Capital One Reports Second Quarter 2021 Net Income of $3.5 billion, or $7.62 per share

Excluding adjusting items, Second Quarter 2021 Net Income of $7.71 per share(1)

PR Newswire

MCLEAN, Va., July 22, 2021 /PRNewswire/ — Capital One Financial Corporation (NYSE: COF) today announced net income for the second quarter of 2021 of $3.5 billion, or $7.62 per diluted common share, compared with net income of $3.3 billion, or $7.03 per diluted common share in the first quarter of 2021, and with a net loss of $918 million, or $2.21 per diluted common share in the second quarter of 2020. Excluding adjusting items, net income for the second quarter of 2021 was $7.71 per diluted common share.⁽¹⁾

“We are seeing increasing near-term opportunities to build our franchise as we emerge from the pandemic,” said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. “Our modern technology is powering our current performance and setting us up to capitalize on the accelerating digital revolution in banking.”

The quarter included the following adjusting item:

(Dollars in millions, except per share data)	Pre-Tax Impact		Diluted EPS Impact
(Dollars in millions, except per share data)	Pre-Tax Impact		Diluted EPS Impact
Legal reserve build	$	55	$	0.09

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

Second Quarter 2021 Income Statement Summary:

Total net revenue increased 4 percent to $7.4 billion.
Total non-interest expense increased 6 percent to $4.0 billion:

24 percent increase in marketing.
3 percent increase in operating expenses.

Pre-provision earnings increased 1 percent to $3.4 billion.⁽²⁾
Provision (benefit) for credit losses decreased $337 million to $(1.2) billion:

Net charge-offs of $541 million.
$1.7 billion loan reserve release.

Net interest margin of 5.89 percent, a decrease of 10 basis points.
Efficiency ratio of 53.78 percent.

Efficiency ratio excluding adjusting items of 53.04 percent.⁽¹⁾

Operating efficiency ratio of 45.38 percent.

Operating efficiency ratio excluding adjusting items of 44.63 percent.⁽¹⁾

Second Quarter 2021 Balance Sheet Summary:

Common equity Tier 1 capital ratio under Basel III Standardized Approach of 14.5 percent at June 30, 2021.
Period-end loans held for investment in the quarter increased $6.5 billion, or 3 percent, to $249.6 billion.

Credit Card period-end loans increased $1.9 billion, or 2 percent, to $101.0 billion.

Domestic Card period-end loans increased $4.2 billion, or 5 percent, to $95.3 billion.

Consumer Banking period-end loans increased $4.6 billion, or 6 percent, to $74.8 billion.

Auto period-end loans increased $4.7 billion, or 7 percent, to $71.7 billion.

Commercial Banking period-end loans increased $19 million, or less than 1 percent, to $73.8 billion.

Average loans held for investment in the quarter increased $2.5 billion, or 1 percent, to $246.5 billion.

Credit Card average loans decreased $860 million, or 1 percent, to $99.7 billion.

Domestic Card average loans decreased $1.1 billion, or 1 percent, to $91.5 billion.

Consumer Banking average loans increased $3.5 billion, or 5 percent, to $72.7 billion.

Auto average loans increased $3.4 billion, or 5 percent, to $69.5 billion.

Commercial Banking average loans decreased $85 million, or less than 1 percent, to $74.1 billion.

Period-end total deposits decreased $4.0 billion, or 1 percent, to $306.3 billion, while average deposits increased $3.2 billion, or 1 percent, to $308.2 billion.
Interest-bearing deposits rate paid decreased 4 basis points to 0.35 percent.

(1)

Amounts excluding adjusting items are non-GAAP measures that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to these non-GAAP measures.

(2)

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

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on July 22, 2021 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company’s website through August 5, 2021 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2020.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $306.3 billion in deposits and $423.4 billion in total assets as of June 30, 2021. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

Exhibit 99.2

Capital One Financial Corporation Financial Supplement⁽¹⁾⁽²⁾ Second Quarter 2021 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	7
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	10
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	11
	Table 7:	Loan Information and Performance Statistics	12
	Table 8:	Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity	14
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	15
	Table 10:	Financial & Statistical Summary—Credit Card Business	16
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	18
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	19
	Table 13:	Financial & Statistical Summary—Other and Total	20
Other
	Table 14:	Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)	21
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	22

__________
⁽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, 2021 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

											2021 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	2021		2021		2020		2020		2020		2021		2020						2021 vs.
(Dollars in millions, except per share data and as noted)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2021		2020		2020
Income Statement
Net interest income	$	5,743	$	5,822	$	5,873	$	5,555	$	5,460	(1)	%	5	%	$	11,565	$	11,485	1	%
Non-interest income	1,631		1,291		1,464		1,826		1,096		26		49		2,922		2,320		26
Total net revenue⁽¹⁾	7,374		7,113		7,337		7,381		6,556		4		12		14,487		13,805		5
Provision (benefit) for credit losses	(1,160)		(823)		264		331		4,246		41		**		(1,983)		9,669		**
Non-interest expense:
Marketing	620		501		563		283		273		24		127		1,121		764		47
Operating expense	3,346		3,239		3,446		3,265		3,497		3		(4)		6,585		6,735		(2)
Total non-interest expense	3,966		3,740		4,009		3,548		3,770		6		5		7,706		7,499		3
Income (loss) from continuing operations before income taxes	4,568		4,196		3,064		3,502		(1,460)		9		**		8,764		(3,363)		**
Income tax provision (benefit)	1,031		869		496		1,096		(543)		19		**		1,900		(1,106)		**
Income (loss) from continuing operations, net of tax	3,537		3,327		2,568		2,406		(917)		6		**		6,864		(2,257)		**
Loss from discontinued operations, net of tax	(1)		(2)		(2)		—		(1)		(50)		—		(3)		(1)		**
Net income (loss)	3,536		3,325		2,566		2,406		(918)		6		**		6,861		(2,258)		**
Dividends and undistributed earnings allocated to participating securities⁽²⁾	(30)		(28)		(19)		(20)		(1)		7		**		(58)		(4)		**
Preferred stock dividends	(60)		(61)		(68)		(67)		(90)		(2)		(33)		(121)		(145)		(17)
Issuance cost for redeemed preferred stock⁽³⁾	—		—		(17)		—		—		—		—		—		(22)		**
Net income (loss) available to common stockholders	$	3,446	$	3,236	$	2,462	$	2,319	$	(1,009)	6		**		$	6,682	$	(2,429)	**
Common Share Statistics
Basic earnings per common share:⁽²⁾
Net income (loss) from continuing operations	$	7.65	$	7.06	$	5.36	$	5.07	$	(2.21)	8	%	**		$	14.70	$	(5.31)	**
Net income (loss) per basic common share	$	7.65	$	7.06	$	5.36	$	5.07	$	(2.21)	8		**		$	14.70	$	(5.31)	**
Diluted earnings per common share:⁽²⁾
Net income (loss) from continuing operations	$	7.62	$	7.03	$	5.35	$	5.06	$	(2.21)	8		**		$	14.65	$	(5.31)	**
Net income (loss) per diluted common share	$	7.62	$	7.03	$	5.35	$	5.06	$	(2.21)	8		**		$	14.65	$	(5.31)	**
Weighted-average common shares outstanding (in millions):
Basic	450.6		458.6		459.1		457.8		456.7		(2)		(1)	%	454.6		457.1		(1)	%
Diluted	452.3		460.1		460.2		458.5		456.7		(2)		(1)		456.2		457.1		—
Common shares outstanding (period-end, in millions)	446.1		456.8		459.0		457.4		456.3		(2)		(2)		446.1		456.3		(2)
Dividends declared and paid per common share	$	0.40	$	0.40	$	0.10	$	0.10	$	0.40	—		—		$	0.80	$	0.80	—
Tangible book value per common share (period-end)⁽⁴⁾	97.20		90.96		88.34		83.67		78.82		7		23		97.20		78.82		23

