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Capital One Reports First Quarter 2013 Net Income of $1.1 billion, or $1.79 per share



 Capital One Reports First Quarter 2013 Net Income of $1.1 billion, or $1.79
                                  per share

PR Newswire

MCLEAN, Va., April 18, 2013

 

MCLEAN, Va., April 18, 2013 /PRNewswire/ -- Capital One Financial Corporation
(NYSE: COF) today announced net income for the first quarter of 2013 of $1.1
billion, or $1.79 per diluted common share, compared with net income of $843
million, or $1.41 per diluted common share, for the fourth quarter of 2012 and
net income of $1.4 billion, or $2.72 per diluted common share, for the first
quarter of 2012. Without the impact of a bargain purchase gain related to the
ING Direct acquisition, first quarter 2012 net income would have been $809
million, or $1.56 per diluted common share.

"Each of our businesses delivered solid results in the quarter and our balance
sheet is strong," said Richard D. Fairbank, Chairman and Chief Executive
Officer. "We continue to generate significant capital and we're focused on
returning capital to our shareholders."

All comparisons in the following paragraphs are for the first quarter of 2013
compared with the fourth quarter of 2012 unless otherwise noted.   

Loans and Deposits

Period-end loans held for investment decreased $14.6 billion, or 7 percent, to
$191.3 billion. The decrease was due in part to the movement of the Best Buy
portfolio of approximately $7 billion of loans to held for sale from held for
investment during the quarter. Domestic Card period-end loans decreased $12.8
billion, or 15 percent, to $70.4 billion, driven largely by the movement of
loans to held for sale, seasonally lower balances and purchase volumes, and
the anticipated run-off of certain acquired loans. Excluding loans
reclassified to held for sale during the first quarter, Domestic Card
period-end loans decreased $5.6 billion, or 7 percent. Commercial Banking
period-end loans increased $330 million, or 0.9 percent, to $39.2 billion, and
period-end loans in Auto Finance grew  $817 million, or 3 percent, to $27.9
billion. Period-end loans in Home Loans declined $2.2 billion, or 5 percent,
to $41.9 billion, driven by the continued anticipated run-off of acquired
portfolios. 

Average loans held for investment in the quarter decreased $6.9 billion, or 3
percent, to $196.0 billion. Average loans in Commercial Banking grew $978
million and Auto Finance average loans grew $596 million. Average Domestic
Card loans declined $6.0 billion, or 7 percent.  Average Home Loans decreased
by $2.2 billion, driven largely by the continued anticipated run-off of
acquired portfolios. 

Period-end total deposits were essentially flat at $212.4 billion, while
average deposits declined $1.9 billion. Deposit interest rates declined 4
basis points to 0.68 percent.

Revenues

Total net revenue for the first quarter of 2013 was $5.6 billion, a decline of
$73 million, or 1 percent, driven principally by lower average loan balances
and purchase volume partially offset by higher margins.

The reduction in interest expense and release of cash related to the
redemption of high coupon trust preferred securities contributed to an
increase in net interest margin of 19 basis points to 6.71 percent. Cost of
funds in the first quarter declined 16 basis points to 0.83 percent.  

Non-Interest Expense

Non-interest expense was $3.0 billion, a decrease of $227 million, or 7
percent, driven largely by the lack of seasonally high year-end expenses
recorded in the fourth quarter and lower amortization expense and
acquisition-related costs including integration. Marketing expense decreased
$76 million in the quarter to  $317 million.

Provision for Credit Losses

Provision for credit losses was $885 million in the quarter, a decrease of
$266 million, largely driven by a $261 million release in allowance. The
largest component of the allowance release was in Domestic Card, due to better
than anticipated credit performance in the quarter, including delinquencies,
and an improvement in drivers for the company's future outlook.

The net charge-off rate was 2.20 percent in the first quarter of 2013, a
decline of 6 basis points from 2.26 percent in the fourth quarter.

Discontinued Operations

The company recorded a $107 million provision for mortgage representation and
warranty reserve attributable to Discontinued Operations. This provision
reflects the company's assessment of probable and estimable losses in light of
the current environment, principally attributable to non-agency mortgage
related legal developments.

Net Income

Net income increased $223 million, or 26 percent, in the first quarter driven
primarily by lower non-interest expense and a reduction in credit expenses in
the quarter.

Capital Ratios

The company's estimated Tier 1 common ratio was approximately 11.8 percent as
of March 31, 2013, up from 11.0 percent as of December 31, 2012.

Detailed segment information will be available in the company's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2013.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 18, 2013 at 5:00
PM, Eastern Daylight 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). Choose "Investors" to access the
Investor Center and view and/or download the earnings press release, the
financial supplement, including a reconciliation to GAAP financial measures,
and the earnings release presentation. The replay of the webcast will be
archived on the company's website through May 2, 2013 at 5:00 PM.

Forward-looking Statements

The company cautions that its current expectations in this release dated April
18, 2013 and the company's plans, objectives, expectations and intentions, are
forward-looking statements which speak only as of the date hereof. The company
does not undertake any obligation to update or revise any of the information
contained herein whether as a result of new information, future events or
otherwise.

