EX-99.2 3 ex992q32024earningsrelease.htm EX-99.2 Document

Exhibit 99.2

Capital One Financial Corporation
Financial Supplement(1)(2)
Third Quarter 2024
Table of Contents
Capital One Financial Corporation Consolidated ResultsPage
Business Segment Results
Other
__________
(1)The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended September 30, 2024 once it is filed with the Securities and Exchange Commission.
(2)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. 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. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation of any non-GAAP financial measures.


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 1: Financial Summary—Consolidated     
2024 Q3Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted) 20242024202420232023202420232024 vs.
Q3Q2Q1Q4Q3Q2Q3202420232023
Income Statement
Net interest income$8,076 $7,546 $7,488 $7,519 $7,423 7 %9 %$23,110 $21,722 6 %
Non-interest income1,938 1,960 1,914 1,987 1,943 (1)— 5,812 5,559 5 
Total net revenue(1)
10,014 9,506 9,402 9,506 9,366 5 7 28,922 27,281 6 
Provision for credit losses2,482 3,909 2,683 2,857 2,284 (37)9 9,074 7,569 20 
Non-interest expense:
Marketing1,113 1,064 1,010 1,254 972 5 15 3,187 2,755 16 
Operating expense4,201 3,882 4,127 4,463 3,888 8 8 12,210 11,844 3 
Total non-interest expense5,314 4,946 5,137 5,717 4,860 7 9 15,397 14,599 5 
Income from continuing operations before income taxes2,218 651 1,582 932 2,222 **— 4,451 5,113 (13)
Income tax provision441 54 302 226 432 **2 797 932 (14)
Net income1,777 597 1,280 706 1,790 198 (1)3,654 4,181 (13)
Dividends and undistributed earnings allocated to participating securities(2)
(28)(9)(23)(10)(28)**— (60)(67)(10)
Preferred stock dividends(57)(57)(57)(57)(57)— — (171)(171)— 
Net income available to common stockholders$1,692 $531 $1,200 $639 $1,705 **(1)$3,423 $3,943 (13)
Common Share Statistics
Basic earnings per common share:(2)
Net income per basic common share$4.42 $1.39 $3.14 $1.67 $4.46 **(1)%$8.94 $10.31 (13)%
Diluted earnings per common share:(2)
Net income per diluted common share$4.41 $1.38 $3.13 $1.67 $4.45 **(1)%$8.92 $10.28 (13)%
Weighted-average common shares outstanding (in millions):
Basic383.0 383.1 382.2 381.9 382.5 — — 382.8 382.7 — 
Diluted383.7 383.9 383.4 382.8 383.3 — — 383.7 383.6 — 
Common shares outstanding (period-end, in millions)381.5 381.9 382.1 380.4 381.0 — — 381.5 381.0 — 
Dividends declared and paid per common share$0.60 $0.60 $0.60 $0.60 $0.60 — — $1.80 $1.80 — 
Tangible book value per common share (period-end)(3)
112.36 99.28 98.67 99.78 87.97 13 %28 %112.36 87.97 28 %
1

2024 Q3Nine Months Ended September 30,
(Dollars in millions)20242024202420232023202420232024 vs.
Q3Q2Q1Q4Q3Q2Q3202420232023
Balance Sheet (Period-End)
Loans held for investment$320,243 $318,186 $315,154 $320,472 $314,780 1 %2 %$320,243 $314,780 2 %
Interest-earning assets458,189 452,547 453,557 449,701 445,428 1 3 458,189 445,428 3 
Total assets486,433 480,018 481,720 478,464 471,435 1 3 486,433 471,435 3 
Interest-bearing deposits327,253 324,437 323,352 320,389 317,217 1 3 327,253 317,217 3 
Total deposits353,631 351,442 350,969 348,413 346,011 1 2 353,631 346,011 2 
Borrowings49,336 47,956 50,361 49,856 49,247 3 — 49,336 49,247 — 
Common equity58,080 53,135 52,955 53,244 48,823 9 19 58,080 48,823 19 
Total stockholders’ equity62,925 57,981 57,801 58,089 53,668 9 17 62,925 53,668 17 
Balance Sheet (Average Balances)
Loans held for investment$318,255 $314,888 $314,614 $315,890 $312,759 1 %2 %$315,927 $310,075 2 %
Interest-earning assets454,484 450,908 447,803 446,929 443,532 1 2 451,078 439,321 3 
Total assets481,219 477,285 474,995 472,594 469,860 1 2 477,816 466,279 2 
Interest-bearing deposits324,509 322,581 318,450 316,808 316,032 1 3 321,856 312,702 3 
Total deposits351,125 349,488 345,657 345,328 345,013 — 2 348,765 342,956 2 
Borrowings48,274 48,842 50,474 51,070 49,736 (1)(3)49,194 48,746 1 
Common equity56,443 53,262 53,152 50,786 50,166 6 13 54,293 50,202 8 
Total stockholders’ equity61,289 58,107 57,998 55,632 55,012 5 11 59,139 55,048 7 
    
    
2

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Selected Metrics—Consolidated
2024 Q3Nine Months Ended September 30,
(Dollars in millions, except as noted) 20242024202420232023202420232024 vs.
Q3Q2Q1Q4Q3Q2Q3202420232023
Performance Metrics
Net interest income growth (period over period)7 %1 %— 1 %4 %****6 %9 %**
Non-interest income growth (period over period)(1)2 (4)%2 2 ****5 5 **
Total net revenue growth (period over period)5 1 (1)1 4 ****6 8 **
Total net revenue margin(4)
8.81 8.43 8.40 8.51 8.45 38 bps36 bps8.55 8.28 27 bps
Net interest margin(5)
7.11 6.70 6.69 6.73 6.69 41 42 6.83 6.59 24 
Return on average assets1.48 0.50 1.08 0.60 1.52 98 (4)1.02 1.20 (18)
Return on average tangible assets(6)
1.53 0.52 1.11 0.62 1.58 101 (5)1.05 1.24 (19)
Return on average common equity(7)
11.99 3.99 9.03 5.03 13.59 800 (160)8.41 10.47 (206)
Return on average tangible common equity(8)
16.42 5.59 12.67 7.20 19.59 1,083 (317)11.69 15.01 (332)
Efficiency ratio(9)
53.07 52.03 54.64 60.14 51.89 104 118 53.24 53.51 (27)
Operating efficiency ratio(10)
41.95 40.84 43.89 46.95 41.51 111 44 42.22 43.41 (119)
Effective income tax rate for continuing operations 19.9 8.3 19.1 24.2 19.4 1,160 50 17.9 18.2 (30)
Employees (period-end, in thousands)52.5 52.1 51.3 52.0 54.2 1%(3)%52.5 54.2 (3)%
Credit Quality Metrics
Allowance for credit losses$16,534$16,649$15,380$15,296$14,955(1)%11%$16,534$14,95511%
Allowance coverage ratio5.16 %5.23 %4.88 %4.77 %4.75 %(7)bps41 bps5.16 %4.75 %41 bps
Net charge-offs$2,604$2,644$2,616$2,533$1,999(2)%30%$7,864$5,88134%
Net charge-off rate(11)
3.27 %3.36 %3.33 %3.21 %2.56 %(9)bps71 bps3.32 %2.53 %79 bps
30+ day performing delinquency rate3.58 3.36 3.40 3.71 3.42 22 16 3.58 3.42 16 
30+ day delinquency rate3.89 3.63 3.67 3.99 3.71 26 18 3.89 3.71 18 
Capital Ratios(12)
Common equity Tier 1 capital
13.6 %13.2 %13.1 %12.9 %13.0 %40 bps60 bps13.6 %13.0 %60 bps
Tier 1 capital14.9 14.5 14.4 14.2 14.3 40 60 14.9 14.3 60 
Total capital16.6 16.3 16.3 16.0 16.2 30 40 16.6 16.2 40 
Tier 1 leverage11.6 11.3 11.3 11.2 11.2 30 40 11.6 11.2 40 
Tangible common equity (“TCE”)(13)
9.1 8.2 8.1 8.2 7.3 90 180 9.1 7.3 180 
    