											2021 Q2 vs.				Six Months Ended June 30,
(Dollars in millions)	2021		2021		2020		2020		2020		2021		2020						2021 vs.
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2021		2020		2020
Balance Sheet (Period-End)
Loans held for investment	$	249,597	$	243,131	$	251,624	$	248,223	$	251,512	3	%	(1)	%	$	249,597	$	251,512	(1)	%
Interest-earning assets	387,295		392,485		388,917		390,040		389,829		(1)		(1)		387,295		389,829		(1)
Total assets	423,420		425,175		421,602		421,883		421,296		—		1		423,420		421,296		1
Interest-bearing deposits	271,314		276,325		274,300		276,092		275,183		(2)		(1)		271,314		275,183		(1)
Total deposits	306,308		310,328		305,442		305,725		304,238		(1)		1		306,308		304,238		1
Borrowings	36,343		38,450		40,539		42,795		44,900		(5)		(19)		36,343		44,900		(19)
Common equity	58,136		56,341		55,356		53,093		50,835		3		14		58,136		50,835		14
Total stockholders’ equity	64,624		61,188		60,204		58,424		56,045		6		15		64,624		56,045		15
Balance Sheet (Average Balances)
Loans held for investment	$	246,463	$	243,937	$	247,689	$	249,511	$	253,358	1	%	(3)	%	$	245,207	$	258,124	(5)	%
Interest-earning assets	390,129		388,572		388,252		391,451		378,145		—		3		389,355		366,746		6
Total assets	424,099		421,808		420,011		422,854		411,075		1		3		422,959		400,845		6
Interest-bearing deposits	273,476		273,358		274,142		276,339		261,256		—		5		273,417		251,185		9
Total deposits	308,217		305,056		304,513		305,516		288,344		1		7		306,645		276,498		11
Borrowings	37,054		39,911		40,662		44,161		49,827		(7)		(26)		38,475		50,810		(24)
Common equity	56,885		55,775		54,220		51,995		52,413		2		9		56,333		52,799		7
Total stockholders’ equity	62,376		60,623		59,389		57,223		57,623		3		8		61,504		58,096		6

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 2: Selected Metrics—Consolidated
																2021 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except as noted)	2021			2021			2020			2020			2020			2021		2020								2021 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2021			2020			2020
Performance Metrics
Net interest income growth (period over period)	(1)		%	(1)		%	6		%	2		%	(9)		%	**		**		1		%	—			**
Non-interest income growth (period over period)	26			(12)			(20)			67			(10)			**		**		26			(13)		%	**
Total net revenue growth (period over period)	4			(3)			(1)			13			(10)			**		**		5			(3)			**
Total net revenue margin⁽⁵⁾	7.56			7.32			7.56			7.54			6.93			24	bps	63	bps	7.44			7.53			(9)	bps
Net interest margin⁽⁶⁾	5.89			5.99			6.05			5.68			5.78			(10)		11		5.94			6.26			(32)
Return on average assets	3.34			3.16			2.45			2.28			(0.89)			18		4	%	3.25			(1.13)			4	%
Return on average tangible assets⁽⁷⁾	3.46			3.27			2.54			2.36			(0.93)			19		4		3.36			(1.17)			5
Return on average common equity⁽⁸⁾	24.24			23.22			18.18			17.84			(7.69)			102		32		23.73			(9.20)			33
Return on average tangible common equity⁽⁹⁾	32.75			31.61			25.02			24.98			(10.74)			114		43		32.19			(12.81)			45
Non-interest expense as a percentage of average loans held for investment	6.44			6.13			6.47			5.69			5.95			31		49	bps	6.29			5.81			48	bps
Efficiency ratio⁽¹⁰⁾	53.78			52.58			54.64			48.07			57.50			120		(4)	%	53.19			54.32			(113)
Operating efficiency ratio⁽¹¹⁾	45.38			45.54			46.97			44.24			53.34			(16)		(8)		45.45			48.79			(334)
Effective income tax rate for continuing operations	22.6			20.7			16.2			31.3			37.2			190		(15)		21.7			32.9			(11)	%
Employees (period-end, in thousands)	52.0			51.7			52.0			52.5			53.1			1	%	(2)		52.0			53.1			(2)
Credit Quality Metrics
Allowance for credit losses	$	12,346		$	14,017		$	15,564		$	16,129		$	16,832		(12)	%	(27)	%	$	12,346		$	16,832		(27)	%
Allowance coverage ratio	4.95		%	5.77		%	6.19		%	6.50		%	6.69		%	(82)	bps	(174)	bps	4.95		%	6.69		%	(174)	bps
Net charge-offs	$	541		$	740		$	856		$	1,073		$	1,505		(27)	%	(64)	%	$	1,281		$	3,296		(61)	%
Net charge-off rate⁽¹²⁾	0.88		%	1.21		%	1.38		%	1.72		%	2.38		%	(33)	bps	(150)	bps	1.04		%	2.55		%	(151)	bps
30+ day performing delinquency rate⁽¹³⁾	1.75			1.82			2.41			1.97			2.09			(7)		(34)		1.75			2.09			(34)
30+ day delinquency rate⁽¹³⁾	1.89			1.98			2.61			2.22			2.30			(9)		(41)		1.89			2.30			(41)
Capital Ratios⁽¹⁴⁾
Common equity Tier 1 capital	14.5		%	14.6		%	13.7		%	13.0		%	12.4		%	(10)	bps	210	bps	14.5		%	12.4		%	210	bps
Tier 1 capital	16.6			16.2			15.3			14.8			14.2			40		240		16.6			14.2			240
Total capital	18.8			18.6			17.7			17.3			16.7			20		210		18.8			16.7			210
Tier 1 leverage	12.4			11.7			11.2			10.6			10.3			70		210		12.4			10.3			210
Tangible common equity (“TCE”)⁽¹⁵⁾	10.6			10.1			10.0			9.4			8.8			50		180		10.6			8.8			180

