PR Newswire | Jan 25, 2022 04:06PM EST

per share

01/25 15:05 CST

Capital One Reports Fourth Quarter 2021 Net Income of $2.4 billion, or $5.41 per shareFourth Quarter 2021 Net Income of $5.41 per share MCLEAN, Va., Jan. 25, 2022

MCLEAN, Va., Jan. 25, 2022 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2021 of $2.4 billion, or $5.41 per diluted common share, compared with net income of $3.1 billion, or $6.78 per diluted common share in the third quarter of 2021, and with net income of $2.6 billion, or $5.35 per diluted common share in the fourth quarter of 2020.

"In the fourth quarter, we posted strong growth with strikingly strong credit results, and we continued to return capital to our shareholders," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "As we enter 2022, we continue to see attractive opportunities to grow and build our franchise."

The quarter included the following notable item:

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

Legacy rewards program upgrade $ (92)$ (0.16)

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

Fourth Quarter 2021 Income Statement Summary:

* Total net revenue increased 4 percent to $8.1 billion. * Total non-interest expense increased 12 percent to $4.7 billion: * 33 percent increase in marketing. * 7 percent increase in operating expenses.

* Pre-provision earnings decreased 6 percent to $3.4 billion.(1) * Provision for credit losses increased $723 million to $381 million: * Net charge-offs of $527 million. * $145 million loan reserve release.

* Net interest margin of 6.60 percent, an increase of 25 basis points. * Efficiency ratio of 57.63 percent. * Operating efficiency ratio of 45.32 percent.

Fourth Quarter 2021 Balance Sheet Summary:

* Common equity Tier 1 capital ratio under Basel III Standardized Approach of 13.1 percent at December 31, 2021. * Period-end loans held for investment in the quarter increased $16.0 billion, or 6 percent, to $277.3 billion. * Credit Card period-end loans increased $9.7 billion, or 9 percent, to $114.8 billion. * Domestic Card period-end loans increased $9.5 billion, or 10 percent, to $108.7 billion.

* Consumer Banking period-end loans increased $534 million, or 1 percent, to $77.6 billion. * Auto period-end loans increased $1.1 billion, or 1 percent, to $75.8 billion.

* Commercial Banking period-end loans increased $5.7 billion, or 7 percent, to $84.9 billion.

* Average loans held for investment in the quarter increased $14.1 billion, or 6 percent, to $267.2 billion. * Credit Card average loans increased $6.5 billion, or 6 percent, to $108.6 billion. * Domestic Card average loans increased $6.4 billion, or 7 percent, to $102.7 billion.

* Consumer Banking average loans increased $1.4 billion, or 2 percent, to $77.4 billion. * Auto average loans increased $2.0 billion, or 3 percent, to $75.3 billion.

* Commercial Banking average loans increased $6.1 billion, or 8 percent, to $81.1 billion.

* Period-end total deposits increased $5.0 billion, or 2 percent, to $311.0 billion, while average deposits increased $2.2 billion, or 1 percent, to $307.3 billion. * Interest-bearing deposits rate paid decreased 1 basis point to 0.33 percent.

2021 Full Year Income Statement Summary:

* Total net revenue increased 7% to $30.4 billion. * Total non-interest expense increased 10 percent to $16.6 billion: * 78 percent increase in marketing. * 2 percent increase in operating expenses.

* Pre-provision earnings increased 3 percent to $13.9 billion(1). * Provision for credit losses decreased 119 percent to $1.9 billion: * Net interest margin of 6.21 percent, an increase of 15 basis points. * Efficiency ratio of 54.44 percent. * Efficiency ratio excluding adjusting items of 54.12 percent(2).

* Operating efficiency ratio of 45.01 percent. * Operating efficiency ratio excluding adjusting items of 44.68 percent(2).

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on January 25, 2022 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page (www.capitalone.com). Under "About," choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through February 8, 2022 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 $311.0 billion in deposits and $432.4 billion in total assets as of December 31, 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.

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(1) 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.

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(2) 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.

Exhibit 99.2



Capital One Financial Corporation

Financial Supplement^(1)(2)

Fourth 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 6

Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial 8 Statements (Tables 1-4)

Table 6: Average Balances, Net Interest Income and Net Interest Margin 9

Table 7: Loan Information and Performance Statistics 10

Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments 12 Activity

Business Segment Results

Table 9: Financial Summary-Business Segment Results 13

Table 10:Financial & Statistical Summary-Credit Card Business 14

Table 11:Financial & Statistical Summary-Consumer Banking Business 16

Table 12:Financial & Statistical Summary-Commercial Banking Business 17

Table 13:Financial & Statistical Summary-Other and Total 18

Other

Table 14:Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures 19 (Tables 6-13)

Table 15:Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP 20 Measures

__________

The information contained in this Financial Supplement is preliminary and^ based on data available at the time of the earnings presentation. Investors(1) should refer to our Annual Report on Form 10-K for the period ended December 31, 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 level of return generated.(2) 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 Q4 vs Year Ended December 31,

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

Income Statement

Net interest income $ 6,450$ 6,156$ 5,743$ 5,822$ 5,8735% 10% $ 24,171 $ 22,913 5%

Non-interest income 1,668 1,674 1,631 1,291 1,464 - 14 6,264 5,610 12

Total net revenue^(1) 8,118 7,830 7,374 7,113 7,337 4 11 30,435 28,523 7

Provision (benefit) for credit losses 381 (342) (1,160) (823) 264 ** 44 (1,944) 10,264 **

Non-interest expense:

Marketing 999 751 620 501 563 33 77 2,871 1,610 78

Operating expense 3,679 3,435 3,346 3,239 3,446 7 7 13,699 13,446 2

Total non-interest expense 4,678 4,186 3,966 3,740 4,009 12 17 16,570 15,056 10

Income from continuing operations before income taxes 3,059 3,986 4,568 4,196 3,064 (23) - 15,809 3,203 **

Income tax provision 633 882 1,031 869 496 (28) 28 3,415 486 **

Income from continuing operations, net of tax 2,426 3,104 3,537 3,327 2,568 (22) (6) 12,394 2,717 **

Income from discontinued operations, net of tax (1) - (1) (2) (2) ** (50)(4) (3) 33

Net income 2,425 3,104 3,536 3,325 2,566 (22) (5) 12,390 2,714 **

Dividends and undistributed earnings allocated to (21) (26) (30) (28) (19) (19) 11 (105) (20) ** participating securities^(2)

Preferred stock dividends (74) (79) (60) (61) (68) (6) 9 (274) (280) (2)

Issuance cost for redeemed preferred stock^(3) (34) (12) - - (17) 183 100 (46) (39) 18

Net income available to common stockholders $ 2,296$ 2,987$ 3,446$ 3,236$ 2,462(23) (7) $ 11,965 $ 2,375**

Common Share Statistics

Basic earnings per common share:^(2)

Net income from continuing operations $ 5.43$ 6.81$ 7.65$ 7.06$ 5.36(20)%1% $ 27.05$ 5.20**

