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Capital One Reports First Quarter 2022 Net Income of $2.4 billion, or $5.62 per share

MCLEAN, Va., April 26, 2022 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2022 of $2.4 billion, or $5.62 per diluted common share, compared with net income of $2.4 billion, or $5.41 per diluted common share in the fourth quarter of 2021, and with net income of $3.3 billion, or $7.03 per diluted common share in the first quarter of 2021.

"We continued to deliver strong growth across our businesses in the first quarter," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "We remain well-positioned to capitalize on opportunities that emerge as sweeping digital change and modern technology transform banking."

The quarter included the following notable item:

(Dollars in millions, except per share data)

Pre-Tax

Impact

Diluted EPS

Impact



Gain on sale of partnership card portfolios

$                   192

$                   0.35


All comparisons below are for the first quarter of 2022 compared with the fourth quarter of 2021 unless otherwise noted.

First Quarter 2022 Income Statement Summary:

  • Total net revenue increased 1 percent to $8.2 billion.
  • Total non-interest expense decreased 3 percent to $4.6 billion:
    • 8 percent decrease in marketing.
    • 1 percent decrease in operating expenses.
  • Pre-provision earnings increased 5 percent to $3.6 billion.(1)
  • Provision for credit losses increased $296 million to $677 million:
    • Net charge-offs of $767 million.
    • $119 million loan reserve release.
  • Net interest margin of 6.49 percent, a decrease of 11 basis points.
  • Efficiency ratio of 55.68 percent.
  • Operating efficiency ratio of 44.45 percent.

First Quarter 2022 Balance Sheet Summary:

  • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.7 percent at March 31, 2022.
  • Period-end loans held for investment in the quarter increased $3.1 billion, or 1 percent, to $280.5 billion.
    • Credit Card period-end loans decreased $810 million, or 1 percent, to $114.0 billion.
      • Domestic Card period-end loans decreased $736 million, or 1 percent, to $108.0 billion.
    • Consumer Banking period-end loans increased $2.7 billion, or 3 percent, to $80.3 billion.
      • Auto period-end loans increased $2.8 billion, or 4 percent, to $78.6 billion.
    • Commercial Banking period-end loans increased $1.3 billion, or 1 percent, to $86.2 billion.
  • Average loans held for investment in the quarter increased $8.2 billion, or 3 percent, to $275.3 billion.
    • Credit Card average loans increased $2.9 billion, or 3 percent, to $111.5 billion.
      • Domestic Card average loans increased $2.8 billion, or 3 percent, to $105.5 billion.
    • Consumer Banking average loans increased $1.2 billion, or 2 percent, to $78.7 billion.
      • Auto average loans increased $1.6 billion, or 2 percent, to $76.9 billion.
    • Commercial Banking average loans increased $4.0 billion, or 5 percent, to $85.2 billion.
  • Period-end total deposits increased $2.4 billion, or 1 percent, to $313.4 billion, while average deposits increased $2.3 billion, or 1 percent, to $309.6 billion.
  • Interest-bearing deposits rate paid decreased 1 basis point to 0.32 percent.

(1)

Pre-provision earnings is calculated based on the sum of net interest income and non-interest income, less non-interest expense for the period. Management believes that this financial metric is useful in enabling investors and others to assess the Company's ability to generate income to cover credit losses through a credit cycle, which can vary significantly between periods.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 26, 2022 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 May 10, 2022 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, 2021.

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 $313.4 billion in deposits and $434.2 billion in total assets as of March 31, 2022. 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)

First Quarter 2022

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 Credit 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 Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—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 March 31, 2022 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













2022 Q1 vs.

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


2022

Q1


2021

Q4


2021

Q3


2021

Q2


2021

Q1


2021

Q4


2021

Q1

Income Statement















Net interest income


$      6,397


$     6,450


$      6,156


$      5,743


$      5,822


(1)%


10%

Non-interest income


1,776


1,668


1,674


1,631


1,291


6


38

Total net revenue(1)


8,173


8,118


7,830


7,374


7,113


1


15

Provision (benefit) for credit losses


677


381


(342)


(1,160)


(823)


78


**

Non-interest expense:















Marketing


918


999


751


620


501


(8)


83

Operating expense


3,633


3,679


3,435


3,346


3,239


(1)


12

Total non-interest expense


4,551


4,678


4,186


3,966


3,740


(3)


22

Income from continuing operations before income taxes


2,945


3,059


3,986


4,568


4,196


(4)


