)(26)26 (212)(185)15 
Issuance cost for redeemed preferred stock(3)
— — (22)(31)— — — (22)— **
Net income (loss) available to common stockholders$2,319 $(1,009)$(1,420)$1,041 $1,270 **83 $(91)$4,151 **
4

2020 Q3 vs.Nine Months Ended September 30,
20202020202020192019202020192020 vs.
(Dollars in millions, except per share data and as noted)Q3Q2Q1Q4Q3Q2Q3202020192019
Basic earnings per common share:(2)
Net income (loss) from continuing operations$5.07 $(2.21)$(3.10)$2.26 $2.70 **88 %$(0.20)$8.80 **
Income from discontinued operations— — — — 0.01 —**— 0.03 **
Net income (loss) per basic common share$5.07 $(2.21)$(3.10)$2.26 $2.71 **87 $(0.20)$8.83 **
Diluted earnings per common share:(2)
Net income (loss) from continuing operations$5.06 $(2.21)$(3.10)$2.25 $2.68 **89 $(0.20)$8.76 **
Income from discontinued operations— — — — 0.01 —**— 0.03 **
Net income (loss) per diluted common share$5.06 $(2.21)$(3.10)$2.25 $2.69 **88 $(0.20)$8.79 **
Weighted-average common shares outstanding (in millions):
Basic common shares457.8 456.7 457.6 460.9 469.5 —(2)457.4 469.9 (3)%
Diluted common shares458.5 456.7 457.6 463.4 471.8 —(3)457.4 472.1 (3)
5

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets
2020 Q3 vs.
2020202020202019201920202019
(Dollars in millions)Q3Q2Q1Q4Q3Q2Q3
Assets:
Cash and cash equivalents:
Cash and due from banks$4,267 $4,583 $4,545 $4,129 $4,452 (7)%(4)%
Interest-bearing deposits and other short-term investments39,839 51,235 20,391 9,278 12,668 (22)**
Total cash and cash equivalents44,106 55,818 24,936 13,407 17,120 (21)158 
Restricted cash for securitization investors895 740 364 342 417 21 115 
Investment securities:
Securities available for sale99,853 87,859 81,423 79,213 46,168 14 116 
Securities held to maturity— — — — 33,894 — **
Total investment securities99,853 87,859 81,423 79,213 80,062 14 25 
Loans held for investment:
Unsecuritized loans held for investment217,878 222,310 231,318 231,992 215,892 (2)1 
Loans held in consolidated trusts30,345 29,202 31,672 33,817 33,463 4 (9)
Total loans held for investment248,223 251,512 262,990 265,809 249,355 (1)— 
Allowance for credit losses(16,129)(16,832)(14,073)(7,208)(7,037)(4)129 
Net loans held for investment232,094 234,680 248,917 258,601 242,318 (1)(4)
Loans held for sale3,433 711 1,056 400 1,245 **176 
Premises and equipment, net4,333 4,324 4,336 4,378 4,311 — 1 
Interest receivable1,551 1,574 1,687 1,758 1,627 (1)(5)
Goodwill14,648 14,645 14,645 14,653 14,624 — — 
Other assets20,970 20,945 19,514 17,613 17,086 — 23 
Total assets$421,883 $421,296 $396,878 $390,365 $378,810 — 11 
6

2020 Q3 vs.
2020202020202019201920202019
(Dollars in millions) Q3Q2Q1Q4Q3Q2Q3
Liabilities:
Interest payable$332 $380 $359 $439 $370 (13)%(10)%
Deposits:
Non-interest-bearing deposits29,633 29,055 24,547 23,488 23,064 2 28 
Interest-bearing deposits276,092 275,183 245,142 239,209 234,084 — 18 
Total deposits305,725 304,238 269,689 262,697 257,148 — 19 
Securitized debt obligations13,566 15,761 17,141 17,808 18,910 (14)(28)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase702 573 399 314 464 23 51 
Senior and subordinated notes28,448 28,481 32,049 30,472 30,682 — (7)
Other borrowings79 85 6,092 7,103 93 (7)(15)
Total other debt29,229 29,139 38,540 37,889 31,239 — (6)
Other liabilities14,607 15,733 14,319 13,521 12,908 (7)13 
Total liabilities363,459 365,251 340,048 332,354 320,575 — 13 
Stockholders’ equity:
Preferred stock0 0 0 0 0 — — 
Common stock7 7 7 7 7 — — 
Additional paid-in capital, net33,793 33,556 33,450 32,980 33,826 1 — 
Retained earnings37,653 35,361 36,552 40,340 39,476 6 (5)
Accumulated other comprehensive income3,833 3,981 3,679 1,156 453 (4)**
Treasury stock, at cost(16,862)(16,860)(16,858)(16,472)(15,527)— 9 
Total stockholders’ equity58,424 56,045 56,830 58,011 58,235 4 — 
Total liabilities and stockholders’ equity$421,883 $421,296 $396,878 $390,365 $378,810 — 11 

