PR Newswire | Jan 26, 2021 04:06PM EST

per share

01/26 15:05 CST

Capital One Reports Fourth Quarter 2020 Net Income of $2.6 billion, or $5.35 per shareExcluding adjusting items, Fourth Quarter 2020 Net Income of $5.29 per share(1) MCLEAN, Va., Jan. 26, 2021

MCLEAN, Va., Jan. 26, 2021 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2020 of $2.6 billion, or $5.35 per diluted common share, compared with net income of $2.4 billion, or $5.06 per diluted common share in the third quarter of 2020, and with net income of $1.2 billion, or $2.25 per diluted common share in the fourth quarter of 2019. Excluding adjusting items, net income for the fourth quarter of 2020 was $5.29 per diluted common share(1). In addition, Capital One's Board of Directors has authorized a common stock repurchase program of up to $7.5 billion.

"Our long-standing strategic choices put us in a strong position to respond to both the near-term challenges and the emerging opportunities as the pandemic plays out," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "Despite the pressures of the pandemic in the near-term, nothing has changed about where we think our businesses are headed, or the long-term strategic opportunities that are being created as sweeping digital change continues to transform banking."

Adjusting items in the fourth quarter of 2020, which are excluded from diluted earnings per share (EPS), efficiency ratio and operating efficiency ratio metrics (see Table 15 in our Financial Supplement for additional information):

(Dollars in millions, except per share data) Pre-TaxDiluted EPS Impact Impact

Legal reserve activity, including insurance recoveries$37 $ 0.07

Cybersecurity Incident expenses, net of insurance (6) (0.01)



The quarter included the following notable item:



(Dollars in millions, except per share data) Pre-TaxDiluted EPS Impact Impact

Equity investment gain $60 $ 0.10

All comparisons below are for the fourth quarter of 2020 compared with the third quarter of 2020 unless otherwise noted.

Fourth Quarter 2020 Income Statement Summary:

* Total net revenue decreased 1 percent to $7.3 billion. * Total non-interest expense increased 13 percent to $4.0 billion: * 99 percent increase in marketing. * 6 percent increase in operating expenses.

* Pre-provision earnings decreased 13 percent to $3.3 billion(2). * Provision for credit losses decreased 20 percent to $264 million: * Net charge-offs of $856 million. * $593 million loan reserve release.

* Net interest margin of 6.05 percent, an increase of 37 basis points. * Efficiency ratio of 54.64 percent. * Efficiency ratio excluding adjusting items of 55.06 percent(1).

* Operating efficiency ratio of 46.97 percent. * Operating efficiency ratio excluding adjusting items of 47.39 percent(1).

Fourth Quarter 2020 Balance Sheet Summary:

* Common equity Tier 1 capital ratio under Basel III Standardized Approach of 13.7 percent at December 31, 2020. * Period-end loans held for investment in the quarter increased $3.4 billion, or 1 percent, to $251.6 billion. * Credit Card period-end loans increased $3.3 billion, or 3 percent, to $107.0 billion. * Domestic Card period-end loans increased $3.0 billion, or 3 percent, to $98.5 billion.

* Consumer Banking period-end loans increased $200 million, or less than 1 percent, to $68.9 billion. * Auto period-end loans increased $368 million, or 1 percent, to $65.8 billion.

* Commercial Banking period-end loans decreased $114 million, or less than 1 percent, to $75.8 billion.

* Average loans held for investment in the quarter decreased $1.8 billion, or 1 percent, to $247.7 billion. * Credit Card average loans decreased $1.8 billion, or 2 percent, to $103.6 billion. * Domestic Card average loans decreased $1.9 billion, or 2 percent, to $95.5 billion.

* Consumer Banking average loans increased $986 million, or 1 percent, to $68.8 billion. * Auto average loans increased $1.1 billion, or 2 percent, to $65.6 billion.

* Commercial Banking average loans decreased $1.0 billion, or 1 percent, to $75.3 billion.

* Period-end total deposits decreased $283 million, or less than 1 percent, to $305.4 billion, while average deposits decreased $1.0 billion, or less than 1 percent, to $304.5 billion. * Interest-bearing deposits rate paid decreased 18 basis points to 0.51 percent.

All comparisons below are for the full year of 2020 compared with the full year of 2019 unless otherwise noted.

2020 Full Year Income Statement Summary:

* Total net revenue decreased less than 1% to $28.5 billion. * Total non-interest expense decreased 3 percent to $15.1 billion: * 29 percent decrease in marketing. * 2 percent increase in operating expenses.

* Pre-provision earnings increased 3 percent to $13.5 billion(2). * Provision for credit losses increased 65 percent to $10.3 billion: * Efficiency ratio of 52.79 percent. * Efficiency ratio excluding adjusting items of 51.66 percent(1).

* Operating efficiency ratio of 47.14 percent. * Operating efficiency ratio excluding adjusting items of 46.01 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(1) 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.

^ Pre-provision earnings is calculated based on the sum of net interest(2) income and non-interest income, less non-interest expense for the period.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on January 26, 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 February 9, 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, 2019.

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 $305.4 billion in deposits and $421.6 billion in total assets as of December 31, 2020. 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)

Fourth Quarter 2020

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 10 Statements (Tables 1-4)

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 15 Activity

Business Segment Results

Table 9: Financial Summary-Business Segment Results 17

Table 10: Financial & Statistical Summary-Credit Card Business 18

Table 11: Financial & Statistical Summary-Consumer Banking Business 20

Table 12: Financial & Statistical Summary-Commercial Banking Business 21

Table 13: Financial & Statistical Summary-Other and Total 22

Other

Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7-13) 23

Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP 24 Measures

__________

The information contained in this Financial Supplement is preliminary and based on data available at the time of the^(1) earnings presentation. Investors should refer to our Annual Report on Form 10-K for the period ended December 31, 2020 once it is filed with the Securities and Exchange Commission.

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^(2) 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

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs.(Dollars in millions, except per share data and as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019 2019

Income Statement

Net interest income $ 5,873 $ 5,555 $ 5,460 $ 6,025 $ 6,066 6 % (3) % $ 22,913 $ 23,340 (2) %

Non-interest income 1,464 1,826 1,096 1,224 1,361 (20) 8 5,610 5,253 7

Total net revenue^(1) 7,337 7,381 6,556 7,249 7,427 (1) (1) 28,523 28,593 -

Provision for credit losses 264 331 4,246 5,423 1,818 (20) (85) 10,264 6,236 65

Non-interest expense:

Marketing 563 283 273 491 710 99 (21) 1,610 2,274 (29)

Operating expense 3,446 3,265 3,497 3,238 3,451 6 - 13,446 13,209 2

Total non-interest expense 4,009 3,548 3,770 3,729 4,161 13 (4) 15,056 15,483 (3)

Income (loss) from continuing operations before income taxes 3,064 3,502 (1,460) (1,903) 1,448 (13) 112 3,203 6,874 (53)

Income tax provision (benefit) 496 1,096 (543) (563) 270 (55) 84 486 1,341 (64)

Income (loss) from continuing operations, net of tax 2,568 2,406 (917) (1,340) 1,178 7 118 2,717 5,533 (51)

Income (loss) from discontinued operations, net of tax (2) - (1) - (2) ** - (3) 13 **

Net income (loss) 2,566 2,406 (918) (1,340) 1,176 7 118 2,714 5,546 (51)

Dividends and undistributed earnings allocated to participating securities^(2) (19) (20) (1) (3) (7) (5) 171 (20) (41) (51)

Preferred stock dividends (68) (67) (90) (55) (97) 1 (30) (280) (282) (1)

Issuance cost for redeemed preferred stock^(3) (17) - - (22) (31) ** (45) (39) (31) 26

Net income (loss) available to common stockholders $ 2,462 $ 2,319 $ (1,009) $ (1,420) $ 1,041 6 137 $ 2,375 $ 5,192 (54)

Common Share Statistics

Basic earnings per common share:^(2)

Net income (loss) from continuing operations $ 5.36 $ 5.07 $ (2.21) $ (3.10) $ 2.26 6 % 137 % $ 5.20 $ 11.07 (53) %