 
3

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3: Consolidated Statements of Income
2024 Q3Nine Months Ended September 30,
(Dollars in millions, except as noted)20242024202420232023202420232024 vs.
Q3Q2Q1Q4Q3Q2Q3202420232023
Interest income:
Loans, including loans held for sale$10,547 $9,993 $9,920 $9,934 $9,696 6 %9 %$30,460 $27,476 11 %
Investment securities733 700 687 669 627 5 17 2,120 1,881 13 
Other580 587 570 542 550 (1)5 1,737 1,436 21 
Total interest income11,860 11,280 11,177 11,145 10,873 5 9 34,317 30,793 11 
Interest expense:
Deposits2,945 2,874 2,812 2,745 2,611 2 13 8,631 6,744 28 
Securitized debt obligations234 258 261 263 249 (9)(6)753 696 8 
Senior and subordinated notes596 591 606 608 579 1 3 1,793 1,596 12 
Other borrowings9 11 10 10 11 (18)(18)30 35 (14)
Total interest expense3,784 3,734 3,689 3,626 3,450 1 10 11,207 9,071 24 
Net interest income8,076 7,546 7,488 7,519 7,423 7 9 23,110 21,722 6 
Provision for credit losses2,482 3,909 2,683 2,857 2,284 (37)9 9,074 7,569 20 
Net interest income after provision for credit losses5,594 3,637 4,805 4,662 5,139 54 9 14,036 14,153 (1)
Non-interest income:
Interchange fees, net1,228 1,249 1,145 1,207 1,234 (2)— 3,622 3,586 1 
Service charges and other customer-related fees501 459 462 424 453 9 11 1,422 1,243 14 
Net securities gains (losses)(35)— — (34)— ****(35)— **
Other244 252 307 390 256 (3)(5)803 730 10 
Total non-interest income1,938 1,960 1,914 1,987 1,943 (1)— 5,812 5,559 5 
Non-interest expense:
Salaries and associate benefits2,391 2,200 2,478 2,284 2,274 9 5 7,069 7,018 1 
Occupancy and equipment587 551 554 628 518 7 13 1,692 1,532 10 
Marketing1,113 1,064 1,010 1,254 972 5 15 3,187 2,755 16 
Professional services402 316 262 359 295 27 36 980 909 8 
Communications and data processing358 355 351 345 344 1 4 1,064 1,038 3 
Amortization of intangibles20 19 19 22 24 5 (17)58 60 (3)
Other443 441 463 825 433 — 2 1,347 1,287 5 
Total non-interest expense5,314 4,946 5,137 5,717 4,860 7 9 15,397 14,599 5 
Income from continuing operations before income taxes2,218 651 1,582 932 2,222 **— 4,451 5,113 (13)
Income tax provision441 54 302 226 432 **2 797 932 (14)
Net income1,777 597 1,280 706 1,790 198 (1)3,654 4,181 (13)
Dividends and undistributed earnings allocated to participating securities(2)
(28)(9)(23)(10)(28)**— (60)(67)(10)
Preferred stock dividends(57)(57)(57)(57)(57)— — (171)(171)— 
Net income available to common stockholders$1,692 $531 $1,200 $639 $1,705 **(1)$3,423 $3,943 (13)
4

2024 Q3Nine Months Ended September 30,
20242024202420232023202420232024 vs.
Q3Q2Q1Q4Q3Q2Q3202420232023
Basic earnings per common share:(2)
Net income per basic common share$4.42 $1.39 $3.14 $1.67 $4.46 **(1)%$8.94 $10.31 (13)%
Diluted earnings per common share:(2)
Net income per diluted common share$4.41 $1.38 $3.13 $1.67 $4.45 **(1)%$8.92 $10.28 (13)%
Weighted-average common shares outstanding (in millions):
Basic common shares383.0 383.1 382.2 381.9 382.5 — — 382.8 382.7 — 
Diluted common shares383.7 383.9 383.4 382.8 383.3 — — 383.7 383.6 — 
5

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets
2024 Q3
2024202420242023202320242023
(Dollars in millions)Q3Q2Q1Q4Q3Q2Q3
Assets:
Cash and cash equivalents:
Cash and due from banks$3,976 $5,298 $4,671 $4,903 $4,620 (25)%(14)%
Interest-bearing deposits and other short-term investments45,322 40,116 46,357 38,394 40,249 13 13 
Total cash and cash equivalents49,298 45,414 51,028 43,297 44,869 9 10 
Restricted cash for securitization investors421 2,415 474 458 435 (83)(3)
Securities available for sale83,500 79,250 78,398 79,117 74,837 5 12 
Loans held for investment:
Unsecuritized loans held for investment292,061 289,124 285,577 289,229 284,953 1 2 
Loans held in consolidated trusts28,182 29,062 29,577 31,243 29,827 (3)(6)
Total loans held for investment320,243 318,186 315,154 320,472 314,780 1 2 
Allowance for credit losses(16,534)(16,649)(15,380)(15,296)(14,955)(1)11 
Net loans held for investment303,709 301,537 299,774 305,176 299,825 1 1 
Loans held for sale96 808 1,631 854 742 (88)(87)
Premises and equipment, net4,440 4,396 4,366 4,375 4,378 1 1 
Interest receivable2,577 2,494 2,514 2,478 2,469 3 4 
Goodwill15,083 15,062 15,062 15,065 15,048 — — 
Other assets27,309 28,642 28,473 27,644 28,832 (5)(5)
Total assets$486,433 $480,018 $481,720 $478,464 $471,435 1 3 
6

