CAPITAL ONE FINANCIAL CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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EX-99.2 - EXHIBIT 99.2 PDF - CAPITAL ONE FINANCIAL CORP	q32015earningsreleaseexhibit.pdf
8-K - 8-K - CAPITAL ONE FINANCIAL CORP	q32015earningsrelease8-k.htm
EX-99.1 - EXHIBIT 99.1 - CAPITAL ONE FINANCIAL CORP	q32015earningsrelease-ex991.htm

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement

Third Quarter2015⁽¹⁾

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	10
	Table 7:	Loan Information and Performance Statistics	11
Business Segment Results
	Table 8:	Financial Summary—Business Segment Results	13
	Table 9:	Financial & Statistical Summary—Credit Card Business	14
	Table 10:	Financial & Statistical Summary—Consumer Banking Business	16
	Table 11:	Financial & Statistical Summary—Commercial Banking Business	17
	Table 12:	Financial & Statistical Summary—Other and Total	18
	Table 13:	Notes to Loan and Business Segments Disclosures (Tables 7—12)	19
Other
	Table 14:	Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital 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 September 30, 2015 once it is filed with the Securities and Exchange Commission.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated⁽¹⁾



																2015 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted) (unaudited)	2015			2015			2015			2014			2014			2015		2014								2015 vs.
	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2015			2014			2014
Income Statement
Net interest income	$	4,760		$	4,537		$	4,576		$	4,656		$	4,497		5%		6%		$	13,873		$	13,162		5%
Non-interest income	1,140			1,135			1,071			1,157			1,142			—		—		3,346			3,315			1
Total net revenue⁽²⁾	5,900			5,672			5,647			5,813			5,639			4		5		17,219			16,477			5
Provision for credit losses	1,092			1,129			935			1,109			993			(3	)	10		3,156			2,432			30
Non-interest expense:
Marketing	418			387			375			509			392			8		7		1,180			1,052			12
Amortization of intangibles	106			111			110			123			130			(5	)	(18	)	327			409			(20	)
Operating expenses	2,636			2,809			2,564			2,652			2,463			(6	)	7		8,009			7,435			8
Total non-interest expense	3,160			3,307			3,049			3,284			2,985			(4	)	6		9,516			8,896			7
Income from continuing operations before income taxes	1,648			1,236			1,663			1,420			1,661			33		(1	)	4,547			5,149			(12	)
Income tax provision	530			384			529			450			536			38		(1	)	1,443			1,696			(15	)
Income from continuing operations, net of tax	1,118			852			1,134			970			1,125			31		(1	)	3,104			3,453			(10	)
(Loss) income from discontinued operations, net of tax⁽³⁾	(4		)	11			19			29			(44		)	**		(91	)	26			(24		)	**
Net income	1,114			863			1,153			999			1,081			29		3		3,130			3,429			(9	)
Dividends and undistributed earnings allocated to participating securities⁽⁴⁾	(6		)	(4		)	(6		)	(4		)	(5		)	50		20		(16		)	(14		)	14
Preferred stock dividends⁽⁴⁾	(29		)	(29		)	(32		)	(21		)	(20		)	—		45		(90		)	(46		)	96
Net income available to common stockholders	$	1,079		$	830		$	1,115		$	974		$	1,056		30		2		$	3,024		$	3,369		(10	)
Common Share Statistics
Basic earnings per common share:⁽⁴⁾
Net income from continuing operations	$	2.01		$	1.50		$	2.00		$	1.71		$	1.97		34%		2%		$	5.49		$	5.99		(8)%
(Loss) income from discontinued operations	(0.01		)	0.02			0.03			0.05			(0.08		)	**		(88	)	0.05			(0.04		)	**
Net income per basic common share	$	2.00		$	1.52		$	2.03		$	1.76		$	1.89		32		6		$	5.54		$	5.95		(7	)
Diluted earnings per common share:⁽⁴⁾
Net income from continuing operations	$	1.99		$	1.48		$	1.97		$	1.68		$	1.94		34		3		$	5.43		$	5.90		(8	)
(Loss) income from discontinued operations	(0.01		)	0.02			0.03			0.05			(0.08		)	**		(88	)	0.05			(0.04		)	**
Net income per diluted common share⁽⁵⁾	$	1.98		$	1.50		$	2.00		$	1.73		$	1.86		32		6		$	5.48		$	5.86		(6	)
Weighted-average common shares outstanding (in millions):
Basic	540.6			545.6			550.2			554.3			559.9			(1	)	(3	)	545.5			566.1			(4	)
Diluted	546.3			552.0			557.2			561.8			567.9			(1	)	(4	)	551.9			575.2			(4	)
Common shares outstanding (period end, in millions)	534.9			542.5			548.0			553.4			558.5			(1	)	(4	)	534.9			558.5			(4	)
Dividends paid per common share	$	0.40		$	0.40		$	0.30		$	0.30		$	0.30		—		33		$	1.10		$	0.90		22
Tangible book value per common share (period end)⁽⁶⁾	54.66			52.74			52.19			50.32			48.72			4		12		54.66			48.72			12



