Capital One Reports First Quarter 2022 Net Income of $2.4 billion, or $5.62 per share

Rhea-AI Summary

Capital One Financial Corporation reported a net income of $2.4 billion in Q1 2022, equating to $5.62 per diluted share, showing stability compared to Q4 2021 but a decline from $3.3 billion or $7.03 per share in Q1 2021. Total net revenue increased by 1% to $8.2 billion, while non-interest expenses decreased by 3%. The provision for credit losses rose by $296 million to $677 million. The company's capital ratio stands at 12.7% under Basel III, with a total deposit increase of $2.4 billion to $313.4 billion.

Positive

• Net income stable at $2.4 billion.
• Total net revenue increased by 1% to $8.2 billion.
• Non-interest expenses decreased by 3%.

Negative

• Net income decreased from $3.3 billion in Q1 2021.
• Provision for credit losses increased by $296 million to $677 million.
• Credit card loans decreased by $810 million, or 1%.

MCLEAN, Va., April 26, 2022 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2022 of $2.4 billion, or $5.62 per diluted common share, compared with net income of $2.4 billion, or $5.41 per diluted common share in the fourth quarter of 2021, and with net income of $3.3 billion, or $7.03 per diluted common share in the first quarter of 2021.

"We continued to deliver strong growth across our businesses in the first quarter," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "We remain well-positioned to capitalize on opportunities that emerge as sweeping digital change and modern technology transform banking."

The quarter included the following notable item:

(Dollars in millions, except per share data)	Pre-Tax Impact	Diluted EPS Impact
Gain on sale of partnership card portfolios	$                   192	$                   0.35

All comparisons below are for the first quarter of 2022 compared with the fourth quarter of 2021 unless otherwise noted.

First Quarter 2022 Income Statement Summary:

• Total net revenue increased 1 percent to $8.2 billion.
• Total non-interest expense decreased 3 percent to $4.6 billion:
• 8 percent decrease in marketing.
• 1 percent decrease in operating expenses.
• Pre-provision earnings increased 5 percent to $3.6 billion.⁽¹⁾
• Provision for credit losses increased $296 million to $677 million:
• Net charge-offs of $767 million.
• $119 million loan reserve release.
• Net interest margin of 6.49 percent, a decrease of 11 basis points.
• Efficiency ratio of 55.68 percent.
• Operating efficiency ratio of 44.45 percent.

First Quarter 2022 Balance Sheet Summary:

• Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.7 percent at March 31, 2022.
• Period-end loans held for investment in the quarter increased $3.1 billion, or 1 percent, to $280.5 billion.
• Credit Card period-end loans decreased $810 million, or 1 percent, to $114.0 billion.
• Domestic Card period-end loans decreased $736 million, or 1 percent, to $108.0 billion.
• Consumer Banking period-end loans increased $2.7 billion, or 3 percent, to $80.3 billion.
• Auto period-end loans increased $2.8 billion, or 4 percent, to $78.6 billion.
• Commercial Banking period-end loans increased $1.3 billion, or 1 percent, to $86.2 billion.
• Average loans held for investment in the quarter increased $8.2 billion, or 3 percent, to $275.3 billion.
• Credit Card average loans increased $2.9 billion, or 3 percent, to $111.5 billion.
• Domestic Card average loans increased $2.8 billion, or 3 percent, to $105.5 billion.
• Consumer Banking average loans increased $1.2 billion, or 2 percent, to $78.7 billion.
• Auto average loans increased $1.6 billion, or 2 percent, to $76.9 billion.
• Commercial Banking average loans increased $4.0 billion, or 5 percent, to $85.2 billion.
• Period-end total deposits increased $2.4 billion, or 1 percent, to $313.4 billion, while average deposits increased $2.3 billion, or 1 percent, to $309.6 billion.
• Interest-bearing deposits rate paid decreased 1 basis point to 0.32 percent.

(1)

Pre-provision earnings is calculated based on the sum of net interest income and non-interest income, less non-interest expense for the period. Management believes that this financial metric is useful in enabling investors and others to assess the Company's ability to generate income to cover credit losses through a credit cycle, which can vary significantly between periods.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 26, 2022 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page (www.capitalone.com). Under "About," choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through May 10, 2022 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2021.

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 $313.4 billion in deposits and $434.2 billion in total assets as of March 31, 2022. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

 

			Exhibit 99.2
Capital One Financial Corporation Financial Supplement(1)(2) First Quarter 2022 Table of Contents
Capital One Financial Corporation Consolidated Results			Page
	Table 1:	Financial Summary—Consolidated	1
	Table 2:	Selected Metrics—Consolidated	3
	Table 3:	Consolidated Statements of Income	4
	Table 4:	Consolidated Balance Sheets	6
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	8
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	9
	Table 7:	Loan Information and Performance Statistics	10
	Table 8:	Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity	12
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	13
	Table 10:	Financial & Statistical Summary—Credit Card Business	14
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	16
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	17
	Table 13:	Financial & Statistical Summary—Other and Total	18
Other
	Table 14:	Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)	19
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	20

__________

(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 March 31, 2022 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.