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

Net income per basic common share $ 5.43$ 6.81$ 7.65$ 7.06$ 5.36(20) 1 $ 27.04$ 5.19**

Diluted earnings per common share:^(2)

Net income from continuing operations $ 5.41$ 6.78$ 7.62$ 7.03$ 5.35(20)%1% $ 26.95$ 5.19**

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

Net income per diluted common share $ 5.41$ 6.78$ 7.62$ 7.03$ 5.35(20) 1 $ 26.94$ 5.18**

Weighted-average common shares outstanding (in millions):

Basic 422.5 438.8 450.6 458.6 459.1 (4)% (8)%442.5 457.8 (3)%

Diluted 424.3 440.5 452.3 460.1 460.2 (4) (8) 444.2 458.9 (3)

Common shares outstanding (period-end, in millions) 413.9 430.4 446.1 456.8 459.0 (4) (10)413.9 459.0 (10)

Dividends declared and paid per common share $ 0.60$ 1.20$ 0.40$ 0.40$ 0.10(50) ** $ 2.60$ 1.00160

Tangible book value per common share (period-end)^(4) 99.74 99.60 97.20 90.96 88.34 - 13 99.74 88.34 13



2021 Q4 vs Year Ended December 31,

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

Balance Sheet (Period-End)

Loans held for investment $ 277,340 $ 261,390 $ 249,597 $ 243,131 $ 251,624 6% 10% $ 277,340 $ 251,624 10%

Interest-earning assets 397,341 387,208 387,295 392,485 388,917 3 2 397,341 388,917 2

Total assets 432,381 425,377 423,420 425,175 421,602 2 3 432,381 421,602 3

Interest-bearing deposits 272,937 269,134 271,314 276,325 274,300 1 - 272,937 274,300 -

Total deposits 310,980 305,938 306,308 310,328 305,442 2 2 310,980 305,442 2

Borrowings 43,086 37,501 36,343 38,450 40,539 15 6 43,086 40,539 6

Common equity 56,184 57,632 58,136 56,341 55,356 (3) 1 56,184 55,356 1

Total stockholders' equity 61,029 63,544 64,624 61,188 60,204 (4) 1 61,029 60,204 1

Balance Sheet (Average Balances)

Loans held for investment $ 267,159 $ 253,101 $ 246,463 $ 243,937 $ 247,689 6% 8% $ 252,730 $ 253,335 -

Interest-earning assets 390,868 387,766 390,129 388,572 388,252 1 1 389,336 378,362 3%

Total assets 427,845 424,506 424,099 421,808 420,011 1 2 424,521 411,187 3

Interest-bearing deposits 269,951 269,278 273,476 273,358 274,142 - (2) 271,500 263,279 3

Total deposits 307,272 305,035 308,217 305,056 304,513 1 1 306,397 290,835 5

Borrowings 39,943 37,464 37,054 39,911 40,662 7 (2) 38,590 46,588 (17)

Common equity 56,946 58,230 56,885 55,775 54,220 (2) 5 56,966 52,954 8

Total stockholders' equity 62,498 64,682 62,376 60,623 59,389 (3) 5 62,556 58,201 7

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics-Consolidated

2021 Year Ended Q4 vs December 31,

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

Performance Metrics

Net interest income growth (period over period) 5% 7% (1)% (1)% 6% ** ** 5% (2)% **

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

Total net revenue growth (period over period) 4 6 4 (3) (1) ** ** 7 - **

Total net revenue margin^(5) 8.31 8.08 7.56 7.32 7.56 23 bps 75 bps 7.82 7.54 28 bps

Net interest margin^(6) 6.60 6.35 5.89 5.99 6.05 25 55 6.21 6.06 15

Return on average assets 2.27 2.92 3.34 3.16 2.45 (65) (18) 2.92 0.66 226

Return on average tangible assets^(7) 2.35 3.03 3.46 3.27 2.54 (68) (19) 3.03 0.69 234

Return on average common equity^(8) 16.13 20.52 24.24 23.22 18.18 (4)% (205) 21.01 4.49 17%

Return on average tangible common equity^(9) 21.82 27.50 32.75 31.61 25.02 (6) (320) 28.39 6.24 22

Non-interest expense as a percentage 7.00 6.62 6.44 6.13 6.47 38 bps 53 6.56 5.94 62 bpsof average loans held for investment

Efficiency ratio^(10) 57.63 53.46 53.78 52.58 54.64 4% 299 54.44 52.79 165

Operating efficiency ratio^(11) 45.32 43.87 45.38 45.54 46.97 145 bps (165) 45.01 47.14 (213)

Effective income tax rate for continuing 20.7 22.1 22.6 20.7 16.2 (140) 5% 21.6 15.2 6%operations

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

Credit Quality Metrics

Allowance for credit losses $ 11,430 $ 11,573 $ 12,346 $ 14,017 $ 15,564 (1)% (27)% $ 11,430 $ 15,564 (27)%

Allowance coverage ratio 4.12% 4.43% 4.95% 5.77% 6.19% (31) bps (207) bps 4.12% 6.19% (207) bps

Net charge-offs $ 527 $ 426 $ 541 $ 740 $ 856 24% (38)% $ 2,234 $ 5,225 (57)%

Net charge-off rate^(12) 0.79% 0.67% 0.88% 1.21% 1.38% 12 bps (59) bps 0.88% 2.06% (118) bps

30+ day performing delinquency rate 2.25 1.97 1.75 1.82 2.41 28 (16) 2.25 2.41 (16)

30+ day delinquency rate 2.41 2.13 1.89 1.98 2.61 28 (20) 2.41 2.61 (20)

Capital Ratios^(13)

Common equity Tier 1 capital 13.1% 13.8% 14.5% 14.6% 13.7% (70) bps (60) bps 13.1% 13.7% (60) bps

Tier 1 capital 14.5 15.7 16.6 16.2 15.3 (120) (80) 14.5 15.3 (80)

Total capital 16.9 18.2 18.8 18.6 17.7 (130) (80) 16.9 17.7 (80)

Tier 1 leverage 11.6 12.2 12.4 11.7 11.2 (60) 40 11.6 11.2 40

Tangible common equity ("TCE")^(14) 9.9 10.4 10.6 10.1 10.0 (50) (10) 9.9 10.0 (10)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income



2021 Q4 vs Year Ended December 31,

2021 2021 2021 2021 2020 2021 2020 2021 vs

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

Interest income:

Loans, including loans held for sale $ 6,451 $ 6,205 $ 5,753 $ 5,854 $ 5,954 4% 8% $ 24,263$ 24,074 1%

Investment securities 368 317 370 391 422 16 (13)1,446 1,877 (23)

Other 12 16 16 16 15 (25) (20)60 82 (27)

Total interest income 6,831 6,538 6,139 6,261 6,391 4 7 25,769 26,033 (1)

Interest expense:

Deposits 222 228 237 269 347 (3) (36)956 2,165 (56)

Securitized debt obligations 30 29 28 32 34 3 (12)119 232 (49)

Senior and subordinated notes 121 116 122 129 128 4 (5) 488 679 (28)

