PR Newswire | Oct 26, 2021 04:06PM EDT

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10/26 15:05 CDT

Capital One Reports Third Quarter 2021 Net Income of $3.1 billion, or $6.78 per shareExcluding adjusting items, Third Quarter 2021 Net Income of $6.86 per share(1) MCLEAN, Va., Oct. 26, 2021

MCLEAN, Va., Oct. 26, 2021 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2021 of $3.1 billion, or $6.78 per diluted common share, compared with net income of $3.5 billion, or $7.62 per diluted common share in the second quarter of 2021, and with a net income of $2.4 billion, or $5.06 per diluted common share in the third quarter of 2020. Excluding adjusting items, net income for the third quarter of 2021 was $6.86 per diluted common share.(1)

"Our modern technology stack is powering our performance and our opportunity," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "It's setting us up to capitalize on the accelerating digital revolution in banking, and it's the engine that drives enduring value creation over the long-term."

The quarter included the following adjusting item:

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

Legal reserve activity $45 $0.08

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

Third Quarter 2021 Income Statement Summary:

* Total net revenue increased 6 percent to $7.8 billion. * Total non-interest expense increased 6 percent to $4.2 billion: * 21 percent increase in marketing. * 3 percent increase in operating expenses.

* Pre-provision earnings increased 7 percent to $3.6 billion.(2) * Provision (benefit) for credit losses increased $818.0 million to $(342.0) million: * Net charge-offs of $426.0 million. * $770.0 million loan reserve release.

* Net interest margin of 6.35 percent, an increase of 46 basis points. * Efficiency ratio of 53.46 percent. * Efficiency ratio excluding adjusting items of 52.89 percent.(1)

* Operating efficiency ratio of 43.87 percent. * Operating efficiency ratio excluding adjusting items of 43.30 percent.(1)

Third Quarter 2021 Balance Sheet Summary:

* Common equity Tier 1 capital ratio under Basel III Standardized Approach of 13.8 percent at September 30, 2021. * Period-end loans held for investment in the quarter increased $11.8 billion, or 5 percent, to $261.4 billion. * Credit Card period-end loans increased $4.0 billion, or 4 percent, to $105.0 billion. * Domestic Card period-end loans increased $3.9 billion, or 4 percent, to $99.3 billion.

* Consumer Banking period-end loans increased $2.4 billion, or 3 percent, to $77.1 billion. * Auto period-end loans increased $3.0 billion, or 4 percent, to $74.7 billion.

* Commercial Banking period-end loans increased $5.4 billion, or 7 percent, to $79.2 billion.

* Average loans held for investment in the quarter increased $6.6 billion, or 3 percent, to $253.1 billion. * Credit Card average loans increased $2.4 billion, or 2 percent, to $102.0 billion. * Domestic Card average loans increased $4.8 billion, or 5 percent, to $96.3 billion.

* Consumer Banking average loans increased $3.3 billion, or 5 percent, to $76.0 billion. * Auto average loans increased $3.8 billion, or 5 percent, to $73.3 billion.

* Commercial Banking average loans increased $1.0 billion, or 1 percent, to $75.1 billion.

* Period-end total deposits decreased $370 million, or less than 1 percent, to $305.9 billion, while average deposits decreased $3.2 billion, or 1 percent, to $305.0 billion. * Interest-bearing deposits rate paid decreased 1 basis point to 0.34 percent.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on October 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 November 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, 2020.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $305.9 billion in deposits and $425.4 billion in total assets as of September 30, 2021. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

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 income and non-interest income, less non-interest expense for the period.^ Management believes that this financial metric is useful in enabling(2) investors and others to assess the Company's ability to generate income to cover credit losses through a credit cycle, which can vary significantly between periods.

Exhibit 99.2



Capital One Financial Corporation

Financial Supplement^(1)(2)

Third Quarter 2021

Table of Contents



Capital One Financial Corporation Consolidated Results Page

Table 1: Financial Summary-Consolidated 1

Table 2: Selected Metrics-Consolidated 3

Table 3: Consolidated Statements of Income 4

Table 4: Consolidated Balance Sheets 7

Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial 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 14 Activity

Business Segment Results

Table 9: Financial Summary-Business Segment Results 15

Table 10:Financial & Statistical Summary-Credit Card Business 16

Table 11:Financial & Statistical Summary-Consumer Banking Business 18

Table 12:Financial & Statistical Summary-Commercial Banking Business 19

Table 13:Financial & Statistical Summary-Other and Total 20

Other

Table 14:Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures 21 (Tables 6-13)

Table 15:Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP 22 Measures



The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. ^(1)Investors should refer to our Quarterly Report on Form 10-Q for the period ended September 30, 2021 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 capital adequacy and the ^(2)level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. ("GAAP"), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary-Consolidated

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs.(Dollars in millions, except per share data and as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020 2020

Income Statement

Net interest income $ 6,156 $ 5,743 $ 5,822 $ 5,873 $ 5,555 7 % 11 % $ 17,721 $ 17,040 4 %

Non-interest income 1,674 1,631 1,291 1,464 1,826 3 (8) 4,596 4,146 11

Total net revenue^(1) 7,830 7,374 7,113 7,337 7,381 6 6 22,317 21,186 5

Provision (benefit) for credit losses (342) (1,160) (823) 264 331 (71) ** (2,325) 10,000 **

Non-interest expense:

Marketing 751 620 501 563 283 21 165 1,872 1,047 79

Operating expense 3,435 3,346 3,239 3,446 3,265 3 5 10,020 10,000 -

Total non-interest expense 4,186 3,966 3,740 4,009 3,548 6 18 11,892 11,047 8

Income from continuing operations before income taxes 3,986 4,568 4,196 3,064 3,502 (13) 14 12,750 139 **

Income tax provision (benefit) 882 1,031 869 496 1,096 (14) (20) 2,782 (10) **

Income from continuing operations, net of tax 3,104 3,537 3,327 2,568 2,406 (12) 29 9,968 149 **

Loss from discontinued operations, net of tax - (1) (2) (2) - ** - (3) (1) **

Net income 3,104 3,536 3,325 2,566 2,406 (12) 29 9,965 148 **

Dividends and undistributed earnings allocated to participating (26) (30) (28) (19) (20) (13) 30 (84) (5) **securities^(2)

Preferred stock dividends (79) (60) (61) (68) (67) 32 18 (200) (212) (6)

Issuance cost for redeemed preferred stock^(3) (12) - - (17) - ** ** (12) (22) (45)

Net income (loss) available to common stockholders $ 2,987 $ 3,446 $ 3,236 $ 2,462 $ 2,319 (13) 29 $ 9,669 $ (91) **

Common Share Statistics

Basic earnings per common share:^(2)

Net income (loss) from continuing operations $ 6.81 $ 7.65 $ 7.06 $ 5.36 $ 5.07 (11) % 34 % $ 21.53 $ (0.20) **

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

Net income (loss) per basic common share $ 6.81 $ 7.65 $ 7.06 $ 5.36 $ 5.07 (11) 34 $ 21.52 $ (0.20) **

Diluted earnings per common share:^(2)

Net income (loss) from continuing operations $ 6.78 $ 7.62 $ 7.03 $ 5.35 $ 5.06 (11) % 34 % $ 21.45 $ (0.20) **

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

Net income (loss) per diluted common share $ 6.78 $ 7.62 $ 7.03 $ 5.35 $ 5.06 (11) 34 $ 21.44 $ (0.20) **

Weighted-average common shares outstanding (in millions):