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 1: Financial Summary—Consolidated
												2022 Q1 vs.
(Dollars in millions, except per share data and as noted)		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
Income Statement
Net interest income		$      6,397		$     6,450		$      6,156		$      5,743		$      5,822		(1)%		10%
Non-interest income		1,776		1,668		1,674		1,631		1,291		6		38
Total net revenue(1)		8,173		8,118		7,830		7,374		7,113		1		15
Provision (benefit) for credit losses		677		381		(342)		(1,160)		(823)		78		**
Non-interest expense:
Marketing		918		999		751		620		501		(8)		83
Operating expense		3,633		3,679		3,435		3,346		3,239		(1)		12
Total non-interest expense		4,551		4,678		4,186		3,966		3,740		(3)		22
Income from continuing operations before income taxes		2,945		3,059		3,986		4,568		4,196		(4)		(30)
Income tax provision		542		633		882		1,031		869		(14)		(38)
Income from continuing operations, net of tax		2,403		2,426		3,104		3,537		3,327		(1)		(28)
Loss from discontinued operations, net of tax		—		(1)		—		(1)		(2)		**		**
Net income		2,403		2,425		3,104		3,536		3,325		(1)		(28)
Dividends and undistributed earnings allocated to participating securities(2)		(28)		(21)		(26)		(30)		(28)		33		—
Preferred stock dividends		(57)		(74)		(79)		(60)		(61)		(23)		(7)
Issuance cost for redeemed preferred stock(3)		—		(34)		(12)		—		—		**		—
Net income available to common stockholders		$      2,318		$     2,296		$      2,987		$      3,446		$     3,236		1		(28)
Common Share Statistics
Basic earnings per common share:(2)
Net income from continuing operations		$        5.65		$       5.43		$        6.81		$        7.65		$       7.06		4%		(20)%
Net income per basic common share		$        5.65		$       5.43		$        6.81		$        7.65		$       7.06		4		(20)
Diluted earnings per common share:(2)
Net income from continuing operations		$        5.62		$       5.41		$        6.78		$        7.62		$       7.03		4%		(20)%
Net income per diluted common share		$        5.62		$       5.41		$        6.78		$        7.62		$       7.03		4		(20)
Weighted-average common shares outstanding (in millions):
Basic		410.4		422.5		438.8		450.6		458.6		(3)%		(11)%
Diluted		412.2		424.3		440.5		452.3		460.1		(3)		(10)
Common shares outstanding (period-end, in millions)		399.0		413.9		430.4		446.1		456.8		(4)		(13)
Dividends declared and paid per common share		$        0.60		$       0.60		$        1.20		$        0.40		$       0.40		—		50
Tangible book value per common share (period-end)(4)		91.77		99.74		99.60		97.20		90.96		(8)		1
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions)
Balance Sheet (Period-End)
Loans held for investment		$  280,466		$  277,340		$  261,390		$  249,597		$  243,131		1%		15%
Interest-earning assets		398,241		397,341		387,208		387,295		392,485		—		1
Total assets		434,195		432,381		425,377		423,420		425,175		—		2
Interest-bearing deposits		275,648		272,937		269,134		271,314		276,325		1		—
Total deposits		313,429		310,980		305,938		306,308		310,328		1		1
Borrowings		45,358		43,086		37,501		36,343		38,450		5		18
Common equity		51,499		56,184		57,632		58,136		56,341		(8)		(9)
Total stockholders' equity		56,345		61,029		63,544		64,624		61,188		(8)		(8)
Balance Sheet (Average Balances)
Loans held for investment		$  275,342		$  267,159		$  253,101		$  246,463		$  243,937		3%		13%
Interest-earning assets		394,082		390,868		387,766		390,129		388,572		1		1
Total assets		430,372		427,845		424,506		424,099		421,808		1		2
Interest-bearing deposits		271,823		269,951		269,278		273,476		273,358		1		(1)
Total deposits		309,597		307,272		305,035		308,217		305,056		1		1
Borrowings		42,277		39,943		37,464		37,054		39,911		6		6
Common equity		54,591		56,946		58,230		56,885		55,775		(4)		(2)
Total stockholders' equity		59,437		62,498		64,682		62,376		60,623		(5)		(2)

        

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 2: Selected Metrics—Consolidated
												2022 Q1 vs.
(Dollars in millions, except as noted)		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
Performance Metrics
Net interest income growth (period over period)		(1)%		5%		7%		(1)%		(1)%		**		**
Non-interest income growth (period over period)		6		—		3		26		(12)		**		**
Total net revenue growth (period over period)		1		4		6		4		(3)		**		**
Total net revenue margin(5)		8.30		8.31		8.08		7.56		7.32		(1) bps		98 bps
Net interest margin(6)		6.49		6.60		6.35		5.89		5.99		(11)		50
Return on average assets		2.23		2.27		2.92		3.34		3.16		(4)		(93)
Return on average tangible assets(7)		2.31		2.35		3.03		3.46		3.27		(4)		(96)
Return on average common equity(8)		16.98		16.13		20.52		24.24		23.22		85		(6)%
Return on average tangible common equity(9)		23.36		21.82		27.50		32.75		31.61		154		(8)
Non-interest expense as a percentage of average loans held for investment		6.61		7.00		6.62		6.44		6.13		(39)		48 bps
Efficiency ratio(10)		55.68		57.63		53.46		53.78		52.58		(195)		310
Operating efficiency ratio(11)		44.45		45.32		43.87		45.38		45.54		(87)		(109)
Effective income tax rate for continuing operations		18.4		20.7		22.1		22.6		20.7		(230)		(230)
Employees (period-end, in thousands)		51.5		50.8		50.8		52.0		51.7		1%		—%
Credit Quality Metrics
Allowance for credit losses		$  11,308		$   11,430		$   11,573		$   12,346		$   14,017		(1)%		(19)%
Allowance coverage ratio		4.03%		4.12%		4.43%		4.95%		5.77%		(9) bps		(174) bps
Net charge-offs		$       767		$        527		$        426		$        541		$        740		46%		4%
Net charge-off rate(12)		1.11%		0.79%		0.67%		0.88%		1.21%		32 bps		(10) bps
30+ day performing delinquency rate		2.08		2.25		1.97		1.75		1.82		(17)		26
30+ day delinquency rate		2.21		2.41		2.13		1.89		1.98		(20)		23
Capital Ratios(13)
Common equity Tier 1 capital		12.7%		13.1%		13.8%		14.5%		14.6%		(40) bps		(190) bps
Tier 1 capital		14.1		14.5		15.7		16.6		16.2		(40)		(210)
Total capital		16.4		16.9		18.2		18.8		18.6		(50)		(220)
Tier 1 leverage		11.3		11.6		12.2		12.4		11.7		(30)		(40)
Tangible common equity ("TCE")(14)		8.7		9.9		10.4		10.6		10.1		(120)		(140)