Income (loss) from discontinued operations - - - - - - - (0.01) 0.03 **

Net income (loss) per basic common share $ 5.36 $ 5.07 $ (2.21) $ (3.10) $ 2.26 6 137 $ 5.19 $ 11.10 (53)

Diluted earnings per common share:^(2)

Net income (loss) from continuing operations $ 5.35 $ 5.06 $ (2.21) $ (3.10) $ 2.25 6 138 $ 5.19 $ 11.02 (53)

Income (loss) from discontinued operations - - - - - - - (0.01) 0.03 **

Net income (loss) per diluted common share $ 5.35 $ 5.06 $ (2.21) $ (3.10) $ 2.25 6 138 $ 5.18 $ 11.05 (53)

Weighted-average common shares outstanding (in millions):

Basic 459.1 457.8 456.7 457.6 460.9 - - 457.8 467.6 (2)

Diluted 460.2 458.5 456.7 457.6 463.4 - (1) 458.9 469.9 (2)

Common shares outstanding (period-end, in millions) 459.0 457.4 456.3 455.3 456.6 - 1 459.0 456.6 1

Dividends declared and paid per common share $ 0.10 $ 0.10 $ 0.40 $ 0.40 $ 0.40 - (75) $ 1.00 $ 1.60 (38)

Tangible book value per common share (period-end)^(4) 88.34 83.67 78.82 80.68 83.72 6 6 88.34 83.72 6

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs.(Dollars in millions) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019 2019

Balance Sheet (Period-End)

Loans held for investment $ 251,624 $ 248,223 $ 251,512 $ 262,990 $ 265,809 1 % (5) % $ 251,624 $ 265,809 (5) %

Interest-earning assets 388,917 390,040 389,829 364,472 355,202 - 9 388,917 355,202 9

Total assets 421,602 421,883 421,296 396,878 390,365 - 8 421,602 390,365 8

Interest-bearing deposits 274,300 276,092 275,183 245,142 239,209 (1) 15 274,300 239,209 15

Total deposits 305,442 305,725 304,238 269,689 262,697 - 16 305,442 262,697 16

Borrowings 40,539 42,795 44,900 55,681 55,697 (5) (27) 40,539 55,697 (27)

Common equity 55,356 53,093 50,835 51,620 53,157 4 4 55,356 53,157 4

Total stockholders' equity 60,204 58,424 56,045 56,830 58,011 3 4 60,204 58,011 4

Balance Sheet (Average Balances)

Loans held for investment $ 247,689 $ 249,511 $ 253,358 $ 262,889 $ 258,870 (1) % (4) % $ 253,335 $ 247,450 2 %

Interest-earning assets 388,252 391,451 378,145 355,347 349,150 (1) 11 378,362 341,510 11

Total assets 420,011 422,854 411,075 390,380 383,162 (1) 10 411,187 374,924 10

Interest-bearing deposits 274,142 276,339 261,256 241,115 236,250 (1) 16 263,279 231,609 14

Total deposits 304,513 305,516 288,344 264,653 260,040 - 17 290,835 255,065 14

Borrowings 40,662 44,161 49,827 51,795 51,442 (8) (21) 46,588 50,965 (9)

Common equity 54,220 51,995 52,413 53,186 52,641 4 3 52,954 50,960 4

Total stockholders' equity 59,389 57,223 57,623 58,568 58,148 4 2 58,201 55,690 5

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics-Consolidated

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs.(Dollars in millions, except as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019 2019

Performance Metrics

Net interest income growth (period over period) 6 % 2 % (9) % (1) % 6 % ** ** (2) % 2 % **

Non-interest income growth (period over period) (20) 67 (10) (10) 11 ** ** 7 1 **

Total net revenue growth (period over period) (1) 13 (10) (2) 7 ** ** - 2 **

Total net revenue margin^(5) 7.56 7.54 6.93 8.16 8.51 2 bps (95) bps 7.54 8.37 (83) bps

Net interest margin^(6) 6.05 5.68 5.78 6.78 6.95 37 (90) 6.06 6.83 (77)

Return on average assets 2.45 2.28 (0.89) (1.37) 1.23 17 122 0.66 1.48 (82)

Return on average tangible assets^(7) 2.54 2.36 (0.93) (1.43) 1.28 18 126 0.69 1.54 (85)

Return on average common equity^(8) 18.18 17.84 (7.69) (10.68) 7.93 34 10 % 4.49 10.16 (6) %

Return on average tangible common equity^(9) 25.02 24.98 (10.74) (14.85) 11.07 4 14 6.24 14.37 (8)

Non-interest expense as a percentage of average loans held for 6.47 5.69 5.95 5.67 6.43 78 4 bps 5.94 6.26 (32) bpsinvestment

Efficiency ratio^(10) 54.64 48.07 57.50 51.44 56.03 7 % (139) 52.79 54.15 (136)

Operating efficiency ratio^(11) 46.97 44.24 53.34 44.67 46.47 273 bps 50 47.14 46.20 94

Effective income tax rate for continuing operations 16.2 31.3 37.2 29.6 18.6 (15) % (240) 15.2 19.5 (4) %

Employees (period-end, in thousands) 52.0 52.5 53.1 52.1 51.9 (1) - 52.0 51.9 -

Credit Quality Metrics

Allowance for credit losses $ 15,564 $ 16,129 $ 16,832 $ 14,073 $ 7,208 (4) % 116 % $ 15,564 $ 7,208 116 %

Allowance coverage ratio 6.19 % 6.50 % 6.69 % 5.35 % 2.71 % (31) bps 348 bps 6.19 % 2.71 % 348 bps

Net charge-offs $ 856 $ 1,073 $ 1,505 $ 1,791 $ 1,683 (20) % (49) % $ 5,225 $ 6,252 (16) %

Net charge-off rate^(12) 1.38 % 1.72 % 2.38 % 2.72 % 2.60 % (34) bps (122) bps 2.06 % 2.53 % (47) bps

30+ day performing delinquency rate^(13) 2.41 1.97 2.09 2.95 3.51 44 (110) 2.41 3.51 (110)

30+ day delinquency rate^(13) 2.61 2.22 2.30 3.16 3.74 39 (113) 2.61 3.74 (113)

Capital Ratios^(14)

Common equity Tier 1 capital 13.7 % 13.0 % 12.4 % 12.0 % 12.2 % 70 bps 150 bps 13.7 % 12.2 % 150 bps

Tier 1 capital 15.3 14.8 14.2 13.7 13.7 50 160 15.3 13.7 160

Total capital 17.7 17.3 16.7 16.1 16.1 40 160 17.7 16.1 160

Tier 1 leverage 11.2 10.6 10.3 11.0 11.7 60 (50) 11.2 11.7 (50)

Tangible common equity ("TCE")^(15) 10.0 9.4 8.8 9.6 10.2 60 (20) 10.0 10.2 (20)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs.

(Dollars in millions, except per share data and as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019 2019

Interest income:

Loans, including loans held for sale $ 5,954 $ 5,758 $ 5,820 $ 6,542 $ 6,682 3 % (11) % $ 24,074 $ 25,862 (7) %

Investment securities 422 443 482 530 544 (5) (22) 1,877 2,411 (22)

Other 15 14 16 37 44 7 (66) 82 240 (66)

Total interest income 6,391 6,215 6,318 7,109 7,270 3 (12) 26,033 28,513 (9)

Interest expense:

Deposits 347 476 611 731 832 (27) (58) 2,165 3,420 (37)

Securitized debt obligations 34 43 56 99 118 (21) (71) 232 523 (56)

Senior and subordinated notes 128 132 180 239 236 (3) (46) 679 1,159 (41)

Other borrowings 9 9 11 15 18 - (50) 44 71 (38)

Total interest expense 518 660 858 1,084 1,204 (22) (57) 3,120 5,173 (40)

Net interest income 5,873 5,555 5,460 6,025 6,066 6 (3) 22,913 23,340 (2)

Provision for credit losses 264 331 4,246 5,423 1,818 (20) (85) 10,264 6,236 65

Net interest income after provision for credit losses 5,609 5,224 1,214 602 4,248 7 32 12,649 17,104 (26)

Non-interest income:

Interchange fees, net 818 775 672 752 811 6 1 3,017 3,179 (5)