											2015 Q3 vs.			Nine Months Ended September 30,
(Dollars in millions) (unaudited)	2015		2015		2015		2014		2014		2015		2014					2015 vs.
(Dollars in millions) (unaudited)	Q3		Q2		Q1		Q4		Q3		Q2		Q3	2015		2014		2014
Balance Sheet (Period End)
Loans held for investment⁽⁷⁾	$	213,329	$	209,705	$	203,978	$	208,316	$	201,592	2%		6%	$	213,329	$	201,592	6%
Interest-earning assets	283,073		280,137		275,837		277,849		270,001		1		5	283,073		270,001		5
Total assets	313,700		310,510		306,224		308,167		299,640		1		5	313,700		299,640		5
Interest-bearing deposits	187,848		183,657		185,208		180,467		178,876		2		5	187,848		178,876		5
Total deposits	212,903		208,780		210,440		205,548		204,264		2		4	212,903		204,264		4
Borrowings	42,778		45,766		41,029		48,457		42,243		(7	)	1	42,778		42,243		1
Common equity	44,391		43,849		43,908		43,231		42,682		1		4	44,391		42,682		4
Total stockholders’ equity	47,685		46,659		45,730		45,053		44,018		2		8	47,685		44,018		8
Balance Sheet (Average Balances)
Loans held for investment⁽⁷⁾	$	211,227	$	206,337	$	205,194	$	203,436	$	199,422	2%		6%	$	207,608	$	196,068	6%
Interest-earning assets	283,082		276,585		278,427		273,436		268,890		2		5	279,388		265,065		5
Total assets	313,822		307,206		309,401		304,153		298,913		2		5	310,146		295,506		5
Interest-bearing deposits	185,800		183,946		182,998		179,401		179,928		1		3	184,258		181,587		1
Total deposits	210,974		209,143		207,851		205,355		205,199		1		3	209,334		205,783		2
Borrowings	45,070		41,650		46,082		43,479		40,314		8		12	44,264		37,332		19
Common equity	45,407		44,878		44,575		43,895		43,489		1		4	44,956		42,772		5
Total stockholders’ equity	48,456		47,255		46,397		45,576		44,827		3		8	47,376		43,828		8