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 3: Consolidated Statements of Income
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions, except per share data and as noted)
Interest income:
Loans, including loans held for sale		$      6,367		$      6,451		$      6,205		$      5,753		$      5,854		(1)%		9%
Investment securities		402		368		317		370		391		9		3
Other		15		12		16		16		16		25		(6)
Total interest income		6,784		6,831		6,538		6,139		6,261		(1)		8
Interest expense:
Deposits		218		222		228		237		269		(2)		(19)
Securitized debt obligations		29		30		29		28		32		(3)		(9)
Senior and subordinated notes		131		121		116		122		129		8		2
Other borrowings		9		8		9		9		9		13		—
Total interest expense		387		381		382		396		439		2		(12)
Net interest income		6,397		6,450		6,156		5,743		5,822		(1)		10
Provision (benefit) for credit losses		677		381		(342)		(1,160)		(823)		78		**
Net interest income after provision for credit losses		5,720		6,069		6,498		6,903		6,645		(6)		(14)
Non-interest income:
Interchange fees, net		1,033		1,005		1,022		1,016		817		3		26
Service charges and other customer-related fees		400		435		407		384		352		(8)		14
Other		343		228		245		231		122		50		181
Total non-interest income		1,776		1,668		1,674		1,631		1,291		6		38
Non-interest expense:
Salaries and associate benefits		2,026		1,941		1,852		1,781		1,847		4		10
Occupancy and equipment		513		527		481		523		472		(3)		9
Marketing		918		999		751		620		501		(8)		83
Professional services		397		449		358		341		292		(12)		36
Communications and data processing		339		326		319		315		302		4		12
Amortization of intangibles		14		13		5		5		6		8		133
Other		344		423		420		381		320		(19)		8
Total non-interest expense		4,551		4,678		4,186		3,966		3,740		(3)		22
Income from continuing operations before income taxes		2,945		3,059		3,986		4,568		4,196		(4)		(30)
Income tax provision		542		633		882		1,031		869		(14)		(38)
Income from continuing operations, net of tax		2,403		2,426		3,104		3,537		3,327		(1)		(28)
Loss from discontinued operations, net of tax		—		(1)		—		(1)		(2)		**		**
Net income		2,403		2,425		3,104		3,536		3,325		(1)		(28)
Dividends and undistributed earnings allocated to participating securities(2)		(28)		(21)		(26)		(30)		(28)		33		—
Preferred stock dividends		(57)		(74)		(79)		(60)		(61)		(23)		(7)
Issuance cost for redeemed preferred stock(3)		—		(34)		(12)		—		—		**		—
Net income available to common stockholders		$      2,318		$      2,296		$      2,987		$      3,446		$      3,236		1		(28)
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions, except per share data and as noted)
Basic earnings per common share:(2)
Net income from continuing operations		$        5.65		$        5.43		$        6.81		$        7.65		$        7.06		4%		(20)%
Net income per basic common share		$        5.65		$        5.43		$        6.81		$        7.65		$        7.06		4		(20)
Diluted earnings per common share:(2)
Net income from continuing operations		$        5.62		$        5.41		$        6.78		$        7.62		$        7.03		4		(20)
Net income per diluted common share		$        5.62		$        5.41		$        6.78		$        7.62		$        7.03		4		(20)
Weighted-average common shares outstanding (in millions):
Basic common shares		410.4		422.5		438.8		450.6		458.6		(3)		(11)
Diluted common shares		412.2		424.3		440.5		452.3		460.1		(3)		(10)

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 4: Consolidated Balance Sheets
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions)
Assets:
Cash and cash equivalents:
Cash and due from banks		$     5,107		$     4,164		$     5,444		$     5,312		$     4,670		23%		9%
Interest-bearing deposits and other short-term investments		21,697		17,582		21,180		29,534		45,825		23		(53)
Total cash and cash equivalents		26,804		21,746		26,624		34,846		50,495		23		(47)
Restricted cash for securitization investors		281		308		234		242		1,779		(9)		(84)
Securities available for sale		89,076		95,261		98,149		101,766		99,165		(6)		(10)
Loans held for investment:
Unsecuritized loans held for investment		257,505		252,468		238,475		226,130		219,182		2		17
Loans held in consolidated trusts		22,961		24,872		22,915		23,467		23,949		(8)		(4)
Total loans held for investment		280,466		277,340		261,390		249,597		243,131		1		15
Allowance for credit losses		(11,308)		(11,430)		(11,573)		(12,346)		(14,017)		(1)		(19)
Net loans held for investment		269,158		265,910		249,817		237,251		229,114		1		17
Loans held for sale		1,155		5,888		6,300		6,522		2,896		(80)		(60)
Premises and equipment, net		4,238		4,210		4,204		4,227		4,277		1		(1)
Interest receivable		1,479		1,460		1,418		1,372		1,380		1		7
Goodwill		14,784		14,782		14,652		14,654		14,654		—		1
Other assets		27,220		22,816		23,979		22,540		21,415		19		27
Total assets		$ 434,195		$ 432,381		$ 425,377		$ 423,420		$ 425,175		—		2
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions)
Liabilities:
Interest payable		$        261		$        281		$        241		$        301		$        288		(7)%		(9)%
Deposits:
Non-interest-bearing deposits		37,781		38,043		36,804		34,994		34,003		(1)		11
Interest-bearing deposits		275,648		272,937		269,134		271,314		276,325		1		—
Total deposits		313,429		310,980		305,938		306,308		310,328		1		1
Securitized debt obligations		13,740		14,994		12,635		10,561		12,071		(8)		14
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase		594		820		825		845		842		(28)		(29)
Senior and subordinated notes		26,976		27,219		23,983		24,878		25,467		(1)		6
Other borrowings		4,048		53		58		59		70		**		**
Total other debt		31,618		28,092		24,866		25,782		26,379		13		20
Other liabilities		18,802		17,005		18,153		15,844		14,921		11		26
Total liabilities		377,850		371,352		361,833		358,796		363,987		2		4
Stockholders' equity:
Preferred stock		0		0		0		0		0		—		—
Common stock		7		7		7		7		7		—		—
Additional paid-in capital, net		34,286		34,112		35,051		35,472		33,671		1		2
Retained earnings		53,099		51,006		48,944		46,461		43,167		4		23
Accumulated other comprehensive income (loss)		(4,093)		374		1,360		1,792		1,783		**		**
Treasury stock, at cost		(26,954)		(24,470)		(21,818)		(19,108)		(17,440)		10		55
Total stockholders' equity		56,345		61,029		63,544		64,624		61,188		(8)		(8)
Total liabilities and stockholders' equity		$ 434,195		$ 432,381		$ 425,377		$ 423,420		$ 425,175		—		2

