SEC Filing | Capital One Financial Corp.

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cof-20240723

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

July 23, 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
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 July 23, 2024, Capital One Financial Corporation (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 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 July 23, 2024 - Second Quarter 2024
99.2						Financial Supplement - Second 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 July 23, 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 August 6, 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: July 23, 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/81a84da059361d19f551252690e5f17b-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: July 23, 2024

Capital One Reports Second Quarter 2024 Net Income of $597 million,
or $1.38 per share

Net of adjusting items, Second Quarter 2024 Net Income of $3.14 per share(1)

McLean, Va. (July 23, 2024) – Capital One Financial Corporation (NYSE: COF) today announced net income for the second quarter of 2024 of $597 million, or $1.38 per diluted common share, compared with net income of $1.3 billion, or $3.13 per diluted common share in the first quarter of 2024, and with net income of $1.4 billion, or $3.52 per diluted common share in the second quarter of 2023. Adjusted net income(1) for the second quarter of 2024 was $3.14 per diluted common share.

"We posted strong second quarter results while continuing to lean into opportunities to grow and further strengthen our domestic card and national consumer banking franchises," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "And we’re “all in” and working hard to complete the Discover acquisition, which will create a consumer banking and global payments platform with the potential to enhance competition, deliver compelling financial results, and create significant value for merchants, small businesses, and consumers."

The quarter included the following adjusting items:


(Dollars in millions, except per share data)	Pre-Tax Impact		After-Tax Diluted EPS Impact
(Dollars in millions, except per share data)	Pre-Tax Impact		After-Tax Diluted EPS Impact
Allowance build for Walmart program agreement loss sharing termination	$	826	$	1.63
Walmart program agreement termination contra revenue impact	$	27	$	0.05
Discover integration expenses	$	31	$	0.06
FDIC special assessment	$	8	$	0.02

Capital One Second Quarter 2024 Earnings

Page 2

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

Second Quarter 2024 Income Statement Summary:

•Total net revenue increased 1 percent to $9.5 billion.

•Total non-interest expense decreased 4 percent to $4.9 billion:

◦5 percent increase in marketing.

◦6 percent decrease in operating expenses.

•Pre-provision earnings(2) increased 7 percent to $4.6 billion.

•Provision for credit losses increased $1.2 billion to $3.9 billion:

•Net charge-offs of $2.6 billion.

•$1.3 billion loan reserve build.

•Net interest margin of 6.70 percent, an increase of 1 basis point.

•Efficiency ratio of 52.03 percent.

◦Adjusted efficiency ratio(1) of 51.47 percent.

•Operating efficiency ratio of 40.84 percent.

◦Adjusted operating efficiency ratio(1) of 40.31 percent.

Second Quarter 2024 Balance Sheet Summary:

•Common equity Tier 1 capital ratio(3) under Basel III Standardized Approach of 13.2 percent at June 30, 2024.

•Period-end loans held for investment in the quarter increased $3.0 billion, or 1 percent, to $318.2 billion.

◦Credit Card period-end loans increased $3.3 billion, or 2 percent, to $153.9 billion.

•Domestic Card period-end loans increased $3.2 billion, or 2 percent, to $147.1 billion.

◦Consumer Banking period-end loans increased $564 million, or 1 percent, to $75.7 billion.

•Auto period-end loans increased $584 million, or 1 percent, to $74.4 billion.

◦Commercial Banking period-end loans decreased $833 million, or 1 percent, to $88.6 billion.

•Average loans held for investment in the quarter increased $274 million, or less than 1 percent, to $314.9 billion.

◦Credit Card average loans increased $822 million, or 1 percent, to $150.5 billion.

•Domestic Card average loans increased $857 million, or 1 percent, to $143.7 billion.

◦Consumer Banking average loans increased $294 million, or less than 1 percent, to $75.4 billion.

•Auto average loans increased $330 million, or less than 1% percent, to $74.1 billion.

◦Commercial Banking average loans decreased $842 million, or 1 percent, to $89.0 billion.

•Period-end total deposits increased $473 million, or less than 1 percent, to $351.4 billion, while average deposits increased $3.8 billion, or 1 percent, to $349.5 billion.

•Interest-bearing deposits rate paid increased 3 basis points to 3.56 percent.

Capital One Second Quarter 2024 Earnings

Page 3

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on July 23, 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 August 6, 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 $351.4 billion in deposits and $480.0 billion in total assets as of June 30, 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 Form 8-K on July 23, 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 Form 8-K on July 23, 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 June 30, 2024 are preliminary and therefore subject to change.

Document

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement(1)(2)

Second 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 June 30, 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 Q2				Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	2024		2024		2023		2023		2023		2024		2023						2024 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2024		2023		2023
Income Statement
Net interest income	$	7,546	$	7,488	$	7,519	$	7,423	$	7,113	1	%	6	%	$	15,034	$	14,299	5	%
Non-interest income	1,960		1,914		1,987		1,943		1,899		2		3		3,874		3,616		7
Total net revenue(1)	9,506		9,402		9,506		9,366		9,012		1		5		18,908		17,915		6
Provision for credit losses	3,909		2,683		2,857		2,284		2,490		46		57		6,592		5,285		25
Non-interest expense:
Marketing	1,064		1,010		1,254		972		886		5		20		2,074		1,783		16
Operating expense	3,882		4,127		4,463		3,888		3,908		(6)		(1)		8,009		7,956		1
Total non-interest expense	4,946		5,137		5,717		4,860		4,794		(4)		3		10,083		9,739		4
Income from continuing operations before income taxes	651		1,582		932		2,222		1,728		(59)		(62)		2,233		2,891		(23)
Income tax provision	54		302		226		432		297		(82)		(82)		356		500		(29)


Net income	597		1,280		706		1,790		1,431		(53)		(58)		1,877		2,391		(21)
Dividends and undistributed earnings allocated to participating securities(2)	(9)		(23)		(10)		(28)		(23)		(61)		(61)		(32)		(39)		(18)
Preferred stock dividends	(57)		(57)		(57)		(57)		(57)		—		—		(114)		(114)		—

Net income available to common stockholders	$	531	$	1,200	$	639	$	1,705	$	1,351	(56)		(61)		$	1,731	$	2,238	(23)
Common Share Statistics
Basic earnings per common share:(2)


Net income per basic common share	$	1.39	$	3.14	$	1.67	$	4.46	$	3.53	(56)	%	(61)	%	$	4.52	$	5.85	(23)	%
Diluted earnings per common share:(2)


Net income per diluted common share	$	1.38	$	3.13	$	1.67	$	4.45	$	3.52	(56)	%	(61)	%	$	4.51	$	5.83	(23)	%
Weighted-average common shares outstanding (in millions):
Basic	383.1		382.2		381.9		382.5		382.8		—		—		382.7		382.7		—
Diluted	383.9		383.4		382.8		383.3		383.7		—		—		383.7		383.8		—
Common shares outstanding (period-end, in millions)	381.9		382.1		380.4		381.0		381.4		—		—		381.9		381.4		—
Dividends declared and paid per common share	$	0.60	$	0.60	$	0.60	$	0.60	$	0.60	—		—		$	1.20	$	1.20	—
Tangible book value per common share (period-end)(3)	99.28		98.67		99.78		87.97		90.07		1	%	10	%	99.28		90.07		10	%