2024 Q3
2024202420242023202320242023
(Dollars in millions) Q3Q2Q1Q4Q3Q2Q3
Liabilities:
Interest payable$705 $668 $762 $649 $685 6 %3 %
Deposits:
Non-interest-bearing deposits26,378 27,005 27,617 28,024 28,794 (2)(8)
Interest-bearing deposits327,253 324,437 323,352 320,389 317,217 1 3 
Total deposits353,631 351,442 350,969 348,413 346,011 1 2 
Securitized debt obligations15,881 17,291 17,661 18,043 17,417 (8)(9)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase520 715 568 538 522 (27)— 
Senior and subordinated notes32,911 29,925 32,108 31,248 31,283 10 5 
Other borrowings24 25 24 27 25 (4)(4)
Total other debt33,455 30,665 32,700 31,813 31,830 9 5 
Other liabilities19,836 21,971 21,827 21,457 21,824 (10)(9)
Total liabilities423,508 422,037 423,919 420,375 417,767 — 1 
Stockholders’ equity:
Preferred stock0 0 0 0 0 — — 
Common stock7 7 7 7 7 — — 
Additional paid-in capital, net36,216 36,012 35,808 35,541 35,334 1 2 
Retained earnings63,698 62,211 61,905 60,945 60,529 2 5 
Accumulated other comprehensive loss(6,287)(9,701)(9,534)(8,268)(12,224)(35)(49)
Treasury stock, at cost(30,709)(30,548)(30,385)(30,136)(29,978)1 2 
Total stockholders’ equity62,925 57,981 57,801 58,089 53,668 9 17 
Total liabilities and stockholders’ equity$486,433 $480,018 $481,720 $478,464 $471,435 1 3 

7

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

(1)Total net revenue was reduced by $624 million in Q3 2024, $649 million in Q2 2024, $630 million in Q1 2024, $566 million in Q4 2023 and $449 million in Q3 2023 for credit card finance charges and fees charged-off as uncollectible.
(2)Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. 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.
(3)Tangible book value per common share is a non-GAAP measure calculated based on TCE 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.
(4)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.
(5)Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(6)Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average 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.
(7)Return on average common equity is calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.
(8)Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average TCE. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
(9)Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted 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.
(10)Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, 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.
(11)Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
(12)Capital ratios as of the end of Q3 2024 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.
(13)TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
**    Not meaningful.
8

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 6: Average Balances, Net Interest Income and Net Interest Margin
2024 Q32024 Q22023 Q3
(Dollars in millions, except as noted)Average BalanceInterest Income/ Expense
Yield/Rate(1)
Average BalanceInterest Income/ Expense
Yield/Rate(1)
Average BalanceInterest Income/ Expense
Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale$318,715 $10,547 13.24 %$315,823 $9,993 12.66 %$313,461 $9,696 12.37 %
Investment securities90,644 733 3.24 89,501 700 3.13 87,845 627 2.86 
Cash equivalents and other45,125 580 5.14 45,584 587 5.16 42,226 550 5.21 
Total interest-earning assets$454,484 $11,860 10.44 $450,908 $11,280 10.01 $443,532 $10,873 9.81 
Interest-bearing liabilities:
Interest-bearing deposits$324,509 $2,945 3.63 $322,581 $2,874 3.56 $316,032 $2,611 3.30 
Securitized debt obligations15,833 234 5.93 17,452 258 5.91 17,649 249 5.63 
Senior and subordinated notes32,041 596 7.43 30,978 591 7.64 31,522 579 7.36 
Other borrowings and liabilities(2)
2,389 9 1.50 2,502 11 1.73 2,473 11 1.79 
Total interest-bearing liabilities$374,772 $3,784 4.04 $373,513 $3,734 4.00 $367,676 $3,450 3.75 
Net interest income/spread$8,076 6.40 $7,546 6.01 $7,423 6.05 
Impact of non-interest-bearing funding0.71 0.69 0.64 
Net interest margin(3)
7.11 %6.70 %6.69 %
                                                                                                                                                                                                                            
Nine Months Ended September 30,
20242023
(Dollars in millions, except as noted)Average BalanceInterest Income/ Expense
Yield/Rate(1)
Average BalanceInterest Income/ Expense
Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale$316,707 $30,460 12.82 %$310,657 $27,476 11.79 %
Investment securities89,580 2,120 3.16 89,259 1,881 2.81 
Cash equivalents and other44,791 1,737 5.17 39,405 1,436 4.86 
Total interest-earning assets$451,078 $34,317 10.14 $439,321 $30,793 9.35 
Interest-bearing liabilities:
Interest-bearing deposits$321,856 $8,631 3.58 $312,702 $6,744 2.88 
Securitized debt obligations17,036 753 5.90 17,558 696 5.28 
Senior and subordinated notes31,744 1,793 7.53 30,611 1,596 6.95 
Other borrowings and liabilities(2)
2,422 30 1.67 2,410 35 1.94 
Total interest-bearing liabilities$373,058 $11,207 4.01 $363,281 $9,071 3.33 
Net interest income/spread$23,110 6.14 $21,722 6.02 
Impact of non-interest-bearing funding0.69 0.57 
Net interest margin6.83 %6.59 %

9

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics
2024 Q3Nine Months Ended September 30,
2024202420242023202320242023202420232024 vs. 2023
(Dollars in millions, except as noted) Q3Q2Q1Q4Q3Q2Q3
Loans Held for Investment (Period-End)
Credit card:
   Domestic credit card$149,400 $147,065 $143,861 $147,666 $140,320 2 %6 %$149,400 $140,320 6 %
   International card businesses7,251 6,830 6,733 6,881 6,463 6 12 7,251 6,463 12 
Total credit card156,651 153,895 150,594 154,547 146,783 2 7 156,651 146,783 7 
Consumer banking:
   Auto75,505 74,385 73,801 74,075 75,456 2 — 75,505 75,456 — 
   Retail banking1,253 1,278 1,298 1,362 1,388 (2)(10)1,253 1,388 (10)
Total consumer banking76,758 75,663 75,099 75,437 76,844 1 — 76,758 76,844 — 
Commercial banking:
   Commercial and multifamily real estate32,199 32,832 34,272 34,446 35,622 (2)(10)32,199 35,622 (10)
   Commercial and industrial54,635 55,796 55,189 56,042 55,531 (2)(2)54,635 55,531 (2)
Total commercial banking86,834 88,628 89,461 90,488 91,153 (2)(5)86,834 91,153 (5)
Total loans held for investment$320,243 $318,186 $315,154 $320,472 $314,780 1 2 $320,243 $314,780 2 
Loans Held for Investment (Average)
Credit card:
   Domestic credit card$147,021 $143,744 $142,887 $142,112 $137,500 2 %7 %$144,560 $132,889 9 %
   International card businesses6,951 6,723 6,758 6,515 6,549 3 6 6,811 6,306 8 
Total credit card153,972 150,467 149,645 148,627 144,049 2 7 151,371 139,195 9 
Consumer banking:
   Auto74,920 74,098 73,768 74,861 75,740 1 (1)74,264 76,473 (3)
   Retail banking1,262 1,288 1,324 1,377 1,414 (2)(11)1,291 1,469 (12)
Total consumer banking76,182 75,386 75,092 76,238 77,154 1 (1)75,555 77,942 (3)
Commercial banking:
   Commercial and multifamily real estate32,416 33,801 34,310 35,414 35,964 (4)(10)33,505 36,796 (9)
   Commercial and industrial55,685 55,234 55,567 55,611 55,592 1 — 55,496 56,142 (1)
Total commercial banking88,101 89,035 89,877 91,025 91,556 (1)(4)89,001 92,938 (4)
Total average loans held for investment$318,255 $314,888 $314,614 $315,890 $312,759 1 2 $315,927 $310,075 2 
10