 

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 $192 million in Q1 2022, $151 million in Q4 2021, $123 million in Q3 2021, $175 million in Q2 2021 and $180 million in Q1 2021 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)	On September 1, 2021, we redeemed all outstanding shares of our fixed-to-floating rate non-cumulative perpetual preferred stock Series E, which reduced our net  income available to common shareholders by $12 million in Q3 2021. On December 1, 2021, we redeemed all outstanding shares of our fixed rate 5.20% non- cumulative perpetual preferred stock Series G, and our fixed rate 6.00% non-cumulative perpetual preferred stock Series H, which together reduced our net income available to common shareholders by $34 million in Q4 2021.
(4)	Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.
(5)	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.
(6)	Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(7)	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.
(8)	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.
(9)	Return on average tangible common equity ("ROTCE") is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average tangible common equity ("TCE"). Our calculation of return on average TCE may not be comparable to similarly-titled measures reported by other companies. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures.
(10)	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.
(11)	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.
(12)	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.
(13)	Capital ratios as of the end of Q1 2022 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.
(14)	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.

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 6: Average Balances, Net Interest Income and Net Interest Margin
		2022 Q1						2021 Q4						2021 Q1
(Dollars in millions, except as noted)		Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale		$   279,022		$      6,367		9.13%		$   272,805		$      6,451		9.46%		$   246,675		$      5,854		9.49%
Investment securities		94,700		402		1.70		96,421		368		1.53		98,296		391		1.59
Cash equivalents and other		20,360		15		0.29		21,642		12		0.22		43,601		16		0.15
Total interest-earning assets		$   394,082		$      6,784		6.89		$   390,868		$      6,831		6.99		$   388,572		$      6,261		6.45
Interest-bearing liabilities:
Interest-bearing deposits		$   271,823		$         218		0.32		$   269,951		$         222		0.33		$   273,358		$         269		0.39
Securitized debt obligations		13,740		29		0.84		13,775		30		0.87		12,240		32		1.05
Senior and subordinated notes		26,481		131		1.98		25,454		121		1.90		26,968		129		1.91
Other borrowings and liabilities		3,633		9		1.00		2,279		8		1.50		2,210		9		1.62
Total interest-bearing liabilities		$   315,677		$         387		0.49		$   311,459		$         381		0.49		$   314,776		$         439		0.56
Net interest income/spread				$      6,397		6.40				$      6,450		6.50				$      5,822		5.89
Impact of non-interest-bearing funding						0.09						0.10						0.10
Net interest margin						6.49%						6.60%						5.99%

       

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 7: Loan Information and Performance Statistics
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions, except as noted)
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card		$   107,987		$   108,723		$     99,258		$     95,309		$     91,099		(1)%		19%
International card businesses		5,975		6,049		5,772		5,708		8,028		(1)		(26)
Total credit card		113,962		114,772		105,030		101,017		99,127		(1)		15
Consumer banking:
Auto		78,604		75,779		74,716		71,713		67,059		4		17
Retail banking		1,726		1,867		2,396		3,046		3,143		(8)		(45)
Total consumer banking		80,330		77,646		77,112		74,759		70,202		3		14
Commercial banking:
Commercial and multifamily real estate		34,354		35,262		33,096		29,616		30,008		(3)		14
Commercial and industrial		51,820		49,660		46,152		44,205		43,794		4		18
Total commercial banking		86,174		84,922		79,248		73,821		73,802		1		17
Total loans held for investment		$   280,466		$   277,340		$   261,390		$   249,597		$   243,131		1		15
Loans Held for Investment (Average)
Credit card:
Domestic credit card		$   105,536		$   102,717		$     96,309		$     91,535		$     92,594		3%		14%
International card businesses		5,944		5,871		5,737		8,139		7,940		1		(25)
Total credit card		111,480		108,588		102,046		99,674		100,534		3		11
Consumer banking:
Auto		76,892		75,284		73,296		69,543		66,185		2		16
Retail banking		1,797		2,160		2,700		3,162		3,049		(17)		(41)
Total consumer banking		78,689		77,444		75,996		72,705		69,234		2		14
Commercial banking:
Commercial and multifamily real estate		34,671		33,591		30,314		30,124		29,856		3		16
Commercial and industrial		50,502		47,536		44,745		43,960		44,313		6		14
Total commercial banking		85,173		81,127		75,059		74,084		74,169		5		15
Total average loans held for investment		$   275,342		$   267,159		$   253,101		$   246,463		$   243,937		3		13
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card		2.12%		1.49%		1.36%		2.28%		2.54%		63 bps		(42) bps
International card businesses		3.20		0.14		2.72		2.41		2.30		306		90
Total credit card		2.18		1.42		1.43		2.29		2.52		76		(34)
Consumer banking:
Auto		0.66		0.58		0.18		(0.12)		0.47		8		19
Retail banking		4.31		6.69		2.45		1.41		1.68		(238)		263
Total consumer banking		0.75		0.75		0.27		(0.06)		0.52		—		23
Commercial banking:
Commercial and multifamily real estate		—		—		0.01		0.04		0.06		—		(6)
Commercial and industrial		0.11		(0.03)		0.07		(0.21)		0.11		14		—
Total commercial banking		0.06		(0.02)		0.05		(0.11)		0.09		8		(3)
Total net charge-offs		1.11		0.79		0.67		0.88		1.21		32		(10)
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card		2.32%		2.22%		1.93%		1.68%		2.24%		10 bps		8 bps
International card businesses		3.58		3.42		3.27		2.89		2.51		16		107
Total credit card		2.38		2.28		2.00		1.75		2.26		10		12
Consumer banking:
Auto		3.85		4.32		3.65		3.26		3.12		(47)		73
Retail banking		0.74		1.92		1.15		0.79		1.02		(118)		(28)
Total consumer banking		3.78		4.26		3.58		3.16		3.03		(48)		75
Nonperforming Loans and Nonperforming Assets Rates(1)(2)
Credit card:
International card businesses		0.14%		0.16%		0.16%		0.20%		0.17%		(2) bps		(3) bps
Total credit card		0.01		0.01		0.01		0.01		0.01		—		—
Consumer banking:
Auto		0.41		0.45		0.36		0.29		0.29		(4)		12
Retail banking		2.63		2.51		2.20		1.75		1.16		12		147
Total consumer banking		0.46		0.50		0.42		0.35		0.33		(4)		13
Commercial banking:
Commercial and multifamily real estate		0.98		1.09		0.87		1.02		0.78		(11)		20
Commercial and industrial		0.69		0.64		0.68		1.03		1.02		5		(33)
Total commercial banking		0.81		0.82		0.76		1.03		0.92		(1)		(11)
Total nonperforming loans		0.38		0.40		0.35		0.41		0.38		(2)		—
Total nonperforming assets		0.40		0.41		0.37		0.43		0.40		(1)		—

