Exhibit

EX-99.2 3 q32019earningsrelease-ex992.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement⁽¹⁾⁽²⁾

Third 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 September 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 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)	2019			2019			2019			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except per share data and as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2019			2018			2018
Income Statement
Net interest income	$	5,737		$	5,746		$	5,791		$	5,820		$	5,786		—		(1	)%	$	17,274		$	17,055		1	%
Non-interest income	1,222			1,378			1,292			1,193			1,176			(11	)%	4		3,892			4,008			(3	)
Total net revenue⁽¹⁾	6,959			7,124			7,083			7,013			6,962			(2	)	—		21,166			21,063			—
Provision for credit losses	1,383			1,342			1,693			1,638			1,268			3		9		4,418			4,218			5
Non-interest expense:
Marketing	501			546			517			831			504			(8	)	(1	)	1,564			1,343			16
Operating expense	3,371			3,233			3,154			3,301			3,269			4		3		9,758			9,427			4
Total non-interest expense	3,872			3,779			3,671			4,132			3,773			2		3		11,322			10,770			5
Income from continuing operations before income taxes	1,704			2,003			1,719			1,243			1,921			(15	)	(11	)	5,426			6,075			(11	)
Income tax provision (benefit)	375			387			309			(21		)	420			(3	)	(11	)	1,071			1,314			(18	)
Income from continuing operations, net of tax	1,329			1,616			1,410			1,264			1,501			(18	)	(11	)	4,355			4,761			(9	)
Income (loss) from discontinued operations, net of tax	4			9			2			(3		)	1			(56	)	**		15			(7		)	**
Net income	1,333			1,625			1,412			1,261			1,502			(18	)	(11	)	4,370			4,754			(8	)
Dividends and undistributed earnings allocated to participating securities⁽²⁾	(10		)	(12		)	(12		)	(9		)	(9		)	(17	)	11		(34		)	(32		)	6
Preferred stock dividends	(53		)	(80		)	(52		)	(80		)	(53		)	(34	)	—		(185		)	(185		)	—
Net income available to common stockholders	$	1,270		$	1,533		$	1,348		$	1,172		$	1,440		(17	)	(12	)	$	4,151		$	4,537		(9	)
Common Share Statistics
Basic earnings per common share:⁽²⁾
Net income from continuing operations	$	2.70		$	3.24		$	2.87		$	2.50		$	3.01		(17	)%	(10	)%	$	8.80		$	9.40		(6	)%
Income (loss) from discontinued operations	0.01			0.02			—			(0.01		)	—			(50	)	**		0.03			(0.01		)	**
Net income per basic common share	$	2.71		$	3.26		$	2.87		$	2.49		$	3.01		(17	)	(10	)	$	8.83		$	9.39		(6	)
Diluted earnings per common share:⁽²⁾
Net income from continuing operations	$	2.68		$	3.22		$	2.86		$	2.49		$	2.99		(17	)	(10	)	$	8.76		$	9.33		(6	)
Income (loss) from discontinued operations	0.01			0.02			—			(0.01		)	—			(50	)	**		0.03			(0.01		)	**
Net income per diluted common share	$	2.69		$	3.24		$	2.86		$	2.48		$	2.99		(17	)	(10	)	$	8.79		$	9.32		(6	)
Weighted-average common shares outstanding (in millions):
Basic	469.5			470.8			469.4			470.0			477.8			—		(2	)	469.9			483.2			(3	)
Diluted	471.8			473.0			471.6			472.7			480.9			—		(2	)	472.1			486.7			(3	)
Common shares outstanding (period-end, in millions)	465.7			470.3			469.6			467.7			473.7			(1	)	(2	)	465.7			473.7			(2	)
Dividends declared and paid per common share	$	0.40		$	0.40		$	0.40		$	0.40		$	0.40		—		—		$	1.20		$	1.20		—
Tangible book value per common share (period-end)⁽³⁾	80.46			77.65			72.86			69.20			66.15			4		22		80.46			66.15			22



											2019 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions)	2019		2019		2019		2018		2018		2019		2018						2019 vs.
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2019		2018		2018
Balance Sheet (Period-End)
Loans held for investment	$	249,355	$	244,460	$	240,273	$	245,899	$	238,761	2	%	4	%	$	249,355	$	238,761	4	%
Interest-earning assets	344,643		339,160		340,071		341,293		331,293		2		4		344,643		331,293		4
Total assets	378,810		373,619		373,191		372,538		362,909		1		4		378,810		362,909		4
Interest-bearing deposits	234,084		231,161		230,199		226,281		222,356		1		5		234,084		222,356		5
Total deposits	257,148		254,535		255,107		249,764		247,195		1		4		257,148		247,195		4
Borrowings	50,149		49,233		50,358		58,905		52,205		2		(4	)	50,149		52,205		(4	)
Common equity	52,412		51,406		49,120		47,307		46,277		2		13		52,412		46,277		13
Total stockholders’ equity	58,235		55,767		53,481		51,668		50,638		4		15		58,235		50,638		15
Balance Sheet (Average Balances)
Loans held for investment	$	246,147	$	242,653	$	241,959	$	241,371	$	236,766	1	%	4	%	$	243,602	$	242,369	1	%
Interest-earning assets	340,949		338,026		337,793		334,714		330,272		1		3		338,936		331,318		2
Total assets	374,905		371,095		370,394		365,243		360,937		1		4		372,148		362,293		3
Interest-bearing deposits	232,063		230,452		227,572		222,827		221,431		1		5		230,045		221,400		4
Total deposits	255,082		253,634		251,410		247,663		246,720		1		3		253,389		246,932		3
Borrowings	49,413		49,982		53,055		53,994		51,684		(1	)	(4	)	50,804		52,858		(4	)
Common equity	52,566		50,209		48,359		46,753		46,407		5		13		50,393		45,521		11
Total stockholders’ equity	57,245		54,570		52,720		51,114		50,768		5		13		54,861		49,882		10