(30)

Income tax provision


542


633


882


1,031


869


(14)


(38)

Income from continuing operations, net of tax


2,403


2,426


3,104


3,537


3,327


(1)


(28)

Loss from discontinued operations, net of tax



(1)



(1)


(2)


**


**

Net income


2,403


2,425


3,104


3,536


3,325


(1)


(28)

Dividends and undistributed earnings allocated to participating securities(2)


(28)


(21)


(26)


(30)


(28)


33


Preferred stock dividends


(57)


(74)


(79)


(60)


(61)


(23)


(7)

Issuance cost for redeemed preferred stock(3)



(34)


(12)




**


Net income available to common stockholders


$      2,318


$     2,296


$      2,987


$      3,446


$     3,236


1


(28)

Common Share Statistics















Basic earnings per common share:(2)















Net income from continuing operations


$        5.65


$       5.43


$        6.81


$        7.65


$       7.06


4%


(20)%

Net income per basic common share


$        5.65


$       5.43


$        6.81


$        7.65


$       7.06


4


(20)

Diluted earnings per common share:(2)















Net income from continuing operations


$        5.62


$       5.41


$        6.78


$        7.62


$       7.03


4%


(20)%

Net income per diluted common share


$        5.62


$       5.41


$        6.78


$        7.62


$       7.03


4


(20)

Weighted-average common shares outstanding (in millions):















Basic


410.4


422.5


438.8


450.6


458.6


(3)%


(11)%

Diluted


412.2


424.3


440.5


452.3


460.1


(3)


(10)

Common shares outstanding (period-end, in millions)


399.0


413.9


430.4


446.1


456.8


(4)


(13)

Dividends declared and paid per common share


$        0.60


$       0.60


$        1.20


$        0.40


$       0.40



50

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


91.77


99.74


99.60


97.20


90.96


(8)


1







































2022 Q1 vs.



2022

Q1


2021

Q4


2021

Q3


2021

Q2


2021

Q1


2021

Q4


2021

Q1

(Dollars in millions)








Balance Sheet (Period-End)















Loans held for investment


$  280,466


$  277,340


$  261,390


$  249,597


$  243,131


1%


15%

Interest-earning assets


398,241


397,341


387,208


387,295


392,485



1

Total assets


434,195


432,381


425,377


423,420


425,175



2

Interest-bearing deposits


275,648


272,937


269,134


271,314


276,325


1


Total deposits


313,429


310,980


305,938


306,308


310,328


1


1

Borrowings


45,358


43,086


37,501


36,343


38,450


5


18

Common equity


51,499


56,184


57,632


58,136


56,341


(8)


(9)

Total stockholders' equity


56,345


61,029


63,544


64,624


61,188


(8)


(8)

Balance Sheet (Average Balances)















Loans held for investment


$  275,342


$  267,159


$  253,101


$  246,463


$  243,937


3%


13%

Interest-earning assets


394,082


390,868


387,766


390,129


388,572


1


1

Total assets


430,372


427,845


424,506


424,099


421,808


1


2

Interest-bearing deposits


271,823


269,951


269,278


273,476


273,358


1


(1)

Total deposits


309,597


307,272


305,035


308,217


305,056


1


1

Borrowings


42,277


39,943


37,464


37,054


39,911


6


6

Common equity


54,591


56,946


58,230


56,885


55,775


(4)


(2)

Total stockholders' equity


59,437


62,498


64,682


62,376


60,623


(5)


(2)

        

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated


2022 Q1 vs.

(Dollars in millions, except as noted)


2022

Q1


2021

Q4


2021

Q3


2021

Q2


2021

Q1


2021

Q4


2021

Q1








Performance Metrics















Net interest income growth (period over period)


(1)%


5%


7%


(1)%


(1)%


**


**

Non-interest income growth (period over period)


6



3


26


(12)


**


**

Total net revenue growth (period over period)


1


4


6


4


(3)


**


**

Total net revenue margin(5)


8.30


8.31


8.08


7.56


7.32


(1) bps


98 bps

Net interest margin(6)


6.49


6.60


6.35


5.89


5.99


(11)


50

Return on average assets


2.23


2.27


2.92


3.34


3.16


(4)


(93)

Return on average tangible assets(7)


2.31


2.35


3.03


3.46


3.27


(4)


(96)

Return on average common equity(8)


16.98


16.13


20.52


24.24


23.22


85


(6)%

Return on average tangible common equity(9)


