SEC Filing | Capital One Financial Corp.

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cof-20240425

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

April 25, 2024

Date of Report (Date of earliest event reported)

____________________________________

CAPITAL ONE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

____________________________________


Delaware		001-13300	54-1719854
(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 Class	Trading 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 I	COF 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 J	COF 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 K	COF PRK	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series L	COF PRL	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N	COF PRN	New York Stock Exchange
0.800% Senior Notes Due 2024	COF24	New York Stock Exchange
1.650% Senior Notes Due 2029	COF29	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 April 25, 2024, Capital One Financial Corporation (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2024. 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.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.						Description
99.1						Press Release, dated April 25 , 2024 - First Quarter 2024
99.2						Financial Supplement - First Quarter 2024
104						The 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 April 25, 2024 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 May 9, 2024 at 5:00 PM Eastern Time.

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: April 25, 2024

By:

/s/ TIMOTHY P. GOLDEN

Timothy P. Golden

SVP, Controller and Principal Accounting Officer

Document

Exhibit 99.1

News Release

https://cdn.kscope.io/a5d47f59a2d2dd14429fc41576776424-earningsslidesvfinal1b58aa.jpg


Contacts:
Investor Relations		Media Relations
Jeff Norris	Danielle Dietz	Sie Soheili
jeff.norris@capitalone.com	danielle.dietz@capitalone.com	sie.soheili@capitalone.com

FOR IMMEDIATE RELEASE: April 25, 2024

Capital One Reports First Quarter 2024 Net Income of $1.3 billion,
or $3.13 per share

Net of adjusting items, First Quarter 2024 Net Income of $3.21 per share(1)

McLean, Va. (April 25, 2024) – Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2024 of $1.3 billion, or $3.13 per diluted common share, compared with net income of $706 million, or $1.67 per diluted common share in the fourth quarter of 2023, and with net income of $960 million, or $2.31 per diluted common share in the first quarter of 2023. Adjusted net income(1) for the first quarter of 2024 was $3.21 per diluted common share.

“First quarter results continue to show top-line growth, stabilizing consumer credit, and balance sheet strength,” said Richard Fairbank, Founder, Chairman, and Chief Executive Officer “And in the quarter, we announced our definitive agreement to acquire Discover. The acquisition of Discover is a singular opportunity that creates a consumer banking and global payments platform with the capabilities, technology, brands, and customer franchise to create significant value for merchants, consumers, small businesses and shareholders."

The quarter included the following adjusting item:

(Dollars in millions, except per share data)

Pre-Tax
Impact

After-Tax Diluted EPS
Impact

FDIC special assessment

0.08

All comparisons below are for the first quarter of 2024 compared with the fourth quarter of 2023 unless otherwise noted.

First Quarter 2024 Income Statement Summary:

•Total net revenue decreased 1 percent to $9.4 billion.

•Total non-interest expense decreased 10 percent to $5.1 billion:

◦19 percent decrease in marketing.

◦8 percent decrease in operating expenses.

•Pre-provision earnings(2) increased 13 percent to $4.3 billion.

•Provision for credit losses decreased $174 million to $2.7 billion:

•Net charge-offs of $2.6 billion.

Capital One First Quarter 2024 Earnings

Page 2

•$91 million loan reserve build.

(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. 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.

Capital One First Quarter 2024 Earnings

Page 2

•Net interest margin of 6.69 percent, a decrease of 4 basis points.

•Efficiency ratio of 54.64 percent.

◦Adjusted efficiency ratio(1) of 54.19 percent.

•Operating efficiency ratio of 43.89 percent.

◦Adjusted operating efficiency ratio(1) of 43.45 percent.

First Quarter 2024 Balance Sheet Summary:

•Common equity Tier 1 capital ratio(3) under Basel III Standardized Approach of 13.1 percent at March 31, 2024.

•Period-end loans held for investment in the quarter decreased $5.3 billion, or 2 percent, to $315.2 billion.

◦Credit Card period-end loans decreased $4.0 billion, or 3 percent, to $150.6 billion.

•Domestic Card period-end loans decreased $3.8 billion, or 3 percent, to $143.9 billion.

◦Consumer Banking period-end loans decreased $338 million, or less than 1 percent, to $75.1 billion.

•Auto period-end loans decreased $274 million, or less than 1 percent, to $73.8 billion.

◦Commercial Banking period-end loans decreased $1.0 billion, or 1 percent, to $89.5 billion.

•Average loans held for investment in the quarter decreased $1.3 billion, or less than 1 percent, to $314.6 billion.

◦Credit Card average loans increased $1.0 billion, or 1 percent, to $149.6 billion.

•Domestic Card average loans increased $775 million, or 1 percent, to $142.9 billion.

◦Consumer Banking average loans decreased $1.1 billion, or 2 percent, to $75.1 billion.

•Auto average loans decreased $1.1 billion, or 1 percent, to $73.8 billion.

◦Commercial Banking average loans decreased $1.1 billion, or 1 percent, to $89.9 billion.

•Period-end total deposits increased $2.6 billion, or 1 percent, to $351.0 billion, while average deposits increased $329 million, or less than 1 percent, to $345.7 billion.

•Interest-bearing deposits rate paid increased 6 basis points to 3.53 percent.

Capital One First Quarter 2024 Earnings

Page 3

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 25, 2024 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 9, 2024 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. Forward-looking statements often use words such as “will,” “anticipate,” “target,” “expect,” “think,” “estimate,” “intend,” “plan,” “goal,” “believe,” “forecast,” “outlook” or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. 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. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under “Part I—Item 1A. Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $351.0 billion in deposits and $481.7 billion in total assets as of March 31, 2024. 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 and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia 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.

###

(1) This is a non-GAAP measure. We believe non-GAAP measures 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 our Financial Supplement, filed as Exhibit 99.2 to our Current Report on From 8-K on April 25, 2024 with the SEC, “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.

(2) Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on From 8-K on April 25, 2024 with the SEC, “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.