Basic 438.8 450.6 458.6 459.1 457.8 (3) % (4) % 449.2 457.4 (2) %

Diluted 440.5 452.3 460.1 460.2 458.5 (3) (4) 450.9 457.4 (1)

Common shares outstanding (period-end, in millions) 430.4 446.1 456.8 459.0 457.4 (4) (6) 430.4 457.4 (6)

Dividends declared and paid per common share $ 1.20 $ 0.40 $ 0.40 $ 0.10 $ 0.10 ** ** $ 2.00 $ 0.90 122

Tangible book value per common share (period-end)^(4) 99.60 97.20 90.96 88.34 83.67 2 19 99.60 83.67 19

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs.(Dollars in millions) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020 2020

Balance Sheet (Period-End)

Loans held for investment $ 261,390 $ 249,597 $ 243,131 $ 251,624 $ 248,223 5 % 5 % $ 261,390 $ 248,223 5 %

Interest-earning assets 387,208 387,295 392,485 388,917 390,040 - (1) 387,208 390,040 (1)

Total assets 425,377 423,420 425,175 421,602 421,883 - 1 425,377 421,883 1

Interest-bearing deposits 269,134 271,314 276,325 274,300 276,092 (1) (3) 269,134 276,092 (3)

Total deposits 305,938 306,308 310,328 305,442 305,725 - - 305,938 305,725 -

Borrowings 37,501 36,343 38,450 40,539 42,795 3 (12) 37,501 42,795 (12)

Common equity 57,632 58,136 56,341 55,356 53,093 (1) 9 57,632 53,093 9

Total stockholders' equity 63,544 64,624 61,188 60,204 58,424 (2) 9 63,544 58,424 9

Balance Sheet (Average Balances)

Loans held for investment $ 253,101 $ 246,463 $ 243,937 $ 247,689 $ 249,511 3 % 1 % $ 247,867 $ 255,232 (3) %

Interest-earning assets 387,766 390,129 388,572 388,252 391,451 (1) (1) 388,820 375,041 4

Total assets 424,506 424,099 421,808 420,011 422,854 - - 423,457 408,233 4

Interest-bearing deposits 269,278 273,476 273,358 274,142 276,339 (2) (3) 272,022 259,631 5

Total deposits 305,035 308,217 305,056 304,513 305,516 (1) - 306,102 286,242 7

Borrowings 37,464 37,054 39,911 40,662 44,161 1 (15) 38,134 48,577 (21)

Common equity 58,230 56,885 55,775 54,220 51,995 2 12 56,972 52,529 8

Total stockholders' equity 64,682 62,376 60,623 59,389 57,223 4 13 62,575 57,802 8

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics-Consolidated

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs.(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020 2020

Performance Metrics

Net interest income growth (period over period) 7 % (1) % (1) % 6 % 2 % ** ** 4 % (1) % **

Non-interest income growth (period over period) 3 26 (12) (20) 67 ** ** 11 7 **

Total net revenue growth (period over period) 6 4 (3) (1) 13 ** ** 5 - **

Total net revenue margin^(5) 8.08 7.56 7.32 7.56 7.54 52 bps 54 bps 7.65 7.53 12 bps

Net interest margin^(6) 6.35 5.89 5.99 6.05 5.68 46 67 6.08 6.06 2

Return on average assets 2.92 3.34 3.16 2.45 2.28 (42) 64 3.14 0.05 309

Return on average tangible assets^(7) 3.03 3.46 3.27 2.54 2.36 (43) 67 3.25 0.05 320

Return on average common equity^(8) 20.52 24.24 23.22 18.18 17.84 (372) 268 22.64 (0.23) 23 %

Return on average tangible common equity^(9) 27.50 32.75 31.61 25.02 24.98 (5) % 252 30.57 (0.32) 31

Non-interest expense as a percentage of average loans held for 6.62 6.44 6.13 6.47 5.69 18 bps 93 6.40 5.77 63 bpsinvestment

Efficiency ratio^(10) 53.46 53.78 52.58 54.64 48.07 (32) 5 % 53.29 52.14 115

Operating efficiency ratio^(11) 43.87 45.38 45.54 46.97 44.24 (151) (37) bps 44.90 47.20 (230)

Effective income tax rate for continuing operations 22.1 22.6 20.7 16.2 31.3 (50) (9) % 21.8 (7.2) 29 %

Employees (period-end, in thousands) 50.8 52.0 51.7 52.0 52.5 (2) % (3) 50.8 52.5 (3)

Credit Quality Metrics

Allowance for credit losses $ 11,573 $ 12,346 $ 14,017 $ 15,564 $ 16,129 (6) % (28) % $ 11,573 $ 16,129 (28) %

Allowance coverage ratio 4.43 % 4.95 % 5.77 % 6.19 % 6.50 % (52) bps (207) bps 4.43 % 6.50 % (207) bps

Net charge-offs $ 426 $ 541 $ 740 $ 856 $ 1,073 (21) % (60) % $ 1,707 $ 4,369 (61) %

Net charge-off rate^(12) 0.67 % 0.88 % 1.21 % 1.38 % 1.72 % (21) bps (105) bps 0.92 % 2.28 % (136) bps

30+ day performing delinquency rate 1.97 1.75 1.82 2.41 1.97 22 - 1.97 1.97 -

30+ day delinquency rate 2.13 1.89 1.98 2.61 2.22 24 (9) 2.13 2.22 (9)

Capital Ratios^(13)

Common equity Tier 1 capital 13.8 % 14.5 % 14.6 % 13.7 % 13.0 % (70) bps 80 bps 13.8 % 13.0 % 80 bps

Tier 1 capital 15.7 16.6 16.2 15.3 14.8 (90) 90 15.7 14.8 90

Total capital 18.2 18.8 18.6 17.7 17.3 (60) 90 18.2 17.3 90

Tier 1 leverage 12.2 12.4 11.7 11.2 10.6 (20) 160 12.2 10.6 160

Tangible common equity ("TCE")^(14) 10.4 10.6 10.1 10.0 9.4 (20) 100 10.4 9.4 100

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs.

(Dollars in millions, except per share data and as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020 2020

Interest income:

Loans, including loans held for sale $ 6,205 $ 5,753 $ 5,854 $ 5,954 $ 5,758 8 % 8 % $ 17,812 $ 18,120 (2) %

Investment securities 317 370 391 422 443 (14) (28) 1,078 1,455 (26)

Other 16 16 16 15 14 - 14 48 67 (28)

Total interest income 6,538 6,139 6,261 6,391 6,215 6 5 18,938 19,642 (4)

Interest expense:

Deposits 228 237 269 347 476 (4) (52) 734 1,818 (60)

Securitized debt obligations 29 28 32 34 43 4 (33) 89 198 (55)

Senior and subordinated notes 116 122 129 128 132 (5) (12) 367 551 (33)

Other borrowings 9 9 9 9 9 - - 27 35 (23)

Total interest expense 382 396 439 518 660 (4) (42) 1,217 2,602 (53)

Net interest income 6,156 5,743 5,822 5,873 5,555 7 11 17,721 17,040 4

Provision (benefit) for credit losses (342) (1,160) (823) 264 331 (71) ** (2,325) 10,000 **

Net interest income after provision for credit losses 6,498 6,903 6,645 5,609 5,224 (6) 24 20,046 7,040 185

Non-interest income:

Interchange fees, net 1,022 1,016 817 818 775 1 32 2,855 2,199 30

Service charges and other customer-related fees 407 384 352 338 320 6 27 1,143 905 26