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated⁽¹⁾



													2015 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions except as noted) (unaudited)	2015		2015		2015			2014		2014			2015		2014							2015 vs.
(Dollars in millions except as noted) (unaudited)	Q3		Q2		Q1			Q4		Q3			Q2		Q3		2015		2014			2014
Performance Metrics
Net interest income growth (quarter over quarter)	5%		(1)%		(2)%			4%		4%			**		**		5%		(4)%			**
Non-interest income growth (quarter over quarter)	—		6		(7		)	1		(1		)	**		**		1		5			**
Total net revenue growth (quarter over quarter)	4		—		(3		)	3		3			**		**		5		(2		)	**
Total net revenue margin⁽⁸⁾	8.34		8.20		8.11			8.50		8.39			14	bps	(5	)bps	8.22		8.29			(7	)bps
Net interest margin⁽⁹⁾	6.73		6.56		6.57			6.81		6.69			17		4		6.62		6.62			—
Return on average assets	1.43		1.11		1.47			1.28		1.51			32		(8	)	1.33		1.56			(23	)
Return on average tangible assets⁽¹⁰⁾	1.50		1.17		1.54			1.34		1.59			33		(9	)	1.40		1.64			(24	)
Return on average common equity⁽¹¹⁾	9.54		7.30		9.84			8.61		10.12			224		(58	)	8.89		10.58			(169	)
Return on average tangible common equity⁽¹²⁾	14.33		11.06		15.00			13.28		15.73			327		(140	)	13.46		16.66			(320	)
Non-interest expense as a percentage of average loans held for investment	5.98		6.41		5.94			6.46		5.99			(43	)	(1	)	6.11		6.05			6
Efficiency ratio⁽¹³⁾	53.56		58.30		53.99			56.49		52.93			(474	)	63		55.26		53.99			127
Effective income tax rate for continuing operations	32.2		31.1		31.8			31.7		32.3			110		(10	)	31.7		32.9			(120	)
Employees (in thousands), period end	46.9		47.5		47.0			46.0		44.9			(1)%		4%		46.9		44.9			4%
Credit Quality Metrics⁽⁷⁾
Allowance for loan and lease losses	$	4,847	$	4,676	$	4,405		$	4,383	$	4,212		4%		15%		$	4,847	$	4,212		15%
Allowance as a percentage of loans held for investment	2.27%		2.23%		2.16%			2.10%		2.09%			4	bps	18	bps	2.27%		2.09%			18	bps
Allowance as a percentage of loans held for investment (excluding Acquired Loans)	2.49		2.46		2.41			2.36		2.37			3		12		2.49		2.37			12
Net charge-offs	$	890	$	846	$	881		$	915	$	756		5%		18%		$	2,617	$	2,499		5%
Net charge-off rate⁽¹⁴⁾	1.69%		1.64%		1.72%			1.80%		1.52%			5	bps	17	bps	1.68%		1.70%			(2	)bps
Net charge-off rate (excluding Acquired Loans)⁽¹⁴⁾	1.86		1.83		1.93			2.04		1.73			3		13		1.87		1.96			(9	)
30+ day performing delinquency rate	2.63		2.33		2.32			2.62		2.46			30		17		2.63		2.46			17
30+ day performing delinquency rate (excluding Acquired Loans)	2.90		2.59		2.61			2.95		2.81			31		9		2.90		2.81			9
30+ day delinquency rate	2.95		2.65		2.58			2.91		2.76			30		19		2.95		2.76			19
30+ day delinquency rate (excluding Acquired Loans)	3.25		2.94		2.90			3.28		3.14			31		11		3.25		3.14			11
Capital Ratios⁽¹⁵⁾
Common equity Tier 1 capital ratio	12.1%		12.1%		12.5%			12.5%		12.7%			—		(60	)bps	12.1%		12.7%			(60	)bps
Tier 1 risk-based capital ratio	13.4		13.3		13.2			13.2		13.3			10	bps	10		13.4		13.3			10
Total risk-based capital ratio	15.1		15.1		15.1			15.1		15.2			—		(10	)	15.1		15.2			(10	)
Tier 1 leverage ratio	11.1		11.1		10.7			10.8		10.6			—		50		11.1		10.6			50
Tangible common equity (“TCE”) ratio⁽¹⁶⁾	9.8		9.7		9.8			9.5		9.6			10		20		9.8		9.6			20