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 3: Consolidated Statements of Income
											2021 Q2 vs.				Six Months Ended June 30,
	2021		2021		2020		2020		2020		2021		2020						2021 vs.
(Dollars in millions, except per share data and as noted)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2021		2020		2020
Interest income:
Loans, including loans held for sale	$	5,753	$	5,854	$	5,954	$	5,758	$	5,820	(2)	%	(1)	%	$	11,607	$	12,362	(6)	%
Investment securities	370		391		422		443		482		(5)		(23)		761		1,012		(25)
Other	16		16		15		14		16		—		—		32		53		(40)
Total interest income	6,139		6,261		6,391		6,215		6,318		(2)		(3)		12,400		13,427		(8)
Interest expense:
Deposits	237		269		347		476		611		(12)		(61)		506		1,342		(62)
Securitized debt obligations	28		32		34		43		56		(13)		(50)		60		155		(61)
Senior and subordinated notes	122		129		128		132		180		(5)		(32)		251		419		(40)
Other borrowings	9		9		9		9		11		—		(18)		18		26		(31)
Total interest expense	396		439		518		660		858		(10)		(54)		835		1,942		(57)
Net interest income	5,743		5,822		5,873		5,555		5,460		(1)		5		11,565		11,485		1
Provision (benefit) for credit losses	(1,160)		(823)		264		331		4,246		41		**		(1,983)		9,669		**
Net interest income after provision for credit losses	6,903		6,645		5,609		5,224		1,214		4		**		13,548		1,816		**
Non-interest income:
Interchange fees, net	1,016		817		818		775		672		24		51		1,833		1,424		29
Service charges and other customer-related fees	384		352		338		320		258		9		49		736		585		26
Net securities gains	—		4		—		25		—		**		—		4		—		**
Other	231		118		308		706		166		96		39		349		311		12
Total non-interest income	1,631		1,291		1,464		1,826		1,096		26		49		2,922		2,320		26
Non-interest expense:
Salaries and associate benefits	1,781		1,847		1,755		1,719		1,704		(4)		5		3,628		3,331		9
Occupancy and equipment	523		472		572		506		523		11		—		995		1,040		(4)
Marketing	620		501		563		283		273		24		127		1,121		764		47
Professional services	341		292		394		327		304		17		12		633		591		7
Communications and data processing	315		302		295		310		308		4		2		617		610		1
Amortization of intangibles	5		6		8		14		16		(17)		(69)		11		38		(71)
Other	381		320		422		389		642		19		(41)		701		1,125		(38)
Total non-interest expense	3,966		3,740		4,009		3,548		3,770		6		5		7,706		7,499		3
Income (loss) from continuing operations before income taxes	4,568		4,196		3,064		3,502		(1,460)		9		**		8,764		(3,363)		**
Income tax provision (benefit)	1,031		869		496		1,096		(543)		19		**		1,900		(1,106)		**
Income (loss) from continuing operations, net of tax	3,537		3,327		2,568		2,406		(917)		6		**		6,864		(2,257)		**
Loss from discontinued operations, net of tax	(1)		(2)		(2)		—		(1)		(50)		—		(3)		(1)		**
Net income (loss)	3,536		3,325		2,566		2,406		(918)		6		**		6,861		(2,258)		**
Dividends and undistributed earnings allocated to participating securities⁽²⁾	(30)		(28)		(19)		(20)		(1)		7		**		(58)		(4)		**
Preferred stock dividends	(60)		(61)		(68)		(67)		(90)		(2)		(33)		(121)		(145)		(17)
Issuance cost for redeemed preferred stock⁽³⁾	—		—		(17)		—		—		—		—		—		(22)		**
Net income (loss) available to common stockholders	$	3,446	$	3,236	$	2,462	$	2,319	$	(1,009)	6		**		$	6,682	$	(2,429)	**

											2021 Q2 vs.				Six Months Ended June 30,
	2021		2021		2020		2020		2020		2021		2020						2021 vs.
(Dollars in millions, except per share data and as noted)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2021		2020		2020
Basic earnings per common share:⁽²⁾
Net income (loss) from continuing operations	$	7.65	$	7.06	$	5.36	$	5.07	$	(2.21)	8	%	**		$	14.70	$	(5.31)	**
Net income (loss) per basic common share	$	7.65	$	7.06	$	5.36	$	5.07	$	(2.21)	8		**		$	14.70	$	(5.31)	**
Diluted earnings per common share:⁽²⁾
Net income (loss) from continuing operations	$	7.62	$	7.03	$	5.35	$	5.06	$	(2.21)	8		**		$	14.65	$	(5.31)	**
Net income (loss) per diluted common share	$	7.62	$	7.03	$	5.35	$	5.06	$	(2.21)	8		**		$	14.65	$	(5.31)	**
Weighted-average common shares outstanding (in millions):
Basic common shares	450.6		458.6		459.1		457.8		456.7		(2)		(1)	%	454.6		457.1		(1)	%
Diluted common shares	452.3		460.1		460.2		458.5		456.7		(2)		(1)		456.2		457.1		—

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 4: Consolidated Balance Sheets
											2021 Q2 vs.
	2021		2021		2020		2020		2020		2021		2020
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Assets:
Cash and cash equivalents:
Cash and due from banks	$	5,312	$	4,670	$	4,708	$	4,267	$	4,583	14	%	16	%
Interest-bearing deposits and other short-term investments	29,534		45,825		35,801		39,839		51,235		(36)		(42)
Total cash and cash equivalents	34,846		50,495		40,509		44,106		55,818		(31)		(38)
Restricted cash for securitization investors	242		1,779		262		895		740		(86)		(67)
Securities available for sale	101,766		99,165		100,445		99,853		87,859		3		16
Loans held for investment:
Unsecuritized loans held for investment	226,130		219,182		225,698		217,878		222,310		3		2
Loans held in consolidated trusts	23,467		23,949		25,926		30,345		29,202		(2)		(20)
Total loans held for investment	249,597		243,131		251,624		248,223		251,512		3		(1)
Allowance for credit losses	(12,346)		(14,017)		(15,564)		(16,129)		(16,832)		(12)		(27)
Net loans held for investment	237,251		229,114		236,060		232,094		234,680		4		1
Loans held for sale	6,522		2,896		2,710		3,433		711		125		**
Premises and equipment, net	4,227		4,277		4,287		4,333		4,324		(1)		(2)
Interest receivable	1,372		1,380		1,471		1,551		1,574		(1)		(13)
Goodwill	14,654		14,654		14,653		14,648		14,645		—		—
Other assets	22,540		21,415		21,205		20,970		20,945		5		8
Total assets	$	423,420	$	425,175	$	421,602	$	421,883	$	421,296	—		1

											2021 Q2 vs.
	2021		2021		2020		2020		2020		2021		2020
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Liabilities:
Interest payable	$	301	$	288	$	352	$	332	$	380	5	%	(21)	%
Deposits:
Non-interest-bearing deposits	34,994		34,003		31,142		29,633		29,055		3		20
Interest-bearing deposits	271,314		276,325		274,300		276,092		275,183		(2)		(1)
Total deposits	306,308		310,328		305,442		305,725		304,238		(1)		1
Securitized debt obligations	10,561		12,071		12,414		13,566		15,761		(13)		(33)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	845		842		668		702		573		—		47
Senior and subordinated notes	24,878		25,467		27,382		28,448		28,481		(2)		(13)
Other borrowings	59		70		75		79		85		(16)		(31)
Total other debt	25,782		26,379		28,125		29,229		29,139		(2)		(12)
Other liabilities	15,844		14,921		15,065		14,607		15,733		6		1
Total liabilities	358,796		363,987		361,398		363,459		365,251		(1)		(2)

Stockholders’ equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	35,472		33,671		33,480		33,793		33,556		5		6
Retained earnings	46,461		43,167		40,088		37,653		35,361		8		31
Accumulated other comprehensive income	1,792		1,783		3,494		3,833		3,981		1		(55)
Treasury stock, at cost	(19,108)		(17,440)		(16,865)		(16,862)		(16,860)		10		13
Total stockholders’ equity	64,624		61,188		60,204		58,424		56,045		6		15
Total liabilities and stockholders’ equity	$	423,420	$	425,175	$	421,602	$	421,883	$	421,296	—		1