(3) Regulatory capital metrics as of March 31, 2024 are preliminary and therefore subject to change.

Document

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement(1)(2)

First Quarter 2024

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, 2024 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. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation of any non-GAAP financial measures.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated


											2024 Q1
(Dollars in millions, except per share data and as noted)	2024		2023		2023		2023		2023		2023		2023
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Income Statement
Net interest income	$	7,488	$	7,519	$	7,423	$	7,113	$	7,186	—		4	%
Non-interest income	1,914		1,987		1,943		1,899		1,717		(4)	%	11
Total net revenue(1)	9,402		9,506		9,366		9,012		8,903		(1)		6
Provision for credit losses	2,683		2,857		2,284		2,490		2,795		(6)		(4)
Non-interest expense:
Marketing	1,010		1,254		972		886		897		(19)		13
Operating expense	4,127		4,463		3,888		3,908		4,048		(8)		2
Total non-interest expense	5,137		5,717		4,860		4,794		4,945		(10)		4
Income from continuing operations before income taxes	1,582		932		2,222		1,728		1,163		70		36
Income tax provision	302		226		432		297		203		34		49


Net income	1,280		706		1,790		1,431		960		81		33
Dividends and undistributed earnings allocated to participating securities(2)	(23)		(10)		(28)		(23)		(16)		130		44
Preferred stock dividends	(57)		(57)		(57)		(57)		(57)		—		—

Net income available to common stockholders	$	1,200	$	639	$	1,705	$	1,351	$	887	88		35
Common Share Statistics
Basic earnings per common share:(2)


Net income per basic common share	$	3.14	$	1.67	$	4.46	$	3.53	$	2.32	88	%	35	%
Diluted earnings per common share:(2)


Net income per diluted common share	$	3.13	$	1.67	$	4.45	$	3.52	$	2.31	87	%	35	%
Weighted-average common shares outstanding (in millions):
Basic	382.2		381.9		382.5		382.8		382.6		—		—
Diluted	383.4		382.8		383.3		383.7		383.8		—		—
Common shares outstanding (period-end, in millions)	382.1		380.4		381.0		381.4		382.0		—		—
Dividends declared and paid per common share	$	0.60	$	0.60	$	0.60	$	0.60	$	0.60	—		—
Tangible book value per common share (period-end)(3)	98.67		99.78		87.97		90.07		90.86		(1)	%	9	%


											2024 Q1
(Dollars in millions)	2024		2023		2023		2023		2023		2023		2023
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Balance Sheet (Period-End)
Loans held for investment	$	315,154	$	320,472	$	314,780	$	311,323	$	308,836	(2)	%	2	%
Interest-earning assets	453,557		449,701		445,428		441,250		445,166		1		2
Total assets	481,720		478,464		471,435		467,800		471,660		1		2
Interest-bearing deposits	323,352		320,389		317,217		314,393		318,641		1		1
Total deposits	350,969		348,413		346,011		343,705		349,827		1		—
Borrowings	50,361		49,856		49,247		50,258		48,777		1		3
Common equity	52,955		53,244		48,823		49,713		49,807		(1)		6
Total stockholders’ equity	57,801		58,089		53,668		54,559		54,653		—		6
Balance Sheet (Average Balances)
Loans held for investment	$	314,614	$	315,890	$	312,759	$	309,655	$	307,756	—		2	%
Interest-earning assets	447,803		446,929		443,532		439,139		435,199		—		3
Total assets	474,995		472,594		469,860		466,652		462,324		1	%	3
Interest-bearing deposits	318,450		316,808		316,032		313,207		308,788		1		3
Total deposits	345,657		345,328		345,013		343,678		340,123		—		2
Borrowings	50,474		51,070		49,736		48,468		48,016		(1)		5
Common equity	53,152		50,786		50,166		50,511		49,927		5		6
Total stockholders’ equity	57,998		55,632		55,012		55,357		54,773		4		6

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated


																2024 Q1
(Dollars in millions, except as noted)	2024			2023			2023			2023			2023			2023		2023
	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Performance Metrics
Net interest income growth (period over period)	—			1		%	4		%	(1)		%	—			**		**
Non-interest income growth (period over period)	(4)		%	2			2			11			(7)		%	**		**
Total net revenue growth (period over period)	(1)			1			4			1			(2)			**		**
Total net revenue margin(4)	8.40			8.51			8.45			8.21			8.18			(11)	bps	22	bps
Net interest margin(5)	6.69			6.73			6.69			6.48			6.60			(4)		9
Return on average assets	1.08			0.60			1.52			1.23			0.83			48		25
Return on average tangible assets(6)	1.11			0.62			1.58			1.27			0.86			49		25
Return on average common equity(7)	9.03			5.03			13.59			10.70			7.11			400		192
Return on average tangible common equity(8)	12.67			7.20			19.59			15.30			10.15			547		252

Efficiency ratio(9)	54.64			60.14			51.89			53.20			55.54			(550)		(90)
Operating efficiency ratio(10)	43.89			46.95			41.51			43.36			45.47			(306)		(158)
Effective income tax rate for continuing operations	19.1			24.2			19.4			17.2			17.5			(510)		160
Employees (period-end, in thousands)	51.3			52.0			54.2			55.6			56.1			(1)%		(9)%
Credit Quality Metrics
Allowance for credit losses	$	15,380		$	15,296		$	14,955		$	14,646		$	14,318		1%		7%
Allowance coverage ratio	4.88		%	4.77		%	4.75		%	4.70		%	4.64		%	11	bps	24	bps
Net charge-offs	$	2,616		$	2,533		$	1,999		$	2,185		$	1,697		3%		54%
Net charge-off rate(11)	3.33		%	3.21		%	2.56		%	2.82		%	2.21		%	12	bps	112	bps
30+ day performing delinquency rate	3.40			3.71			3.42			3.08			2.88			(31)		52
30+ day delinquency rate	3.67			3.99			3.71			3.36			3.09			(32)		58
Capital Ratios(12)
Common equity Tier 1 capital	13.1		%	12.9		%	13.0		%	12.7		%	12.5		%	20	bps	60	bps
Tier 1 capital	14.4			14.2			14.3			14.0			13.9			20		50
Total capital	16.3			16.0			16.2			16.0			15.9			30		40
Tier 1 leverage	11.3			11.2			11.2			11.0			10.9			10		40
Tangible common equity (“TCE”)(13)	8.1			8.2			7.3			7.6			7.6			(10)		50