2024 Q3Nine Months Ended September 30,
2024202420242023202320242023202420232024 vs. 2023
Q3Q2Q1Q4Q3Q2Q3
Net Charge-Off (Recovery) Rates
Credit card:
   Domestic credit card(4)(5)
5.61 %6.05 %5.94 %5.35 %4.40 %(44)bps121 bps5.86 %4.28 %158 bps
   International card businesses5.23 5.03 5.16 4.94 4.87 20 36 5.14 4.80 34 
Total credit card5.60 6.00 5.90 5.33 4.42 (40)118 5.83 4.30 153 
Consumer banking:
   Auto2.05 1.81 1.99 2.19 1.77 24 28 1.95 1.57 38 
   Retail banking5.43 5.38 4.04 5.68 3.80 5 163 4.94 3.33 161 
Total consumer banking2.11 1.87 2.03 2.25 1.81 24 30 2.00 1.60 40 
Commercial banking:
   Commercial and multifamily real estate0.26 0.11 0.20 0.96 0.27 15 (1)0.19 1.46 (127)
   Commercial and industrial0.20 0.17 0.08 0.26 0.24 3 (4)0.15 0.13 2 
Total commercial banking0.22 0.15 0.13 0.53 0.25 7 (3)0.17 0.66 (49)
Total net charge-offs3.27 3.36 3.33 3.21 2.56 (9)71 3.32 2.53 79 
30+ Day Performing Delinquency Rates
Credit card:
   Domestic credit card4.53 %4.14 %4.48 %4.61 %4.31 %39 bps22 bps4.53 %4.31 %22 bps
   International card businesses4.53 4.63 4.83 4.67 4.43 (10)10 4.53 4.43 10 
Total credit card4.53 4.16 4.50 4.61 4.32 37 21 4.53 4.32 21 
Consumer banking:
   Auto5.61 5.67 5.28 6.34 5.64 (6)(3)5.61 5.64 (3)
   Retail banking0.95 1.57 0.95 1.19 1.07 (62)(12)0.95 1.07 (12)
Total consumer banking5.53 5.60 5.21 6.25 5.55 (7)(2)5.53 5.55 (2)
Nonperforming Loans and Nonperforming Assets Rates(6)(7)
Credit card:
   International card businesses0.15 %0.15 %0.13 %0.13 %0.14 %— 1 bps0.15 %0.14 %1 bps
Total credit card0.01 0.01 0.01 0.01 0.01 — — 0.01 0.01 — 
Consumer banking:
   Auto0.91 0.88 0.79 0.96 0.85 3 bps6 0.91 0.85 6 
   Retail banking2.19 2.81 3.21 3.36 3.28 (62)(109)2.19 3.28 (109)
Total consumer banking0.93 0.92 0.83 1.00 0.89 1 4 0.93 0.89 4 
Commercial banking:
   Commercial and multifamily real estate1.96 1.28 1.58 1.23 1.29 68 67 1.96 1.29 67 
   Commercial and industrial1.32 1.56 1.10 0.60 0.65 (24)67 1.32 0.65 67 
Total commercial banking1.55 1.46 1.28 0.84 0.90 9 65 1.55 0.90 65 
Total nonperforming loans0.65 0.63 0.57 0.48 0.48 2 17 0.65 0.48 17 
Total nonperforming assets0.67 0.64 0.58 0.50 0.50 3 17 0.67 0.50 17 
11

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

Three Months Ended September 30, 2024
Credit CardConsumer Banking
(Dollars in millions) Domestic CardInternational Card BusinessesTotal Credit CardAutoRetail BankingTotal Consumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of June 30, 2024$12,560 $480 $13,040 $2,037 $28 $2,065 $1,544 $16,649 
Charge-offs(2,501)(131)(2,632)(684)(23)(707)(88)(3,427)
Recoveries438 40 478 300 6 306 39 823 
Net charge-offs(2,063)(91)(2,154)(384)(17)(401)(49)(2,604)
Provision for credit losses1,997 87 2,084 335 16 351 35 2,470 
Allowance release for credit losses(66)(4)(70)(49)(1)(50)(14)(134)
Other changes(8)
— 19 19 ————19 
Balance as of September 30, 202412,494 495 12,989 1,988 27 2,015 1,530 16,534 
Reserve for unfunded lending commitments:
Balance as of June 30, 2024————— —129 129 
Provision (benefit) for losses on unfunded lending commitments————— —13 13 
Balance as of September 30, 2024————— —142 142 
Combined allowance and reserve as of September 30, 2024$12,494 $495 $12,989 $1,988 $27 $2,015 $1,672 $16,676 
Nine Months Ended September 30, 2024
Credit CardConsumer Banking
(Dollars in millions) Domestic CardInternational Card BusinessesTotal Credit CardAutoRetail BankingTotal Consumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of December 31, 2023$11,261 $448 $11,709 $2,002 $40 $2,042 $1,545 $15,296 
Charge-offs(7,509)(383)(7,892)(1,941)(62)(2,003)(166)(10,061)
Recoveries1,153 120 1,273 855 14 869 55 2,197 
Net charge-offs(6,356)(263)(6,619)(1,086)(48)(1,134)(111)(7,864)
Provision for credit losses7,589 299 7,888 1,072 35 1,107 96 9,091 
Allowance build (release) for credit losses(9)
1,233 36 1,269 (14)(13)(27)(15)1,227 
Other changes(8)
— 11 11 — — — — 11 
Balance as of September 30, 202412,494 495 12,989 1,988 27 2,015 1,530 16,534 
Reserve for unfunded lending commitments:
Balance as of December 31, 2023————— — 158 158 
Provision (benefit) for losses on unfunded lending commitments————— — (16)(16)
Balance as of September 30, 2024————— — 142 142 
Combined allowance and reserve as of September 30, 2024$12,494 $495 $12,989 $1,988 $27 $2,015 $1,672 $16,676 
12

