Exhibit

EX-99.2 3 q22019earningsrelease-ex992.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement⁽¹⁾⁽²⁾

Second Quarter2019

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	5
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	7
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	8
	Table 7:	Loan Information and Performance Statistics	9
	Table 8:	Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity	11
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	12
	Table 10:	Financial & Statistical Summary—Credit Card Business	13
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	15
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	16
	Table 13:	Financial & Statistical Summary—Other and Total	17
Other
	Table 14:	Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)	18
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	19

__________


⁽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, 2019 once it is filed with the Securities and Exchange Commission.

⁽²⁾

This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated



																2019 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except per share data and as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Income Statement
Net interest income	$	5,746		$	5,791		$	5,820		$	5,786		$	5,551		(1	)%	4	%	$	11,537		$	11,269		2	%
Non-interest income	1,378			1,292			1,193			1,176			1,641			7		(16	)	2,670			2,832			(6	)
Total net revenue⁽¹⁾	7,124			7,083			7,013			6,962			7,192			1		(1	)	14,207			14,101			1
Provision for credit losses	1,342			1,693			1,638			1,268			1,276			(21	)	5		3,035			2,950			3
Non-interest expense:
Marketing	546			517			831			504			425			6		28		1,063			839			27
Operating expense	3,233			3,154			3,301			3,269			2,999			3		8		6,387			6,158			4
Total non-interest expense	3,779			3,671			4,132			3,773			3,424			3		10		7,450			6,997			6
Income from continuing operations before income taxes	2,003			1,719			1,243			1,921			2,492			17		(20	)	3,722			4,154			(10	)
Income tax provision (benefit)	387			309			(21		)	420			575			25		(33	)	696			894			(22	)
Income from continuing operations, net of tax	1,616			1,410			1,264			1,501			1,917			15		(16	)	3,026			3,260			(7	)
Income (loss) from discontinued operations, net of tax	9			2			(3		)	1			(11		)	**		**		11			(8		)	**
Net income	1,625			1,412			1,261			1,502			1,906			15		(15	)	3,037			3,252			(7	)
Dividends and undistributed earnings allocated to participating securities⁽²⁾	(12		)	(12		)	(9		)	(9		)	(12		)	—		—		(24		)	(23		)	4
Preferred stock dividends	(80		)	(52		)	(80		)	(53		)	(80		)	54		—		(132		)	(132		)	—
Net income available to common stockholders	$	1,533		$	1,348		$	1,172		$	1,440		$	1,814		14		(15	)	$	2,881		$	3,097		(7	)
Common Share Statistics
Basic earnings per common share:⁽²⁾
Net income from continuing operations	$	3.24		$	2.87		$	2.50		$	3.01		$	3.76		13	%	(14	)%	$	6.11		$	6.39		(4	)%
Income (loss) from discontinued operations	0.02			—			(0.01		)	—			(0.02		)	**		**		0.02			(0.02		)	**
Net income per basic common share	$	3.26		$	2.87		$	2.49		$	3.01		$	3.74		14		(13	)	$	6.13		$	6.37		(4	)
Diluted earnings per common share:⁽²⁾
Net income from continuing operations	$	3.22		$	2.86		$	2.49		$	2.99		$	3.73		13		(14	)	$	6.08		$	6.35		(4	)
Income (loss) from discontinued operations	0.02			—			(0.01		)	—			(0.02		)	**		**		0.02			(0.02		)	**
Net income per diluted common share	$	3.24		$	2.86		$	2.48		$	2.99		$	3.71		13		(13	)	$	6.10		$	6.33		(4	)
Weighted-average common shares outstanding (in millions):
Basic	470.8			469.4			470.0			477.8			485.1			—		(3	)	470.1			485.9			(3	)
Diluted	473.0			471.6			472.7			480.9			488.3			—		(3	)	472.3			489.6			(4	)
Common shares outstanding (period-end, in millions)	470.3			469.6			467.7			473.7			478.4			—		(2	)	470.3			478.4			(2	)
Dividends declared and paid per common share	$	0.40		$	0.40		$	0.40		$	0.40		$	0.40		—		—		$	0.80		$	0.80		—
Tangible book value per common share (period-end)⁽³⁾	77.65			72.86			69.20			66.15			63.86			7		22		77.65			63.86			22



											2019 Q2 vs.				Six Months Ended June 30,
(Dollars in millions)	2019		2019		2018		2018		2018		2019		2018						2019 vs.
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2019		2018		2018
Balance Sheet (Period-End)
Loans held for investment	$	244,460	$	240,273	$	245,899	$	238,761	$	236,124	2	%	4	%	$	244,460	$	236,124	4	%
Interest-earning assets	339,160		340,071		341,293		331,293		332,167		—		2		339,160		332,167		2
Total assets	373,619		373,191		372,538		362,909		363,989		—		3		373,619		363,989		3
Interest-bearing deposits	231,161		230,199		226,281		222,356		222,605		—		4		231,161		222,605		4
Total deposits	254,535		255,107		249,764		247,195		248,225		—		3		254,535		248,225		3
Borrowings	49,233		50,358		58,905		52,205		53,310		(2	)	(8	)	49,233		53,310		(8	)
Common equity	51,406		49,120		47,307		46,277		45,566		5		13		51,406		45,566		13
Total stockholders’ equity	55,767		53,481		51,668		50,638		49,926		4		12		55,767		49,926		12
Balance Sheet (Average Balances)
Loans held for investment	$	242,653	$	241,959	$	241,371	$	236,766	$	240,758	—		1	%	$	242,307	$	245,218	(1	)%
Interest-earning assets	338,026		337,793		334,714		330,272		333,495		—		1		337,913		331,850		2
Total assets	371,095		370,394		365,243		360,937		363,929		—		2		370,746		362,988		2
Interest-bearing deposits	230,452		227,572		222,827		221,431		223,079		1	%	3		229,020		221,384		3
Total deposits	253,634		251,410		247,663		246,720		248,790		1		2		252,528		247,040		2
Borrowings	49,982		53,055		53,994		51,684		52,333		(6	)	(4	)	51,510		53,454		(4	)
Common equity	50,209		48,359		46,753		46,407		45,466		4		10		49,289		45,070		9
Total stockholders’ equity	54,570		52,720		51,114		50,768		49,827		4		10		53,650		49,431		9