Certain statements in this release are forward-looking statements, including
those that discuss, among other things: strategies, goals, outlook or other
non-historical matters; projections, revenues, income, returns, expenses,
capital measures, accruals for claims in litigation and for other claims
against the company, earnings per share or other financial measures for the
company; future financial and operating results; the company's plans,
objectives, expectations and intentions; the projected impact and benefits of
the acquisition of ING Direct and HSBC's U.S. Card business (the
"Acquisitions") and the sale of the Best Buy loan portfolio (the "Sale
Transaction"); and the assumptions that underlie these matters.  To the extent
that any such information is forward-looking, it is intended to fit within the
safe harbor for forward-looking information provided by the Private Securities
Litigation Reform Act of 1995. Numerous factors could cause the company's
actual results to differ materially from those described in such
forward-looking statements, including, among other things: general economic
and business conditions in the U.S., the U.K., Canada or the company's local
markets, including conditions affecting employment levels, interest rates,
consumer income and confidence, spending and savings that may affect consumer
bankruptcies, defaults, charge-offs and deposit activity; an increase or
decrease in credit losses (including increases due to a worsening of general
economic conditions in the credit environment); financial, legal, regulatory,
tax or accounting changes or actions, including the impact of the Dodd-Frank
Wall Street Reform and Consumer Protection Act and the regulations promulgated
thereunder and regulations governing bank capital and liquidity standards,
including Basel-related initiatives and potential changes to financial
accounting and reporting standards; the possibility that the company may not
fully realize the projected cost savings and other projected benefits of the
Acquisitions; difficulties and delays in integrating the assets and businesses
acquired in the Acquisitions; business disruption following the Acquisitions;
diversion of management time on issues related to the Acquisitions, including
integration of the assets and businesses acquired; reputational risks and the
reaction of customers and counterparties to the Acquisitions; disruptions
relating to the Acquisitions negatively impacting the company's ability to
maintain relationships with customers, employees and suppliers; changes in
asset quality and credit risk as a result of the Acquisitions; the possibility
that conditions to the Sale Transaction are not received or satisfied on a
timely basis or at all; the possibility that modifications to the terms of the
Sale Transaction may be required in order to obtain or satisfy such
conditions; changes in the anticipated timing for closing the Sale
Transaction; developments, changes or actions relating to any  litigation
matter involving the company; the inability to sustain revenue and earnings
growth; increases or decreases in interest rates; the company's ability to
access the capital markets at attractive rates and terms to capitalize and
fund its operations and future growth; the success of the company's marketing
efforts in attracting and retaining customers; increases or decreases in the
company's aggregate loan balances or the number of customers and the growth
rate and composition thereof, including increases or decreases resulting from
factors such as shifting product mix, amount of actual marketing expenses the
company incurs and attrition of loan balances; the level of future repurchase
or indemnification requests the company may receive, the actual future
performance of mortgage loans relating to such requests, the success rates of
claimants against the company, any developments in litigation and the actual
recoveries the company may make on any collateral relating to claims against
the company; the amount and rate of deposit growth; changes in the reputation
of or expectations regarding the financial services industry or the company
with respect to practices, products or financial condition; any significant
disruption in the company's operations or technology platform; the company's
ability to maintain a compliance infrastructure suitable for the nature of our
business; the company's ability to control costs; the amount of, and rate of
growth in, the company's expenses as its business develops or changes or as it
expands into new market areas; the company's ability to execute on its
strategic and operational plans; any significant disruption of, or loss of
public confidence in, the United States Mail service affecting the company's
response rates and consumer payments; any significant disruption of, or loss
of public confidence in, the internet affecting the ability of the company's
customers to access their accounts and conduct banking transactions; the
company's ability to recruit and retain experienced personnel to assist in the
management and operations of new products and services; changes in the labor
and employment markets; fraud or misconduct by the company's customers,
employees or business partners; competition from providers of products and
services that compete with the company's businesses; and other risk factors
set forth from time to time in reports that the company 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, 2012.

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 $212.4 billion in deposits and    $300.2 billion in
total assets as of March 31, 2013. 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 more than 900 branch locations primarily in New York, New
Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A
Fortune 500 company, Capital One trades on the New York Stock Exchange under
the symbol "COF" and is included in the S&P 100 index.

 

                                                               Exhibit 99.2
Capital One Financial Corporation
Financial Supplement
     First Quarter 2013 ^(1) (2) (3)
    Table of Contents 
                                                               Page 
Capital One Financial Corporation Consolidated
     Table   1:             Financial Summary―Consolidated     1
     Table   2:             Selected Metrics―Consolidated      2
     Table   3:             Consolidated Statements of Income  3
     Table   4:             Consolidated Balance Sheets        4
                            Notes to Financial & Selected
     Table   5:             Metrics and Consolidated Financial 5
                            Statements (Tables 1 — 4)
     Table   6:             Average Balances, Net Interest     6
                            Income and Net Interest Margin
     Table   7:             Loan Information and Performance   7
                            Statistics
Business Segment Detail
     Table   8:             Financial & Statistical            8
                            Summary―Credit Card Business
     Table   9:             Financial & Statistical            9
                            Summary―Consumer Banking Business
                            Financial & Statistical
     Table 10:              Summary―Commercial Banking         10
                            Business
     Table 11:              Financial & Statistical            11
                            Summary―Other and Total 
     Table 12:              Notes to Loan and Business Segment 12
                            Disclosures (Tables 7 — 11)
Other
                            Reconciliation of Non-GAAP
     Table 13:              Measures and Calculation of        13
                            Regulatory Capital Measures
     The information contained in this Financial Supplement is preliminary and
^(1) based on data available at the time of the earnings presentation, and
     investors should refer to our March 31, 2013 Quarterly Report on Form
     10-Q once it is filed with the Securities and Exchange Commission. 
     References to ING Direct refer to the business and assets acquired and
     liabilities assumed in the February 17, 2012 acquisition. References to
^(2) the 2012 U.S. card acquisition refer to the May 1, 2012 transaction in
     which we acquired substantially all of HSBC's credit card and
     private-label credit card business in the United States.
     We use the term "acquired loans" to refer to a limited portion of the
     credit card loans acquired in the 2012 U.S. card acquisition and the
     substantial majority of loans acquired in the ING Direct and Chevy Chase
     Bank ("CCB") acquisitions, which were recorded at fair value at
     acquisition and subsequently accounted for based on estimated cash flows
     expected to be collected over the life of the loans (under the accounting
     standard formerly known as "SOP 03-3"). Because SOP 03-3 takes into
     consideration future credit losses expected to be incurred over the life
^(3) of the loans, there are no charge-offs or an allowance associated with
     these loans unless the estimated cash flows expected to be collected
     decrease subsequent to acquisition. In addition, these loans are not
     classified as delinquent or nonperforming even though the customer may be
     contractually past due because we expect that we will fully collect the
     carrying value of these loans. The accounting and classification of these
     loans may significantly alter some of our reported credit quality
     metrics. We therefore supplement certain reported credit quality metrics
     with metrics adjusted to exclude the impact of these acquired loans.