											2024 Q2				Six Months Ended June 30,
(Dollars in millions)	2024		2024		2023		2023		2023		2024		2023						2024 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2024		2023		2023
Balance Sheet (Period-End)
Loans held for investment	$	318,186	$	315,154	$	320,472	$	314,780	$	311,323	1	%	2	%	$	318,186	$	311,323	2	%
Interest-earning assets	452,547		453,557		449,701		445,428		441,250		—		3		452,547		441,250		3
Total assets	480,018		481,720		478,464		471,435		467,800		—		3		480,018		467,800		3
Interest-bearing deposits	324,437		323,352		320,389		317,217		314,393		—		3		324,437		314,393		3
Total deposits	351,442		350,969		348,413		346,011		343,705		—		2		351,442		343,705		2
Borrowings	47,956		50,361		49,856		49,247		50,258		(5)		(5)		47,956		50,258		(5)
Common equity	53,135		52,955		53,244		48,823		49,713		—		7		53,135		49,713		7
Total stockholders’ equity	57,981		57,801		58,089		53,668		54,559		—		6		57,981		54,559		6
Balance Sheet (Average Balances)
Loans held for investment	$	314,888	$	314,614	$	315,890	$	312,759	$	309,655	—		2	%	$	314,751	$	308,711	2	%
Interest-earning assets	450,908		447,803		446,929		443,532		439,139		1	%	3		449,356		437,180		3
Total assets	477,285		474,995		472,594		469,860		466,652		—		2		476,140		464,459		3
Interest-bearing deposits	322,581		318,450		316,808		316,032		313,207		1		3		320,515		311,010		3
Total deposits	349,488		345,657		345,328		345,013		343,678		1		2		347,572		341,910		2
Borrowings	48,842		50,474		51,070		49,736		48,468		(3)		1		49,658		48,243		3
Common equity	53,262		53,152		50,786		50,166		50,511		—		5		53,207		50,221		6
Total stockholders’ equity	58,107		57,998		55,632		55,012		55,357		—		5		58,052		55,066		5

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated


																2024 Q2				Six Months Ended June 30,
(Dollars in millions, except as noted)	2024			2024			2023			2023			2023			2024		2023								2024 vs.
	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2024			2023			2023
Performance Metrics
Net interest income growth (period over period)	1		%	—			1		%	4		%	(1)		%	**		**		5		%	11		%	**
Non-interest income growth (period over period)	2			(4)		%	2			2			11			**		**		7			4			**
Total net revenue growth (period over period)	1			(1)			1			4			1			**		**		6			9			**
Total net revenue margin(4)	8.43			8.40			8.51			8.45			8.21			3	bps	22	bps	8.42			8.20			22	bps
Net interest margin(5)	6.70			6.69			6.73			6.69			6.48			1		22		6.69			6.54			15
Return on average assets	0.50			1.08			0.60			1.52			1.23			(58)		(73)		0.79			1.03			(24)
Return on average tangible assets(6)	0.52			1.11			0.62			1.58			1.27			(59)		(75)		0.81			1.06			(25)
Return on average common equity(7)	3.99			9.03			5.03			13.59			10.70			(504)		(671)		6.51			8.91			(240)
Return on average tangible common equity(8)	5.59			12.67			7.20			19.59			15.30			(708)		(971)		9.12			12.74			(362)

Efficiency ratio(9)	52.03			54.64			60.14			51.89			53.20			(261)		(117)		53.33			54.36			(103)
Operating efficiency ratio(10)	40.84			43.89			46.95			41.51			43.36			(305)		(252)		42.36			44.41			(205)
Effective income tax rate for continuing operations	8.3			19.1			24.2			19.4			17.2			(1,080)		(890)		15.9			17.3			(140)
Employees (period-end, in thousands)	52.1			51.3			52.0			54.2			55.6			2%		(6)%		52.1			55.6			(6)%
Credit Quality Metrics
Allowance for credit losses	$	16,649		$	15,380		$	15,296		$	14,955		$	14,646		8%		14%		$	16,649		$	14,646		14%
Allowance coverage ratio	5.23		%	4.88		%	4.77		%	4.75		%	4.70		%	35	bps	53	bps	5.23		%	4.70		%	53	bps
Net charge-offs	$	2,644		$	2,616		$	2,533		$	1,999		$	2,185		1%		21%		$	5,260		$	3,882		35%
Net charge-off rate(11)	3.36		%	3.33		%	3.21		%	2.56		%	2.82		%	3	bps	54	bps	3.34		%	2.52		%	82	bps
30+ day performing delinquency rate	3.36			3.40			3.71			3.42			3.08			(4)		28		3.36			3.08			28
30+ day delinquency rate	3.63			3.67			3.99			3.71			3.36			(4)		27		3.63			3.36			27
Capital Ratios(12)
Common equity Tier 1 capital	13.2		%	13.1		%	12.9		%	13.0		%	12.7		%	10	bps	50	bps	13.2		%	12.7		%	50	bps
Tier 1 capital	14.5			14.4			14.2			14.3			14.0			10		50		14.5			14.0			50
Total capital	16.3			16.3			16.0			16.2			16.0			—		30		16.3			16.0			30
Tier 1 leverage	11.3			11.3			11.2			11.2			11.0			—		30		11.3			11.0			30
Tangible common equity (“TCE”)(13)	8.2			8.1			8.2			7.3			7.6			10		60		8.2			7.6			60

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income


											2024 Q2				Six Months Ended June 30,
(Dollars in millions, except as noted)	2024		2024		2023		2023		2023		2024		2023						2024 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2024		2023		2023
Interest income:
Loans, including loans held for sale	$	9,993	$	9,920	$	9,934	$	9,696	$	9,057	1	%	10	%	$	19,913	$	17,780	12	%
Investment securities	700		687		669		627		639		2		10		1,387		1,254		11
Other	587		570		542		550		470		3		25		1,157		886		31
Total interest income	11,280		11,177		11,145		10,873		10,166		1		11		22,457		19,920		13
Interest expense:
Deposits	2,874		2,812		2,745		2,611		2,277		2		26		5,686		4,133		38
Securitized debt obligations	258		261		263		249		236		(1)		9		519		447		16
Senior and subordinated notes	591		606		608		579		528		(2)		12		1,197		1,017		18
Other borrowings	11		10		10		11		12		10		(8)		21		24		(13)
Total interest expense	3,734		3,689		3,626		3,450		3,053		1		22		7,423		5,621		32
Net interest income	7,546		7,488		7,519		7,423		7,113		1		6		15,034		14,299		5
Provision for credit losses	3,909		2,683		2,857		2,284		2,490		46		57		6,592		5,285		25
Net interest income after provision for credit losses	3,637		4,805		4,662		5,139		4,623		(24)		(21)		8,442		9,014		(6)
Non-interest income:
Interchange fees, net	1,249		1,145		1,207		1,234		1,213		9		3		2,394		2,352		2
Service charges and other customer-related fees	459		462		424		453		411		(1)		12		921		790		17
Net securities gains (losses)	—		—		(34)		—		—		—		—		—		—		—
Other	252		307		390		256		275		(18)		(8)		559		474		18
Total non-interest income	1,960		1,914		1,987		1,943		1,899		2		3		3,874		3,616		7
Non-interest expense:
Salaries and associate benefits	2,200		2,478		2,284		2,274		2,317		(11)		(5)		4,678		4,744		(1)
Occupancy and equipment	551		554		628		518		506		(1)		9		1,105		1,014		9
Marketing	1,064		1,010		1,254		972		886		5		20		2,074		1,783		16
Professional services	316		262		359		295		290		21		9		578		614		(6)
Communications and data processing	355		351		345		344		344		1		3		706		694		2
Amortization of intangibles	19		19		22		24		22		—		(14)		38		36		6
Other	441		463		825		433		429		(5)		3		904		854		6
Total non-interest expense	4,946		5,137		5,717		4,860		4,794		(4)		3		10,083		9,739		4
Income from continuing operations before income taxes	651		1,582		932		2,222		1,728		(59)		(62)		2,233		2,891		(23)
Income tax provision	54		302		226		432		297		(82)		(82)		356		500		(29)


