PR Newswire | Oct 22, 2020 04:06PM EDT

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10/22 15:05 CDT

Capital One Reports Third Quarter 2020 Net Income of $2.4 billion, or $5.06 per shareExcluding adjusting items, Third Quarter 2020 Net Income of $5.05 per share(1) MCLEAN, Va., Oct. 22, 2020

MCLEAN, Va., Oct. 22, 2020 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2020 of $2.4 billion, or $5.06 per diluted common share, compared with a net loss of $918 million, or $2.21 per diluted common share in the second quarter of 2020, and with net income of $1.3 billion, or $2.69 per diluted common share in the third quarter of 2019. Excluding adjusting items, net income for the third quarter of 2020 was $5.05 per diluted common share(1).

"Capital One posted strong third quarter results. We are leaning in to resilience and we continue to be well served by the choices we made before the pandemic," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "Our investments to transform our technology are powering our response to the downturn, and positioning us for the acceleration of digital change driven by the pandemic."

Adjusting items in the third 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):

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

U.K. Payment Protection Insurance customer refund reserve release ("U.K. PPI $36 $ 0.08 Reserve")

Legal reserve builds (40) (0.06)

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



The quarter included the following notable items:



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

Equity investment gain $470 $ 0.79

Allowance release associated with partnership loans moving to held-for-sale 327 0.54

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

Third Quarter 2020 Income Statement Summary:

* Total net revenue increased 13 percent to $7.4 billion. * Total non-interest expense decreased 6 percent to $3.5 billion: * 4 percent increase in marketing. * 7 percent decrease in operating expenses.

* Pre-provision earnings increased 38 percent to $3.8 billion(2). * Provision for credit losses decreased 92 percent to $331 million: * Net charge-offs of $1.1 billion. * $742 million reserve release.

* Net interest margin of 5.68 percent, decreased 10 basis points. * Efficiency ratio of 48.07 percent. * Efficiency ratio excluding adjusting items of 47.68 percent(1).

* Operating efficiency ratio of 44.24 percent. * Operating efficiency ratio excluding adjusting items of 43.83 percent(1).

Third Quarter 2020 Balance Sheet Summary:

* Common equity Tier 1 capital ratio under Basel III Standardized Approach of 13.0 percent at September 30, 2020. * Period-end loans held for investment in the quarter decreased $3.3 billion, or 1 percent, to $248.2 billion. * Credit Card period-end loans decreased $3.7 billion, or 3 percent, to $103.6 billion. * Domestic Card period-end loans decreased $3.8 billion, or 4 percent, to $95.5 billion.

* Consumer Banking period-end loans increased $2.0 billion, or 3 percent, to $68.7 billion. * Auto period-end loans increased $2.1 billion, or 3 percent, to $65.4 billion.

* Commercial Banking period-end loans decreased $1.6 billion, or 2 percent, to $75.9 billion.

* Average loans held for investment in the quarter decreased $3.8 billion, or 2 percent, to $249.5 billion. * Credit Card average loans decreased $3.4 billion, or 3 percent, to $105.4 billion. * Domestic Card average loans decreased $3.7 billion, or 4 percent, to $97.3 billion.

* Consumer Banking average loans increased $3.0 billion, or 5 percent, to $67.8 billion. * Auto average loans increased $2.7 billion, or 4 percent, to $64.5 billion.

* Commercial Banking average loans decreased $3.4 billion, or 4 percent, to $76.3 billion.

* Period-end total deposits increased $1.5 billion, or less than 1 percent, to $305.7 billion, while average deposits increased $17.2 billion, or 6 percent, to $305.5 billion. * Interest-bearing deposits rate paid decreased 25 basis points to 0.69 percent.

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 October 22, 2020 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 November 5, 2020 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 $305.7 billion in deposits and $421.9 billion in total assets as of September 30, 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)

Third 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 ^(1)on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended September 30, 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 in assessing our ^(2)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 Q3 vs. Nine Months Ended September 30,

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

Income Statement

Net interest income $5,555 $5,460 $6,025 $6,066 $5,737 2 %(3) %$17,040 $17,274 (1) %

Non-interest income 1,826 1,096 1,224 1,361 1,222 67 49 4,146 3,892 7

Total net revenue^(1) 7,381 6,556 7,249 7,427 6,959 13 6 21,186 21,166 -

Provision for credit losses 331 4,246 5,423 1,818 1,383 (92) (76) 10,000 4,418 126

Non-interest expense:

Marketing 283 273 491 710 501 4 (44) 1,047 1,564 (33)

Operating expense 3,265 3,497 3,238 3,451 3,371 (7) (3) 10,000 9,758 2

Total non-interest expense 3,548 3,770 3,729 4,161 3,872 (6) (8) 11,047 11,322 (2)

Income (loss) from continuing operations before income taxes 3,502 (1,460) (1,903) 1,448 1,704 ** 106 139 5,426 (97)

Income tax provision (benefit) 1,096 (543) (563) 270 375 ** 192 (10) 1,071 **

Income (loss) from continuing operations, net of tax 2,406 (917) (1,340) 1,178 1,329 ** 81 149 4,355 (97)

Income (loss) from discontinued operations, net of tax - (1) - (2) 4 ** ** (1) 15 **

Net income (loss) 2,406 (918) (1,340) 1,176 1,333 ** 80 148 4,370 (97)

Dividends and undistributed earnings allocated to participating securities^(2)(20) (1) (3) (7) (10) ** 100 (5) (34) (85)

Preferred stock dividends (67) (90) (55) (97) (53) (26) 26 (212) (185) 15

Issuance cost for redeemed preferred stock^(3) - - (22) (31) - - - (22) - **

Net income (loss) available to common stockholders $2,319 $(1,009)$(1,420)$1,041 $1,270 ** 83 $(91) $4,151 **

Common Share Statistics

Basic earnings per common share:^(2)

Net income (loss) from continuing operations $5.07 $(2.21) $(3.10) $2.26 $2.70 ** 88 %$(0.20) $8.80 **

Income from discontinued operations - - - - 0.01 - ** - 0.03 **

Net income (loss) per basic common share $5.07 $(2.21) $(3.10) $2.26 $2.71 ** 87 $(0.20) $8.83 **

Diluted earnings per common share:^(2)

Net income (loss) from continuing operations $5.06 $(2.21) $(3.10) $2.25 $2.68 ** 89 $(0.20) $8.76 **

Income from discontinued operations - - - - 0.01 - ** - 0.03 **

Net income (loss) per diluted common share $5.06 $(2.21) $(3.10) $2.25 $2.69 ** 88 $(0.20) $8.79 **

Weighted-average common shares outstanding (in millions):

Basic 457.8 456.7 457.6 460.9 469.5 - (2) 457.4 469.9 (3) %

Diluted 458.5 456.7 457.6 463.4 471.8 - (3) 457.4 472.1 (3)

Common shares outstanding (period-end, in millions) 457.4 456.3 455.3 456.6 465.7 - (2) 457.4 465.7 (2)

Dividends declared and paid per common share $0.10 $0.40 $0.40 $0.40 $0.40 (75)%(75) $0.90 $1.20 (25)

Tangible book value per common share (period-end)^(4) 83.67 78.82 80.68 83.72 80.46 6 4 83.67 80.46 4