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated



																2019 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except as noted)	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Performance Metrics
Net interest income growth (period over period)	(1		)%	—			1		%	4		%	(3		)%	**		**		2		%	3		%	**
Non-interest income growth (period over period)	7			8		%	1			(28		)	38			**		**		(6		)	24			**
Total net revenue growth (period over period)	1			1			1			(3		)	4			**		**		1			7			**
Total net revenue margin⁽⁴⁾	8.43			8.39			8.38			8.43			8.63			4	bps	(20	)bps	8.41			8.50			(9	)bps
Net interest margin⁽⁵⁾	6.80			6.86			6.96			7.01			6.66			(6	)	14		6.83			6.79			4
Return on average assets	1.74			1.52			1.38			1.66			2.11			22		(37	)	1.63			1.80			(17	)
Return on average tangible assets⁽⁶⁾	1.82			1.59			1.44			1.74			2.20			23		(38	)	1.70			1.87			(17	)
Return on average common equity⁽⁷⁾	12.14			11.13			10.05			12.40			16.06			101		(392	)	11.65			13.78			(213	)
Return on average tangible common equity⁽⁸⁾	17.26			16.11			14.78			18.32			23.99			115		(673	)	16.70			20.70			(400	)
Non-interest expense as a percentage of average loans held for investment	6.23			6.07			6.85			6.37			5.69			16		54		6.15			5.71			44
Efficiency ratio⁽⁹⁾	53.05			51.83			58.92			54.19			47.61			122		544		52.44			49.62			282
Operating efficiency ratio⁽¹⁰⁾	45.38			44.53			47.07			46.95			41.70			85		368		44.96			43.67			129
Effective income tax rate for continuing operations	19.3			18.0			(1.7		)	21.9			23.1			130		(380	)	18.7			21.5			(280	)
Employees (in thousands), period-end	50.7			48.8			47.6			47.6			47.8			4	%	6	%	50.7			47.8			6	%
Credit Quality Metrics
Allowance for loan and lease losses	$	7,133		$	7,313		$	7,220		$	7,219		$	7,368		(2	)%	(3	)%	$	7,133		$	7,368		(3	)%
Allowance as a percentage of loans held for investment	2.92		%	3.04		%	2.94		%	3.02		%	3.12		%	(12	)bps	(20	)bps	2.92		%	3.12		%	(20	)bps
Net charge-offs	$	1,508		$	1,599		$	1,610		$	1,425		$	1,459		(6	)%	3	%	$	3,107		$	3,077		1	%
Net charge-off rate⁽¹¹⁾	2.48		%	2.64		%	2.67		%	2.41		%	2.42		%	(16	)bps	6	bps	2.56		%	2.51		%	5	bps
30+ day performing delinquency rate	3.15			3.23			3.62			3.28			2.88			(8	)	27		3.15			2.88			27
30+ day delinquency rate	3.35			3.40			3.84			3.48			3.05			(5	)	30		3.35			3.05			30
Capital Ratios⁽¹²⁾
Common equity Tier 1 capital	12.3		%	11.9		%	11.2		%	11.2		%	11.1		%	40	bps	120	bps	12.3		%	11.1		%	120	bps
Tier 1 capital	13.8			13.4			12.7			12.8			12.6			40		120		13.8			12.6			120
Total capital	16.2			15.8			15.1			15.2			15.1			40		110		16.2			15.1			110
Tier 1 leverage	11.4			11.0			10.7			10.6			10.3			40		110		11.4			10.3			110
Tangible common equity (“TCE”)⁽¹³⁾	10.2			9.6			9.1			9.0			8.8			60		140		10.2			8.8			140

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income



																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except per share data and as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Interest income:
Loans, including loans held for sale	$	6,383		$	6,368		$	6,358		$	6,247		$	5,989		—		7	%	$	12,751		$	12,123		5	%
Investment securities	629			655			627			593			539			(4	)%	17		1,284			991			30
Other	64			69			63			55			68			(7	)	(6	)	133			119			12
Total interest income	7,076			7,092			7,048			6,895			6,596			—		7		14,168			13,233			7
Interest expense:
Deposits	870			817			756			681			622			6		40		1,687			1,161			45
Securitized debt obligations	139			143			138			127			124			(3	)	12		282			231			22
Senior and subordinated notes	310			314			297			288			289			(1	)	7		624			540			16
Other borrowings	11			27			37			13			10			(59	)	10		38			32			19
Total interest expense	1,330			1,301			1,228			1,109			1,045			2		27		2,631			1,964			34
Net interest income	5,746			5,791			5,820			5,786			5,551			(1	)	4		11,537			11,269			2
Provision for credit losses	1,342			1,693			1,638			1,268			1,276			(21	)	5		3,035			2,950			3
Net interest income after provision for credit losses	4,404			4,098			4,182			4,518			4,275			7		3		8,502			8,319			2
Non-interest income:
Interchange fees, net	820			758			743			714			723			8		13		1,578			1,366			16
Service charges and other customer-related fees	352			353			352			410			391			—		(10	)	705			823			(14	)
Net securities gains (losses)	15			24			(20		)	(196		)	(1		)	(38	)	**		39			7			**
Other	191			157			118			248			528			22		(64	)	348			636			(45	)
Total non-interest income	1,378			1,292			1,193			1,176			1,641			7		(16	)	2,670			2,832			(6	)
Non-interest expense:
Salaries and associate benefits	1,558			1,573			1,345			1,432			1,430			(1	)	9		3,131			2,950			6
Occupancy and equipment	521			493			610			515			503			6		4		1,014			993			2
Marketing	546			517			831			504			425			6		28		1,063			839			27
Professional services	314			291			426			275			234			8		34		605			444			36
Communications and data processing	329			303			326			311			317			9		4		632			623			1
Amortization of intangibles	29			30			43			44			43			(3	)	(33	)	59			87			(32	)
Other	482			464			551			692			472			4		2		946			1,061			(11	)
Total non-interest expense	3,779			3,671			4,132			3,773			3,424			3		10		7,450			6,997			6
Income from continuing operations before income taxes	2,003			1,719			1,243			1,921			2,492			17		(20	)	3,722			4,154			(10	)
Income tax provision (benefit)	387			309			(21		)	420			575			25		(33	)	696			894			(22	)
Income from continuing operations, net of tax	1,616			1,410			1,264			1,501			1,917			15		(16	)	3,026			3,260			(7	)
Income (loss) from discontinued operations, net of tax	9			2			(3		)	1			(11		)	**		**		11			(8		)	**
Net income	1,625			1,412			1,261			1,502			1,906			15		(15	)	3,037			3,252			(7	)
Dividends and undistributed earnings allocated to participating securities⁽²⁾	(12		)	(12		)	(9		)	(9		)	(12		)	—		—		(24		)	(23		)	4
Preferred stock dividends	(80		)	(52		)	(80		)	(53		)	(80		)	54		—		(132		)	(132		)	—
Net income available to common stockholders	$	1,533		$	1,348		$	1,172		$	1,440		$	1,814		14		(15	)	$	2,881		$	3,097		(7	)

																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except per share data and as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Basic earnings per common share:⁽²⁾
Net income from continuing operations	$	3.24		$	2.87		$	2.50		$	3.01		$	3.76		13	%	(14	)%	$	6.11		$	6.39		(4	)%
Income (loss) from discontinued operations	0.02			—			(0.01		)	—			(0.02		)	**		**		0.02			(0.02		)	**
Net income per basic common share	$	3.26		$	2.87		$	2.49		$	3.01		$	3.74		14		(13	)	$	6.13		$	6.37		(4	)
Diluted earnings per common share:⁽²⁾
Net income from continuing operations	$	3.22		$	2.86		$	2.49		$	2.99		$	3.73		13		(14	)	$	6.08		$	6.35		(4	)
Income (loss) from discontinued operations	0.02			—			(0.01		)	—			(0.02		)	**		**		0.02			(0.02		)	**
Net income per diluted common share	$	3.24		$	2.86		$	2.48		$	2.99		$	3.71		13		(13	)	$	6.10		$	6.33		(4	)
Weighted-average common shares outstanding (in millions):
Basic common shares	470.8			469.4			470.0			477.8			485.1			—		(3	)	470.1			485.9			(3	)
Diluted common shares	473.0			471.6			472.7			480.9			488.3			—		(3	)	472.3			489.6			(4	)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets



																2019 Q2 vs.
	2019			2019			2018			2018			2018			2019		2018
(Dollars in millions)	Q2			Q1			Q4			Q3			Q2			Q1		Q2
Assets:
Cash and cash equivalents:
Cash and due from banks	$	5,184		$	4,572		$	4,768		$	4,547		$	4,499		13	%	15	%
Interest-bearing deposits and other short-term investments	9,927			12,897			8,418			6,335			7,774			(23	)	28
Total cash and cash equivalents	15,111			17,469			13,186			10,882			12,273			(13	)	23
Restricted cash for securitization investors	710			1,969			303			746			1,023			(64	)	(31	)
Investment securities:
Securities available for sale	45,658			45,888			46,150			47,384			50,691			(1	)	(10	)
Securities held to maturity	35,475			36,503			36,771			34,631			33,464			(3	)	6
Total investment securities	81,133			82,391			82,921			82,015			84,155			(2	)	(4	)
Loans held for investment:
Unsecuritized loans held for investment	211,556			208,591			211,702			204,796			201,222			1		5
Loans held in consolidated trusts	32,904			31,682			34,197			33,965			34,902			4		(6	)
Total loans held for investment	244,460			240,273			245,899			238,761			236,124			2		4
Allowance for loan and lease losses	(7,133		)	(7,313		)	(7,220		)	(7,219		)	(7,368		)	(2	)	(3	)
Net loans held for investment	237,327			232,960			238,679			231,542			228,756			2		4
Loans held for sale, at lower of cost or fair value	1,829			905			1,192			1,402			1,480			102		24
Premises and equipment, net	4,243			4,205			4,191			4,149			4,095			1		4
Interest receivable	1,544			1,615			1,614			1,518			1,493			(4	)	3
Goodwill	14,545			14,546			14,544			14,513			14,531			—		—
Other assets	17,177			17,131			15,908			16,142			16,183			—		6
Total assets	$	373,619		$	373,191		$	372,538		$	362,909		$	363,989		—		3



																2019 Q2 vs.
	2019			2019			2018			2018			2018			2019		2018
(Dollars in millions)	Q2			Q1			Q4			Q3			Q2			Q1		Q2
Liabilities:
Interest payable	$	437		$	382		$	458		$	391		$	450		14	%	(3	)%
Deposits:
Non-interest-bearing deposits	23,374			24,908			23,483			24,839			25,620			(6	)	(9	)
Interest-bearing deposits	231,161			230,199			226,281			222,356			222,605			—		4
Total deposits	254,535			255,107			249,764			247,195			248,225			—		3
Securitized debt obligations	16,959			19,273			18,307			18,649			19,649			(12	)	(14	)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	359			335			352			384			553			7		(35	)
Senior and subordinated notes	31,822			30,645			30,826			31,291			32,920			4		(3	)
Other borrowings	93			105			9,420			1,881			188			(11	)	(51	)
Total other debt	32,274			31,085			40,598			33,556			33,661			4		(4	)
Other liabilities	13,647			13,863			11,743			12,480			12,078			(2	)	13
Total liabilities	317,852			319,710			320,870			312,271			314,063			(1	)	1

Stockholders’ equity:
Preferred stock	0			0			0			0			0			—		—
Common stock	7			7			7			7			7			—		—
Additional paid-in capital, net	32,262			32,160			32,040			31,978			31,868			—		1
Retained earnings	38,386			37,030			35,875			34,883			33,626			4		14
Accumulated other comprehensive income (loss)	170			(660		)	(1,263		)	(1,877		)	(1,793		)	**		**
Treasury stock, at cost	(15,058		)	(15,056		)	(14,991		)	(14,353		)	(13,782		)	—		9
Total stockholders’ equity	55,767			53,481			51,668			50,638			49,926			4		12
Total liabilities and stockholders’ equity	$	373,619		$	373,191		$	372,538		$	362,909		$	363,989		—		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 $318 million in Q2 2019, $376 million in Q1 2019, $391 million in Q4 2018, $305 million in Q3 2018 and $309 million in Q2 2018 for the estimated uncollectible amount of billed finance charges and fees and related losses.

⁽²⁾

Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.


⁽³⁾	Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.


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


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


⁽⁶⁾	Return on average tangible assets is a non-GAAP measure calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

⁽⁷⁾

Return on average common equity is calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.

⁽⁸⁾

Return on average tangible common equity (“ROTCE”) is a non-GAAP measure calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Our calculation of ROTCE may not be comparable to similarly-titled measures reported by other companies. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.


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


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


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


⁽¹²⁾	Capital ratios as of the end of Q2 2019 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.


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


**	Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



	2019 Q2						2019 Q1						2018 Q2
	Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate
(Dollars in millions, except as noted)	Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale	$	243,831	$	6,383	10.47	%	$	242,929	$	6,368	10.49	%	$	242,043	$	5,989	9.90	%
Investment securities	82,383		629		3.05		83,679		655		3.13		79,829		539		2.70
Cash equivalents and other	11,812		64		2.16		11,185		69		2.47		11,623		68		2.34
Total interest-earning assets	$	338,026	$	7,076	8.37		$	337,793	$	7,092	8.40		$	333,495	$	6,596	7.91
Interest-bearing liabilities:
Interest-bearing deposits	$	230,452	$	870	1.51		$	227,572	$	817	1.44		$	223,079	$	622	1.12
Securitized debt obligations	18,262		139		3.04		18,747		143		3.05		19,147		124		2.59
Senior and subordinated notes	30,630		310		4.05		30,836		314		4.07		32,250		289		3.58
Other borrowings and liabilities	2,322		11		1.91		4,684		27		2.34		4,132		10		0.97
Total interest-bearing liabilities	$	281,666	$	1,330	1.89		$	281,839	$	1,301	1.85		$	278,608	$	1,045	1.50
Net interest income/spread			$	5,746	6.48				$	5,791	6.55				$	5,551	6.41
Impact of non-interest-bearing funding					0.32						0.31						0.25
Net interest margin					6.80	%					6.86	%					6.66	%



	Six Months Ended June 30,
	2019						2018
	Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate
(Dollars in millions, except as noted)	Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale	$	243,383	$	12,751	10.48	%	$	246,451	$	12,123	9.84	%
Investment securities	83,027		1,284		3.09		74,731		991		2.65
Cash equivalents and other	11,503		133		2.31		10,668		119		2.23
Total interest-earning assets	$	337,913	$	14,168	8.39		$	331,850	$	13,233	7.98
Interest-bearing liabilities:
Interest-bearing deposits	$	229,020	$	1,687	1.47		$	221,384	$	1,161	1.05
Securitized debt obligations	18,503		282		3.05		19,421		231		2.38
Senior and subordinated notes	30,732		624		4.06		31,345		540		3.45
Other borrowings and liabilities	3,497		38		2.20		5,483		32		1.17
Total interest-bearing liabilities	$	281,752	$	2,631	1.87		$	277,633	$	1,964	1.41
Net interest income/spread			$	11,537	6.52				$	11,269	6.57
Impact of non-interest-bearing funding					0.31						0.22
Net interest margin					6.83	%					6.79	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics



											2019 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except as noted)	2019 Q2		2019 Q1		2018 Q4		2018 Q3		2018 Q2		2019 Q1		2018 Q2		2019		2018		2019 vs. 2018
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	102,959	$	101,052	$	107,350	$	101,564	$	100,714	2	%	2	%	$	102,959	$	100,714	2	%
International card businesses	9,182		8,784		9,011		9,121		9,063		5		1		9,182		9,063		1
Total credit card	112,141		109,836		116,361		110,685		109,777		2		2		112,141		109,777		2
Consumer banking:
Auto	57,556		56,444		56,341		56,422		55,781		2		3		57,556		55,781		3
Retail banking	2,771		2,804		2,864		2,907		2,946		(1	)	(6	)	2,771		2,946		(6	)
Total consumer banking	60,327		59,248		59,205		59,329		58,727		2		3		60,327		58,727		3
Commercial banking:
Commercial and multifamily real estate	29,861		28,984		28,899		29,064		28,292		3		6		29,861		28,292		6
Commercial and industrial	42,125		42,197		41,091		39,325		38,948		—		8		42,125		38,948		8
Total commercial lending	71,986		71,181		69,990		68,389		67,240		1		7		71,986		67,240		7
Small-ticket commercial real estate	6		8		343		358		369		(25	)	(98	)	6		369		(98	)
Total commercial banking	71,992		71,189		70,333		68,747		67,609		1		6		71,992		67,609		6
Other loans	—		—		—		—		11		**		**		—		11		**
Total loans held for investment	$	244,460	$	240,273	$	245,899	$	238,761	$	236,124	2		4		$	244,460	$	236,124	4
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	101,930	$	102,667	$	103,391	$	100,566	$	98,895	(1	)%	3	%	$	102,296	$	99,668	3	%
International card businesses	8,868		8,789		8,958		8,944		8,998		1		(1	)	8,829		9,025		(2	)
Total credit card	110,798		111,456		112,349		109,510		107,893		(1	)	3		111,125		108,693		2
Consumer banking:
Auto	57,070		56,234		56,469		56,297		55,298		1		3		56,654		54,824		3
Home loan⁽¹⁾	—		—		—		—		8,098		**		**		—		12,635		**
Retail banking	2,788		2,831		2,873		2,923		3,084		(2	)	(10	)	2,809		3,256		(14	)
Total consumer banking	59,858		59,065		59,342		59,220		66,480		1		(10	)	59,463		70,715		(16	)
Commercial banking:
Commercial and multifamily real estate	29,514		29,034		28,855		28,354		27,302		2		8		29,276		26,924		9
Commercial and industrial	42,476		42,132		40,476		39,318		38,686		1		10		42,304		38,467		10
Total commercial lending	71,990		71,166		69,331		67,672		65,988		1		9		71,580		65,391		9
Small-ticket commercial real estate	7		272		349		364		376		(97	)	(98	)	139		385		(64	)
Total commercial banking	71,997		71,438		69,680		68,036		66,364		1		8		71,719		65,776		9
Other loans	—		—		—		—		21		**		**		—		34		**
Total average loans held for investment	$	242,653	$	241,959	$	241,371	$	236,766	$	240,758	—		1		$	242,307	$	245,218	(1	)



											2019 Q2 vs.				Six Months Ended June 30,
	2019 Q2		2019 Q1		2018 Q4		2018 Q3		2018 Q2		2019 Q1		2018 Q2		2019		2018		2019 vs. 2018
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card⁽²⁾	4.86	%	5.04	%	4.64	%	4.35	%	4.72	%	(18	)bps	14	bps	4.95	%	4.99	%	(4	)bps
International card businesses	3.63		3.20		4.22		1.92		4.14		43		(51	)	3.41		3.32		9
Total credit card⁽²⁾	4.76		4.90		4.61		4.15		4.67		(14	)	9		4.83		4.85		(2	)
Consumer banking:
Auto	1.09		1.44		1.98		1.73		1.32		(35	)	(23	)	1.26		1.42		(16	)
Retail banking	2.42		2.56		2.56		2.62		2.07		(14	)	35		2.49		1.97		52
Total consumer banking	1.15		1.49		2.01		1.77		1.19		(34	)	(4	)	1.32		1.19		13
Commercial banking:
Commercial and multifamily real estate	—		—		(0.01	)	0.04		—		—		—		—		—		—
Commercial and industrial	0.15		0.13		0.17		0.25		(0.07	)	2		22		0.14		0.06		8
Total commercial lending	0.09		0.08		0.10		0.16		(0.04	)	1		13		0.08		0.04		4
Small-ticket commercial real estate	**		0.23		0.13		0.56		(0.40	)	**		**		**		(0.29	)	**
Total commercial banking	0.09		0.08		0.10		0.16		(0.04	)	1		13		0.08		0.04		4
Total net charge-offs	2.48		2.64		2.67		2.41		2.42		(16	)	6		2.56		2.51		5
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	3.40	%	3.72	%	4.04	%	3.80	%	3.32	%	(32	)bps	8	bps	3.40	%	3.32	%	8	bps
International card businesses	3.40		3.61		3.52		3.55		3.39		(21	)	1		3.40		3.39		1
Total credit card	3.40		3.71		4.00		3.78		3.32		(31	)	8		3.40		3.32		8
Consumer banking:
Auto	6.10		5.78		6.95		6.27		5.57		32		53		6.10		5.57		53
Retail banking	0.93		0.84		1.01		0.80		0.84		9		9		0.93		0.84		9
Total consumer banking	5.87		5.55		6.67		6.01		5.33		32		54		5.87		5.33		54
Nonperforming Loans and Nonperforming Assets Rates⁽³⁾⁽⁴⁾
Credit card:
International card businesses	0.25	%	0.26	%	0.25	%	0.22	%	0.22	%	(1	)bps	3	bps	0.25	%	0.22	%	3	bps
Total credit card	0.02		0.02		0.02		0.02		0.02		—		—		0.02		0.02		—
Consumer banking:
Auto	0.64		0.57		0.80		0.70		0.55		7		9		0.64		0.55		9
Retail banking	1.02		1.10		1.04		1.13		1.15		(8	)	(13	)	1.02		1.15		(13	)
Total consumer banking	0.66		0.59		0.81		0.72		0.58		7		8		0.66		0.58		8
Commercial banking:
Commercial and multifamily real estate	0.14		0.24		0.29		0.13		0.01		(10	)	13		0.14		0.01		13
Commercial and industrial	0.74		0.71		0.54		0.55		0.57		3		17		0.74		0.57		17
Total commercial lending	0.49		0.52		0.44		0.37		0.33		(3	)	16		0.49		0.33		16
Small-ticket commercial real estate	**		**		1.80		1.65		1.18		**		**		**		1.18		**
Total commercial banking	0.50		0.53		0.44		0.38		0.34		(3	)	16		0.50		0.34		16
Total nonperforming loans	0.32		0.31		0.33		0.30		0.25		1		7		0.32		0.25		7
Total nonperforming assets	0.34		0.33		0.35		0.33		0.30		1		4		0.34		0.30		4

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



	Three Months Ended June 30, 2019
	Credit Card									Consumer Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial Banking			Total
Allowance for loan and lease losses:
Balance as of March 31, 2019	$	5,141		$	427		$	5,568		$	1,002		$	60		$	1,062		$	683		$	7,313
Charge-offs	(1,580		)	(131		)	(1,711		)	(401		)	(22		)	(423		)	(23		)	(2,157		)
Recoveries	340			51			391			246			5			251			7			649
Net charge-offs	(1,240		)	(80		)	(1,320		)	(155		)	(17		)	(172		)	(16		)	(1,508		)
Provision for loan and lease losses	1,024			71			1,095			150			15			165			69			1,329
Allowance build (release) for loan and lease losses	(216		)	(9		)	(225		)	(5		)	(2		)	(7		)	53			(179		)
Other changes⁽⁵⁾	—			(1		)	(1		)	—			—			—			—			(1		)
Balance as of June 30, 2019	4,925			417			5,342			997			58			1,055			736			7,133
Reserve for unfunded lending commitments:
Balance as of March 31, 2019	—			—			—			—			4			4			127			131
Provision for losses on unfunded lending commitments	—			—			—			—			—			—			13			13
Balance as of June 30, 2019	—			—			—			—			4			4			140			144
Combined allowance and reserve as of June 30, 2019	$	4,925		$	417		$	5,342		$	997		$	62		$	1,059		$	876		$	7,277