Other borrowings 8 9 9 9 9 (11) (11)35 44 (20)

Total interest expense 381 382 396 439 518 - (26)1,598 3,120 (49)

Net interest income 6,450 6,156 5,743 5,822 5,873 5 10 24,171 22,913 5

Provision (benefit) for credit losses 381 (342) (1,160) (823) 264 ** 44 (1,944) 10,264 **

Net interest income after provision for credit losses 6,069 6,498 6,903 6,645 5,609 (7) 8 26,115 12,649 106

Non-interest income:

Interchange fees, net 1,005 1,022 1,016 817 818 (2) 23 3,860 3,017 28

Service charges and other customer-related fees 435 407 384 352 338 7 29 1,578 1,243 27

Net securities gains (4) 2 - 4 - ** ** 2 25 (92)

Other 232 243 231 118 308 (5) (25)824 1,325 (38)

Total non-interest income 1,668 1,674 1,631 1,291 1,464 - 14 6,264 5,610 12

Non-interest expense:

Salaries and associate benefits 1,941 1,852 1,781 1,847 1,755 5 11 7,421 6,805 9

Occupancy and equipment 527 481 523 472 572 10 (8) 2,003 2,118 (5)

Marketing 999 751 620 501 563 33 77 2,871 1,610 78

Professional services 449 358 341 292 394 25 14 1,440 1,312 10

Communications and data processing 326 319 315 302 295 2 11 1,262 1,215 4

Amortization of intangibles 13 5 5 6 8 160 63 29 60 (52)

Other 423 420 381 320 422 1 - 1,544 1,936 (20)

Total non-interest expense 4,678 4,186 3,966 3,740 4,009 12 17 16,570 15,056 10

Income from continuing operations before income taxes 3,059 3,986 4,568 4,196 3,064 (23) - 15,809 3,203 **

Income tax provision 633 882 1,031 869 496 (28) 28 3,415 486 **

Income from continuing operations, net of tax 2,426 3,104 3,537 3,327 2,568 (22) (6) 12,394 2,717 **

Income (loss) from discontinued operations, net of tax (1) - (1) (2) (2) ** (50)(4) (3) 33

Net income 2,425 3,104 3,536 3,325 2,566 (22) (5) 12,390 2,714 **

Dividends and undistributed earnings allocated to (21) (26) (30) (28) (19) (19) 11 (105) (20) 425 participating securities^(2)

Preferred stock dividends (74) (79) (60) (61) (68) (6) 9 (274) (280) (2)

Issuance cost for redeemed preferred stock^(3) (34) (12) - - (17) 183 100 (46) (39) 18

Net income (loss) available to common stockholders $ 2,296 $ 2,987 $ 3,446 $ 3,236 $ 2,462 (23) (7) $ 11,965$ 2,375 404





2021 Q4 vs Year Ended December 31,

2021 2021 2021 2021 2020 2021 2020 2021 vs

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

Basic earnings per common share:^(2)

Net income from continuing operations $ 5.43$ 6.81$ 7.65$ 7.06$ 5.36(20)%1% $ 27.05$ 5.20**

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

Net income per basic common share $ 5.43$ 6.81$ 7.65$ 7.06$ 5.36(20) 1 $ 27.04$ 5.19**

Diluted earnings per common share:^(2)

Net income from continuing operations $ 5.41$ 6.78$ 7.62$ 7.03$ 5.35(20) 1 $ 26.95$ 5.19**

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

Net income per diluted common share $ 5.41$ 6.78$ 7.62$ 7.03$ 5.35(20) 1 $ 26.94$ 5.18**

Weighted-average common shares outstanding (in millions):

Basic common shares 422.5 438.8 450.6 458.6 459.1 (4) (8) 442.5 457.8 (3)

Diluted common shares 424.3 440.5 452.3 460.1 460.2 (4) (8) 444.2 458.9 (3)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets



2021 Q4 vs

2021 2021 2021 2021 2020 2021 2020

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

Assets:

Cash and cash equivalents:

Cash and due from banks $ 4,164 $ 5,444 $ 5,312 $ 4,670 $ 4,708 (24)%(12)%

Interest-bearing deposits and other short-term investments17,582 21,180 29,534 45,825 35,801 (17) (51)

Total cash and cash equivalents 21,746 26,624 34,846 50,495 40,509 (18) (46)

Restricted cash for securitization investors 308 234 242 1,779 262 32 18

Securities available for sale 95,261 98,149 101,766 99,165 100,445 (3) (5)

Loans held for investment:

Unsecuritized loans held for investment 252,468 238,475 226,130 219,182 225,698 6 12

Loans held in consolidated trusts 24,872 22,915 23,467 23,949 25,926 9 (4)

Total loans held for investment 277,340 261,390 249,597 243,131 251,624 6 10

Allowance for credit losses (11,430) (11,573) (12,346) (14,017) (15,564) (1) (27)

Net loans held for investment 265,910 249,817 237,251 229,114 236,060 6 13

Loans held for sale 5,888 6,300 6,522 2,896 2,710 (7) 117

Premises and equipment, net 4,210 4,204 4,227 4,277 4,287 - (2)

Interest receivable 1,460 1,418 1,372 1,380 1,471 3 (1)

Goodwill 14,782 14,652 14,654 14,654 14,653 1 1

Other assets 22,816 23,979 22,540 21,415 21,205 (5) 8

Total assets $ 432,381 $ 425,377 $ 423,420 $ 425,175 $ 421,602 2 3



2021 Q4 vs

2021 2021 2021 2021 2020 2021 2020

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

Liabilities:

Interest payable $ 281$ 241$ 301$ 288$ 35217% (20)%

Deposits:

Non-interest-bearing deposits 38,043 36,804 34,994 34,003 31,142 3 22

Interest-bearing deposits 272,937 269,134 271,314 276,325 274,300 1 -

Total deposits 310,980 305,938 306,308 310,328 305,442 2 2

Securitized debt obligations 14,994 12,635 10,561 12,071 12,414 19 21

Other debt:

Federal funds purchased and securities 820 825 845 842 668 (1) 23 loaned or sold under agreements to repurchase

Senior and subordinated notes 27,219 23,983 24,878 25,467 27,382 13 (1)

Other borrowings 53 58 59 70 75 (9) (29)

Total other debt 28,092 24,866 25,782 26,379 28,125 13 -

Other liabilities 17,005 18,153 15,844 14,921 15,065 (6) 13

Total liabilities 371,352 361,833 358,796 363,987 361,398 3 3



Stockholders' equity:

Preferred stock 0 0 0 0 0 - -

Common stock 7 7 7 7 7 - -

Additional paid-in capital, net 34,112 35,051 35,472 33,671 33,480 (3) 2

Retained earnings 51,006 48,944 46,461 43,167 40,088 4 27

Accumulated other comprehensive income 374 1,360 1,792 1,783 3,494 (73) (89)

Treasury stock, at cost (24,470) (21,818) (19,108) (17,440) (16,865) 12 45

Total stockholders' equity 61,029 63,544 64,624 61,188 60,204 (4) 1

Total liabilities and stockholders' equity $ 432,381 $ 425,377 $ 423,420 $ 425,175 $ 421,602 2 3

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 $151 million in Q4 2021, $123 million in^(1) Q3 2021, $175 million in Q2 2021, $180 million in Q1 2021 and $177 million in Q4 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 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^(3) 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. On December 1, 2021, we redeemed all outstanding shares of our fixed rate 5.20% non-cumulative perpetual preferred stock Series G, and our fixed rate 6.00% non-cumulative perpetual preferred stock Series H, which together reduced our net income available to common shareholders by $34 million in Q4 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.