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income



	Three Months Ended									2015 Q3 vs.				Nine Months Ended September 30,
	2015			2015			2014			2015		2014								2015 vs.
(Dollars in millions, except per share data and as noted) (unaudited)	Q3			Q2			Q3			Q2		Q3		2015			2014			2014
Interest income:
Loans, including loans held for sale	$	4,753		$	4,531		$	4,463		5%		6%		$	13,824		$	13,049		6%
Investment securities	386			382			398			1		(3	)	1,174			1,223			(4	)
Other	25			24			26			4		(4	)	77			80			(4	)
Total interest income	5,164			4,937			4,887			5		6		15,075			14,352			5
Interest expense:
Deposits	271			272			271			—		—		814			819			(1	)
Securitized debt obligations	39			36			32			8		22		108			109			(1	)
Senior and subordinated notes	82			80			71			3		15		241			226			7
Other borrowings	12			12			16			—		(25	)	39			36			8
Total interest expense	404			400			390			1		4		1,202			1,190			1
Net interest income	4,760			4,537			4,497			5		6		13,873			13,162			5
Provision for credit losses	1,092			1,129			993			(3	)	10		3,156			2,432			30
Net interest income after provision for credit losses	3,668			3,408			3,504			8		5		10,717			10,730			—
Non-interest income:
Service charges and other customer-related fees	423			429			471			(1	)	(10	)	1,289			1,405			(8	)
Interchange fees, net	555			567			523			(2	)	6		1,618			1,498			8
Net other-than-temporary impairment recognized in earnings	(5		)	(7		)	(9		)	(29	)	(44	)	(27		)	(15		)	80
Other	167			146			157			14		6		466			427			9
Total non-interest income	1,140			1,135			1,142			—		—		3,346			3,315			1
Non-interest expense:
Salaries and associate benefits	1,189			1,360			1,128			(13	)	5		3,760			3,414			10
Occupancy and equipment	444			439			419			1		6		1,318			1,271			4
Marketing	418			387			392			8		7		1,180			1,052			12
Professional services	313			334			304			(6	)	3		943			887			6
Communications and data processing	226			208			196			9		15		636			595			7
Amortization of intangibles	106			111			130			(5	)	(18	)	327			409			(20	)
Other	464			468			416			(1	)	12		1,352			1,268			7
Total non-interest expense	3,160			3,307			2,985			(4	)	6		9,516			8,896			7
Income from continuing operations before income taxes	1,648			1,236			1,661			33		(1	)	4,547			5,149			(12	)
Income tax provision	530			384			536			38		(1	)	1,443			1,696			(15	)
Income from continuing operations, net of tax	1,118			852			1,125			31		(1	)	3,104			3,453			(10	)
(Loss) income from discontinued operations, net of tax⁽³⁾	(4		)	11			(44		)	**		(91	)	26			(24		)	**
Net income	1,114			863			1,081			29		3		3,130			3,429			(9	)
Dividends and undistributed earnings allocated to participating securities⁽⁴⁾	(6		)	(4		)	(5		)	50		20		(16		)	(14		)	14
Preferred stock dividends⁽⁴⁾	(29		)	(29		)	(20		)	—		45		(90		)	(46		)	96
Net income available to common stockholders	$	1,079		$	830		$	1,056		30		2		$	3,024		$	3,369		(10	)