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 $175 million in Q2 2021, $180 million in Q1 2021, $177 million in Q4 2020, $235 million in Q3 2020 and $318 million in Q2 2020 for credit card finance charges and fees charged-off as uncollectible.
⁽²⁾	Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.
⁽³⁾	On December 1, 2020, we redeemed all outstanding shares of our fixed rate 6.20% non-cumulative perpetual preferred stock Series F, which reduced our net income available to common shareholders by $17 million in Q4 2020. On March 2, 2020, we redeemed all outstanding shares of our fixed rate 6.00% non-cumulative perpetual preferred stock Series B, which increased our net loss available to common shareholders by $22 million in Q1 2020.
⁽⁴⁾	Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
⁽⁵⁾	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.
⁽⁶⁾	Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
⁽⁷⁾	Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
⁽⁸⁾	Return on average common equity is calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.
⁽⁹⁾	Return on average tangible common equity (“ROTCE”) is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average tangible common equity (“TCE”). Our calculation of return on average TCE may not be comparable to similarly-titled measures reported by other companies. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
⁽¹⁰⁾	Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.
⁽¹¹⁾	Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.
⁽¹²⁾	Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
⁽¹³⁾	Metrics include the impact of COVID-19 customer assistance programs where applicable.
⁽¹⁴⁾	Capital ratios as of the end of Q2 2021 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.
⁽¹⁵⁾	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

	2021 Q2							2021 Q1						2020 Q2
(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	$	249,280	$	5,753	9.23	%		$	246,675	$	5,854	9.49	%	$	254,402	$	5,820	9.15	%
Investment securities	100,071		370		1.48			98,296		391		1.59		81,095		482		2.38
Cash equivalents and other	40,778		16		0.16			43,601		16		0.15		42,648		16		0.15
Total interest-earning assets	$	390,129	$	6,139	6.29			$	388,572	$	6,261	6.45		$	378,145	$	6,318	6.68
Interest-bearing liabilities:
Interest-bearing deposits	$	273,476	$	237	0.35			$	273,358	$	269	0.39		$	261,256	$	611	0.94
Securitized debt obligations	10,890		28		1.03			12,240		32		1.05		16,432		56		1.37
Senior and subordinated notes	25,487		122		1.92			26,968		129		1.91		31,294		180		2.30
Other borrowings and liabilities	2,198		9		1.67			2,210		9		1.62		3,554		11		1.21
Total interest-bearing liabilities	$	312,051	$	396	0.50			$	314,776	$	439	0.56		$	312,536	$	858	1.10
Net interest income/spread			$	5,743	5.79					$	5,822	5.89				$	5,460	5.58
Impact of non-interest-bearing funding					0.10							0.10						0.20
Net interest margin					5.89	%						5.99	%					5.78	%

							Six Months Ended June 30,
								2021						2020
								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								$	247,984	$	11,607	9.36	%	$	259,017	$	12,362	9.55	%
Investment securities								99,189		761		1.53		79,654		1,012		2.54
Cash equivalents and other								42,182		32		0.15		28,075		53		0.38
Total interest-earning assets								$	389,355	$	12,400	6.37		$	366,746	$	13,427	7.32
Interest-bearing liabilities:
Interest-bearing deposits								$	273,417	$	506	0.37		$	251,185	$	1,342	1.07
Securitized debt obligations								11,561		60		1.04		17,243		155		1.80
Senior and subordinated notes								26,223		251		1.92		31,318		419		2.67
Other borrowings and liabilities								2,205		18		1.65		3,667		26		1.42
Total interest-bearing liabilities								$	313,406	$	835	0.53		$	303,413	$	1,942	1.28
Net interest income/spread										$	11,565	5.84				$	11,485	6.04
Impact of non-interest-bearing funding												0.10						0.22
Net interest margin												5.94	%					6.26	%

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 7: Loan Information and Performance Statistics
																2021 Q2 vs.				Six Months Ended June 30,
	2021			2021			2020			2020			2020			2021		2020		2021			2020			2021 vs. 2020
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2021			2020			2021 vs. 2020
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card⁽¹⁾	$	95,309		$	91,099		$	98,504		$	95,541		$	99,390		5	%	(4)	%	$	95,309		$	99,390		(4)	%
International card businesses⁽²⁾	5,708			8,028			8,452			8,100			7,920			(29)		(28)		5,708			7,920			(28)
Total credit card	101,017			99,127			106,956			103,641			107,310			2		(6)		101,017			107,310			(6)
Consumer banking:
Auto	71,713			67,059			65,762			65,394			63,319			7		13		71,713			63,319			13
Retail banking	3,046			3,143			3,126			3,294			3,393			(3)		(10)		3,046			3,393			(10)
Total consumer banking	74,759			70,202			68,888			68,688			66,712			6		12		74,759			66,712			12
Commercial banking:
Commercial and multifamily real estate⁽³⁾	29,616			30,008			30,681			31,197			30,953			(1)		(4)		29,616			30,953			(4)
Commercial and industrial	44,205			43,794			45,099			44,697			46,537			1		(5)		44,205			46,537			(5)
Total commercial banking	73,821			73,802			75,780			75,894			77,490			—		(5)		73,821			77,490			(5)
Total loans held for investment	249,597			243,131			251,624			248,223			251,512			3		(1)		249,597			251,512			(1)
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	91,535		$	92,594		$	95,453		$	97,306		$	100,996		(1)	%	(9)	%	$	92,062		$	107,354		(14)	%
International card businesses	8,139			7,940			8,108			8,061			7,752			3		5		8,040			8,408			(4)
Total credit card	99,674			100,534			103,561			105,367			108,748			(1)		(8)		100,102			115,762			(14)
Consumer banking:
Auto	69,543			66,185			65,590			64,476			61,798			5		13		67,873			61,401			11
Retail banking	3,162			3,049			3,218			3,346			3,053			4		4		3,106			2,860			9
Total consumer banking	72,705			69,234			68,808			67,822			64,851			5		12		70,979			64,261			10
Commercial banking:
Commercial and multifamily real estate	30,124			29,856			30,825			30,918			31,723			1		(5)		29,991			31,402			(4)
Commercial and industrial	43,960			44,313			44,495			45,404			48,036			(1)		(8)		44,135			46,699			(5)
Total commercial banking	74,084			74,169			75,320			76,322			79,759			—		(7)		74,126			78,101			(5)
Total average loans held for investment	$	246,463		$	243,937		$	247,689		$	249,511		$	253,358		1		(3)		$	245,207		$	258,124		(5)