^(5) Total net revenue margin is calculated based on total net revenue for the period divided by average interest-earning assets for the period.

^(6) Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for^(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 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^(9) 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 Q4 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 Q4 2021 Q3 2020 Q4

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

Interest-earning assets:

Loans, including loans held for sale$ 272,805$ 6,451 9.46% $ 260,235$ 6,205 9.54%$ 251,135$ 5,954 9.48%

Investment securities 96,421 368 1.53 98,802 317 1.28 97,640 422 1.73

Cash equivalents and other 21,642 12 0.22 28,729 16 0.22 39,477 15 0.15

Total interest-earning assets $ 390,868$ 6,831 6.99 $ 387,766$ 6,538 6.74 $ 388,252$ 6,391 6.58

Interest-bearing liabilities:

Interest-bearing deposits $ 269,951$ 2220.33 $ 269,278$ 2280.34 $ 274,143$ 3470.51

Securitized debt obligations 13,775 30 0.87 12,420 29 0.93 12,651 34 1.08

Senior and subordinated notes 25,454 121 1.90 24,241 116 1.91 27,386 128 1.87

Other borrowings and liabilities 2,279 8 1.50 2,357 9 1.49 2,095 9 1.75

Total interest-bearing liabilities $ 311,459$ 3810.49 $ 308,296$ 3820.49 $ 316,275$ 5180.65

Net interest income/spread $ 6,450 6.50 $ 6,156 6.25 $ 5,873 5.93

Impact of non-interest-bearing funding 0.10 0.10 0.12

Net interest margin 6.60% 6.35% 6.05%



Year Ended December 31,

2021 2020

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

Interest-earning assets:

Loans, including loans held for sale $ 257,328$ 24,263 9.43%$ 254,901$ 24,074 9.44%

Investment securities 98,394 1,446 1.47 87,222 1,877 2.15

Cash equivalents and other 33,614 60 0.18 36,239 82 0.23

Total interest-earning assets $ 389,336$ 25,769 6.62 $ 378,362$ 26,033 6.88

Interest-bearing liabilities:

Interest-bearing deposits $ 271,500$ 9560.35 $ 263,279$ 2,165 0.82

Securitized debt obligations 12,336 119 0.96 15,533 232 1.49

Senior and subordinated notes 25,530 488 1.91 29,621 679 2.29

Other borrowings and liabilities 2,261 35 1.57 2,882 44 1.55

Total interest-bearing liabilities $ 311,627$ 1,598 0.51 $ 311,315$ 3,120 1.00

Net interest income/spread $ 24,171 6.11 $ 22,913 5.88

Impact of non-interest-bearing funding 0.10 0.18

Net interest margin 6.21% 6.06%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics



2021 Q4 vs. Year Ended December 31,

2021 2021 2021 2021 2020 2021 2020 2021 vs.

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

Loans Held for Investment (Period-End)

Credit card:

Domestic credit card^(1) $ 108,723$ 99,258$ 95,309$ 91,099$ 98,50410% 10% $ 108,723 $ 98,50410%

International card businesses^(2) 6,049 5,772 5,708 8,028 8,452 5 (28) 6,049 8,452 (28)

Total credit card 114,772 105,030 101,017 99,127 106,956 9 7 114,772 106,956 7

Consumer banking:

Auto 75,779 74,716 71,713 67,059 65,762 1 15 75,779 65,762 15

Retail banking 1,867 2,396 3,046 3,143 3,126 (22) (40) 1,867 3,126 (40)

Total consumer banking 77,646 77,112 74,759 70,202 68,888 1 13 77,646 68,888 13

Commercial banking:

Commercial and multifamily real estate 35,262 33,096 29,616 30,008 30,681 7 15 35,262 30,681 15

Commercial and industrial 49,660 46,152 44,205 43,794 45,099 8 10 49,660 45,099 10

Total commercial banking 84,922 79,248 73,821 73,802 75,780 7 12 84,922 75,780 12

Total loans held for investment $ 277,340$ 261,390 $ 249,597 $ 243,131 $ 251,624 6 10 $ 277,340 $ 251,624 10

Loans Held for Investment (Average)

Credit card:

Domestic credit card $ 102,717$ 96,309$ 91,535$ 92,594$ 95,4537% 8% $ 95,818$ 101,837 (6)%

International card businesses 5,871 5,737 8,139 7,940 8,108 2 (28) 6,913 8,245 (16)

Total credit card 108,588 102,046 99,674 100,534 103,561 6 5 102,731 110,082 (7)

Consumer banking:

Auto 75,284 73,296 69,543 66,185 65,590 3 15 71,108 63,227 12

Retail banking 2,160 2,700 3,162 3,049 3,218 (20) (33) 2,765 3,072 (10)

Total consumer banking 77,444 75,996 72,705 69,234 68,808 2 13 73,873 66,299 11

Commercial banking:

Commercial and multifamily real estate 33,591 30,314 30,124 29,856 30,825 11 9 30,980 31,135 -

Commercial and industrial 47,536 44,745 43,960 44,313 44,495 6 7 45,146 45,819 (1)

Total commercial banking 81,127 75,059 74,084 74,169 75,320 8 8 76,126 76,954 (1)

Total average loans held for investment $ 267,159$ 253,101 $ 246,463 $ 243,937 $ 247,689 6 8 $ 252,730 $ 253,335 -



2021 Q4 vs Year Ended December 31,

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

Net Charge-Off (Recovery) Rates

Credit card:

Domestic credit card 1.49% 1.36% 2.28% 2.54% 2.69% 13 bps (120) bps 1.90% 3.93% (203) bps

International card businesses 0.14 2.72 2.41 2.30 1.86 (258) (172) 1.96 3.26 (130)

Total credit card 1.42 1.43 2.29 2.52 2.63 (1) (121) 1.90 3.88 (198)

Consumer banking:

Auto 0.58 0.18 (0.12) 0.47 0.47 40 11 0.28 0.83 (55)

Retail banking 6.69 2.45 1.41 1.68 1.88 4% 5% 2.77 1.82 95

Total consumer banking 0.75 0.27 (0.06) 0.52 0.53 48 bps 22 bps 0.37 0.87 (50)

Commercial banking:

Commercial and multifamily real estate - 0.01 0.04 0.06 0.02 (1) (2) 0.03 0.13 (10)

Commercial and industrial (0.03) 0.07 (0.21) 0.11 0.74 (10) (77) (0.01) 0.73 (74)