Net income	597		1,280		706		1,790		1,431		(53)		(58)		1,877		2,391		(21)
Dividends and undistributed earnings allocated to participating securities(2)	(9)		(23)		(10)		(28)		(23)		(61)		(61)		(32)		(39)		(18)
Preferred stock dividends	(57)		(57)		(57)		(57)		(57)		—		—		(114)		(114)		—

Net income available to common stockholders	$	531	$	1,200	$	639	$	1,705	$	1,351	(56)		(61)		$	1,731	$	2,238	(23)




											2024 Q2				Six Months Ended June 30,
	2024		2024		2023		2023		2023		2024		2023						2024 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2024		2023		2023
Basic earnings per common share:(2)


Net income per basic common share	$	1.39	$	3.14	$	1.67	$	4.46	$	3.53	(56)	%	(61)	%	$	4.52	$	5.85	(23)	%
Diluted earnings per common share:(2)


Net income per diluted common share	$	1.38	$	3.13	$	1.67	$	4.45	$	3.52	(56)	%	(61)	%	$	4.51	$	5.83	(23)	%
Weighted-average common shares outstanding (in millions):
Basic common shares	383.1		382.2		381.9		382.5		382.8		—		—		382.7		382.7		—
Diluted common shares	383.9		383.4		382.8		383.3		383.7		—		—		383.7		383.8		—

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets


											2024 Q2
	2024		2024		2023		2023		2023		2024		2023
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Assets:
Cash and cash equivalents:
Cash and due from banks	$	5,298	$	4,671	$	4,903	$	4,620	$	3,360	13	%	58	%
Interest-bearing deposits and other short-term investments	40,116		46,357		38,394		40,249		38,236		(13)		5
Total cash and cash equivalents	45,414		51,028		43,297		44,869		41,596		(11)		9
Restricted cash for securitization investors	2,415		474		458		435		452		**		**
Securities available for sale	79,250		78,398		79,117		74,837		78,412		1		1
Loans held for investment:
Unsecuritized loans held for investment	289,124		285,577		289,229		284,953		280,933		1		3
Loans held in consolidated trusts	29,062		29,577		31,243		29,827		30,390		(2)		(4)
Total loans held for investment	318,186		315,154		320,472		314,780		311,323		1		2
Allowance for credit losses	(16,649)		(15,380)		(15,296)		(14,955)		(14,646)		8		14
Net loans held for investment	301,537		299,774		305,176		299,825		296,677		1		2
Loans held for sale	808		1,631		854		742		1,211		(50)		(33)
Premises and equipment, net	4,396		4,366		4,375		4,378		4,359		1		1
Interest receivable	2,494		2,514		2,478		2,469		2,297		(1)		9
Goodwill	15,062		15,062		15,065		15,048		15,060		—		—
Other assets	28,642		28,473		27,644		28,832		27,736		1		3
Total assets	$	480,018	$	481,720	$	478,464	$	471,435	$	467,800	—		3


											2024 Q2
	2024		2024		2023		2023		2023		2024		2023
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Liabilities:
Interest payable	$	668	$	762	$	649	$	685	$	637	(12)	%	5	%
Deposits:
Non-interest-bearing deposits	27,005		27,617		28,024		28,794		29,312		(2)		(8)
Interest-bearing deposits	324,437		323,352		320,389		317,217		314,393		—		3
Total deposits	351,442		350,969		348,413		346,011		343,705		—		2
Securitized debt obligations	17,291		17,661		18,043		17,417		17,861		(2)		(3)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	715		568		538		522		649		26		10
Senior and subordinated notes	29,925		32,108		31,248		31,283		31,627		(7)		(5)
Other borrowings	25		24		27		25		121		4		(79)
Total other debt	30,665		32,700		31,813		31,830		32,397		(6)		(5)
Other liabilities	21,971		21,827		21,457		21,824		18,641		1		18
Total liabilities	422,037		423,919		420,375		417,767		413,241		—		2

Stockholders’ equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	36,012		35,808		35,541		35,334		35,163		1		2
Retained earnings	62,211		61,905		60,945		60,529		59,028		—		5
Accumulated other comprehensive loss	(9,701)		(9,534)		(8,268)		(12,224)		(9,818)		2		(1)
Treasury stock, at cost	(30,548)		(30,385)		(30,136)		(29,978)		(29,821)		1		2
Total stockholders’ equity	57,981		57,801		58,089		53,668		54,559		—		6
Total liabilities and stockholders’ equity	$	480,018	$	481,720	$	478,464	$	471,435	$	467,800	—		3

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

(1)Total net revenue was reduced by $649 million in Q2 2024, $630 million in Q1 2024, $566 million in Q4 2023, $449 million in Q3 2023 and $443 million in Q2 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 Q2 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 Q2						2024 Q1						2023 Q2
(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	$	315,823	$	9,993	12.66	%	$	315,563	$	9,920	12.57	%	$	310,335	$	9,057	11.67	%
Investment securities	89,501		700		3.13		88,581		687		3.10		89,994		639		2.84
Cash equivalents and other	45,584		587		5.16		43,659		570		5.21		38,810		470		4.84
Total interest-earning assets	$	450,908	$	11,280	10.01		$	447,803	$	11,177	9.98		$	439,139	$	10,166	9.26
Interest-bearing liabilities:
Interest-bearing deposits	$	322,581	$	2,874	3.56		$	318,450	$	2,812	3.53		$	313,207	$	2,277	2.91
Securitized debt obligations	17,452		258		5.91		17,836		261		5.85		17,771		236		5.31
Senior and subordinated notes	30,978		591		7.64		32,211		606		7.52		30,161		528		7.00
Other borrowings and liabilities(2)	2,502		11		1.73		2,373		10		1.78		2,419		12		1.95
Total interest-bearing liabilities	$	373,513	$	3,734	4.00		$	370,870	$	3,689	3.98		$	363,558	$	3,053	3.36
Net interest income/spread			$	7,546	6.01				$	7,488	6.00				$	7,113	5.90
Impact of non-interest-bearing funding					0.69						0.69						0.58
Net interest margin					6.70	%					6.69	%					6.48	%