Net securities gains 2 - 4 - 25 - (92) 6 25 (76)

Other 243 231 118 308 706 5 (66) 592 1,017 (42)

Total non-interest income 1,674 1,631 1,291 1,464 1,826 3 (8) 4,596 4,146 11

Non-interest expense:

Salaries and associate benefits 1,852 1,781 1,847 1,755 1,719 4 8 5,480 5,050 9

Occupancy and equipment 481 523 472 572 506 (8) (5) 1,476 1,546 (5)

Marketing 751 620 501 563 283 21 165 1,872 1,047 79

Professional services 358 341 292 394 327 5 9 991 918 8

Communications and data processing 319 315 302 295 310 1 3 936 920 2

Amortization of intangibles 5 5 6 8 14 - (64) 16 52 (69)

Other 420 381 320 422 389 10 8 1,121 1,514 (26)

Total non-interest expense 4,186 3,966 3,740 4,009 3,548 6 18 11,892 11,047 8

Income from continuing operations before income taxes 3,986 4,568 4,196 3,064 3,502 (13) 14 12,750 139 **

Income tax provision (benefit) 882 1,031 869 496 1,096 (14) (20) 2,782 (10) **

Income from continuing operations, net of tax 3,104 3,537 3,327 2,568 2,406 (12) 29 9,968 149 **

Income (loss) from discontinued operations, net of tax - (1) (2) (2) - ** - (3) (1) 200

Net income 3,104 3,536 3,325 2,566 2,406 (12) 29 9,965 148 **

Dividends and undistributed earnings allocated to participating (26) (30) (28) (19) (20) (13) 30 (84) (5) **securities^(2)

Preferred stock dividends (79) (60) (61) (68) (67) 32 18 (200) (212) (6)

Issuance cost for redeemed preferred stock^(3) (12) - - (17) - ** ** (12) (22) (45)

Net income (loss) available to common stockholders $ 2,987 $ 3,446 $ 3,236 $ 2,462 $ 2,319 (13) 29 $ 9,669 $ (91) **

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs.

(Dollars in millions, except per share data and as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020 2020

Basic earnings per common share:^(2)

Net income (loss) from continuing operations $ 6.81 $ 7.65 $ 7.06 $ 5.36 $ 5.07 (11) % 34 % $ 21.53 $ (0.20) **

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

Net income (loss) per basic common share $ 6.81 $ 7.65 $ 7.06 $ 5.36 $ 5.07 (11) 34 $ 21.52 $ (0.20) **

Diluted earnings per common share:^(2)

Net income (loss) from continuing operations $ 6.78 $ 7.62 $ 7.03 $ 5.35 $ 5.06 (11) 34 $ 21.45 $ (0.20) **

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

Net income (loss) per diluted common share $ 6.78 $ 7.62 $ 7.03 $ 5.35 $ 5.06 (11) 34 $ 21.44 $ (0.20) **

Weighted-average common shares outstanding (in millions):

Basic common shares 438.8 450.6 458.6 459.1 457.8 (3) (4) 449.2 457.4 (2) %

Diluted common shares 440.5 452.3 460.1 460.2 458.5 (3) (4) 450.9 457.4 (1)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets

2021 Q3 vs.

2021 2021 2021 2020 2020 2021 2020

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

Assets:

Cash and cash equivalents:

Cash and due from banks $ 5,444 $ 5,312 $ 4,670 $ 4,708 $ 4,267 2 % 28 %

Interest-bearing deposits and other short-term investments 21,180 29,534 45,825 35,801 39,839 (28) (47)

Total cash and cash equivalents 26,624 34,846 50,495 40,509 44,106 (24) (40)

Restricted cash for securitization investors 234 242 1,779 262 895 (3) (74)

Securities available for sale 98,149 101,766 99,165 100,445 99,853 (4) (2)

Loans held for investment:

Unsecuritized loans held for investment 238,475 226,130 219,182 225,698 217,878 5 9

Loans held in consolidated trusts 22,915 23,467 23,949 25,926 30,345 (2) (24)

Total loans held for investment 261,390 249,597 243,131 251,624 248,223 5 5

Allowance for credit losses (11,573) (12,346) (14,017) (15,564) (16,129) (6) (28)

Net loans held for investment 249,817 237,251 229,114 236,060 232,094 5 8

Loans held for sale 6,300 6,522 2,896 2,710 3,433 (3) 84

Premises and equipment, net 4,204 4,227 4,277 4,287 4,333 (1) (3)

Interest receivable 1,418 1,372 1,380 1,471 1,551 3 (9)

Goodwill 14,652 14,654 14,654 14,653 14,648 - -

Other assets 23,979 22,540 21,415 21,205 20,970 6 14

Total assets $ 425,377 $ 423,420 $ 425,175 $ 421,602 $ 421,883 - 1

2021 Q3 vs.

2021 2021 2021 2020 2020 2021 2020

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

Liabilities:

Interest payable $ 241 $ 301 $ 288 $ 352 $ 332 (20) % (27) %

Deposits:

Non-interest-bearing deposits 36,804 34,994 34,003 31,142 29,633 5 24

Interest-bearing deposits 269,134 271,314 276,325 274,300 276,092 (1) (3)

Total deposits 305,938 306,308 310,328 305,442 305,725 - -

Securitized debt obligations 12,635 10,561 12,071 12,414 13,566 20 (7)

Other debt:

Federal funds purchased and securities loaned or sold under agreements to 825 845 842 668 702 (2) 18repurchase

Senior and subordinated notes 23,983 24,878 25,467 27,382 28,448 (4) (16)

Other borrowings 58 59 70 75 79 (2) (27)

Total other debt 24,866 25,782 26,379 28,125 29,229 (4) (15)

Other liabilities 18,153 15,844 14,921 15,065 14,607 15 24

Total liabilities 361,833 358,796 363,987 361,398 363,459 1 -

Stockholders' equity:

Preferred stock 0 0 0 0 0 - -

Common stock 7 7 7 7 7 - -

Additional paid-in capital, net 35,051 35,472 33,671 33,480 33,793 (1) 4

Retained earnings 48,944 46,461 43,167 40,088 37,653 5 30

Accumulated other comprehensive income 1,360 1,792 1,783 3,494 3,833 (24) (65)

Treasury stock, at cost (21,818) (19,108) (17,440) (16,865) (16,862) 14 29

Total stockholders' equity 63,544 64,624 61,188 60,204 58,424 (2) 9

Total liabilities and stockholders' equity $ 425,377 $ 423,420 $ 425,175 $ 421,602 $ 421,883 - 1

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 $123 million in Q3 2021, $175 million in^(1) Q2 2021, $180 million in Q1 2021, $177 million in Q4 2020 and $235 million in Q3 2020 for credit card finance charges and fees charged-off as uncollectible.

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^(2) 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, which increased our net loss available to common shareholders by $22 million in Q1 2020. On December 1, 2020, we redeemed all outstanding shares of our fixed rate^(3) 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 September 1, 2021, we redeemed all outstanding shares of our fixed-to-floating rate non-cumulative perpetual preferred stock Series E, which reduced our net income available to common shareholders by $12 million in Q3 2021.

Tangible book value per common share is a non-GAAP measure calculated^(4) based on tangible common equity divided by common shares outstanding. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.

Total net revenue margin is calculated based on annualized total net^(5) 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^(7) the period divided by average tangible assets for the period. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.