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 1:  Financial Summary—Consolidated ^(1)(2)(3)
                                           2013        2012        2012
(Dollars in millions, except per share     Q1          Q4          Q1
data and as noted) (unaudited)
Earnings
Net interest income                        $    4,570  $    4,528  $    3,414
Non-interest income^(4) (5)                981         1,096       1,521
Total net revenue^(6)                      5,551       5,624       4,935
Provision for credit losses                885         1,151       573
Non-interest expense:
    Marketing                              317         393         321
    Amortization of intangibles^(7)        177         191         62
    Acquisition-related ^(8)               46          69          86
    Operating expenses                     2,488       2,602       2,035
Total non-interest expense                 3,028       3,255       2,504
Income from continuing operations before   1,638       1,218       1,858
income taxes 
Income tax provision                       494         370         353
Income from continuing operations, net of  1,144       848         1,505
tax
Loss from discontinued operations, net of  (78)        (5)         (102)
tax^(4)
Net income                                 1,066       843         1,403
Dividends and undistributed earnings       (5)         (3)         (7)
allocated to participating securities^(9)
Preferred stock dividends                  (13)        (15)        —
Net income available to common             $    1,048  $      825  $    1,396
stockholders
Common Share Statistics
Basic EPS:^(9) 
   Income from continuing operations, net  $     1.94  $     1.43  $     2.94
of tax
   Loss from discontinued operations, net  (0.13)      (0.01)      (0.20)
of tax
   Net income per common share             $     1.81  $     1.42  $     2.74
Diluted EPS:^(9) 
   Income from continuing operations, net  $     1.92  $     1.42  $     2.92
of tax
   Loss from discontinued operations, net  (0.13)      (0.01)      (0.20)
of tax
   Net income per common share             $     1.79  $     1.41  $     2.72
Weighted average common shares
outstanding (in millions) for:
   Basic EPS                               580.5       579.2       508.7
   Diluted EPS                             586.3       585.6       513.1
Common shares outstanding (period end, in  584.0       582.2       580.2
millions)
Dividends per common share                 $     0.05  $     0.05  $     0.05
Tangible book value per common share       41.87       40.23       39.37
(period end)^(10)
Balance Sheet (Period End)
Loans held for investment^(11)             $191,333    $205,889    $173,822
Interest-earning assets                    268,479     280,096     265,398
Total assets                               300,163     312,918     294,481
Interest-bearing deposits                  191,093     190,018     197,254
Total deposits                             212,410     212,485     216,528
Borrowings                                 37,492      49,910      32,885
Stockholders' equity                       41,296      40,499      36,950
Balance Sheet (Quarterly Average
Balances)
Average loans held for investment^(10)     $195,997    $202,944    $152,900
Average interest-earning assets            272,345     277,886     220,246
Average total assets                       303,223     308,096     246,384
Average interest-bearing deposits          190,612     192,122     151,625
Average total deposits                     211,555     213,494     170,259
Average borrowings                         41,574      44,189      35,994
Average stockholders' equity               40,960      40,212      32,982

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2:  Selected Metrics—Consolidated ^(1)(2)(3)
                                        2013         2012         2012
(Dollars in millions, except per share  Q1           Q4           Q1
data and as noted) (unaudited)
Performance Metrics
Net interest income growth (quarter     1          % (3)        % 7          %
over quarter)^ 
Non-interest income growth(quarter      (10)         (4)          75
over quarter)
Total net revenue growth(quarter over   (1)          (3)          22
quarter)
Total net revenue margin^(12)           8.15         8.10         8.96
Net interest margin^(13)                6.71         6.52         6.20
Return on average assets^(14)           1.51         1.10         2.44
Return on average total stockholders'   11.17        8.44         18.25
equity^(15)
Return on average tangible common       19.09        14.74        31.60
equity^(16) 
Non-interest expense as a % of average  6.18         6.42         6.55
loans held for investment^(17)
Efficiency ratio^(18)                   54.55        57.88        50.74
Effective income tax rate               30.2         30.4         19.0
Full-time equivalent employees (in      39.3         39.6         34.2
thousands), period end
Credit Quality Metrics^(11)(19)
Allowance for loan and lease losses     $    4,606   $    5,156   $    4,060
Allowance as a % of loans held for      2.41       % 2.50       % 2.34       %
investment^ 
Allowance as a % of loans held for      2.91         3.02         3.08
investment (excluding acquired loans) 
Net charge-offs                         $    1,079   $    1,150   $      780
Net charge-off rate^(20)                2.20       % 2.26       % 2.04       %
Net charge-off rate (excluding          2.69         2.78         2.40
acquired loans)^(20)
30+ day performing delinquency rate     2.37         2.70         2.23
30+ day performing delinquency rate     2.90         3.29         2.96
(excluding acquired loans)
30+ day delinquency rate^(21)           **           3.09         2.69
30+ day delinquency rate (excluding     **           3.77         3.57
acquired loans)^(21) 
Capital Ratios ^(22)
Tier 1 common ratio                     11.8       % 11.0       % 11.9       %
Tier 1 risk-based capital ratio         12.2         11.3         13.9
Total risk-based capital ratio          14.4         13.6         16.5
Tangible common equity ("TCE") ratio    8.6          7.9          8.2

 