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial Summary—Business Segment Results

Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
(Dollars in millions)Credit CardConsumer Banking
Commercial Banking(10)
Other(10)
TotalCredit CardConsumer Banking
Commercial Banking(10)
Other(10)
Total
Net interest income (loss)$5,743 $2,028 $596 $(291)$8,076 $16,309 $6,064 $1,804 $(1,067)$23,110 
Non-interest income (loss)1,509 182 292 (45)1,938 4,491 513 844 (36)5,812 
Total net revenue (loss)7,252 2,210 888 (336)10,014 20,800 6,577 2,648 (1,103)28,922 
Provision (benefit) for credit losses2,084 351 48 (1)2,482 7,888 1,107 80 (1)9,074 
Non-interest expense3,367 1,331 495 121 5,314 9,730 3,827 1,493 347 15,397 
Income (loss) from continuing operations before income taxes1,801 528 345 (456)2,218 3,182 1,643 1,075 (1,449)4,451 
Income tax provision (benefit)427 125 82 (193)441 756 388 254 (601)797 
Income (loss) from continuing operations, net of tax$1,374 $403 $263 $(263)$1,777 $2,426 $1,255 $821 $(848)$3,654 
Three Months Ended June 30, 2024
(Dollars in millions) Credit CardConsumer Banking
Commercial Banking(10)
Other(10)
Total
Net interest income (loss)$5,294 $2,025 $609 $(382)$7,546 
Non-interest income1,506 172 271 11 1,960 
Total net revenue (loss)6,800 2,197 880 (371)9,506 
Provision for credit losses3,545 330 34 — 3,909 
Non-interest expense3,134 1,250 483 79 4,946 
Income (loss) from continuing operations before income taxes121 617 363 (450)651 
Income tax provision (benefit)30 146 85 (207)54 
Income (loss) from continuing operations, net of tax$91 $471 $278 $(243)$597 
Three Months Ended September 30, 2023Nine Months Ended September 30, 2023
(Dollars in millions) Credit CardConsumer Banking
Commercial Banking(10)
Other(10)
TotalCredit CardConsumer Banking
Commercial Banking(10)
Other(10)
Total
Net interest income (loss)$5,114 $2,133 $621 $(445)$7,423 $14,498 $6,762 $1,901 $(1,439)$21,722 
Non-interest income (loss)1,513 142 288 — 1,943 4,375 426 757 1 5,559 
Total net revenue (loss)6,627 2,275 909 (445)9,366 18,873 7,188 2,658 (1,438)27,281 
Provision for credit losses1,953 213 116 2 2,284 6,298 747 521 3 7,569 
Non-interest expense3,015 1,262 512 71 4,860 9,073 3,776 1,524 226 14,599 
Income (loss) from continuing operations before income taxes1,659 800 281 (518)2,222 3,502 2,665 613 (1,667)5,113 
Income tax provision (benefit)393 189 67 (217)432 830 629 145 (672)932 
Income (loss) from continuing operations, net of tax$1,266 $611 $214 $(301)$1,790 $2,672 $2,036 $468 $(995)$4,181 

13

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary—Credit Card Business
2024 Q3 vs.Nine Months Ended September 30,
20242024202420232023202420232024 vs.
(Dollars in millions, except as noted) Q3Q2Q1Q4Q3Q2Q3202420232023
Credit Card
Earnings:
Net interest income$5,743 $5,294 $5,272 $5,231 $5,114 8 %12%$16,309 $14,498 12%
Non-interest income1,509 1,506 1,476 1,565 1,513 — — 4,491 4,375 3 
Total net revenue7,252 6,800 6,748 6,796 6,627 7 9 20,800 18,873 10 
Provision for credit losses2,084 3,545 2,259 2,353 1,953 (41)77,888 6,298 25
Non-interest expense3,367 3,134 3,229 3,417 3,015 7 12 9,730 9,073 7 
Income from continuing operations before income taxes1,801 121 1,260 1,026 1,659 **9 3,182 3,502 (9)
Income tax provision427 30 299 241 393 **9 756 830 (9)
Income from continuing operations, net of tax$1,374 $91 $961 $785 $1,266 **9 $2,426 $2,672 (9)
Selected performance metrics:
Period-end loans held for investment$156,651$153,895$150,594$154,547$146,7832 7 $156,651$146,7837 
Average loans held for investment153,972150,467149,645148,627144,0492 7 151,371139,1959 
Average yield on loans outstanding(1)
19.66 %18.79 %18.84 %18.96 %19.02 %87 bps64 bps19.10 %18.40 %70 bps
Total net revenue margin(11)
18.82 18.03 17.99 18.24 18.40 79 42 18.28 18.08 20 
Net charge-off rate5.60 6.00 5.90 5.33 4.42 (40)118 5.83 4.30 153 
30+ day performing delinquency rate4.53 4.16 4.50 4.61 4.32 37 21 4.53 4.32 21 
30+ day delinquency rate4.54 4.17 4.50 4.62 4.32 37 22 4.54 4.32 22 
Nonperforming loan rate(6)
0.01 0.01 0.01 0.01 0.01 — — 0.01 0.01 — 
Purchase volume(12)
$166,203$165,143$150,171$162,055$158,6401%5%$481,517$458,2355%
14

2024 Q3 vs.Nine Months Ended September 30,
20242024202420232023202420232024 vs.
(Dollars in millions, except as noted)Q3Q2Q1Q4Q3Q2Q3202420232023
Domestic Card
Earnings:
Net interest income$5,434 $5,001 $4,972 $4,940 $4,827 9%13%$15,407 $13,670 13%
Non-interest income1,438 1,440 1,411 1,498 1,445 — — 4,289 4,174 3 
Total net revenue(13)
6,872 6,441 6,383 6,438 6,272 7 10 19,696 17,844 10 
Provision for credit losses1,997 3,435 2,157 2,238 1,861 (42)77,589 6,030 26
Non-interest expense3,149 2,946 3,025 3,186 2,810 7 12 9,120 8,462 8 
Income from continuing operations before income taxes1,726 60 1,201 1,014 1,601 **8 2,987 3,352 (11)
Income tax provision407 15 283 239 378 **8 705 791 (11)
Income from continuing operations, net of tax$1,319 $45 $918 $775 $1,223 **8 $2,282 $2,561 (11)
Selected performance metrics:
Period-end loans held for investment$149,400$147,065$143,861$147,666$140,3202 6 $149,400$140,3206 
Average loans held for investment147,021143,744142,887142,112137,5002 7 144,560132,8899 
Average yield on loans outstanding(1)
19.62 %18.73 %18.76 %18.88 %18.96 %89 bps66 bps19.04 %18.31 %73 bps
Total net revenue margin(11)(13)
18.67 17.87 17.82 18.07 18.24 80 43 18.12 17.90 22 
Net charge-off rate(4)(5)
5.61 6.05 5.94 5.35 4.40 (44)121 5.86 4.28 158 
30+ day performing delinquency rate4.53 4.14 4.48 4.61 4.31 39 22 4.53 4.31 22 
Purchase volume(12)
$162,281$161,370$146,696$158,290$154,8801%5%$470,347$447,3745%
Refreshed FICO scores:(14)
Greater than 66069 %69 %68 %68 %69 %— — 69 %69 %— 
660 or below31 31 32 32 31 — — 31 31 — 
Total100 %100 %100 %100 %100 %100 %100 %
    