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income


											2024 Q1
(Dollars in millions, except as noted)	2024		2023		2023		2023		2023		2023		2023
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Interest income:
Loans, including loans held for sale	$	9,920	$	9,934	$	9,696	$	9,057	$	8,723	—		14	%
Investment securities	687		669		627		639		615		3	%	12
Other	570		542		550		470		416		5		37
Total interest income	11,177		11,145		10,873		10,166		9,754		—		15
Interest expense:
Deposits	2,812		2,745		2,611		2,277		1,856		2		52
Securitized debt obligations	261		263		249		236		211		(1)		24
Senior and subordinated notes	606		608		579		528		489		—		24
Other borrowings	10		10		11		12		12		—		(17)
Total interest expense	3,689		3,626		3,450		3,053		2,568		2		44
Net interest income	7,488		7,519		7,423		7,113		7,186		—		4
Provision for credit losses	2,683		2,857		2,284		2,490		2,795		(6)		(4)
Net interest income after provision for credit losses	4,805		4,662		5,139		4,623		4,391		3		9
Non-interest income:
Interchange fees, net	1,145		1,207		1,234		1,213		1,139		(5)		1
Service charges and other customer-related fees	462		424		453		411		379		9		22
Net securities gains (losses)	—		(34)		—		—		—		**		—
Other	307		390		256		275		199		(21)		54
Total non-interest income	1,914		1,987		1,943		1,899		1,717		(4)		11
Non-interest expense:
Salaries and associate benefits	2,478		2,284		2,274		2,317		2,427		8		2
Occupancy and equipment	554		628		518		506		508		(12)		9
Marketing	1,010		1,254		972		886		897		(19)		13
Professional services	262		359		295		290		324		(27)		(19)
Communications and data processing	351		345		344		344		350		2		—
Amortization of intangibles	19		22		24		22		14		(14)		36
Other	463		825		433		429		425		(44)		9
Total non-interest expense	5,137		5,717		4,860		4,794		4,945		(10)		4
Income from continuing operations before income taxes	1,582		932		2,222		1,728		1,163		70		36
Income tax provision	302		226		432		297		203		34		49


Net income	1,280		706		1,790		1,431		960		81		33
Dividends and undistributed earnings allocated to participating securities(2)	(23)		(10)		(28)		(23)		(16)		130		44
Preferred stock dividends	(57)		(57)		(57)		(57)		(57)		—		—

Net income available to common stockholders	$	1,200	$	639	$	1,705	$	1,351	$	887	88		35


											2024 Q1
	2024		2023		2023		2023		2023		2023		2023
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Basic earnings per common share:(2)


Net income per basic common share	$	3.14	$	1.67	$	4.46	$	3.53	$	2.32	88	%	35	%
Diluted earnings per common share:(2)


Net income per diluted common share	$	3.13	$	1.67	$	4.45	$	3.52	$	2.31	87	%	35	%
Weighted-average common shares outstanding (in millions):
Basic common shares	382.2		381.9		382.5		382.8		382.6		—		—
Diluted common shares	383.4		382.8		383.3		383.7		383.8		—		—

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets


											2024 Q1
	2024		2023		2023		2023		2023		2023		2023
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Assets:
Cash and cash equivalents:
Cash and due from banks	$	4,671	$	4,903	$	4,620	$	3,360	$	3,347	(5)	%	40	%
Interest-bearing deposits and other short-term investments	46,357		38,394		40,249		38,236		43,166		21		7
Total cash and cash equivalents	51,028		43,297		44,869		41,596		46,513		18		10
Restricted cash for securitization investors	474		458		435		452		460		3		3
Securities available for sale	78,398		79,117		74,837		78,412		81,925		(1)		(4)
Loans held for investment:
Unsecuritized loans held for investment	285,577		289,229		284,953		280,933		280,093		(1)		2
Loans held in consolidated trusts	29,577		31,243		29,827		30,390		28,743		(5)		3
Total loans held for investment	315,154		320,472		314,780		311,323		308,836		(2)		2
Allowance for credit losses	(15,380)		(15,296)		(14,955)		(14,646)		(14,318)		1		7
Net loans held for investment	299,774		305,176		299,825		296,677		294,518		(2)		2
Loans held for sale	1,631		854		742		1,211		363		91		**
Premises and equipment, net	4,366		4,375		4,378		4,359		4,365		—		—
Interest receivable	2,514		2,478		2,469		2,297		2,250		1		12
Goodwill	15,062		15,065		15,048		15,060		14,779		—		2
Other assets	28,473		27,644		28,832		27,736		26,487		3		7
Total assets	$	481,720	$	478,464	$	471,435	$	467,800	$	471,660	1		2


											2024 Q1
	2024		2023		2023		2023		2023		2023		2023
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Liabilities:
Interest payable	$	762	$	649	$	685	$	637	$	621	17	%	23	%
Deposits:
Non-interest-bearing deposits	27,617		28,024		28,794		29,312		31,186		(1)		(11)
Interest-bearing deposits	323,352		320,389		317,217		314,393		318,641		1		1
Total deposits	350,969		348,413		346,011		343,705		349,827		1		—
Securitized debt obligations	17,661		18,043		17,417		17,861		17,813		(2)		(1)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	568		538		522		649		542		6		5
Senior and subordinated notes	32,108		31,248		31,283		31,627		30,398		3		6
Other borrowings	24		27		25		121		24		(11)		—
Total other debt	32,700		31,813		31,830		32,397		30,964		3		6
Other liabilities	21,827		21,457		21,824		18,641		17,782		2		23
Total liabilities	423,919		420,375		417,767		413,241		417,007		1		2