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3:  Consolidated Statements of
Income^(1)(2)(3)
                                         Three Months Ended
                                         March 31,   December 31,  March 31,
(Dollars in millions, except per share   2013        2012          2012
data) (unaudited)
Interest income:
Loans, including loans held for sale     $           $             $        
                                              4,649     4,727           3,657
Investment securities                    374         361           298
Other                                    28          27            24
    Total interest income                5,051       5,115         3,979
Interest expense:
Deposits                                 326         348           311
Securitized debt obligations             56          58            80
Senior and subordinated notes            82          85            88
Other borrowings                         17          96            86
    Total interest expense               481         587           565
Net interest income                      4,570       4,528         3,414
Provision for credit losses              885         1,151         573
    Net interest income after provision  3,685       3,377         2,841
for credit losses
Non-interest income:
Service charges and other                550         595           415
customer-related fees
Interchange fees, net                    445         459           328
Net other-than-temporary impairment      (25)        (12)          (14)
losses recognized in earnings
Bargain purchase gain^(5)                —           —             594
Other                                    11          54            198
    Total non-interest income            981         1,096         1,521
Non-interest expense:
Salaries and associate benefits          1,080       1,039         864
Occupancy and equipment                  350         380           270
Marketing                                317         393           321
Professional services                    307         354           293
Communications and data processing       210         205           172
Amortization of intangibles^(7)          177         191           62
Acquisition-related^(8)                  46          69            86
Other                                    541         624           436
    Total non-interest expense           3,028       3,255         2,504
Income from continuing operations        1,638       1,218         1,858
before income taxes
Income tax provision                     494         370           353
Income from continuing operations, net   1,144       848           1,505
of tax
Loss from discontinued operations, net   (78)        (5)           (102)
of tax^(4)
    Net income                           1,066       843           1,403
Dividends and undistributed earnings
allocated to participating               (5)         (3)           (7)
securities^(9)
Preferred stock dividends                (13)        (15)          -
    Net income available to common       $           $             $        
stockholders                                  1,048        825          1,396
Basic earnings per common share:^(9)
                                         $           $             $        
    Income from continuing operations                     1.43          
                                          1.94                      2.94
    Loss from discontinued operations    (0.13)      (0.01)        (0.20)
                                         $           $             $        
    Net income per basic common share                     1.42          
                                          1.81                      2.74
Diluted earnings per common share:^(9)
                                         $           $             $        
    Income from continuing operations                     1.42          
                                          1.92                      2.92
    Loss from discontinued operations    (0.13)      (0.01)        (0.20)
                                         $           $             $        
    Net income per diluted common share                   1.41          
                                          1.79                      2.72
Weighted average common shares
outstanding (in millions) for:
    Basic EPS                            580.5       579.2         508.7
    Diluted EPS                          586.3       585.6         513.1
                                         $           $             $        
Dividends paid per common share                           0.05          
                                          0.05                      0.05

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4:  Consolidated Balance Sheets
                                    March 31,      December 31,   March 31,
(Dollars in millions)(unaudited)    2013           2012           2012
Assets:
Cash and cash equivalents:
  Cash and due from banks           $              $              $          
                                    1,947          3,440            2,183
  Interest-bearing deposits with    4,563          7,617          28,165
  banks
  Federal funds sold and
  securities purchased under        236            1              308
  agreements to resell
Total cash and cash equivalents     6,746          11,058         30,656
Restricted cash for securitization  1,018          428            1,090
investors
Securities available for sale, at   63,968         63,979         60,810
fair value
Loans held for investment:
  Unsecuritized loans held for      150,721        162,059        128,927
  investment
  Restricted loans for              40,612         43,830         44,895
  securitization investors
Total loans held for investment     191,333        205,889        173,822
      Less: Allowance for loan and  (4,606)        (5,156)        (4,060)
  lease losses
Net loans held for investment       186,727        200,733        169,762
Loans held for sale, at lower of    6,410          201            627
cost or fair value
Premises and equipment, net         3,736          3,587          3,062
Interest receivable                 1,378          1,694          1,157
Goodwill                            13,900         13,904         13,595
Other                               16,280         17,334         13,722
Total assets                        $              $              $        
                                    300,163        312,918        294,481
Liabilities:
Interest payable                    $              $              $          
                                       310            450              384
Customer deposits:
  Non-interest bearing deposits     21,317         22,467         19,274
  Interest-bearing deposits         191,093        190,018        197,254
Total customer deposits             212,410        212,485        216,528
Securitized debt obligations        11,046         11,398         15,474
Other debt:
  Federal funds purchased and
  securities loaned or sold under   855            1,248          770
  agreements to repurchase
  Senior and subordinated notes     13,255         12,686         11,948
  Other borrowings                  12,336         24,578         4,693
Total other debt                    26,446         38,512         17,411
Other liabilities                   8,655          9,574          7,734
Total liabilities                   258,867        272,419        257,531
Stockholders' equity:
Preferred stock                     —              —              —
Common stock                        6              6              6
Additional paid-in capital, net     26,256         26,188         25,136
Retained earnings                   17,876         16,853         14,841
Accumulated other comprehensive     473            739            253
income
Treasury stock, at cost             (3,315)        (3,287)        (3,286)
Total stockholders' equity          41,296         40,499         36,950
Total liabilities and               $              $              $        
stockholders' equity                300,163        312,918        294,481