	Six Months Ended June 30,
	2024						2023
(Dollars in millions, except as noted)	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	$	315,693	$	19,913	12.62	%	$	309,231	$	17,780	11.50	%
Investment securities	89,041		1,387		3.12		89,977		1,254		2.79
Cash equivalents and other	44,622		1,157		5.19		37,972		886		4.67
Total interest-earning assets	$	449,356	$	22,457	10.00		$	437,180	$	19,920	9.11
Interest-bearing liabilities:
Interest-bearing deposits	$	320,515	$	5,686	3.55		$	311,010	$	4,133	2.66
Securitized debt obligations	17,644		519		5.88		17,512		447		5.10
Senior and subordinated notes	31,594		1,197		7.58		30,149		1,017		6.75
Other borrowings and liabilities(2)	2,438		21		1.75		2,377		24		2.01
Total interest-bearing liabilities	$	372,191	$	7,423	3.99		$	361,048	$	5,621	3.11
Net interest income/spread			$	15,034	6.01				$	14,299	6.00
Impact of non-interest-bearing funding					0.68						0.54
Net interest margin					6.69	%					6.54	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics


											2024 Q2				Six Months Ended June 30,
	2024		2024		2023		2023		2023		2024		2023		2024		2023		2024 vs. 2023
(Dollars in millions, except as noted)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	147,065	$	143,861	$	147,666	$	140,320	$	135,975	2	%	8	%	$	147,065	$	135,975	8	%
International card businesses	6,830		6,733		6,881		6,463		6,516		1		5		6,830		6,516		5
Total credit card	153,895		150,594		154,547		146,783		142,491		2		8		153,895		142,491		8
Consumer banking:
Auto	74,385		73,801		74,075		75,456		75,841		1		(2)		74,385		75,841		(2)
Retail banking	1,278		1,298		1,362		1,388		1,439		(2)		(11)		1,278		1,439		(11)
Total consumer banking	75,663		75,099		75,437		76,844		77,280		1		(2)		75,663		77,280		(2)
Commercial banking:
Commercial and multifamily real estate	32,832		34,272		34,446		35,622		36,041		(4)		(9)		32,832		36,041		(9)
Commercial and industrial	55,796		55,189		56,042		55,531		55,511		1		1		55,796		55,511		1
Total commercial banking	88,628		89,461		90,488		91,153		91,552		(1)		(3)		88,628		91,552		(3)

Total loans held for investment	$	318,186	$	315,154	$	320,472	$	314,780	$	311,323	1		2		$	318,186	$	311,323	2
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	143,744	$	142,887	$	142,112	$	137,500	$	132,505	1	%	8	%	$	143,316	$	130,544	10	%
International card businesses	6,723		6,758		6,515		6,549		6,257		(1)		7		6,740		6,183		9
Total credit card	150,467		149,645		148,627		144,049		138,762		1		8		150,056		136,727		10
Consumer banking:
Auto	74,098		73,768		74,861		75,740		76,233		—		(3)		73,933		76,846		(4)
Retail banking	1,288		1,324		1,377		1,414		1,465		(3)		(12)		1,306		1,497		(13)
Total consumer banking	75,386		75,092		76,238		77,154		77,698		—		(3)		75,239		78,343		(4)
Commercial banking:
Commercial and multifamily real estate	33,801		34,310		35,414		35,964		37,068		(1)		(9)		34,055		37,220		(9)
Commercial and industrial	55,234		55,567		55,611		55,592		56,127		(1)		(2)		55,401		56,421		(2)
Total commercial banking	89,035		89,877		91,025		91,556		93,195		(1)		(4)		89,456		93,641		(4)
Total average loans held for investment	$	314,888	$	314,614	$	315,890	$	312,759	$	309,655	—		2		$	314,751	$	308,711	2


											2024 Q2				Six Months Ended June 30,
	2024		2024		2023		2023		2023		2024		2023		2024		2023		2024 vs. 2023
	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card(3)(4)	6.05	%	5.94	%	5.35	%	4.40	%	4.38	%	11	bps	167	bps	5.99	%	4.21	%	178	bps
International card businesses	5.03		5.16		4.94		4.87		4.98		(13)		5		5.10		4.77		33
Total credit card	6.00		5.90		5.33		4.42		4.41		10		159		5.95		4.24		171
Consumer banking:
Auto	1.81		1.99		2.19		1.77		1.40		(18)		41		1.90		1.46		44
Retail banking	5.38		4.04		5.68		3.80		3.25		134		213		4.70		3.10		160
Total consumer banking	1.87		2.03		2.25		1.81		1.43		(16)		44		1.95		1.50		45
Commercial banking:
Commercial and multifamily real estate	0.11		0.20		0.96		0.27		3.91		(9)		(380)		0.16		2.04		(188)
Commercial and industrial	0.17		0.08		0.26		0.24		0.11		9		6		0.13		0.07		6
Total commercial banking	0.15		0.13		0.53		0.25		1.62		2		(147)		0.14		0.85		(71)
Total net charge-offs	3.36		3.33		3.21		2.56		2.82		3		54		3.34		2.52		82
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	4.14	%	4.48	%	4.61	%	4.31	%	3.74	%	(34)	bps	40	bps	4.14	%	3.74	%	40	bps
International card businesses	4.63		4.83		4.67		4.43		4.24		(20)		39		4.63		4.24		39
Total credit card	4.16		4.50		4.61		4.32		3.77		(34)		39		4.16		3.77		39
Consumer banking:
Auto	5.67		5.28		6.34		5.64		5.38		39		29		5.67		5.38		29
Retail banking	1.57		0.95		1.19		1.07		1.19		62		38		1.57		1.19		38
Total consumer banking	5.60		5.21		6.25		5.55		5.30		39		30		5.60		5.30		30
Nonperforming Loans and Nonperforming Assets Rates(5)(6)
Credit card:
International card businesses	0.15	%	0.13	%	0.13	%	0.14	%	0.16	%	2	bps	(1)	bps	0.15	%	0.16	%	(1)	bps
Total credit card	0.01		0.01		0.01		0.01		0.01		—		—		0.01		0.01		—
Consumer banking:
Auto	0.88		0.79		0.96		0.85		0.77		9		11		0.88		0.77		11
Retail banking	2.81		3.21		3.36		3.28		2.99		(40)		(18)		2.81		2.99		(18)
Total consumer banking	0.92		0.83		1.00		0.89		0.82		9		10		0.92		0.82		10
Commercial banking:
Commercial and multifamily real estate	1.28		1.58		1.23		1.29		1.15		(30)		13		1.28		1.15		13
Commercial and industrial	1.56		1.10		0.60		0.65		0.71		46		85		1.56		0.71		85
Total commercial banking	1.46		1.28		0.84		0.90		0.89		18		57		1.46		0.89		57
Total nonperforming loans	0.63		0.57		0.48		0.48		0.47		6		16		0.63		0.47		16
Total nonperforming assets	0.64		0.58		0.50		0.50		0.48		6		16		0.64		0.48		16