Service charges and other customer-related fees 338 320 258 327 342 6 (1) 1,243 1,330 (7)

Net securities gains (losses) - 25 - - (18) ** ** 25 26 (4)

Other 308 706 166 145 226 (56) 36 1,325 718 85

Total non-interest income 1,464 1,826 1,096 1,224 1,361 (20) 8 5,610 5,253 7

Non-interest expense:

Salaries and associate benefits 1,755 1,719 1,704 1,627 1,652 2 6 6,805 6,388 7

Occupancy and equipment 572 506 523 517 565 13 1 2,118 2,098 1

Marketing 563 283 273 491 710 99 (21) 1,610 2,274 (29)

Professional services 394 327 304 287 318 20 24 1,312 1,237 6

Communications and data processing 295 310 308 302 346 (5) (15) 1,215 1,290 (6)

Amortization of intangibles 8 14 16 22 28 (43) (71) 60 112 (46)

Other^(16) 422 389 642 483 542 8 (22) 1,936 2,084 (7)

Total non-interest expense 4,009 3,548 3,770 3,729 4,161 13 (4) 15,056 15,483 (3)

Income (loss) from continuing operations before income taxes 3,064 3,502 (1,460) (1,903) 1,448 (13) 112 3,203 6,874 (53)

Income tax provision (benefit) 496 1,096 (543) (563) 270 (55) 84 486 1,341 (64)

Income (loss) from continuing operations, net of tax 2,568 2,406 (917) (1,340) 1,178 7 118 2,717 5,533 (51)

Income (loss) from discontinued operations, net of tax (2) - (1) - (2) ** - (3) 13 **

Net income (loss) 2,566 2,406 (918) (1,340) 1,176 7 118 2,714 5,546 (51)

Dividends and undistributed earnings allocated to participating securities^(2) (19) (20) (1) (3) (7) (5) 171 (20) (41) (51)

Preferred stock dividends (68) (67) (90) (55) (97) 1 (30) (280) (282) (1)

Issuance cost for redeemed preferred stock^(3) (17) - - (22) (31) ** (45) (39) (31) 26

Net income (loss) available to common stockholders $ 2,462 $ 2,319 $ (1,009) $ (1,420) $ 1,041 6 137 $ 2,375 $ 5,192 (54)

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs.

(Dollars in millions, except per share data and as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019 2019

Basic earnings per common share:^(2)

Net income (loss) from continuing operations $ 5.36 $ 5.07 $ (2.21) $ (3.10) $ 2.26 6 % 137 % $ 5.20 $ 11.07 (53) %

Income (loss) from discontinued operations - - - - - - - (0.01) 0.03 **

Net income (loss) per basic common share $ 5.36 $ 5.07 $ (2.21) $ (3.10) $ 2.26 6 137 $ 5.19 $ 11.10 (53)

Diluted earnings per common share:^(2)

Net income (loss) from continuing operations $ 5.35 $ 5.06 $ (2.21) $ (3.10) $ 2.25 6 138 $ 5.19 $ 11.02 (53)

Income (loss) from discontinued operations - - - - - - - (0.01) 0.03 **

Net income (loss) per diluted common share $ 5.35 $ 5.06 $ (2.21) $ (3.10) $ 2.25 6 138 $ 5.18 $ 11.05 (53)

Weighted-average common shares outstanding (in millions):

Basic common shares 459.1 457.8 456.7 457.6 460.9 - - 457.8 467.6 (2)

Diluted common shares 460.2 458.5 456.7 457.6 463.4 - (1) 458.9 469.9 (2)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets

2020 Q4 vs.

2020 2020 2020 2020 2019 2020 2019

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

Assets:

Cash and cash equivalents:

Cash and due from banks $ 4,708 $ 4,267 $ 4,583 $ 4,545 $ 4,129 10 % 14 %

Interest-bearing deposits and other short-term investments 35,801 39,839 51,235 20,391 9,278 (10) **

Total cash and cash equivalents 40,509 44,106 55,818 24,936 13,407 (8) **

Restricted cash for securitization investors 262 895 740 364 342 (71) (23)

Securities available for sale 100,445 99,853 87,859 81,423 79,213 1 27

Loans held for investment:

Unsecuritized loans held for investment 225,698 217,878 222,310 231,318 231,992 4 (3)

Loans held in consolidated trusts 25,926 30,345 29,202 31,672 33,817 (15) (23)

Total loans held for investment 251,624 248,223 251,512 262,990 265,809 1 (5)

Allowance for credit losses (15,564) (16,129) (16,832) (14,073) (7,208) (4) 116

Net loans held for investment 236,060 232,094 234,680 248,917 258,601 2 (9)

Loans held for sale 2,710 3,433 711 1,056 400 (21) **

Premises and equipment, net 4,287 4,333 4,324 4,336 4,378 (1) (2)

Interest receivable 1,471 1,551 1,574 1,687 1,758 (5) (16)

Goodwill 14,653 14,648 14,645 14,645 14,653 - -

Other assets 21,205 20,970 20,945 19,514 17,613 1 20

Total assets $ 421,602 $ 421,883 $ 421,296 $ 396,878 $ 390,365 - 8

2020 Q4 vs.

2020 2020 2020 2020 2019 2020 2019

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

Liabilities:

Interest payable $ 352 $ 332 $ 380 $ 359 $ 439 6 % (20) %

Deposits:

Non-interest-bearing deposits 31,142 29,633 29,055 24,547 23,488 5 33

Interest-bearing deposits 274,300 276,092 275,183 245,142 239,209 (1) 15

Total deposits 305,442 305,725 304,238 269,689 262,697 - 16

Securitized debt obligations 12,414 13,566 15,761 17,141 17,808 (8) (30)

Other debt:

Federal funds purchased and securities loaned or sold under agreements to 668 702 573 399 314 (5) 113repurchase

Senior and subordinated notes 27,382 28,448 28,481 32,049 30,472 (4) (10)

Other borrowings 75 79 85 6,092 7,103 (5) (99)

Total other debt 28,125 29,229 29,139 38,540 37,889 (4) (26)

Other liabilities 15,065 14,607 15,733 14,319 13,521 3 11

Total liabilities 361,398 363,459 365,251 340,048 332,354 (1) 9

Stockholders' equity:

Preferred stock 0 0 0 0 0 - -

Common stock 7 7 7 7 7 - -

Additional paid-in capital, net 33,480 33,793 33,556 33,450 32,980 (1) 2

Retained earnings 40,088 37,653 35,361 36,552 40,340 6 (1)

Accumulated other comprehensive income 3,494 3,833 3,981 3,679 1,156 (9) **

Treasury stock, at cost (16,865) (16,862) (16,860) (16,858) (16,472) - 2

Total stockholders' equity 60,204 58,424 56,045 56,830 58,011 3 4

Total liabilities and stockholders' equity $ 421,602 $ 421,883 $ 421,296 $ 396,878 $ 390,365 - 8

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

Total net revenue was reduced by $177 million in Q4 2020, $235 million in Q3 2020, $318 million in Q2 2020 and $389 million in Q1 2020 for credit card^(1) finance charges and fees charged-off as uncollectible, and by $365 million in Q4 2019 for the estimated uncollectible amount of credit card finance charges and fees and related losses.

Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each^(2) 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.

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^(3) stock Series B, which increased our net loss available to common shareholders by $22 million in Q1 2020. On December 2, 2019, we redeemed all outstanding shares of our fixed rate 6.25% non-cumulative perpetual preferred stock Series C and fixed rate 6.70% non-cumulative perpetual preferred stock Series D, which reduced our net income available to common shareholders by $31 million in Q4 2019.

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:^(4) 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 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.

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^(7) 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.

Return on average common equity is calculated based on net income (loss) available to common stockholders less income (loss) from discontinued^(8) 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.

Return on average tangible common equity ("ROTCE") is a non-GAAP measure calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average^(9) 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.

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^(10) 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.

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,^(11) 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 for Q4 2020, Q3 2020, Q2 2020 and Q1 2020 include the impact of COVID-19 customer assistance programs where applicable.

Capital ratios as of the end of Q4 2020 are preliminary and therefore subject^(14) 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.