2020 Q3 vs. Nine Months Ended September 30,

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

Balance Sheet (Period-End)

Loans held for investment $248,223$251,512$262,990$265,809$249,355(1) %- $248,223$249,355-

Interest-earning assets 390,040 389,829 364,472 355,202 344,643 - 13 %390,040 344,643 13 %

Total assets 421,883 421,296 396,878 390,365 378,810 - 11 421,883 378,810 11

Interest-bearing deposits 276,092 275,183 245,142 239,209 234,084 - 18 276,092 234,084 18

Total deposits 305,725 304,238 269,689 262,697 257,148 - 19 305,725 257,148 19

Borrowings 42,795 44,900 55,681 55,697 50,149 (5) (15) 42,795 50,149 (15)

Common equity 53,093 50,835 51,620 53,157 52,412 4 1 53,093 52,412 1

Total stockholders' equity 58,424 56,045 56,830 58,011 58,235 4 - 58,424 58,235 -

Balance Sheet (Average Balances)

Loans held for investment $249,511$253,358$262,889$258,870$246,147(2) %1 %$255,232$243,6025 %

Interest-earning assets 391,451 378,145 355,347 349,150 340,949 4 15 375,041 338,936 11

Total assets 422,854 411,075 390,380 383,162 374,905 3 13 408,233 372,148 10

Interest-bearing deposits 276,339 261,256 241,115 236,250 232,063 6 19 259,631 230,045 13

Total deposits 305,516 288,344 264,653 260,040 255,082 6 20 286,242 253,389 13

Borrowings 44,161 49,827 51,795 51,442 49,413 (11) (11) 48,577 50,804 (4)

Common equity 51,995 52,413 53,186 52,641 52,566 (1) (1) 52,529 50,393 4

Total stockholders' equity 57,223 57,623 58,568 58,148 57,245 (1) - 57,802 54,861 5



CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics-Consolidated



2020 Q3 vs. Nine Months Ended September 30,

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

Performance Metrics

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

Non-interest income growth (period over period) 67 (10) (10) 11 (11) %** ** 7 (3) **

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

Total net revenue margin^(5) 7.54 6.93 8.16 8.51 8.16 61 bps(62) bps7.53 8.33 (80) bps

Net interest margin^(6) 5.68 5.78 6.78 6.95 6.73 (10) (105) 6.06 6.80 (74)

Return on average assets 2.28 (0.89) (1.37) 1.23 1.42 317 86 0.05 1.56 (151)

Return on average tangible assets^(7) 2.36 (0.93) (1.43) 1.28 1.48 329 88 0.05 1.63 (158)

Return on average common equity^(8) 17.84 (7.69) (10.68) 7.93 9.63 ** 8 % (0.23) 10.94 **

Return on average tangible common equity^(9) 24.98 (10.74) (14.85) 11.07 13.45 ** 12 (0.32) 15.54 **

Non-interest expense as a percentage of average loans held for5.69 5.95 5.67 6.43 6.29 (26) (60) bps5.77 6.20 (43) investment

Efficiency ratio^(10) 48.07 57.50 51.44 56.03 55.64 (9) % (8) % 52.14 53.49 (135)

Operating efficiency ratio^(11) 44.24 53.34 44.67 46.47 48.44 (9) (4) 47.20 46.10 110

Effective income tax rate for continuing operations 31.3 37.2 29.6 18.6 22.0 (6) 9 (7.2) 19.7 (27) %

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

Credit Quality Metrics

Allowance for credit losses $16,129 $16,832 $14,073 $7,208 $7,037 (4) % 129 % $16,129 $7,037 129 %

Allowance coverage ratio 6.50 %6.69 %5.35 %2.71 %2.82 %(19)bps368 bps6.50 %2.82 %368 bps

Net charge-offs $1,073 $1,505 $1,791 $1,683 $1,462 (29)% (27) % $4,369 $4,569 (4) %

Net charge-off rate^(12) 1.72 %2.38 %2.72 %2.60 %2.38 %(66)bps(66) bps2.28 %2.50 %(22) bps

30+ day performing delinquency rate^(13) 1.97 2.09 2.95 3.51 3.28 (12) (131) 1.97 3.28 (131)

30+ day delinquency rate^(13) 2.22 2.30 3.16 3.74 3.51 (8) (129) 2.22 3.51 (129)

Capital Ratios^(14)

Common equity Tier 1 capital 13.0 %12.4 %12.0 %12.2 %12.5 %60 bps50 bps13.0 %12.5 %50 bps

Tier 1 capital 14.8 14.2 13.7 13.7 14.4 60 40 14.8 14.4 40

Total capital 17.3 16.7 16.1 16.1 16.8 60 50 17.3 16.8 50

Tier 1 leverage 10.6 10.3 11.0 11.7 11.9 30 (130) 10.6 11.9 (130)

Tangible common equity ("TCE")^(15) 9.4 8.8 9.6 10.2 10.3 60 (90) 9.4 10.3 (90)



CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income



2020 Q3 vs. Nine Months Ended September 30,

2020 2020 2020 2019 2019 2020 2019 2020 vs.

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

Interest income:

Loans, including loans held for sale $5,758$5,820 $6,542 $6,682$6,429(1) %(10)%$ 18,120$ 19,180(6) %

Investment securities 443 482 530 544 583 (8) (24) 1,455 1,867 (22)

Other 14 16 37 44 63 (13) (78) 67 196 (66)

Total interest income 6,215 6,318 7,109 7,270 7,075 (2) (12) 19,642 21,243 (8)

Interest expense:

Deposits 476 611 731 832 901 (22) (47) 1,818 2,588 (30)

Securitized debt obligations 43 56 99 118 123 (23) (65) 198 405 (51)

Senior and subordinated notes 132 180 239 236 299 (27) (56) 551 923 (40)

Other borrowings 9 11 15 18 15 (18) (40) 35 53 (34)

Total interest expense 660 858 1,084 1,204 1,338 (23) (51) 2,602 3,969 (34)

Net interest income 5,555 5,460 6,025 6,066 5,737 2 (3) 17,040 17,274 (1)

Provision for credit losses 331 4,246 5,423 1,818 1,383 (92) (76) 10,000 4,418 126

Net interest income after provision for credit losses 5,224 1,214 602 4,248 4,354 ** 20 7,040 12,856 (45)

Non-interest income:

Interchange fees, net 775 672 752 811 790 15 (2) 2,199 2,368 (7)

Service charges and other customer-related fees 320 258 327 342 283 24 13 905 988 (8)

Net securities gains (losses) 25 - - (18) 5 ** ** 25 44 (43)

Other 706 166 145 226 144 ** ** 1,017 492 107

Total non-interest income 1,826 1,096 1,224 1,361 1,222 67 49 4,146 3,892 7

Non-interest expense:

Salaries and associate benefits 1,719 1,704 1,627 1,652 1,605 1 7 5,050 4,736 7

Occupancy and equipment 506 523 517 565 519 (3) (3) 1,546 1,533 1

Marketing 283 273 491 710 501 4 (44) 1,047 1,564 (33)

Professional services 327 304 287 318 314 8 4 918 919 -

Communications and data processing 310 308 302 346 312 1 (1) 920 944 (3)