Return on average common equity is calculated based on annualized net income (loss) available to common stockholders less annualized income^(8) (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.

Return on average tangible common equity ("ROTCE") is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations,^(9) net of tax, for the period, divided by average tangible common equity ("TCE"). Our calculation of return on average TCE may not be comparable to similarly-titled measures reported by other companies. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.

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(10) adjusted efficiency ratio, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures.

Operating efficiency ratio is calculated based on operating expense for^ the period divided by total net revenue for the period. We also provide an(11) adjusted operating efficiency ratio, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures.

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

Capital ratios as of the end of Q3 2021 are preliminary and therefore^ subject to change. See "Table 15: Calculation of Regulatory Capital(13) 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 assets. See "Table 15: Calculation of Regulatory Capital Measures(14) and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

2021 Q3 2021 Q2 2020 Q3

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

Interest-earning assets:

Loans, including loans held for sale $ 260,235 $ 6,205 9.54 % $ 249,280 $ 5,753 9.23 % $ 250,525 $ 5,758 9.19 %

Investment securities^(1) 98,802 317 1.28 100,071 370 1.48 91,777 443 1.93

Cash equivalents and other 28,729 16 0.22 40,778 16 0.16 49,149 14 0.11

Total interest-earning assets $ 387,766 $ 6,538 6.74 $ 390,129 $ 6,139 6.29 $ 391,451 $ 6,215 6.35

Interest-bearing liabilities:

Interest-bearing deposits $ 269,278 $ 228 0.34 $ 273,476 $ 237 0.35 $ 276,339 $ 476 0.69

Securitized debt obligations 12,420 29 0.93 10,890 28 1.03 15,032 43 1.14

Senior and subordinated notes 24,241 116 1.91 25,487 122 1.92 28,497 132 1.86

Other borrowings and liabilities 2,357 9 1.49 2,198 9 1.67 2,119 9 1.77

Total interest-bearing liabilities $ 308,296 $ 382 0.49 $ 312,051 $ 396 0.50 $ 321,987 $ 660 0.82

Net interest income/spread $ 6,156 6.25 $ 5,743 5.79 $ 5,555 5.53

Impact of non-interest-bearing funding 0.10 0.10 0.15

Net interest margin 6.35 % 5.89 % 5.68 %

Nine Months Ended September 30,

2021 2020

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

Interest-earning assets:

Loans, including loans held for sale $ 252,113 $ 17,812 9.42 % $ 256,165 $ 18,120 9.43 %

Investment securities 99,059 1,078 1.45 83,724 1,455 2.32

Cash equivalents and other 37,648 48 0.17 35,152 67 0.25

Total interest-earning assets $ 388,820 $ 18,938 6.49 $ 375,041 $ 19,642 6.98

Interest-bearing liabilities:

Interest-bearing deposits $ 272,022 $ 734 0.36 $ 259,631 $ 1,818 0.93

Securitized debt obligations 11,851 89 1.00 16,500 198 1.60

Senior and subordinated notes 25,555 367 1.92 30,371 551 2.42

Other borrowings and liabilities 2,256 27 1.59 3,147 35 1.50

Total interest-bearing liabilities $ 311,684 $ 1,217 0.52 $ 309,649 $ 2,602 1.12

Net interest income/spread $ 17,721 5.97 $ 17,040 5.86

Impact of non-interest-bearing funding 0.11 0.20

Net interest margin 6.08 % 6.06 %

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs. 2021 2020 2020(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3

Loans Held for Investment (Period-End)

Credit card:

Domestic credit card^(2) $ 99,258 $ 95,309 $ 91,099 $ 98,504 $ 95,541 4 % 4 % $ 99,258 $ 95,541 4 %

International card businesses^(3) 5,772 5,708 8,028 8,452 8,100 1 (29) 5,772 8,100 (29)

Total credit card 105,030 101,017 99,127 106,956 103,641 4 1 105,030 103,641 1

Consumer banking:

Auto 74,716 71,713 67,059 65,762 65,394 4 14 74,716 65,394 14

Retail banking 2,396 3,046 3,143 3,126 3,294 (21) (27) 2,396 3,294 (27)

Total consumer banking 77,112 74,759 70,202 68,888 68,688 3 12 77,112 68,688 12

Commercial banking:

Commercial and multifamily real estate^(4) 33,096 29,616 30,008 30,681 31,197 12 6 33,096 31,197 6

Commercial and industrial 46,152 44,205 43,794 45,099 44,697 4 3 46,152 44,697 3

Total commercial banking 79,248 73,821 73,802 75,780 75,894 7 4 79,248 75,894 4

Total loans held for investment $ 261,390 $ 249,597 $ 243,131 $ 251,624 $ 248,223 5 5 $ 261,390 $ 248,223 5

Loans Held for Investment (Average)

Credit card:

Domestic credit card $ 96,309 $ 91,535 $ 92,594 $ 95,453 $ 97,306 5 % (1) % $ 93,493 $ 103,980 (10) %

International card businesses 5,737 8,139 7,940 8,108 8,061 (30) (29) 7,264 8,292 (12)

Total credit card 102,046 99,674 100,534 103,561 105,367 2 (3) 100,757 112,272 (10)

Consumer banking:

Auto 73,296 69,543 66,185 65,590 64,476 5 14 69,700 62,434 12

Retail banking 2,700 3,162 3,049 3,218 3,346 (15) (19) 2,969 3,023 (2)

Total consumer banking 75,996 72,705 69,234 68,808 67,822 5 12 72,669 65,457 11

Commercial banking:

Commercial and multifamily real estate 30,314 30,124 29,856 30,825 30,918 1 (2) 30,100 31,239 (4)

Commercial and industrial 44,745 43,960 44,313 44,495 45,404 2 (1) 44,341 46,264 (4)

Total commercial banking 75,059 74,084 74,169 75,320 76,322 1 (2) 74,441 77,503 (4)

Total average loans held for investment $ 253,101 $ 246,463 $ 243,937 $ 247,689 $ 249,511 3 1 $ 247,867 $ 255,232 (3)

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs. 2020 Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020

Net Charge-Off (Recovery) Rates

Credit card:

Domestic credit card 1.36 % 2.28 % 2.54 % 2.69 % 3.64 % (92) bps (228) bps 2.05 % 4.31 % (226) bps

International card businesses 2.72 2.41 2.30 1.86 2.89 31 (17) 2.45 3.71 (126)

Total credit card 1.43 2.29 2.52 2.63 3.58 (86) (215) 2.08 4.26 (218)

Consumer banking:

Auto 0.18 (0.12) 0.47 0.47 0.23 30 (5) 0.17 0.95 (78)

Retail banking 2.45 1.41 1.68 1.88 1.38 104 107 1.82 1.80 2

Total consumer banking 0.27 (0.06) 0.52 0.53 0.28 33 (1) 0.24 0.99 (75)

Commercial banking:

Commercial and multifamily real estate 0.01 0.04 0.06 0.02 0.41 (3) (40) 0.04 0.17 (13)

Commercial and industrial 0.07 (0.21) 0.11 0.74 0.45 28 (38) (0.01) 0.73 (74)

Total commercial banking 0.05 (0.11) 0.09 0.45 0.43 16 (38) 0.01 0.50 (49)

Total net charge-offs 0.67 0.88 1.21 1.38 1.72 (21) (105) 0.92 2.28 (136)

30+ Day Performing Delinquency Rates

Credit card:

Domestic credit card 1.93 % 1.68 % 2.24 % 2.42 % 2.21 % 25 bps (28) bps 1.93 % 2.21 % (28) bps