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

Includes net Cybersecurity Incident expenses of $6 million in Q4 2020, $6^(16) million in Q3 2020, $11 million in Q2 2020, $4 million in Q1 2020 and $16 million in Q4 2019, respectively.

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

2020 Q4 2020 Q3 2019 Q4

Interest Interest Interest Average Income/ Yield/Rate Average Income/ Yield/Rate Average Income/ Yield/Rate(Dollars in millions, except as noted) Balance Expense Balance Expense Balance Expense

Interest-earning assets:

Loans, including loans held for sale $ 251,135 $ 5,954 9.48 % $ 250,525 $ 5,758 9.19 % $ 259,855 $ 6,682 10.29 %

Investment securities 97,640 422 1.73 91,777 443 1.93 79,104 544 2.75

Cash equivalents and other 39,477 15 0.15 49,149 14 0.11 10,191 44 1.70

Total interest-earning assets $ 388,252 $ 6,391 6.58 $ 391,451 $ 6,215 6.35 $ 349,150 $ 7,270 8.33

Interest-bearing liabilities:

Interest-bearing deposits $ 274,143 $ 347 0.51 $ 276,339 $ 476 0.69 $ 236,250 $ 832 1.41

Securitized debt obligations 12,651 34 1.08 15,032 43 1.14 18,339 118 2.58

Senior and subordinated notes 27,386 128 1.87 28,497 132 1.86 30,597 236 3.08

Other borrowings and liabilities 2,095 9 1.75 2,119 9 1.77 3,789 18 1.95

Total interest-bearing liabilities $ 316,275 $ 518 0.65 $ 321,987 $ 660 0.82 $ 288,975 $ 1,204 1.67

Net interest income/spread $ 5,873 5.93 $ 5,555 5.53 $ 6,066 6.66

Impact of non-interest-bearing funding 0.12 0.15 0.29

Net interest margin 6.05 % 5.68 % 6.95 %

Year Ended December 31,

2020 2019

Interest Interest Average Income/ Yield/Rate Average Income/ Yield/Rate(Dollars in millions, except as noted) Balance Expense Balance Expense

Interest-earning assets:

Loans, including loans held for sale $ 254,901 $ 24,074 9.44 % $ 248,552 $ 25,862 10.41 %

Investment securities 87,222 1,877 2.15 81,467 2,411 2.96

Cash equivalents and other 36,239 82 0.23 11,491 240 2.08

Total interest-earning assets $ 378,362 $ 26,033 6.88 $ 341,510 $ 28,513 8.35

Interest-bearing liabilities:

Interest-bearing deposits $ 263,279 $ 2,165 0.82 $ 231,609 $ 3,420 1.48

Securitized debt obligations 15,533 232 1.49 18,020 523 2.90

Senior and subordinated notes 29,621 679 2.29 30,821 1,159 3.76

Other borrowings and liabilities 2,882 44 1.55 3,369 71 2.12

Total interest-bearing liabilities $ 311,315 $ 3,120 1.00 $ 283,819 $ 5,173 1.82

Net interest income/spread $ 22,913 5.88 $ 23,340 6.53

Impact of non-interest-bearing funding 0.18 0.30

Net interest margin 6.06 % 6.83 %

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs. 2020 2019 2019(Dollars in millions, except as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q4

Loans Held for Investment (Period-End)

Credit card:

Domestic credit card^(7) $ 98,504 $ 95,541 $ 99,390 $ 109,549 $ 118,606 3 % (17) % $ 98,504 $ 118,606 (17) %

International card businesses 8,452 8,100 7,920 8,248 9,630 4 (12) 8,452 9,630 (12)

Total credit card^(1) 106,956 103,641 107,310 117,797 128,236 3 (17) 106,956 128,236 (17)

Consumer banking:

Auto 65,762 65,394 63,319 61,364 60,362 1 9 65,762 60,362 9

Retail banking 3,126 3,294 3,393 2,669 2,703 (5) 16 3,126 2,703 16

Total consumer banking 68,888 68,688 66,712 64,033 63,065 - 9 68,888 63,065 9

Commercial banking:

Commercial and multifamily real estate 30,681 31,197 30,953 32,373 30,245 (2) 1 30,681 30,245 1

Commercial and industrial 45,099 44,697 46,537 48,787 44,263 1 2 45,099 44,263 2

Total commercial banking 75,780 75,894 77,490 81,160 74,508 - 2 75,780 74,508 2

Total loans held for investment $ 251,624 $ 248,223 $ 251,512 $ 262,990 $ 265,809 1 (5) $ 251,624 $ 265,809 (5)

Loans Held for Investment (Average)

Credit card:

Domestic credit card $ 95,453 $ 97,306 $ 100,996 $ 113,711 $ 112,965 (2) % (16) % $ 101,837 $ 105,270 (3) %

International card businesses 8,108 8,061 7,752 9,065 9,120 1 (11) 8,245 8,932 (8)

Total credit card^(1) 103,561 105,367 108,748 122,776 122,085 (2) (15) 110,082 114,202 (4)

Consumer banking:

Auto 65,590 64,476 61,798 61,005 59,884 2 10 63,227 57,938 9

Retail banking 3,218 3,346 3,053 2,666 2,712 (4) 19 3,072 2,770 11

Total consumer banking 68,808 67,822 64,851 63,671 62,596 1 10 66,299 60,708 9

Commercial banking:

Commercial and multifamily real estate 30,825 30,918 31,723 31,081 30,173 - 2 31,135 29,608 5

Commercial and industrial 44,495 45,404 48,036 45,361 44,016 (2) 1 45,819 42,863 7

Total commercial lending 75,320 76,322 79,759 76,442 74,189 (1) 2 76,954 72,471 6

Small-ticket commercial real estate - - - - - ** ** - 69 **

Total commercial banking 75,320 76,322 79,759 76,442 74,189 (1) 2 76,954 72,540 6

Total average loans held for investment $ 247,689 $ 249,511 $ 253,358 $ 262,889 $ 258,870 (1) (4) $ 253,335 $ 247,450 2

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs. 2019 Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019

Net Charge-Off Rates

Credit card:

Domestic credit card 2.69 % 3.64 % 4.53 % 4.68 % 4.32 % (95) bps (163) bps 3.93 % 4.58 % (65) bps

International card businesses 1.86 2.89 3.47 4.65 4.22 (103) (236) 3.26 3.71 (45)

Total credit card 2.63 3.58 4.46 4.68 4.31 (95) (168) 3.88 4.51 (63)

Consumer banking:

Auto 0.47 0.23 1.16 1.51 1.90 24 (143) 0.83 1.51 (68)

Retail banking 1.88 1.38 1.78 2.37 2.77 50 (89) 1.82 2.57 (75)

Total consumer banking 0.53 0.28 1.19 1.54 1.93 25 (140) 0.87 1.56 (69)

Commercial banking:

Commercial and multifamily real estate 0.02 0.41 0.09 - - (39) 2 0.13 - 13

Commercial and industrial 0.74 0.45 0.78 0.96 0.60 29 14 0.73 0.36 37

Total commercial banking 0.45 0.43 0.51 0.57 0.35 2 10 0.49 0.22 27

Total net charge-offs 1.38 1.72 2.38 2.72 2.60 (34) (122) 2.06 2.53 (47)

30+ Day Performing Delinquency Rates^(2)

Credit card:

Domestic credit card 2.42 % 2.21 % 2.74 % 3.69 % 3.93 % 21 bps (151) bps 2.42 % 3.93 % (151) bps

International card businesses 2.61 2.15 2.71 3.66 3.47 46 (86) 2.61 3.47 (86)

Total credit card 2.44 2.20 2.74 3.69 3.89 24 (145) 2.44 3.89 (145)

Consumer banking:

Auto 4.78 3.76 3.28 5.29 6.88 102 (210) 4.78 6.88 (210)

Retail banking 1.32 0.83 0.89 1.27 1.02 49 30 1.32 1.02 30

Total consumer banking 4.62 3.62 3.16 5.12 6.63 100 (201) 4.62 6.63 (201)

Nonperforming Loans and Nonperforming Assets Rates^(3)(4)

Credit card:

International card businesses 0.24 % 0.25 % 0.29 % 0.29 % 0.26 % (1) bps (2) bps 0.24 % 0.26 % (2) bps

Total credit card 0.02 0.02 0.02 0.02 0.02 - - 0.02 0.02 -

Consumer banking:

Auto 0.45 0.36 0.41 0.62 0.81 9 (36) 0.45 0.81 (36)

Retail banking 0.96 0.77 0.70 0.88 0.87 19 9 0.96 0.87 9

Total consumer banking 0.47 0.38 0.43 0.63 0.81 9 (34) 0.47 0.81 (34)

Commercial banking:

Commercial and multifamily real estate 0.65 0.58 0.54 0.22 0.12 7 53 0.65 0.12 53

Commercial and industrial 1.00 1.31 1.06 0.87 0.93 (31) 7 1.00 0.93 7

Total commercial banking 0.86 1.01 0.85 0.61 0.60 (15) 26 0.86 0.60 26

Total nonperforming loans 0.40 0.42 0.38 0.35 0.37 (2) 3 0.40 0.37 3

Total nonperforming assets 0.41 0.44 0.39 0.37 0.39 (3) 2 0.41 0.39 2

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 8: Allowance for Credit Losses and Reserve for Unfunded LendingCommitments Activity

Three Months Ended December 31, 2020

Credit Card Consumer Banking

Domestic International Total Credit Retail Total Commercial(Dollars in millions) Card Card Card Auto Banking Consumer Banking Total Businesses Banking

Allowance for credit losses:

Balance as of September 30, 2020 $ 11,062 $ 550 $ 11,612 $ 2,647 $ 100 $ 2,747 $ 1,770 $ 16,129

Charge-offs (912) (80) (992) (309) (18) (327) (91) (1,410)

Recoveries 269 43 312 232 3 235 7 554

Net charge-offs (643) (37) (680) (77) (15) (92) (84) (856)

Provision (benefit) for credit losses 231 - 231 45 15 60 (28) 263

Allowance release for credit losses (412) (37) (449) (32) - (32) (112) (593)

Other changes^(5) - 28 28 - - - - 28

Balance as of December 31, 2020 10,650 541 11,191 2,615 100 2,715 1,658 15,564

Reserve for unfunded lending commitments:

Balance as of September 30, 2020 - - - - - - 195 195

Provision for losses on unfunded lending commitments - - - - - - - -

Balance as of December 31, 2020 - - - - - - 195 195

Combined allowance and reserve as of December 31, 2020 $ 10,650 $ 541 $ 11,191 $ 2,615 $ 100 $ 2,715 $ 1,853 $ 15,759

Year Ended December 31, 2020

Credit Card Consumer Banking

Domestic International Total Credit Retail Total Commercial(Dollars in millions) Card Card Card Auto Banking Consumer Banking Total Businesses Banking

Allowance for credit losses:

Balance as of December 31, 2019 $ 4,997 $ 398 $ 5,395 $ 984 $ 54 $ 1,038 $ 775 $ 7,208

Cumulative effects from adoption of the current expected credit loss ("CECL") 2,237 4 2,241 477 25 502 102 2,845standard

Finance charge and fee reserve reclassification^(1) 439 23 462 - - - - 462

Balance as of January 1, 2020 7,673 425 8,098 1,461 79 1,540 877 10,515

Charge-offs (5,318) (431) (5,749) (1,464) (70) (1,534) (394) (7,677)

Recoveries 1,316 163 1,479 942 14 956 17 2,452

Net charge-offs (4,002) (268) (4,270) (522) (56) (578) (377) (5,225)

Provision for credit losses 6,979 348 7,327 1,676 77 1,753 1,158 10,238

Allowance build for credit losses 2,977 80 3,057 1,154 21 1,175 781 5,013

Other changes^(5) - 36 36 - - - - 36

Balance as of December 31, 2020 10,650 541 11,191 2,615 100 2,715 1,658 15,564

Reserve for unfunded lending commitments:

Balance as of December 31, 2019 - - - - 5 5 130 135

Cumulative effects from adoption of the CECL standard - - - - (5) (5) 42 37

Balance as of January 1, 2020 - - - - - - 172 172

Provision for losses on unfunded lending commitments - - - - - - 23 23

Balance as of December 31, 2020 - - - - - - 195 195

Combined allowance and reserve as of December 31, 2020 $ 10,650 $ 541 $ 11,191 $ 2,615 $ 100 $ 2,715 $ 1,853 $ 15,759

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary-Business Segment Results

Three Months Ended December 31, 2020 Year Ended December 31, 2020

(Dollars in millions) Credit Consumer Commercial Other^(6) Total Credit Consumer Commercial Other^(6) Total Card Banking Banking^(6) Card Banking Banking^(6)

Net interest income (loss) $ 3,413 $ 2,012 $ 522 $ (74) $ 5,873 $ 13,776 $ 7,238 $ 2,048 $ (149) $ 22,913

Non-interest income 1,054 136 268 6 1,464 3,823 466 923 398 5,610

Total net revenue (loss) 4,467 2,148 790 (68) 7,337 17,599 7,704 2,971 249 28,523

Provision (benefit) for credit losses 231 60 (28) 1 264 7,327 1,753 1,181 3 10,264

Non-interest expense 2,311 1,121 445 132 4,009 8,491 4,159 1,706 700 15,056

Income (loss) from continuing operations before income 1,925 967 373 (201) 3,064 1,781 1,792 84 (454) 3,203taxes

Income tax provision (benefit) 454 230 88 (276) 496 420 425 19 (378) 486

Income (loss) from continuing operations, net of tax $ 1,471 $ 737 $ 285 $ 75 $ 2,568 $ 1,361 $ 1,367 $ 65 $ (76) $ 2,717

Three Months Ended September 30, 2020

(Dollars in millions) Credit Consumer Commercial Other^(6) Total Card Banking Banking^(6)

Net interest income (loss) $ 3,292 $ 1,904 $ 517 $ (158) $ 5,555

Non-interest income 1,013 107 237 469 1,826

Total net revenue 4,305 2,011 754 311 7,381

Provision (benefit) for credit losses 450 (43) (74) (2) 331

Non-interest expense 2,003 1,011 424 110 3,548

Income (loss) from continuing operations before income 1,852 1,043 404 203 3,502taxes

Income tax provision (benefit) 438 247 95 316 1,096

Income (loss) from continuing operations, net of tax $ 1,414 $ 796 $ 309 $ (113) $ 2,406

Three Months Ended December 31, 2019 Year Ended December 31, 2019

(Dollars in millions) Credit Consumer Commercial Other^(6) Total Credit Consumer Commercial Other^(6) Total Card Banking Banking^(6) Card Banking Banking^(6)

Net interest income $ 3,794 $ 1,662 $ 494 $ 116 $ 6,066 $ 14,461 $ 6,732 $ 1,983 $ 164 $ 23,340

Non-interest income (loss) 1,030 152 223 (44) 1,361 3,888 643 831 (109) 5,253

Total net revenue 4,824 1,814 717 72 7,427 18,349 7,375 2,814 55 28,593

Provision for credit losses 1,421 335 62 - 1,818 4,992 938 306 - 6,236

Non-interest expense 2,487 1,110 441 123 4,161 9,271 4,091 1,699 422 15,483

Income (loss) from continuing operations before income 916 369 214 (51) 1,448 4,086 2,346 809 (367) 6,874taxes

Income tax provision (benefit) 212 86 50 (78) 270 959 547 188 (353) 1,341

Income (loss) from continuing operations, net of tax $ 704 $ 283 $ 164 $ 27 $ 1,178 $ 3,127 $ 1,799 $ 621 $ (14) $ 5,533

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary-Credit Card Business

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs.