7

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 $235 million in Q3 2020, $318 million in Q2 2020 and $389 million in Q1 2020 for credit card finance charges and fees charged-off as uncollectible, and by $365 million in Q4 2019 and $330 million in Q3 2019 for the estimated uncollectible amount of credit card finance charges and fees and related losses.
(2)Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.
(3)On March 2, 2020, we redeemed all outstanding shares of our fixed rate 6.00% non-cumulative perpetual preferred stock Series B. The redemption increased our net loss available to common shareholders by $22 million in Q1 2020. On December 2, 2019, we redeemed all outstanding shares of our fixed rate 6.25% non-cumulative perpetual preferred stock Series C and fixed rate 6.70% non-cumulative perpetual preferred stock Series D. The redemption reduced our net income available to common shareholders by $31 million in Q4 2019.
(4)Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
(5)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.
(6)Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(7)Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
(8)Return on average common equity is calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.
(9)Return on average tangible common equity (“ROTCE”) is a non-GAAP measure calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average tangible common equity (“TCE”). Our calculation of return on average TCE may not be comparable to similarly-titled measures reported by other companies. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
(10)Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.
(11)Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.
(12)Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
(13)Metrics for Q3 2020, Q2 2020 and Q1 2020 include the impact of COVID-19 customer assistance programs where applicable.
(14)Capital ratios as of the end of Q3 2020 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.
(15)TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
(16)Includes net Cybersecurity Incident expenses of $6 million in Q3 2020, $11 million in Q2 2020, $4 million in Q1 2020, $16 million in Q4 2019 and $22 million in Q3 2019, respectively.
**    Not meaningful.
8

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 6: Average Balances, Net Interest Income and Net Interest Margin
2020 Q32020 Q22019 Q3
Average BalanceInterest Income/ ExpenseYield/RateAverage BalanceInterest Income/ ExpenseYield/RateAverage BalanceInterest Income/ ExpenseYield/Rate
(Dollars in millions, except as noted)
Interest-earning assets:
Loans, including loans held for sale$250,525 $5,758 9.19 %$254,402 $5,820 9.15 %$247,419 $6,429 10.39 %
Investment securities91,777 443 1.93 81,095 482 2.38 80,762 583 2.88 
Cash equivalents and other49,149 14 0.11 42,648 16 0.15 12,768 63 2.00 
Total interest-earning assets$391,451 $6,215 6.35 $378,145 $6,318 6.68 $340,949 $7,075 8.30 
Interest-bearing liabilities:
Interest-bearing deposits$276,339 $476 0.69 $261,256 $611 0.94 $232,063 $901 1.55 
Securitized debt obligations15,032 43 1.14 16,432 56 1.37 16,750 123 2.94 
Senior and subordinated notes28,497 132 1.86 31,294 180 2.30 31,220 299 3.84 
Other borrowings and liabilities2,119 9 1.77 3,554 11 1.21 2,698 15 2.14 
Total interest-bearing liabilities$321,987 $660 0.82 $312,536 $858 1.10 $282,731 $1,338 1.89 
Net interest income/spread$5,555 5.53 $5,460 5.58 $5,737 6.41 
Impact of non-interest-bearing funding0.15 0.20 0.32 
Net interest margin5.68 %5.78 %6.73 %
Nine Months Ended September 30,
20202019
Average BalanceInterest Income/ ExpenseYield/RateAverage BalanceInterest Income/ ExpenseYield/Rate
(Dollars in millions, except as noted)
Interest-earning assets:
Loans, including loans held for sale$256,165 $18,120 9.43 %$244,743 $19,180 10.45 %
Investment securities83,724 1,455 2.32 82,264 1,867 3.03 
Cash equivalents and other35,152 67 0.25 11,929 196 2.19 
Total interest-earning assets$375,041 $19,642 6.98 $338,936 $21,243 8.36 
Interest-bearing liabilities:
Interest-bearing deposits$259,631 $1,818 0.93 $230,045 $2,588 1.50 
Securitized debt obligations16,500 198 1.60 17,912 405 3.02 
Senior and subordinated notes30,371 551 2.42 30,897 923 3.98 
Other borrowings and liabilities3,147 35 1.50 3,228 53 2.19 
Total interest-bearing liabilities$309,649 $2,602 1.12 $282,082 $3,969 1.88 
Net interest income/spread$17,040 5.86 $17,274 6.48 
Impact of non-interest-bearing funding0.20 0.32 
Net interest margin6.06 %6.80 %

9

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics
2020 Q3 vs.Nine Months Ended September 30,
2020202020202019201920202019202020192020 vs. 2019
(Dollars in millions, except as noted) Q3Q2Q1Q4Q3Q2Q3
Loans Held for Investment (Period-End)
Credit card:
   Domestic credit card(7)
$95,541 $99,390 $109,549 $118,606 $104,664 (4)%(9)%$95,541 $104,664 (9)%
   International card businesses8,100 7,920 8,248 9,630 9,017 2 (10)8,100 9,017 (10)
Total credit card(1)
103,641 107,310 117,797 128,236 113,681 (3)(9)103,641 113,681 (9)
Consumer banking:
   Auto65,394 63,319 61,364 60,362 59,278 3 10 65,394 59,278 10 
   Retail banking3,294 3,393 2,669 2,703 2,737 (3)20 3,294 2,737 20 
Total consumer banking68,688 66,712 64,033 63,065 62,015 3 11 68,688 62,015 11 
Commercial banking:
   Commercial and multifamily real estate31,197 30,953 32,373 30,245 30,009 1 4 31,197 30,009 4 
   Commercial and industrial44,697 46,537 48,787 44,263 43,650 (4)2 44,697 43,650 2 
Total commercial banking75,894 77,490 81,160 74,508 73,659 (2)3 75,894 73,659 3 
Total loans held for investment$248,223 $251,512 $262,990 $265,809 $249,355 (1)— $248,223 $249,355 — 
Loans Held for Investment (Average)
Credit card:
   Domestic credit card$97,306 $100,996 $113,711 $112,965 $103,426 (4)%(6)%$103,980 $102,677 1 %
   International card businesses8,061 7,752 9,065 9,120 8,945 4 (10)8,292 8,868 (6)
Total credit card(1)
105,367 108,748 122,776 122,085 112,371 (3)(6)112,272 111,545 1 
Consumer banking:
   Auto64,476 61,798 61,005 59,884 58,517 4 10 62,434 57,282 9 
   Retail banking3,346 3,053 2,666 2,712 2,752 10 22 3,023 2,790 8 
Total consumer banking67,822 64,851 63,671 62,596 61,269 5 11 65,457 60,072 9 
Commercial banking:
   Commercial and multifamily real estate30,918 31,723 31,081 30,173 29,698 (3)4 31,239 29,418 6 
   Commercial and industrial45,404 48,036 45,361 44,016 42,807 (5)6 46,264 42,474 9 
Total commercial lending76,322 79,759 76,442 74,189 72,505 (4)5 77,503 71,892 8 
   Small-ticket commercial real estate— — — — 2 ****— 93 **
Total commercial banking76,322 79,759 76,442 74,189 72,507 (4)5 77,503 71,985 8 
Total average loans held for investment$249,511 $253,358 $262,889 $258,870 $246,147 (2)1 $255,232 $243,602 5 
10