International card businesses 3.27 2.89 2.51 2.61 2.15 38 112 3.27 2.15 112

Total credit card 2.00 1.75 2.26 2.44 2.20 25 (20) 2.00 2.20 (20)

Consumer banking:

Auto 3.65 3.26 3.12 4.78 3.76 39 (11) 3.65 3.76 (11)

Retail banking 1.15 0.79 1.02 1.32 0.83 36 32 1.15 0.83 32

Total consumer banking 3.58 3.16 3.03 4.62 3.62 42 (4) 3.58 3.62 (4)

Nonperforming Loans and Nonperforming Assets Rates^(5)(6)

Credit card:

International card businesses 0.16 % 0.20 % 0.17 % 0.24 % 0.25 % (4) bps (9) bps 0.16 % 0.25 % (9) bps

Total credit card 0.01 0.01 0.01 0.02 0.02 - (1) 0.01 0.02 (1)

Consumer banking:

Auto 0.36 0.29 0.29 0.45 0.36 7 - 0.36 0.36 -

Retail banking 2.20 1.75 1.16 0.96 0.77 45 143 2.20 0.77 143

Total consumer banking 0.42 0.35 0.33 0.47 0.38 7 4 0.42 0.38 4

Commercial banking:

Commercial and multifamily real estate 0.87 1.02 0.78 0.65 0.58 (15) 29 0.87 0.58 29

Commercial and industrial 0.68 1.03 1.02 1.00 1.31 (35) (63) 0.68 1.31 (63)

Total commercial banking 0.76 1.03 0.92 0.86 1.01 (27) (25) 0.76 1.01 (25)

Total nonperforming loans 0.35 0.41 0.38 0.40 0.42 (6) (7) 0.35 0.42 (7)

Total nonperforming assets 0.37 0.43 0.40 0.41 0.44 (6) (7) 0.37 0.44 (7)

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

Three Months Ended September 30, 2021

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, 2021 $ 8,489 $ 384 $ 8,873 $ 2,122 $ 81 $ 2,203 $ 1,270 $ 12,346

Charge-offs (658) (77) (735) (244) (20) (264) (20) (1,019)

Recoveries 331 38 369 210 3 213 11 593

Net charge-offs (327) (39) (366) (34) (17) (51) (9) (426)

Provision (benefit) for credit losses (200) 2 (198) (100) 9 (91) (55) (344)

Allowance build (release) for credit losses (527) (37) (564) (134) (8) (142) (64) (770)

Other changes^(7) 6 (9) (3) - - - - (3)

Balance as of September 30, 2021 7,968 338 8,306 1,988 73 2,061 1,206 11,573

Reserve for unfunded lending commitments:

Balance as of June 30, 2021 - - - - - - 164 164

Provision (benefit) for losses on unfunded lending commitments - - - - - - 2 2

Balance as of September 30, 2021 - - - - - - 166 166

Combined allowance and reserve as of September 30, 2021 $ 7,968 $ 338 $ 8,306 $ 1,988 $ 73 $ 2,061 $ 1,372 $ 11,739

Nine Months Ended September 30, 2021

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, 2020 $ 10,650 $ 541 $ 11,191 $ 2,615 $ 100 $ 2,715 $ 1,658 $ 15,564

Charge-offs (2,436) (259) (2,695) (813) (53) (866) (47) (3,608)

Recoveries 1,000 125 1,125 723 12 735 41 1,901

Net charge-offs (1,436) (134) (1,570) (90) (41) (131) (6) (1,707)

Provision (benefit) for credit losses (1,252) (73) (1,325) (537) 14 (523) (446) (2,294)

Allowance build (release) for credit losses (2,688) (207) (2,895) (627) (27) (654) (452) (4,001)

Other changes^(7) 6 4 10 - - - - 10

Balance as of September 30, 2021 7,968 338 8,306 1,988 73 2,061 1,206 11,573

Reserve for unfunded lending commitments:

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

Provision (benefit) for losses on unfunded lending commitments - - - - - - (29) (29)

Balance as of September 30, 2021 - - - - - - 166 166

Combined allowance and reserve as of September 30, 2021 $ 7,968 $ 338 $ 8,306 $ 1,988 $ 73 $ 2,061 $ 1,372 $ 11,739

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary-Business Segment Results

Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021

(Dollars in millions) Credit Consumer Commercial Other^(8) Total Credit Consumer Commercial Other^(8) Total Card Banking Banking^(8) Card Banking Banking^(8)

Net interest income (loss) $ 3,620 $ 2,159 $ 578 $ (201) $ 6,156 $ 10,209 $ 6,290 $ 1,558 $ (336) $ 17,721

Non-interest income (loss) 1,263 127 306 (22) 1,674 3,545 412 803 (164) 4,596

Total net revenue (loss) 4,883 2,286 884 (223) 7,830 13,754 6,702 2,361 (500) 22,317

Provision (benefit) for credit losses (198) (91) (53) - (342) (1,325) (523) (475) (2) (2,325)

Non-interest expense 2,424 1,186 459 117 4,186 6,822 3,426 1,295 349 11,892

Income (loss) from continuing operations before income 2,657 1,191 478 (340) 3,986 8,257 3,799 1,541 (847) 12,750taxes

Income tax provision (benefit) 627 282 113 (140) 882 1,952 897 364 (431) 2,782

Income (loss) from continuing operations, net of tax $ 2,030 $ 909 $ 365 $ (200) $ 3,104 $ 6,305 $ 2,902 $ 1,177 $ (416) $ 9,968

Three Months Ended June 30, 2021

(Dollars in millions) Credit Consumer Commercial Other^(8) Total Card Banking Banking^(8)

Net interest income (loss) $ 3,217 $ 2,101 $ 460 $ (35) $ 5,743

Non-interest income (loss) 1,253 144 257 (23) 1,631

Total net revenue (loss) 4,470 2,245 717 (58) 7,374

Provision (benefit) for credit losses (635) (306) (219) - (1,160)

Non-interest expense 2,263 1,123 417 163 3,966

Income (loss) from continuing operations before income 2,842 1,428 519 (221) 4,568taxes

Income tax provision (benefit) 672 337 123 (101) 1,031

Income (loss) from continuing operations, net of tax $ 2,170 $ 1,091 $ 396 $ (120) $ 3,537

Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020

(Dollars in millions) Credit Consumer Commercial Other^(8) Total Credit Consumer Commercial Other^(8) Total Card Banking Banking^(8) Card Banking Banking^(8)

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 1,852 1,043 404 203 3,502 (144) 825 (289) (253) 139taxes

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary-Credit Card Business

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs.