(Dollars in millions, except as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019 2019

Credit Card

Earnings:

Net interest income $ 3,413 $ 3,292 $ 3,369 $ 3,702 $ 3,794 4 % (10) % $ 13,776 $ 14,461 (5) %

Non-interest income 1,054 1,013 845 911 1,030 4 2 3,823 3,888 (2)

Total net revenue 4,467 4,305 4,214 4,613 4,824 4 (7) 17,599 18,349 (4)

Provision for credit losses 231 450 2,944 3,702 1,421 (49) (84) 7,327 4,992 47

Non-interest expense 2,311 2,003 1,969 2,208 2,487 15 (7) 8,491 9,271 (8)

Income (loss) from continuing operations before income taxes 1,925 1,852 (699) (1,297) 916 4 110 1,781 4,086 (56)

Income tax provision (benefit) 454 438 (166) (306) 212 4 114 420 959 (56)

Income (loss) from continuing operations, net of tax $ 1,471 $ 1,414 $ (533) $ (991) $ 704 4 109 $ 1,361 $ 3,127 (56)

Selected performance metrics:

Period-end loans held for investment^(1)(7) $ 106,956 $ 103,641 $ 107,310 $ 117,797 $ 128,236 3 (17) $ 106,956 $ 128,236 (17)

Average loans held for investment^(1) 103,561 105,367 108,748 122,776 122,085 (2) (15) 110,082 114,202 (4)

Average yield on loans outstanding^(8) 14.24 % 13.83 % 13.72 % 14.46 % 15.02 % 41 bps (78) bps 14.08 % 15.49 % (141) bps

Total net revenue margin^(9) 16.92 16.34 15.50 15.03 15.80 58 112 15.91 16.07 (16)

Net charge-off rate 2.63 3.58 4.46 4.68 4.31 (95) (168) 3.88 4.51 (63)

30+ day performing delinquency rate 2.44 2.20 2.74 3.69 3.89 24 (145) 2.44 3.89 (145)

30+ day delinquency rate 2.45 2.21 2.75 3.70 3.91 24 (146) 2.45 3.91 (146)

Nonperforming loan rate^(3) 0.02 0.02 0.02 0.02 0.02 - - 0.02 0.02 -

Purchase volume^(10) $ 117,141 $ 107,102 $ 90,149 $ 99,920 $ 116,631 9 % - $ 414,312 $ 424,765 (2) %

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs.

(Dollars in millions, except as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019 2019

Domestic Card

Earnings:

Net interest income $ 3,129 $ 2,995 $ 3,094 $ 3,381 $ 3,473 4 % (10) % $ 12,599 $ 13,265 (5) %

Non-interest income 994 952 795 842 962 4 3 3,583 3,684 (3)

Total net revenue 4,123 3,947 3,889 4,223 4,435 4 (7) 16,182 16,949 (5)

Provision for credit losses 231 378 2,906 3,464 1,346 (39) (83) 6,979 4,671 49

Non-interest expense 2,063 1,802 1,776 1,984 2,249 14 (8) 7,625 8,308 (8)

Income (loss) from continuing operations before income taxes 1,829 1,767 (793) (1,225) 840 4 118 1,578 3,970 (60)

Income tax provision (benefit) 433 419 (188) (290) 196 3 121 374 925 (60)

Income (loss) from continuing operations, net of tax $ 1,396 $ 1,348 $ (605) $ (935) $ 644 4 117 $ 1,204 $ 3,045 (60)

Selected performance metrics:

Period-end loans held for investment^(1)(7) $ 98,504 $ 95,541 $ 99,390 $ 109,549 $ 118,606 3 (17) $ 98,504 $ 118,606 (17)

Average loans held for investment^(1) 95,453 97,306 100,996 113,711 112,965 (2) (16) 101,837 105,270 (3)

Average yield on loans outstanding^(8) 14.07 % 13.57 % 13.52 % 14.30 % 14.91 % 50 bps (84) bps 13.88 % 15.47 % (159) bps

Total net revenue margin^(9) 16.91 16.22 15.40 14.86 15.70 69 121 15.80 16.10 (30)

Net charge-off rate 2.69 3.64 4.53 4.68 4.32 (95) (163) 3.93 4.58 (65)

30+ day performing delinquency rate 2.42 2.21 2.74 3.69 3.93 21 (151) 2.42 3.93 (151)

Purchase volume^(10) $ 107,572 $ 98,107 $ 82,860 $ 92,248 $ 107,154 10 % - $ 380,787 $ 390,032 (2) %

Refreshed FICO scores:^(11)

Greater than 660 69 % 69 % 67 % 65 % 67 % - 2 % 69 % 67 % 2

660 or below 31 31 33 35 33 - (2) 31 33 (2)

Total 100 % 100 % 100 % 100 % 100 % 100 % 100 %

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary-Consumer Banking Business

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs.

(Dollars in millions, except as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019 2019

Consumer Banking

Earnings:

Net interest income $ 2,012 $ 1,904 $ 1,665 $ 1,657 $ 1,662 6 % 21 % $ 7,238 $ 6,732 8 %

Non-interest income 136 107 97 126 152 27 (11) 466 643 (28)

Total net revenue 2,148 2,011 1,762 1,783 1,814 7 18 7,704 7,375 4

Provision (benefit) for credit losses 60 (43) 876 860 335 ** (82) 1,753 938 87

Non-interest expense 1,121 1,011 1,036 991 1,110 11 1 4,159 4,091 2

Income (loss) from continuing operations before income taxes 967 1,043 (150) (68) 369 (7) 162 1,792 2,346 (24)

Income tax provision (benefit) 230 247 (36) (16) 86 (7) 167 425 547 (22)

Income (loss) from continuing operations, net of tax $ 737 $ 796 $ (114) $ (52) $ 283 (7) 160 $ 1,367 $ 1,799 (24)

Selected performance metrics:

Period-end loans held for investment $ 68,888 $ 68,688 $ 66,712 $ 64,033 $ 63,065 - 9 $ 68,888 $ 63,065 9

Average loans held for investment 68,808 67,822 64,851 63,671 62,596 1 10 66,299 60,708 9

Average yield on loans held for investment^(8) 8.28 % 8.36 % 8.41 % 8.46 % 8.51 % (8) bps (23) bps 8.37 % 8.37 % -

Auto loan originations $ 7,371 $ 8,979 $ 8,292 $ 7,640 $ 7,527 (18) % (2) % $ 32,282 $ 29,251 10 %

Period-end deposits 249,815 249,684 246,804 217,607 213,099 - 17 249,815 213,099 17

Average deposits 249,419 248,418 232,293 215,071 209,783 - 19 236,369 205,012 15

Average deposits interest rate 0.47 % 0.66 % 0.89 % 1.06 % 1.20 % (19) bps (73) bps 0.76 % 1.24 % (48) bps

Net charge-off rate 0.53 0.28 1.19 1.54 1.93 25 (140) 0.87 1.56 (69)

30+ day performing delinquency rate 4.62 3.62 3.16 5.12 6.63 100 (201) 4.62 6.63 (201)

30+ day delinquency rate 5.00 3.90 3.48 5.65 7.34 110 (234) 5.00 7.34 (234)

Nonperforming loan rate^(3) 0.47 0.38 0.43 0.63 0.81 9 (34) 0.47 0.81 (34)

Nonperforming asset rate^(4) 0.54 0.43 0.46 0.71 0.91 11 (37) 0.54 0.91 (37)

Auto-At origination FICO scores:^(12)

Greater than 660 46 % 46 % 46 % 47 % 48 % - (2) % 46 % 48 % (2) %

621 - 660 20 20 20 20 20 - - 20 20 -

620 or below 34 34 34 33 32 - 2 34 32 2

Total 100 % 100 % 100 % 100 % 100 % 100 % 100 %

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary-Commercial Banking Business

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs.