2020 Q3 vs.Nine Months Ended September 30,
2020202020202019201920202019202020192020 vs. 2019
Q3Q2Q1Q4Q3Q2Q3
Net Charge-Off Rates
Credit card:
   Domestic credit card3.64 %4.53 %4.68 %4.32 %4.12 %(89)bps(48)bps4.31 %4.67 %(36)bps
   International card businesses2.89 3.47 4.65 4.22 3.78 (58)(89)3.71 3.54 17 
Total credit card3.58 4.46 4.68 4.31 4.09 (88)(51)4.26 4.58 (32)
Consumer banking:
   Auto0.23 1.16 1.51 1.90 1.60 (93)(137)0.95 1.38 (43)
   Retail banking1.38 1.78 2.37 2.77 2.55 (40)(117)1.80 2.51 (71)
Total consumer banking0.28 1.19 1.54 1.93 1.64 (91)(136)0.99 1.43 (44)
Commercial banking:
   Commercial and multifamily real estate0.41 0.09 — — 0.02 32 39 0.17 0.01 16 
   Commercial and industrial0.45 0.78 0.96 0.60 0.55 (33)(10)0.73 0.28 45 
Total commercial banking0.43 0.51 0.57 0.35 0.33 (8)10 0.50 0.17 33 
Total net charge-offs1.72 2.38 2.72 2.60 2.38 (66)(66)2.28 2.50 (22)
30+ Day Performing Delinquency Rates(2)
Credit card:
   Domestic credit card2.21 %2.74 %3.69 %3.93 %3.71 %(53)bps(150)bps2.21 %3.71 %(150)bps
   International card businesses2.15 2.71 3.66 3.47 3.52 (56)(137)2.15 3.52 (137)
Total credit card2.20 2.74 3.69 3.89 3.69 (54)(149)2.20 3.69 (149)
Consumer banking:
   Auto3.76 3.28 5.29 6.88 6.47 48 (271)3.76 6.47 (271)
   Retail banking0.83 0.89 1.27 1.02 1.01 (6)(18)0.83 1.01 (18)
Total consumer banking3.62 3.16 5.12 6.63 6.23 46 (261)3.62 6.23 (261)
Nonperforming Loans and Nonperforming Assets Rates(3)(4)
Credit card:
   International card businesses0.25 %0.29 %0.29 %0.26 %0.25 %(4)bps— 0.25 %0.25 %— 
Total credit card0.02 0.02 0.02 0.02 0.02 — — 0.02 0.02 — 
Consumer banking:
   Auto0.36 0.41 0.62 0.81 0.73 (5)(37)bps0.36 0.73 (37)bps
   Retail banking0.77 0.70 0.88 0.87 0.91 7 (14)0.77 0.91 (14)
Total consumer banking0.38 0.43 0.63 0.81 0.74 (5)(36)0.38 0.74 (36)
Commercial banking:
   Commercial and multifamily real estate0.58 0.54 0.22 0.12 0.12 4 46 0.58 0.12 46 
   Commercial and industrial1.31 1.06 0.87 0.93 0.95 25 36 1.31 0.95 36 
Total commercial banking1.01 0.85 0.61 0.60 0.61 16 40 1.01 0.61 40 
Total nonperforming loans0.42 0.38 0.35 0.37 0.37 4 5 0.42 0.37 5 
Total nonperforming assets0.44 0.39 0.37 0.39 0.40 5 4 0.44 0.40 4 
11