Stockholders’ equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	35,808		35,541		35,334		35,163		34,952		1		2
Retained earnings	61,905		60,945		60,529		59,028		57,898		2		7
Accumulated other comprehensive loss	(9,534)		(8,268)		(12,224)		(9,818)		(8,540)		15		12
Treasury stock, at cost	(30,385)		(30,136)		(29,978)		(29,821)		(29,664)		1		2
Total stockholders’ equity	57,801		58,089		53,668		54,559		54,653		—		6
Total liabilities and stockholders’ equity	$	481,720	$	478,464	$	471,435	$	467,800	$	471,660	1		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 $630 million in Q1 2024, $566 million in Q4 2023, $449 million in Q3 2023, $443 million in Q2 2023 and $405 million in Q1 2023 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)Tangible book value per common share is a non-GAAP measure calculated based on TCE divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(4)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

(5)Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

(6)Return on average tangible assets is a non-GAAP measure calculated based on annualized income (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.

(7)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.

(8)Return on average tangible common equity 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 TCE. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(9)Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(10)Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(11)Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

(12)Capital ratios as of the end of Q1 2024 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.

(13)TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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


	2024 Q1						2023 Q4						2023 Q1
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale	$	315,563	$	9,920	12.57	%	$	316,670	$	9,934	12.55	%	$	308,115	$	8,723	11.32	%
Investment securities	88,581		687		3.10		88,650		669		3.02		89,960		615		2.73
Cash equivalents and other	43,659		570		5.21		41,609		542		5.21		37,124		416		4.49
Total interest-earning assets	$	447,803	$	11,177	9.98		$	446,929	$	11,145	9.97		$	435,199	$	9,754	8.96
Interest-bearing liabilities:
Interest-bearing deposits	$	318,450	$	2,812	3.53		$	316,808	$	2,745	3.47		$	308,788	$	1,856	2.40
Securitized debt obligations	17,836		261		5.85		18,022		263		5.84		17,251		211		4.90
Senior and subordinated notes	32,211		606		7.52		32,586		608		7.46		30,136		489		6.49
Other borrowings and liabilities(2)	2,373		10		1.78		2,349		10		1.74		2,335		12		2.08
Total interest-bearing liabilities	$	370,870	$	3,689	3.98		$	369,765	$	3,626	3.92		$	358,510	$	2,568	2.87
Net interest income/spread			$	7,488	6.00				$	7,519	6.05				$	7,186	6.10
Impact of non-interest-bearing funding					0.69						0.68						0.50
Net interest margin					6.69	%					6.73	%					6.60	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics


											2024 Q1
	2024		2023		2023		2023		2023		2023		2023
(Dollars in millions, except as noted)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	143,861	$	147,666	$	140,320	$	135,975	$	130,980	(3)	%	10	%
International card businesses	6,733		6,881		6,463		6,516		6,162		(2)		9
Total credit card	150,594		154,547		146,783		142,491		137,142		(3)		10
Consumer banking:
Auto	73,801		74,075		75,456		75,841		76,652		—		(4)
Retail banking	1,298		1,362		1,388		1,439		1,499		(5)		(13)
Total consumer banking	75,099		75,437		76,844		77,280		78,151		—		(4)
Commercial banking:
Commercial and multifamily real estate	34,272		34,446		35,622		36,041		37,132		(1)		(8)
Commercial and industrial	55,189		56,042		55,531		55,511		56,411		(2)		(2)
Total commercial banking	89,461		90,488		91,153		91,552		93,543		(1)		(4)

Total loans held for investment	$	315,154	$	320,472	$	314,780	$	311,323	$	308,836	(2)		2
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	142,887	$	142,112	$	137,500	$	132,505	$	128,562	1	%	11	%
International card businesses	6,758		6,515		6,549		6,257		6,108		4		11
Total credit card	149,645		148,627		144,049		138,762		134,670		1		11
Consumer banking:
Auto	73,768		74,861		75,740		76,233		77,465		(1)		(5)
Retail banking	1,324		1,377		1,414		1,465		1,529		(4)		(13)
Total consumer banking	75,092		76,238		77,154		77,698		78,994		(2)		(5)
Commercial banking:
Commercial and multifamily real estate	34,310		35,414		35,964		37,068		37,373		(3)		(8)
Commercial and industrial	55,567		55,611		55,592		56,127		56,719		—		(2)
Total commercial banking	89,877		91,025		91,556		93,195		94,092		(1)		(4)
Total average loans held for investment	$	314,614	$	315,890	$	312,759	$	309,655	$	307,756	—		2


											2024 Q1
	2024		2023		2023		2023		2023		2023		2023
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card(3)	5.94	%	5.35	%	4.40	%	4.38	%	4.04	%	59	bps	190	bps
International card businesses	5.16		4.94		4.87		4.98		4.54		22		62
Total credit card	5.90		5.33		4.42		4.41		4.06		57		184
Consumer banking:
Auto	1.99		2.19		1.77		1.40		1.53		(20)		46
Retail banking	4.04		5.68		3.80		3.25		2.97		(164)		107
Total consumer banking	2.03		2.25		1.81		1.43		1.56		(22)		47
Commercial banking:
Commercial and multifamily real estate	0.20		0.96		0.27		3.91		0.19		(76)		1
Commercial and industrial	0.08		0.26		0.24		0.11		0.03		(18)		5
Total commercial banking	0.13		0.53		0.25		1.62		0.09		(40)		4
Total net charge-offs	3.33		3.21		2.56		2.82		2.21		12		112
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	4.48	%	4.61	%	4.31	%	3.74	%	3.66	%	(13)	bps	82	bps
International card businesses	4.83		4.67		4.43		4.24		4.20		16		63
Total credit card	4.50		4.61		4.32		3.77		3.68		(11)		82
Consumer banking:
Auto	5.28		6.34		5.64		5.38		5.00		(106)		28
Retail banking	0.95		1.19		1.07		1.19		0.56		(24)		39
Total consumer banking	5.21		6.25		5.55		5.30		4.92		(104)		29
Nonperforming Loans and Nonperforming Assets Rates(4)(5)
Credit card:
International card businesses	0.13	%	0.13	%	0.14	%	0.16	%	0.12	%	—		1	bps
Total credit card	0.01		0.01		0.01		0.01		0.01		—		—
Consumer banking:
Auto	0.79		0.96		0.85		0.77		0.67		(17)	bps	12
Retail banking	3.21		3.36		3.28		2.99		2.94		(15)		27
Total consumer banking	0.83		1.00		0.89		0.82		0.72		(17)		11
Commercial banking:
Commercial and multifamily real estate	1.58		1.23		1.29		1.15		0.90		35		68
Commercial and industrial	1.10		0.60		0.65		0.71		0.72		50		38
Total commercial banking	1.28		0.84		0.90		0.89		0.79		44		49
Total nonperforming loans	0.57		0.48		0.48		0.47		0.42		9		15
Total nonperforming assets	0.58		0.50		0.50		0.48		0.44		8		14