																2021 Q2 vs.				Six Months Ended June 30,
	2021			2021			2020			2020			2020			2021		2020		2021			2020			2021 vs. 2020
	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2021			2020			2021 vs. 2020
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card		2.28	%		2.54	%		2.69	%		3.64	%		4.53	%	(26)	bps	(225)	bps		2.41	%		4.61	%	(220)	bps
International card businesses		2.41			2.30			1.86			2.89			3.47		11		(106)			2.36			4.11		(175)
Total credit card		2.29			2.52			2.63			3.58			4.46		(23)		(217)			2.41			4.57		(216)
Consumer banking:
Auto		(0.12)			0.47			0.47			0.23			1.16		(59)		(128)			0.17			1.33		(116)
Retail banking		1.41			1.68			1.88			1.38			1.78		(27)		(37)			1.54			2.05		(51)
Total consumer banking		(0.06)			0.52			0.53			0.28			1.19		(58)		(125)			0.23			1.36		(113)
Commercial banking:
Commercial and multifamily real estate		0.04			0.06			0.02			0.41			0.09		(2)		(5)			0.05			0.04		1
Commercial and industrial		(0.21)			0.11			0.74			0.45			0.78		(32)		(99)			(0.05)			0.87		(92)
Total commercial banking		(0.11)			0.09			0.45			0.43			0.51		(20)		(62)			(0.01)			0.54		(55)
Total net charge-offs		0.88			1.21			1.38			1.72			2.38		(33)		(150)			1.04			2.55		(151)
30+ Day Performing Delinquency Rates⁽⁴⁾
Credit card:
Domestic credit card		1.68	%		2.24	%		2.42	%		2.21	%		2.74	%	(56)	bps	(106)	bps		1.68	%		2.74	%	(106)	bps
International card businesses		2.89			2.51			2.61			2.15			2.71		38		18			2.89			2.71		18
Total credit card		1.75			2.26			2.44			2.20			2.74		(51)		(99)			1.75			2.74		(99)
Consumer banking:
Auto		3.26			3.12			4.78			3.76			3.28		14		(2)			3.26			3.28		(2)
Retail banking		0.79			1.02			1.32			0.83			0.89		(23)		(10)			0.79			0.89		(10)
Total consumer banking		3.16			3.03			4.62			3.62			3.16		13		—			3.16			3.16		—
Nonperforming Loans and Nonperforming Assets Rates⁽⁵⁾⁽⁶⁾
Credit card:
International card businesses		0.20	%		0.17	%		0.24	%		0.25	%		0.29	%	3	bps	(9)	bps		0.20	%		0.29	%	(9)	bps
Total credit card		0.01			0.01			0.02			0.02			0.02		—		(1)			0.01			0.02		(1)
Consumer banking:
Auto		0.29			0.29			0.45			0.36			0.41		—		(12)			0.29			0.41		(12)
Retail banking		1.75			1.16			0.96			0.77			0.70		59		105			1.75			0.70		105
Total consumer banking		0.35			0.33			0.47			0.38			0.43		2		(8)			0.35			0.43		(8)
Commercial banking:
Commercial and multifamily real estate		1.02			0.78			0.65			0.58			0.54		24		48			1.02			0.54		48
Commercial and industrial		1.03			1.02			1.00			1.31			1.06		1		(3)			1.03			1.06		(3)
Total commercial banking		1.03			0.92			0.86			1.01			0.85		11		18			1.03			0.85		18
Total nonperforming loans		0.41			0.38			0.40			0.42			0.38		3		3			0.41			0.38		3
Total nonperforming assets		0.43			0.40			0.41			0.44			0.39		3		4			0.43			0.39		4

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

	Three Months Ended June 30, 2021
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of March 31, 2021	$	9,572	$	500	$	10,072	$	2,405	$	93	$	2,498	$	1,447	$	14,017
Charge-offs	(874)		(93)		(967)		(245)		(15)		(260)		(8)		(1,235)
Recoveries	352		44		396		267		4		271		27		694
Net recoveries (charge-offs)	(522)		(49)		(571)		22		(11)		11		19		(541)
Provision (benefit) for credit losses	(561)		(74)		(635)		(305)		(1)		(306)		(196)		(1,137)
Allowance build (release) for credit losses	(1,083)		(123)		(1,206)		(283)		(12)		(295)		(177)		(1,678)
Other changes⁽⁷⁾	—		7		7		—		—		—		—		7
Balance as of June 30, 2021	8,489		384		8,873		2,122		81		2,203		1,270		12,346
Reserve for unfunded lending commitments:
Balance as of March 31, 2021	—		—		—		—		—		—		187		187
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(23)		(23)
Balance as of June 30, 2021	—		—		—		—		—		—		164		164
Combined allowance and reserve as of June 30, 2021	$	8,489	$	384	$	8,873	$	2,122	$	81	$	2,203	$	1,434	$	12,510

	Six Months Ended June 30, 2021
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2020	$	10,650	$	541	$	11,191	$	2,615	$	100	$	2,715	$	1,658	$	15,564
Charge-offs	(1,778)		(182)		(1,960)		(569)		(33)		(602)		(27)		(2,589)
Recoveries	669		87		756		513		9		522		30		1,308
Net recoveries (charge-offs)	(1,109)		(95)		(1,204)		(56)		(24)		(80)		3		(1,281)
Provision (benefit) for credit losses	(1,052)		(75)		(1,127)		(437)		5		(432)		(391)		(1,950)
Allowance build (release) for credit losses	(2,161)		(170)		(2,331)		(493)		(19)		(512)		(388)		(3,231)
Other changes⁽⁷⁾	—		13		13		—		—		—		—		13
Balance as of June 30, 2021	8,489		384		8,873		2,122		81		2,203		1,270		12,346
Reserve for unfunded lending commitments:
Balance as of December 31, 2020	—		—		—		—		—		—		195		195
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(31)		(31)
Balance as of June 30, 2021	—		—		—		—		—		—		164		164
Combined allowance and reserve as of June 30, 2021	$	8,489	$	384	$	8,873	$	2,122	$	81	$	2,203	$	1,434	$	12,510

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 9: Financial Summary—Business Segment Results

	Three Months Ended June 30, 2021										Six Months Ended June 30, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁸⁾		Other⁽⁸⁾		Total		Credit Card		Consumer Banking		Commercial Banking⁽⁸⁾		Other⁽⁸⁾		Total
Net interest income (loss)	$	3,217	$	2,101	$	460	$	(35)	$	5,743	$	6,589	$	4,131	$	980	$	(135)	$	11,565
Non-interest income (loss)	1,253		144		257		(23)		1,631		2,282		285		497		(142)		2,922
Total net revenue (loss)	4,470		2,245		717		(58)		7,374		8,871		4,416		1,477		(277)		14,487
Provision (benefit) for credit losses	(635)		(306)		(219)		—		(1,160)		(1,127)		(432)		(422)		(2)		(1,983)
Non-interest expense	2,263		1,123		417		163		3,966		4,398		2,240		836		232		7,706
Income (loss) from continuing operations before income taxes	2,842		1,428		519		(221)		4,568		5,600		2,608		1,063		(507)		8,764
Income tax provision (benefit)	672		337		123		(101)		1,031		1,325		615		251		(291)		1,900
Income (loss) from continuing operations, net of tax	$	2,170	$	1,091	$	396	$	(120)	$	3,537	$	4,275	$	1,993	$	812	$	(216)	$	6,864

	Three Months Ended March 31, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁸⁾		Other⁽⁸⁾		Total
Net interest income (loss)	$	3,372	$	2,030	$	520	$	(100)	$	5,822
Non-interest income (loss)	1,029		141		240		(119)		1,291
Total net revenue (loss)	4,401		2,171		760		(219)		7,113
Provision (benefit) for credit losses	(492)		(126)		(203)		(2)		(823)
Non-interest expense	2,135		1,117		419		69		3,740
Income (loss) from continuing operations before income taxes	2,758		1,180		544		(286)		4,196
Income tax provision (benefit)	653		278		128		(190)		869
Income (loss) from continuing operations, net of tax	$	2,105	$	902	$	416	$	(96)	$	3,327

	Three Months Ended June 30, 2020										Six Months Ended June 30, 2020
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁸⁾		Other⁽⁸⁾		Total		Credit Card		Consumer Banking		Commercial Banking⁽⁸⁾		Other⁽⁸⁾		Total
Net interest income (loss)	$	3,369	$	1,665	$	518	$	(92)	$	5,460	$	7,071	$	3,322	$	1,009	$	83	$	11,485
Non-interest income (loss)	845		97		180		(26)		1,096		1,756		223		418		(77)		2,320
Total net revenue (loss)	4,214		1,762		698		(118)		6,556		8,827		3,545		1,427		6		13,805
Provision (benefit) for credit losses	2,944		876		427		(1)		4,246		6,646		1,736		1,283		4		9,669
Non-interest expense	1,969		1,036		425		340		3,770		4,177		2,027		837		458		7,499
Loss from continuing operations before income taxes	(699)		(150)		(154)		(457)		(1,460)		(1,996)		(218)		(693)		(456)		(3,363)
Income tax benefit	(166)		(36)		(36)		(305)		(543)		(472)		(52)		(164)		(418)		(1,106)
Loss from continuing operations, net of tax	$	(533)	$	(114)	$	(118)	$	(152)	$	(917)	$	(1,524)	$	(166)	$	(529)	$	(38)	$	(2,257)