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated



																2019 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions, except as noted)	2019			2019			2019			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2019			2018			2018
Performance Metrics
Net interest income growth (period over period)	—			(1		)%	—			1		%	4		%	**		**		1		%	2		%	**
Non-interest income growth (period over period)	(11		)%	7			8		%	1			(28		)	**		**		(3		)	12			**
Total net revenue growth (period over period)	(2		)	1			1			1			(3		)	**		**		—			4			**
Total net revenue margin⁽⁴⁾	8.16			8.43			8.39			8.38			8.43			(27	)bps	(27	)bps	8.33			8.48			(15	)bps
Net interest margin⁽⁵⁾	6.73			6.80			6.86			6.96			7.01			(7	)	(28	)	6.80			6.86			(6	)
Return on average assets	1.42			1.74			1.52			1.38			1.66			(32	)	(24	)	1.56			1.75			(19	)
Return on average tangible assets⁽⁶⁾	1.48			1.82			1.59			1.44			1.74			(34	)	(26	)	1.63			1.83			(20	)
Return on average common equity⁽⁷⁾	9.63			12.14			11.13			10.05			12.40			(251	)	(277	)	10.94			13.31			(237	)
Return on average tangible common equity⁽⁸⁾	13.45			17.26			16.11			14.78			18.32			(381	)	(487	)	15.54			19.88			(434	)
Non-interest expense as a percentage of average loans held for investment	6.29			6.23			6.07			6.85			6.37			6		(8	)	6.20			5.92			28
Efficiency ratio⁽⁹⁾	55.64			53.05			51.83			58.92			54.19			259		145		53.49			51.13			236
Operating efficiency ratio⁽¹⁰⁾	48.44			45.38			44.53			47.07			46.95			306		149		46.10			44.76			134
Effective income tax rate for continuing operations	22.0			19.3			18.0			(1.7		)	21.9			270		10		19.7			21.6			(190	)
Employees (period-end, in thousands)	52.1			50.7			48.8			47.6			47.6			3	%	9	%	52.1			47.6			9	%
Credit Quality Metrics
Allowance for loan and lease losses	$	7,037		$	7,133		$	7,313		$	7,220		$	7,219		(1	)%	(3	)%	$	7,037		$	7,219		(3	)%
Allowance as a percentage of loans held for investment	2.82		%	2.92		%	3.04		%	2.94		%	3.02		%	(10	)bps	(20	)bps	2.82		%	3.02		%	(20	)bps
Net charge-offs	$	1,462		$	1,508		$	1,599		$	1,610		$	1,425		(3	)%	3	%	$	4,569		$	4,502		1	%
Net charge-off rate⁽¹¹⁾	2.38		%	2.48		%	2.64		%	2.67		%	2.41		%	(10	)bps	(3	)bps	2.50		%	2.48		%	2	bps
30+ day performing delinquency rate	3.28			3.15			3.23			3.62			3.28			13		—		3.28			3.28			—
30+ day delinquency rate	3.51			3.35			3.40			3.84			3.48			16		3		3.51			3.48			3
Capital Ratios⁽¹²⁾
Common equity Tier 1 capital	12.5		%	12.3		%	11.9		%	11.2		%	11.2		%	20	bps	130	bps	12.5		%	11.2		%	130	bps
Tier 1 capital	14.4			13.8			13.4			12.7			12.8			60		160		14.4			12.8			160
Total capital	16.8			16.2			15.8			15.1			15.2			60		160		16.8			15.2			160
Tier 1 leverage	11.9			11.4			11.0			10.7			10.6			50		130		11.9			10.6			130
Tangible common equity (“TCE”)⁽¹³⁾	10.3			10.2			9.6			9.1			9.0			10		130		10.3			9.0			130

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income



																2019 Q3 vs.				Nine Months Ended September 30,
	2019			2019			2019			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except per share data and as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2019			2018			2018
Interest income:
Loans, including loans held for sale	$	6,429		$	6,383		$	6,368		$	6,358		$	6,247		1	%	3	%	$	19,180		$	18,370		4	%
Investment securities	583			629			655			627			593			(7	)	(2	)	1,867			1,584			18
Other	63			64			69			63			55			(2	)	15		196			174			13
Total interest income	7,075			7,076			7,092			7,048			6,895			—		3		21,243			20,128			6
Interest expense:
Deposits	901			870			817			756			681			4		32		2,588			1,842			40
Securitized debt obligations	123			139			143			138			127			(12	)	(3	)	405			358			13
Senior and subordinated notes	299			310			314			297			288			(4	)	4		923			828			11
Other borrowings	15			11			27			37			13			36		15		53			45			18
Total interest expense	1,338			1,330			1,301			1,228			1,109			1		21		3,969			3,073			29
Net interest income	5,737			5,746			5,791			5,820			5,786			—		(1	)	17,274			17,055			1
Provision for credit losses	1,383			1,342			1,693			1,638			1,268			3		9		4,418			4,218			5
Net interest income after provision for credit losses	4,354			4,404			4,098			4,182			4,518			(1	)	(4	)	12,856			12,837			—
Non-interest income:
Interchange fees, net	790			820			758			743			714			(4	)	11		2,368			2,080			14
Service charges and other customer-related fees	283			352			353			352			410			(20	)	(31	)	988			1,233			(20	)
Net securities gains (losses)	5			15			24			(20		)	(196		)	(67	)	**		44			(189		)	**
Other	144			191			157			118			248			(25	)	(42	)	492			884			(44	)
Total non-interest income	1,222			1,378			1,292			1,193			1,176			(11	)	4		3,892			4,008			(3	)
Non-interest expense:
Salaries and associate benefits	1,605			1,558			1,573			1,345			1,432			3		12		4,736			4,382			8
Occupancy and equipment	519			521			493			610			515			—		1		1,533			1,508			2
Marketing	501			546			517			831			504			(8	)	(1	)	1,564			1,343			16
Professional services	314			314			291			426			275			—		14		919			719			28
Communications and data processing	312			329			303			326			311			(5	)	—		944			934			1
Amortization of intangibles	25			29			30			43			44			(14	)	(43	)	84			131			(36	)
Other⁽¹⁴⁾	596			482			464			551			692			24		(14	)	1,542			1,753			(12	)
Total non-interest expense	3,872			3,779			3,671			4,132			3,773			2		3		11,322			10,770			5
Income from continuing operations before income taxes	1,704			2,003			1,719			1,243			1,921			(15	)	(11	)	5,426			6,075			(11	)
Income tax provision (benefit)	375			387			309			(21		)	420			(3	)	(11	)	1,071			1,314			(18	)
Income from continuing operations, net of tax	1,329			1,616			1,410			1,264			1,501			(18	)	(11	)	4,355			4,761			(9	)
Income (loss) from discontinued operations, net of tax	4			9			2			(3		)	1			(56	)	**		15			(7		)	**
Net income	1,333			1,625			1,412			1,261			1,502			(18	)	(11	)	4,370			4,754			(8	)
Dividends and undistributed earnings allocated to participating securities⁽²⁾	(10		)	(12		)	(12		)	(9		)	(9		)	(17	)	11		(34		)	(32		)	6
Preferred stock dividends	(53		)	(80		)	(52		)	(80		)	(53		)	(34	)	—		(185		)	(185		)	—
Net income available to common stockholders	$	1,270		$	1,533		$	1,348		$	1,172		$	1,440		(17	)	(12	)	$	4,151		$	4,537		(9	)

																2019 Q3 vs.				Nine Months Ended September 30,
	2019			2019			2019			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except per share data and as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2019			2018			2018
Basic earnings per common share:⁽²⁾
Net income from continuing operations	$	2.70		$	3.24		$	2.87		$	2.50		$	3.01		(17	)%	(10	)%	$	8.80		$	9.40		(6	)%
Income (loss) from discontinued operations	0.01			0.02			—			(0.01		)	—			(50	)	**		0.03			(0.01		)	**
Net income per basic common share	$	2.71		$	3.26		$	2.87		$	2.49		$	3.01		(17	)	(10	)	$	8.83		$	9.39		(6	)
Diluted earnings per common share:⁽²⁾
Net income from continuing operations	$	2.68		$	3.22		$	2.86		$	2.49		$	2.99		(17	)	(10	)	$	8.76		$	9.33		(6	)
Income (loss) from discontinued operations	0.01			0.02			—			(0.01		)	—			(50	)	**		0.03			(0.01		)	**
Net income per diluted common share	$	2.69		$	3.24		$	2.86		$	2.48		$	2.99		(17	)	(10	)	$	8.79		$	9.32		(6	)
Weighted-average common shares outstanding (in millions):
Basic common shares	469.5			470.8			469.4			470.0			477.8			—		(2	)	469.9			483.2			(3	)
Diluted common shares	471.8			473.0			471.6			472.7			480.9			—		(2	)	472.1			486.7			(3	)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets



																2019 Q3 vs.
	2019			2019			2019			2018			2018			2019		2018
(Dollars in millions)	Q3			Q2			Q1			Q4			Q3			Q2		Q3
Assets:
Cash and cash equivalents:
Cash and due from banks	$	4,452		$	5,184		$	4,572		$	4,768		$	4,547		(14	)%	(2	)%
Interest-bearing deposits and other short-term investments	12,668			9,927			12,897			8,418			6,335			28		100
Total cash and cash equivalents	17,120			15,111			17,469			13,186			10,882			13		57
Restricted cash for securitization investors	417			710			1,969			303			746			(41	)	(44	)
Investment securities:
Securities available for sale	46,168			45,658			45,888			46,150			47,384			1		(3	)
Securities held to maturity	33,894			35,475			36,503			36,771			34,631			(4	)	(2	)
Total investment securities	80,062			81,133			82,391			82,921			82,015			(1	)	(2	)
Loans held for investment:
Unsecuritized loans held for investment	215,892			211,556			208,591			211,702			204,796			2		5
Loans held in consolidated trusts	33,463			32,904			31,682			34,197			33,965			2		(1	)
Total loans held for investment	249,355			244,460			240,273			245,899			238,761			2		4
Allowance for loan and lease losses	(7,037		)	(7,133		)	(7,313		)	(7,220		)	(7,219		)	(1	)	(3	)
Net loans held for investment	242,318			237,327			232,960			238,679			231,542			2		5
Loans held for sale, at lower of cost or fair value	1,245			1,829			905			1,192			1,402			(32	)	(11	)
Premises and equipment, net	4,311			4,243			4,205			4,191			4,149			2		4
Interest receivable	1,627			1,544			1,615			1,614			1,518			5		7
Goodwill	14,624			14,545			14,546			14,544			14,513			1		1
Other assets	17,086			17,177			17,131			15,908			16,142			(1	)	6
Total assets	$	378,810		$	373,619		$	373,191		$	372,538		$	362,909		1		4



																2019 Q3 vs.
	2019			2019			2019			2018			2018			2019		2018
(Dollars in millions)	Q3			Q2			Q1			Q4			Q3			Q2		Q3
Liabilities:
Interest payable	$	370		$	437		$	382		$	458		$	391		(15	)%	(5	)%
Deposits:
Non-interest-bearing deposits	23,064			23,374			24,908			23,483			24,839			(1	)	(7	)
Interest-bearing deposits	234,084			231,161			230,199			226,281			222,356			1		5
Total deposits	257,148			254,535			255,107			249,764			247,195			1		4
Securitized debt obligations	18,910			16,959			19,273			18,307			18,649			12		1
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	464			359			335			352			384			29		21
Senior and subordinated notes	30,682			31,822			30,645			30,826			31,291			(4	)	(2	)
Other borrowings	93			93			105			9,420			1,881			—		(95	)
Total other debt	31,239			32,274			31,085			40,598			33,556			(3	)	(7	)
Other liabilities	12,908			13,647			13,863			11,743			12,480			(5	)	3
Total liabilities	320,575			317,852			319,710			320,870			312,271			1		3

Stockholders’ equity:
Preferred stock	0			0			0			0			0			—		—
Common stock	7			7			7			7			7			—		—
Additional paid-in capital, net	33,826			32,262			32,160			32,040			31,978			5		6
Retained earnings	39,476			38,386			37,030			35,875			34,883			3		13
Accumulated other comprehensive income (loss)	453			170			(660		)	(1,263		)	(1,877		)	**		**
Treasury stock, at cost	(15,527		)	(15,058		)	(15,056		)	(14,991		)	(14,353		)	3		8
Total stockholders’ equity	58,235			55,767			53,481			51,668			50,638			4		15
Total liabilities and stockholders’ equity	$	378,810		$	373,619		$	373,191		$	372,538		$	362,909		1		4

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 $330 million in Q3 2019, $318 million in Q2 2019, $376 million in Q1 2019, $391 million in Q4 2018 and $305 million in Q3 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 Q3 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.


⁽¹⁴⁾	Includes $22 million of net Cybersecurity Incident expenses in Q3 2019, consisting of $49 million of expenses and $27 million of probable insurance recoveries.


**	Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



	2019 Q3						2019 Q2						2018 Q3
	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	$	247,419	$	6,429	10.39	%	$	243,831	$	6,383	10.47	%	$	238,150	$	6,247	10.49	%
Investment securities	80,762		583		2.88		82,383		629		3.05		83,894		593		2.83
Cash equivalents and other	12,768		63		2.00		11,812		64		2.16		8,228		55		2.66
Total interest-earning assets	$	340,949	$	7,075	8.30		$	338,026	$	7,076	8.37		$	330,272	$	6,895	8.35
Interest-bearing liabilities:
Interest-bearing deposits	$	232,063	$	901	1.55		$	230,452	$	870	1.51		$	221,431	$	681	1.23
Securitized debt obligations	16,750		123		2.94		18,262		139		3.04		18,917		127		2.68
Senior and subordinated notes	31,220		299		3.84		30,630		310		4.05		31,660		288		3.63
Other borrowings and liabilities	2,698		15		2.14		2,322		11		1.91		3,084		13		1.67
Total interest-bearing liabilities	$	282,731	$	1,338	1.89		$	281,666	$	1,330	1.89		$	275,092	$	1,109	1.62
Net interest income/spread			$	5,737	6.41				$	5,746	6.48				$	5,786	6.73
Impact of non-interest-bearing funding					0.32						0.32						0.28
Net interest margin					6.73	%					6.80	%					7.01	%



	Nine Months Ended September 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	$	244,743	$	19,180	10.45	%	$	243,653	$	18,370	10.05	%
Investment securities	82,264		1,867		3.03		77,819		1,584		2.71
Cash equivalents and other	11,929		196		2.19		9,846		174		2.36
Total interest-earning assets	$	338,936	$	21,243	8.36		$	331,318	$	20,128	8.10
Interest-bearing liabilities:
Interest-bearing deposits	$	230,045	$	2,588	1.50		$	221,400	$	1,842	1.11
Securitized debt obligations	17,912		405		3.02		19,251		358		2.46
Senior and subordinated notes	30,897		923		3.98		31,452		828		3.51
Other borrowings and liabilities	3,228		53		2.19		4,674		45		1.28
Total interest-bearing liabilities	$	282,082	$	3,969	1.88		$	276,777	$	3,073	1.49
Net interest income/spread			$	17,274	6.48				$	17,055	6.61
Impact of non-interest-bearing funding					0.32						0.25
Net interest margin					6.80	%					6.86	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics



											2019 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions, except as noted)	2019 Q3		2019 Q2		2019 Q1		2018 Q4		2018 Q3		2019 Q2		2018 Q3		2019		2018		2019 vs. 2018
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	104,664	$	102,959	$	101,052	$	107,350	$	101,564	2	%	3	%	$	104,664	$	101,564	3	%
International card businesses	9,017		9,182		8,784		9,011		9,121		(2	)	(1	)	9,017		9,121		(1	)
Total credit card	113,681		112,141		109,836		116,361		110,685		1		3		113,681		110,685		3
Consumer banking:
Auto	59,278		57,556		56,444		56,341		56,422		3		5		59,278		56,422		5
Retail banking	2,737		2,771		2,804		2,864		2,907		(1	)	(6	)	2,737		2,907		(6	)
Total consumer banking	62,015		60,327		59,248		59,205		59,329		3		5		62,015		59,329		5
Commercial banking:
Commercial and multifamily real estate	30,009		29,861		28,984		28,899		29,064		—		3		30,009		29,064		3
Commercial and industrial	43,650		42,125		42,197		41,091		39,325		4		11		43,650		39,325		11
Total commercial lending	73,659		71,986		71,181		69,990		68,389		2		8		73,659		68,389		8
Small-ticket commercial real estate	—		6		8		343		358		**		**		—		358		**
Total commercial banking	73,659		71,992		71,189		70,333		68,747		2		7		73,659		68,747		7
Total loans held for investment	$	249,355	$	244,460	$	240,273	$	245,899	$	238,761	2		4		$	249,355	$	238,761	4
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	103,426	$	101,930	$	102,667	$	103,391	$	100,566	1	%	3	%	$	102,677	$	99,970	3	%
International card businesses	8,945		8,868		8,789		8,958		8,944		1		—		8,868		8,998		(1	)
Total credit card	112,371		110,798		111,456		112,349		109,510		1		3		111,545		108,968		2
Consumer banking:
Auto	58,517		57,070		56,234		56,469		56,297		3		4		57,282		55,320		4
Home loan⁽¹⁾	—		—		—		—		—		**		**		—		8,377		**
Retail banking	2,752		2,788		2,831		2,873		2,923		(1	)	(6	)	2,790		3,144		(11	)
Total consumer banking	61,269		59,858		59,065		59,342		59,220		2		3		60,072		66,841		(10	)
Commercial banking:
Commercial and multifamily real estate	29,698		29,514		29,034		28,855		28,354		1		5		29,418		27,406		7
Commercial and industrial	42,807		42,476		42,132		40,476		39,318		1		9		42,474		38,754		10
Total commercial lending	72,505		71,990		71,166		69,331		67,672		1		7		71,892		66,160		9
Small-ticket commercial real estate	2		7		272		349		364		(71	)	(99	)	93		378		(75	)
Total commercial banking	72,507		71,997		71,438		69,680		68,036		1		7		71,985		66,538		8
Other loans	—		—		—		—		—		**		**		—		22		**
Total average loans held for investment	$	246,147	$	242,653	$	241,959	$	241,371	$	236,766	1		4		$	243,602	$	242,369	1



											2019 Q3 vs.				Nine Months Ended September 30,
	2019 Q3		2019 Q2		2019 Q1		2018 Q4		2018 Q3		2019 Q2		2018 Q3		2019		2018		2019 vs. 2018
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card⁽²⁾	4.12	%	4.86	%	5.04	%	4.64	%	4.35	%	(74	)bps	(23	)bps	4.67	%	4.78	%	(11	)bps
International card businesses	3.78		3.63		3.20		4.22		1.92		15		186		3.54		2.85		69
Total credit card⁽²⁾	4.09		4.76		4.90		4.61		4.15		(67	)	(6	)	4.58		4.62		(4	)
Consumer banking:
Auto	1.60		1.09		1.44		1.98		1.73		51		(13	)	1.38		1.53		(15	)
Retail banking	2.55		2.42		2.56		2.56		2.62		13		(7	)	2.51		2.18		33
Total consumer banking	1.64		1.15		1.49		2.01		1.77		49		(13	)	1.43		1.36		7
Commercial banking:
Commercial and multifamily real estate	0.02		—		—		(0.01	)	0.04		2		(2	)	0.01		0.01		—
Commercial and industrial	0.55		0.15		0.13		0.17		0.25		40		30		0.28		0.13		15
Total commercial lending	0.33		0.09		0.08		0.10		0.16		24		17		0.17		0.08		9
Small-ticket commercial real estate	**		**		0.23		0.13		0.56		**		**		**		(0.02	)	**
Total commercial banking	0.33		0.09		0.08		0.10		0.16		24		17		0.17		0.08		9
Total net charge-offs	2.38		2.48		2.64		2.67		2.41		(10	)	(3	)	2.50		2.48		2
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	3.71	%	3.40	%	3.72	%	4.04	%	3.80	%	31	bps	(9	)bps	3.71	%	3.80	%	(9	)bps
International card businesses	3.52		3.40		3.61		3.52		3.55		12		(3	)	3.52		3.55		(3	)
Total credit card	3.69		3.40		3.71		4.00		3.78		29		(9	)	3.69		3.78		(9	)
Consumer banking:
Auto	6.47		6.10		5.78		6.95		6.27		37		20		6.47		6.27		20
Retail banking	1.01		0.93		0.84		1.01		0.80		8		21		1.01		0.80		21
Total consumer banking	6.23		5.87		5.55		6.67		6.01		36		22		6.23		6.01		22
Nonperforming Loans and Nonperforming Assets Rates⁽³⁾⁽⁴⁾
Credit card:
International card businesses	0.25	%	0.25	%	0.26	%	0.25	%	0.22	%	—		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	0.73		0.64		0.57		0.80		0.70		9	bps	3		0.73		0.70		3
Retail banking	0.91		1.02		1.10		1.04		1.13		(11	)	(22	)	0.91		1.13		(22	)
Total consumer banking	0.74		0.66		0.59		0.81		0.72		8		2		0.74		0.72		2
Commercial banking:
Commercial and multifamily real estate	0.12		0.14		0.24		0.29		0.13		(2	)	(1	)	0.12		0.13		(1	)
Commercial and industrial	0.95		0.74		0.71		0.54		0.55		21		40		0.95		0.55		40
Total commercial lending	0.61		0.49		0.52		0.44		0.37		12		24		0.61		0.37		24
Small-ticket commercial real estate	**		**		**		1.80		1.65		**		**		**		1.65		**
Total commercial banking	0.61		0.50		0.53		0.44		0.38		11		23		0.61		0.38		23
Total nonperforming loans	0.37		0.32		0.31		0.33		0.30		5		7		0.37		0.30		7
Total nonperforming assets	0.40		0.34		0.33		0.35		0.33		6		7		0.40		0.33		7

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



	Three Months Ended September 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 June 30, 2019	$	4,925		$	417		$	5,342		$	997		$	58		$	1,055		$	736		$	7,133
Charge-offs	(1,403		)	(128		)	(1,531		)	(468		)	(21		)	(489		)	(66		)	(2,086		)
Recoveries	338			42			380			234			4			238			6			624
Net charge-offs	(1,065		)	(86		)	(1,151		)	(234		)	(17		)	(251		)	(60		)	(1,462		)
Provision for loan and lease losses	1,010			77			1,087			189			14			203			84			1,374
Allowance build (release) for loan and lease losses	(55		)	(9		)	(64		)	(45		)	(3		)	(48		)	24			(88		)
Other changes⁽⁵⁾	—			(8		)	(8		)	—			—			—			—			(8		)
Balance as of September 30, 2019	4,870			400			5,270			952			55			1,007			760			7,037
Reserve for unfunded lending commitments:
Balance as of June 30, 2019	—			—			—			—			4			4			140			144
Provision for losses on unfunded lending commitments	—			—			—			—			—			—			9			9
Balance as of September 30, 2019	—			—			—			—			4			4			149			153
Combined allowance and reserve as of September 30, 2019	$	4,870		$	400		$	5,270		$	952		$	59		$	1,011		$	909		$	7,190