Total commercial banking (0.02) 0.05 (0.11) 0.09 0.45 (7) (47) - 0.49 (49)

Total net charge-offs 0.79 0.67 0.88 1.21 1.38 12 (59) 0.88 2.06 (118)

30+ Day Performing Delinquency Rates

Credit card:

Domestic credit card 2.22% 1.93% 1.68% 2.24% 2.42% 29 bps (20) bps2.22% 2.42% (20) bps

International card businesses 3.42 3.27 2.89 2.51 2.61 15 81 3.42 2.61 81

Total credit card 2.28 2.00 1.75 2.26 2.44 28 (16) 2.28 2.44 (16)

Consumer banking:

Auto 4.32 3.65 3.26 3.12 4.78 67 (46) 4.32 4.78 (46)

Retail banking 1.92 1.15 0.79 1.02 1.32 77 60 1.92 1.32 60

Total consumer banking 4.26 3.58 3.16 3.03 4.62 68 (36) 4.26 4.62 (36)

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

Credit card:

International card businesses 0.16% 0.16% 0.20% 0.17% 0.24% - (8) bps0.16% 0.24% (8) bps

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

Consumer banking:

Auto 0.45 0.36 0.29 0.29 0.45 9 bps- 0.45 0.45 -

Retail banking 2.51 2.20 1.75 1.16 0.96 31 155 2.51 0.96 155

Total consumer banking 0.50 0.42 0.35 0.33 0.47 8 3 0.50 0.47 3

Commercial banking:

Commercial and multifamily real estate 1.09 0.87 1.02 0.78 0.65 22 44 1.09 0.65 44

Commercial and industrial 0.64 0.68 1.03 1.02 1.00 (4) (36) 0.64 1.00 (36)

Total commercial banking 0.82 0.76 1.03 0.92 0.86 6 (4) 0.82 0.86 (4)

Total nonperforming loans 0.40 0.35 0.41 0.38 0.40 5 - 0.40 0.40 -

Total nonperforming assets 0.41 0.37 0.43 0.40 0.41 4 - 0.41 0.41 -

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



Three Months Ended December 31, 2021

Credit Card Consumer Banking

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

Allowance for credit losses:

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

Charge-offs (702) (84) (786) (305) (40) (345) (1) (1,132)

Recoveries 318 82 400 195 5 200 5 605

Net charge-offs (384) (2) (386) (110) (35) (145) 4 (527)

Provision (benefit) for credit losses 384 39 423 (26) 28 2 (43) 382

Allowance build (release) for credit losses - 37 37 (136) (7) (143) (39) (145)

Other changes^(5) - 2 2 - - - - 2

Balance as of December 31, 2021 7,968 377 8,345 1,852 66 1,918 1,167 11,430

Reserve for unfunded lending commitments:

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

Provision (benefit) for losses on unfunded lending commitments- - - - - - (1) (1)

Balance as of December 31, 2021 - - - - - - 165 165

Combined allowance and reserve as of December 31, 2021 $ 7,968$ 377$ 8,345$ 1,852$ 66$ 1,918$ 1,332$ 11,595



Year Ended December 31, 2021

Credit Card Consumer Banking

(Dollars in millions) Domestic Card International Total Credit Auto Retail Banking Total Consumer Commercial Total Card Businesses Card Banking 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 (3,138) (343) (3,481) (1,118) (93) (1,211) (48) (4,740)

Recoveries 1,318 207 1,525 918 17 935 46 2,506

Net charge-offs (1,820) (136) (1,956) (200) (76) (276) (2) (2,234)

Provision (benefit) for credit losses (868) (34) (902) (563) 42 (521) (489) (1,912)

Allowance build (release) for credit losses (2,688) (170) (2,858) (763) (34) (797) (491) (4,146)

Other changes^(5) 6 6 12 - - - - 12

Balance as of December 31, 2021 7,968 377 8,345 1,852 66 1,918 1,167 11,430

Reserve for unfunded lending commitments:

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

Provision (benefit) for losses on unfunded lending commitments- - - - - - (30) (30)

Balance as of December 31, 2021 - - - - - - 165 165

Combined allowance and reserve as of December 31, 2021 $ 7,968$ 377$ 8,345$ 1,852$ 66$ 1,918$ 1,332$ 11,595

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary-Business Segment Results



Three Months Ended December 31, 2021 Year Ended December 31, 2021

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

Net interest income (loss) $ 3,865$ 2,158 $ 595 $ (168) $ 6,450$ 14,074$ 8,448$ 2,153 $ (504) $ 24,171

Non-interest income (loss) 1,261 142 345 (80) 1,668 4,806 554 1,148 (244) 6,264

Total net revenue (loss) 5,126 2,300 940 (248) 8,118 18,880 9,002 3,301 (748) 30,435

Provision (benefit) for credit losses 423 2 (44) - 381 (902) (521) (519) (2) (1,944)

Non-interest expense 2,799 1,285 520 74 4,678 9,621 4,711 1,815 423 16,570

Income (loss) from continuing operations before 1,904 1,013 464 (322) 3,059 10,161 4,812 2,005 (1,169) 15,809 income taxes

Income tax provision (benefit) 451 239 109 (166) 633 2,403 1,136 473 (597) 3,415

Income (loss) from continuing operations, net of tax$ 1,453$ 774$ 355 $ (156) $ 2,426$ 7,758$ 3,676$ 1,532 $ (572) $ 12,394



Three Months Ended September 30, 2021

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

Net interest income (loss) $ 3,620$ 2,159 $ 578 $ (201) $ 6,156

Non-interest income (loss) 1,263 127 306 (22) 1,674

Total net revenue (loss) 4,883 2,286 884 (223) 7,830

Provision (benefit) for credit losses (198) (91) (53) - (342)

Non-interest expense 2,424 1,186 459 117 4,186

Income (loss) from continuing operations before 2,657 1,191 478 (340) 3,986 income taxes

Income tax provision (benefit) 627 282 113 (140) 882

Income (loss) from continuing operations, net of tax$ 2,030$ 909$ 365 $ (200) $ 3,104



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

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

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

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

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

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

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

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

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

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary-Credit Card Business



2021 Q4 vs Year Ended December 31,

2021 2021 2021 2021 2020 2021 2020 2021 vs

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

Credit Card

Earnings:

Net interest income $ 3,865$ 3,620 $ 3,217 $ 3,372 $ 3,413 7% 13% $ 14,074 $ 13,776 2%

Non-interest income 1,261 1,263 1,253 1,029 1,054 - 20 4,806 3,823 26

Total net revenue 5,126 4,883 4,470 4,401 4,467 5 15 18,880 17,599 7

Provision (benefit) for credit losses 423 (198) (635) (492) 231 ** 83 (902) 7,327 **

Non-interest expense 2,799 2,424 2,263 2,135 2,311 15 21 9,621 8,491 13

Income from continuing operations before income taxes1,904 2,657 2,842 2,758 1,925 (28) (1) 10,161 1,781 **

Income tax provision 451 627 672 653 454 (28) (1) 2,403 420 **

Income from continuing operations, net of tax $ 1,453$ 2,030 $ 2,170 $ 2,105 $ 1,471 (28) (1) $ 7,758$ 1,361 **