Amortization of intangibles 14 16 22 28 25 (13) (44) 52 84 (38)

Other^(16) 389 642 483 542 596 (39) (35) 1,514 1,542 (2)

Total non-interest expense 3,548 3,770 3,729 4,161 3,872 (6) (8) 11,047 11,322 (2)

Income (loss) from continuing operations before income taxes 3,502 (1,460) (1,903) 1,448 1,704 ** 106 139 5,426 (97)

Income tax provision (benefit) 1,096 (543) (563) 270 375 ** 192 (10) 1,071 **

Income (loss) from continuing operations, net of tax 2,406 (917) (1,340) 1,178 1,329 ** 81 149 4,355 (97)

Income (loss) from discontinued operations, net of tax - (1) - (2) 4 ** ** (1) 15 **

Net income (loss) 2,406 (918) (1,340) 1,176 1,333 ** 80 148 4,370 (97)

Dividends and undistributed earnings allocated to participating securities^(2)(20) (1) (3) (7) (10) ** 100 (5) (34) (85)

Preferred stock dividends (67) (90) (55) (97) (53) (26) 26 (212) (185) 15

Issuance cost for redeemed preferred stock^(3) - - (22) (31) - - - (22) - **

Net income (loss) available to common stockholders $2,319$(1,009)$(1,420)$1,041$1,270** 83 $ (91) $ 4,151 **





2020 Q3 vs. Nine Months Ended September 30,

2020 2020 2020 2019 2019 2020 2019 2020 vs.

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

Basic earnings per common share:^(2)

Net income (loss) from continuing operations $5.07 $(2.21) $(3.10) $2.26 $2.70 ** 88 %$ (0.20)$ 8.80 **

Income from discontinued operations - - - - 0.01 - ** - 0.03 **

Net income (loss) per basic common share $5.07 $(2.21) $(3.10) $2.26 $2.71 ** 87 $ (0.20)$ 8.83 **

Diluted earnings per common share:^(2)

Net income (loss) from continuing operations $5.06 $(2.21) $(3.10) $2.25 $2.68 ** 89 $ (0.20)$ 8.76 **

Income from discontinued operations - - - - 0.01 - ** - 0.03 **

Net income (loss) per diluted common share $5.06 $(2.21) $(3.10) $2.25 $2.69 ** 88 $ (0.20)$ 8.79 **

Weighted-average common shares outstanding (in millions):

Basic common shares 457.8 456.7 457.6 460.9 469.5 - (2) 457.4 469.9 (3) %

Diluted common shares 458.5 456.7 457.6 463.4 471.8 - (3) 457.4 472.1 (3)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets

2020 Q3 vs.

2020 2020 2020 2019 2019 2020 2019

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

Assets:

Cash and cash equivalents:

Cash and due from banks $ 4,267 $ 4,583 $ 4,545 $ 4,129 $ 4,452 (7) % (4) %

Interest-bearing deposits and other short-term investments 39,839 51,235 20,391 9,278 12,668 (22) **

Total cash and cash equivalents 44,106 55,818 24,936 13,407 17,120 (21) 158

Restricted cash for securitization investors 895 740 364 342 417 21 115

Investment securities:

Securities available for sale 99,853 87,859 81,423 79,213 46,168 14 116

Securities held to maturity - - - - 33,894 - **

Total investment securities 99,853 87,859 81,423 79,213 80,062 14 25

Loans held for investment:

Unsecuritized loans held for investment 217,878 222,310 231,318 231,992 215,892 (2) 1

Loans held in consolidated trusts 30,345 29,202 31,672 33,817 33,463 4 (9)

Total loans held for investment 248,223 251,512 262,990 265,809 249,355 (1) -

Allowance for credit losses (16,129) (16,832) (14,073) (7,208) (7,037) (4) 129

Net loans held for investment 232,094 234,680 248,917 258,601 242,318 (1) (4)

Loans held for sale 3,433 711 1,056 400 1,245 ** 176

Premises and equipment, net 4,333 4,324 4,336 4,378 4,311 - 1

Interest receivable 1,551 1,574 1,687 1,758 1,627 (1) (5)

Goodwill 14,648 14,645 14,645 14,653 14,624 - -

Other assets 20,970 20,945 19,514 17,613 17,086 - 23

Total assets $ 421,883 $ 421,296 $ 396,878 $ 390,365 $ 378,810 - 11

2020 Q3 vs.

2020 2020 2020 2019 2019 2020 2019

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

Liabilities:

Interest payable $ 332 $ 380 $ 359 $ 439 $ 370 (13) % (10) %

Deposits:

Non-interest-bearing deposits 29,633 29,055 24,547 23,488 23,064 2 28

Interest-bearing deposits 276,092 275,183 245,142 239,209 234,084 - 18

Total deposits 305,725 304,238 269,689 262,697 257,148 - 19

Securitized debt obligations 13,566 15,761 17,141 17,808 18,910 (14) (28)

Other debt:

Federal funds purchased and securities loaned or sold under agreements to 702 573 399 314 464 23 51repurchase

Senior and subordinated notes 28,448 28,481 32,049 30,472 30,682 - (7)

Other borrowings 79 85 6,092 7,103 93 (7) (15)

Total other debt 29,229 29,139 38,540 37,889 31,239 - (6)

Other liabilities 14,607 15,733 14,319 13,521 12,908 (7) 13

Total liabilities 363,459 365,251 340,048 332,354 320,575 - 13

Stockholders' equity:

Preferred stock 0 0 0 0 0 - -

Common stock 7 7 7 7 7 - -

Additional paid-in capital, net 33,793 33,556 33,450 32,980 33,826 1 -

Retained earnings 37,653 35,361 36,552 40,340 39,476 6 (5)

Accumulated other comprehensive income 3,833 3,981 3,679 1,156 453 (4) **

Treasury stock, at cost (16,862) (16,860) (16,858) (16,472) (15,527) - 9

Total stockholders' equity 58,424 56,045 56,830 58,011 58,235 4 -

Total liabilities and stockholders' equity $ 421,883 $ 421,296 $ 396,878 $ 390,365 $ 378,810 - 11

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



Total net revenue was reduced by $235 million in Q3 2020, $318 million in Q2 2020 and $389 million in Q1 2020 for credit card finance charges and fees ^(1)charged-off as uncollectible, and by $365 million in Q4 2019 and $330 million in Q3 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 ^(2)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.

On March 2, 2020, we redeemed all outstanding shares of our fixed rate 6.00% non-cumulative perpetual preferred stock Series B. The redemption increased our net loss available to common shareholders by $22 million in Q1 2020. On ^(3)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. The redemption 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 ^(4)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.

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 ^(7)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.

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 ^(9)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.

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 (11)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.

^ Net charge-off rate is calculated based on annualized net charge-offs for the (12)period divided by average loans held for investment for the period.

^ Metrics for Q3 2020, Q2 2020 and Q1 2020 include the impact of COVID-19 (13)customer assistance programs where applicable.

Capital ratios as of the end of Q3 2020 are preliminary and therefore subject ^ to change. See "Table 15: Calculation of Regulatory Capital Measures and (14)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 ^ assets. See "Table 15: Calculation of Regulatory Capital Measures and (15)Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.