	Nine Months Ended September 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	(4,635		)	(389		)	(5,024		)	(1,318		)	(65		)	(1,383		)	(109		)	(6,516		)
Recoveries	1,036			153			1,189			726			13			739			19			1,947
Net charge-offs	(3,599		)	(236		)	(3,835		)	(592		)	(52		)	(644		)	(90		)	(4,569		)
Provision for loan and lease losses	3,325			246			3,571			554			49			603			213			4,387
Allowance build (release) for loan and lease losses	(274		)	10			(264		)	(38		)	(3		)	(41		)	123			(182		)
Other changes⁽⁵⁾	—			(1		)	(1		)	—			—			—			—			(1		)
Balance as of September 30, 2019	4,870			400			5,270			952			55			1,007			760			7,037
Reserve for unfunded lending commitments:
Balance as of December 31, 2018	—			—			—			—			4			4			118			122
Provision for losses on unfunded lending commitments	—			—			—			—			—			—			31			31
Balance as of September 30, 2019	—			—			—			—			4			4			149			153
Combined allowance and reserve as of September 30, 2019	$	4,870		$	400		$	5,270		$	952		$	59		$	1,011		$	909		$	7,190

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results



	Three Months Ended September 30, 2019											Nine Months Ended September 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	$	3,546	$	1,682	$	486	$	23		$	5,737	$	10,667	$	5,070	$	1,489	$	48		$	17,274
Non-interest income (loss)	870		165		221		(34		)	1,222		2,858		491		608		(65		)	3,892
Total net revenue (loss)	4,416		1,847		707		(11		)	6,959		13,525		5,561		2,097		(17		)	21,166
Provision for credit losses	1,087		203		93		—			1,383		3,571		603		244		—			4,418
Non-interest expense	2,360		985		414		113			3,872		6,784		2,981		1,258		299			11,322
Income (loss) from continuing operations before income taxes	969		659		200		(124		)	1,704		3,170		1,977		595		(316		)	5,426
Income tax provision (benefit)	235		154		46		(60		)	375		747		461		138		(275		)	1,071
Income (loss) from continuing operations, net of tax	$	734	$	505	$	154	$	(64	)	$	1,329	$	2,423	$	1,516	$	457	$	(41	)	$	4,355

	Three Months Ended June 30, 2019
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾		Other⁽⁶⁾⁽⁷⁾			Total
Net interest income (loss)	$	3,531	$	1,709	$	514	$	(8	)	$	5,746
Non-interest income (loss)	1,038		166		200		(26		)	1,378
Total net revenue (loss)	4,569		1,875		714		(34		)	7,124
Provision for credit losses	1,095		165		82		—			1,342
Non-interest expense	2,253		1,002		427		97			3,779
Income (loss) from continuing operations before income taxes	1,221		708		205		(131		)	2,003
Income tax provision (benefit)	283		165		48		(109		)	387
Income (loss) from continuing operations, net of tax	$	938	$	543	$	157	$	(22	)	$	1,616

	Three Months Ended September 30, 2018											Nine Months Ended September 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	$	3,596	$	1,636	$	513	$	41		$	5,786	$	10,550	$	4,860	$	1,536	$	109		$	17,055
Non-interest income (loss)	893		155		189		(61		)	1,176		2,634		504		585		285			4,008
Total net revenue (loss)	4,489		1,791		702		(20		)	6,962		13,184		5,364		2,121		394			21,063
Provision (benefit) for credit losses	1,031		184		54		(1		)	1,268		3,658		535		74		(49		)	4,218
Non-interest expense	2,103		979		408		283			3,773		6,046		2,942		1,220		562			10,770
Income (loss) from continuing operations before income taxes	1,355		628		240		(302		)	1,921		3,480		1,887		827		(119		)	6,075
Income tax provision (benefit)	315		146		56		(97		)	420		810		440		193		(129		)	1,314
Income (loss) from continuing operations, net of tax	$	1,040	$	482	$	184	$	(205	)	$	1,501	$	2,670	$	1,447	$	634	$	10		$	4,761

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business



																2019 Q3 vs.				Nine Months Ended September 30,
	2019			2019			2019			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2019			2018			2018
Credit Card
Earnings:
Net interest income	$	3,546		$	3,531		$	3,590		$	3,617		$	3,596		—		(1	)%	$	10,667		$	10,550		1	%
Non-interest income	870			1,038			950			886			893			(16	)%	(3	)	2,858			2,634			9
Total net revenue	4,416			4,569			4,540			4,503			4,489			(3	)	(2	)	13,525			13,184			3
Provision for credit losses	1,087			1,095			1,389			1,326			1,031			(1	)	5		3,571			3,658			(2	)
Non-interest expense	2,360			2,253			2,171			2,496			2,103			5		12		6,784			6,046			12
Income from continuing operations before income taxes	969			1,221			980			681			1,355			(21	)	(28	)	3,170			3,480			(9	)
Income tax provision	235			283			229			160			315			(17	)	(25	)	747			810			(8	)
Income from continuing operations, net of tax	$	734		$	938		$	751		$	521		$	1,040		(22	)	(29	)	$	2,423		$	2,670		(9	)
Selected performance metrics:
Period-end loans held for investment	$	113,681		$	112,141		$	109,836		$	116,361		$	110,685		1		3		$	113,681		$	110,685		3
Average loans held for investment	112,371			110,798			111,456			112,349			109,510			1		3		111,545			108,968			2
Average yield on loans held for investment⁽⁸⁾	15.55		%	15.66		%	15.77		%	15.63		%	15.79		%	(11	)bps	(24	)bps	15.66		%	15.37		%	29	bps
Total net revenue margin⁽⁹⁾	15.72			16.50			16.29			16.03			16.40			(78	)	(68	)	16.17			16.13			4
Net charge-off rate⁽²⁾	4.09			4.76			4.90			4.61			4.15			(67	)	(6	)	4.58			4.62			(4	)
30+ day performing delinquency rate	3.69			3.40			3.71			4.00			3.78			29		(9	)	3.69			3.78			(9	)
30+ day delinquency rate	3.71			3.42			3.72			4.01			3.80			29		(9	)	3.71			3.80			(9	)
Nonperforming loan rate⁽³⁾	0.02			0.02			0.02			0.02			0.02			—		—		0.02			0.02			—
Purchase volume⁽¹⁰⁾	$	108,034		$	106,903		$	93,197		$	105,696		$	97,469		1	%	11	%	$	308,134		$	281,406		9	%