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



	Three Months Ended March 31, 2024
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2023	$	11,261	$	448	$	11,709	$	2,002	$	40	$	2,042	$	1,545	$	15,296


Charge-offs	(2,452)		(122)		(2,574)		(642)		(18)		(660)		(39)		(3,273)
Recoveries	332		35		367		275		5		280		10		657
Net charge-offs	(2,120)		(87)		(2,207)		(367)		(13)		(380)		(29)		(2,616)
Provision for credit losses	2,157		102		2,259		422		4		426		22		2,707
Allowance build (release) for credit losses	37		15		52		55		(9)		46		(7)		91
Other changes(6)	—		(7)		(7)		—		—		—		—		(7)
Balance as of March 31, 2024	11,298		456		11,754		2,057		31		2,088		1,538		15,380
Reserve for unfunded lending commitments:
Balance as of December 31, 2023	—		—		—		—		—		—		158		158


Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(24)		(24)

Balance as of March 31, 2024	—		—		—		—		—		—		134		134
Combined allowance and reserve as of March 31, 2024	$	11,298	$	456	$	11,754	$	2,057	$	31	$	2,088	$	1,672	$	15,514

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results


	Three Months Ended March 31, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)	$	5,272	$	2,011	$	599	$	(394)	$	7,488
Non-interest income (loss)	1,476		159		281		(2)		1,914
Total net revenue (loss)	6,748		2,170		880		(396)		9,402
Provision (benefit) for credit losses	2,259		426		(2)		—		2,683
Non-interest expense	3,229		1,246		515		147		5,137
Income (loss) from continuing operations before income taxes	1,260		498		367		(543)		1,582
Income tax provision (benefit)	299		117		87		(201)		302
Income (loss) from continuing operations, net of tax	$	961	$	381	$	280	$	(342)	$	1,280

	Three Months Ended December 31, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)	$	5,231	$	1,951	$	617	$	(280)	$	7,519
Non-interest income	1,565		163		245		14		1,987
Total net revenue (loss)	6,796		2,114		862		(266)		9,506
Provision (benefit) for credit losses	2,353		422		84		(2)		2,857
Non-interest expense	3,417		1,402		487		411		5,717
Income (loss) from continuing operations before income taxes	1,026		290		291		(675)		932
Income tax provision (benefit)	241		68		68		(151)		226
Income (loss) from continuing operations, net of tax	$	785	$	222	$	223	$	(524)	$	706

	Three Months Ended March 31, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)	$	4,657	$	2,360	$	648	$	(479)	$	7,186
Non-interest income	1,363		135		212		7		1,717
Total net revenue (loss)	6,020		2,495		860		(472)		8,903
Provision (benefit) for credit losses	2,261		275		259		—		2,795
Non-interest expense	3,038		1,283		530		94		4,945
Income (loss) from continuing operations before income taxes	721		937		71		(566)		1,163
Income tax provision (benefit)	172		221		17		(207)		203
Income (loss) from continuing operations, net of tax	$	549	$	716	$	54	$	(359)	$	960

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business


																2024 Q1 vs.
	2024			2023			2023			2023			2023			2023		2023
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Credit Card
Earnings:
Net interest income	$	5,272		$	5,231		$	5,114		$	4,727		$	4,657		1%		13%
Non-interest income	1,476			1,565			1,513			1,499			1,363			(6)		8
Total net revenue	6,748			6,796			6,627			6,226			6,020			(1)		12
Provision for credit losses	2,259			2,353			1,953			2,084			2,261			(4)		—
Non-interest expense	3,229			3,417			3,015			3,020			3,038			(6)		6
Income from continuing operations before income taxes	1,260			1,026			1,659			1,122			721			23		75
Income tax provision	299			241			393			265			172			24		74
Income from continuing operations, net of tax	$	961		$	785		$	1,266		$	857		$	549		22		75
Selected performance metrics:
Period-end loans held for investment	$	150,594		$	154,547		$	146,783		$	142,491		$	137,142		(3)		10
Average loans held for investment	149,645			148,627			144,049			138,762			134,670			1		11
Average yield on loans outstanding(1)	18.84		%	18.96		%	19.02		%	18.17		%	17.98		%	(12)	bps	86	bps
Total net revenue margin(8)	17.99			18.24			18.40			17.95			17.88			(25)		11
Net charge-off rate	5.90			5.33			4.42			4.41			4.06			57		184
30+ day performing delinquency rate	4.50			4.61			4.32			3.77			3.68			(11)		82
30+ day delinquency rate	4.50			4.62			4.32			3.77			3.69			(12)		81
Nonperforming loan rate(4)	0.01			0.01			0.01			0.01			0.01			—		—
Purchase volume(9)	$	150,171		$	162,055		$	158,640		$	157,937		$	141,658		(7)%		6%