^ Includes net Cybersecurity Incident expenses of $6 million in Q3 2020, $11 (16)million in Q2 2020, $4 million in Q1 2020, $16 million in Q4 2019 and $22 million in Q3 2019, respectively.

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



2019 Q3 2020 Q3 2020 Q2

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

Interest-earning assets:

10.39Loans, including loans held for sale $250,525$5,7589.19 % $254,402 $5,820 9.15 % $ 247,419 $ 6,429 %

Investment securities 91,777 443 1.93 81,095 482 2.38 80,762 583 2.88

Cash equivalents and other 49,149 14 0.11 42,648 16 0.15 12,768 63 2.00

Total interest-earning assets $391,451$6,2156.35 $378,145 $6,318 6.68 $ 340,949 $ 7,0758.30

Interest-bearing liabilities:

Interest-bearing deposits $276,339$476 0.69 $261,256 $611 0.94 $ 232,063 $ 901 1.55

Securitized debt obligations 15,032 43 1.14 16,432 56 1.37 16,750 123 2.94

Senior and subordinated notes 28,497 132 1.86 31,294 180 2.30 31,220 299 3.84

Other borrowings and liabilities 2,119 9 1.77 3,554 11 1.21 2,698 15 2.14

Total interest-bearing liabilities $321,987$660 0.82 $312,536 $858 1.10 $ 282,731 $ 1,3381.89

Net interest income/spread $5,5555.53 $5,460 5.58 $ 5,7376.41

Impact of non-interest-bearing funding 0.15 0.20 0.32

6.73 Net interest margin 5.68 % 5.78 % %



Nine Months Ended September 30,

2020 2019

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

Interest-earning assets:

Loans, including loans held for sale $256,165 $18,120 9.43 % $ 244,743 $ 19,18010.45 %

Investment securities 83,724 1,455 2.32 82,264 1,867 3.03

Cash equivalents and other 35,152 67 0.25 11,929 196 2.19

Total interest-earning assets $375,041 $19,642 6.98 $ 338,936 $ 21,2438.36

Interest-bearing liabilities:

Interest-bearing deposits $259,631 $1,818 0.93 $ 230,045 $ 2,5881.50

Securitized debt obligations 16,500 198 1.60 17,912 405 3.02

Senior and subordinated notes 30,371 551 2.42 30,897 923 3.98

Other borrowings and liabilities 3,147 35 1.50 3,228 53 2.19

Total interest-bearing liabilities $309,649 $2,602 1.12 $ 282,082 $ 3,9691.88

Net interest income/spread $17,040 5.86 $ 17,2746.48

Impact of non-interest-bearing funding 0.20 0.32

Net interest margin 6.06 % 6.80 %

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics

2020 Q3 vs. Nine Months Ended September 30,

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

Loans Held for Investment (Period-End)

Credit card:

Domestic credit card^(7) $ 95,541 $ 99,390 $ 109,549 $ 118,606 $ 104,664 (4) % (9) % $ 95,541 $ 104,664 (9) %

International card businesses 8,100 7,920 8,248 9,630 9,017 2 (10) 8,100 9,017 (10)

Total credit card^(1) 103,641 107,310 117,797 128,236 113,681 (3) (9) 103,641 113,681 (9)

Consumer banking:

Auto 65,394 63,319 61,364 60,362 59,278 3 10 65,394 59,278 10

Retail banking 3,294 3,393 2,669 2,703 2,737 (3) 20 3,294 2,737 20

Total consumer banking 68,688 66,712 64,033 63,065 62,015 3 11 68,688 62,015 11

Commercial banking:

Commercial and multifamily real estate 31,197 30,953 32,373 30,245 30,009 1 4 31,197 30,009 4

Commercial and industrial 44,697 46,537 48,787 44,263 43,650 (4) 2 44,697 43,650 2

Total commercial banking 75,894 77,490 81,160 74,508 73,659 (2) 3 75,894 73,659 3

Total loans held for investment $ 248,223 $ 251,512 $ 262,990 $ 265,809 $ 249,355 (1) - $ 248,223 $ 249,355 -

Loans Held for Investment (Average)

Credit card:

Domestic credit card $ 97,306 $ 100,996 $ 113,711 $ 112,965 $ 103,426 (4) % (6) % $ 103,980 $ 102,677 1 %

International card businesses 8,061 7,752 9,065 9,120 8,945 4 (10) 8,292 8,868 (6)

Total credit card^(1) 105,367 108,748 122,776 122,085 112,371 (3) (6) 112,272 111,545 1

Consumer banking:

Auto 64,476 61,798 61,005 59,884 58,517 4 10 62,434 57,282 9

Retail banking 3,346 3,053 2,666 2,712 2,752 10 22 3,023 2,790 8

Total consumer banking 67,822 64,851 63,671 62,596 61,269 5 11 65,457 60,072 9

Commercial banking:

Commercial and multifamily real estate 30,918 31,723 31,081 30,173 29,698 (3) 4 31,239 29,418 6

Commercial and industrial 45,404 48,036 45,361 44,016 42,807 (5) 6 46,264 42,474 9

Total commercial lending 76,322 79,759 76,442 74,189 72,505 (4) 5 77,503 71,892 8

Small-ticket commercial real estate - - - - 2 ** ** - 93 **

Total commercial banking 76,322 79,759 76,442 74,189 72,507 (4) 5 77,503 71,985 8

Total average loans held for investment $ 249,511 $ 253,358 $ 262,889 $ 258,870 $ 246,147 (2) 1 $ 255,232 $ 243,602 5

2020 Q3 vs. Nine Months Ended September 30,

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

Net Charge-Off Rates

Credit card:

Domestic credit card 3.64 % 4.53 % 4.68 % 4.32 % 4.12 % (89) bps (48) bps 4.31 % 4.67 % (36) bps

International card businesses 2.89 3.47 4.65 4.22 3.78 (58) (89) 3.71 3.54 17

Total credit card 3.58 4.46 4.68 4.31 4.09 (88) (51) 4.26 4.58 (32)

Consumer banking:

Auto 0.23 1.16 1.51 1.90 1.60 (93) (137) 0.95 1.38 (43)

Retail banking 1.38 1.78 2.37 2.77 2.55 (40) (117) 1.80 2.51 (71)

Total consumer banking 0.28 1.19 1.54 1.93 1.64 (91) (136) 0.99 1.43 (44)

Commercial banking:

Commercial and multifamily real estate 0.41 0.09 - - 0.02 32 39 0.17 0.01 16

Commercial and industrial 0.45 0.78 0.96 0.60 0.55 (33) (10) 0.73 0.28 45

Total commercial banking 0.43 0.51 0.57 0.35 0.33 (8) 10 0.50 0.17 33

Total net charge-offs 1.72 2.38 2.72 2.60 2.38 (66) (66) 2.28 2.50 (22)

30+ Day Performing Delinquency Rates^(2)

Credit card:

Domestic credit card 2.21 % 2.74 % 3.69 % 3.93 % 3.71 % (53) bps (150) bps 2.21 % 3.71 % (150) bps

International card businesses 2.15 2.71 3.66 3.47 3.52 (56) (137) 2.15 3.52 (137)

Total credit card 2.20 2.74 3.69 3.89 3.69 (54) (149) 2.20 3.69 (149)

Consumer banking:

Auto 3.76 3.28 5.29 6.88 6.47 48 (271) 3.76 6.47 (271)

Retail banking 0.83 0.89 1.27 1.02 1.01 (6) (18) 0.83 1.01 (18)

Total consumer banking 3.62 3.16 5.12 6.63 6.23 46 (261) 3.62 6.23 (261)

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

Credit card:

International card businesses 0.25 % 0.29 % 0.29 % 0.26 % 0.25 % (4) bps - 0.25 % 0.25 % -

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

Consumer banking:

Auto 0.36 0.41 0.62 0.81 0.73 (5) (37) bps 0.36 0.73 (37) bps

Retail banking 0.77 0.70 0.88 0.87 0.91 7 (14) 0.77 0.91 (14)

Total consumer banking 0.38 0.43 0.63 0.81 0.74 (5) (36) 0.38 0.74 (36)

Commercial banking:

Commercial and multifamily real estate 0.58 0.54 0.22 0.12 0.12 4 46 0.58 0.12 46

Commercial and industrial 1.31 1.06 0.87 0.93 0.95 25 36 1.31 0.95 36

Total commercial banking 1.01 0.85 0.61 0.60 0.61 16 40 1.01 0.61 40

Total nonperforming loans 0.42 0.38 0.35 0.37 0.37 4 5 0.42 0.37 5

Total nonperforming assets 0.44 0.39 0.37 0.39 0.40 5 4 0.44 0.40 4

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

Three Months Ended September 30, 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 June 30, 2020 $ 11,569 $ 522 $ 12,091 $ 2,726 $ 112 $ 2,838 $ 1,903 $ 16,832

Charge-offs (1,198) (98) (1,296) (280) (15) (295) (88) (1,679)

Recoveries 313 40 353 244 3 247 6 606

Net charge-offs (885) (58) (943) (36) (12) (48) (82) (1,073)

Provision (benefit) for credit losses 378 72 450 (43) - (43) (51) 356

Allowance build (release) for credit losses (507) 14 (493) (79) (12) (91) (133) (717)

Other changes^(5) - 14 14 - - - - 14

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

Reserve for unfunded lending commitments:

Balance as of June 30, 2020 - - - - - - 218 218

Benefit for losses on unfunded lending commitments - - - - - - (23) (23)

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

Combined allowance and reserve as of September 30, 2020 $ 11,062 $ 550 $ 11,612 $ 2,647 $ 100 $ 2,747 $ 1,965 $ 16,324

Nine Months Ended September 30, 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 (4,406) (351) (4,757) (1,155) (52) (1,207) (303) (6,267)

Recoveries 1,047 120 1,167 710 11 721 10 1,898

Net charge-offs (3,359) (231) (3,590) (445) (41) (486) (293) (4,369)

Provision for credit losses 6,748 348 7,096 1,631 62 1,693 1,186 9,975

Allowance build for credit losses 3,389 117 3,506 1,186 21 1,207 893 5,606

Other changes^(5) - 8 8 - - - - 8

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

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 September 30, 2020 - - - - - - 195 195

Combined allowance and reserve as of September 30, 2020 $ 11,062 $ 550 $ 11,612 $ 2,647 $ 100 $ 2,747 $ 1,965 $ 16,324

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary-Business Segment Results

Three Months Ended September 30, 2020 Nine Months Ended September 30, 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) $ 3,292 $ 1,904 $ 517 $ (158) $ 5,555 $ 10,363 $ 5,226 $ 1,526 $ (75) $ 17,040

Non-interest income 1,013 107 237 469 1,826 2,769 330 655 392 4,146

Total net revenue 4,305 2,011 754 311 7,381 13,132 5,556 2,181 317 21,186

Provision (benefit) for credit losses 450 (43) (74) (2) 331 7,096 1,693 1,209 2 10,000

Non-interest expense 2,003 1,011 424 110 3,548 6,180 3,038 1,261 568 11,047

Income (loss) from continuing operations before income taxes 1,852 1,043 404 203 3,502 (144) 825 (289) (253) 139

Income tax provision (benefit) 438 247 95 316 1,096 (34) 195 (69) (102) (10)

Income (loss) from continuing operations, net of tax $ 1,414 $ 796 $ 309 $ (113) $ 2,406 $ (110) $ 630 $ (220) $ (151) $ 149

Three Months Ended June 30, 2020

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

Net interest income (loss) $ 3,369 $ 1,665 $ 518 $ (92) $ 5,460

Non-interest income (loss) 845 97 180 (26) 1,096

Total net revenue (loss) 4,214 1,762 698 (118) 6,556

Provision (benefit) for credit losses 2,944 876 427 (1) 4,246

Non-interest expense 1,969 1,036 425 340 3,770

Loss from continuing operations before income taxes (699) (150) (154) (457) (1,460)

Income tax benefit (166) (36) (36) (305) (543)

Loss from continuing operations, net of tax $ (533) $ (114) $ (118) $ (152) $ (917)

Three Months Ended September 30, 2019 Nine Months Ended September 30, 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 $ 3,546 $ 1,682 $ 486 $ 23 $ 5,737 $ 10,667 $ 5,070 $ 1,489 $ 48 $ 17,274

Non-interest income (loss) 870 165 221 (34) 1,222 2,858 491 608 (65) 3,892

Total net revenue (loss) 4,416 1,847 707 (11) 6,959 13,525 5,561 2,097 (17) 21,166

Provision for credit losses 1,087 203 93 - 1,383 3,571 603 244 - 4,418

Non-interest expense 2,360 985 414 113 3,872 6,784 2,981 1,258 299 11,322

Income (loss) from continuing operations before income taxes 969 659 200 (124) 1,704 3,170 1,977 595 (316) 5,426

Income tax provision (benefit) 235 154 46 (60) 375 747 461 138 (275) 1,071

Income (loss) from continuing operations, net of tax $ 734 $ 505 $ 154 $ (64) $ 1,329 $ 2,423 $ 1,516 $ 457 $ (41) $ 4,355

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary-Credit Card Business

2020 Q3 vs. Nine Months Ended September 30,

2020 2020 2020 2019 2019 2020 2019 2020 vs.

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

Credit Card

Earnings:

Net interest income $3,292 $3,369 $3,702 $3,794 $3,546 (2) % (7) % $10,363 $10,667 (3) %

Non-interest income 1,013 845 911 1,030 870 20 16 2,769 2,858 (3)

Total net revenue 4,305 4,214 4,613 4,824 4,416 2 (3) 13,132 13,525 (3)

Provision for credit losses 450 2,944 3,702 1,421 1,087 (85) (59) 7,096 3,571 99

Non-interest expense 2,003 1,969 2,208 2,487 2,360 2 (15) 6,180 6,784 (9)

Income (loss) from continuing operations before income taxes1,852 (699) (1,297) 916 969 ** 91 (144) 3,170 **

Income tax provision (benefit) 438 (166) (306) 212 235 ** 86 (34) 747 **

Income (loss) from continuing operations, net of tax $1,414 $(533) $(991) $704 $734 ** 93 $(110) $2,423 **

Selected performance metrics:

Period-end loans held for investment^(1)(7) $103,641 $107,310 $117,797 $128,236 $113,681 (3) (9) $103,641 $113,681 (9)

Average loans held for investment^(1) 105,367 108,748 122,776 122,085 112,371 (3) (6) 112,272 111,545 1

Average yield on loans held for investment^(8) 13.83 %13.72 %14.46 %15.02 %15.55 %11 bps(172)bps14.03 %15.66 %(163)bps

Total net revenue margin^(9) 16.34 15.50 15.03 15.80 15.72 84 62 15.59 16.17 (58)

Net charge-off rate 3.58 4.46 4.68 4.31 4.09 (88) (51) 4.26 4.58 (32)

30+ day performing delinquency rate 2.20 2.74 3.69 3.89 3.69 (54) (149) 2.20 3.69 (149)

30+ day delinquency rate 2.21 2.75 3.70 3.91 3.71 (54) (150) 2.21 3.71 (150)

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

Purchase volume^(10) $107,102 $90,149 $99,920 $116,631 $108,034 19 % (1) % $297,171 $308,134 (4) %



2020 Q3 vs. Nine Months Ended September 30,

2020 2020 2020 2019 2019 2020 2019 2020 vs.