	Three Months Ended								2015 Q3 vs.				Nine Months Ended September 30,
	2015			2015		2014			2015		2014							2015 vs.
(Dollars in millions, except per share data and as noted) (unaudited)	Q3			Q2		Q3			Q2		Q3		2015		2014			2014
Basic earnings per common share:⁽⁴⁾
Net income from continuing operations	$	2.01		$	1.50	$	1.97		34%		2%		$	5.49	$	5.99		(8)%
(Loss) income from discontinued operations	(0.01		)	0.02		(0.08		)	**		(88	)	0.05		(0.04		)	**
Net income per basic common share	$	2.00		$	1.52	$	1.89		32		6		$	5.54	$	5.95		(7	)
Diluted earnings per common share:⁽⁴⁾
Net income from continuing operations	$	1.99		$	1.48	$	1.94		34		3		$	5.43	$	5.90		(8	)
(Loss) income from discontinued operations	(0.01		)	0.02		(0.08		)	**		(88	)	0.05		(0.04		)	**
Net income per diluted common share⁽⁵⁾	$	1.98		$	1.50	$	1.86		32		6		$	5.48	$	5.86		(6	)
Weighted average common shares outstanding (in millions):
Basic common shares	540.6			545.6		559.9			(1	)	(3	)	545.5		566.1			(4	)
Diluted common shares	546.3			552.0		567.9			(1	)	(4	)	551.9		575.2			(4	)
Dividends paid per common share	$	0.40		$	0.40	$	0.30		—		33		$	1.10	$	0.90		22

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets⁽¹⁾



										September 30, 2015 vs.
(Dollars in millions) (unaudited)	September 30, 2015			December 31, 2014			September 30, 2014			December 31, 2014		September 30, 2014
Assets:
Cash and cash equivalents:
Cash and due from banks	$	2,701		$	3,147		$	2,652		(14)%		2%
Interest-bearing deposits with banks	3,952			4,095			3,212			(3	)	23
Federal funds sold and securities purchased under agreements to resell	184			0			284			**		(35	)
Total cash and cash equivalents	6,837			7,242			6,148			(6	)	11
Restricted cash for securitization investors	586			234			405			150		45
Securities available for sale, at fair value	39,431			39,508			39,665			—		(1	)
Securities held to maturity, at carrying value	23,711			22,500			22,182			5		7
Loans held for investment:⁽⁷⁾
Unsecuritized loans held for investment	179,748			171,771			165,021			5		9
Restricted loans for securitization investors	33,581			36,545			36,571			(8	)	(8	)
Total loans held for investment	213,329			208,316			201,592			2		6
Allowance for loan and lease losses	(4,847		)	(4,383		)	(4,212		)	11		15
Net loans held for investment	208,482			203,933			197,380			2		6
Loans held for sale, at lower of cost or fair value	566			626			427			(10	)	33
Premises and equipment, net	3,629			3,685			3,752			(2	)	(3	)
Interest receivable	1,101			1,079			1,043			2		6
Goodwill	13,983			13,978			13,970			—		—
Other assets	15,374			15,382			14,668			—		5
Total assets	$	313,700		$	308,167		$	299,640		2		5



										September 30, 2015 vs.
(Dollars in millions) (unaudited)	September 30, 2015			December 31, 2014			September 30, 2014			December 31, 2014		September 30, 2014
Liabilities:
Interest payable	$	198		$	254		$	191		(22)%		4%
Deposits:
Non-interest bearing deposits	25,055			25,081			25,388			—		(1	)
Interest-bearing deposits	187,848			180,467			178,876			4		5
Total deposits	212,903			205,548			204,264			4		4
Securitized debt obligations	15,656			11,624			10,508			35		49
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	1,021			880			2,330			16		(56	)
Senior and subordinated notes	21,773			18,684			18,534			17		17
Other borrowings	4,328			17,269			10,871			(75	)	(60	)
Total other debt	27,122			36,833			31,735			(26	)	(15	)
Other liabilities	10,136			8,855			8,924			14		14
Total liabilities	266,015			263,114			255,622			1		4

Stockholders’ equity:
Preferred stock	0			0			0			—		—
Common stock	6			6			6			—		—
Additional paid-in capital, net	29,594			27,869			27,272			6		9
Retained earnings	26,407			23,973			23,162			10		14
Accumulated other comprehensive income (“AOCI”)	(142		)	(430		)	(559		)	(67	)	(75	)
Treasury stock, at cost	(8,180		)	(6,365		)	(5,863		)	29		40
Total stockholders’ equity	47,685			45,053			44,018			6		8
Total liabilities and stockholders’ equity	$	313,700		$	308,167		$	299,640		2		5

CAPITAL ONE FINANCIAL CORPORATION (COF)

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


^**	Not meaningful.