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity
		Three Months Ended March 31, 2022
		Credit Card						Consumer Banking
(Dollars in millions)		Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2021		$         7,968		$             377		$         8,345		$         1,852		$             66		$         1,918		$         1,167		$       11,430
Charge-offs		(867)		(88)		(955)		(326)		(23)		(349)		(17)		(1,321)
Recoveries		308		40		348		199		4		203		3		554
Net charge-offs		(559)		(48)		(607)		(127)		(19)		(146)		(14)		(767)
Provision (benefit) for credit losses		559		(14)		545		127		3		130		(27)		648
Allowance build (release) for credit losses		—		(62)		(62)		—		(16)		(16)		(41)		(119)
Other changes(3)		—		(3)		(3)		—		—		—		—		(3)
Balance as of March 31, 2022		7,968		312		8,280		1,852		50		1,902		1,126		11,308
Reserve for unfunded lending commitments:
Balance as of December 31, 2021		—		—		—		—		—		—		165		165
Provision (benefit) for losses on unfunded lending commitments		—		—		—		—		—		—		35		35
Balance as of March 31, 2022		—		—		—		—		—		—		200		200
Combined allowance and reserve as of March 31, 2022		$         7,968		$             312		$         8,280		$         1,852		$             50		$         1,902		$         1,326		$       11,508

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 9: Financial Summary—Business Segment Results
		Three Months Ended March 31, 2022
(Dollars in millions)		Credit Card		Consumer Banking		Commercial Banking(4)		Other(4)		Total
Net interest income (loss)		$        3,839		$       2,113		$             607		$      (162)		$      6,397
Non-interest income (loss)		1,458		105		277		(64)		1,776
Total net revenue (loss)		5,297		2,218		884		(226)		8,173
Provision (benefit) for credit losses		545		130		8		(6)		677
Non-interest expense		2,783		1,236		488		44		4,551
Income (loss) from continuing operations before income taxes		1,969		852		388		(264)		2,945
Income tax provision (benefit)		469		202		92		(221)		542
Income (loss) from continuing operations, net of tax		$        1,500		$          650		$             296		$        (43)		$      2,403
		Three Months Ended December 31, 2021
(Dollars in millions)		Credit Card		Consumer Banking		Commercial Banking(4)		Other(4)		Total
Net interest income (loss)		$        3,865		$       2,158		$             595		$      (168)		$      6,450
Non-interest income (loss)		1,261		142		345		(80)		1,668
Total net revenue (loss)		5,126		2,300		940		(248)		8,118
Provision (benefit) for credit losses		423		2		(44)		—		381
Non-interest expense		2,799		1,285		520		74		4,678
Income (loss) from continuing operations before income taxes		1,904		1,013		464		(322)		3,059
Income tax provision (benefit)		451		239		109		(166)		633
Income (loss) from continuing operations, net of tax		$        1,453		$          774		$             355		$      (156)		$      2,426
		Three Months Ended March 31, 2021
(Dollars in millions)		Credit Card		Consumer Banking		Commercial Banking(4)		Other(4)		Total
Net interest income (loss)		$        3,372		$       2,030		$             520		$      (100)		$      5,822
Non-interest income (loss)		1,029		141		240		(119)		1,291
Total net revenue (loss)		4,401		2,171		760		(219)		7,113
Provision (benefit) for credit losses		(492)		(126)		(203)		(2)		(823)
Non-interest expense		2,135		1,117		419		69		3,740
Income (loss) from continuing operations before income taxes		2,758		1,180		544		(286)		4,196
Income tax provision (benefit)		653		278		128		(190)		869
Income (loss) from continuing operations, net of tax		$        2,105		$          902		$             416		$        (96)		$      3,327