23.36


21.82


27.50


32.75


31.61


154


(8)

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


6.61


7.00


6.62


6.44


6.13


(39)


48 bps

Efficiency ratio(10)


55.68


57.63


53.46


53.78


52.58


(195)


310

Operating efficiency ratio(11)


44.45


45.32


43.87


45.38


45.54


(87)


(109)

Effective income tax rate for continuing operations


18.4


20.7


22.1


22.6


20.7


(230)


(230)

Employees (period-end, in thousands)


51.5


50.8


50.8


52.0


51.7


1%


—%

Credit Quality Metrics















Allowance for credit losses


$  11,308


$   11,430


$   11,573


$   12,346


$   14,017


(1)%


(19)%

Allowance coverage ratio


4.03%


4.12%


4.43%


4.95%


5.77%


(9) bps


(174) bps

Net charge-offs


$       767


$        527


$        426


$        541


$        740


46%


4%

Net charge-off rate(12)


1.11%


0.79%


0.67%


0.88%


1.21%


32 bps


(10) bps

30+ day performing delinquency rate


2.08


2.25


1.97


1.75


1.82


(17)


26

30+ day delinquency rate


2.21


2.41


2.13


1.89


1.98


(20)


23

Capital Ratios(13)















Common equity Tier 1 capital 


12.7%


13.1%


13.8%


14.5%


14.6%


(40) bps


(190) bps

Tier 1 capital


14.1


14.5


15.7


16.6


16.2


(40)


(210)

Total capital


16.4


16.9


18.2


18.8


18.6


(50)


(220)

Tier 1 leverage


11.3


11.6


12.2


12.4


11.7


(30)


(40)

Tangible common equity ("TCE")(14)


8.7


9.9


10.4


10.6


10.1


(120)


(140)

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income













2022 Q1 vs.



2022

Q1


2021

Q4


2021

Q3


2021

Q2


2021

Q1


2021

Q4


2021

Q1

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








Interest income:















Loans, including loans held for sale


$      6,367


$      6,451


$      6,205


$      5,753


$      5,854


(1)%


9%

Investment securities


402


368


317


370


391


9


3

Other


15


12


16


16


16


25


(6)

Total interest income


6,784


6,831


6,538


6,139


6,261


(1)


8

Interest expense:















Deposits


218


222


228


237


269


(2)


(19)

Securitized debt obligations


29


30


29


28


32


(3)


(9)

Senior and subordinated notes


131


121


116


122


129


8


2

Other borrowings


9


8


9


9


9


13


Total interest expense


387


381


382


396


439


2


(12)

Net interest income


6,397


6,450


6,156


5,743


5,822


(1)


10

Provision (benefit) for credit losses


677


381


(342)


(1,160)


(823)


78


**

Net interest income after provision for credit losses


5,720


6,069


6,498


6,903


6,645


(6)


(14)

Non-interest income:















Interchange fees, net


1,033


1,005


1,022


1,016


817


3


26

Service charges and other customer-related fees


400


435


407


384


352


(8)


14

Other


343


228


245


231


122


50


181

Total non-interest income


1,776


1,668


1,674


1,631


1,291


6


38

Non-interest expense:















Salaries and associate benefits


2,026


1,941


1,852


1,781


1,847


4


10

Occupancy and equipment


513


527


481


523


472


(3)


9

Marketing


918


999


751


620


501


(8)


83

Professional services


397


449


358


341


292


(12)


36

Communications and data processing


339


326


319


315


302


4


12

Amortization of intangibles


14


13


5


5


6


8


133

Other


344


423


420


381


320


(19)


8

Total non-interest expense


4,551


4,678


4,186


3,966


3,740


(3)


22

Income from continuing operations before income taxes


2,945


3,059


3,986


4,568


4,196


(4)


(30)

Income tax provision


542


633


882


1,031


869


(14)


(38)

Income from continuing operations, net of tax


2,403


2,426


3,104


3,537


3,327


(1)


(28)

Loss from discontinued operations, net of tax



(1)



(1)


(2)


**


**

Net income


2,403


2,425


3,104


3,536


3,325


(1)


(28)

Dividends and undistributed earnings allocated to participating securities(2)


(28)


(21)


(26)


(30)


(28)


33


Preferred stock dividends


(57)


(74)


(79)


(60)


(61)


(23)


(7)

Issuance cost for redeemed preferred stock(3)