CAPITAL ONE FINANCIAL CORPORATION (COF)

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




	Three Months Ended June 30, 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 March 31, 2024	$	11,298	$	456	$	11,754	$	2,057	$	31	$	2,088	$	1,538	$	15,380
Charge-offs	(2,556)		(130)		(2,686)		(615)		(21)		(636)		(39)		(3,361)
Recoveries	383		45		428		280		3		283		6		717
Net charge-offs	(2,173)		(85)		(2,258)		(335)		(18)		(353)		(33)		(2,644)
Provision for credit losses	3,435		110		3,545		315		15		330		39		3,914
Allowance build (release) for credit losses(7)	1,262		25		1,287		(20)		(3)		(23)		6		1,270
Other changes(8)	—		(1)		(1)		—		—		—		—		(1)
Balance as of June 30, 2024	12,560		480		13,040		2,037		28		2,065		1,544		16,649
Reserve for unfunded lending commitments:
Balance as of March 31, 2024	—		—		—		—		—		—		134		134
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(5)		(5)

Balance as of June 30, 2024	—		—		—		—		—		—		129		129
Combined allowance and reserve as of June 30, 2024	$	12,560	$	480	$	13,040	$	2,037	$	28	$	2,065	$	1,673	$	16,778



	Six Months Ended June 30, 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	(5,008)		(252)		(5,260)		(1,257)		(39)		(1,296)		(78)		(6,634)
Recoveries	715		80		795		555		8		563		16		1,374
Net charge-offs	(4,293)		(172)		(4,465)		(702)		(31)		(733)		(62)		(5,260)
Provision for credit losses	5,592		212		5,804		737		19		756		61		6,621
Allowance build (release) for credit losses(7)	1,299		40		1,339		35		(12)		23		(1)		1,361
Other changes(8)	—		(8)		(8)		—		—		—		—		(8)
Balance as of June 30, 2024	12,560		480		13,040		2,037		28		2,065		1,544		16,649
Reserve for unfunded lending commitments:
Balance as of December 31, 2023	—		—		—		—		—		—		158		158


Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(29)		(29)

Balance as of June 30, 2024	—		—		—		—		—		—		129		129
Combined allowance and reserve as of June 30, 2024	$	12,560	$	480	$	13,040	$	2,037	$	28	$	2,065	$	1,673	$	16,778

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results


	Three Months Ended June 30, 2024										Six Months Ended June 30, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(9)		Other(9)		Total		Credit Card		Consumer Banking		Commercial Banking(9)		Other(9)		Total
Net interest income (loss)	$	5,294	$	2,025	$	609	$	(382)	$	7,546	$	10,566	$	4,036	$	1,208	$	(776)	$	15,034
Non-interest income	1,506		172		271		11		1,960		2,982		331		552		9		3,874
Total net revenue (loss)	6,800		2,197		880		(371)		9,506		13,548		4,367		1,760		(767)		18,908
Provision for credit losses	3,545		330		34		—		3,909		5,804		756		32		—		6,592
Non-interest expense	3,134		1,250		483		79		4,946		6,363		2,496		998		226		10,083
Income (loss) from continuing operations before income taxes	121		617		363		(450)		651		1,381		1,115		730		(993)		2,233
Income tax provision (benefit)	30		146		85		(207)		54		329		263		172		(408)		356
Income (loss) from continuing operations, net of tax	$	91	$	471	$	278	$	(243)	$	597	$	1,052	$	852	$	558	$	(585)	$	1,877

	Three Months Ended March 31, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(9)		Other(9)		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 June 30, 2023										Six Months Ended June 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(9)		Other(9)		Total		Credit Card		Consumer Banking		Commercial Banking(9)		Other(9)		Total
Net interest income (loss)	$	4,727	$	2,269	$	632	$	(515)	$	7,113	$	9,384	$	4,629	$	1,280	$	(994)	$	14,299
Non-interest income (loss)	1,499		149		257		(6)		1,899		2,862		284		469		1		3,616
Total net revenue (loss)	6,226		2,418		889		(521)		9,012		12,246		4,913		1,749		(993)		17,915
Provision for credit losses	2,084		259		146		1		2,490		4,345		534		405		1		5,285
Non-interest expense	3,020		1,231		482		61		4,794		6,058		2,514		1,012		155		9,739
Income (loss) from continuing operations before income taxes	1,122		928		261		(583)		1,728		1,843		1,865		332		(1,149)		2,891
Income tax provision (benefit)	265		219		61		(248)		297		437		440		78		(455)		500
Income (loss) from continuing operations, net of tax	$	857	$	709	$	200	$	(335)	$	1,431	$	1,406	$	1,425	$	254	$	(694)	$	2,391

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business


																2024 Q2 vs.				Six Months Ended June 30,
	2024			2024			2023			2023			2023			2024		2023								2024 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2024			2023			2023
Credit Card
Earnings:
Net interest income	$	5,294		$	5,272		$	5,231		$	5,114		$	4,727		—		12%		$	10,566		$	9,384		13%
Non-interest income	1,506			1,476			1,565			1,513			1,499			2%		—		2,982			2,862			4
Total net revenue	6,800			6,748			6,796			6,627			6,226			1		9		13,548			12,246			11
Provision for credit losses	3,545			2,259			2,353			1,953			2,084			57		70		5,804			4,345			34
Non-interest expense	3,134			3,229			3,417			3,015			3,020			(3)		4		6,363			6,058			5
Income from continuing operations before income taxes	121			1,260			1,026			1,659			1,122			(90)		(89)		1,381			1,843			(25)
Income tax provision	30			299			241			393			265			(90)		(89)		329			437			(25)
Income from continuing operations, net of tax	$	91		$	961		$	785		$	1,266		$	857		(91)		(89)		$	1,052		$	1,406		(25)
Selected performance metrics:
Period-end loans held for investment	$	153,895		$	150,594		$	154,547		$	146,783		$	142,491		2		8		$	153,895		$	142,491		8
Average loans held for investment	150,467			149,645			148,627			144,049			138,762			1		8		150,056			136,727			10
Average yield on loans outstanding(1)	18.79		%	18.84		%	18.96		%	19.02		%	18.17		%	(5)	bps	62	bps	18.82		%	18.07		%	75	bps
Total net revenue margin(10)	18.03			17.99			18.24			18.40			17.95			4		8		18.01			17.91			10
Net charge-off rate	6.00			5.90			5.33			4.42			4.41			10		159		5.95			4.24			171
30+ day performing delinquency rate	4.16			4.50			4.61			4.32			3.77			(34)		39		4.16			3.77			39
30+ day delinquency rate	4.17			4.50			4.62			4.32			3.77			(33)		40		4.17			3.77			40
Nonperforming loan rate(5)	0.01			0.01			0.01			0.01			0.01			—		—		0.01			0.01			—
Purchase volume(11)	$	165,143		$	150,171		$	162,055		$	158,640		$	157,937		10%		5%		$	315,314		$	299,595		5%