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 5: Notes to Financial & Selected Metrics and Consolidated Financial
Statements (Tables 1 — 4)
^(1)  Certain prior period amounts have been reclassified to conform to the
      current period presentation.
      Results for Q2 2012 and thereafter include the impact of the May 1, 2012
^(2)  closing of the 2012 U.S. card acquisition, which resulted in the
      addition of $28.2 billion in credit card receivables at closing.
      Results for Q1 2012 and thereafter include the impact of the February
^(3)  17, 2012 acquisition of ING Direct, which resulted in the addition of
      loans of $40.4 billion, other assets of $53.9 billion and deposits of
      $84.4 billion at acquisition.
      We recorded a provision for mortgage representation and warranty losses
      of $97 million in Q1 2013.  We did not record a provision for mortgage
      representation and warranty losses in Q4 2012. We recorded a provision
      for mortgage representation and warranty losses of $169 million in Q1
^(4)  2012. The majority of the provision for representation and warranty
      losses is generally included net of tax in discontinued operations, with
      the remaining amount included pre-tax in non-interest income. The
      mortgage representation and warranty reserve increased to $994 million
      as of March 31, 2013, from $899 million as of December 31, 2012.
      Includes a bargain purchase gain of $594 million recognized in earnings
      in Q1 2012 attributable to the February 17, 2012 acquisition of ING
^(5)  Direct. Represents the excess of the fair value of the net assets
      acquired in the ING Direct acquisition as of the acquisition date of
      February 17, 2012 over the consideration transferred.
      Total net revenue was reduced by $265 million in Q1 2013, $318 million
      in Q4 2012, and $123 million in Q1 2012 for the estimated uncollectible
^(6)  amount of billed finance charges and fees.  Premium amortization related
      to the 2012 U.S. card and ING Direct acquisitions reduced revenue by
      $111 million in Q1 2013, $124 million in Q4 2012, and $30 million in Q1
      2012. 
      Includes purchased credit card relationship ("PCCR") intangible
      amortization of $116 million in Q1 2013, $127 million in Q4 2012, and $4
^(7)  million in Q1 2012, the substantial majority of which is attributable to
      the 2012 U.S. card acquisition. Includes core deposit intangible
      amortization of $44 million in Q1 2013, $47 million in Q4 2012, and $46
      million in Q1 2012. 
      Acquisition-related costs include transaction costs, legal and other
^(8)  professional or consulting fees, restructuring costs and integration
      expense.
      Dividends and undistributed earnings allocated to participating
^(9)  securities and EPS are computed independently for each period.
      Accordingly, the sum of each quarter may not agree to the year-to-date
      total.
      Tangible book value per common share is a non-GAAP measure calculated
^(10) based on tangible common equity divided by common shares outstanding.
      See "Table 13: Reconciliation of Non-GAAP Measures and Calculation of
      Regulatory Capital Measures" for additional information.
      Loans held for investment includes acquired loans accounted for based on
^(11) cash flows expected to be collected.  See Table "Table 12: Notes to Loan
      and Business Segment Disclosures (Tables 7 — 11)" for information on the
      amount of acquired loans for each of the periods presented.
^(12) Calculated based on annualized total net revenue for the period divided
      by average interest-earning assets for the period.
^(13) Calculated based on annualized net interest income for the period
      divided by average interest-earning assets for the period.
^(14) Calculated based on annualized income from continuing operations, net of
      tax, for the period divided by average total assets for the period. 
      Calculated based on annualized income from continuing operations, net of
^(15) tax, for the period divided by average stockholders' equity for the
      period. 
      Calculated based on annualized income from continuing operations, net of
^(16) tax, for the period divided by average tangible common equity for the
      period.  See "Table 13: Reconciliation of Non-GAAP Measures and
      Calculation of Regulatory Capital Measures" for additional information.
^(17) Calculated based on annualized non-interest expense for the period
      divided by average loans held for investment for the period.
^(18) Calculated based on non-interest expense, excluding goodwill impairment
      charges, for the period divided by total net revenue for the period. 
      Loans acquired as part of the 2012 U.S. card, ING Direct and CCB
      acquisitions classified as held for investment are included in the
^(19) denominator used in calculating our reported credit quality metrics.  We
      supplement certain reported credit quality metrics with metrics adjusted
      to exclude from the denominator acquired loans accounted for based on
      estimated expected cash flows to be collected (formerly SOP 03-3).
^(20) Calculated based on annualized net charge-offs for the period divided by
      average loans held for investment for the period. 
      The 30+ day delinquency rate as of the end of Q1 2013 will be provided
^(21) in the Quarterly Report on Form 10-Q for the quarter ended March 31,
      2013.
      Capital ratios as of the end of Q1 2013 are preliminary and therefore
      subject to change. TCE ratio is a non-GAAP capital ratio. See "Table 13:
^(22) Reconciliation of Non-GAAP Measures and Calculation of Regulatory
      Capital Measures" for information on the calculation of each of these
      ratios.

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 6:  Average Balances, Net Interest Income and Net Interest Margin
                      2013 Q1                         2012 Q4                         2012 Q1
                      Average   Interest   Yield/     Average   Interest   Yield/     Average   Interest   Yield/ 
                                Income/                         Income/                         Income/
(Dollars in           Balance   Expense   Rate        Balance   Expense   Rate        Balance   Expense   Rate
millions)(unaudited)
Interest-earning
assets:
    Loans, including  $200,441  $  4,649  9.28     %  $203,132  $  4,727  9.31     %  $153,332  $  3,657  9.54     %
loans held for sale
    Investment        64,798    374       2.31        64,174    361       2.25        50,543    298       2.36
securities
    Cash equivalents  7,106     28        1.58        10,580    27        1.02        16,371    24        0.59
and other
Total
interest-earning      $272,345  $  5,051  7.42     %  $277,886  $  5,115  7.36     %  $220,246  $  3,979  7.23     %
assets 
Interest-bearing
liabilities:
    Interest-bearing  $190,612  $         0.68     %  $192,122  $         0.72     %  $151,625  $         0.82     %
deposits                        326                             348                             311
    Securitized debt  11,758    56        1.91        12,119    58        1.91        16,185    80        1.98
obligations
    Senior and        11,984    82        2.74        11,528    85        2.95        10,268    88        3.43
subordinated notes
    Other borrowings  17,832    17        0.38        20,542    96        1.87        9,541     86        3.61
Total                           $                               $                               $    
interest-bearing      $232,186  481       0.83     %  $236,311  587       0.99     %  $187,619  565       1.20     %
liabilities
Net interest                    $  4,570  6.59     %            $  4,528  6.37     %            $  3,414  6.03     %
income/spread
Impact of
non-interest bearing                      0.12                            0.15                            0.17
funding
Net interest margin                       6.71     %                      6.52     %                      6.20     %