(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020 2020

Credit Card

Earnings:

Net interest income $ 3,620 $ 3,217 $ 3,372 $ 3,413 $ 3,292 13 % 10 % $ 10,209 $ 10,363 (1) %

Non-interest income 1,263 1,253 1,029 1,054 1,013 1 25 3,545 2,769 28

Total net revenue 4,883 4,470 4,401 4,467 4,305 9 13 13,754 13,132 5

Provision (benefit) for credit losses (198) (635) (492) 231 450 (69) ** (1,325) 7,096 **

Non-interest expense 2,424 2,263 2,135 2,311 2,003 7 21 6,822 6,180 10

Income (loss) from continuing operations before income taxes 2,657 2,842 2,758 1,925 1,852 (7) 43 8,257 (144) **

Income tax provision (benefit) 627 672 653 454 438 (7) 43 1,952 (34) **

Income (loss) from continuing operations, net of tax $ 2,030 $ 2,170 $ 2,105 $ 1,471 $ 1,414 (6) 44 $ 6,305 $ (110) **

Selected performance metrics:

Period-end loans held for investment^(2)(3) $ 105,030 $ 101,017 $ 99,127 $ 106,956 $ 103,641 4 1 $ 105,030 $ 103,641 1

Average loans held for investment 102,046 99,674 100,534 103,561 105,367 2 (3) 100,757 112,272 (10)

Average yield on loans outstanding^(9) 14.88 % 14.04 % 14.49 % 14.24 % 13.83 % 84 bps 105 bps 14.47 % 14.03 % 44 bps

Total net revenue margin^(10) 18.33 17.59 17.17 16.92 16.34 74 199 17.70 15.59 211

Net charge-off rate 1.43 2.29 2.52 2.63 3.58 (86) (215) 2.08 4.26 (218)

30+ day performing delinquency rate 2.00 1.75 2.26 2.44 2.20 25 (20) 2.00 2.20 (20)

30+ day delinquency rate 2.00 1.75 2.27 2.45 2.21 25 (21) 2.00 2.21 (21)

Nonperforming loan rate^(5) 0.01 0.01 0.01 0.02 0.02 - (1) 0.01 0.02 (1)

Purchase volume^(11) $ 136,614 $ 132,676 $ 108,333 $ 117,141 $ 107,102 3 % 28 % $ 377,623 $ 297,171 27 %

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs.

(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020 2020

Domestic Card

Earnings:

Net interest income $ 3,319 $ 2,944 $ 3,095 $ 3,129 $ 2,995 13 % 11 % $ 9,358 $ 9,470 (1) %

Non-interest income 1,200 1,183 959 994 952 1 26 3,342 2,589 29

Total net revenue 4,519 4,127 4,054 4,123 3,947 9 14 12,700 12,059 5

Provision (benefit) for credit losses (200) (561) (491) 231 378 (64) ** (1,252) 6,748 **

Non-interest expense 2,191 2,034 1,923 2,063 1,802 8 22 6,148 5,562 11

Income (loss) from continuing operations before income taxes 2,528 2,654 2,622 1,829 1,767 (5) 43 7,804 (251) **

Income tax provision (benefit) 597 626 619 433 419 (5) 42 1,842 (59) **

Income (loss) from continuing operations, net of tax $ 1,931 $ 2,028 $ 2,003 $ 1,396 $ 1,348 (5) 43 $ 5,962 $ (192) **

Selected performance metrics:

Period-end loans held for investment^(2) $ 99,258 $ 95,309 $ 91,099 $ 98,504 $ 95,541 4 4 $ 99,258 $ 95,541 4

Average loans held for investment 96,309 91,535 92,594 95,453 97,306 5 (1) 93,493 103,980 (10)

Average yield on loans outstanding^(9) 14.80 % 13.91 % 14.34 % 14.07 % 13.57 % 89 bps 123 bps 14.36 % 13.82 % 54 bps

Total net revenue margin^(10) 18.40 17.66 17.15 16.91 16.22 74 218 17.74 15.46 228

Net charge-off rate 1.36 2.28 2.54 2.69 3.64 (92) (228) 2.05 4.31 (226)

30+ day performing delinquency rate 1.93 1.68 2.24 2.42 2.21 25 (28) 1.93 2.21 (28)

Purchase volume^(11) $ 126,057 $ 122,456 $ 99,960 $ 107,572 $ 98,107 3 % 28 % $ 348,472 $ 273,215 28 %

Refreshed FICO scores:^(12)

Greater than 660 71 % 72 % 70 % 69 % 69 % (1) 2 71 % 69 % 2

660 or below 29 28 30 31 31 1 (2) 29 31 (2)

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary-Consumer Banking Business

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs.

(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020 2020

Consumer Banking

Earnings:

Net interest income $ 2,159 $ 2,101 $ 2,030 $ 2,012 $ 1,904 3 % 13 % $ 6,290 $ 5,226 20 %

Non-interest income 127 144 141 136 107 (12) 19 412 330 25

Total net revenue 2,286 2,245 2,171 2,148 2,011 2 14 6,702 5,556 21

Provision (benefit) for credit losses (91) (306) (126) 60 (43) (70) 112 (523) 1,693 **

Non-interest expense 1,186 1,123 1,117 1,121 1,011 6 17 3,426 3,038 13

Income from continuing operations before income taxes 1,191 1,428 1,180 967 1,043 (17) 14 3,799 825 **

Income tax provision 282 337 278 230 247 (16) 14 897 195 **

Income from continuing operations, net of tax $ 909 $ 1,091 $ 902 $ 737 $ 796 (17) 14 $ 2,902 $ 630 **

Selected performance metrics:

Period-end loans held for investment $ 77,112 $ 74,759 $ 70,202 $ 68,888 $ 68,688 3 12 $ 77,112 $ 68,688 12

Average loans held for investment 75,996 72,705 69,234 68,808 67,822 5 12 72,669 65,457 11

Average yield on loans held for investment^(9) 7.78 % 7.99 % 8.16 % 8.28 % 8.36 % (21) bps (58) bps 7.97 % 8.41 % (44) bps

Auto loan originations $ 11,570 $ 12,959 $ 8,833 $ 7,371 $ 8,979 (11) % 29 % $ 33,362 $ 24,910 34 %

Period-end deposits 252,387 251,155 254,001 249,815 249,684 - 1 252,387 249,684 1

Average deposits 251,307 252,488 249,499 249,419 248,418 - 1 251,105 231,988 8

Average deposits interest rate 0.30 % 0.31 % 0.36 % 0.47 % 0.66 % (1) bps (36) bps 0.32 % 0.86 % (54) bps

Net charge-off (recovery) rate 0.27 (0.06) 0.52 0.53 0.28 33 (1) 0.24 0.99 (75)

30+ day performing delinquency rate 3.58 3.16 3.03 4.62 3.62 42 (4) 3.58 3.62 (4)

30+ day delinquency rate 3.88 3.40 3.25 5.00 3.90 48 (2) 3.88 3.90 (2)

Nonperforming loan rate^(5) 0.42 0.35 0.33 0.47 0.38 7 4 0.42 0.38 4

Nonperforming asset rate^(6) 0.47 0.40 0.39 0.54 0.43 7 4 0.47 0.43 4

Auto-At origination FICO scores:^(13)

Greater than 660 49 % 48 % 47 % 46 % 46 % 1 % 3 % 49 % 46 % 3 %

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

620 or below 31 32 33 34 34 (1) (3) 31 34 (3)

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary-Commercial Banking Business

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs.