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 10: Financial & Statistical Summary—Credit Card Business
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions, except as noted)
Credit Card
Earnings:
Net interest income		$     3,839		$     3,865		$     3,620		$     3,217		$     3,372		(1)%		14%
Non-interest income		1,458		1,261		1,263		1,253		1,029		16		42
Total net revenue		5,297		5,126		4,883		4,470		4,401		3		20
Provision (benefit) for credit losses		545		423		(198)		(635)		(492)		29		**
Non-interest expense		2,783		2,799		2,424		2,263		2,135		(1)		30
Income from continuing operations before income taxes		1,969		1,904		2,657		2,842		2,758		3		(29)
Income tax provision		469		451		627		672		653		4		(28)
Income from continuing operations, net of tax		$     1,500		$     1,453		$     2,030		$      2,170		$     2,105		3		(29)
Selected performance metrics:
Period-end loans held for investment		$ 113,962		$ 114,772		$ 105,030		$  101,017		$   99,127		(1)		15
Average loans held for investment		111,480		108,588		102,046		99,674		100,534		3		11
Average yield on loans outstanding(5)		14.97%		14.94%		14.88%		14.04%		14.49%		3 bps		48 bps
Total net revenue margin(6)		18.56		18.11		18.33		17.59		17.17		45		139
Net charge-off rate		2.18		1.42		1.43		2.29		2.52		76		(34)
30+ day performing delinquency rate		2.38		2.28		2.00		1.75		2.26		10		12
30+ day delinquency rate		2.39		2.29		2.00		1.75		2.27		10		12
Nonperforming loan rate(1)		0.01		0.01		0.01		0.01		0.01		—		—
Purchase volume(7)		$ 133,662		$ 149,982		$ 136,614		$  132,676		$ 108,333		(11)%		23%
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions, except as noted)
Domestic Card
Earnings:
Net interest income		$     3,620		$     3,558		$     3,319		$      2,944		$     3,095		2%		17%
Non-interest income		1,248		1,190		1,200		1,183		959		5		30
Total net revenue		4,868		4,748		4,519		4,127		4,054		3		20
Provision (benefit) for credit losses		559		384		(200)		(561)		(491)		46		**
Non-interest expense		2,564		2,564		2,191		2,034		1,923		—		33
Income from continuing operations before income taxes		1,745		1,800		2,528		2,654		2,622		(3)		(33)
Income tax provision		414		424		597		626		619		(2)		(33)
Income from continuing operations, net of tax		$      1,331		$     1,376		$     1,931		$      2,028		$     2,003		(3)		(34)
Selected performance metrics:
Period-end loans held for investment		$  107,987		$ 108,723		$    99,258		$    95,309		$   91,099		(1)		19
Average loans held for investment		105,536		102,717		96,309		91,535		92,594		3		14
Average yield on loans outstanding(5)		14.82%		14.86%		14.80%		13.91%		14.34%		(4) bps		48 bps
Total net revenue margin(6)		18.28		18.14		18.40		17.66		17.15		14		113
Net charge-off rate		2.12		1.49		1.36		2.28		2.54		63		(42)
30+ day performing delinquency rate		2.32		2.22		1.93		1.68		2.24		10		8
Purchase volume(7)		$  126,284		$ 138,825		$  126,057		$  122,456		$   99,960		(9)%		26%
Refreshed FICO scores:(8)
Greater than 660		70%		71%		71%		72%		70%		(1)		—
660 or below		30		29		29		28		30		1		—
Total		100%		100%		100%		100%		100%

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 11: Financial & Statistical Summary—Consumer Banking Business
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions, except as noted)
Consumer Banking
Earnings:
Net interest income		$   2,113		$   2,158		$   2,159		$   2,101		$   2,030		(2)%		4%
Non-interest income		105		142		127		144		141		(26)		(26)
Total net revenue		2,218		2,300		2,286		2,245		2,171		(4)		2
Provision (benefit) for credit losses		130		2		(91)		(306)		(126)		**		**
Non-interest expense		1,236		1,285		1,186		1,123		1,117		(4)		11
Income from continuing operations before income taxes		852		1,013		1,191		1,428		1,180		(16)		(28)
Income tax provision		202		239		282		337		278		(15)		(27)
Income from continuing operations, net of tax		$      650		$      774		$      909		$   1,091		$      902		(16)		(28)
Selected performance metrics:
Period-end loans held for investment		$ 80,330		$ 77,646		$ 77,112		$ 74,759		$ 70,202		3		14
Average loans held for investment		78,689		77,444		75,996		72,705		69,234		2		14
Average yield on loans held for investment(5)		7.17%		7.55%		7.78%		7.99%		8.16%		(38) bps		(99) bps
Auto loan originations		$ 11,713		$   9,721		$ 11,570		$ 12,959		$   8,833		20%		33%
Period-end deposits		258,359		256,407		252,387		251,155		254,001		1		2
Average deposits		255,265		253,372		251,307		252,488		249,499		1		2
Average deposits interest rate		0.29%		0.30%		0.30%		0.31%		0.36%		(1) bps		(7) bps
Net charge-off (recovery) rate		0.75		0.75		0.27		(0.06)		0.52		—		23
30+ day performing delinquency rate		3.78		4.26		3.58		3.16		3.03		(48)		75
30+ day delinquency rate		4.13		4.66		3.88		3.40		3.25		(53)		88
Nonperforming loan rate(1)		0.46		0.50		0.42		0.35		0.33		(4)		13
Nonperforming asset rate(2)		0.52		0.56		0.47		0.40		0.39		(4)		13
Auto—At origination FICO scores:(9)
Greater than 660		51%		50%		49%		48%		47%		1%		4%
621 - 660		20		20		20		20		20		—		—
620 or below		29		30		31		32		33		(1)		(4)
Total		100%		100%		100%		100%		100%