	Six Months Ended June 30, 2019
	Credit Card									Consumer Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial Banking			Total
Allowance for loan and lease losses:
Balance as of December 31, 2018	$	5,144		$	391		$	5,535		$	990		$	58		$	1,048		$	637		$	7,220
Charge-offs	(3,232		)	(261		)	(3,493		)	(850		)	(44		)	(894		)	(43		)	(4,430		)
Recoveries	698			111			809			492			9			501			13			1,323
Net charge-offs	(2,534		)	(150		)	(2,684		)	(358		)	(35		)	(393		)	(30		)	(3,107		)
Provision for loan and lease losses	2,315			169			2,484			365			35			400			129			3,013
Allowance build (release) for loan and lease losses	(219		)	19			(200		)	7			—			7			99			(94		)
Other changes⁽⁵⁾	—			7			7			—			—			—			—			7
Balance as of June 30, 2019	4,925			417			5,342			997			58			1,055			736			7,133
Reserve for unfunded lending commitments:
Balance as of December 31, 2018	—			—			—			—			4			4			118			122
Provision for losses on unfunded lending commitments	—			—			—			—			—			—			22			22
Balance as of June 30, 2019	—			—			—			—			4			4			140			144
Combined allowance and reserve as of June 30, 2019	$	4,925		$	417		$	5,342		$	997		$	62		$	1,059		$	876		$	7,277

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results



	Three Months Ended June 30, 2019											Six Months Ended June 30, 2019
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾			Total		Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾			Total
Net interest income (loss)	$	3,531	$	1,709	$	514	$	(8	)	$	5,746	$	7,121	$	3,388	$	1,003	$	25		$	11,537
Non-interest income (loss)	1,038		166		200		(26		)	1,378		1,988		326		387		(31		)	2,670
Total net revenue (loss)	4,569		1,875		714		(34		)	7,124		9,109		3,714		1,390		(6		)	14,207
Provision for credit losses	1,095		165		82		—			1,342		2,484		400		151		—			3,035
Non-interest expense	2,253		1,002		427		97			3,779		4,424		1,996		844		186			7,450
Income (loss) from continuing operations before income taxes	1,221		708		205		(131		)	2,003		2,201		1,318		395		(192		)	3,722
Income tax provision (benefit)	283		165		48		(109		)	387		512		307		92		(215		)	696
Income (loss) from continuing operations, net of tax	$	938	$	543	$	157	$	(22	)	$	1,616	$	1,689	$	1,011	$	303	$	23		$	3,026

	Three Months Ended March 31, 2019
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾			Total
Net interest income	$	3,590	$	1,679	$	489	$	33		$	5,791
Non-interest income (loss)	950		160		187		(5		)	1,292
Total net revenue	4,540		1,839		676		28			7,083
Provision for credit losses	1,389		235		69		—			1,693
Non-interest expense	2,171		994		417		89			3,671
Income (loss) from continuing operations before income taxes	980		610		190		(61		)	1,719
Income tax provision (benefit)	229		142		44		(106		)	309
Income from continuing operations, net of tax	$	751	$	468	$	146	$	45		$	1,410

	Three Months Ended June 30, 2018											Six Months Ended June 30, 2018
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾			Total		Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾			Total
Net interest income	$	3,396	$	1,609	$	517	$	29		$	5,551	$	6,954	$	3,224	$	1,023	$	68		$	11,269
Non-interest income	884		175		209		373			1,641		1,741		349		396		346			2,832
Total net revenue	4,280		1,784		726		402			7,192		8,695		3,573		1,419		414			14,101
Provision (benefit) for credit losses	1,171		118		34		(47		)	1,276		2,627		351		20		(48		)	2,950
Non-interest expense	1,904		963		409		148			3,424		3,943		1,963		812		279			6,997
Income from continuing operations before income taxes	1,205		703		283		301			2,492		2,125		1,259		587		183			4,154
Income tax provision (benefit)	282		164		66		63			575		495		294		137		(32		)	894
Income from continuing operations, net of tax	$	923	$	539	$	217	$	238		$	1,917	$	1,630	$	965	$	450	$	215		$	3,260

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business



																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Credit Card
Earnings:
Net interest income	$	3,531		$	3,590		$	3,617		$	3,596		$	3,396		(2	)%	4	%	$	7,121		$	6,954		2	%
Non-interest income	1,038			950			886			893			884			9		17		1,988			1,741			14
Total net revenue	4,569			4,540			4,503			4,489			4,280			1		7		9,109			8,695			5
Provision for credit losses	1,095			1,389			1,326			1,031			1,171			(21	)	(6	)	2,484			2,627			(5	)
Non-interest expense	2,253			2,171			2,496			2,103			1,904			4		18		4,424			3,943			12
Income from continuing operations before income taxes	1,221			980			681			1,355			1,205			25		1		2,201			2,125			4
Income tax provision	283			229			160			315			282			24		—		512			495			3
Income from continuing operations, net of tax	$	938		$	751		$	521		$	1,040		$	923		25		2		$	1,689		$	1,630		4
Selected performance metrics:
Period-end loans held for investment	$	112,141		$	109,836		$	116,361		$	110,685		$	109,777		2		2		$	112,141		$	109,777		2
Average loans held for investment	110,798			111,456			112,349			109,510			107,893			(1	)	3		111,125			108,693			2
Average yield on loans held for investment⁽⁸⁾	15.66		%	15.77		%	15.63		%	15.79		%	15.06		%	(11	)bps	60	bps	15.72		%	15.15		%	57	bps
Total net revenue margin⁽⁹⁾	16.50			16.29			16.03			16.40			15.87			21		63		16.39			16.00			39
Net charge-off rate⁽²⁾	4.76			4.90			4.61			4.15			4.67			(14	)	9		4.83			4.85			(2	)
30+ day performing delinquency rate	3.40			3.71			4.00			3.78			3.32			(31	)	8		3.40			3.32			8
30+ day delinquency rate	3.42			3.72			4.01			3.80			3.33			(30	)	9		3.42			3.33			9
Nonperforming loan rate⁽³⁾	0.02			0.02			0.02			0.02			0.02			—		—		0.02			0.02			—
Purchase volume⁽¹⁰⁾	$	106,903		$	93,197		$	105,696		$	97,469		$	97,392		15	%	10	%	$	200,100		$	183,937		9	%