																2019 Q3 vs.				Nine Months Ended September 30,
	2019			2019			2019			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2019			2018			2018
Domestic Card
Earnings:
Net interest income	$	3,299		$	3,220		$	3,273		$	3,309		$	3,280		2	%	1	%	$	9,792		$	9,617		2	%
Non-interest income	878			971			873			828			819			(10	)	7		2,722			2,411			13
Total net revenue	4,177			4,191			4,146			4,137			4,099			—		2		12,514			12,028			4
Provision for credit losses	1,010			1,024			1,291			1,229			950			(1	)	6		3,325			3,424			(3	)
Non-interest expense	2,076			2,034			1,949			2,216			1,890			2		10		6,059			5,405			12
Income from continuing operations before income taxes	1,091			1,133			906			692			1,259			(4	)	(13	)	3,130			3,199			(2	)
Income tax provision	254			264			211			162			293			(4	)	(13	)	729			745			(2	)
Income from continuing operations, net of tax	$	837		$	869		$	695		$	530		$	966		(4	)	(13	)	$	2,401		$	2,454		(2	)
Selected performance metrics:
Period-end loans held for investment	$	104,664		$	102,959		$	101,052		$	107,350		$	101,564		2		3		$	104,664		$	101,564		3
Average loans held for investment	103,426			101,930			102,667			103,391			100,566			1		3		102,677			99,970			3
Average yield on loans held for investment⁽⁸⁾	15.74		%	15.60		%	15.69		%	15.58		%	15.73		%	14	bps	1	bps	15.67		%	15.29		%	38	bps
Total net revenue margin⁽⁹⁾	16.15			16.45			16.15			16.01			16.30			(30	)	(15	)	16.25			16.04			21
Net charge-off rate⁽²⁾	4.12			4.86			5.04			4.64			4.35			(74	)	(23	)	4.67			4.78			(11	)
30+ day delinquency rate	3.71			3.40			3.72			4.04			3.80			31		(9	)	3.71			3.80			(9	)
Purchase volume⁽¹⁰⁾	$	99,087		$	98,052		$	85,738		$	96,818		$	89,205		1	%	11	%	$	282,878		$	257,340		10	%
Refreshed FICO scores:⁽¹¹⁾
Greater than 660	68		%	68		%	66		%	67		%	67		%	—		1		68		%	67		%	1
660 or below	32			32			34			33			33			—		(1	)	32			33			(1	)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business



																2019 Q3 vs.				Nine Months Ended September 30,
	2019			2019			2019			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2019			2018			2018
Consumer Banking
Earnings:
Net interest income	$	1,682		$	1,709		$	1,679		$	1,689		$	1,636		(2	)%	3	%	$	5,070		$	4,860		4	%
Non-interest income	165			166			160			159			155			(1	)	6		491			504			(3	)
Total net revenue	1,847			1,875			1,839			1,848			1,791			(1	)	3		5,561			5,364			4
Provision for credit losses	203			165			235			303			184			23		10		603			535			13
Non-interest expense	985			1,002			994			1,085			979			(2	)	1		2,981			2,942			1
Income from continuing operations before income taxes	659			708			610			460			628			(7	)	5		1,977			1,887			5
Income tax provision	154			165			142			107			146			(7	)	5		461			440			5
Income from continuing operations, net of tax	$	505		$	543		$	468		$	353		$	482		(7	)	5		$	1,516		$	1,447		5
Selected performance metrics:
Period-end loans held for investment⁽¹⁾	$	62,015		$	60,327		$	59,248		$	59,205		$	59,329		3		5		$	62,015		$	59,329		5
Average loans held for investment⁽¹⁾	61,269			59,858			59,065			59,342			59,220			2		3		60,072			66,841			(10	)
Average yield on loans held for investment⁽⁸⁾	8.47		%	8.36		%	8.15		%	8.14		%	8.03		%	11	bps	44	bps	8.33		%	7.36		%	97	bps
Auto loan originations	$	8,175		$	7,327		$	6,222		$	5,932		$	6,643		12	%	23	%	$	21,723		$	20,345		7	%
Period-end deposits	206,423			205,220			205,439			198,607			196,635			1		5		206,423			196,635			5
Average deposits	204,933			204,164			201,072			196,348			194,687			—		5		203,404			191,942			6
Average deposits interest rate	1.31		%	1.26		%	1.18		%	1.10		%	1.00		%	5	bps	31	bps	1.25		%	0.89		%	36	bps
Net charge-off rate	1.64			1.15			1.49			2.01			1.77			49		(13	)	1.43			1.36			7
30+ day performing delinquency rate	6.23			5.87			5.55			6.67			6.01			36		22		6.23			6.01			22
30+ day delinquency rate	6.86			6.41			6.02			7.36			6.61			45		25		6.86			6.61			25
Nonperforming loan rate⁽³⁾	0.74			0.66			0.59			0.81			0.72			8		2		0.74			0.72			2
Nonperforming asset rate⁽⁴⁾	0.83			0.75			0.68			0.90			0.82			8		1		0.83			0.82			1
Auto—At origination FICO scores:⁽¹²⁾
Greater than 660	48		%	49		%	49		%	50		%	50		%	(1	)%	(2	)%	48		%	50		%	(2	)%
621 - 660	20			19			19			19			19			1		1		20			19			1
620 or below	32			32			32			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 Q3 vs.				Nine Months Ended September 30,
	2019			2019			2019			2018			2018			2019		2018								2019 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2019			2018			2018
Commercial Banking
Earnings:
Net interest income	$	486		$	514		$	489		$	508		$	513		(5	)%	(5	)%	$	1,489		$	1,536		(3	)%
Non-interest income	221			200			187			159			189			11		17		608			585			4
Total net revenue⁽⁶⁾⁽⁷⁾	707			714			676			667			702			(1	)	1		2,097			2,121			(1	)
Provision for credit losses	93			82			69			9			54			13		72		244			74			230
Non-interest expense	414			427			417			434			408			(3	)	1		1,258			1,220			3
Income from continuing operations before income taxes	200			205			190			224			240			(2	)	(17	)	595			827			(28	)
Income tax provision	46			48			44			52			56			(4	)	(18	)	138			193			(28	)
Income from continuing operations, net of tax	$	154		$	157		$	146		$	172		$	184		(2	)	(16	)	$	457		$	634		(28	)
Selected performance metrics:
Period-end loans held for investment	$	73,659		$	71,992		$	71,189		$	70,333		$	68,747		2		7		$	73,659		$	68,747		7
Average loans held for investment	72,507			71,997			71,438			69,680			68,036			1		7		71,985			66,538			8
Average yield on loans held for investment⁽⁶⁾⁽⁸⁾	4.45		%	4.75		%	4.62		%	4.67		%	4.55		%	(30	)bps	(10	)bps	4.61		%	4.38		%	23	bps
Period-end deposits	$	30,923		$	30,761		$	31,248		$	29,480		$	30,474		1	%	1	%	$	30,923		$	30,474		1	%
Average deposits	30,693			31,364			30,816			30,680			31,061			(2	)	(1	)	30,957			32,679			(5	)
Average deposits interest rate	1.25		%	1.28		%	1.11		%	0.95		%	0.79		%	(3	)bps	46	bps	1.21		%	0.65		%	56	bps
Net charge-off rate	0.33			0.09			0.08			0.10			0.16			24		17		0.17			0.08			9
Nonperforming loan rate⁽³⁾	0.61			0.50			0.53			0.44			0.38			11		23		0.61			0.38			23
Nonperforming asset rate⁽⁴⁾	0.61			0.50			0.53			0.45			0.41			11		20		0.61			0.41			20
Risk category:⁽¹³⁾
Noncriticized	$	71,144		$	69,390		$	68,594		$	68,043		$	65,926		3	%	8	%	$	71,144		$	65,926		8	%
Criticized performing	2,035			2,211			2,094			1,848			2,204			(8	)	(8	)	2,035			2,204			(8	)
Criticized nonperforming	449			360			378			312			259			25		73		449			259			73
PCI loans	31			31			123			130			358			—		(91	)	31			358			(91	)
Total commercial banking loans	$	73,659		$	71,992		$	71,189		$	70,333		$	68,747		2		7		$	73,659		$	68,747		7
Risk category as a percentage of period-end loans held for investment:⁽¹³⁾
Noncriticized	96.6		%	96.4		%	96.4		%	96.8		%	95.9		%	20	bps	70	bps	96.6		%	95.9		%	70	bps
Criticized performing	2.8			3.1			2.9			2.6			3.2			(30	)	(40	)	2.8			3.2			(40	)
Criticized nonperforming	0.6			0.5			0.5			0.4			0.4			10		20		0.6			0.4			20
PCI loans	—			—			0.2			0.2			0.5			—		(50	)	—			0.5			(50	)
Total commercial banking 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 Q3 vs.				Nine Months Ended September 30,
	2019			2019			2019			2018			2018			2019		2018								2019 vs.
(Dollars in millions)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2019			2018			2018
Other
Earnings:
Net interest income (loss)	$	23		$	(8	)	$	33		$	6		$	41		**		(44	)%	$	48		$	109		(56	)%
Non-interest income (loss)	(34		)	(26		)	(5		)	(11		)	(61		)	31	%	(44	)	(65		)	285			**
Total net revenue (loss)⁽⁶⁾⁽⁷⁾	(11		)	(34		)	28			(5		)	(20		)	(68	)	(45	)	(17		)	394			**
Benefit for credit losses	—			—			—			—			(1		)	—		**		—			(49		)	**
Non-interest expense^(14)(15)	113			97			89			117			283			16		(60	)	299			562			(47	)
Loss from continuing operations before income taxes	(124		)	(131		)	(61		)	(122		)	(302		)	(5	)	(59	)	(316		)	(119		)	166
Income tax benefit	(60		)	(109		)	(106		)	(340		)	(97		)	(45	)	(38	)	(275		)	(129		)	113
Income (loss) from continuing operations, net of tax	$	(64	)	$	(22	)	$	45		$	218		$	(205	)	191		(69	)	$	(41	)	$	10		**
Selected performance metrics:
Average loans held for investment	—			—			—			—			—			—		—		—			$	22		**
Period-end deposits	$	19,802		$	18,554		$	18,420		$	21,677		$	20,086		7		(1	)	$	19,802		20,086			(1	)
Average deposits	19,456			18,106			19,522			20,635			20,972			7		(7	)	19,028			22,311			(15	)
Total
Earnings:
Net interest income	$	5,737		$	5,746		$	5,791		$	5,820		$	5,786		—		(1	)%	$	17,274		$	17,055		1	%
Non-interest income	1,222			1,378			1,292			1,193			1,176			(11	)%	4		3,892			4,008			(3	)
Total net revenue	6,959			7,124			7,083			7,013			6,962			(2	)	—		21,166			21,063			—
Provision for credit losses	1,383			1,342			1,693			1,638			1,268			3		9		4,418			4,218			5
Non-interest expense	3,872			3,779			3,671			4,132			3,773			2		3		11,322			10,770			5
Income from continuing operations before income taxes	1,704			2,003			1,719			1,243			1,921			(15	)	(11	)	5,426			6,075			(11	)
Income tax provision (benefit)	375			387			309			(21		)	420			(3	)	(11	)	1,071			1,314			(18	)
Income from continuing operations, net of tax	$	1,329		$	1,616		$	1,410		$	1,264		$	1,501		(18	)	(11	)	$	4,355		$	4,761		(9	)
Selected performance metrics:
Period-end loans held for investment	$	249,355		$	244,460		$	240,273		$	245,899		$	238,761		2		4		$	249,355		$	238,761		4
Average loans held for investment	246,147			242,653			241,959			241,371			236,766			1		4		243,602			242,369			1
Period-end deposits	257,148			254,535			255,107			249,764			247,195			1		4		257,148			247,195			4
Average deposits	255,082			253,634			251,410			247,663			246,720			1		3		253,389			246,932			3