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 10: Financial & Statistical Summary—Credit Card Business
																2021 Q2 vs.				Six Months Ended June 30,
	2021			2021			2020			2020			2020			2021		2020								2021 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2021			2020			2020
Credit Card
Earnings:
Net interest income	$	3,217		$	3,372		$	3,413		$	3,292		$	3,369		(5)	%	(5)	%	$	6,589		$	7,071		(7)	%
Non-interest income	1,253			1,029			1,054			1,013			845			22		48		2,282			1,756			30
Total net revenue	4,470			4,401			4,467			4,305			4,214			2		6		8,871			8,827			—
Provision (benefit) for credit losses	(635)			(492)			231			450			2,944			29		**		(1,127)			6,646			**
Non-interest expense	2,263			2,135			2,311			2,003			1,969			6		15		4,398			4,177			5
Income (loss) from continuing operations before income taxes	2,842			2,758			1,925			1,852			(699)			3		**		5,600			(1,996)			**
Income tax provision (benefit)	672			653			454			438			(166)			3		**		1,325			(472)			**
Income (loss) from continuing operations, net of tax	$	2,170		$	2,105		$	1,471		$	1,414		$	(533)		3		**		$	4,275		$	(1,524)		**
Selected performance metrics:
Period-end loans held for investment⁽¹⁾⁽²⁾	$	101,017		$	99,127		$	106,956		$	103,641		$	107,310		2		(6)		$	101,017		$	107,310		(6)
Average loans held for investment	99,674			100,534			103,561			105,367			108,748			(1)		(8)		100,102			115,762			(14)
Average yield on loans outstanding⁽⁹⁾	14.04		%	14.49		%	14.24		%	13.83		%	13.72		%	(45)	bps	32	bps	14.26		%	14.11		%	15	bps
Total net revenue margin⁽¹⁰⁾	17.59			17.17			16.92			16.34			15.50			42		209		17.38			15.25			213
Net charge-off rate	2.29			2.52			2.63			3.58			4.46			(23)		(217)		2.41			4.57			(216)
30+ day performing delinquency rate	1.75			2.26			2.44			2.20			2.74			(51)		(99)		1.75			2.74			(99)
30+ day delinquency rate	1.75			2.27			2.45			2.21			2.75			(52)		(100)		1.75			2.75			(100)
Nonperforming loan rate⁽⁵⁾	0.01			0.01			0.02			0.02			0.02			—		(1)		0.01			0.02			(1)
Purchase volume⁽¹¹⁾	$	132,676		$	108,333		$	117,141		$	107,102		$	90,149		22	%	47	%	$	241,009		$	190,069		27	%