⁽¹⁾	As of January 1, 2015, we changed our accounting principle from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. Prior period results, excluding regulatory ratios, have been recast to conform to this presentation.


⁽²⁾	Total net revenue was reduced by $195 million in Q3 2015, $168 million in Q2 2015, $147 million in Q1 2015, $165 million in Q4 2014 and $164 million in Q3 2014 for the estimated uncollectible amount of billed finance charges and fees.


⁽³⁾	Mortgage representation and warranty reserve is comprised of the following:



	2015			2015			2015			2014			2014
(Dollars in millions) (unaudited)	Q3			Q2			Q1			Q4			Q3
(Benefit) provision for mortgage representation and warranty losses before income taxes:
Recorded in continuing operations	$	(7	)	$	(9	)	$	1		$	(11	)	$	—
Recorded in discontinued operations	3			(27		)	(19		)	(41		)	70
Total (benefit) provision for mortgage representation and warranty losses before income taxes	$	(4	)	$	(36	)	$	(18	)	$	(52	)	$	70

Historically, the majority of the (benefit) provision for representation and warranty losses is included net of tax in discontinued operations. The mortgage representation and warranty reserve was $632 million as of September 30, 2015, $731 million as of December 31, 2014 and $1.1 billion as of September 30, 2014.


⁽⁴⁾	Dividends and undistributed earnings allocated to participating securities, earnings per share, and preferred stock dividends are computed independently for each period. Accordingly, the sum of each quarter may not agree to the year-to-date total.

⁽⁵⁾

We recorded a build in the U.K. Payment Protection Insurance customer refund reserve (“U.K. PPI Reserve”) of $69 million in Q3 2015 and $78 million in Q2 2015. In Q2 2015, we also recorded restructuring charges of $147 million under our existing benefit plans as a result of the realignment of our workforce. We report the following non-GAAP financial measures that we believe are helpful for investors to understand the effect of these items on our reported results as they provide an additional presentation of our performance. The table below presents a reconciliation of our reported results to these non-GAAP financial measures:



	2015 Q3						2015 Q2						Nine Months Ended September 30, 2015
(Dollars in millions, except per share data) (unaudited)	Pre-Tax Income		Net Income		Diluted EPS		Pre-Tax Income		Net Income		Diluted EPS		Pre-Tax Income		Net Income		Diluted EPS
Reported results	$	1,648	$	1,114	$	1.98	$	1,236	$	863	$	1.50	$	4,547	$	3,130	$	5.48
Adjustment	69		69		0.12		225		155		0.28		294		224		0.41
Adjusted results	$	1,717	$	1,183	$	2.10	$	1,461	$	1,018	$	1.78	$	4,841	$	3,354	$	5.89


⁽⁶⁾	Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See “Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for additional information on tangible common equity.

⁽⁷⁾

Loans held for investment includes Acquired Loans. We use the term “Acquired Loans” to refer to a certain portion of the loans acquired in the following transactions: (i) the February 2012 transaction where we acquired the assets and assumed the liabilities of substantially all of ING Direct; (ii) the February 2009 Chevy Chase Bank acquisition; and (iii) the May 2012 transaction in which we acquired substantially all of HSBC’s credit card and private-label credit card business in the United States. These loans were recorded at fair value at acquisition and subsequently accounted for based on estimated cash flows expected to be collected over the life of the loans (under the accounting standard formerly known as “SOP 03-3”, or Accounting Standard Codification 310-30). The table below presents amounts related to Acquired Loans accounted for under SOP 03-3:



	2015		2015		2015		2014		2014
(Dollars in millions) (unaudited)	Q3		Q2		Q1		Q4		Q3
Acquired Loans accounted for under SOP 03-3:
Period-end unpaid principal balance	$	20,585	$	21,841	$	23,248	$	24,473	$	25,726
Period-end loans held for investment	19,743		20,970		22,334		23,500		24,685
Average loans held for investment	20,116		21,440		22,773		23,907		25,104


⁽⁸⁾	Calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.