(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020 2020

Commercial Banking

Earnings:

Net interest income $ 578 $ 460 $ 520 $ 522 $ 517 26 % 12 % $ 1,558 $ 1,526 2 %

Non-interest income 306 257 240 268 237 19 29 803 655 23

Total net revenue^(8) 884 717 760 790 754 23 17 2,361 2,181 8

Provision (benefit) for credit losses (53) (219) (203) (28) (74) (76) (28) (475) 1,209 **

Non-interest expense 459 417 419 445 424 10 8 1,295 1,261 3

Income (loss) from continuing operations before income taxes 478 519 544 373 404 (8) 18 1,541 (289) **

Income tax provision (benefit) 113 123 128 88 95 (8) 19 364 (69) **

Income (loss) from continuing operations, net of tax $ 365 $ 396 $ 416 $ 285 $ 309 (8) 18 $ 1,177 $ (220) **

Selected performance metrics:

Period-end loans held for investment^(4) $ 79,248 $ 73,821 $ 73,802 $ 75,780 $ 75,894 7 4 $ 79,248 $ 75,894 4

Average loans held for investment 75,059 74,084 74,169 75,320 76,322 1 (2) 74,441 77,503 (4)

Average yield on loans held for investment^(8)(9) 2.77 % 2.72 % 2.76 % 2.83 % 2.82 % 5 bps (5) bps 2.75 % 3.23 % (48) bps

Period-end deposits $ 43,347 $ 42,973 $ 41,552 $ 39,590 $ 36,783 1 % 18 % $ 43,347 $ 36,783 18 %

Average deposits 42,729 42,311 40,107 38,676 36,278 1 18 41,725 34,391 21

Average deposits interest rate 0.15 % 0.14 % 0.18 % 0.23 % 0.25 % 1 bps (10) bps 0.15 % 0.47 % (32) bps

Net charge-off (recovery) rate 0.05 (0.11) 0.09 0.45 0.43 16 (38) 0.01 0.50 (49)

Nonperforming loan rate^(5) 0.76 1.03 0.92 0.86 1.01 (27) (25) 0.76 1.01 (25)

Nonperforming asset rate^(6) 0.76 1.03 0.92 0.86 1.01 (27) (25) 0.76 1.01 (25)

Risk category:^(14)

Noncriticized $ 73,218 $ 67,481 $ 66,299 $ 67,964 $ 68,533 9 % 7 % $ 73,218 $ 68,533 7 %

Criticized performing 5,429 5,581 6,821 7,166 6,593 (3) (18) 5,429 6,593 (18)

Criticized nonperforming 601 759 682 650 768 (21) (22) 601 768 (22)

Total commercial banking loans $ 79,248 $ 73,821 $ 73,802 $ 75,780 $ 75,894 7 4 $ 79,248 $ 75,894 4

Risk category as a percentage of period-end loans held for investment:^(14)

Noncriticized 92.3 % 91.4 % 89.9 % 89.6 % 90.3 % 90 bps 200 bps 92.3 % 90.3 % 200 bps

Criticized performing 6.9 7.6 9.2 9.5 8.7 (70) (180) 6.9 8.7 (180)

Criticized nonperforming 0.8 1.0 0.9 0.9 1.0 (20) (20) 0.8 1.0 (20)

Total commercial banking loans 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary-Other and Total

2021 Q3 vs. Nine Months Ended September 30,

2021 2021 2021 2020 2020 2021 2020 2021 vs.

(Dollars in millions) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2021 2020 2020

Other

Earnings:

Net interest income (loss) $ (201) $ (35) $ (100) $ (74) $ (158) ** 27 % $ (336) $ (75) **

Non-interest income (loss) (22) (23) (119) 6 469 (4) % ** (164) 392 **

Total net revenue (loss)^(8) (223) (58) (219) (68) 311 ** ** (500) 317 **

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

Non-interest expense^(15) 117 163 69 132 110 (28) 6 349 568 (39) %

Income (loss) from continuing operations before income taxes (340) (221) (286) (201) 203 54 ** (847) (253) **

Income tax provision (benefit) (140) (101) (190) (276) 316 39 ** (431) (102) **

Income (loss) from continuing operations, net of tax $ (200) $ (120) $ (96) $ 75 $ (113) 67 77 $ (416) $ (151) 175

Selected performance metrics:

Period-end deposits $ 10,204 $ 12,180 $ 14,775 $ 16,037 $ 19,258 (16) (47) $ 10,204 $ 19,258 (47)

Average deposits 10,999 13,418 15,450 16,418 20,820 (18) (47) 13,272 19,863 (33)

Total

Earnings:

Net interest income $ 6,156 $ 5,743 $ 5,822 $ 5,873 $ 5,555 7 % 11 % $ 17,721 $ 17,040 4 %

Non-interest income 1,674 1,631 1,291 1,464 1,826 3 (8) 4,596 4,146 11

Total net revenue 7,830 7,374 7,113 7,337 7,381 6 6 22,317 21,186 5

Provision (benefit) for credit losses (342) (1,160) (823) 264 331 (71) ** (2,325) 10,000 **

Non-interest expense 4,186 3,966 3,740 4,009 3,548 6 18 11,892 11,047 8

Income from continuing operations before income taxes 3,986 4,568 4,196 3,064 3,502 (13) 14 12,750 139 **

Income tax provision (benefit) 882 1,031 869 496 1,096 (14) (20) 2,782 (10) **

Income from continuing operations, net of tax $ 3,104 $ 3,537 $ 3,327 $ 2,568 $ 2,406 (12) 29 $ 9,968 $ 149 **

Selected performance metrics:

Period-end loans held for investment $ 261,390 $ 249,597 $ 243,131 $ 251,624 $ 248,223 5 5 $ 261,390 $ 248,223 5

Average loans held for investment 253,101 246,463 243,937 247,689 249,511 3 1 247,867 255,232 (3)

Period-end deposits 305,938 306,308 310,328 305,442 305,725 - - 305,938 305,725 -

Average deposits 305,035 308,217 305,056 304,513 305,516 (1) - 306,102 286,242 7

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Net Interest Margin, Loan, Allowance and Business SegmentDisclosures (Tables 6-13)

Includes a catch-up in amortization expense related to prepayment activity^(1) on certain securities that reduced yield by 20 basis points for the three months ended September 30, 2021.

^(2) We reclassified $2.1 billion in partnership loans to held for sale as of September 30, 2020.

^(3) We reclassified $2.6 billion in international partnership loans to held for sale as of June 30, 2021.

^(4) We reclassified $1.5 billion in commercial loans to held for sale as of June 30, 2021.

Nonperforming loan rates are calculated based on nonperforming loans for^(5) each 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^(6) calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.

^(7) Primarily 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^(8) revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

Average yield is calculated based on annualized interest income for the^(9) period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing.

^ Total net revenue margin is calculated based on total net revenue for the(10) period divided by average loans outstanding during the period.

^ Purchase volume consists of purchase transactions, net of returns, for the(11) 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(12) origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.

Percentages represent period-end loans held for investment in each credit^ score category. Auto credit scores generally represent average FICO scores(13) obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.

^ Criticized exposures correspond to the "Special Mention," "Substandard"(14) and "Doubtful" asset categories defined by bank regulatory authorities.

^ Includes charges incurred as a result of restructuring activities.(15)

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

Basel III Standardized Approach

September 30, June 30, March 31, December 31, September 30,(Dollars in millions, except as noted) 2021 2021 2021 2020 2020

Regulatory Capital Metrics

Common equity excluding AOCI $ 58,705 $ 58,969 $ 57,607 $ 55,299 $ 52,839

Adjustments:

AOCI, net of tax^(2) (33) (5) (13) (29) (122)

Goodwill, net of related deferred tax liabilities (14,435) (14,440) (14,444) (14,448) (14,448)

Intangible assets, net of related deferred tax liabilities (84) (76) (81) (86) (95)

Other (15) (16) (18) - -

Common equity Tier 1 capital $ 44,138 $ 44,432 $ 43,051 $ 40,736 $ 38,174

Tier 1 capital $ 50,049 $ 50,920 $ 47,898 $ 45,583 $ 43,505

Total capital^(3) 57,851 57,932 54,780 52,788 50,955

Risk-weighted assets 318,727 307,334 295,209 297,903 293,852

Adjusted average assets^(4) 411,216 411,032 408,596 406,762 409,602

Capital Ratios

Common equity Tier 1 capital^(5) 13.8 % 14.5 % 14.6 % 13.7 % 13.0 %

Tier 1 capital^(6) 15.7 16.6 16.2 15.3 14.8

Total capital^(7) 18.2 18.8 18.6 17.7 17.3

Tier 1 leverage^(4) 12.2 12.4 11.7 11.2 10.6

Tangible common equity ("TCE")^(8) 10.4 10.6 10.1 10.0 9.4

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 resultsprovide alternatemeasurements of our operating performance, both for the current period andtrends across multiple periods. The following tables present reconciliations ofthese non-GAAP measures to the applicable amounts measured in accordance withGAAP.