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance
Statistics^(1)(2)(3)(4)
                                     2013          2012          2012
(Dollars in millions)(unaudited)     Q1            Q4            Q1^ 
Period-end Loans Held For
Investment
Credit card:
   Domestic credit card              $             $             $          
                                     70,361        83,141        53,173
   International credit card         8,036         8,614         8,303
      Total credit card              78,397        91,755        61,476
Consumer banking:
   Automobile                        27,940        27,123        23,568
   Home loan                         41,931        44,100        49,550
   Retail banking                    3,742         3,904         4,182
      Total consumer banking         73,613        75,127        77,300
Commercial banking:
   Commercial and multifamily real   17,878        17,732        15,702
estate
   Commercial and industrial         20,127        19,892        17,761
      Total commercial lending       38,005        37,624        33,463
   Small-ticket commercial real      1,145         1,196         1,443
estate
      Total commercial banking       39,150        38,820        34,906
Other loans                          173           187           140
     Total                           $             $             $        
                                     191,333       205,889       173,822
Average Loans Held For Investment
Credit card:
   Domestic credit card              $             $             $          
                                     74,714        80,718        54,131
   International credit card         8,238         8,372         8,301
      Total credit card              82,952        89,090        62,432
Consumer banking:
   Automobile                        27,477        26,881        22,582
   Home loan                         43,023        45,250        29,502
   Retail banking                    3,786         3,967         4,179
      Total consumer banking         74,286        76,098        56,263
Commercial banking:
   Commercial and multifamily real   17,454        17,005        15,514
estate
   Commercial and industrial         19,949        19,344        17,038
      Total commercial lending       37,403        36,349        32,552
   Small-ticket commercial real      1,173         1,249         1,480
estate
      Total commercial banking       38,576        37,598        34,032
Other loans                          183           158           173
      Total                          $             $             $        
                                     195,997       202,944       152,900
Net Charge-off Rates
Credit card:
   Domestic credit card              4.43        % 4.35        % 3.92        %
   International credit card         4.59          3.99          5.52
      Total credit card              4.45          4.32          4.14
Consumer banking:
   Automobile                        1.78          2.24          1.41
   Home loan                         0.04          (0.06)        0.20
   Retail banking                    1.85          2.45          1.39
      Total consumer banking         0.78          0.88          0.77
Commercial banking:
   Commercial and multifamily real   0.01          (0.08)        0.09
estate
   Commercial and industrial         0.04          0.13          (0.08)
      Total commercial lending       0.03          0.03          -
   Small-ticket commercial real      1.41          2.02          4.24
estate
      Total commercial banking       0.07          0.10          0.19
Other loans                          14.53         24.23         23.30
      Total                          2.20        % 2.26        % 2.04        %
30+ Day Performing Delinquency
Rates
Credit card:
   Domestic credit card              3.37        % 3.61        % 3.25        %
   International credit card         4.04          3.58          5.14
      Total credit card              3.44        % 3.61        % 3.51        %
Consumer banking:
   Automobile                        5.58        % 7.00        % 4.87        %
   Home loan                         0.14          0.13          0.15
   Retail banking                    0.83          0.76          0.80
      Total consumer banking         2.24        % 2.65        % 1.63        %
Nonperforming Asset Rates^(5)
Credit card:
   International credit card         1.13        % 1.16        % —           %
      Total credit card              0.12        % 0.11        % —           %
Consumer banking:
   Automobile                        0.40        % 0.63        % 0.32        %
   Home loan                         1.02          1.00          0.94
   Retail banking                    1.24          1.85          2.25
      Total consumer banking         0.80        % 0.91        % 0.82        %
Commercial banking:
   Commercial and multifamily real   0.76        % 0.82        % 1.55        %
estate
   Commercial and industrial         0.64          0.72          0.69
      Total commercial lending       0.69        % 0.77        % 1.09        %
   Small-ticket commercial real      2.42          0.97          4.35
estate
      Total commercial banking       0.74        % 0.77        % 1.23        %

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8:  Financial & Statistical Summary—Credit Card
Business^(2)(4)
                               2013            2012            2012
(Dollars in millions)          Q1              Q4              Q1
(unaudited)
Credit Card
Earnings:
  Net interest income          $               $               $          
                                2,830           2,849           1,992
  Non-interest income          821             883             598
  Total net revenue            3,651           3,732           2,590
  Provision for credit losses  743             1,000           458
  Non-interest expense         1,848           1,933           1,268
  Income (loss) from
continuing operations before   1,060           799             864
taxes
  Income tax provision         374             279             298
(benefit)
  Income (loss) from           $               $               $            
continuing operations, net of    686             520             566
tax
Selected performance metrics:
  Period-end loans held for    $               $               $          
investment                     78,397          91,755          61,476
  Average loans held for       82,952          89,090          62,432
investment
  Average yield on loans held  15.16         % 14.33         % 14.41         %
for investment^(10)
  Total net revenue            17.61           16.76           16.59
margin^(11)
  Net charge-off rate          4.45            4.32            4.14
  30+ day performing           3.44            3.61            3.51
delinquency rate
  30+ day delinquency          **              3.69            3.51
rate^(7)
  Nonperforming loan rate^(5)  0.12            0.11            —
  PCCR intangible              $               $               $            
amortization                     116             127                 4
  Purchase volume^(6)          45,098          52,853          34,498
Domestic Card
Earnings:
  Net interest income          $               $               $          
                                2,556           2,583           1,713
  Non-interest income          724             798             497
  Total net revenue            3,280           3,381           2,210
  Provision for credit losses  647             911             361
  Non-interest expense         1,633           1,727           1,052
  Income (loss) from
continuing operations before   1,000           743             797
taxes
  Income tax provision         356             263             282
(benefit)
  Income (loss) from           $               $               $            
continuing operations, net of    644             480             515
tax
Selected performance metrics:
  Period-end loans held for    $               $               $          
investment                     70,361          83,141          53,173
  Average loans held for       74,714          80,718          54,131
investment
  Average yield on loans held  15.07         % 14.20         % 14.11         %
for investment^(10)
  Total net revenue            17.56           16.75           16.33
margin^(11)
  Net charge-off rate          4.43            4.35            3.92
  30+ day performing           3.37            3.61            3.25
delinquency rate
  30+ day delinquency          **              3.61            3.25
rate^(7)
  Purchase volume^(6)          $               $               $          
                               41,831          48,918          31,417
International Card
Earnings:
  Net interest income          $               $               $            
                                 274             266             279
  Non-interest income          97              85              101
  Total net revenue            371             351             380
  Provision for credit losses  96              89              97
  Non-interest expense         215             206             216
  Income (loss) from
continuing operations before   60              56              67
taxes
  Income tax provision         18              16              16
(benefit)
  Income (loss) from           $               $               $            
continuing operations, net of      42              40              51
tax
Selected performance metrics:
  Period-end loans held for    $               $               $          
investment                      8,036           8,614           8,303
  Average loans held for       8,238           8,372           8,301
investment
  Average yield on loans held  15.97         % 15.59         % 16.38         %
for investment
  Total net revenue margin     18.01           16.77           18.31
  Net charge-off rate          4.59            3.99            5.52
  30+ day performing           4.04            3.58            5.14
delinquency rate
  30+ day delinquency          **              4.49            5.14
rate^(7)
  Nonperforming loan rate^(5)  1.13            1.16            —
  Purchase volume^(6)          $               $               $          
                                3,267           3,935           3,081