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

Domestic Card

Earnings:

Net interest income $2,995 $3,094 $3,381 $3,473 $3,299 (3) % (9) % $9,470 $9,792 (3) %

Non-interest income 952 795 842 962 878 20 8 2,589 2,722 (5)

Total net revenue 3,947 3,889 4,223 4,435 4,177 1 (6) 12,059 12,514 (4)

Provision for credit losses 378 2,906 3,464 1,346 1,010 (87) (63) 6,748 3,325 103

Non-interest expense 1,802 1,776 1,984 2,249 2,076 1 (13) 5,562 6,059 (8)

Income (loss) from continuing operations before income taxes1,767 (793) (1,225) 840 1,091 ** 62 (251) 3,130 **

Income tax provision (benefit) 419 (188) (290) 196 254 ** 65 (59) 729 **

Income (loss) from continuing operations, net of tax $1,348 $(605) $(935) $644 $837 ** 61 $(192) $2,401 **

Selected performance metrics:

Period-end loans held for investment^(1)(7) $95,541 $99,390 $109,549 $118,606 $104,664 (4) (9) $95,541 $104,664 (9)

Average loans held for investment^(1) 97,306 100,996 113,711 112,965 103,426 (4) (6) 103,980 102,677 1

Average yield on loans held for investment^(8) 13.57 %13.52 %14.30 %14.91 %15.74 %5 bps(217)bps13.82 %15.67 %(185)bps

Total net revenue margin^(9) 16.22 15.40 14.86 15.70 16.15 82 7 15.46 16.25 (79)

Net charge-off rate 3.64 4.53 4.68 4.32 4.12 (89) (48) 4.31 4.67 (36)

30+ day performing delinquency rate 2.21 2.74 3.69 3.93 3.71 (53) (150) 2.21 3.71 (150)

Purchase volume^(10) $98,107 $82,860 $92,248 $107,154 $99,087 18 % (1) % $273,215 $282,878 (3) %

Refreshed FICO scores:^(11)

Greater than 660 69 %67 %65 %67 %68 %2 1 69 %68 %1

660 or below 31 33 35 33 32 (2) (1) 31 32 (1)

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary-Consumer Banking Business

2020 Q3 vs. Nine Months Ended September 30,

2020 2020 2020 2019 2019 2020 2019 2020 vs.

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

Consumer Banking

Earnings:

Net interest income $ 1,904 $ 1,665 $ 1,657 $ 1,662 $ 1,682 14 % 13 % $ 5,226 $ 5,070 3 %

Non-interest income 107 97 126 152 165 10 (35) 330 491 (33)

Total net revenue 2,011 1,762 1,783 1,814 1,847 14 9 5,556 5,561 -

Provision (benefit) for credit losses (43) 876 860 335 203 ** ** 1,693 603 181

Non-interest expense 1,011 1,036 991 1,110 985 (2) 3 3,038 2,981 2

Income (loss) from continuing operations before income taxes 1,043 (150) (68) 369 659 ** 58 825 1,977 (58)

Income tax provision (benefit) 247 (36) (16) 86 154 ** 60 195 461 (58)

Income (loss) from continuing operations, net of tax $ 796 $ (114) $ (52) $ 283 $ 505 ** 58 $ 630 $ 1,516 (58)

Selected performance metrics:

Period-end loans held for investment $ 68,688 $ 66,712 $ 64,033 $ 63,065 $ 62,015 3 11 $ 68,688 $ 62,015 11

Average loans held for investment 67,822 64,851 63,671 62,596 61,269 5 11 65,457 60,072 9

Average yield on loans held for investment^(8) 8.36 % 8.41 % 8.46 % 8.51 % 8.47 % (5) bps (11) bps 8.41 % 8.33 % 8 bps

Auto loan originations $ 8,979 $ 8,292 $ 7,640 $ 7,527 $ 8,175 8 % 10 % $ 24,910 $ 21,723 15 %

Period-end deposits 249,684 246,804 217,607 213,099 206,423 1 21 249,684 206,423 21

Average deposits 248,418 232,293 215,071 209,783 204,933 7 21 231,988 203,404 14

Average deposits interest rate 0.66 % 0.89 % 1.06 % 1.20 % 1.31 % (23) bps (65) bps 0.86 % 1.25 % (39) bps

Net charge-off rate 0.28 1.19 1.54 1.93 1.64 (91) (136) 0.99 1.43 (44)

30+ day performing delinquency rate 3.62 3.16 5.12 6.63 6.23 46 (261) 3.62 6.23 (261)

30+ day delinquency rate 3.90 3.48 5.65 7.34 6.86 42 (296) 3.90 6.86 (296)

Nonperforming loan rate^(3) 0.38 0.43 0.63 0.81 0.74 (5) (36) 0.38 0.74 (36)

Nonperforming asset rate^(4) 0.43 0.46 0.71 0.91 0.83 (3) (40) 0.43 0.83 (40)

Auto-At origination FICO scores:^(12)

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

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

620 or below 34 34 33 32 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 Q3 vs. Nine Months Ended September 30,

2020 2020 2020 2019 2019 2020 2019 2020 vs.

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

Commercial Banking

Earnings:

Net interest income $ 517 $ 518 $ 491 $ 494 $ 486 - 6 % $ 1,526 $ 1,489 2 %

Non-interest income 237 180 238 223 221 32 % 7 655 608 8

Total net revenue^(6) 754 698 729 717 707 8 7 2,181 2,097 4

Provision (benefit) for credit losses (74) 427 856 62 93 ** ** 1,209 244 **

Non-interest expense 424 425 412 441 414 - 2 1,261 1,258 -

Income (loss) from continuing operations before income taxes 404 (154) (539) 214 200 ** 102 (289) 595 **

Income tax provision (benefit) 95 (36) (128) 50 46 ** 107 (69) 138 **

Income (loss) from continuing operations, net of tax $ 309 $ (118) $ (411) $ 164 $ 154 ** 101 $ (220) $ 457 **

Selected performance metrics:

Period-end loans held for investment $ 75,894 $ 77,490 $ 81,160 $ 74,508 $ 73,659 (2) 3 $ 75,894 $ 73,659 3

Average loans held for investment 76,322 79,759 76,442 74,189 72,507 (4) 5 77,503 71,985 8