																2024 Q2 vs.				Six Months Ended June 30,
	2024			2024			2023			2023			2023			2024		2023								2024 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2024			2023			2023
Domestic Card
Earnings:
Net interest income	$	5,001		$	4,972		$	4,940		$	4,827		$	4,453		1%		12%		$	9,973		$	8,843		13%
Non-interest income	1,440			1,411			1,498			1,445			1,431			2		1		2,851			2,729			4
Total net revenue(12)	6,441			6,383			6,438			6,272			5,884			1		9		12,824			11,572			11
Provision for credit losses	3,435			2,157			2,238			1,861			1,995			59		72		5,592			4,169			34
Non-interest expense	2,946			3,025			3,186			2,810			2,805			(3)		5		5,971			5,652			6
Income from continuing operations before income taxes	60			1,201			1,014			1,601			1,084			(95)		(94)		1,261			1,751			(28)
Income tax provision	15			283			239			378			256			(95)		(94)		298			413			(28)
Income from continuing operations, net of tax	$	45		$	918		$	775		$	1,223		$	828		(95)		(95)		$	963		$	1,338		(28)
Selected performance metrics:
Period-end loans held for investment	$	147,065		$	143,861		$	147,666		$	140,320		$	135,975		2		8		$	147,065		$	135,975		8
Average loans held for investment	143,744			142,887			142,112			137,500			132,505			1		8		143,316			130,544			10
Average yield on loans outstanding(1)	18.73		%	18.76		%	18.88		%	18.96		%	18.07		%	(3)	bps	66	bps	18.75		%	17.98		%	77	bps
Total net revenue margin(10)(12)	17.87			17.82			18.07			18.24			17.76			5		11		17.85			17.73			12
Net charge-off rate(3)(4)	6.05			5.94			5.35			4.40			4.38			11		167		5.99			4.21			178
30+ day performing delinquency rate	4.14			4.48			4.61			4.31			3.74			(34)		40		4.14			3.74			40
Purchase volume(11)	$	161,370		$	146,696		$	158,290		$	154,880		$	154,184		10%		5%		$	308,066		$	292,494		5%
Refreshed FICO scores:(13)
Greater than 660	69		%	68		%	68		%	69		%	69		%	1		—		69		%	69		%	—
660 or below	31			32			32			31			31			(1)		—		31			31			—
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business


																2024 Q2 vs.				Six Months Ended June 30,
	2024			2024			2023			2023			2023			2024		2023								2024 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2024			2023			2023
Consumer Banking
Earnings:
Net interest income	$	2,025		$	2,011		$	1,951		$	2,133		$	2,269		1%		(11)%		$	4,036		$	4,629		(13)%
Non-interest income	172			159			163			142			149			8		15		331			284			17
Total net revenue	2,197			2,170			2,114			2,275			2,418			1		(9)		4,367			4,913			(11)
Provision for credit losses	330			426			422			213			259			(23)		27		756			534			42
Non-interest expense	1,250			1,246			1,402			1,262			1,231			—		2		2,496			2,514			(1)
Income from continuing operations before income taxes	617			498			290			800			928			24		(34)		1,115			1,865			(40)
Income tax provision	146			117			68			189			219			25		(33)		263			440			(40)
Income from continuing operations, net of tax	$	471		$	381		$	222		$	611		$	709		24		(34)		$	852		$	1,425		(40)
Selected performance metrics:
Period-end loans held for investment	$	75,663		$	75,099		$	75,437		$	76,844		$	77,280		1		(2)		$	75,663		$	77,280		(2)
Average loans held for investment	75,386			75,092			76,238			77,154			77,698			—		(3)		75,239			78,343			(4)
Average yield on loans held for investment(1)	8.54		%	8.33		%	8.17		%	7.97		%	7.65		%	21	bps	89	bps	8.44		%	7.52		%	92	bps
Auto loan originations	$	8,463		$	7,522		$	6,157		$	7,452		$	7,160		13%		18%		$	15,985		$	13,371		20%
Period-end deposits	305,422			300,806			296,171			290,789			286,174			2		7		305,422			286,174			7
Average deposits	300,794			294,448			291,486			287,457			285,647			2		5		297,621			282,229			5
Average deposits interest rate	3.22		%	3.15		%	3.06		%	2.85		%	2.46		%	7	bps	76	bps	3.19		%	2.21		%	98	bps
Net charge-off rate	1.87			2.03			2.25			1.81			1.43			(16)		44		1.95			1.50			45
30+ day performing delinquency rate	5.60			5.21			6.25			5.55			5.30			39		30		5.60			5.30			30
30+ day delinquency rate	6.35			5.86			7.08			6.27			5.95			49		40		6.35			5.95			40
Nonperforming loan rate(5)	0.92			0.83			1.00			0.89			0.82			9		10		0.92			0.82			10
Nonperforming asset rate(6)	0.99			0.91			1.09			0.96			0.88			8		11		0.99			0.88			11
Auto—At origination FICO scores:(14)
Greater than 660	53		%	53		%	53		%	52		%	52		%	—		1%		53		%	52		%	1%
621 - 660	20			20			20			20			20			—		—		20			20			—
620 or below	27			27			27			28			28			—		(1)		27			28			(1)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business


																2024 Q2 vs.				Six Months Ended June 30,
	2024			2024			2023			2023			2023			2024		2023								2024 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2024			2023			2023
Commercial Banking
Earnings:
Net interest income	$	609		$	599		$	617		$	621		$	632		2%		(4)%		$	1,208		$	1,280		(6)%
Non-interest income	271			281			245			288			257			(4)		5		552			469			18
Total net revenue(9)	880			880			862			909			889			—		(1)		1,760			1,749			1
Provision (benefit) for credit losses	34			(2)			84			116			146			**		(77)		32			405			(92)
Non-interest expense	483			515			487			512			482			(6)		—		998			1,012			(1)
Income from continuing operations before income taxes	363			367			291			281			261			(1)		39		730			332			120
Income tax provision	85			87			68			67			61			(2)		39		172			78			121
Income from continuing operations, net of tax	$	278		$	280		$	223		$	214		$	200		(1)		39		$	558		$	254		120
Selected performance metrics:
Period-end loans held for investment	$	88,628		$	89,461		$	90,488		$	91,153		$	91,552		(1)		(3)		$	88,628		$	91,552		(3)
Average loans held for investment	89,035			89,877			91,025			91,556			93,195			(1)		(4)		89,456			93,641			(4)
Average yield on loans held for investment(1)(9)	7.23		%	7.14		%	7.24		%	7.16		%	6.75		%	9	bps	48	bps	7.18		%	6.53		%	65	bps
Period-end deposits	$	29,210		$	31,082		$	32,712		$	36,035		$	36,793		(6)%		(21)%		$	29,210		$	36,793		(21)%
Average deposits	30,810			31,844			34,525			37,279			37,960			(3)		(19)		31,327			38,945			(20)
Average deposits interest rate	2.55		%	2.65		%	2.79		%	2.93		%	2.68		%	(10)	bps	(13)	bps	2.60		%	2.51		%	9	bps
Net charge-off rate	0.15			0.13			0.53			0.25			1.62			2		(147)		0.14			0.85			(71)
Nonperforming loan rate(5)	1.46			1.28			0.84			0.90			0.89			18		57		1.46			0.89			57
Nonperforming asset rate(6)	1.46			1.28			0.84			0.90			0.89			18		57		1.46			0.89			57
Risk category:(15)
Noncriticized	$	79,695		$	80,804		$	81,758		$	82,968		$	84,583		(1)%		(6)%		$	79,695		$	84,583		(6)%
Criticized performing	7,639			7,509			7,969			7,363			6,158			2		24		7,639			6,158			24
Criticized nonperforming	1,294			1,148			761			822			811			13		60		1,294			811			60
Total commercial banking loans held for investment	$	88,628		$	89,461		$	90,488		$	91,153		$	91,552		(1)		(3)		$	88,628		$	91,552		(3)
Risk category as a percentage of period-end loans held for investment:(15)
Noncriticized	89.92		%	90.33		%	90.35		%	91.02		%	92.38		%	(41)	bps	(246)	bps	89.92		%	92.38		%	(246)	bps
Criticized performing	8.62			8.39			8.81			8.08			6.73			23		189		8.62			6.73			189
Criticized nonperforming	1.46			1.28			0.84			0.90			0.89			18		57		1.46			0.89			57
Total commercial banking loans	100.00		%	100.00		%	100.00		%	100.00		%	100.00		%					100.00		%	100.00		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total