																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Domestic Card
Earnings:
Net interest income	$	3,220		$	3,273		$	3,309		$	3,280		$	3,108		(2	)%	4	%	$	6,493		$	6,337		2	%
Non-interest income	971			873			828			819			818			11		19		1,844			1,592			16
Total net revenue	4,191			4,146			4,137			4,099			3,926			1		7		8,337			7,929			5
Provision for credit losses	1,024			1,291			1,229			950			1,094			(21	)	(6	)	2,315			2,474			(6	)
Non-interest expense	2,034			1,949			2,216			1,890			1,683			4		21		3,983			3,515			13
Income from continuing operations before income taxes	1,133			906			692			1,259			1,149			25		(1	)	2,039			1,940			5
Income tax provision	264			211			162			293			268			25		(1	)	475			452			5
Income from continuing operations, net of tax	$	869		$	695		$	530		$	966		$	881		25		(1	)	$	1,564		$	1,488		5
Selected performance metrics:
Period-end loans held for investment	$	102,959		$	101,052		$	107,350		$	101,564		$	100,714		2		2		$	102,959		$	100,714		2
Average loans held for investment	101,930			102,667			103,391			100,566			98,895			(1	)	3		102,296			99,668			3
Average yield on loans held for investment⁽⁸⁾	15.60		%	15.69		%	15.58		%	15.73		%	15.05		%	(9	)bps	55	bps	15.65		%	15.07		%	58	bps
Total net revenue margin⁽⁹⁾	16.45			16.15			16.01			16.30			15.88			30		57		16.30			15.91			39
Net charge-off rate⁽²⁾	4.86			5.04			4.64			4.35			4.72			(18	)	14		4.95			4.99			(4	)
30+ day delinquency rate	3.40			3.72			4.04			3.80			3.32			(32	)	8		3.40			3.32			8
Purchase volume⁽¹⁰⁾	$	98,052		$	85,738		$	96,818		$	89,205		$	88,941		14	%	10	%	$	183,790		$	168,135		9	%
Refreshed FICO scores:⁽¹¹⁾
Greater than 660	68		%	66		%	67		%	67		%	68		%	2		—		68		%	68		%	—
660 or below	32			34			33			33			32			(2	)	—		32			32			—
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business



																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Consumer Banking
Earnings:
Net interest income	$	1,709		$	1,679		$	1,689		$	1,636		$	1,609		2	%	6	%	$	3,388		$	3,224		5	%
Non-interest income	166			160			159			155			175			4		(5	)	326			349			(7	)
Total net revenue	1,875			1,839			1,848			1,791			1,784			2		5		3,714			3,573			4
Provision for credit losses	165			235			303			184			118			(30	)	40		400			351			14
Non-interest expense	1,002			994			1,085			979			963			1		4		1,996			1,963			2
Income from continuing operations before income taxes	708			610			460			628			703			16		1		1,318			1,259			5
Income tax provision	165			142			107			146			164			16		1		307			294			4
Income from continuing operations, net of tax	$	543		$	468		$	353		$	482		$	539		16		1		$	1,011		$	965		5
Selected performance metrics:
Period-end loans held for investment⁽¹⁾	$	60,327		$	59,248		$	59,205		$	59,329		$	58,727		2		3		$	60,327		$	58,727		3
Average loans held for investment⁽¹⁾	59,858			59,065			59,342			59,220			66,480			1		(10	)	59,463			70,715			(16	)
Average yield on loans held for investment⁽⁸⁾	8.36		%	8.15		%	8.14		%	8.03		%	7.32		%	21	bps	104	bps	8.25		%	7.08		%	117	bps
Auto loan originations	$	7,327		$	6,222		$	5,932		$	6,643		$	6,994		18	%	5	%	$	13,549		$	13,701		(1	)%
Period-end deposits	205,220			205,439			198,607			196,635			194,962			—		5		205,220			194,962			5
Average deposits	204,164			201,072			196,348			194,687			193,278			2		6		202,627			190,547			6
Average deposits interest rate	1.26		%	1.18		%	1.10		%	1.00		%	0.88		%	8	bps	38	bps	1.22		%	0.84		%	38	bps
Net charge-off rate	1.15			1.49			2.01			1.77			1.19			(34	)	(4	)	1.32			1.19			13
30+ day performing delinquency rate	5.87			5.55			6.67			6.01			5.33			32		54		5.87			5.33			54
30+ day delinquency rate	6.41			6.02			7.36			6.61			5.80			39		61		6.41			5.80			61
Nonperforming loan rate⁽³⁾	0.66			0.59			0.81			0.72			0.58			7		8		0.66			0.58			8
Nonperforming asset rate⁽⁴⁾	0.75			0.68			0.90			0.82			0.73			7		2		0.75			0.73			2
Auto—At origination FICO scores:⁽¹²⁾
Greater than 660	49		%	49		%	50		%	50		%	50		%	—		(1	)%	49		%	50		%	(1	)%
621 - 660	19			19			19			19			19			—		—		19			19			—
620 or below	32			32			31			31			31			—		1		32			31			1
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business



																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Commercial Banking
Earnings:
Net interest income	$	514		$	489		$	508		$	513		$	517		5	%	(1	)%	$	1,003		$	1,023		(2	)%
Non-interest income	200			187			159			189			209			7		(4	)	387			396			(2	)
Total net revenue⁽⁶⁾⁽⁷⁾	714			676			667			702			726			6		(2	)	1,390			1,419			(2	)
Provision for credit losses	82			69			9			54			34			19		141		151			20			**
Non-interest expense	427			417			434			408			409			2		4		844			812			4
Income from continuing operations before income taxes	205			190			224			240			283			8		(28	)	395			587			(33	)
Income tax provision	48			44			52			56			66			9		(27	)	92			137			(33	)
Income from continuing operations, net of tax	$	157		$	146		$	172		$	184		$	217		8		(28	)	$	303		$	450		(33	)
Selected performance metrics:
Period-end loans held for investment	$	71,992		$	71,189		$	70,333		$	68,747		$	67,609		1		6		$	71,992		$	67,609		6
Average loans held for investment	71,997			71,438			69,680			68,036			66,364			1		8		71,719			65,776			9
Average yield on loans held for investment⁽⁶⁾⁽⁸⁾	4.75		%	4.62		%	4.67		%	4.55		%	4.43		%	13	bps	32	bps	4.68		%	4.30		%	38	bps
Period-end deposits	$	30,761		$	31,248		$	29,480		$	30,474		$	31,078		(2	)%	(1	)%	$	30,761		$	31,078		(1	)%
Average deposits	31,364			30,816			30,680			31,061			32,951			2		(5	)	31,092			33,501			(7	)
Average deposits interest rate	1.28		%	1.11		%	0.95		%	0.79		%	0.65		%	17	bps	63	bps	1.19		%	0.59		%	60	bps
Net charge-off (recovery) rate	0.09			0.08			0.10			0.16			(0.04		)	1		13		0.08			0.04			4
Nonperforming loan rate⁽³⁾	0.50			0.53			0.44			0.38			0.34			(3	)	16		0.50			0.34			16
Nonperforming asset rate⁽⁴⁾	0.50			0.53			0.45			0.41			0.37			(3	)	13		0.50			0.37			13
Risk category:⁽¹³⁾
Noncriticized	$	69,390		$	68,594		$	68,043		$	65,926		$	64,923		1	%	7	%	$	69,390		$	64,923		7	%
Criticized performing	2,211			2,094			1,848			2,204			2,088			6		6		2,211			2,088			6
Criticized nonperforming	360			378			312			259			229			(5	)	57		360			229			57
PCI loans	31			123			130			358			369			(75	)	(92	)	31			369			(92	)
Total commercial loans	$	71,992		$	71,189		$	70,333		$	68,747		$	67,609		1		6		$	71,992		$	67,609		6
Risk category as a percentage of period-end loans held for investment:⁽¹³⁾
Noncriticized	96.4		%	96.4		%	96.8		%	95.9		%	96.1		%	—		30	bps	96.4		%	96.1		%	30	bps
Criticized performing	3.1			2.9			2.6			3.2			3.1			20	bps	—		3.1			3.1			—
Criticized nonperforming	0.5			0.5			0.4			0.4			0.3			—		20		0.5			0.3			20
PCI loans	—			0.2			0.2			0.5			0.5			(20	)	(50	)	—			0.5			(50	)
Total commercial loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%					100.0		%	100.0		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total