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity
Three Months Ended September 30, 2020
Credit CardConsumer Banking
(Dollars in millions) Domestic CardInternational Card BusinessesTotal Credit CardAutoRetail BankingTotal Consumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of June 30, 2020$11,569 $522 $12,091 $2,726 $112 $2,838 $1,903 $16,832 
Charge-offs(1,198)(98)(1,296)(280)(15)(295)(88)(1,679)
Recoveries313 40 353 244 3 247 6 606 
Net charge-offs(885)(58)(943)(36)(12)(48)(82)(1,073)
Provision (benefit) for credit losses378 72 450 (43)— (43)(51)356 
Allowance build (release) for credit losses(507)14 (493)(79)(12)(91)(133)(717)
Other changes(5)
— 14 14 — — — — 14 
Balance as of September 30, 202011,062 550 11,612 2,647 100 2,747 1,770 16,129 
Reserve for unfunded lending commitments:
Balance as of June 30, 2020— — — — — — 218 218 
Benefit for losses on unfunded lending commitments— — — — — — (23)(23)
Balance as of September 30, 2020— — — — — — 195 195 
Combined allowance and reserve as of September 30, 2020$11,062 $550 $11,612 $2,647 $100 $2,747 $1,965 $16,324 
12

Nine Months Ended September 30, 2020
Credit CardConsumer Banking
(Dollars in millions) Domestic CardInternational Card BusinessesTotal Credit CardAutoRetail BankingTotal Consumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of December 31, 2019$4,997 $398 $5,395 $984 $54 $1,038 $775 $7,208 
Cumulative effects from adoption of the current expected credit loss (“CECL”) standard2,237 4 2,241 477 25 502 102 2,845 
Finance charge and fee reserve reclassification(1)
439 23 462 — — — — 462 
Balance as of January 1, 20207,673 425 8,098 1,461 79 1,540 877 10,515 
Charge-offs(4,406)(351)(4,757)(1,155)(52)(1,207)(303)(6,267)
Recoveries1,047 120 1,167 710 11 721 10 1,898 
Net charge-offs(3,359)(231)(3,590)(445)(41)(486)(293)(4,369)
Provision for credit losses6,748 348 7,096 1,631 62 1,693 1,186 9,975 
Allowance build for credit losses3,389 117 3,506 1,186 21 1,207 893 5,606 
Other changes(5)
— 8 8 — — — — 8 
Balance as of September 30, 202011,062 550 11,612 2,647 100 2,747 1,770 16,129 
Reserve for unfunded lending commitments:
Balance as of December 31, 2019— — — — 5 5 130 135 
Cumulative effects from adoption of the CECL standard— — — — (5)(5)42 37 
Balance as of January 1, 2020— — — — — — 172 172 
Provision for losses on unfunded lending commitments— — — — — — 23 23 
Balance as of September 30, 2020— — — — — — 195 195 
Combined allowance and reserve as of September 30, 2020$11,062 $550 $11,612 $2,647 $100 $2,747 $1,965 $16,324 
13

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial Summary—Business Segment Results
Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
(Dollars in millions)Credit CardConsumer Banking
Commercial Banking(6)
Other(6)
TotalCredit CardConsumer Banking
Commercial Banking(6)
Other(6)
Total
Net interest income (loss)$3,292 $1,904 $517 $(158)$5,555 $10,363 $5,226 $1,526 $(75)$17,040 
Non-interest income1,013 107 237 469 1,826 2,769 330 655 392 4,146 
Total net revenue4,305 2,011 754 311 7,381 13,132 5,556 2,181 317 21,186 
Provision (benefit) for credit losses450 (43)(74)(2)331 7,096 1,693 1,209 2 10,000 
Non-interest expense2,003 1,011 424 110 3,548 6,180 3,038 1,261 568 11,047 
Income (loss) from continuing operations before income taxes1,852 1,043 404 203 3,502 (144)825 (289)(253)139 
Income tax provision (benefit)438 247 95 316 1,096 (34)195 (69)(102)(10)
Income (loss) from continuing operations, net of tax$1,414 $796 $309 $(113)$2,406 $(110)$630 $(220)$(151)$149 
Three Months Ended June 30, 2020
(Dollars in millions) Credit CardConsumer Banking
Commercial Banking(6)
Other(6)
Total
Net interest income (loss)$3,369 $1,665 $518 $(92)$5,460 
Non-interest income (loss)845 97 180 (26)1,096 
Total net revenue (loss)4,214 1,762 698 (118)6,556 
Provision (benefit) for credit losses2,944 876 427 (1)4,246 
Non-interest expense1,969 1,036 425 340 3,770 
Loss from continuing operations before income taxes(699)(150)(154)(457)(1,460)
Income tax benefit(166)(36)(36)(305)(543)
Loss from continuing operations, net of tax$(533)$(114)$(118)$(152)$(917)
Three Months Ended September 30, 2019Nine Months Ended September 30, 2019
(Dollars in millions) Credit CardConsumer Banking
Commercial Banking(6)
Other(6)
TotalCredit CardConsumer Banking
Commercial Banking(6)
Other(6)
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 losses1,087 203 93 — 1,383 3,571 603 244 — 4,418 
Non-interest expense2,360 985 414 113 3,872 6,784 2,981 1,258 299 11,322 
Income (loss) from continuing operations before income taxes969 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)$4,355 