																2021 Q2 vs.				Six Months Ended June 30,
	2021			2021			2020			2020			2020			2021		2020								2021 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2021			2020			2020
Domestic Card
Earnings:
Net interest income	$	2,944		$	3,095		$	3,129		$	2,995		$	3,094		(5)	%	(5)	%	$	6,039		$	6,475		(7)	%
Non-interest income	1,183			959			994			952			795			23		49		2,142			1,637			31
Total net revenue	4,127			4,054			4,123			3,947			3,889			2		6		8,181			8,112			1
Provision (benefit) for credit losses	(561)			(491)			231			378			2,906			14		**		(1,052)			6,370			**
Non-interest expense	2,034			1,923			2,063			1,802			1,776			6		15		3,957			3,760			5
Income (loss) from continuing operations before income taxes	2,654			2,622			1,829			1,767			(793)			1		**		5,276			(2,018)			**
Income tax provision (benefit)	626			619			433			419			(188)			1		**		1,245			(478)			**
Income (loss) from continuing operations, net of tax	$	2,028		$	2,003		$	1,396		$	1,348		$	(605)		1		**		$	4,031		$	(1,540)		**
Selected performance metrics:
Period-end loans held for investment⁽¹⁾	$	95,309		$	91,099		$	98,504		$	95,541		$	99,390		5		(4)		$	95,309		$	99,390		(4)
Average loans held for investment	91,535			92,594			95,453			97,306			100,996			(1)		(9)		92,062			107,354			(14)
Average yield on loans outstanding⁽⁹⁾	13.91		%	14.34		%	14.07		%	13.57		%	13.52		%	(43)	bps	39	bps	14.13		%	13.93		%	20	bps
Total net revenue margin⁽¹⁰⁾	17.66			17.15			16.91			16.22			15.40			51		226		17.40			15.11			229
Net charge-off rate	2.28			2.54			2.69			3.64			4.53			(26)		(225)		2.41			4.61			(220)
30+ day performing delinquency rate	1.68			2.24			2.42			2.21			2.74			(56)		(106)		1.68			2.74			(106)
Purchase volume⁽¹¹⁾	$	122,456		$	99,960		$	107,572		$	98,107		$	82,860		23	%	48	%	$	222,416		$	175,108		27	%
Refreshed FICO scores:⁽¹²⁾
Greater than 660	72		%	70		%	69		%	69		%	67		%	2		5		72		%	67		%	5
660 or below	28			30			31			31			33			(2)		(5)		28			33			(5)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 11: Financial & Statistical Summary—Consumer Banking Business
																2021 Q2 vs.				Six Months Ended June 30,
	2021			2021			2020			2020			2020			2021		2020								2021 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2021			2020			2020
Consumer Banking
Earnings:
Net interest income	$	2,101		$	2,030		$	2,012		$	1,904		$	1,665		3	%	26	%	$	4,131		$	3,322		24	%
Non-interest income	144			141			136			107			97			2		48		285			223			28
Total net revenue	2,245			2,171			2,148			2,011			1,762			3		27		4,416			3,545			25
Provision (benefit) for credit losses	(306)			(126)			60			(43)			876			143		**		(432)			1,736			**
Non-interest expense	1,123			1,117			1,121			1,011			1,036			1		8		2,240			2,027			11
Income (loss) from continuing operations before income taxes	1,428			1,180			967			1,043			(150)			21		**		2,608			(218)			**
Income tax provision (benefit)	337			278			230			247			(36)			21		**		615			(52)			**
Income (loss) from continuing operations, net of tax	$	1,091		$	902		$	737		$	796		$	(114)		21		**		$	1,993		$	(166)		**
Selected performance metrics:
Period-end loans held for investment	$	74,759		$	70,202		$	68,888		$	68,688		$	66,712		6		12		$	74,759		$	66,712		12
Average loans held for investment	72,705			69,234			68,808			67,822			64,851			5		12		70,979			64,261			10
Average yield on loans held for investment⁽⁹⁾	7.99		%	8.16		%	8.28		%	8.36		%	8.41		%	(17)	bps	(42)	bps	8.07		%	8.44		%	(37)	bps
Auto loan originations	$	12,959		$	8,833		$	7,371		$	8,979		$	8,292		47	%	56	%	$	21,792		$	15,931		37	%
Period-end deposits	251,155			254,001			249,815			249,684			246,804			(1)		2		251,155			246,804			2
Average deposits	252,488			249,499			249,419			248,418			232,293			1		9		251,002			223,682			12
Average deposits interest rate	0.31		%	0.36		%	0.47		%	0.66		%	0.89		%	(5)	bps	(58)	bps	0.33		%	0.97		%	(64)	bps
Net charge-off (recovery) rate	(0.06)			0.52			0.53			0.28			1.19			(58)		(125)		0.23			1.36			(113)
30+ day performing delinquency rate	3.16			3.03			4.62			3.62			3.16			13		—		3.16			3.16			—
30+ day delinquency rate	3.40			3.25			5.00			3.90			3.48			15		(8)		3.40			3.48			(8)
Nonperforming loan rate⁽⁵⁾	0.35			0.33			0.47			0.38			0.43			2		(8)		0.35			0.43			(8)
Nonperforming asset rate⁽⁶⁾	0.40			0.39			0.54			0.43			0.46			1		(6)		0.40			0.46			(6)
Auto—At origination FICO scores:⁽¹³⁾
Greater than 660	48		%	47		%	46		%	46		%	46		%	1	%	2	%	48		%	46		%	2	%
621 – 660	20			20			20			20			20			—		—		20			20			—
620 or below	32			33			34			34			34			(1)		(2)		32			34			(2)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 12: Financial & Statistical Summary—Commercial Banking Business
																2021 Q2 vs.				Six Months Ended June 30,
	2021			2021			2020			2020			2020			2021		2020								2021 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2021			2020			2020
Commercial Banking
Earnings:
Net interest income	$	460		$	520		$	522		$	517		$	518		(12)	%	(11)	%	$	980		$	1,009		(3)	%
Non-interest income	257			240			268			237			180			7		43		497			418			19
Total net revenue⁽⁸⁾	717			760			790			754			698			(6)		3		1,477			1,427			4
Provision (benefit) for credit losses	(219)			(203)			(28)			(74)			427			8		**		(422)			1,283			**
Non-interest expense	417			419			445			424			425			—		(2)		836			837			—
Income (loss) from continuing operations before income taxes	519			544			373			404			(154)			(5)		**		1,063			(693)			**
Income tax provision (benefit)	123			128			88			95			(36)			(4)		**		251			(164)			**
Income (loss) from continuing operations, net of tax	$	396		$	416		$	285		$	309		$	(118)		(5)		**		$	812		$	(529)		**
Selected performance metrics:
Period-end loans held for investment⁽³⁾	$	73,821		$	73,802		$	75,780		$	75,894		$	77,490		—		(5)		$	73,821		$	77,490		(5)
Average loans held for investment	74,084			74,169			75,320			76,322			79,759			—		(7)		74,126			78,101			(5)
Average yield on loans held for investment⁽⁸⁾⁽⁹⁾	2.72		%	2.76		%	2.83		%	2.82		%	3.00		%	(4)	bps	(28)	bps	2.74		%	3.43		%	(69)	bps
Period-end deposits	$	42,973		$	41,552		$	39,590		$	36,783		$	35,669		3	%	20	%	$	42,973		$	35,669		20	%
Average deposits	42,311			40,107			38,676			36,278			34,635			5		22		41,215			33,437			23
Average deposits interest rate	0.14		%	0.18		%	0.23		%	0.25		%	0.30		%	(4)	bps	(16)	bps	0.16		%	0.58		%	(42)	bps
Net charge-off (recovery) rate	(0.11)			0.09			0.45			0.43			0.51			(20)		(62)		(0.01)			0.54			(55)
Nonperforming loan rate⁽⁵⁾	1.03			0.92			0.86			1.01			0.85			11		18		1.03			0.85			18
Nonperforming asset rate⁽⁶⁾	1.03			0.92			0.86			1.01			0.85			11		18		1.03			0.85			18
Risk category:⁽¹⁴⁾
Noncriticized	$	67,481		$	66,299		$	67,964		$	68,533		$	70,881		2	%	(5)	%	$	67,481		$	70,881		(5)	%
Criticized performing	5,581			6,821			7,166			6,593			5,949			(18)		(6)		5,581			5,949			(6)
Criticized nonperforming	759			682			650			768			660			11		15		759			660			15
Total commercial banking loans	$	73,821		$	73,802		$	75,780		$	75,894		$	77,490		—		(5)		$	73,821		$	77,490		(5)
Risk category as a percentage of period-end loans held for investment:⁽¹⁴⁾
Noncriticized	91.4		%	89.9		%	89.6		%	90.3		%	91.4		%	150	bps	—		91.4		%	91.4		%	—
Criticized performing	7.6			9.2			9.5			8.7			7.7			(160)		(10)	bps	7.6			7.7			(10)	bps
Criticized nonperforming	1.0			0.9			0.9			1.0			0.9			10		10		1.0			0.9			10
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
											2021 Q2 vs.				Six Months Ended June 30,
	2021		2021		2020		2020		2020		2021		2020						2021 vs.
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2021		2020		2020
Other
Earnings:
Net interest income (loss)	$	(35)	$	(100)	$	(74)	$	(158)	$	(92)	(65)	%	(62)	%	$	(135)	$	83	**
Non-interest income (loss)	(23)		(119)		6		469		(26)		(81)		(12)		(142)		(77)		84	%
Total net revenue (loss)⁽⁸⁾	(58)		(219)		(68)		311		(118)		(74)		(51)		(277)		6		**
Provision (benefit) for credit losses	—		(2)		1		(2)		(1)		**		**		(2)		4		**
Non-interest expense⁽¹⁵⁾	163		69		132		110		340		136		(52)		232		458		(49)
Income (loss) from continuing operations before income taxes	(221)		(286)		(201)		203		(457)		(23)		(52)		(507)		(456)		11
Income tax provision (benefit)	(101)		(190)		(276)		316		(305)		(47)		(67)		(291)		(418)		(30)
Income (loss) from continuing operations, net of tax	$	(120)	$	(96)	$	75	$	(113)	$	(152)	25		(21)		$	(216)	$	(38)	**
Selected performance metrics:
Period-end deposits	$	12,180	$	14,775	$	16,037	$	19,258	$	21,765	(18)		(44)		$	12,180	$	21,765	(44)
Average deposits	13,418		15,450		16,418		20,820		21,416		(13)		(37)		14,428		19,379		(26)
Total
Earnings:
Net interest income	$	5,743	$	5,822	$	5,873	$	5,555	$	5,460	(1)	%	5	%	$	11,565	$	11,485	1	%
Non-interest income	1,631		1,291		1,464		1,826		1,096		26		49		2,922		2,320		26
Total net revenue	7,374		7,113		7,337		7,381		6,556		4		12		14,487		13,805		5
Provision (benefit) for credit losses	(1,160)		(823)		264		331		4,246		41		**		(1,983)		9,669		**
Non-interest expense	3,966		3,740		4,009		3,548		3,770		6		5		7,706		7,499		3
Income (loss) from continuing operations before income taxes	4,568		4,196		3,064		3,502		(1,460)		9		**		8,764		(3,363)		**
Income tax provision (benefit)	1,031		869		496		1,096		(543)		19		**		1,900		(1,106)		**
Income (loss) from continuing operations, net of tax	$	3,537	$	3,327	$	2,568	$	2,406	$	(917)	6		**		$	6,864	$	(2,257)	**
Selected performance metrics:
Period-end loans held for investment	$	249,597	$	243,131	$	251,624	$	248,223	$	251,512	3		(1)		$	249,597	$	251,512	(1)
Average loans held for investment	246,463		243,937		247,689		249,511		253,358		1		(3)		245,207		258,124		(5)
Period-end deposits	306,308		310,328		305,442		305,725		304,238		(1)		1		306,308		304,238		1
Average deposits	308,217		305,056		304,513		305,516		288,344		1		7		306,645		276,498		11

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)