15

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Financial & Statistical Summary—Consumer Banking Business
2024 Q3 vs.Nine Months Ended September 30,
20242024202420232023202420232024 vs.
(Dollars in millions, except as noted)Q3Q2Q1Q4Q3Q2Q3202420232023
Consumer Banking
Earnings:
Net interest income$2,028 $2,025 $2,011 $1,951 $2,133 —(5)%$6,064 $6,762 (10)%
Non-interest income182 172 159 163 142 6%28 513 426 20 
Total net revenue2,210 2,197 2,170 2,114 2,275 1 (3)6,577 7,188 (9)
Provision for credit losses351 330 426 422 213 6 651,107 747 48
Non-interest expense1,331 1,250 1,246 1,402 1,262 6 5 3,827 3,776 1 
Income from continuing operations before income taxes528 617 498 290 800 (14)(34)1,643 2,665 (38)
Income tax provision125 146 117 68 189 (14)(34)388 629 (38)
Income from continuing operations, net of tax$403 $471 $381 $222 $611 (14)(34)$1,255 $2,036 (38)
Selected performance metrics:
Period-end loans held for investment$76,758$75,663$75,099$75,437$76,8441 — $76,758$76,844— 
Average loans held for investment76,18275,38675,09276,23877,1541 (1)75,55577,942(3)
Average yield on loans held for investment(1)
8.88 %8.54 %8.33 %8.17 %7.97 %34 bps91 bps8.59 %7.67 %92 bps
Auto loan originations$9,158$8,463$7,522$6,157$7,4528%23%$25,143$20,82321%
Period-end deposits309,569305,422300,806296,171290,7891 6 309,569290,7896 
Average deposits306,121300,794294,448291,486287,4572 6 300,475283,9916 
Average deposits interest rate3.33 %3.22 %3.15 %3.06 %2.85 %11 bps48 bps3.23 %2.43 %80 bps
Net charge-off rate2.11 1.87 2.03 2.25 1.81 24 30 2.00 1.60 40 
30+ day performing delinquency rate5.53 5.60 5.21 6.25 5.55 (7)(2)5.53 5.55 (2)
30+ day delinquency rate6.31 6.35 5.86 7.08 6.27 (4)4 6.31 6.27 4 
Nonperforming loan rate(6)
0.93 0.92 0.83 1.00 0.89 1 4 0.93 0.89 4 
Nonperforming asset rate(7)
1.01 0.99 0.91 1.09 0.96 2 5 1.01 0.96 5 
Auto—At origination FICO scores:(15)
Greater than 66053 %53 %53 %53 %52 %— 1%53 %52 %1%
621 - 66020 20 20 20 20 — — 20 20 — 
620 or below27 27 27 27 28 — (1)27 28 (1)
Total100 %100 %100 %100 %100 %100 %100 %
16

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12: Financial & Statistical Summary—Commercial Banking Business
2024 Q3 vs.Nine Months Ended September 30,
20242024202420232023202420232024 vs.
(Dollars in millions, except as noted) Q3Q2Q1Q4Q3Q2Q3202420232023
Commercial Banking
Earnings:
Net interest income$596 $609 $599 $617 $621 (2)%(4)%$1,804$1,901(5)%
Non-interest income292 271 281 245 288 8 1 84475711 
Total net revenue(10)
888 880 880 862 909 1 (2)2,6482,658— 
Provision (benefit) for credit losses48 34 (2)84 116 41 (59)80521(85)
Non-interest expense495 483 515 487 512 2 (3)1,4931,524(2)
Income from continuing operations before income taxes345 363 367 291 281 (5)23 1,07561375 
Income tax provision82 85 87 68 67 (4)22 25414575 
Income from continuing operations, net of tax$263 $278 $280 $223 $214 (5)23 $821$46875 
Selected performance metrics:
Period-end loans held for investment$86,834$88,628$89,461$90,488$91,153(2)(5)$86,834$91,153(5)
Average loans held for investment 88,10189,03589,87791,02591,556(1)(4)89,00192,938(4)
Average yield on loans held for investment(1)(10)
7.25 %7.23 %7.14 %7.24 %7.16 %2 bps9 bps7.21 %6.73 %48 bps
Period-end deposits$30,598$29,210$31,082$32,712$36,0355%(15)%$30,598$36,035(15)%
Average deposits30,36530,81031,84434,52537,279(1)(19)31,00438,383(19)
Average deposits interest rate2.55 %2.55 %2.65 %2.79 %2.93 %— (38)bps2.58 %2.65 %(7)bps
Net charge-off rate0.22 0.15 0.13 0.53 0.25 7 bps(3)0.17 0.66 (49)
Nonperforming loan rate(6)
1.55 1.46 1.28 0.84 0.90 9 65 1.55 0.90 65 
Nonperforming asset rate(7)
1.55 1.46 1.28 0.84 0.90 9 65 1.55 0.90 65 
Risk category:(16)
Noncriticized$78,835$79,695$80,804$81,758$82,968(1)%(5)%$78,835$82,968(5)%
Criticized performing6,6517,6397,5097,9697,363(13)(10)6,6517,363(10)
Criticized nonperforming1,3481,2941,1487618224 64 1,34882264 
Total commercial banking loans held for investment$86,834$88,628$89,461$90,488$91,153(2)(5)$86,834$91,153(5)
Risk category as a percentage of period-end loans held for investment:(16)
Noncriticized90.79 %89.92 %90.33 %90.35 %91.02 %87 bps(23)bps90.79 %91.02 %(23)bps
Criticized performing7.66 8.62 8.39 8.81 8.08 (96)(42)7.66 8.08 (42)
Criticized nonperforming1.55 1.46 1.28 0.84 0.90 9 65 1.55 0.90 65 
Total commercial banking loans100.00 %100.00 %100.00 %100.00 %100.00 %100.00 %100.00 %
17