14

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary—Credit Card Business
2020 Q3 vs.Nine Months Ended September 30,
20202020202020192019202020192020 vs.
(Dollars in millions, except as noted) Q3Q2Q1Q4Q3Q2Q3202020192019
Credit Card
Earnings:
Net interest income $3,292$3,369$3,702$3,794$3,546(2)%(7)%$10,363$10,667(3)%
Non-interest income 1,0138459111,03087020 16 2,7692,858(3)
Total net revenue4,3054,2144,6134,8244,4162 (3)13,13213,525(3)
Provision for credit losses4502,9443,7021,4211,087(85)(59)7,0963,57199 
Non-interest expense2,0031,9692,2082,4872,3602 (15)6,1806,784(9)
Income (loss) from continuing operations before income taxes1,852(699)(1,297)916969**91 (144)3,170**
Income tax provision (benefit)438(166)(306)212235**86 (34)747**
Income (loss) from continuing operations, net of tax$1,414$(533)$(991)$704$734**93 $(110)$2,423**
Selected performance metrics:
Period-end loans held for investment(1)(7)
$103,641$107,310$117,797$128,236$113,681(3)(9)$103,641$113,681(9)
Average loans held for investment(1)
105,367108,748122,776122,085112,371(3)(6)112,272111,5451 
Average yield on loans held for investment(8)
13.83 %13.72 %14.46 %15.02 %15.55 %11 bps(172)bps14.03 %15.66 %(163)bps
Total net revenue margin(9)
16.34 15.50 15.03 15.80 15.72 84 62 15.59 16.17 (58)
Net charge-off rate3.58 4.46 4.68 4.31 4.09 (88)(51)4.26 4.58 (32)
30+ day performing delinquency rate2.20 2.74 3.69 3.89 3.69 (54)(149)2.20 3.69 (149)
30+ day delinquency rate2.21 2.75 3.70 3.91 3.71 (54)(150)2.21 3.71 (150)
Nonperforming loan rate(3)
0.02 0.02 0.02 0.02 0.02 — — 0.02 0.02 — 
Purchase volume(10)
$107,102$90,149$99,920$116,631$108,03419 %(1)%$297,171$308,134(4)%
15

2020 Q3 vs.Nine Months Ended September 30,
20202020202020192019202020192020 vs.
(Dollars in millions, except as noted)Q3Q2Q1Q4Q3Q2Q3202020192019
Domestic Card
Earnings:
Net interest income $2,995$3,094$3,381$3,473$3,299(3)%(9)%$9,470$9,792(3)%
Non-interest income 95279584296287820 8 2,5892,722(5)
Total net revenue3,9473,8894,2234,4354,1771 (6)12,05912,514(4)
Provision for credit losses3782,9063,4641,3461,010(87)(63)6,7483,325103 
Non-interest expense1,8021,7761,9842,2492,0761 (13)5,5626,059(8)
Income (loss) from continuing operations before income taxes1,767(793)(1,225)8401,091**62 (251)3,130**
Income tax provision (benefit)419(188)(290)196254**65 (59)729**
Income (loss) from continuing operations, net of tax$1,348$(605)$(935)$644$837**61 $(192)$2,401**
Selected performance metrics:
Period-end loans held for investment(1)(7)
$95,541$99,390$109,549$118,606$104,664(4)(9)$95,541$104,664(9)
Average loans held for investment(1)
97,306100,996113,711112,965103,426(4)(6)103,980102,6771 
Average yield on loans held for investment(8)
13.57 %13.52 %14.30 %14.91 %15.74 %5 bps(217)bps13.82 %15.67 %(185)bps
Total net revenue margin(9)
16.22 15.40 14.86 15.70 16.15 82 7 15.46 16.25 (79)
Net charge-off rate3.64 4.53 4.68 4.32 4.12 (89)(48)4.31 4.67 (36)
30+ day performing delinquency rate2.21 2.74 3.69 3.93 3.71 (53)(150)2.21 3.71 (150)
Purchase volume(10)
$98,107$82,860$92,248$107,154$99,08718 %(1)%$273,215$282,878(3)%
Refreshed FICO scores:(11)
Greater than 66069 %67 %65 %67 %68 %2 1 69 %68 %1 
660 or below31 33 35 33 32 (2)(1)31 32 (1)
Total100 %100 %100 %100 %100 %100 %100 %
16

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Financial & Statistical Summary—Consumer Banking Business
2020 Q3 vs.Nine Months Ended September 30,
20202020202020192019202020192020 vs.
(Dollars in millions, except as noted)Q3Q2Q1Q4Q3Q2Q3202020192019
Consumer Banking
Earnings:
Net interest income $1,904$1,665$1,657$1,662$1,68214 %13 %$5,226$5,0703 %
Non-interest income 1079712615216510 (35)330491(33)
Total net revenue2,0111,7621,7831,8141,84714 9 5,5565,561— 
Provision (benefit) for credit losses(43)876860335203****1,693603181 
Non-interest expense1,0111,0369911,110985(2)3 3,0382,9812 
Income (loss) from continuing operations before income taxes1,043(150)(68)369659**58 8251,977(58)
Income tax provision (benefit)247(36)(16)86154**60 195461(58)
Income (loss) from continuing operations, net of tax$796$(114)$(52)$283$505**58 $630$1,516(58)
Selected performance metrics:
Period-end loans held for investment$68,688$66,712$64,033$63,065$62,0153 11 $68,688$62,01511 
Average loans held for investment67,82264,85163,67162,59661,2695 11 65,45760,0729 
Average yield on loans held for investment(8)
8.36 %8.41 %8.46 %8.51 %8.47 %(5)bps(11)bps8.41 %8.33 %8 bps
Auto loan originations$8,979$8,292$7,640$7,527$8,1758 %10 %$24,910$21,72315 %
Period-end deposits249,684246,804217,607213,099206,4231 21 249,684206,42321 
Average deposits248,418232,293215,071209,783204,9337 21 231,988203,40414 
Average deposits interest rate0.66 %0.89 %1.06 %1.20 %1.31 %(23)bps(65)bps0.86 %1.25 %(39)bps
Net charge-off rate0.28 1.19 1.54 1.93 1.64 (91)(136)0.99 1.43 (44)
30+ day performing delinquency rate3.62 3.16 5.12 6.63 6.23 46 (261)3.62 6.23 (261)
30+ day delinquency rate3.90 3.48 5.65 7.34 6.86 42 (296)3.90 6.86 (296)
Nonperforming loan rate(3)
0.38 0.43 0.63 0.81 0.74 (5)(36)0.38 0.74 (36)
Nonperforming asset rate(4)
0.43 0.46 0.71 0.91 0.83 (3)(40)0.43 0.83 (40)
Auto—At origination FICO scores:(12)
Greater than 66046 %46 %47 %48 %48 %— (2)%46 %48 %(2)%
621 - 66020 20 20 20 20 — — 20 20 — 
620 or below34 34 33 32 32 — 2 34 32 2 
Total100 %100 %100 %100 %100 %100 %100 %
17