2021 2020 Nine Months Ended September 30,

(Dollars in millions, except per share data and as noted) Q3 Q2 Q1 Q3 Q2 Q1 2021 2020

Adjusted diluted EPS:

Net income (loss) available to common stockholders (GAAP) $ 2,987 $ 3,446 $ 3,236 $ 2,319 $ (1,009) $ (1,420) $ 9,669 $ (91)

Legal reserve activity, including insurance recoveries 45 55 - 40 265 45 100 350

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

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

Adjusted net income (loss) available to common stockholders before 3,032 3,501 3,236 2,329 (733) (1,371) 9,769 244income tax impacts (non-GAAP)

Income tax impacts (11) (13) - (12) (3) (12) (24) (27)

Adjusted net income (loss) available to common stockholders (non- $ 3,021 $ 3,488 $ 3,236 $ 2,317 $ (736) $ (1,383) $ 9,745 $ 217GAAP)

Diluted weighted-average common shares outstanding (in millions) 440.5 452.3 460.1 458.5 456.7 457.6 450.9 457.4(GAAP)

Diluted EPS (GAAP) $ 6.78 $ 7.62 $ 7.03 $ 5.06 $ (2.21) $ (3.10) $ 21.44 $ (0.20)

Impact of adjustments noted above 0.08 0.09 - (0.01) 0.60 0.08 0.17 0.67

Adjusted diluted EPS (non-GAAP) $ 6.86 $ 7.71 $ 7.03 $ 5.05 $ (1.61) $ (3.02) $ 21.61 $ 0.47

Adjusted efficiency ratio:

Non-interest expense (GAAP) $ 4,186 $ 3,966 $ 3,740 $ 3,548 $ 3,770 $ 3,729 $ 11,892 $ 11,047

Legal reserve activity, including insurance recoveries (45) (55) - (40) (265) (45) (100) (350)

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

Adjusted non-interest expense (non-GAAP) $ 4,141 $ 3,911 $ 3,740 $ 3,502 $ 3,494 $ 3,680 $ 11,792 $ 10,676

Total net revenue (GAAP) $ 7,830 $ 7,374 $ 7,113 $ 7,381 $ 6,556 $ 7,249 $ 22,317 $ 21,186

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

Adjusted net revenue (non-GAAP) $ 7,830 $ 7,374 $ 7,113 $ 7,345 $ 6,556 $ 7,249 $ 22,317 $ 21,150

Efficiency ratio (GAAP) 53.46 % 53.78 % 52.58 % 48.07 % 57.50 % 51.44 % 53.29 % 52.14 %

Impact of adjustments noted above (57) bps (74) bps - bps (39) bps (421) bps (67) bps (45) bps (166) bps

Adjusted efficiency ratio (non-GAAP) 52.89 % 53.04 % 52.58 % 47.68 % 53.29 % 50.77 % 52.84 % 50.48 %

Adjusted operating efficiency ratio:

Operating expense (GAAP) $ 3,435 $ 3,346 $ 3,239 $ 3,265 $ 3,497 $ 3,238 $ 10,020 $ 10,000

Legal reserve activity, including insurance recoveries (45) (55) - (40) (265) (45) (100) (350)

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

Adjusted operating expense (non-GAAP) $ 3,390 $ 3,291 $ 3,239 $ 3,219 $ 3,221 $ 3,189 $ 9,920 $ 9,629

Total net revenue (GAAP) $ 7,830 $ 7,374 $ 7,113 $ 7,381 $ 6,556 $ 7,249 $ 22,317 $ 21,186

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

Adjusted net revenue (non-GAAP) $ 7,830 $ 7,374 $ 7,113 $ 7,345 $ 6,556 $ 7,249 $ 22,317 $ 21,150

Operating efficiency ratio (GAAP) 43.87 % 45.38 % 45.54 % 44.24 % 53.34 % 44.67 % 44.90 % 47.20 %

Impact of adjustments noted above (57) bps (75) bps - bps (41) bps (421) bps (68) bps (45) bps (167) bps

Adjusted operating efficiency ratio (non-GAAP) 43.30 % 44.63 % 45.54 % 43.83 % 49.13 % 43.99 % 44.45 % 45.53 %

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 average TCE and TCE ratio.We consider these metrics to be key financial performance measures thatmanagement uses in assessing capital adequacy and the level of returnsgenerated. While our non-GAAP measures are widely used by investors, analystsand bankregulatory agencies to assess the capital position of financial servicescompanies, they may not be comparable to similarly-titled measures reported byother companies. The following tables present reconciliations of these non-GAAPmeasuresto the applicable amounts measured in accordance with GAAP.

2021 2021 2021 2020 2020

(Dollars in millions) Q3 Q2 Q1 Q4 Q3

Tangible Common Equity (Period-End)

Stockholders' equity $ 63,544 $ 64,624 $ 61,188 $ 60,204 $ 58,424

Goodwill and intangible assets^(9) (14,766) (14,774) (14,789) (14,809) (14,825)

Noncumulative perpetual preferred stock (5,912) (6,488) (4,847) (4,847) (5,330)

Tangible common equity $ 42,866 $ 43,362 $ 41,552 $ 40,548 $ 38,269

Tangible Common Equity (Average)

Stockholders' equity $ 64,682 $ 62,376 $ 60,623 $ 59,389 $ 57,223

Goodwill and intangible assets^(9) (14,777) (14,788) (14,807) (14,824) (14,867)

Noncumulative perpetual preferred stock (6,452) (5,491) (4,847) (5,168) (5,228)

Tangible common equity $ 43,453 $ 42,097 $ 40,969 $ 39,397 $ 37,128

Tangible Assets (Period-End)

Total assets $ 425,377 $ 423,420 $ 425,175 $ 421,602 $ 421,883

Goodwill and intangible assets^(9) (14,766) (14,774) (14,789) (14,809) (14,825)

Tangible assets $ 410,611 $ 408,646 $ 410,386 $ 406,793 $ 407,058

Tangible Assets (Average)

Total assets $ 424,506 $ 424,099 $ 421,808 $ 420,011 $ 422,854

Goodwill and intangible assets^(9) (14,777) (14,788) (14,807) (14,824) (14,867)

Tangible assets $ 409,729 $ 409,311 $ 407,001 $ 405,187 $ 407,987

__________

^(1) Regulatory capital metrics and capital ratios as of September 30, 2021 are preliminary and therefore subject to change.

^(2) Excludes certain components of AOCI as permitted under the Tailoring Rules.

^(3) Total capital equals the sum of Tier 1 capital and Tier 2 capital.

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^(4) leverage

ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.

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

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

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

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

^(9) Includes impact of related deferred taxes.

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SOURCE Capital One Financial Corporation