Selected performance metrics:

Period-end loans held for investment^(1)(2) $ 114,772 $ 105,030$ 101,017$ 99,127 $ 106,9569 7 $ 114,772 $ 106,9567

Average loans held for investment 108,588 102,046 99,674 100,534 103,561 6 5 102,731 110,082 (7)

Average yield on loans outstanding^(7) 14.94% 14.88% 14.04% 14.49% 14.24% 6 bps 70 bps14.60% 14.08% 52 bps

Total net revenue margin^(8) 18.11 18.33 17.59 17.17 16.92 (22) 119 17.81 15.91 190

Net charge-off rate 1.42 1.43 2.29 2.52 2.63 (1) (121) 1.90 3.88 (198)

30+ day performing delinquency rate 2.28 2.00 1.75 2.26 2.44 28 (16) 2.28 2.44 (16)

30+ day delinquency rate 2.29 2.00 1.75 2.27 2.45 29 (16) 2.29 2.45 (16)

Nonperforming loan rate^(3) 0.01 0.01 0.01 0.01 0.02 - (1) 0.01 0.02 (1)

Purchase volume^(9) $ 149,982 $ 136,614$ 132,676$ 108,333$ 117,14110% 28% $ 527,605 $ 414,31227%

2021 Q4 vs Year Ended December 31,

2021 2021 2021 2021 2020 2021 2020 2021 vs

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

Domestic Card

Earnings:

Net interest income $ 3,558$ 3,319 $ 2,944 $ 3,095 $ 3,129 7% 14% $ 12,916 $ 12,599 3%

Non-interest income 1,190 1,200 1,183 959 994 (1) 20 4,532 3,583 26

Total net revenue 4,748 4,519 4,127 4,054 4,123 5 15 17,448 16,182 8

Provision (benefit) for credit losses 384 (200) (561) (491) 231 ** 66 (868) 6,979 **

Non-interest expense 2,564 2,191 2,034 1,923 2,063 17 24 8,712 7,625 14

Income from continuing operations before income taxes1,800 2,528 2,654 2,622 1,829 (29) (2) 9,604 1,578 **

Income tax provision 424 597 626 619 433 (29) (2) 2,266 374 **

Income from continuing operations, net of tax $ 1,376$ 1,931 $ 2,028 $ 2,003 $ 1,396 (29) (1) $ 7,338$ 1,204 **

Selected performance metrics:

Period-end loans held for investment^(1) $ 108,723 $ 99,258 $ 95,309 $ 91,099 $ 98,504 10 10 $ 108,723 $ 98,504 10

Average loans held for investment 102,717 96,309 91,535 92,594 95,453 7 8 95,818 101,837 (6)

Average yield on loans outstanding^(7) 14.86% 14.80% 13.91% 14.34% 14.07% 6 bps 79 bps14.49% 13.88% 61 bps

Total net revenue margin^(8) 18.14 18.40 17.66 17.15 16.91 (26) 123 17.85 15.80 205

Net charge-off rate 1.49 1.36 2.28 2.54 2.69 13 (120) 1.90 3.93 (203)

30+ day performing delinquency rate 2.22 1.93 1.68 2.24 2.42 29 (20) 2.22 2.42 (20)

Purchase volume^(9) $ 138,825 $ 126,057$ 122,456$ 99,960 $ 107,57210% 29% $ 487,297 $ 380,78728%

Refreshed FICO scores:^(10)

Greater than 660 71% 71% 72% 70% 69% - 2 71% 69% 2

660 or below 29 29 28 30 31 - (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 Q4 vs Year Ended December 31,

2021 2021 2021 2021 2020 2021 2020 2021 vs

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

Consumer Banking

Earnings:

Net interest income $ 2,158 $ 2,159 $ 2,101$ 2,030 $ 2,012 - 7% $ 8,448$ 7,23817%

Non-interest income 142 127 144 141 136 12% 4 554 466 19

Total net revenue 2,300 2,286 2,245 2,171 2,148 1 7 9,002 7,704 17

Provision (benefit) for credit losses 2 (91) (306) (126) 60 ** (97) (521) 1,753 **

Non-interest expense 1,285 1,186 1,123 1,117 1,121 8 15 4,711 4,159 13

Income from continuing operations before income taxes1,013 1,191 1,428 1,180 967 (15) 5 4,812 1,792 169

Income tax provision 239 282 337 278 230 (15) 4 1,136 425 167

Income from continuing operations, net of tax $ 774$ 909$ 1,091$ 902$ 737(15) 5 $ 3,676$ 1,367169

Selected performance metrics:

Period-end loans held for investment $ 77,646 $ 77,112 $ 74,759 $ 70,202 $ 68,888 1 13 $ 77,646$ 68,888 13

Average loans held for investment 77,444 75,996 72,705 69,234 68,808 2 13 73,873 66,299 11

Average yield on loans held for investment^(7) 7.55% 7.78% 7.99% 8.16% 8.28% (23) bps (73) bps7.86% 8.37% (51) bps

Auto loan originations $ 9,721 $ 11,570 $ 12,959 $ 8,833 $ 7,371 (16)% 32% $ 43,083$ 32,282 33%

Period-end deposits 256,407 252,387 251,155 254,001 249,815 2 3 256,407 249,815 3

Average deposits 253,372 251,307 252,488 249,499 249,419 1 2 251,676 236,369 6

Average deposits interest rate 0.30% 0.30% 0.31% 0.36% 0.47% - (17) bps0.32% 0.76% (44) bps

Net charge-off (recovery) rate 0.75 0.27 (0.06) 0.52 0.53 48 bps22 0.37 0.87 (50)

30+ day performing delinquency rate 4.26 3.58 3.16 3.03 4.62 68 (36) 4.26 4.62 (36)

30+ day delinquency rate 4.66 3.88 3.40 3.25 5.00 78 (34) 4.66 5.00 (34)

Nonperforming loan rate^(3) 0.50 0.42 0.35 0.33 0.47 8 3 0.50 0.47 3

Nonperforming asset rate^(4) 0.56 0.47 0.40 0.39 0.54 9 2 0.56 0.54 2

Auto-At origination FICO scores:^(11)

Greater than 660 50% 49% 48% 47% 46% 1% 4% 50% 46% 4%

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

620 or below 30 31 32 33 34 (1) (4) 30 34 (4)

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



CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary-Commercial Banking Business



2021 Q4 vs Year Ended December 31,

2021 2021 2021 2021 2020 2021 2020 2021 vs

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

Commercial Banking

Earnings:

Net interest income $ 595$ 578$ 460$ 520$ 5223% 14% $ 2,153$ 2,048 5

Non-interest income 345 306 257 240 268 13 29 1,148 923 24

Total net revenue^(6) 940 884 717 760 790 6 19 3,301 2,971 11

Provision (benefit) for credit losses (44) (53) (219) (203) (28) (17) 57 (519) 1,181 **