																2024 Q1 vs.
	2024			2023			2023			2023			2023			2023		2023
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Domestic Card
Earnings:
Net interest income	$	4,972		$	4,940		$	4,827		$	4,453		$	4,390		1%		13%
Non-interest income	1,411			1,498			1,445			1,431			1,298			(6)		9
Total net revenue	6,383			6,438			6,272			5,884			5,688			(1)		12
Provision for credit losses	2,157			2,238			1,861			1,995			2,174			(4)		(1)
Non-interest expense	3,025			3,186			2,810			2,805			2,847			(5)		6
Income from continuing operations before income taxes	1,201			1,014			1,601			1,084			667			18		80
Income tax provision	283			239			378			256			157			18		80
Income from continuing operations, net of tax	$	918		$	775		$	1,223		$	828		$	510		18		80
Selected performance metrics:
Period-end loans held for investment	$	143,861		$	147,666		$	140,320		$	135,975		$	130,980		(3)		10
Average loans held for investment	142,887			142,112			137,500			132,505			128,562			1		11
Average yield on loans outstanding(1)	18.76		%	18.88		%	18.96		%	18.07		%	17.88		%	(12)	bps	88	bps
Total net revenue margin(8)	17.82			18.07			18.24			17.76			17.70			(25)		12
Net charge-off rate(3)	5.94			5.35			4.40			4.38			4.04			59		190
30+ day performing delinquency rate	4.48			4.61			4.31			3.74			3.66			(13)		82
Purchase volume(9)	$	146,696		$	158,290		$	154,880		$	154,184		$	138,310		(7)%		6%
Refreshed FICO scores:(10)
Greater than 660	68		%	68		%	69		%	69		%	68		%	—		—
660 or below	32			32			31			31			32			—		—
Total	100		%	100		%	100		%	100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business


																2024 Q1 vs.
	2024			2023			2023			2023			2023			2023		2023
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Consumer Banking
Earnings:
Net interest income	$	2,011		$	1,951		$	2,133		$	2,269		$	2,360		3%		(15)%
Non-interest income	159			163			142			149			135			(2)		18
Total net revenue	2,170			2,114			2,275			2,418			2,495			3		(13)
Provision for credit losses	426			422			213			259			275			1		55
Non-interest expense	1,246			1,402			1,262			1,231			1,283			(11)		(3)
Income from continuing operations before income taxes	498			290			800			928			937			72		(47)
Income tax provision	117			68			189			219			221			72		(47)
Income from continuing operations, net of tax	$	381		$	222		$	611		$	709		$	716		72		(47)
Selected performance metrics:
Period-end loans held for investment	$	75,099		$	75,437		$	76,844		$	77,280		$	78,151		—		(4)
Average loans held for investment	75,092			76,238			77,154			77,698			78,994			(2)		(5)
Average yield on loans held for investment(1)	8.33		%	8.17		%	7.97		%	7.65		%	7.40		%	16	bps	93	bps
Auto loan originations	$	7,522		$	6,157		$	7,452		$	7,160		$	6,211		22%		21%
Period-end deposits	300,806			296,171			290,789			286,174			291,163			2		3
Average deposits	294,448			291,486			287,457			285,647			278,772			1		6
Average deposits interest rate	3.15		%	3.06		%	2.85		%	2.46		%	1.96		%	9	bps	119	bps
Net charge-off rate	2.03			2.25			1.81			1.43			1.56			(22)		47
30+ day performing delinquency rate	5.21			6.25			5.55			5.30			4.92			(104)		29
30+ day delinquency rate	5.86			7.08			6.27			5.95			5.46			(122)		40
Nonperforming loan rate(4)	0.83			1.00			0.89			0.82			0.72			(17)		11
Nonperforming asset rate(5)	0.91			1.09			0.96			0.88			0.78			(18)		13
Auto—At origination FICO scores:(11)
Greater than 660	53		%	53		%	52		%	52		%	52		%	—		1%
621 - 660	20			20			20			20			20			—		—
620 or below	27			27			28			28			28			—		(1)
Total	100		%	100		%	100		%	100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business


																2024 Q1 vs.
	2024			2023			2023			2023			2023			2023		2023
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Commercial Banking
Earnings:
Net interest income	$	599		$	617		$	621		$	632		$	648		(3)%		(8)%
Non-interest income	281			245			288			257			212			15		33
Total net revenue(7)	880			862			909			889			860			2		2
Provision (benefit) for credit losses	(2)			84			116			146			259			**		**
Non-interest expense	515			487			512			482			530			6		(3)
Income from continuing operations before income taxes	367			291			281			261			71			26		**
Income tax provision	87			68			67			61			17			28		**
Income from continuing operations, net of tax	$	280		$	223		$	214		$	200		$	54		26		**
Selected performance metrics:
Period-end loans held for investment	$	89,461		$	90,488		$	91,153		$	91,552		$	93,543		(1)		(4)
Average loans held for investment	89,877			91,025			91,556			93,195			94,092			(1)		(4)
Average yield on loans held for investment(1)(7)	7.14		%	7.24		%	7.16		%	6.75		%	6.31		%	(10)	bps	83	bps
Period-end deposits	$	31,082		$	32,712		$	36,035		$	36,793		$	38,380		(5)%		(19)%
Average deposits	31,844			34,525			37,279			37,960			39,941			(8)		(20)
Average deposits interest rate	2.65		%	2.79		%	2.93		%	2.68		%	2.34		%	(14)	bps	31	bps
Net charge-off rate	0.13			0.53			0.25			1.62			0.09			(40)		4
Nonperforming loan rate(4)	1.28			0.84			0.90			0.89			0.79			44		49
Nonperforming asset rate(5)	1.28			0.84			0.90			0.89			0.79			44		49
Risk category:(12)
Noncriticized	$	80,804		$	81,758		$	82,968		$	84,583		$	85,964		(1)%		(6)%
Criticized performing	7,509			7,969			7,363			6,158			6,839			(6)		10
Criticized nonperforming	1,148			761			822			811			740			51		55
Total commercial banking loans held for investment	$	89,461		$	90,488		$	91,153		$	91,552		$	93,543		(1)		(4)
Risk category as a percentage of period-end loans held for investment:(12)
Noncriticized	90.33		%	90.35		%	91.02		%	92.38		%	91.90		%	(2)	bps	(157)	bps
Criticized performing	8.39			8.81			8.08			6.73			7.31			(42)		108
Criticized nonperforming	1.28			0.84			0.90			0.89			0.79			44		49
Total commercial banking loans	100.00		%	100.00		%	100.00		%	100.00		%	100.00		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total