																2019 Q2 vs.				Six Months Ended June 30,
	2019			2019			2018			2018			2018			2019		2018								2019 vs.
(Dollars in millions)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2019			2018			2018
Other
Earnings:
Net interest income (loss)	$	(8	)	$	33		$	6		$	41		$	29		**		**		$	25		$	68		(63	)%
Non-interest income (loss)⁽¹⁾	(26		)	(5		)	(11		)	(61		)	373			**		**		(31		)	346			**
Total net revenue (loss)⁽⁶⁾⁽⁷⁾	(34		)	28			(5		)	(20		)	402			**		**		(6		)	414			**
Benefit for credit losses	—			—			—			(1		)	(47		)	**		**		—			(48		)	**
Non-interest expense⁽¹⁴⁾	97			89			117			283			148			9	%	(34	)%	186			279			(33	)
Income (loss) from continuing operations before income taxes	(131		)	(61		)	(122		)	(302		)	301			115		**		(192		)	183			**
Income tax provision (benefit)	(109		)	(106		)	(340		)	(97		)	63			3		**		(215		)	(32		)	**
Income (loss) from continuing operations, net of tax	$	(22	)	$	45		$	218		$	(205	)	$	238		**		**		$	23		$	215		(89	)
Selected performance metrics:
Period-end loans held for investment	—			—			—			—			$	11		**		**		—			$	11		**
Average loans held for investment	—			—			—			—			21			**		**		—			34			**
Period-end deposits	$	18,554		$	18,420		$	21,677		$	20,086		22,185			1		(16	)	$	18,554		22,185			(16	)
Average deposits	18,106			19,522			20,635			20,972			22,561			(7	)	(20	)	18,809			22,992			(18	)
Total
Earnings:
Net interest income	$	5,746		$	5,791		$	5,820		$	5,786		$	5,551		(1	)%	4	%	$	11,537		$	11,269		2	%
Non-interest income	1,378			1,292			1,193			1,176			1,641			7		(16	)	2,670			2,832			(6	)
Total net revenue	7,124			7,083			7,013			6,962			7,192			1		(1	)	14,207			14,101			1
Provision for credit losses	1,342			1,693			1,638			1,268			1,276			(21	)	5		3,035			2,950			3
Non-interest expense	3,779			3,671			4,132			3,773			3,424			3		10		7,450			6,997			6
Income from continuing operations before income taxes	2,003			1,719			1,243			1,921			2,492			17		(20	)	3,722			4,154			(10	)
Income tax provision (benefit)	387			309			(21		)	420			575			25		(33	)	696			894			(22	)
Income from continuing operations, net of tax	$	1,616		$	1,410		$	1,264		$	1,501		$	1,917		15		(16	)	$	3,026		$	3,260		(7	)
Selected performance metrics:
Period-end loans held for investment	$	244,460		$	240,273		$	245,899		$	238,761		$	236,124		2		4		$	244,460		$	236,124		4
Average loans held for investment	242,653			241,959			241,371			236,766			240,758			—		1		242,307			245,218			(1	)
Period-end deposits	254,535			255,107			249,764			247,195			248,225			—		3		254,535			248,225			3
Average deposits	253,634			251,410			247,663			246,720			248,790			1		2		252,528			247,040			2

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)


⁽¹⁾	In 2018, we sold all of our consumer home loan portfolio and recognized a net gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million.

⁽²⁾

In August 2018, we accelerated charge-off recognition for certain domestic credit card accounts where the cardholder is deceased. This acceleration led to a one-time increase in net charge-offs of approximately $32 million, increasing the net charge-off rate for total credit card and domestic credit card by approximately 12 basis points and 13 basis points, respectively, for the third quarter of 2018.


⁽³⁾	Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category.


⁽⁴⁾	Nonperforming assets consist of nonperforming loans, real estate owned (“REO”) 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, REO and other foreclosed assets.


⁽⁵⁾	Represents foreign currency translation adjustments.


⁽⁶⁾	Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

⁽⁷⁾

In the first quarter of 2019, we made a change in how revenue is measured in our Commercial Banking business by revising the allocation of tax benefits on certain tax-advantaged investments. As such, prior period results have been recast to conform with the current period presentation. The result of this measurement change reduced the previously reported total net revenue in our Commercial Banking business by $30 million in Q1 2018, $32 million in Q2 2018, $26 million in Q3 2018, and $20 million in Q4 2018, with an offsetting increase in the Other category.


⁽⁸⁾	Average yield on loans held for investment is calculated based on annualized interest income for the period divided by average loans held for investment during the period for the respective loan category. Annualized interest income is computed based on the effective yield of the respective loan category and does not include any allocations, such as funds transfer pricing.


⁽⁹⁾	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average loans held for investment during the period for the respective loan category.


⁽¹⁰⁾	Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.

⁽¹¹⁾

Percentages represent period-end loans held for investment in each credit score category. Domestic card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.


⁽¹²⁾	Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.


⁽¹³⁾	Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.


⁽¹⁴⁾	Includes charges incurred as a result of restructuring activities.


^**	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, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Regulatory Capital Metrics
Common equity excluding AOCI	$	51,236		$	49,781		$	48,570		$	48,154		$	47,359
Adjustments:
AOCI⁽²⁾	170			(660		)	(1,263		)	(1,877		)	(1,793		)
Goodwill, net of related deferred tax liabilities	(14,365		)	(14,369		)	(14,373		)	(14,345		)	(14,368		)
Intangible assets, net of related deferred tax liabilities	(194		)	(223		)	(254		)	(284		)	(328		)
Other	(401		)	113			391			817			735
Common equity Tier 1 capital	$	36,446		$	34,642		$	33,071		$	32,465		$	31,605
Tier 1 capital	$	40,806		$	39,002		$	37,431		$	36,826		$	35,965
Total capital⁽³⁾	47,919			46,042			44,645			43,947			43,082
Risk-weighted assets	295,280			291,483			294,950			288,694			285,223
Adjusted average assets⁽⁴⁾	356,518			355,781			350,606			346,297			349,222
Capital Ratios
Common equity Tier 1 capital⁽⁵⁾	12.3		%	11.9		%	11.2		%	11.2		%	11.1		%
Tier 1 capital⁽⁶⁾	13.8			13.4			12.7			12.8			12.6
Total capital⁽⁷⁾	16.2			15.8			15.1			15.2			15.1
Tier 1 leverage⁽⁴⁾	11.4			11.0			10.7			10.6			10.3
Tangible common equity (“TCE”)⁽⁸⁾	10.2			9.6			9.1			9.0			8.8

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.