Average yield on loans held for investment^(6)(8) 2.82 % 3.00 % 3.88 % 4.22 % 4.45 % (18) bps (163) bps 3.23 % 4.61 % (138) bps

Period-end deposits $ 36,783 $ 35,669 $ 32,822 $ 32,134 $ 30,923 3 % 19 % $ 36,783 $ 30,923 19 %

Average deposits 36,278 34,635 32,238 32,034 30,693 5 18 34,391 30,957 11

Average deposits interest rate 0.25 % 0.30 % 0.89 % 1.10 % 1.25 % (5) bps (100) bps 0.47 % 1.21 % (74) bps

Net charge-off rate 0.43 0.51 0.57 0.35 0.33 (8) 10 0.50 0.17 33

Nonperforming loan rate^(3) 1.01 0.85 0.61 0.60 0.61 16 40 1.01 0.61 40

Nonperforming asset rate^(4) 1.01 0.85 0.61 0.60 0.61 16 40 1.01 0.61 40

Risk category:^(13)

Noncriticized $ 68,533 $ 70,881 $ 77,714 $ 71,848 $ 71,144 (3) % (4) % $ 68,533 $ 71,144 (4) %

Criticized performing 6,593 5,949 2,952 2,181 2,035 11 ** 6,593 2,035 **

Criticized nonperforming 768 660 494 448 449 16 71 768 449 71

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

Total commercial banking loans $ 75,894 $ 77,490 $ 81,160 $ 74,508 $ 73,659 (2) 3 $ 75,894 $ 73,659 3

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

Noncriticized 90.3 % 91.4 % 95.8 % 96.5 % 96.6 % (110) bps (630) bps 90.3 % 96.6 % (630) bps

Criticized performing 8.7 7.7 3.6 2.9 2.8 100 590 8.7 2.8 590

Criticized nonperforming 1.0 0.9 0.6 0.6 0.6 10 40 1.0 0.6 40

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 Q3 vs. Nine Months Ended September 30,

2020 2020 2020 2019 2019 2020 2019 2020 vs.

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

Other

Earnings:

Net interest income (loss) $ (158) $ (92) $ 175 $ 116 $ 23 72 % ** $ (75) $ 48 **

Non-interest income (loss) 469 (26) (51) (44) (34) ** ** 392 (65) **

Total net revenue (loss)^(6) 311 (118) 124 72 (11) ** ** 317 (17) **

Provision (benefit) for credit losses (2) (1) 5 - - 100 ** 2 - **

Non-interest expense^(14)(15) 110 340 118 123 113 (68) (3) % 568 299 90 %

Income (loss) from continuing operations before income taxes 203 (457) 1 (51) (124) ** ** (253) (316) (20)

Income tax provision (benefit) 316 (305) (113) (78) (60) ** ** (102) (275) (63)

Income (loss) from continuing operations, net of tax $ (113) $ (152) $ 114 $ 27 $ (64) (26) 77 $ (151) $ (41) **

Selected performance metrics:

Period-end deposits $ 19,258 $ 21,765 $ 19,260 $ 17,464 $ 19,802 (12) (3) $ 19,258 $ 19,802 (3)

Average deposits 20,820 21,416 17,344 18,223 19,456 (3) 7 19,863 19,028 4

Total

Earnings:

Net interest income $ 5,555 $ 5,460 $ 6,025 $ 6,066 $ 5,737 2 % (3) % $ 17,040 $ 17,274 (1) %

Non-interest income 1,826 1,096 1,224 1,361 1,222 67 49 4,146 3,892 7

Total net revenue 7,381 6,556 7,249 7,427 6,959 13 6 21,186 21,166 -

Provision for credit losses 331 4,246 5,423 1,818 1,383 (92) (76) 10,000 4,418 126

Non-interest expense 3,548 3,770 3,729 4,161 3,872 (6) (8) 11,047 11,322 (2)

Income (loss) from continuing operations before income taxes 3,502 (1,460) (1,903) 1,448 1,704 ** 106 139 5,426 (97)

Income tax provision (benefit) 1,096 (543) (563) 270 375 ** 192 (10) 1,071 **

Income (loss) from continuing operations, net of tax $ 2,406 $ (917) $ (1,340) $ 1,178 $ 1,329 ** 81 $ 149 $ 4,355 (97)

Selected performance metrics:

Period-end loans held for investment $ 248,223 $ 251,512 $ 262,990 $ 265,809 $ 249,355 (1) - $ 248,223 $ 249,355 -

Average loans held for investment 249,511 253,358 262,889 258,870 246,147 (2) 1 255,232 243,602 5

Period-end deposits 305,725 304,238 269,689 262,697 257,148 - 19 305,725 257,148 19

Average deposits 305,516 288,344 264,653 260,040 255,082 6 20 286,242 253,389 13

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



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 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 ^(4)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.

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

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

^ 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 (11)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.

Percentages represent period-end loans held for investment in each credit score ^ category. Auto credit scores generally represent average FICO scores obtained (12)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.

^ 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 Q3 2020, $11 (15)million in Q2 2020, $4 million in Q1 2020, $16 million in Q4 2019 and $22 million in Q3 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) September 30, June 30, March 31, December 31, September 30, 2020 2020 2020 2019 2019

Regulatory Capital Metrics

Common equity excluding AOCI $ 52,839 $ 50,614 $ 51,018 $ 52,001 $ 51,959

Adjustments:

AOCI, net of tax^(2) (122) (145) (170) 1,156 453

Goodwill, net of related deferred tax liabilities (14,448) (14,449) (14,453) (14,465) (14,439)

Intangible assets, net of related deferred tax liabilities (95) (135) (151) (170) (180)

Other^(2) - - - (360) (588)

Common equity Tier 1 capital $ 38,174 $ 35,885 $ 36,244 $ 38,162 $ 37,205

Tier 1 capital $ 43,505 $ 41,094 $ 41,453 $ 43,015 $ 43,028

Total capital^(3) 50,954 48,508 48,775 50,350 50,174

Risk-weighted assets 293,790 290,222 302,871 313,155 298,130

Adjusted average assets^(4) 409,602 398,062 377,360 368,511 360,266

Capital Ratios

Common equity Tier 1 capital^(5) 13.0 % 12.4 % 12.0 % 12.2 % 12.5 %

Tier 1 capital^(6) 14.8 14.2 13.7 13.7 14.4

Total capital^(7) 17.3 16.7 16.1 16.1 16.8

Tier 1 leverage^(4) 10.6 10.3 11.0 11.7 11.9

Tangible common equity ("TCE")^(8) 9.4 8.8 9.6 10.2 10.3

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.