											2024 Q1 vs.
	2024		2023		2023		2023		2023		2023	2023
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Other
Earnings:
Net interest loss	$	(394)	$	(280)	$	(445)	$	(515)	$	(479)	41%	(18)%
Non-interest income (loss)	(2)		14		—		(6)		7		**	**
Total net loss(7)	(396)		(266)		(445)		(521)		(472)		49	(16)
Provision (benefit) for credit losses	—		(2)		2		1		—		**	—
Non-interest expense(13)	147		411		71		61		94		(64)	56
Loss from continuing operations before income taxes	(543)		(675)		(518)		(583)		(566)		(20)	(4)
Income tax benefit	(201)		(151)		(217)		(248)		(207)		33	(3)
Loss from continuing operations, net of tax	$	(342)	$	(524)	$	(301)	$	(335)	$	(359)	(35)	(5)
Selected performance metrics:
Period-end deposits	$	19,081	$	19,530	$	19,187	$	20,738	$	20,284	(2)	(6)
Average deposits	19,365		19,317		20,277		20,071		21,410		—	(10)
Total
Earnings:
Net interest income	$	7,488	$	7,519	$	7,423	$	7,113	$	7,186	—	4%
Non-interest income	1,914		1,987		1,943		1,899		1,717		(4)%	11
Total net revenue	9,402		9,506		9,366		9,012		8,903		(1)	6
Provision for credit losses	2,683		2,857		2,284		2,490		2,795		(6)	(4)
Non-interest expense	5,137		5,717		4,860		4,794		4,945		(10)	4
Income from continuing operations before income taxes	1,582		932		2,222		1,728		1,163		70	36
Income tax provision	302		226		432		297		203		34	49
Income from continuing operations, net of tax	$	1,280	$	706	$	1,790	$	1,431	$	960	81	33
Selected performance metrics:
Period-end loans held for investment	$	315,154	$	320,472	$	314,780	$	311,323	$	308,836	(2)	2
Average loans held for investment	314,614		315,890		312,759		309,655		307,756		—	2
Period-end deposits	350,969		348,413		346,011		343,705		349,827		1	—
Average deposits	345,657		345,328		345,013		343,678		340,123		—	2

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)

(1)Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing. Average yield is calculated using whole dollar values for average balances and interest income/expense. Accordingly, total interest earning assets less total interest bearing liabilities may not total net interest income/spread.

(2)Includes amounts related to entities that provide capital to low-income and rural communities of $1.9 billion and $1.7 billion for the first quarters of 2024 and 2023, respectively, and related interest expense of $8 million for both the first quarters of 2024 and 2023.

(3)In December 2023, we recognized $18 million of incremental net charge-offs on certain loans in hardship programs from the one-time impact of operational delays, which increased the Q4 2023 net charge-off rate by approximately 5 basis points. Excluding this impact, the Q4 2023 net charge-off rate would have been 5.30%.

(4)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. For Commercial Banking, loans categorized as nonperforming are considered criticized nonperforming.

(5)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.

(6)Primarily represents foreign currency translation adjustments.

(7)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.

(8)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

(9)Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.

(10)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.

(11)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.

(12)Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.

(13)Includes the impact of the $42 million and $289 million FDIC special assessment in Q1 2024 and Q4 2023, respectively, and any charges incurred as a result of restructuring activities for the periods presented.

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1)


	Basel III Standardized Approach
(Dollars in millions, except as noted)	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Regulatory Capital Metrics
Common equity excluding AOCI	$	63,088	$	62,710	$	62,245	$	60,729	$	59,546
Adjustments:
AOCI, net of tax(2)	14		27		(9)		31		(3)
Goodwill, net of related deferred tax liabilities	(14,804)		(14,811)		(14,797)		(14,813)		(14,538)
Other Intangible and deferred tax assets, net of deferred tax liabilities	(291)		(311)		(333)		(358)		(371)
Common equity Tier 1 capital	$	48,007	$	47,615	$	47,106	$	45,589	$	44,634
Tier 1 capital	$	52,852	$	52,460	$	51,952	$	50,434	$	49,479
Total capital(3)	59,483		59,124		58,844		57,607		56,611
Risk-weighted assets	366,046		369,206		362,962		359,613		356,079
Adjusted average assets(4)	468,030		467,553		464,286		459,732		455,477
Capital Ratios
Common equity Tier 1 capital(5)	13.1%		12.9%		13.0%		12.7%		12.5%
Tier 1 capital(6)	14.4		14.2		14.3		14.0		13.9
Total capital(7)	16.3		16.0		16.2		16.0		15.9
Tier 1 leverage(4)	11.3		11.2		11.2		11.0		10.9
TCE(8)	8.1		8.2		7.3		7.6		7.6

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, however, they may not be comparable to similarly-titled measures reported by other companies. 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.