	2019									2019									Six Months Ended
	Q2									Q1									June 30, 2019
(Dollars in millions, except per share data and as noted)	Reported Results			Adj.⁽⁹⁾			Adjusted Results			Reported Results			Adj.⁽⁹⁾			Adjusted Results			Reported Results			Adj.⁽⁹⁾			Adjusted Results
Selected income statement data:
Net interest income	$	5,746		—			$	5,746		$	5,791		—			$	5,791		$	11,537		—			$	11,537
Non-interest income	1,378			$	1		1,379			1,292			—			1,292			2,670			$	1		2,671
Total net revenue	7,124			1			7,125			7,083			—			7,083			14,207			1			14,208
Provision for credit losses	1,342			—			1,342			1,693			—			1,693			3,035			—			3,035
Non-interest expense	3,779			(81		)	3,698			3,671			$	(25	)	3,646			7,450			(106		)	7,344
Income from continuing operations before income taxes	2,003			82			2,085			1,719			25			1,744			3,722			107			3,829
Income tax provision	387			19			406			309			6			315			696			25			721
Income from continuing operations, net of tax	1,616			63			1,679			1,410			19			1,429			3,026			82			3,108
Income (loss) from discontinued operations, net of tax	9			—			9			2			—			2			11			—			11
Net income	1,625			63			1,688			1,412			19			1,431			3,037			82			3,119
Dividends and undistributed earnings allocated to participating securities⁽¹⁰⁾	(12		)	(1		)	(13		)	(12		)	—			(12		)	(24		)	(1		)	(25		)
Preferred stock dividends	(80		)	—			(80		)	(52		)	—			(52		)	(132		)	—			(132		)
Net income available to common stockholders	$	1,533		$	62		$	1,595		$	1,348		$	19		$	1,367		$	2,881		$	81		$	2,962
Selected performance metrics:
Diluted EPS⁽¹⁰⁾	$	3.24		$	0.13		$	3.37		$	2.86		$	0.04		$	2.90		$	6.10		$	0.17		$	6.27
Efficiency ratio	53.05		%	(115		)bps	51.90		%	51.83		%	(35		)bps	51.48		%	52.44		%	(75		)bps	51.69		%
Operating efficiency ratio	45.38			(114		)	44.24			44.53			(35		)	44.18			44.96			(75		)	44.21



	2018									2018									Six Months Ended
	Q2									Q1									June 30, 2018
(Dollars in millions, except per share data and as noted)	Reported Results			Adj.⁽⁹⁾			Adjusted Results			Reported Results			Adj.⁽⁹⁾			Adjusted Results			Reported Results			Adj.⁽⁹⁾			Adjusted Results
Selected income statement data:
Net interest income	$	5,551		$	26		$	5,577		$	5,718		—			$	5,718		$	11,269		$	26		$	11,295
Non-interest income	1,641			(361		)	1,280			1,191			$	2		1,193			2,832			(359		)	2,473
Total net revenue	7,192			(335		)	6,857			6,909			2			6,911			14,101			(333		)	13,768
Provision for credit losses	1,276			46			1,322			1,674			—			1,674			2,950			46			2,996
Non-interest expense	3,424			(45		)	3,379			3,573			(17		)	3,556			6,997			(62		)	6,935
Income from continuing operations before income taxes	2,492			(336		)	2,156			1,662			19			1,681			4,154			(317		)	3,837
Income tax provision	575			(92		)	483			319			4			323			894			(88		)	806
Income from continuing operations, net of tax	1,917			(244		)	1,673			1,343			15			1,358			3,260			(229		)	3,031
Income (loss) from discontinued operations, net of tax	(11		)	—			(11		)	3			—			3			(8		)	—			(8		)
Net income	1,906			(244		)	1,662			1,346			15			1,361			3,252			(229		)	3,023
Dividends and undistributed earnings allocated to participating securities⁽¹⁰⁾	(12		)	2			(10		)	(10		)	—			(10		)	(23		)	2			(21		)
Preferred stock dividends	(80		)	—			(80		)	(52		)	—			(52		)	(132		)	—			(132		)
Net income available to common stockholders	$	1,814		$	(242	)	$	1,572		$	1,284		$	15		$	1,299		$	3,097		$	(227	)	$	2,870
Selected performance metrics:
Diluted EPS⁽¹⁰⁾	$	3.71		$	(0.49	)	$	3.22		$	2.62		$	0.03		$	2.65		$	6.33		$	(0.47	)	$	5.86
Efficiency ratio	47.61		%	167		bps	49.28		%	51.72		%	(27		)bps	51.45		%	49.62		%	75		bps	50.37		%
Operating efficiency ratio	41.70			138			43.08			45.72			(26		)	45.46			43.67			61			44.28

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of TCE, tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. We consider these metrics to be key financial performance measures that management uses in assessing capital adequacy and the level of returns generated. While our non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.



	2019			2019			2018			2018			2018
(Dollars in millions)	Q2			Q1			Q4			Q3			Q2
Tangible Common Equity (Period-End)
Stockholders’ equity	$	55,767		$	53,481		$	51,668		$	50,638		$	49,926
Goodwill and intangible assets⁽¹¹⁾	(14,886		)	(14,904		)	(14,941		)	(14,945		)	(15,013		)
Noncumulative perpetual preferred stock	(4,360		)	(4,360		)	(4,360		)	(4,360		)	(4,360		)
Tangible common equity	$	36,521		$	34,217		$	32,367		$	31,333		$	30,553
Tangible Common Equity (Average)
Stockholders’ equity	$	54,570		$	52,720		$	51,114		$	50,768		$	49,827
Goodwill and intangible assets⁽¹¹⁾	(14,900		)	(14,932		)	(14,953		)	(14,982		)	(15,043		)
Noncumulative perpetual preferred stock	(4,360		)	(4,360		)	(4,360		)	(4,360		)	(4,360		)
Tangible common equity	$	35,310		$	33,428		$	31,801		$	31,426		$	30,424
Tangible Assets (Period-End)
Total assets	$	373,619		$	373,191		$	372,538		$	362,909		$	363,989
Goodwill and intangible assets⁽¹¹⁾	(14,886		)	(14,904		)	(14,941		)	(14,945		)	(15,013		)
Tangible assets	$	358,733		$	358,287		$	357,597		$	347,964		$	348,976
Tangible Assets (Average)
Total assets	$	371,095		$	370,394		$	365,243		$	360,937		$	363,929
Goodwill and intangible assets⁽¹¹⁾	(14,900		)	(14,932		)	(14,953		)	(14,982		)	(15,043		)
Tangible assets	$	356,195		$	355,462		$	350,290		$	345,955		$	348,886

__________


⁽¹⁾	Regulatory capital metrics and capital ratios as of June 30, 2019 are preliminary and therefore subject to change.


⁽²⁾	Amounts presented are net of tax.


⁽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⁾	The adjustments for the following periods consist of:



	2019		2019		Six Months Ended		2018			2018		Six Months Ended
(Dollars in millions)	Q2		Q1		June 30, 2019		Q2			Q1		June 30, 2018
Walmart launch and related integration expenses	$	54	$	25	$	79	—			—		—
Net gains on the sales of exited businesses	—		—		—		$	(400	)	—		$	(400	)
U.K. Payment Protection Insurance customer refund reserve build (“U.K. PPI Reserve”)	—		—		—		49			—		49
Restructuring charges	28		—		28		15			$	19	34
Total	82		25		107		(336		)	19		(317		)
Income tax provision (benefit)	19		6		25		(92		)	4		(88		)
Net income	$	63	$	19	$	82	$	(244	)	$	15	$	(229	)


⁽¹⁰⁾	Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total.


⁽¹¹⁾	Includes impact of related deferred taxes.