(Dollars in millions, except as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019 2019

Commercial Banking

Earnings:

Net interest income $ 522 $ 517 $ 518 $ 491 $ 494 1 % 6 % $ 2,048 $ 1,983 3 %

Non-interest income 268 237 180 238 223 13 20 923 831 11

Total net revenue^(6) 790 754 698 729 717 5 10 2,971 2,814 6

Provision (benefit) for credit losses (28) (74) 427 856 62 (62) ** 1,181 306 286

Non-interest expense 445 424 425 412 441 5 1 1,706 1,699 -

Income (loss) from continuing operations before income taxes 373 404 (154) (539) 214 (8) 74 84 809 (90)

Income tax provision (benefit) 88 95 (36) (128) 50 (7) 76 19 188 (90)

Income (loss) from continuing operations, net of tax $ 285 $ 309 $ (118) $ (411) $ 164 (8) 74 $ 65 $ 621 (90)

Selected performance metrics:

Period-end loans held for investment $ 75,780 $ 75,894 $ 77,490 $ 81,160 $ 74,508 - 2 $ 75,780 $ 74,508 2

Average loans held for investment 75,320 76,322 79,759 76,442 74,189 (1) 2 76,954 72,540 6

Average yield on loans held for investment^(6)(8) 2.83 % 2.82 % 3.00 % 3.88 % 4.22 % 1 bps (139) bps 3.13 % 4.51 % (138) bps

Period-end deposits $ 39,590 $ 36,783 $ 35,669 $ 32,822 $ 32,134 8 % 23 % $ 39,590 $ 32,134 23 %

Average deposits 38,676 36,278 34,635 32,238 32,034 7 21 35,468 31,229 14

Average deposits interest rate 0.23 % 0.25 % 0.30 % 0.89 % 1.10 % (2) bps (87) bps 0.40 % 1.18 % (78) bps

Net charge-off rate 0.45 0.43 0.51 0.57 0.35 2 10 0.49 0.22 27

Nonperforming loan rate^(3) 0.86 1.01 0.85 0.61 0.60 (15) 26 0.86 0.60 26

Nonperforming asset rate^(4) 0.86 1.01 0.85 0.61 0.60 (15) 26 0.86 0.60 26

Risk category:^(13)

Noncriticized $ 67,964 $ 68,533 $ 70,881 $ 77,714 $ 71,848 (1) % (5) % $ 67,964 $ 71,848 (5) %

Criticized performing 7,166 6,593 5,949 2,952 2,181 9 ** 7,166 2,181 **

Criticized nonperforming 650 768 660 494 448 (15) 45 650 448 45

PCI loans - - - - 31 - ** - 31 **

Total commercial banking loans $ 75,780 $ 75,894 $ 77,490 $ 81,160 $ 74,508 - 2 $ 75,780 $ 74,508 2

Risk category as a percentage of period-end loans held for investment:^(13)

Noncriticized 89.6 % 90.3 % 91.4 % 95.8 % 96.5 % (70) bps (690) bps 89.6 % 96.5 % (690) bps

Criticized performing 9.5 8.7 7.7 3.6 2.9 80 660 9.5 2.9 660

Criticized nonperforming 0.9 1.0 0.9 0.6 0.6 (10) 30 0.9 0.6 30

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

2020 Q4 vs. Year Ended December 31,

2020 2020 2020 2020 2019 2020 2019 2020 vs.

(Dollars in millions) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2020 2019 2019

Other

Earnings:

Net interest income (loss) $ (74) $ (158) $ (92) $ 175 $ 116 (53) % ** $ (149) $ 164 **

Non-interest income (loss) 6 469 (26) (51) (44) (99) ** 398 (109) **

Total net revenue (loss)^(6) (68) 311 (118) 124 72 ** ** 249 55 **

Provision (benefit) for credit losses 1 (2) (1) 5 - ** ** 3 - **

Non-interest expense^(14)(15) 132 110 340 118 123 20 7 % 700 422 66 %

Income (loss) from continuing operations before income taxes (201) 203 (457) 1 (51) ** ** (454) (367) 24

Income tax provision (benefit) (276) 316 (305) (113) (78) ** 254 (378) (353) 7

Income (loss) from continuing operations, net of tax $ 75 $ (113) $ (152) $ 114 $ 27 ** 178 $ (76) $ (14) **

Selected performance metrics:

Period-end deposits $ 16,037 $ 19,258 $ 21,765 $ 19,260 $ 17,464 (17) (8) $ 16,037 $ 17,464 (8)

Average deposits 16,418 20,820 21,416 17,344 18,223 (21) (10) 18,998 18,824 1

Total

Earnings:

Net interest income $ 5,873 $ 5,555 $ 5,460 $ 6,025 $ 6,066 6 % (3) % $ 22,913 $ 23,340 (2) %

Non-interest income 1,464 1,826 1,096 1,224 1,361 (20) 8 5,610 5,253 7

Total net revenue 7,337 7,381 6,556 7,249 7,427 (1) (1) 28,523 28,593 -

Provision for credit losses 264 331 4,246 5,423 1,818 (20) (85) 10,264 6,236 65

Non-interest expense 4,009 3,548 3,770 3,729 4,161 13 (4) 15,056 15,483 (3)

Income (loss) from continuing operations before income taxes 3,064 3,502 (1,460) (1,903) 1,448 (13) 112 3,203 6,874 (53)

Income tax provision (benefit) 496 1,096 (543) (563) 270 (55) 84 486 1,341 (64)

Income (loss) from continuing operations, net of tax $ 2,568 $ 2,406 $ (917) $ (1,340) $ 1,178 7 118 $ 2,717 $ 5,533 (51)

Selected performance metrics:

Period-end loans held for investment $ 251,624 $ 248,223 $ 251,512 $ 262,990 $ 265,809 1 (5) $ 251,624 $ 265,809 (5)

Average loans held for investment 247,689 249,511 253,358 262,889 258,870 (1) (4) 253,335 247,450 2

Period-end deposits 305,442 305,725 304,238 269,689 262,697 - 16 305,442 262,697 16

Average deposits 304,513 305,516 288,344 264,653 260,040 - 17 290,835 255,065 14

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables7-13)

Concurrent with our adoption of the CECL standard in the first quarter of 2020,^(1) we reclassified our finance charge and fee reserve to our allowance for credit losses, with a corresponding increase to credit card loans held for investment.

^(2) Metrics for Q4 2020, Q3 2020, Q2 2020 and Q1 2020 include the impact of COVID-19 customer assistance programs where applicable.

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

Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based^(4) on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.

^(5) Represents foreign currency translation adjustments.

Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and^(6) 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) We reclassified $2.1 billion in partnership loans to held for sale as of September 30, 2020.

Average yield is calculated based on annualized interest income for the period^(8) divided by average loans during the period. Annualized interest income 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 outstanding during the period.

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

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(11) 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.

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(12) 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.

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

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

^ Includes net Cybersecurity Incident expenses of $6 million in Q4 2020, $6(15) million in Q3 2020, $11 million in Q2 2020, $4 million in Q1 2020 and $16 million in Q4 2019, respectively.

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

Basel III Standardized Approach

(Dollars in millions, except as noted) December 31, September 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019

Regulatory Capital Metrics

Common equity excluding AOCI $ 55,299 $ 52,839 $ 50,614 $ 51,018 $ 52,001

Adjustments:

AOCI, net of tax^(2) (29) (122) (145) (170) 1,156

Goodwill, net of related deferred tax liabilities (14,448) (14,448) (14,449) (14,453) (14,465)

Intangible assets, net of related deferred tax liabilities (86) (95) (135) (151) (170)

Other^(2) - - - - (360)

Common equity Tier 1 capital $ 40,736 $ 38,174 $ 35,885 $ 36,244 $ 38,162

Tier 1 capital $ 45,583 $ 43,505 $ 41,094 $ 41,453 $ 43,015

Total capital^(3) 52,783 50,955 48,508 48,775 50,350

Risk-weighted assets 297,483 293,852 290,222 302,871 313,155

Adjusted average assets^(4) 406,762 409,602 398,062 377,360 368,511

Capital Ratios

Common equity Tier 1 capital^(5) 13.7 % 13.0 % 12.4 % 12.0 % 12.2 %

Tier 1 capital^(6) 15.3 14.8 14.2 13.7 13.7

Total capital^(7) 17.7 17.3 16.7 16.1 16.1

Tier 1 leverage^(4) 11.2 10.6 10.3 11.0 11.7

Tangible common equity ("TCE")^(8) 10.0 9.4 8.8 9.6 10.2

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of our adjusted results that we believehelp investors and users of our financial information understand the effect ofadjusting items

on our selected reported results. These adjusted results provide alternatemeasurements of our operating performance, both for the current period andtrends across multiple

periods. The following tables present reconciliations of these non-GAAPmeasures to the applicable amounts measured in accordance with GAAP.