(34)


(12)




**


Net income available to common stockholders


$      2,318


$      2,296


$      2,987


$      3,446


$      3,236


1


(28)











































2022 Q1 vs.



2022

Q1


2021

Q4


2021

Q3


2021

Q2


2021

Q1


2021

Q4


2021

Q1

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








Basic earnings per common share:(2)















Net income from continuing operations


$        5.65


$        5.43


$        6.81


$        7.65


$        7.06


4%


(20)%

Net income per basic common share


$        5.65


$        5.43


$        6.81


$        7.65


$        7.06


4


(20)

Diluted earnings per common share:(2)















Net income from continuing operations


$        5.62


$        5.41


$        6.78


$        7.62


$        7.03


4


(20)

Net income per diluted common share


$        5.62


$        5.41


$        6.78


$        7.62


$        7.03


4


(20)

Weighted-average common shares outstanding (in millions):















Basic common shares


410.4


422.5


438.8


450.6


458.6


(3)


(11)

Diluted common shares


412.2


424.3


440.5


452.3


460.1


(3)


(10)

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets













2022 Q1 vs.



2022

Q1


2021

Q4


2021

Q3


2021

Q2


2021

Q1


2021

Q4


2021

Q1

(Dollars in millions)








Assets:















Cash and cash equivalents:















Cash and due from banks


$     5,107


$     4,164


$     5,444


$     5,312


$     4,670


23%


9%

Interest-bearing deposits and other short-term investments


21,697


17,582


21,180


29,534


45,825


23


(53)

Total cash and cash equivalents


26,804


21,746


26,624


34,846


50,495


23


(47)

Restricted cash for securitization investors


281


308


234


242


1,779


(9)


(84)

Securities available for sale


89,076


95,261


98,149


101,766


99,165


(6)


(10)

Loans held for investment:















Unsecuritized loans held for investment


257,505


252,468


238,475


226,130


219,182


2


17

Loans held in consolidated trusts


22,961


24,872


22,915


23,467


23,949


(8)


(4)

Total loans held for investment


280,466


277,340


261,390


249,597


243,131


1


15

Allowance for credit losses


(11,308)


(11,430)


(11,573)


(12,346)


(14,017)


(1)


(19)

Net loans held for investment


269,158


265,910


249,817


237,251


229,114


1


17

Loans held for sale


1,155


5,888


6,300


6,522


2,896


(80)


(60)

Premises and equipment, net


4,238


4,210


4,204


4,227


4,277


1


(1)

Interest receivable


1,479


1,460


1,418


1,372


1,380


1


7

Goodwill


14,784


14,782


14,652


14,654


14,654



1

Other assets


27,220


22,816


23,979


22,540


21,415


19


27

Total assets


$ 434,195


$ 432,381


$ 425,377


$ 423,420


$ 425,175



2




























2022 Q1 vs.



2022

Q1


2021

Q4


2021

Q3


2021

Q2


2021

Q1


2021

Q4


2021

Q1

(Dollars in millions)








Liabilities:















Interest payable


$        261


$        281


$        241


$        301


$        288


(7)%


(9)%

Deposits:















Non-interest-bearing deposits


37,781


38,043


36,804


34,994


34,003


(1)


11

Interest-bearing deposits


275,648


272,937


269,134


271,314


276,325


1


Total deposits


313,429


310,980


305,938


306,308


310,328


1


1

Securitized debt obligations


13,740


14,994


12,635


10,561


12,071


(8)


14

Other debt:















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


594


820


825


845


842


(28)


(29)

Senior and subordinated notes


26,976


27,219


23,983


24,878


25,467


(1)


6

Other borrowings


4,048


53


58


59


70


**


**

Total other debt


31,618


28,092


24,866


25,782


26,379


13


20

Other liabilities


18,802


17,005


18,153


15,844


14,921


11


26

Total liabilities


377,850


371,352


361,833


358,796


363,987


2


4
















Stockholders' equity:















Preferred stock


0


0


0


0


0



Common stock


7


7


7


7


7



Additional paid-in capital, net


34,286


34,112


35,051


35,472


33,671


1


2

Retained earnings


53,099


51,006


48,944


46,461


43,167


4


23

Accumulated other comprehensive income (loss)


(4,093)


374


1,360


1,792


1,783


**


**

Treasury stock, at cost


(26,954)


(24,470)


(21,818)


(19,108)


(17,440)


10


55

Total stockholders' equity


56,345


61,029


63,544


64,624


61,188


(8)


(8)

Total liabilities and stockholders' equity


$ 434,195


$ 432,381


$ 425,377


$ 423,420


$ 425,175



2

 


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 $192 million in Q1 2022, $151 million in Q4 2021, $123 million in Q3 2021, $175 million in Q2 2021 and $180 million in Q1

2021 for credit card finance charges and fees charged-off as uncollectible.