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9:  Financial & Statistical Summary—Consumer Banking Business^(3)(4)
                               2013            2012            2012
(Dollars in millions)          Q1              Q4              Q1^ 
(unaudited)
Consumer Banking
Earnings:
  Net interest income          $               $               $          
                                1,478           1,503           1,288
  Non-interest income          181             161             176
  Total net revenue            1,659           1,664           1,464
  Provision for credit losses  175             169             174
  Non-interest expense         890             992             943
  Income from continuing       594             503             347
  operations before taxes
  Income tax provision         211             178             123
  Income from continuing       $               $               $            
  operations, net of tax         383             325             224
Selected performance metrics:
  Period-end loans held for    $               $               $          
  investment                   73,613          75,127          77,300
  Average loans held for       74,286          76,098          56,263
  investment 
  Average yield on loans held  5.93          % 5.94          % 7.20          %
  for investment
  Auto loan originations       $               $               $          
                                3,789           3,479           4,270
  Period-end deposits          172,605         172,396         176,007
  Average deposits             171,089         172,654         129,915
  Deposit interest expense     0.64          % 0.68          % 0.73          %
  rate
  Core deposit intangible      $               $               $            
  amortization                     37              39              37
  Net charge-off rate          0.78          % 0.88          % 0.77          %
  30+ day performing           2.24            2.65            1.63
  delinquency rate
  30+ day delinquency          **              3.34            2.25
  rate^(7)
  Nonperforming loan rate      0.74            0.85            0.77
  Nonperforming asset          0.80            0.91            0.82
  rate^(5)
  Period-end loans serviced    $               $               $          
  for others                   14,869          15,333          17,586

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10:  Financial & Statistical Summary—Commercial Banking
Business^(3)(4)
                               2013            2012            2012
(Dollars in millions)          Q1              Q4              Q1^ 
(unaudited)
Commercial Banking
Earnings:
 Net interest income           $               $               $            
                                 454             450             431
 Non-interest income           84              86              85
 Total net revenue^(8)         538             536             516
 Provision for credit losses   (35)            (20)            (69)
 Non-interest expense          258             294             261
 Income from continuing        315             262             324
 operations before taxes
 Income tax provision          112             93              114
 Income from continuing        $               $               $            
 operations, net of tax          203             169             210
Selected performance metrics:
 Period-end loans held for     $               $               $          
 investment                    39,150          38,820          34,906
 Average loans held for        38,576          37,598          34,032
 investment 
 Average yield on loans held   3.91          % 4.15          % 4.47          %
 for investment
 Period-end deposits           $               $               $          
                               30,275          29,866          28,046
 Average deposits              30,335          29,476          27,569
 Deposit interest expense      0.28          % 0.28          % 0.37          %
 rate
 Core deposit intangible       $               $               $            
 amortization                        7               8               9
 Net charge-off rate           0.07          % 0.10          % 0.19          %
 Nonperforming loan rate       0.71            0.73            1.15
 Nonperforming asset rate^(5)  0.74            0.77            1.23
Risk category:^(9)
 Noncriticized                 $               $               $          
                               37,359          36,839          32,339
 Criticized performing         1,191           1,340           1,695
 Criticized nonperforming      277             282             402
     Total risk-rated loans    38,827          38,461          34,436
 Acquired commercial loans     323             359             470
     Total commercial loans    $               $               $          
                               39,150          38,820          34,906
 % of period-end commercial
 loans held for investment:
 Noncriticized                 95.4          % 94.9          % 92.6          %
 Criticized performing         3.1             3.5             4.9
 Criticized nonperforming      0.7             0.7             1.2
     Total risk-rated loans    99.2            99.1            98.7
 Acquired commercial loans     0.8             0.9             1.3
     Total commercial loans    100.0         % 100.0         % 100.0         %

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11:  Financial & Statistical Summary—Other and
Total^(2)(3)
                              2013             2012             2012
(Dollars in millions)         Q1               Q4               Q1
(unaudited)
Other 
Earnings:
 Net interest expense         $                $                $            
                                 (192)            (274)             (297)
 Non-interest income          (105)            (34)             662
 Total net revenue            (297)            (308)            365
 Provision for credit losses  2                2                10
 Non-interest expense         32               36               32
 Income (loss) from
 continuing operations        (331)            (346)            323
 before taxes
 Income tax benefit           (203)            (180)            (182)
 Income (loss) from           $                $                $            
 continuing operations, net      (128)            (166)              505
 of tax
Selected performance
metrics:
 Period-end loans held for    $                $                $            
 investment                       173              187               140
 Average loans held for       183              158              173
 investment
 Period-end deposits          9,530            10,223           12,475
 Average deposits             10,131           11,364           12,775
Total
Earnings:
 Net interest income          $                $                $            
                               4,570            4,528             3,414
 Non-interest income          981              1,096            1,521
 Total net revenue            5,551            5,624            4,935
 Provision for credit losses  885              1,151            573
 Non-interest expense         3,028            3,255            2,504
 Income from continuing       1,638            1,218            1,858
 operations before taxes
 Income tax provision         494              370              353
 Income from continuing       $                $                $            
 operations, net of tax        1,144               848            1,505
Selected performance
metrics:
 Period-end loans held for    $                $                $          
 investment                    191,333          205,889         173,822
 Average loans held for       195,997          202,944          152,900
 investment
 Period-end deposits          212,410          212,485          216,528
 Average deposits             211,555          213,494          170,259

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12:  Notes to Loan and Business Segment Disclosures (Tables
7 — 11)
^(1)  Certain prior period amounts have been reclassified to conform to the
      current period presentation.
      Results for Q2 2012 and thereafter include the impact of the May 1, 2012
^(2)  closing of the 2012 U.S. card acquisition, which resulted in the
      addition of approximately $28.2 billion in credit card receivables at
      closing.
      Results for Q1 2012 and thereafter include the impact of the February
^(3)  17, 2012 acquisition of ING Direct, which resulted in the addition of
      loans of $40.4 billion, other assets of $53.9 billion and deposits of
      $84.4 billion at acquisition.
      Loans acquired as part of the 2012 U.S. card, ING Direct and CCB
      acquisitions are included in the denominator used in calculating our
      reported credit quality metrics. We therefore present certain reported
^(4)  credit quality metrics, adjusted to exclude from the denominator
      acquired loans accounted for based on estimated cash flows expected to
      be collected over the life of the loans (formerly SOP 03-3). The table
      below presents amounts related to acquired loans accounted for under SOP
      03-3.
                             2013         2012        2012
      (Dollars in
      millions)              Q1           Q4          Q1^ 
      (unaudited)
      Acquired loans
      accounted for
      under SOP 03-3:
          Period-end
          unpaid             $            $           $  
          principal          36,216       38,477       44,798
          balance
          Period-end
          loans held for     34,943       37,134      43,131
          investment
          Average loans
          held for           35,706       37,899      23,067
          investment
      Nonperforming assets consist of nonperforming loans, real estate owned
      ("REO") and other foreclosed assets. The nonperforming asset ratios are
^(5)  calculated based on nonperforming assets for each category divided by
      the combined period-end total of loans held for investment, REO and
      other foreclosed assets for each respective category.
^(6)  Includes credit card purchase transactions, net of returns. Excludes
      cash advance transactions.
      The 30+ day delinquency rate as of the end of Q1 2013 will be provided
^(7)  in our Quarterly Report on Form 10-Q for the period ended March 31,
      2013.
      Because some of our tax-related commercial investments generate
      tax-exempt income or tax credits, we make certain reclassifications
^(8)  within our Commercial Banking business results to present revenues on a
      taxable-equivalent basis, calculated assuming an effective tax rate
      approximately equal to our federal statutory tax rate of 35%.
^(9)  Criticized exposures correspond to the "Special Mention," "Substandard"
      and "Doubtful" asset categories defined by bank regulatory authorities.
      The transfer of the Best Buy Stores, L.P. ("Best Buy") portfolio to held
^(10) for sale resulted in an increase in the average yield for Domestic Card
      and Total Card of 107 basis points and 97 basis points, respectively, in
      Q1 2013.
      The transfer of the Best Buy portfolio to held for sale resulted in an
^(11) increase in the net revenue margin for Domestic Card and Total Card of
      123 basis points and 112 basis points, respectively, in Q1 2013.