2020 2020 2020 Nine Months Ended

Q3 Q2 Q1 September 30, 2020

Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted (Dollars in millions, except per share data and as noted) Adj.^(9) Adj.^(9) Adj.^(9) Adj.^(9) Results Results Results Results Results Results Results Results

Selected income statement data:

Net interest income $5,555 $(18) $5,537 $5,460 - $5,460 $6,025 - $6,025 $17,040 $(18) $17,022

Non-interest income 1,826 (18) 1,808 1,096 - 1,096 1,224 - 1,224 4,146 (18) 4,128

Total net revenue 7,381 (36) 7,345 6,556 - 6,556 7,249 - 7,249 21,186 (36) 21,150

Provision for credit losses 331 - 331 4,246 - 4,246 5,423 - 5,423 10,000 - 10,000

Non-interest expense 3,548 (46) 3,502 3,770 $(276) 3,494 3,729 $(49) 3,680 11,047 (371) 10,676

Income (loss) from continuing operations before 3,502 10 3,512 (1,460) 276 (1,184) (1,903) 49 (1,854) 139 335 474 income taxes

Income tax provision (benefit) 1,096 12 1,108 (543) 3 (540) (563) 12 (551) (10) 27 17

Income (loss) from continuing operations, net of tax 2,406 (2) 2,404 (917) 273 (644) (1,340) 37 (1,303) 149 308 457

Income (loss) from discontinued operations, net of tax - - - (1) - (1) - - - (1) - (1)

Net income (loss) 2,406 (2) 2,404 (918) 273 (645) (1,340) 37 (1,303) 148 308 456

Dividends and undistributed earnings allocated to (20) - (20) (1) - (1) (3) - (3) (5) - (5) participating securities^(10)

Preferred stock dividends (67) - (67) (90) - (90) (55) - (55) (212) - (212)

Issuance cost for redeemed preferred stock - - - - - - (22) - (22) (22) - (22)

Net income (loss) available to common stockholders $2,319 $(2) $2,317 $(1,009) $273 $(736) $(1,420) $37 $(1,383) $(91) $308 $217

Selected performance metrics:

Diluted EPS^(10) $5.06 $(0.01) $5.05 $(2.21) $0.60 $(1.61) $(3.10) $0.08 $(3.02) $(0.20) $0.67 $0.47

Efficiency ratio 48.07 %(39) bps47.68 %57.50 %(421) bps53.29 %51.44 %(67) bps50.77 %52.14 %(166) bps50.48 %

Operating efficiency ratio 44.24 (41) 43.83 53.34 (421) 49.13 44.67 (68) 43.99 47.20 (167) 45.53



2019 2019 2019 Nine Months Ended

Q3 Q2 Q1 September 30, 2019

Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted (Dollars in millions, except per share data and as noted) Adj.^(9) Adj.^(9) Adj.^(9) Adj.^(9) Results Results Results Results Results Results Results Results

Selected income statement data:

Net interest income $5,737 $67 $5,804 $5,746 - $5,746 $5,791 - $5,791 $17,274 $67 $17,341

Non-interest income 1,222 73 1,295 1,378 $1 1,379 1,292 - 1,292 3,892 74 3,966

Total net revenue 6,959 140 7,099 7,124 1 7,125 7,083 - 7,083 21,166 141 21,307

Provision for credit losses 1,383 - 1,383 1,342 - 1,342 1,693 - 1,693 4,418 - 4,418

Non-interest expense 3,872 (178) 3,694 3,779 (81) 3,698 3,671 $(25) 3,646 11,322 (284) 11,038

Income from continuing operations before income 1,704 318 2,022 2,003 82 2,085 1,719 25 1,744 5,426 425 5,851 taxes

Income tax provision 375 21 396 387 19 406 309 6 315 1,071 46 1,117

Income from continuing operations, net of tax 1,329 297 1,626 1,616 63 1,679 1,410 19 1,429 4,355 379 4,734

Income from discontinued operations, net of tax 4 - 4 9 - 9 2 - 2 15 - 15

Net income 1,333 297 1,630 1,625 63 1,688 1,412 19 1,431 4,370 379 4,749

Dividends and undistributed earnings allocated to (10) (2) (12) (12) (1) (13) (12) - (12) (34) (3) (37) participating securities^(10)

Preferred stock dividends (53) - (53) (80) - (80) (52) - (52) (185) - (185)

Net income available to common stockholders $1,270 $295 $1,565 $1,533 $62 $1,595 $1,348 $19 $1,367 $4,151 $376 $4,527

Selected performance metrics:

Diluted EPS^(10) $2.69 $0.63 $3.32 $3.24 $0.13 $3.37 $2.86 $0.04 $2.90 $8.79 $0.80 $9.59

Efficiency ratio 55.64 %(360) bps52.04 %53.05 %(115) bps51.90 %51.83 %(35) bps51.48 %53.49 %(169) bps51.80 %

Operating efficiency ratio 48.44 (346) 44.98 45.38 (114) 44.24 44.53 (35) 44.18 46.10 (164) 44.46

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.



2020 2020 2020 2019 2019

(Dollars in millions) Q3 Q2 Q1 Q4 Q3

Tangible Common Equity (Period-End)

Stockholders' equity $ 58,424 $ 56,045 $ 56,830 $ 58,011 $ 58,235

Goodwill and intangible assets^(11) (14,825) (14,869) (14,888) (14,932) (14,940)

Noncumulative perpetual preferred stock (5,330) (5,209) (5,209) (4,853) (5,823)

Tangible common equity $ 38,269 $ 35,967 $ 36,733 $ 38,226 $ 37,472

Tangible Common Equity (Average)

Stockholders' equity $ 57,223 $ 57,623 $ 58,568 $ 58,148 $ 57,245

Goodwill and intangible assets^(11) (14,867) (14,880) (14,930) (14,967) (14,908)

Noncumulative perpetual preferred stock (5,228) (5,209) (5,382) (5,506) (4,678)

Tangible common equity $ 37,128 $ 37,534 $ 38,256 $ 37,675 $ 37,659

Tangible Assets (Period-End)

Total assets $ 421,883 $ 421,296 $ 396,878 $ 390,365 $ 378,810

Goodwill and intangible assets^(11) (14,825) (14,869) (14,888) (14,932) (14,940)

Tangible assets $ 407,058 $ 406,427 $ 381,990 $ 375,433 $ 363,870

Tangible Assets (Average)

Total assets $ 422,854 $ 411,075 $ 390,380 $ 383,162 $ 374,905

Goodwill and intangible assets^(11) (14,867) (14,880) (14,930) (14,967) (14,908)

Tangible assets $ 407,987 $ 396,195 $ 375,450 $ 368,195 $ 359,997

__________

^(1) Regulatory capital metrics and capital ratios as of September 30, 2020 are preliminary and therefore subject to change.

^(2) In the first quarter of 2020, we elected to exclude from our regulatory capital ratios certain components of AOCI as permitted under the Tailoring 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 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.

^(5) Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.

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

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

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

^(9) The adjustments for the following periods consist of:

2020 2020 2020 Nine Months Ended 2019 2019 2019 Nine Months Ended

(Dollars in millions) Q3 Q2 Q1 September 30, 2020 Q3 Q2 Q1 September 30, 2019

Legal reserve builds $ 40 $ 265 $ 45 $ 350 - - - -

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

Cybersecurity Incident expenses, net of 6 11 4 21 22 - - 22 insurance

Walmart launch and related integration expenses - - - - 84 $ 54 $ 25 163

Restructuring charges - - - - - 28 - 28

Total 10 276 49 335 318 82 25 425

Income tax provision 12 3 12 27 21 19 6 46

Net income (loss) $ (2) $ 273 $ 37 $ 308 $ 297 $ 63 $ 19 $ 379



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

^(11) Includes impact of related deferred taxes.

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SOURCE Capital One Financial Corporation