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12: Financial & Statistical Summary—Commercial Banking Business
2020 Q3 vs.Nine Months Ended September 30,
20202020202020192019202020192020 vs.
(Dollars in millions, except as noted) Q3Q2Q1Q4Q3Q2Q3202020192019
Commercial Banking
Earnings:
Net interest income $517$518$491$494$486— 6 %$1,526$1,4892 %
Non-interest income23718023822322132 %7 6556088 
Total net revenue(6)
7546987297177078 7 2,1812,0974 
Provision (benefit) for credit losses(74)4278566293****1,209244**
Non-interest expense424425412441414— 2 1,2611,258— 
Income (loss) from continuing operations before income taxes404(154)(539)214200**102 (289)595**
Income tax provision (benefit)95(36)(128)5046**107 (69)138**
Income (loss) from continuing operations, net of tax$309$(118)$(411)$164$154**101 $(220)$457**
Selected performance metrics:
Period-end loans held for investment$75,894$77,490$81,160$74,508$73,659(2)3 $75,894$73,6593 
Average loans held for investment76,32279,75976,44274,18972,507(4)5 77,50371,9858 
Average yield on loans held for investment(6)(8)
2.82%3.00 %3.88 %4.22 %4.45 %(18)bps(163)bps3.23%4.61 %(138)bps
Period-end deposits$36,783$35,669$32,822$32,134$30,9233 %19 %$36,783$30,92319 %
Average deposits36,27834,63532,23832,03430,6935 18 34,39130,95711 
Average deposits interest rate0.25 %0.30 %0.89 %1.10 %1.25 %(5)bps(100)bps0.47 %1.21 %(74)bps
Net charge-off rate0.43 0.51 0.57 0.35 0.33 (8)10 0.50 0.17 33 
Nonperforming loan rate(3)
1.01 0.85 0.61 0.60 0.61 16 40 1.01 0.61 40 
Nonperforming asset rate(4)
1.01 0.85 0.61 0.60 0.61 16 40 1.01 0.61 40 
Risk category:(13)
Noncriticized$68,533$70,881$77,714$71,848$71,144(3)%(4)%$68,533$71,144(4)%
Criticized performing6,5935,9492,9522,1812,03511 **6,5932,035**
Criticized nonperforming76866049444844916 71 76844971 
PCI loans———3131— **—31**
Total commercial banking loans$75,894$77,490$81,160$74,508$73,659(2)3 $75,894$73,6593 
Risk category as a percentage of period-end loans held for investment:(13)
Noncriticized90.3 %91.4 %95.8 %96.5 %96.6 %(110)bps(630)bps90.3 %96.6 %(630)bps
Criticized performing8.7 7.7 3.6 2.9 2.8 100 590 8.7 2.8 590 
Criticized nonperforming1.0 0.9 0.6 0.6 0.6 10 40 1.0 0.6 40 
Total commercial banking loans100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
18

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Financial & Statistical Summary—Other and Total
2020 Q3 vs.Nine Months Ended September 30,
20202020202020192019202020192020 vs.
(Dollars in millions)Q3Q2Q1Q4Q3Q2Q3202020192019
Other
Earnings:
Net interest income (loss)$(158)$(92)$175 $116 $23 72 %**$(75)$48 **
Non-interest income (loss)469 (26)(51)(44)(34)****392 (65)**
Total net revenue (loss)(6)
311 (118)124 72 (11)****317 (17)**
Provision (benefit) for credit losses(2)(1)5 — — 100**2 — **
Non-interest expense(14)(15)
110 340 118 123 113 (68)(3)%568 299 90 %
Income (loss) from continuing operations before income taxes203 (457)1 (51)(124)****(253)(316)(20)
Income tax provision (benefit)316 (305)(113)(78)(60)****(102)(275)(63)
Income (loss) from continuing operations, net of tax$(113)$(152)$114 $27 $(64)(26)77$(151)$(41)**
Selected performance metrics:
Period-end deposits$19,258 $21,765 $19,260 $17,464 $19,802 (12)(3)$19,258 $19,802 (3)
Average deposits20,820 21,416 17,344 18,223 19,456 (3)719,863 19,028 4
Total
Earnings:
Net interest income$5,555 $5,460 $6,025 $6,066 $5,737 2 %(3)%$17,040 $17,274 (1)%
Non-interest income1,826 1,096 1,224 1,361 1,222 67494,146 3,892 7
Total net revenue7,381 6,556 7,249 7,427 6,959 13621,186 21,166 —
Provision for credit losses331 4,246 5,423 1,818 1,383 (92)(76)10,000 4,418 126
Non-interest expense3,548 3,770 3,729 4,161 3,872 (6)(8)11,047 11,322 (2)
Income (loss) from continuing operations before income taxes3,502 (1,460)(1,903)1,448 1,704 **106139 5,426 (97)
Income tax provision (benefit)1,096 (543)(563)270 375 **192(10)1,071 **
Income (loss) from continuing operations, net of tax$2,406 $(917)$(1,340)$1,178 $1,329 **81$149 $4,355 (97)
Selected performance metrics:
Period-end loans held for investment$248,223 $251,512 $262,990 $265,809 $249,355 (1)—$248,223 $249,355 —
Average loans held for investment249,511 253,358 262,889 258,870 246,147 (2)1255,232 243,602 5
Period-end deposits305,725 304,238 269,689 262,697 257,148 —19305,725 257,148 19
Average deposits305,516 288,344 264,653 260,040 255,082 620286,242 253,389 13
19