											2024 Q2 vs.		Six Months Ended June 30,
	2024		2024		2023		2023		2023		2024	2023					2024 vs.
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1	Q2	2024		2023		2023
Other
Earnings:
Net interest loss	$	(382)	$	(394)	$	(280)	$	(445)	$	(515)	(3)%	(26)%	$	(776)	$	(994)	(22)%
Non-interest income (loss)	11		(2)		14		—		(6)		**	**	9		1		**
Total net loss(9)	(371)		(396)		(266)		(445)		(521)		(6)	(29)	(767)		(993)		(23)
Provision (benefit) for credit losses	—		—		(2)		2		1		—	**	—		1		**
Non-interest expense(16)(17)	79		147		411		71		61		(46)	30	226		155		46
Loss from continuing operations before income taxes	(450)		(543)		(675)		(518)		(583)		(17)	(23)	(993)		(1,149)		(14)
Income tax benefit	(207)		(201)		(151)		(217)		(248)		3	(17)	(408)		(455)		(10)
Loss from continuing operations, net of tax	$	(243)	$	(342)	$	(524)	$	(301)	$	(335)	(29)	(27)	$	(585)	$	(694)	(16)
Selected performance metrics:
Period-end deposits	$	16,810	$	19,081	$	19,530	$	19,187	$	20,738	(12)	(19)	$	16,810	$	20,738	(19)
Average deposits	17,884		19,365		19,317		20,277		20,071		(8)	(11)	18,624		20,736		(10)
Total
Earnings:
Net interest income	$	7,546	$	7,488	$	7,519	$	7,423	$	7,113	1%	6%	$	15,034	$	14,299	5%
Non-interest income	1,960		1,914		1,987		1,943		1,899		2	3	3,874		3,616		7
Total net revenue	9,506		9,402		9,506		9,366		9,012		1	5	18,908		17,915		6
Provision for credit losses	3,909		2,683		2,857		2,284		2,490		46	57	6,592		5,285		25
Non-interest expense	4,946		5,137		5,717		4,860		4,794		(4)	3	10,083		9,739		4
Income from continuing operations before income taxes	651		1,582		932		2,222		1,728		(59)	(62)	2,233		2,891		(23)
Income tax provision	54		302		226		432		297		(82)	(82)	356		500		(29)
Income from continuing operations, net of tax	$	597	$	1,280	$	706	$	1,790	$	1,431	(53)	(58)	$	1,877	$	2,391	(21)
Selected performance metrics:
Period-end loans held for investment	$	318,186	$	315,154	$	320,472	$	314,780	$	311,323	1	2	$	318,186	$	311,323	2
Average loans held for investment	314,888		314,614		315,890		312,759		309,655		—	2	314,751		308,711		2
Period-end deposits	351,442		350,969		348,413		346,011		343,705		—	2	351,442		343,705		2
Average deposits	349,488		345,657		345,328		345,013		343,678		1	2	347,572		341,910		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 $2.1 billion, $1.9 billion and $2.0 billion for the second quarter, first quarter and first six months of 2024, respectively, and $1.9 billion and $1.8 billion for the second quarter and first six months of 2023, respectively. Related interest expense was $8 million for the second and first quarters of 2024, and the second quarter of 2023, and $16 million for both the first six months of 2024 and 2023.

(3)The termination of our Walmart program agreement, effective May 21, 2024, (“Walmart Program Termination”) increased the Domestic Card net charge-off rate by 19 basis points for Q2 2024. Excluding this impact, the Domestic Card net charge-off rate would have been 5.86%.

(4)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%.

(5)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.

(6)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.

(7)The Walmart Program Termination resulted in an allowance for credit losses build in Domestic Card of $826 million in the second quarter of 2024.

(8)Primarily represents foreign currency translation adjustments.

(9)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.

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

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

(12)The Walmart Program Termination decreased Domestic Card net revenue by $27 million and reduced revenue margin by 8 bps. This was more than offset by higher income from the partial quarter effect of the end of the Walmart revenue sharing provisions which increased revenue margin by 18 bps. The net impact of these items on revenue margin was an increase of 10 bps.

(13)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.

(14)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.

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

(16)Includes the impact of $8 million, $42 million and $289 million FDIC special assessment in Q2 2024, Q1 2024 and Q4 2023, respectively.

(17)Includes the impact of $31 million in Discover integration expenses in Q2 2024, as well as 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)	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Regulatory Capital Metrics
Common equity excluding AOCI	$	63,435	$	63,088	$	62,710	$	62,245	$	60,729
Adjustments:
AOCI, net of tax(2)	13		14		27		(9)		31
Goodwill, net of related deferred tax liabilities	(14,800)		(14,804)		(14,811)		(14,797)		(14,813)
Other Intangible and deferred tax assets, net of deferred tax liabilities	(271)		(291)		(311)		(333)		(358)
Common equity Tier 1 capital	$	48,377	$	48,007	$	47,615	$	47,106	$	45,589
Tier 1 capital	$	53,222	$	52,852	$	52,460	$	51,952	$	50,434
Total capital(3)	59,876		59,484		59,124		58,844		57,607
Risk-weighted assets	367,068		366,161		369,206		362,962		359,613
Adjusted average assets(4)	470,915		468,030		467,553		464,286		459,732
Capital Ratios
Common equity Tier 1 capital(5)	13.2%		13.1%		12.9%		13.0%		12.7%
Tier 1 capital(6)	14.5		14.4		14.2		14.3		14.0
Total capital(7)	16.3		16.2		16.0		16.2		16.0
Tier 1 leverage(4)	11.3		11.3		11.2		11.2		11.0
TCE(8)	8.2		8.1		8.2		7.3		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		2024		2023		2023		2023		Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	Q2		Q1		Q4		Q3		Q2		2024		2023
Adjusted diluted earnings per share (“EPS”):
Net income available to common stockholders (GAAP)	$	531	$	1,200	$	639	$	1,705	$	1,351	$	1,731	$	2,238
Allowance build for Walmart program agreement loss sharing termination	826		—		—		—		—		826		—
Walmart program agreement termination contra revenue impact	27		—		—		—		—		27		—
Discover integration expenses	31		—		—		—		—		31		—
FDIC special assessment	8		42		289		—		—		50		—