2020 2019 Year Ended December 31,

(Dollars in millions, except per share data and as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2020 2019

Adjusted diluted EPS:

Net income (loss) available to common stockholders (GAAP) $ 2,462 $ 2,319 $ (1,009) $ (1,420) $ 1,041 $ 1,270 $ 1,533 $ 1,348 $ 2,375 $ 5,192

Legal reserve activity, including insurance recoveries (37) 40 265 45 - - - - 313 -

U.K. Payment Protection Insurance customer refund reserve ("U.K. PPI - (36) - - - 212 - - (36) 212Reserve")

Cybersecurity Incident expenses, net of insurance 6 6 11 4 16 22 - - 27 38

Initial allowance build on acquired Walmart portfolio - - - - 84 - - - - 84

Walmart launch and related integration expenses - - - - 48 84 54 25 - 211

Restructuring charges - - - - - - 28 - - 28

Adjusted net income (loss) available to common stockholders before 2,431 2,329 (733) (1,371) 1,189 1,588 1,615 1,373 2,679 5,765income tax impacts (non-GAAP)

Income tax impacts 5 (12) (3) (12) (35) (21) (19) (6) (22) (81)

Dividends and undistributed earnings allocated to participating securities^(9) - - - - (1) (2) (1) - (2) (3)

Adjusted net income (loss) available to common stockholders (non-GAAP) $ 2,436 $ 2,317 $ (736) $ (1,383) $ 1,153 $ 1,565 $ 1,595 $ 1,367 $ 2,655 $ 5,681

Diluted weighted-average common shares outstanding (in millions) (GAAP) 460.2 458.5 456.7 457.6 463.4 471.8 473.0 471.6 458.9 469.9

Diluted EPS (GAAP) $ 5.35 $ 5.06 $ (2.21) $ (3.10) $ 2.25 $ 2.69 $ 3.24 $ 2.86 $ 5.18 $ 11.05

Impact of adjustments noted above (0.06) (0.01) 0.60 0.08 0.24 0.63 0.13 0.04 0.61 1.04

Adjusted diluted EPS $ 5.29 $ 5.05 $ (1.61) $ (3.02) $ 2.49 $ 3.32 $ 3.37 $ 2.90 $ 5.79 $ 12.09

Adjusted efficiency ratio:

Non-interest expense (GAAP) $ 4,009 $ 3,548 $ 3,770 $ 3,729 $ 4,161 $ 3,872 $ 3,779 $ 3,671 $ 15,056 $ 15,483

Legal reserve activity, including insurance recoveries 37 (40) (265) (45) - - - - (313) -

Cybersecurity Incident expenses, net of insurance (6) (6) (11) (4) (16) (22) - - (27) (38)

Walmart launch and related integration expenses - - - - (48) (84) (54) (25) - (211)

U.K. PPI Reserve - - - - - (72) - - - (72)

Restructuring charges - - - - - - (27) - - (27)

Adjusted non-interest expense (non-GAAP) $ 4,040 $ 3,502 $ 3,494 $ 3,680 $ 4,097 $ 3,694 $ 3,698 $ 3,646 $ 14,716 $ 15,135

Total net revenue (GAAP) $ 7,337 $ 7,381 $ 6,556 $ 7,249 $ 7,427 $ 6,959 $ 7,124 $ 7,083 $ 28,523 $ 28,593

U.K. PPI Reserve - (36) - - - 140 - - (36) 140

Restructuring charges - - - - - - 1 - - 1

Adjusted net revenue (non-GAAP) $ 7,337 $ 7,345 $ 6,556 $ 7,249 $ 7,427 $ 7,099 $ 7,125 $ 7,083 $ 28,487 $ 28,734

Adjusted efficiency ratio 55.06 % 47.68 % 53.29 % 50.77 % 55.16 % 52.04 % 51.90 % 51.48 % 51.66 % 52.67 %

2020 2019 Year Ended December 31,

(Dollars in millions, except per share data and as noted) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2020 2019

Adjusted operating efficiency ratio:

Operating expense (GAAP) $ 3,446 $ 3,265 $ 3,497 $ 3,238 $ 3,451 $ 3,371 $ 3,233 $ 3,154 $ 13,446 $ 13,209

Legal reserve activity, including insurance recoveries 37 (40) (265) (45) - - - - (313) -

Cybersecurity Incident expenses, net of insurance (6) (6) (11) (4) (16) (22) - - (27) (38)

Walmart launch and related integration expenses - - - - (48) (84) (54) (25) - (211)

U.K. PPI Reserve - - - - - (72) - - - (72)

Restructuring charges - - - - - - (27) - - (27)

Adjusted operating expense (non-GAAP) $ 3,477 $ 3,219 $ 3,221 $ 3,189 $ 3,387 $ 3,193 $ 3,152 $ 3,129 $ 13,106 $ 12,861

Adjusted net revenue (non-GAAP) $ 7,337 $ 7,345 $ 6,556 $ 7,249 $ 7,427 $ 7,099 $ 7,125 $ 7,083 $ 28,487 $ 28,734

Adjusted operating efficiency ratio 47.39 % 43.83 % 49.13 % 43.99 % 45.60 % 44.98 % 44.24 % 44.18 % 46.01 % 44.76 %

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of TCE, tangible assets and metricscomputed using these amounts, which include tangible book value per commonshare, return on average tangible assets, return on averageTCE and TCE ratio. We consider these metrics to be key financial performancemeasures that management uses in assessing capital adequacy and the level ofreturns generated. While our non-GAAP measures are widelyused by investors, analysts and bank regulatory agencies to assess the capitalposition of financial services companies, they may not be comparable tosimilarly-titled measures reported by other companies. The followingtables present reconciliations of these non-GAAP measures to the applicableamounts measured in accordance with GAAP.

2020 2020 2020 2020 2019

(Dollars in millions) Q4 Q3 Q2 Q1 Q4

Tangible Common Equity (Period-End)

Stockholders' equity $ 60,204 $ 58,424 $ 56,045 $ 56,830 $ 58,011

Goodwill and intangible assets^(10) (14,809) (14,825) (14,869) (14,888) (14,932)

Noncumulative perpetual preferred stock (4,847) (5,330) (5,209) (5,209) (4,853)

Tangible common equity $ 40,548 $ 38,269 $ 35,967 $ 36,733 $ 38,226

Tangible Common Equity (Average)

Stockholders' equity $ 59,389 $ 57,223 $ 57,623 $ 58,568 $ 58,148

Goodwill and intangible assets^(10) (14,824) (14,867) (14,880) (14,930) (14,967)

Noncumulative perpetual preferred stock (5,168) (5,228) (5,209) (5,382) (5,506)

Tangible common equity $ 39,397 $ 37,128 $ 37,534 $ 38,256 $ 37,675

Tangible Assets (Period-End)

Total assets $ 421,602 $ 421,883 $ 421,296 $ 396,878 $ 390,365

Goodwill and intangible assets^(10) (14,809) (14,825) (14,869) (14,888) (14,932)

Tangible assets $ 406,793 $ 407,058 $ 406,427 $ 381,990 $ 375,433

Tangible Assets (Average)

Total assets $ 420,011 $ 422,854 $ 411,075 $ 390,380 $ 383,162

Goodwill and intangible assets^(10) (14,824) (14,867) (14,880) (14,930) (14,967)

Tangible assets $ 405,187 $ 407,987 $ 396,195 $ 375,450 $ 368,195

__________

^(1) Regulatory capital metrics and capital ratios as of December 31,2020 are preliminary and therefore subject to change.

^(2) In the first quarter of 2020, we elected to exclude from ourregulatory capital ratios certain components of AOCI as permitted under theTailoring Rules. As such, we revised our presentation herein to only include those components of AOCI that impact our regulatory capital ratios.

^(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 1leverage ratio represents total average assets adjusted for amounts that arededucted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measurecalculated based on Tier 1 capital divided by adjusted average assets.

^(5) Common equity Tier 1 capital ratio is a regulatory capital measurecalculated based on common equity Tier 1 capital divided by risk-weightedassets.

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

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

^(8) TCE ratio is a non-GAAP measure calculated based on TCE divided bytangible assets.

^(9) Dividends and undistributed earnings allocated to participatingsecurities 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.

^(10) Includes impact of related deferred taxes.

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SOURCE Capital One Financial Corporation