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

(1)Concurrent with our adoption of the CECL standard in the first quarter of 2020, we reclassified our finance charge and fee reserve to our allowance for credit losses, with a corresponding increase to credit card loans held for investment.
(2)Metrics for Q3 2020, Q2 2020 and Q1 2020 include the impact of COVID-19 customer assistance programs where applicable.
(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, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.
(5)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)We reclassified $2.1 billion in partnership loans to held for sale as of September 30, 2020.
(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.
(15)Includes net Cybersecurity Incident expenses of $6 million in Q3 2020, $11 million in Q2 2020, $4 million in Q1 2020, $16 million in Q4 2019 and $22 million in Q3 2019, respectively.
**    Not meaningful.
20

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1)
Basel III Standardized Approach
(Dollars in millions, except as noted) September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Regulatory Capital Metrics
Common equity excluding AOCI$52,839 $50,614 $51,018 $52,001 $51,959 
Adjustments:
AOCI, net of tax(2)
(122)(145)(170)1,156 453 
Goodwill, net of related deferred tax liabilities(14,448)(14,449)(14,453)(14,465)(14,439)
Intangible assets, net of related deferred tax liabilities(95)(135)(151)(170)(180)
Other(2)
— — — (360)(588)
Common equity Tier 1 capital$38,174 $35,885 $36,244 $38,162 $37,205 
Tier 1 capital$43,505 $41,094 $41,453 $43,015 $43,028 
Total capital(3)
50,954 48,508 48,775 50,350 50,174 
Risk-weighted assets293,790 290,222 302,871 313,155 298,130 
Adjusted average assets(4)
409,602 398,062 377,360 368,511 360,266 
Capital Ratios
Common equity Tier 1 capital(5)
13.0 %12.4 %12.0 %12.2 %12.5 %
Tier 1 capital(6)
14.8 14.2 13.7 13.7 14.4 
Total capital(7)
17.3 16.7 16.1 16.1 16.8 
Tier 1 leverage(4)
10.6 10.3 11.0 11.7 11.9 
Tangible common equity (“TCE”)(8)
9.4 8.8 9.6 10.2 10.3 

21

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.
202020202020Nine Months Ended
Q3Q2Q1September 30, 2020
(Dollars in millions, except per share data and as noted)Reported Results
Adj.(9)
Adjusted ResultsReported Results
Adj.(9)
Adjusted ResultsReported Results
Adj.(9)
Adjusted ResultsReported Results
Adj.(9)
Adjusted Results
Selected income statement data:
Net interest income$5,555 $(18)$5,537 $5,460 — $5,460 $6,025 — $6,025 $17,040 $(18)$17,022 
Non-interest income1,826 (18)1,808 1,096 — 1,096 1,224 — 1,224 4,146 (18)4,128 
Total net revenue7,381 (36)7,345 6,556 — 6,556 7,249 — 7,249 21,186 (36)21,150 
Provision for credit losses331 — 331 4,246 — 4,246 5,423 — 5,423 10,000 — 10,000 
Non-interest expense3,548 (46)3,502 3,770 $(276)3,494 3,729 $(49)3,680 11,047 (371)10,676 
Income (loss) from continuing operations before income taxes3,502 10 3,512 (1,460)276 (1,184)(1,903)49 (1,854)139 335 474 
Income tax provision (benefit)1,096 12 1,108 (543)3 (540)(563)12 (551)(10)27 17 
Income (loss) from continuing operations, net of tax2,406 (2)2,404 (917)273 (644)(1,340)37 (1,303)149 308 457 
Income (loss) from discontinued operations, net of tax— — — (1)— (1)— — — (1)— (1)
Net income (loss)2,406 (2)2,404 (918)273 (645)(1,340)37 (1,303)148 308 456 
Dividends and undistributed earnings allocated to participating securities(10)
(20)— (20)(1)— (1)(3)— (3)(5)— (5)
Preferred stock dividends(67)— (67)(90)— (90)(55)— (55)(212)— (212)
Issuance cost for redeemed preferred stock— — — — — — (22)— (22)(22)— (22)
Net income (loss) available to common stockholders$2,319 $(2)$2,317 $(1,009)$273 $(736)$(1,420)$37 $(1,383)$(91)$308 $217 
Selected performance metrics:
Diluted EPS(10)
$5.06 $(0.01)$5.05 $(2.21)$0.60 $(1.61)$(3.10)$0.08 $(3.02)$(0.20)$0.67 $0.47 
Efficiency ratio48.07 %(39)bps47.68 %57.50 %(421)bps53.29 %51.44 %(67)bps50.77 %52.14 %(166)bps50.48 %
Operating efficiency ratio44.24 (41)43.83 53.34 (421)49.13 44.67 (68)43.99 47.20 (167)45.53 
22