	2024		2023		2023		2023		2023
(Dollars in millions, except per share data and as noted)	Q1		Q4		Q3		Q2		Q1
Adjusted diluted earnings per share (“EPS”):
Net income available to common stockholders (GAAP)	$	1,200	$	639	$	1,705	$	1,351	$	887
FDIC special assessment	42		289		—		—		—



Adjusted net income available to common stockholders before income tax impacts (non-GAAP)	1,242		928		1,705		1,351		887
Income tax impacts	(10)		(70)		—		—		—

Adjusted net income available to common stockholders (non-GAAP)	$	1,232	$	858	$	1,705	$	1,351	$	887

Diluted weighted-average common shares outstanding (in millions) (GAAP)	383.4		382.8		383.3		383.7		383.8

Diluted EPS (GAAP)	$	3.13	$	1.67	$	4.45	$	3.52	$	2.31
Impact of adjustments noted above	0.08		0.57		—		—		—
Adjusted diluted EPS (non-GAAP)	$	3.21	$	2.24	$	4.45	$	3.52	$	2.31

Adjusted efficiency ratio:
Non-interest expense (GAAP)	$	5,137	$	5,717	$	4,860	$	4,794	$	4,945
FDIC special assessment	(42)		(289)		—		—		—


Adjusted non-interest expense (non-GAAP)	$	5,095	$	5,428	$	4,860	$	4,794	$	4,945

Total net revenue (GAAP)	$	9,402	$	9,506	$	9,366	$	9,012	$	8,903




Efficiency ratio (GAAP)	54.64%		60.14%		51.89%		53.20%		55.54%
Impact of adjustments noted above	(45)bps		(304)bps		—		—		—
Adjusted efficiency ratio (non-GAAP)	54.19%		57.10%		51.89%		53.20%		55.54%

Adjusted operating efficiency ratio:
Operating expense (GAAP)	$	4,127	$	4,463	$	3,888	$	3,908	$	4,048
FDIC special assessment	(42)		(289)		—		—		—


Adjusted operating expense (non-GAAP)	$	4,085	$	4,174	$	3,888	$	3,908	$	4,048


Total net revenue (GAAP)	$	9,402	$	9,506	$	9,366	$	9,012	$	8,903


	2024	2023	2023	2023	2023
(Dollars in millions, except per share data and as noted)	Q1	Q4	Q3	Q2	Q1
Operating efficiency ratio (GAAP)	43.89%	46.95%	41.51%	43.36%	45.47%
Impact of adjustments noted above	(44)bps	(304)bps	—	—	—
Adjusted operating efficiency ratio (non-GAAP)	43.45%	43.91%	41.51%	43.36%	45.47%

Reconciliation of Non-GAAP Measures

The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following table presents reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.


	2024			2023			2023			2023			2023
(Dollars in millions)	Q1			Q4			Q3			Q2			Q1
Pre- Provision Earnings
Total net revenue	$	9,402		$	9,506		$	9,366		$	9,012		$	8,903
Non-interest expense	(5,137)			(5,717)			(4,860)			(4,794)			(4,945)
Pre-provision earnings(9)	$	4,265		$	3,789		$	4,506		$	4,218		$	3,958
Tangible Common Equity (Period-End)
Stockholders’ equity	$	57,801		$	58,089		$	53,668		$	54,559		$	54,653
Goodwill and other intangible assets(10)	(15,257)			(15,289)			(15,308)			(15,356)			(15,098)
Noncumulative perpetual preferred stock	(4,845)			(4,845)			(4,845)			(4,845)			(4,845)
Tangible common equity(11)	$	37,699		$	37,955		$	33,515		$	34,358		$	34,710
Tangible Common Equity (Average)
Stockholders’ equity	$	57,998		$	55,632		$	55,012		$	55,357		$	54,773
Goodwill and other intangible assets(10)	(15,280)			(15,304)			(15,348)			(15,187)			(14,984)
Noncumulative perpetual preferred stock	(4,845)			(4,845)			(4,845)			(4,845)			(4,845)
Tangible common equity(11)	$	37,873		$	35,483		$	34,819		$	35,325		$	34,944
Return on Tangible Common Equity (Average)
Net income available to common stockholders	$	1,200		$	639		$	1,705		$	1,351		$	887
Tangible common equity (Average)	37,873			35,483			34,819			35,325			34,944
Return on tangible common equity(11)(12)	12.67		%	7.20		%	19.59		%	15.30		%	10.15		%
Tangible Assets (Period-End)
Total assets	$	481,720		$	478,464		$	471,435		$	467,800		$	471,660
Goodwill and other intangible assets(10)	(15,257)			(15,289)			(15,308)			(15,356)			(15,098)
Tangible assets(11)	$	466,463		$	463,175		$	456,127		$	452,444		$	456,562


	2024		2023		2023		2023		2023
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1






















Tangible Assets (Average)
Total assets	$	474,995	$	472,594	$	469,860	$	466,652	$	462,324
Goodwill and other intangible assets(10)	(15,280)		(15,304)		(15,348)		(15,187)		(14,984)
Tangible assets(11)	$	459,715	$	457,290	$	454,512	$	451,465	$	447,340
Return on Tangible Assets (Average)
Net income	$	1,280	$	706	$	1,790	$	1,431	$	960
Tangible Assets (Average)	459,715		457,290		454,512		451,465		447,340
Return on tangible assets(11)(13)	1.11%		0.62%		1.58%		1.27%		0.86%
TCE Ratio
Tangible common equity (Period-end)	$	37,699	$	37,955	$	33,515	$	34,358	$	34,710
Tangible Assets (Period-end)	466,463		463,175		456,127		452,444		456,562
TCE Ratio(11)	8.1%		8.2%		7.3%		7.6%		7.6%
Tangible Book Value per Common Share
Tangible common equity (Period-end)	$	37,699	$	37,955	$	33,515	$	34,358	$	34,710
Outstanding Common Shares	382.1		380.4		381.0		381.4		382.0
Tangible book value per common share(11)	$	98.67	$	99.78	$	87.97	$	90.07	$	90.86

__________

(1)Regulatory capital metrics and capital ratios as of March 31, 2024 are preliminary and therefore subject to change.

(2)Excludes certain components of AOCI in accordance with rules applicable to Category III institutions.

(3)Total capital equals the sum of Tier 1 capital and Tier 2 capital.

(4)Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.

(5)Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.

(6)Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.

(7)Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.

(8)TCE ratio is a Non-GAAP measure calculated based on TCE divided by tangible assets.

(9)Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

(10)Includes impact of related deferred taxes.

(11)Management believes that this financial metric is useful in assessing capital adequacy and the level of returns generated.

(12)Return on average tangible common equity 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 TCE.

(13)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.