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Financial & Statistical Summary—Other and Total
2024 Q3 vs.Nine Months Ended September 30,
20242024202420232023202420232024 vs.
(Dollars in millions)Q3Q2Q1Q4Q3Q2Q3202420232023
Other
Earnings:
Net interest loss$(291)$(382)$(394)$(280)$(445)(24)%(35)%$(1,067)$(1,439)(26)%
Non-interest income (loss)(45)11(2)14—****(36)1**
Total net loss(10)
(336)(371)(396)(266)(445)(9)(24)(1,103)(1,438)(23)
Provision (benefit) for credit losses(1)——(2)2****(1)3**
Non-interest expense(17)(18)
1217914741171537034722654
Loss from continuing operations before income taxes(456)(450)(543)(675)(518)1(12)(1,449)(1,667)(13)
Income tax benefit(193)(207)(201)(151)(217)(7)(11)(601)(672)(11)
Loss from continuing operations, net of tax$(263)$(243)$(342)$(524)$(301)8(13)$(848)$(995)(15)
Selected performance metrics:
Period-end deposits$13,464 $16,810 $19,081 $19,530 $19,187 (20)(30)$13,464 $19,187 (30)
Average deposits14,639 17,884 19,365 19,317 20,277 (18)(28)17,286 20,582 (16)
Total
Earnings:
Net interest income$8,076 $7,546 $7,488 $7,519 $7,423 7%9%$23,110 $21,722 6%
Non-interest income1,938 1,960 1,914 1,987 1,943 (1)—5,812 5,559 5
Total net revenue10,014 9,506 9,402 9,506 9,366 5728,922 27,281 6
Provision for credit losses2,482 3,909 2,683 2,857 2,284 (37)99,074 7,569 20
Non-interest expense5,314 4,946 5,137 5,717 4,860 7915,397 14,599 5
Income from continuing operations before income taxes2,218 651 1,582 932 2,222 **—4,451 5,113 (13)
Income tax provision441 54 302 226 432 **2797 932 (14)
Income from continuing operations, net of tax$1,777 $597 $1,280 $706 $1,790 198(1)$3,654 $4,181 (13)
Selected performance metrics:
Period-end loans held for investment$320,243 $318,186 $315,154 $320,472 $314,780 12$320,243 $314,780 2
Average loans held for investment318,255 314,888 314,614 315,890 312,759 12315,927 310,075 2
Period-end deposits353,631 351,442 350,969 348,413 346,011 12353,631 346,011 2
Average deposits351,125 349,488 345,657 345,328 345,013 —2348,765 342,956 2
18

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)

(1)Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing. Average yield is calculated using whole dollar values for average balances and interest income/expense. Accordingly, total interest earning assets less total interest bearing liabilities may not total net interest income/spread.
(2)Includes amounts related to entities that provide capital to low-income and rural communities of $2.0 billion, $2.1 billion and $2.0 billion for the third quarter, second quarter and first nine months of 2024, respectively, and $1.9 billion and $1.8 billion for the third quarter and first nine months of 2023, respectively. Related interest expense was $7 million, $8 million and $23 million for the third quarter, second quarter and first nine months of 2024, respectively, and $8 million and $24 million for the third quarter and first nine months of 2023, respectively.
(3)The termination of our Walmart program agreement, effective May 21, 2024, (“Walmart Program Termination”) increased net interest margin by 22 basis points and 10 basis points in the third quarter and second quarter of 2024, respectively. Excluding this impact, the net interest margin would have been 6.89% and 6.60% in the third quarter and second quarter of 2024, respectively.
(4)The Walmart Program Termination increased the Domestic Card net charge-off rate by 38 basis points and 19 basis points for Q3 2024 and Q2 2024, respectively. Excluding this impact, the Domestic Card net charge-off rate would have been 5.23% and 5.86% for Q3 2024 and Q2 2024, respectively.
(5)In December 2023, we recognized $18 million of incremental net charge-offs on certain loans in hardship programs from the one-time impact of operational delays, which increased the Q4 2023 net charge-off rate by approximately 5 basis points. Excluding this impact, the Q4 2023 net charge-off rate would have been 5.30%.
(6)Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category. For Commercial Banking, loans categorized as nonperforming are considered criticized nonperforming.
(7)Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.
(8)Primarily represents foreign currency translation adjustments.
(9)The Walmart Program Termination resulted in an allowance for credit losses build in Domestic Card of $826 million in the second quarter of 2024.
(10)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking 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.
(11)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.
(12)Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.
(13)The Walmart Program Termination increased Domestic Card net revenue margin by 51 basis points and 10 basis points in the third quarter and second quarter of 2024, respectively. Excluding this impact, the Domestic Card net revenue margin would have been 18.16% and 17.77% in the third quarter and second quarter of 2024, respectively.
(14)Percentages represent period-end loans held for investment in each credit score category. Domestic Card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed 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.
(15)Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit 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.
(16)Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.
(17)Includes the impact of ($9 million), $8 million, $42 million and $289 million FDIC special assessment in Q3 2024, Q2 2024, Q1 2024 and Q4 2023, respectively.
(18)Includes the impact of $63 million and $31 million in Discover integration expenses in Q3 2024 and Q2 2024, respectively, as well as any charges incurred as a result of restructuring activities for the periods presented.
**    Not meaningful.
19

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1)
Basel III Standardized Approach
(Dollars in millions, except as noted) September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
Regulatory Capital Metrics
Common equity excluding AOCI$64,966$63,435$63,088$62,710$62,245
Adjustments:
AOCI, net of tax(2)
58131427(9)
Goodwill, net of related deferred tax liabilities(14,816)(14,800)(14,804)(14,811)(14,797)
Other Intangible and deferred tax assets, net of deferred tax liabilities(252)(271)(291)(311)(333)
Common equity Tier 1 capital$49,956$48,377$48,007$47,615$47,106
Tier 1 capital$54,801$53,222$52,852$52,460$51,952
Total capital(3)
61,15059,87559,48459,12458,844
Risk-weighted assets368,096366,959366,161369,206362,962
Adjusted average assets(4)
473,146470,915468,030467,553464,286
Capital Ratios
Common equity Tier 1 capital(5)
13.6%13.2%13.1%12.9%13.0%
Tier 1 capital(6)
14.914.514.414.214.3
Total capital(7)
16.616.316.216.016.2
Tier 1 leverage(4)
11.611.311.311.211.2
TCE(8)
9.18.28.18.27.3