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory
Capital Measures
In addition to disclosing required regulatory capital measures, we also report
certain non-GAAP capital measures that management uses in assessing its
capital adequacy. These non-GAAP measures include average tangible common
equity, tangible common equity ("TCE") and TCE ratio. The table below provides
the details of the calculation of our regulatory capital and non-GAAP capital
measures. While our non-GAAP capital 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. 
                                    2013         2012         2012
(Dollars in millions)(unaudited)    Q1           Q4           Q1
Average Equity to Non-GAAP
Average Tangible Common Equity
Average total stockholders'         $            $            $    
equity                              40,960       40,212        32,982
Less:  Average intangible           (16,141)     (16,340)     (13,931)
assets^(1)
           Noncumulative            (853)        (853)        —
perpetual preferred stock^(2)
Average tangible common             $            $            $    
equity^(3)                          23,966       23,019        19,051
Stockholders' Equity to Non-GAAP
Tangible Common Equity
Total stockholders' equity          $            $            $    
                                    41,296       40,499        36,950
Less:  Goodwill and other           (15,992)     (16,224)     (14,110)
intangible assets^(1)
           Noncumulative            (853)        (853)        —
perpetual preferred stock^(2)
Tangible common equity^(3)          $            $            $    
                                    24,451       23,422        22,840
Total Assets to Tangible Assets
Total assets                        $            $            $  
                                     300,163      312,918      294,481
Less:  Assets from discontinued     (309)        (309)        (304)
operations
Total assets from continuing        299,854      312,609      294,177
operations
Less:  Goodwill and other           (15,992)     (16,224)     (14,110)
intangible assets^(1)
Tangible assets                     $            $            $  
                                     283,862      296,385      280,067
Non-GAAP TCE Ratio
Tangible common equity^(3)          $            $            $    
                                    24,451       23,422        22,840
Tangible assets                     283,862      296,385      280,067
TCE ratio^(3)                       8.6       %  7.9       %  8.2       %
Regulatory Capital Ratios^(4)
Total stockholders' equity          $            $            $    
                                    41,296       40,499        36,950
Less:  Net unrealized gains on
AFS securities recorded in
accumulated other                   (583)        (712)        (327)

  comprehensive income
("AOCI")^(5)
           Net (gains) losses on
cash flow hedges recorded in        15           2            70
AOCI^(5)
           Disallowed goodwill      (14,361)     (14,428)     (14,057)
and other intangible assets
           Disallowed deferred      —            —            (902)
tax assets
           Noncumulative            (853)        (853)        —
perpetual preferred stock^(2)
           Other                    (4)          (12)         (3)
Tier 1 common capital               25,510       24,496       21,731
Plus:   Noncumulative perpetual     853          853          —
preferred stock^(2)
           Tier 1 restricted        1            2            3,636
core capital items^(6)
Tier 1 capital                      26,364       25,351       25,367
Plus:   Long-term debt              2,122        2,119        2,438
qualifying as Tier 2 capital
           Qualifying allowance     2,737        2,830        2,314
for loan and lease losses
           Other Tier 2             11           13           17
components
Tier 2 capital                      4,870        4,962        4,769
Total risk-based capital^(7)        $            $            $    
                                    31,234       30,313        30,136
Risk-weighted assets^(8)            $            $            $  
                                     216,474      223,472      182,704
Tier 1 common ratio^(9)             11.8      %  11.0      %  11.9      %
Tier 1 risk-based capital           12.2         11.3         13.9
ratio^(10)
Total risk-based capital            14.4         13.6         16.5
ratio^(11)
___________________

^(1)  Includes impact from related deferred taxes.
^(2)  Noncumulative perpetual preferred stock qualifies for Tier 1 capital;
      however, it is not includable in Tier 1 common capital.
^(3)  TCE ratio is a non-GAAP measure calculated based on tangible common
      equity divided by tangible assets.  
^(4)  Regulatory capital ratios as of the end of Q1 2013 are preliminary and
      therefore subject to change.
^(5)  Amounts presented are net of tax.
^(6)  Consists primarily of trust preferred securities.
^(7)  Total risk-based capital equals the sum of Tier 1 capital and Tier 2
      capital.
^(8)  Calculated based on prescribed regulatory guidelines.
^(9)  Tier 1 common ratio is a regulatory measure calculated based on Tier 1
      common capital divided by risk-weighted assets.
^(10) Tier 1 risk-based capital ratio is a regulatory capital measure
      calculated based on Tier 1 capital divided by risk-weighted assets.
      Total risk-based capital ratio is a regulatory capital measure
^(11) calculated based on total risk-based capital divided by risk-weighted
      assets.

 

 

SOURCE Capital One Financial Corporation

Website: http://www.capitalone.com
Contact: Investor Relations, Jeff Norris or Danielle Dietz, 703.720.2455, or
Media Relations, Julie Rakes, 804.284.5800, or Tatiana Stead, 703.720.2352
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