Non-interest expense 520 459 417 419 445 13 17 1,815 1,706 6

Income from continuing operations before income taxes 464 478 519 544 373 (3) 24 2,005 84 **

Income tax provision 109 113 123 128 88 (4) 24 473 19 **

Income from continuing operations, net of tax $ 355$ 365$ 396$ 416$ 285(3) 25 $ 1,532$ 65**

Selected performance metrics:

Period-end loans held for investment $ 84,922 $ 79,248 $ 73,821 $ 73,802 $ 75,780 7 12 $ 84,922$ 75,780 12

Average loans held for investment 81,127 75,059 74,084 74,169 75,320 8 8 76,126 76,954 (1)

Average yield on loans held for investment^(6)(7) 2.71% 2.77% 2.72% 2.76% 2.83% (6) bps (12) bps 2.74% 3.13% (39) bps

Period-end deposits $ 44,809 $ 43,347 $ 42,973 $ 41,552 $ 39,590 3% 13% $ 44,809$ 39,590 13%

Average deposits 44,206 42,729 42,311 40,107 38,676 3 14 42,350 35,468 19

Average deposits interest rate 0.12% 0.15% 0.14% 0.18% 0.23% (3) bps (11) bps0.14% 0.40% (26) bps

Net charge-off (recovery) rate (0.02) 0.05 (0.11) 0.09 0.45 ** ** - 0.49 **

Nonperforming loan rate^(3) 0.82 0.76 1.03 0.92 0.86 6 (4) 0.82 0.86 (4)

Nonperforming asset rate^(4) 0.82 0.76 1.03 0.92 0.86 6 (4) 0.82 0.86 (4)

Risk category:^(12)

Noncriticized $ 79,014 $ 73,218 $ 67,481 $ 66,299 $ 67,964 8% 16% $ 79,014$ 67,964 16%

Criticized performing 5,209 5,429 5,581 6,821 7,166 (4) (27) 5,209 7,166 (27)

Criticized nonperforming 699 601 759 682 650 16 8 699 650 8

Total commercial banking loans $ 84,922 $ 79,248 $ 73,821 $ 73,802 $ 75,780 7 12 $ 84,922$ 75,780 12

Risk category as a percentage of period-end loans held for investment:^(12)

Noncriticized 93.1% 92.3% 91.4% 89.9% 89.6% 80 bps 350 bps 93.1% 89.6% 350 bps

Criticized performing 6.1 6.9 7.6 9.2 9.5 (80) (340) 6.1 9.5 (340)

Criticized nonperforming 0.8 0.8 1.0 0.9 0.9 - (10) 0.8 0.9 (10)

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary-Other and Total



2021 Q4 vs Year Ended December 31,

2021 2021 2021 2021 2020 2021 2020 2021 vs

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

Other

Earnings:

Net interest loss $ (168)$ (201)$ (35)$ (100) $ (74)(16)%127%$ (504)$ (149) **

Non-interest income (loss) (80) (22) (23) (119) 6 ** ** (244) 398 **

Total net revenue (loss)^(6) (248) (223) (58) (219) (68) 11 ** (748) 249 **

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

Non-interest expense^(13) 74 117 163 69 132 (37) (44)423 700 (40)%

Loss from continuing operations before income taxes (322) (340) (221) (286) (201) (5) 60 (1,169) (454) 157

Income tax benefit (166) (140) (101) (190) (276) 19 (40)(597) (378) 58

Income (loss) from continuing operations, net of tax $ (156)$ (200)$ (120) $ (96)$ 75 (22) ** $ (572)$ (76)**

Selected performance metrics:

Period-end deposits $ 9,764 $ 10,204 $ 12,180 $ 14,775 $ 16,037 (4) (39)$ 9,764 $ 16,037 (39)

Average deposits 9,694 10,999 13,418 15,450 16,418 (12) (41)12,371 18,998 (35)

Total

Earnings:

Net interest income $ 6,450 $ 6,156 $ 5,743 $ 5,822 $ 5,873 5% 10% $ 24,171 $ 22,913 5%

Non-interest income 1,668 1,674 1,631 1,291 1,464 - 14 6,264 5,610 12

Total net revenue 8,118 7,830 7,374 7,113 7,337 4 11 30,435 28,523 7

Provision (benefit) for credit losses 381 (342) (1,160) (823) 264 ** 44 (1,944) 10,264 **

Non-interest expense 4,678 4,186 3,966 3,740 4,009 12 17 16,570 15,056 10

Income from continuing operations before income taxes3,059 3,986 4,568 4,196 3,064 (23) - 15,809 3,203 **

Income tax provision 633 882 1,031 869 496 (28) 28 3,415 486 **

Income from continuing operations, net of tax $ 2,426 $ 3,104 $ 3,537 $ 3,327 $ 2,568 (22) (6) $ 12,394 $ 2,717 **

Selected performance metrics:

Period-end loans held for investment $ 277,340 $ 261,390 $ 249,597 $ 243,131 $ 251,624 6 10 $ 277,340 $ 251,624 10

Average loans held for investment 267,159 253,101 246,463 243,937 247,689 6 8 252,730 253,335 -

Period-end deposits 310,980 305,938 306,308 310,328 305,442 2 2 310,980 305,442 2

Average deposits 307,272 305,035 308,217 305,056 304,513 1 1 306,397 290,835 5

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

^(1) We reclassified $2.1 billion in partnership loans to held for sale as of September 30, 2020.

^(2) We reclassified $2.6 billion in international partnership loans to held for sale as of June 30, 2021.

Nonperforming loan rates are calculated based on nonperforming loans for^(3) 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^(4) calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.

^(5) 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^(6) 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^(7) 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 annualized total net^(8) revenue for the period divided by average loans outstanding during the period.

^(9) Purchase volume consists of purchase transactions, net of returns, for the 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(10) 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(11) 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"(12) and "Doubtful" asset categories defined by bank regulatory authorities.

^ Includes charges incurred as a result of restructuring activities.(13)

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



Basel III Standardized Approach

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

Regulatory Capital Metrics

Common equity excluding AOCI $ 58,206$ 58,705$ 58,969$ 57,607$ 55,299

Adjustments:

AOCI, net of tax^(2) (23) (33) (5) (13) (29)

Goodwill, net of related deferred tax liabilities (14,562) (14,435) (14,440) (14,444) (14,448)

Intangible assets, net of related deferred tax liabilities(108) (84) (76) (81) (86)

Other (12) (15) (16) (18) -

Common equity Tier 1 capital $ 43,501$ 44,138$ 44,432$ 43,051$ 40,736

Tier 1 capital $ 48,346$ 50,049$ 50,920$ 47,898$ 45,583

Total capital^(3) 56,089 57,851 57,932 54,780 52,788

Risk-weighted assets 332,684 318,729 307,334 295,209 297,903

Adjusted average assets^(4) 415,141 411,216 411,032 408,596 406,762

Capital Ratios

Common equity Tier 1 capital^(5) 13.1% 13.8% 14.5% 14.6% 13.7%

Tier 1 capital^(6) 14.5 15.7 16.6 16.2 15.3

Total capital^(7) 16.9 18.2 18.8 18.6 17.7

Tier 1 leverage^(4) 11.6 12.2 12.4 11.7 11.2

Tangible common equity ("TCE")^(8) 9.9 10.4 10.6 10.1 10.0





Reconciliation of Non-GAAP Measures



The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP



2021 2020 Year Ended December 31,

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

Adjusted diluted EPS:

Net income (loss) available to $ 2,296 $ 2,987 $ 3,446 $ 3,236 $ 2,462 $ 2,319 $ (1,009) $ (1,420) $ 11,965 $ 2,375 common stockholders (GAAP)

Legal reserve activity, including insurance recoveries- 45 55 - (37) 40 265 45 100 313

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

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

Adjusted net income (loss) available to common stockholders2,296 3,032 3,501 3,236 2,431 2,329 (733) (1,371) 12,065 2,679 before income tax impacts (non-GAAP)

Income tax impacts - (11) (13) - 5 (12) (3) (12) (24) (22)

Dividends and undistributed earnings allocated to - - - - - - - - - (2) participating securities^(10)

Adjusted net income (loss) available to $ 2,296 $ 3,021 $ 3,488 $ 3,236 $ 2,436 $ 2,317 $ (736) $ (1,383) $ 12,041 $ 2,655 common stockholders (non-GAAP)



Diluted weighted-average common shares 424.3 440.5 452.3 460.1 460.2 458.5 456.7 457.6 444.2 458.9 outstanding (in millions) (GAAP)



Diluted EPS (GAAP) $ 5.41$ 6.78 $ 7.62 $ 7.03 $ 5.35 $ 5.06 $ (2.21) $ (3.10)$ 26.94 $ 5.18

Impact of adjustments noted above - 0.08 0.09 - (0.06) (0.01) 0.60 0.08 0.17 0.61

Adjusted diluted EPS (non-GAAP) $ 5.41$ 6.86 $ 7.71 $ 7.03 $ 5.29 $ 5.05 $ (1.61) $ (3.02)$ 27.11 $ 5.79



Adjusted efficiency ratio:

Non-interest expense (GAAP) $ 4,678 $ 4,186 $ 3,966 $ 3,740 $ 4,009 $ 3,548 $ 3,770 $ 3,729$ 16,570 $ 15,056

Legal reserve activity, including insurance - (45) (55) - 37 (40) (265) (45) (100) (313) recoveries

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

Adjusted non-interest expense (non-GAAP) $ 4,678 $ 4,141 $ 3,911 $ 3,740 $ 4,040 $ 3,502 $ 3,494 $ 3,680$ 16,470 $ 14,716



Total net revenue (GAAP) $ 8,118 $ 7,830 $ 7,374 $ 7,113 $ 7,337 $ 7,381 $ 6,556 $ 7,249$ 30,435 $ 28,523

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

Adjusted net revenue (non-GAAP) $ 8,118 $ 7,830 $ 7,374 $ 7,113 $ 7,337 $ 7,345 $ 6,556 $ 7,249$ 30,435 $ 28,487



Efficiency ratio (GAAP) 57.63% 53.46% 53.78% 52.58% 54.64% 48.07% 57.50% 51.44% 54.44% 52.79%

Impact of adjustments noted above - bps (57) bps (74) bps - bps 42 bps (39) bps (421) bps (67)bps (32) bps (113) bps

Adjusted efficiency ratio (non-GAAP) 57.63% 52.89% 53.04% 52.58% 55.06% 47.68% 53.29% 50.77% 54.12% 51.66%



Adjusted operating efficiency ratio:

Operating expense (GAAP) $ 3,679 $ 3,435 $ 3,346 $ 3,239 $ 3,446 $ 3,265 $ 3,497 $ 3,238$ 13,699 $ 13,446

Legal reserve activity, including - (45) (55) - 37 (40) (265) (45) (100) (313) insurance recoveries

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

Adjusted operating expense (non-GAAP) $ 3,679 $ 3,390 $ 3,291 $ 3,239 $ 3,477 $ 3,219 $ 3,221 $ 3,189$ 13,599 $ 13,106



Total net revenue (GAAP) $ 8,118 $ 7,830 $ 7,374 $ 7,113 $ 7,337 $ 7,381 $ 6,556 $ 7,249$ 30,435 $ 28,523

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

Adjusted net revenue (non-GAAP) $ 8,118 $ 7,830 $ 7,374 $ 7,113 $ 7,337 $ 7,345 $ 6,556 $ 7,249$ 30,435 $ 28,487



Operating efficiency ratio (GAAP) 45.32% 43.87% 45.38% 45.54% 46.97% 44.24 % 53.34% 44.67% 45.01% 47.14%

Impact of adjustments noted above - bps (57) bps (75) bps - bps 42 bps (41) bps (421) bps(68)bps (33) bps (113) bps

Adjusted operating efficiency ratio 45.32% 43.30% 44.63% 45.54% 47.39% 43.83% 49.13% 43.99% 44.68% 46.01% (non-GAAP)





Reconciliation of Non-GAAP Measures



The following non-GAAP measures consist of TCE, tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. We consider these metrics to be key financial performance measures that management uses in assessing capital adequacy and the level of returns generated. While our non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP



2021 2021 2021 2021 2020

(Dollars in millions) Q4 Q3 Q2 Q1 Q4

Tangible Common Equity (Period-End)

Stockholders' equity $ 61,029$ 63,544$ 64,624$ 61,188 $ 60,204

Goodwill and intangible assets^(9) (14,907) (14,766) (14,774) (14,789) (14,809)

Noncumulative perpetual preferred stock(4,845) (5,912) (6,488) (4,847) (4,847)

Tangible common equity $ 41,277$ 42,866$ 43,362$ 41,552 $ 40,548

Tangible Common Equity (Average)

Stockholders' equity $ 62,498$ 64,682$ 62,376$ 60,623 $ 59,389

Goodwill and intangible assets^(9) (14,847) (14,777) (14,788) (14,807) (14,824)

Noncumulative perpetual preferred stock(5,552) (6,452) (5,491) (4,847) (5,168)

Tangible common equity $ 42,099$ 43,453$ 42,097$ 40,969 $ 39,397

Tangible Assets (Period-End)

Total assets $ 432,381 $ 425,377 $ 423,420 $ 425,175 $ 421,602

Goodwill and intangible assets^(9) (14,907) (14,766) (14,774) (14,789) (14,809)

Tangible assets $ 417,474 $ 410,611 $ 408,646 $ 410,386 $ 406,793

Tangible Assets (Average)

Total assets $ 427,845 $ 424,506 $ 424,099 $ 421,808 $ 420,011

Goodwill and intangible assets^(9) (14,847) (14,777) (14,788) (14,807) (14,824)

Tangible assets $ 412,998 $ 409,729 $ 409,311 $ 407,001 $ 405,187

__________

^(1) Regulatory capital metrics and capital ratios as of December 31, 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^(4) 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.

Common equity Tier 1 capital ratio is a regulatory capital measure^(5) 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.

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

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SOURCE Capital One Financial Corporation