(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 September 1, 2021, we redeemed all outstanding shares of our fixed-to-floating rate non-cumulative perpetual preferred stock Series E, which reduced our net

 income available to common shareholders by $12 million in Q3 2021. On December 1, 2021, we redeemed all outstanding shares of our fixed rate 5.20% non-

cumulative perpetual preferred stock Series G, and our fixed rate 6.00% non-cumulative perpetual preferred stock Series H, which together reduced our net income

available to common shareholders by $34 million in Q4 2021.

(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 annualized net income (loss) available to common stockholders less annualized 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 annualized net income (loss) available to common

stockholders less annualized 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)

Capital ratios as of the end of Q1 2022 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.

(14)

TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 15: Calculation of Regulatory Capital Measures and

Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.

** 

Not meaningful.


 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



2022 Q1


2021 Q4


2021 Q1

(Dollars in millions, except as noted)


Average
Balance


Interest
Income/
Expense


Yield/Rate


Average
Balance


Interest
Income/
Expense


Yield/Rate


Average
Balance


Interest
Income/
Expense


Yield/Rate

Interest-earning assets:



















Loans, including loans held for sale


$   279,022


$      6,367


9.13%


$   272,805


$      6,451


9.46%


$   246,675


$      5,854


9.49%

Investment securities


94,700


402


1.70


96,421


368


1.53


98,296


391


1.59

Cash equivalents and other


20,360


15


0.29


21,642


12


0.22


43,601


16


0.15

Total interest-earning assets


$   394,082


$      6,784


6.89


$   390,868


$      6,831


6.99


$   388,572


$      6,261


6.45

Interest-bearing liabilities:



















Interest-bearing deposits


$   271,823


$         218


0.32


$   269,951


$         222


0.33


$   273,358


$         269


0.39

Securitized debt obligations


13,740


29


0.84


13,775


30


0.87


12,240


32


1.05

Senior and subordinated notes


26,481


131


1.98


25,454


121


1.90


26,968


129


1.91

Other borrowings and liabilities


3,633


9


1.00


2,279


8


1.50


2,210


9


1.62

Total interest-bearing liabilities


$   315,677


$         387


0.49


$   311,459


$         381


0.49


$   314,776


$         439


0.56

Net interest income/spread




$      6,397


6.40




$      6,450


6.50




$      5,822


5.89

Impact of non-interest-bearing funding






0.09






0.10






0.10

Net interest margin






6.49%






6.60%






5.99%

       

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics













2022 Q1 vs.



2022

Q1


2021

Q4


2021

Q3


2021

Q2


2021

Q1


2021

Q4


2021

Q1

(Dollars in millions, except as noted)








Loans Held for Investment (Period-End)















Credit card:















   Domestic credit card


$   107,987


$   108,723


$     99,258


$     95,309


$     91,099


(1)%


19%

   International card businesses


5,975


6,049


5,772


5,708


8,028


(1)


(26)

Total credit card


113,962


114,772


105,030


101,017


99,127


(1)


15

Consumer banking:















   Auto


78,604


75,779


74,716


71,713


67,059


4


17

   Retail banking


1,726


1,867


2,396


3,046


3,143


(8)


(45)

Total consumer banking


80,330


77,646


77,112


74,759


70,202


3


14

Commercial banking:















   Commercial and multifamily real estate


34,354


35,262


33,096


29,616


30,008


(3)


14

   Commercial and industrial


51,820


49,660


46,152


44,205


43,794


4


18

Total commercial banking


86,174


84,922


79,248


73,821


73,802


1


17

Total loans held for investment


$   280,466


$   277,340


$   261,390


$   249,597


$   243,131


1


15

Loans Held for Investment (Average)















Credit card:















   Domestic credit card


$   105,536


$   102,717


$     96,309


$     91,535


$     92,594


3%


14%

   International card businesses


5,944


5,871


5,737


8,139


7,940


1


(25)

Total credit card


111,480


108,588


102,046


99,674


100,534


3


11

Consumer banking:















   Auto