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.


⁽¹⁵⁾	Includes $22 million of net Cybersecurity Incident expenses in Q3 2019, consisting of $49 million of expenses and $27 million of probable insurance recoveries.


**	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)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Regulatory Capital Metrics
Common equity excluding AOCI	$	51,959		$	51,236		$	49,781		$	48,570		$	48,154
Adjustments:
AOCI⁽²⁾	453			170			(660		)	(1,263		)	(1,877		)
Goodwill, net of related deferred tax liabilities	(14,439		)	(14,365		)	(14,369		)	(14,373		)	(14,345		)
Intangible assets, net of related deferred tax liabilities	(180		)	(194		)	(223		)	(254		)	(284		)
Other	(588		)	(401		)	113			391			817
Common equity Tier 1 capital	$	37,205		$	36,446		$	34,642		$	33,071		$	32,465
Tier 1 capital	$	43,028		$	40,806		$	39,002		$	37,431		$	36,826
Total capital⁽³⁾	50,174			47,919			46,042			44,645			43,947
Risk-weighted assets	298,082			295,255			291,483			294,950			288,694
Adjusted average assets⁽⁴⁾	360,266			356,518			355,781			350,606			346,297
Capital Ratios
Common equity Tier 1 capital⁽⁵⁾	12.5		%	12.3		%	11.9		%	11.2		%	11.2		%
Tier 1 capital⁽⁶⁾	14.4			13.8			13.4			12.7			12.8
Total capital⁽⁷⁾	16.8			16.2			15.8			15.1			15.2
Tier 1 leverage⁽⁴⁾	11.9			11.4			11.0			10.7			10.6
Tangible common equity (“TCE”)⁽⁸⁾	10.3			10.2			9.6			9.1			9.0