20

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, however, they may not be comparable to similarly-titled measures reported by other companies. 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.
20242024202420232023Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)Q3Q2Q1Q4Q320242023
Adjusted diluted earnings per share (“EPS”):
Net income available to common stockholders (GAAP)$1,692$531$1,200$639$1,705$3,423$3,943
Allowance build for Walmart program agreement loss sharing termination—826———826—
Walmart program agreement termination contra revenue impact—27———27—
Discover integration expenses6331———94—
FDIC special assessment(9)842289—41—
Adjusted net income available to common stockholders before income tax impacts (non-GAAP)1,7461,4231,2429281,7054,4113,943
Income tax impacts(13)(218)(10)(70)—(241)—
Adjusted net income available to common stockholders (non-GAAP)$1,733$1,205$1,232$858$1,705$4,170$3,943
Diluted weighted-average common shares outstanding (in millions) (GAAP)383.7383.9383.4382.8383.3383.7383.6
Diluted EPS (GAAP)$4.41$1.38$3.13$1.67$4.45$8.92$10.28
Impact of adjustments noted above0.101.760.080.57—1.94—
Adjusted diluted EPS (non-GAAP)$4.51$3.14$3.21$2.24$4.45$10.86$10.28
Adjusted efficiency ratio:
Non-interest expense (GAAP)$5,314$4,946$5,137$5,717$4,860$15,397$14,599
Discover integration expenses(63)(31)———(94)—
FDIC special assessment9(8)(42)(289)—(41)—
Adjusted non-interest expense (non-GAAP)$5,260$4,907$5,095$5,428$4,860$15,262$14,599
Total net revenue (GAAP)$10,014$9,506$9,402$9,506$9,366$28,922$27,281
Walmart program agreement termination contra revenue impact—27———27—
Adjusted net revenue (non-GAAP)$10,014$9,533$9,402$9,506$9,366$28,949$27,281
Efficiency ratio (GAAP)53.07%52.03%54.64%60.14%51.89%53.24%53.51%
Impact of adjustments noted above(54)bps(56)bps(45)bps(304)bps—bps(52)bps—bps
Adjusted efficiency ratio (non-GAAP)52.53%51.47%54.19%57.10%51.89%52.72%53.51%
Adjusted operating efficiency ratio:
Operating expense (GAAP)$4,201$3,882$4,127$4,463$3,888$12,210$11,844
21

20242024202420232023Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)Q3Q2Q1Q4Q320242023
Discover integration expenses(63)(31)———(94)—
FDIC special assessment9(8)(42)(289)—(41)—
Adjusted operating expense (non-GAAP)$4,147$3,843$4,085$4,174$3,888$12,075$11,844
Total net revenue (GAAP)10,014$9,506$9,402$9,506$9,366$28,922$27,281
Walmart program agreement termination contra revenue impact—27———27—
Adjusted net revenue (non-GAAP)$10,014$9,533$9,402$9,506$9,366$28,949$27,281
Operating efficiency ratio (GAAP)41.95%40.84%43.89%46.95%41.51%42.22%43.41%
Impact of adjustments noted above(54)bps(53)bps(44)bps(304)bps—bps(51)bps—bps
Adjusted operating efficiency ratio (non-GAAP)41.41%40.31%43.45%43.91%41.51%41.71%43.41%
        


22

Reconciliation of Non-GAAP Measures

The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following table presents reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.

20242024202420232023
(Dollars in millions)Q3Q2Q1Q4Q3
Pre- Provision Earnings
Total net revenue$10,014 $9,506 $9,402 $9,506 $9,366 
Non-interest expense(5,314)(4,946)(5,137)(5,717)(4,860)
Pre-provision earnings(9)
$4,700 $4,560 $4,265 $3,789 $4,506 
Tangible Common Equity (Period-End)
Stockholders’ equity$62,925 $57,981 $57,801 $58,089 $53,668 
Goodwill and other intangible assets(10)
(15,214)(15,226)(15,257)(15,289)(15,308)
Noncumulative perpetual preferred stock(4,845)(4,845)(4,845)(4,845)(4,845)
Tangible common equity(11)
$42,866 $37,910 $37,699 $37,955 $33,515 
Tangible Common Equity (Average)
Stockholders’ equity$61,289 $58,107 $57,998 $55,632 $55,012 
Goodwill and other intangible assets(10)
(15,225)(15,249)(15,280)(15,304)(15,348)
Noncumulative perpetual preferred stock(4,845)(4,845)(4,845)(4,845)(4,845)
Tangible common equity(11)
$41,219 $38,013 $37,873 $35,483 $34,819 
Return on Tangible Common Equity (Average)
Net income available to common stockholders$1,692 $531 $1,200 $639 $1,705 
Tangible common equity (Average)
41,219 38,013 37,873 35,483 34,819 
Return on tangible common equity(11)(12)
16.42 %5.59 %12.67 %7.20 %19.59 %
Tangible Assets (Period-End)
Total assets$486,433 $480,018 $481,720 $478,464 $471,435 
Goodwill and other intangible assets(10)
(15,214)(15,226)(15,257)(15,289)(15,308)
Tangible assets(11)
$471,219 $464,792 $466,463 $463,175 $456,127 
23

20242024202420232023
(Dollars in millions)Q3Q2Q1Q4Q3
Tangible Assets (Average)
Total assets$481,219 $477,285 $474,995 $472,594 $469,860 
Goodwill and other intangible assets(10)
(15,225)(15,249)(15,280)(15,304)(15,348)
Tangible assets(11)
$465,994 $462,036 $459,715 $457,290 $454,512 
Return on Tangible Assets (Average)
Net income$1,777 $597 $1,280 $706 $1,790 
Tangible Assets (Average)465,994 462,036 459,715 457,290 454,512 
Return on tangible assets(11)(13)
1.53%0.52%1.11%0.62%1.58%
TCE Ratio
Tangible common equity (Period-end)$42,866 $37,910 $37,699 $37,955 $33,515 
Tangible Assets (Period-end)471,219 464,792 466,463 463,175 456,127 
TCE Ratio(11)
9.1%8.2%8.1%8.2%7.3%
Tangible Book Value per Common Share
Tangible common equity (Period-end)$42,866 $37,910 $37,699 $37,955 $33,515 
Outstanding Common Shares381.5 381.9 382.1 380.4 381.0 
Tangible book value per common share(11)
$112.36 $99.28 $98.67 $99.78 $87.97 
__________
(1)Regulatory capital metrics and capital ratios as of September 30, 2024 are preliminary and therefore subject to change.    
(2)Excludes certain components of AOCI in accordance with rules applicable to Category III institutions.
(3)Total capital equals the sum of Tier 1 capital and Tier 2 capital.
(4)Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.
(5)Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.
(6)Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(7)Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.
(8)TCE ratio is a Non-GAAP measure calculated based on TCE divided by tangible assets.
(9)Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.
(10)Includes impact of related deferred taxes.
(11)Management believes that this financial metric is useful in assessing capital adequacy and the level of returns generated.
(12)Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average TCE.
(13)Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period.
24