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 12: Financial & Statistical Summary—Commercial Banking Business
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions, except as noted)
Commercial Banking
Earnings:
Net interest income		$      607		$       595		$       578		$       460		$       520		2%		17%
Non-interest income		277		345		306		257		240		(20)		15
Total net revenue(6)		884		940		884		717		760		(6)		16
Provision (benefit) for credit losses		8		(44)		(53)		(219)		(203)		**		**
Non-interest expense		488		520		459		417		419		(6)		16
Income from continuing operations before income taxes		388		464		478		519		544		(16)		(29)
Income tax provision		92		109		113		123		128		(16)		(28)
Income from continuing operations, net of tax		$      296		$       355		$       365		$       396		$       416		(17)		(29)
Selected performance metrics:
Period-end loans held for investment		$ 86,174		$  84,922		$  79,248		$  73,821		$  73,802		1		17
Average loans held for investment		85,173		81,127		75,059		74,084		74,169		5		15
Average yield on loans held for investment(4)(5)		2.66%		2.71%		2.77%		2.72%		2.76%		(5) bps		(10) bps
Period-end deposits		$ 45,232		$  44,809		$  43,347		$  42,973		$  41,552		1%		9%
Average deposits		45,008		44,206		42,729		42,311		40,107		2		12
Average deposits interest rate		0.12%		0.12%		0.15%		0.14%		0.18%		—		(6) bps
Net charge-off (recovery) rate		0.06		(0.02)		0.05		(0.11)		0.09		8 bps		(3)
Nonperforming loan rate(1)		0.81		0.82		0.76		1.03		0.92		(1)		(11)
Nonperforming asset rate(2)		0.81		0.82		0.76		1.03		0.92		(1)		(11)
Risk category:(10)
Noncriticized		$ 80,586		$  79,014		$  73,218		$  67,481		$  66,299		2%		22%
Criticized performing		4,893		5,209		5,429		5,581		6,821		(6)		(28)
Criticized nonperforming		695		699		601		759		682		(1)		2
Total commercial banking loans		$ 86,174		$  84,922		$  79,248		$  73,821		$  73,802		1		17
Risk category as a percentage of period-end loans held for investment:(10)
Noncriticized		93.5%		93.1%		92.3%		91.4%		89.9%		40 bps		360 bps
Criticized performing		5.7		6.1		6.9		7.6		9.2		(40)		(350)
Criticized nonperforming		0.8		0.8		0.8		1.0		0.9		—		(10)
Total commercial banking loans		100.0%		100.0%		100.0%		100.0%		100.0%

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 13: Financial & Statistical Summary—Other and Total
												2022 Q1 vs.
		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1		2021 Q4		2021 Q1
(Dollars in millions)
Other
Earnings:
Net interest loss		$        (162)		$        (168)		$        (201)		$          (35)		$        (100)		(4)%		62%
Non-interest loss		(64)		(80)		(22)		(23)		(119)		(20)		(46)
Total net loss(4)		(226)		(248)		(223)		(58)		(219)		(9)		3
Benefit for credit losses		(6)		—		—		—		(2)		**		**
Non-interest expense(11)		44		74		117		163		69		(41)		(36)
Loss from continuing operations before income taxes		(264)		(322)		(340)		(221)		(286)		(18)		(8)
Income tax benefit		(221)		(166)		(140)		(101)		(190)		33		16
Loss from continuing operations, net of tax		$          (43)		$        (156)		$        (200)		$        (120)		$          (96)		(72)		(55)
Selected performance metrics:
Period-end deposits		$      9,838		$      9,764		$    10,204		$    12,180		$    14,775		1		(33)
Average deposits		9,324		9,694		10,999		13,418		15,450		(4)		(40)
Total
Earnings:
Net interest income		$      6,397		$      6,450		$      6,156		$      5,743		$      5,822		(1)%		10%
Non-interest income		1,776		1,668		1,674		1,631		1,291		6		38
Total net revenue		8,173		8,118		7,830		7,374		7,113		1		15
Provision (benefit) for credit losses		677		381		(342)		(1,160)		(823)		78		**
Non-interest expense		4,551		4,678		4,186		3,966		3,740		(3)		22
Income from continuing operations before income taxes		2,945		3,059		3,986		4,568		4,196		(4)		(30)
Income tax provision		542		633		882		1,031		869		(14)		(38)
Income from continuing operations, net of tax		$      2,403		$      2,426		$      3,104		$      3,537		$      3,327		(1)		(28)
Selected performance metrics:
Period-end loans held for investment		$  280,466		$  277,340		$  261,390		$  249,597		$  243,131		1		15
Average loans held for investment		275,342		267,159		253,101		246,463		243,937		3		13
Period-end deposits		313,429		310,980		305,938		306,308		310,328		1		1
Average deposits		309,597		307,272		305,035		308,217		305,056		1		1

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)
(1)	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.
(2)	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.
(3)	Primarily represents foreign currency translation adjustments.
(4)	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.
(5)	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.
(6)	Total net revenue margin is calculated based on total net revenue for the period divided by average loans outstanding during the period.
(7)	Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.
(8)	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.
(9)	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.
(10)	Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.
(11)	Includes charges incurred as a result of restructuring activities.
**	Not meaningful.

 

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1)
		Basel III Standardized Approach
(Dollars in millions, except as noted)		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Regulatory Capital Metrics
Common equity excluding AOCI		$        57,390		$        58,206		$        58,705		$         58,969		$        57,607
Adjustments:
AOCI, net of tax(2)		(20)		(23)		(33)		(5)		(13)
Goodwill, net of related deferred tax liabilities		(14,559)		(14,562)		(14,435)		(14,440)		(14,444)
Intangible assets, net of related deferred tax liabilities		(94)		(108)		(84)		(76)		(81)
Other		(16)		(12)		(15)		(16)		(18)
Common equity Tier 1 capital		$        42,701		$        43,501		$        44,138		$         44,432		$        43,051
Tier 1 capital		$        47,547		$        48,346		$        50,049		$         50,920		$        47,898
Total capital(3)		55,059		56,089		57,851		57,932		54,780
Risk-weighted assets		336,739		332,673		318,729		307,334		295,209
Adjusted average assets(4)		418,957		415,141		411,216		411,032		408,596
Capital Ratios
Common equity Tier 1 capital(5)		12.7%		13.1%		13.8%		14.5%		14.6%
Tier 1 capital(6)		14.1		14.5		15.7		16.6		16.2
Total capital(7)		16.4		16.9		18.2		18.8		18.6
Tier 1 leverage(4)		11.3		11.6		12.2		12.4		11.7
Tangible common equity ("TCE")(8)		8.7		9.9		10.4		10.6		10.1