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									2019									Nine Months Ended
	Q3									Q2									Q1									September 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			Reported Results			Adj.⁽⁹⁾			Adjusted Results
Selected income statement data:
Net interest income	$	5,737		$	67		$	5,804		$	5,746		—			$	5,746		$	5,791		—			$	5,791		$	17,274		$	67		$	17,341
Non-interest income	1,222			73			1,295			1,378			$	1		1,379			1,292			—			1,292			3,892			74			3,966
Total net revenue	6,959			140			7,099			7,124			1			7,125			7,083			—			7,083			21,166			141			21,307
Provision for credit losses	1,383			—			1,383			1,342			—			1,342			1,693			—			1,693			4,418			—			4,418
Non-interest expense	3,872			(178		)	3,694			3,779			(81		)	3,698			3,671			$	(25	)	3,646			11,322			(284		)	11,038
Income from continuing operations before income taxes	1,704			318			2,022			2,003			82			2,085			1,719			25			1,744			5,426			425			5,851
Income tax provision	375			21			396			387			19			406			309			6			315			1,071			46			1,117
Income from continuing operations, net of tax	1,329			297			1,626			1,616			63			1,679			1,410			19			1,429			4,355			379			4,734
Income from discontinued operations, net of tax	4			—			4			9			—			9			2			—			2			15			—			15
Net income	1,333			297			1,630			1,625			63			1,688			1,412			19			1,431			4,370			379			4,749
Dividends and undistributed earnings allocated to participating securities⁽¹⁰⁾	(10		)	(2		)	(12		)	(12		)	(1		)	(13		)	(12		)	—			(12		)	(34		)	(3		)	(37		)
Preferred stock dividends	(53		)	—			(53		)	(80		)	—			(80		)	(52		)	—			(52		)	(185		)	—			(185		)
Net income available to common stockholders	$	1,270		$	295		$	1,565		$	1,533		$	62		$	1,595		$	1,348		$	19		$	1,367		$	4,151		$	376		$	4,527
Selected performance metrics:
Diluted EPS⁽¹⁰⁾	$	2.69		$	0.63		$	3.32		$	3.24		$	0.13		$	3.37		$	2.86		$	0.04		$	2.90		$	8.79		$	0.80		$	9.59
Efficiency ratio	55.64		%	(360		)bps	52.04		%	53.05		%	(115		)bps	51.90		%	51.83		%	(35		)bps	51.48		%	53.49		%	(169		)bps	51.80		%
Operating efficiency ratio	48.44			(346		)	44.98			45.38			(114		)	44.24			44.53			(35		)	44.18			46.10			(164		)	44.46



	2018									2018									2018									Nine Months Ended
	Q3									Q2									Q1									September 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			Reported Results			Adj.⁽⁹⁾			Adjusted Results
Selected income statement data:
Net interest income	$	5,786		—			$	5,786		$	5,551		$	26		$	5,577		$	5,718		—			$	5,718		$	17,055		$	26		$	17,081
Non-interest income	1,176			$	(155	)	1,021			1,641			(361		)	1,280			1,191			$	2		1,193			4,008			(514		)	3,494
Total net revenue	6,962			(155		)	6,807			7,192			(335		)	6,857			6,909			2			6,911			21,063			(488		)	20,575
Provision for credit losses	1,268			2			1,270			1,276			46			1,322			1,674			—			1,674			4,218			48			4,266
Non-interest expense	3,773			(186		)	3,587			3,424			(45		)	3,379			3,573			(17		)	3,556			10,770			(248		)	10,522
Income from continuing operations before income taxes	1,921			29			1,950			2,492			(336		)	2,156			1,662			19			1,681			6,075			(288		)	5,787
Income tax provision (benefit)	420			(33		)	387			575			(92		)	483			319			4			323			1,314			(121		)	1,193
Income from continuing operations, net of tax	1,501			62			1,563			1,917			(244		)	1,673			1,343			15			1,358			4,761			(167		)	4,594
Income (loss) from discontinued operations, net of tax	1			—			1			(11		)	—			(11		)	3			—			3			(7		)	—			(7		)
Net income	1,502			62			1,564			1,906			(244		)	1,662			1,346			15			1,361			4,754			(167		)	4,587
Dividends and undistributed earnings allocated to participating securities⁽¹⁰⁾	(9		)	—			(9		)	(12		)	2			(10		)	(10		)	—			(10		)	(32		)	1			(31		)
Preferred stock dividends	(53		)	—			(53		)	(80		)	—			(80		)	(52		)	—			(52		)	(185		)	—			(185		)
Net income available to common stockholders	$	1,440		$	62		$	1,502		$	1,814		$	(242	)	$	1,572		$	1,284		$	15		$	1,299		$	4,537		$	(166	)	$	4,371
Selected performance metrics:
Diluted EPS⁽¹⁰⁾	$	2.99		$	0.13		$	3.12		$	3.71		$	(0.49	)	$	3.22		$	2.62		$	0.03		$	2.65		$	9.32		$	(0.34	)	$	8.98
Efficiency ratio	54.19		%	(149		)bps	52.70		%	47.61		%	167		bps	49.28		%	51.72		%	(27		)bps	51.45		%	51.13		%	1		bps	51.14		%
Operating efficiency ratio	46.95			(166		)	45.29			41.70			138			43.08			45.72			(26		)	45.46			44.76			(15		)	44.61

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			2019			2018			2018
(Dollars in millions)	Q3			Q2			Q1			Q4			Q3
Tangible Common Equity (Period-End)
Stockholders’ equity	$	58,235		$	55,767		$	53,481		$	51,668		$	50,638
Goodwill and intangible assets⁽¹¹⁾	(14,940		)	(14,886		)	(14,904		)	(14,941		)	(14,945		)
Noncumulative perpetual preferred stock	(5,823		)	(4,360		)	(4,360		)	(4,360		)	(4,360		)
Tangible common equity	$	37,472		$	36,521		$	34,217		$	32,367		$	31,333
Tangible Common Equity (Average)
Stockholders’ equity	$	57,245		$	54,570		$	52,720		$	51,114		$	50,768
Goodwill and intangible assets⁽¹¹⁾	(14,908		)	(14,900		)	(14,932		)	(14,953		)	(14,982		)
Noncumulative perpetual preferred stock	(4,678		)	(4,360		)	(4,360		)	(4,360		)	(4,360		)
Tangible common equity	$	37,659		$	35,310		$	33,428		$	31,801		$	31,426
Tangible Assets (Period-End)
Total assets	$	378,810		$	373,619		$	373,191		$	372,538		$	362,909
Goodwill and intangible assets⁽¹¹⁾	(14,940		)	(14,886		)	(14,904		)	(14,941		)	(14,945		)
Tangible assets	$	363,870		$	358,733		$	358,287		$	357,597		$	347,964
Tangible Assets (Average)
Total assets	$	374,905		$	371,095		$	370,394		$	365,243		$	360,937
Goodwill and intangible assets⁽¹¹⁾	(14,908		)	(14,900		)	(14,932		)	(14,953		)	(14,982		)
Tangible assets	$	359,997		$	356,195		$	355,462		$	350,290		$	345,955

__________


⁽¹⁾	Regulatory capital metrics and capital ratios as of September 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		2019		Nine Months Ended		2018			2018			2018		Nine Months Ended
(Dollars in millions)	Q3		Q2		Q1		September 30, 2019		Q3			Q2			Q1		September 30, 2018
U.K. Payment Protection Insurance customer refund reserve build (“U.K. PPI Reserve”)	$	212	—		—		$	212	—			$	49		—		$	49
Walmart launch and related integration expenses	84		$	54	$	25	163		—			—			—		—
Cybersecurity Incident expenses, net of insurance	22		—		—		22		—			—			—		—
Restructuring charges	—		28		—		28		—			15			$	19	34
Net gains on the sales of exited businesses	—		—		—		—		$	(141	)	(400		)	—		(541		)
Legal reserve build	—		—		—		—		170			—			—		170
Total	318		82		25		425		29			(336		)	19		(288		)
Income tax provision (benefit)	21		19		6		46		(33		)	(92		)	4		(121		)
Net income	$	297	$	63	$	19	$	379	$	62		$	(244	)	$	15	$	(167	)


⁽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.