Adjusted net income available to common stockholders before income tax impacts (non-GAAP)	1,423		1,242		928		1,705		1,351		2,665		2,238
Income tax impacts	(218)		(10)		(70)		—		—		(228)		—

Adjusted net income available to common stockholders (non-GAAP)	$	1,205	$	1,232	$	858	$	1,705	$	1,351	$	2,437	$	2,238

Diluted weighted-average common shares outstanding (in millions) (GAAP)	383.9		383.4		382.8		383.3		383.7		383.7		383.8

Diluted EPS (GAAP)	$	1.38	$	3.13	$	1.67	$	4.45	$	3.52	$	4.51	$	5.83
Impact of adjustments noted above	1.76		0.08		0.57		—		—		1.84		—
Adjusted diluted EPS (non-GAAP)	$	3.14	$	3.21	$	2.24	$	4.45	$	3.52	$	6.35	$	5.83

Adjusted efficiency ratio:
Non-interest expense (GAAP)	$	4,946	$	5,137	$	5,717	$	4,860	$	4,794	$	10,083	$	9,739
Discover integration expenses	(31)		—		—		—		—		(31)		—
FDIC special assessment	(8)		(42)		(289)		—		—		(50)		—
Adjusted non-interest expense (non-GAAP)	$	4,907	$	5,095	$	5,428	$	4,860	$	4,794	$	10,002	$	9,739

Total net revenue (GAAP)	$	9,506	$	9,402	$	9,506	$	9,366	$	9,012	$	18,908	$	17,915
Walmart program agreement termination contra revenue impact	27		—		—		—		—		27		—
Adjusted net revenue (non-GAAP)	$	9,533	$	9,402	$	9,506	$	9,366	$	9,012	$	18,935	$	17,915

Efficiency ratio (GAAP)	52.03%		54.64%		60.14%		51.89%		53.20%		53.33%		54.36%
Impact of adjustments noted above	(56)bps		(45)bps		(304)bps		—		—		(51)bps		—
Adjusted efficiency ratio (non-GAAP)	51.47%		54.19%		57.10%		51.89%		53.20%		52.82%		54.36%

Adjusted operating efficiency ratio:
Operating expense (GAAP)	$	3,882	$	4,127	$	4,463	$	3,888	$	3,908	$	8,009	$	7,956


	2024		2024		2023		2023		2023		Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	Q2		Q1		Q4		Q3		Q2		2024		2023
Discover integration expenses	(31)		—		—		—		—		(31)		—
FDIC special assessment	(8)		(42)		(289)		—		—		(50)		—
Adjusted operating expense (non-GAAP)	$	3,843	$	4,085	$	4,174	$	3,888	$	3,908	$	7,928	$	7,956

Total net revenue (GAAP)	9,506		$	9,402	$	9,506	$	9,366	$	9,012	$	18,908	$	17,915
Walmart program agreement termination revenue impact	27		—		—		—		—		27		—
Adjusted net revenue (non-GAAP)	$	9,533	$	9,402	$	9,506	$	9,366	$	9,012	$	18,935	$	17,915

Operating efficiency ratio (GAAP)	40.84%		43.89%		46.95%		41.51%		43.36%		42.36%		44.41%
Impact of adjustments noted above	(53)bps		(44)bps		(304)bps		—bps		—bps		(49)bps		—bps
Adjusted operating efficiency ratio (non-GAAP)	40.31%		43.45%		43.91%		41.51%		43.36%		41.87%		44.41%

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			2024			2023			2023			2023
(Dollars in millions)	Q2			Q1			Q4			Q3			Q2
Pre- Provision Earnings
Total net revenue	$	9,506		$	9,402		$	9,506		$	9,366		$	9,012
Non-interest expense	(4,946)			(5,137)			(5,717)			(4,860)			(4,794)
Pre-provision earnings(9)	$	4,560		$	4,265		$	3,789		$	4,506		$	4,218
Tangible Common Equity (Period-End)
Stockholders’ equity	$	57,981		$	57,801		$	58,089		$	53,668		$	54,559
Goodwill and other intangible assets(10)	(15,226)			(15,257)			(15,289)			(15,308)			(15,356)
Noncumulative perpetual preferred stock	(4,845)			(4,845)			(4,845)			(4,845)			(4,845)
Tangible common equity(11)	$	37,910		$	37,699		$	37,955		$	33,515		$	34,358
Tangible Common Equity (Average)
Stockholders’ equity	$	58,107		$	57,998		$	55,632		$	55,012		$	55,357
Goodwill and other intangible assets(10)	(15,249)			(15,280)			(15,304)			(15,348)			(15,187)
Noncumulative perpetual preferred stock	(4,845)			(4,845)			(4,845)			(4,845)			(4,845)
Tangible common equity(11)	$	38,013		$	37,873		$	35,483		$	34,819		$	35,325
Return on Tangible Common Equity (Average)
Net income available to common stockholders	$	531		$	1,200		$	639		$	1,705		$	1,351
Tangible common equity (Average)	38,013			37,873			35,483			34,819			35,325
Return on tangible common equity(11)(12)	5.59		%	12.67		%	7.20		%	19.59		%	15.30		%
Tangible Assets (Period-End)
Total assets	$	480,018		$	481,720		$	478,464		$	471,435		$	467,800
Goodwill and other intangible assets(10)	(15,226)			(15,257)			(15,289)			(15,308)			(15,356)
Tangible assets(11)	$	464,792		$	466,463		$	463,175		$	456,127		$	452,444


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






















Tangible Assets (Average)
Total assets	$	477,285	$	474,995	$	472,594	$	469,860	$	466,652
Goodwill and other intangible assets(10)	(15,249)		(15,280)		(15,304)		(15,348)		(15,187)
Tangible assets(11)	$	462,036	$	459,715	$	457,290	$	454,512	$	451,465
Return on Tangible Assets (Average)
Net income	$	597	$	1,280	$	706	$	1,790	$	1,431
Tangible Assets (Average)	462,036		459,715		457,290		454,512		451,465
Return on tangible assets(11)(13)	0.52%		1.11%		0.62%		1.58%		1.27%
TCE Ratio
Tangible common equity (Period-end)	$	37,910	$	37,699	$	37,955	$	33,515	$	34,358
Tangible Assets (Period-end)	464,792		466,463		463,175		456,127		452,444
TCE Ratio(11)	8.2%		8.1%		8.2%		7.3%		7.6%
Tangible Book Value per Common Share
Tangible common equity (Period-end)	$	37,910	$	37,699	$	37,955	$	33,515	$	34,358
Outstanding Common Shares	381.9		382.1		380.4		381.0		381.4
Tangible book value per common share(11)	$	99.28	$	98.67	$	99.78	$	87.97	$	90.07

__________

(1)Regulatory capital metrics and capital ratios as of June 30, 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.