⁽¹⁾	We reclassified $2.1 billion in partnership loans to held for sale as of September 30, 2020.
⁽²⁾	We reclassified $2.6 billion in international partnership loans to held for sale as of June 30, 2021.
⁽³⁾	We reclassified $1.5 billion in commercial loans to held for sale as of June 30, 2021.
⁽⁴⁾	Metrics include the impact of COVID-19 customer assistance programs where applicable.
⁽⁵⁾	Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category.
⁽⁶⁾	Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.
⁽⁷⁾	Represents foreign currency translation adjustments.
⁽⁸⁾	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.
⁽⁹⁾	Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing.
⁽¹⁰⁾	Total net revenue margin is calculated based on total net revenue for the period divided by average loans outstanding during the period.
⁽¹¹⁾	Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.
⁽¹²⁾	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.
⁽¹³⁾	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.
⁽¹⁴⁾	Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.
⁽¹⁵⁾	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, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Regulatory Capital Metrics
Common equity excluding AOCI	$	58,969		$	57,607		$	55,299		$	52,839		$	50,614
Adjustments:
AOCI, net of tax⁽²⁾	(5)			(13)			(29)			(122)			(145)
Goodwill, net of related deferred tax liabilities	(14,440)			(14,444)			(14,448)			(14,448)			(14,449)
Intangible assets, net of related deferred tax liabilities	(76)			(81)			(86)			(95)			(135)
Other	(16)			(18)			—			—			—
Common equity Tier 1 capital	$	44,432		$	43,051		$	40,736		$	38,174		$	35,885
Tier 1 capital	$	50,920		$	47,898		$	45,583		$	43,505		$	41,094
Total capital⁽³⁾	57,932			54,780			52,788			50,955			48,508
Risk-weighted assets	307,372			295,209			297,903			293,852			290,222
Adjusted average assets⁽⁴⁾	411,032			408,596			406,762			409,602			398,062
Capital Ratios
Common equity Tier 1 capital⁽⁵⁾	14.5		%	14.6		%	13.7		%	13.0		%	12.4		%
Tier 1 capital⁽⁶⁾	16.6			16.2			15.3			14.8			14.2
Total capital⁽⁷⁾	18.8			18.6			17.7			17.3			16.7
Tier 1 leverage⁽⁴⁾	12.4			11.7			11.2			10.6			10.3
Tangible common equity (“TCE”)⁽⁸⁾	10.6			10.1			10.0			9.4			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.

	2021						2020						Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	Q2			Q1			Q2			Q1			2021			2020
Adjusted diluted EPS:
Net income (loss) available to common stockholders (GAAP)	$	3,446		$	3,236		$	(1,009)		$	(1,420)		$	6,682		$	(2,429)
Legal reserve activity, including insurance recoveries	55			—			265			45			55			310
Cybersecurity Incident expenses, net of insurance	—			—			11			4			—			15
Adjusted net income (loss) available to common stockholders before income tax impacts (non-GAAP)	3,501			3,236			(733)			(1,371)			6,737			(2,104)
Income tax impacts	(13)			—			(3)			(12)			(13)			(15)
Adjusted net income (loss) available to common stockholders (non-GAAP)	$	3,488		$	3,236		$	(736)		$	(1,383)		$	6,724		$	(2,119)

Diluted weighted-average common shares outstanding (in millions) (GAAP)	452.3			460.1			456.7			457.6			456.2			457.1

Diluted EPS (GAAP)	$	7.62		$	7.03		$	(2.21)		$	(3.10)		$	14.65		$	(5.31)
Impact of adjustments noted above	0.09			—			0.60			0.08			0.09			0.67
Adjusted diluted EPS (non-GAAP)	$	7.71		$	7.03		$	(1.61)		$	(3.02)		$	14.74		$	(4.64)

Adjusted efficiency ratio:
Non-interest expense (GAAP)	$	3,966		$	3,740		$	3,770		$	3,729		$	7,706		$	7,499
Legal reserve activity, including insurance recoveries	(55)			—			(265)			(45)			(55)			(310)
Cybersecurity Incident expenses, net of insurance	—			—			(11)			(4)			—			(15)
Adjusted non-interest expense (non-GAAP)	$	3,911		$	3,740		$	3,494		$	3,680		$	7,651		$	7,174

Total net revenue (GAAP)	$	7,374		$	7,113		$	6,556		$	7,249		$	14,487		$	13,805

Efficiency ratio (GAAP)	53.78		%	52.58		%	57.50		%	51.44		%	53.19		%	54.32		%
Impact of adjustments noted above	(74)		bps	—		bps	(421)		bps	(67)		bps	(38)		bps	(235)		bps
Adjusted efficiency ratio (non-GAAP)	53.04		%	52.58		%	53.29		%	50.77		%	52.81		%	51.97		%

Adjusted operating efficiency ratio:
Operating expense (GAAP)	$	3,346		$	3,239		$	3,497		$	3,238		$	6,585		$	6,735
Legal reserve activity, including insurance recoveries	(55)			—			(265)			(45)			(55)			(310)
Cybersecurity Incident expenses, net of insurance	—			—			(11)			(4)			—			(15)
Adjusted operating expense (non-GAAP)	$	3,291		$	3,239		$	3,221		$	3,189		$	6,530		$	6,410

Total net revenue (GAAP)	$	7,374		$	7,113		$	6,556		$	7,249		$	14,487		$	13,805

Operating efficiency ratio (GAAP)	45.38		%	45.54		%	53.34		%	44.67		%	45.45		%	48.79		%
Impact of adjustments noted above	(75)		bps	—		bps	(421)		bps	(68)		bps	(38)		bps	(236)		bps
Adjusted operating efficiency ratio (non-GAAP)	44.63		%	45.54		%	49.13		%	43.99		%	45.07		%	46.43		%

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.

	2021		2021		2020		2020		2020
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2
Tangible Common Equity (Period-End)
Stockholders’ equity	$	64,624	$	61,188	$	60,204	$	58,424	$	56,045
Goodwill and intangible assets⁽⁹⁾	(14,774)		(14,789)		(14,809)		(14,825)		(14,869)
Noncumulative perpetual preferred stock	(6,488)		(4,847)		(4,847)		(5,330)		(5,209)
Tangible common equity	$	43,362	$	41,552	$	40,548	$	38,269	$	35,967
Tangible Common Equity (Average)
Stockholders’ equity	$	62,376	$	60,623	$	59,389	$	57,223	$	57,623
Goodwill and intangible assets⁽⁹⁾	(14,788)		(14,807)		(14,824)		(14,867)		(14,880)
Noncumulative perpetual preferred stock	(5,491)		(4,847)		(5,168)		(5,228)		(5,209)
Tangible common equity	$	42,097	$	40,969	$	39,397	$	37,128	$	37,534
Tangible Assets (Period-End)
Total assets	$	423,420	$	425,175	$	421,602	$	421,883	$	421,296
Goodwill and intangible assets⁽⁹⁾	(14,774)		(14,789)		(14,809)		(14,825)		(14,869)
Tangible assets	$	408,646	$	410,386	$	406,793	$	407,058	$	406,427
Tangible Assets (Average)
Total assets	$	424,099	$	421,808	$	420,011	$	422,854	$	411,075
Goodwill and intangible assets⁽⁹⁾	(14,788)		(14,807)		(14,824)		(14,867)		(14,880)
Tangible assets	$	409,311	$	407,001	$	405,187	$	407,987	$	396,195

__________
⁽¹⁾	Regulatory capital metrics and capital ratios as of June 30, 2021 are preliminary and therefore subject to change.
⁽²⁾	Excludes certain components of AOCI as permitted under the Tailoring Rules.
⁽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⁾	Includes impact of related deferred taxes.

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SOURCE Capital One Financial Corporation