 

Reconciliation of Non-GAAP Measures

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

 

		2022 Q1		2021 Q4		2021 Q3		2021 Q2		2021 Q1
(Dollars in millions, except per share data and as noted)
Adjusted diluted EPS:
Net income available to common stockholders (GAAP)		$            2,318		$            2,296		$           2,987		$           3,446		$           3,236
Legal reserve activity, including insurance recoveries		—		—		45		55		—
Adjusted net income available to common stockholders before income tax impacts (non-GAAP)		2,318		2,296		3,032		3,501		3,236
Income tax impacts		—		—		(11)		(13)		—
Adjusted net income available to common stockholders (non-GAAP)		$            2,318		$            2,296		$           3,021		$           3,488		$           3,236
Diluted weighted-average common shares outstanding (in millions) (GAAP)		412.2		424.3		440.5		452.3		460.1
Diluted EPS (GAAP)		$              5.62		$              5.41		$             6.78		$             7.62		$             7.03
Impact of adjustments noted above		—		—		0.08		0.09		—
Adjusted diluted EPS (non-GAAP)		$              5.62		$              5.41		$             6.86		$             7.71		$             7.03
Adjusted efficiency ratio:
Non-interest expense (GAAP)		$            4,551		$            4,678		$           4,186		$           3,966		$           3,740
Legal reserve activity, including insurance recoveries		—		—		(45)		(55)		—
Adjusted non-interest expense (non-GAAP)		$            4,551		$            4,678		$           4,141		$           3,911		$           3,740
Total net revenue (GAAP)		$            8,173		$            8,118		$           7,830		$           7,374		$           7,113
Efficiency ratio (GAAP)		55.68%		57.63%		53.46%		53.78%		52.58%
Impact of adjustments noted above		—		—		(57) bps		(74) bps		—
Adjusted efficiency ratio (non-GAAP)		55.68%		57.63%		52.89%		53.04%		52.58%
Adjusted operating efficiency ratio:
Operating expense (GAAP)		$            3,633		$            3,679		$           3,435		$           3,346		$           3,239
Legal reserve activity, including insurance recoveries		—		—		(45)		(55)		—
Adjusted operating expense (non-GAAP)		$            3,633		$            3,679		$           3,390		$           3,291		$           3,239
Total net revenue (GAAP)		$            8,173		$            8,118		$           7,830		$           7,374		$           7,113
Operating efficiency ratio (GAAP)		44.45%		45.32%		43.87%		45.38%		45.54%
Impact of adjustments noted above		—		—		(57) bps		(75) bps		—
Adjusted operating efficiency ratio (non-GAAP)		44.45%		45.32%		43.30%		44.63%		45.54%

 

Reconciliation of Non-GAAP Measures

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

 

		2022		2021		2021		2021		2021
(Dollars in millions)		Q1		Q4		Q3		Q2		Q1
Tangible Common Equity (Period-End)
Stockholders' equity		$          56,345		$          61,029		$          63,544		$          64,624		$          61,188
Goodwill and intangible assets(9)		(14,883)		(14,907)		(14,766)		(14,774)		(14,789)
Noncumulative perpetual preferred stock		(4,845)		(4,845)		(5,912)		(6,488)		(4,847)
Tangible common equity		$          36,617		$          41,277		$          42,866		$          43,362		$          41,552
Tangible Common Equity (Average)
Stockholders' equity		$          59,437		$          62,498		$          64,682		$          62,376		$          60,623
Goodwill and intangible assets(9)		(14,904)		(14,847)		(14,777)		(14,788)		(14,807)
Noncumulative perpetual preferred stock		(4,845)		(5,552)		(6,452)		(5,491)		(4,847)
Tangible common equity		$          39,688		$          42,099		$          43,453		$          42,097		$          40,969
Tangible Assets (Period-End)
Total assets		$        434,195		$        432,381		$        425,377		$        423,420		$        425,175
Goodwill and intangible assets(9)		(14,883)		(14,907)		(14,766)		(14,774)		(14,789)
Tangible assets		$        419,312		$        417,474		$        410,611		$        408,646		$        410,386
Tangible Assets (Average)
Total assets		$        430,372		$        427,845		$        424,506		$        424,099		$        421,808
Goodwill and intangible assets(9)		(14,904)		(14,847)		(14,777)		(14,788)		(14,807)
Tangible assets		$        415,468		$        412,998		$        409,729		$        409,311		$        407,001

__________

(1)	Regulatory capital metrics and capital ratios as of March 31, 2022 are preliminary and therefore subject to change.
(2)	Excludes certain components of AOCI as permitted under the Tailoring Rules.
(3)	Total capital equals the sum of Tier 1 capital and Tier 2 capital.
(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)	Includes impact of related deferred taxes.

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SOURCE Capital One Financial Corporation

FAQ

What was Capital One's net income for Q1 2022?

Capital One reported a net income of $2.4 billion for Q1 2022.

How does Q1 2022 net income compare to Q1 2021 for Capital One?

Net income for Q1 2022 decreased compared to $3.3 billion in Q1 2021.

What was the total revenue for Capital One in Q1 2022?

Total net revenue for Q1 2022 was $8.2 billion.

What was the provision for credit losses for Capital One in Q1 2022?

The provision for credit losses rose by $296 million to $677 million in Q1 2022.

What was the common equity Tier 1 capital ratio for Capital One at the end of Q1 2022?

The common equity Tier 1 capital ratio was 12.7% at March 31, 2022.