201920192019Nine Months Ended
Q3Q2Q1September 30, 2019
(Dollars in millions, except per share data and as noted)Reported Results
Adj.(9)
Adjusted ResultsReported Results
Adj.(9)
Adjusted ResultsReported Results
Adj.(9)
Adjusted ResultsReported Results
Adj.(9)
Adjusted Results
Selected income statement data:
Net interest income$5,737 $67$5,804 $5,746 —$5,746 $5,791 —$5,791 $17,274 $67$17,341 
Non-interest income1,222 731,295 1,378 $11,379 1,292 —1,292 3,892 743,966 
Total net revenue6,959 1407,099 7,124 17,125 7,083 —7,083 21,166 14121,307 
Provision for credit losses1,383 —1,383 1,342 —1,342 1,693 —1,693 4,418 —4,418 
Non-interest expense3,872 (178)3,694 3,779 (81)3,698 3,671 $(25)3,646 11,322 (284)11,038 
Income from continuing operations before income taxes1,704 3182,022 2,003 822,085 1,719 251,744 5,426 4255,851 
Income tax provision375 21396 387 19406 309 6315 1,071 461,117 
Income from continuing operations, net of tax1,329 2971,626 1,616 631,679 1,410 191,429 4,355 3794,734 
Income from discontinued operations, net of tax4 —4 9 —9 2 —2 15 —15 
Net income1,333 2971,630 1,625 631,688 1,412 191,431 4,370 3794,749 
Dividends and undistributed earnings allocated to participating securities(10)
(10)(2)(12)(12)(1)(13)(12)—(12)(34)(3)(37)
Preferred stock dividends(53)—(53)(80)—(80)(52)—(52)(185)—(185)
Net income available to common stockholders$1,270 $295$1,565 $1,533 $62$1,595 $1,348 $19$1,367 $4,151 $376$4,527 
Selected performance metrics:
Diluted EPS(10)
$2.69 $0.63$3.32 $3.24 $0.13$3.37 $2.86 $0.04$2.90 $8.79 $0.80$9.59 
Efficiency ratio55.64 %(360)bps52.04 %53.05 %(115)bps51.90 %51.83 %(35)bps51.48 %53.49 %(169)bps51.80 %
Operating efficiency ratio48.44 (346)44.98 45.38 (114)44.24 44.53 (35)44.18 46.10 (164)44.46 


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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.
20202020202020192019
(Dollars in millions)Q3Q2Q1Q4Q3
Tangible Common Equity (Period-End)
Stockholders’ equity$58,424 $56,045 $56,830 $58,011 $58,235 
Goodwill and intangible assets(11)
(14,825)(14,869)(14,888)(14,932)(14,940)
Noncumulative perpetual preferred stock(5,330)(5,209)(5,209)(4,853)(5,823)
Tangible common equity$38,269 $35,967 $36,733 $38,226 $37,472 
Tangible Common Equity (Average)
Stockholders’ equity$57,223 $57,623 $58,568 $58,148 $57,245 
Goodwill and intangible assets(11)
(14,867)(14,880)(14,930)(14,967)(14,908)
Noncumulative perpetual preferred stock(5,228)(5,209)(5,382)(5,506)(4,678)
Tangible common equity$37,128 $37,534 $38,256 $37,675 $37,659 
Tangible Assets (Period-End)
Total assets$421,883 $421,296 $396,878 $390,365 $378,810 
Goodwill and intangible assets(11)
(14,825)(14,869)(14,888)(14,932)(14,940)
Tangible assets$407,058 $406,427 $381,990 $375,433 $363,870 
Tangible Assets (Average)
Total assets$422,854 $411,075 $390,380 $383,162 $374,905 
Goodwill and intangible assets(11)
(14,867)(14,880)(14,930)(14,967)(14,908)
Tangible assets$407,987 $396,195 $375,450 $368,195 $359,997 
__________
(1)Regulatory capital metrics and capital ratios as of September 30, 2020 are preliminary and therefore subject to change.
(2)In the first quarter of 2020, we elected to exclude from our regulatory capital ratios certain components of AOCI as permitted under the Tailoring Rules. As such, we revised our presentation herein to only include those components of AOCI that impact our regulatory capital ratios.
(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.
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(9)The adjustments for the following periods consist of:
202020202020Nine Months Ended201920192019Nine Months Ended
(Dollars in millions) Q3Q2Q1September 30, 2020Q3Q2Q1September 30, 2019
Legal reserve builds$40 $265 $45 $350 — — — — 
U.K. Payment Protection Insurance customer refund reserve (“U.K. PPI Reserve”)(36)— — (36)$212 — — $212 
Cybersecurity Incident expenses, net of insurance6 11 4 21 22 — — 22 
Walmart launch and related integration expenses — — — — 84 $54 $25 163 
Restructuring charges— — — — — 28 — 28 
Total
10 276 49 335 318 82 25 425 
Income tax provision
12 3 12 27 21 19 6 46 
Net income (loss)$(2)$273 $37 $308 $297 $63 $19 $379 

(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.

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