⁽⁹⁾	Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.


⁽¹⁰⁾	Calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. Return on average tangible assets is a non-GAAP measure. See “Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for additional information.

⁽¹¹⁾

Calculated based on the annualized sum of (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly titled measures reported by other companies.

⁽¹²⁾

Calculated based on the annualized sum of (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Return on average tangible common equity is a non-GAAP measure and our calculation may not be comparable to similarly titled measures reported by other companies. See “Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for additional information.


⁽¹³⁾	Calculated based on total non-interest expense for the period divided by total net revenue for the period. The efficiency ratio, excluding the build in the U.K. PPI Reserve and restructuring charges discussed above in Footnote 5, was 52.78% for Q3 2015, 54.63% for Q2 2015 and 53.79% for the nine months ended September 30, 2015.


⁽¹⁴⁾	Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.


⁽¹⁵⁾	Ratios as of the end of Q3 2015 are preliminary and therefore subject to change. See “Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for information on the calculation of each of these ratios.


⁽¹⁶⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for additional information.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



	2015 Q3					2015 Q2					2014 Q3
	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾
(Dollars in millions) (unaudited)	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾
Interest-earning assets:
Loans, including loans held for sale	$	212,076	$	4,753	8.96%	$	207,335	$	4,531	8.74%	$	200,066	$	4,463	8.92%
Investment securities	63,541		386		2.43	63,771		382		2.40	62,582		398		2.54
Cash equivalents and other	7,465		25		1.34	5,479		24		1.75	6,242		26		1.67
Total interest-earning assets	$	283,082	$	5,164	7.30	$	276,585	$	4,937	7.14	$	268,890	$	4,887	7.27

Interest-bearing liabilities:
Interest-bearing deposits	$	185,800	$	271	0.58	$	183,946	$	272	0.59	$	179,928	$	271	0.60
Securitized debt obligations	14,881		39		1.05	13,219		36		1.09	10,110		32		1.27
Senior and subordinated notes	20,806		82		1.58	20,336		80		1.57	17,267		71		1.64
Other borrowings and liabilities	10,114		12		0.47	8,857		12		0.54	12,937		16		0.49
Total interest-bearing liabilities	$	231,601	$	404	0.70	$	226,358	$	400	0.71	$	220,242	$	390	0.71
Net interest income/spread			$	4,760	6.60			$	4,537	6.43			$	4,497	6.56
Impact of non-interest bearing funding					0.13					0.13					0.13
Net interest margin					6.73%					6.56%					6.69%



	Nine Months Ended September 30,
	2015					2014
	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾
(Dollars in millions) (unaudited)	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾
Interest-earning assets:
Loans, including loans held for sale	$	208,444	$	13,824	8.84%	$	196,492	$	13,049	8.85%
Investment securities	63,500		1,174		2.47	62,411		1,223		2.61
Cash equivalents and other	7,444		77		1.38	6,162		80		1.73
Total interest-earning assets	$	279,388	$	15,075	7.19	$	265,065	$	14,352	7.22

Interest-bearing liabilities:
Interest-bearing deposits	$	184,258	$	814	0.59	$	181,587	$	819	0.60
Securitized debt obligations	13,233		108		1.09	10,419		109		1.39
Senior and subordinated notes	20,580		241		1.56	15,822		226		1.90
Other borrowings and liabilities	11,214		39		0.46	11,091		36		0.43
Total interest-bearing liabilities	$	229,285	$	1,202	0.70	$	218,919	$	1,190	0.72
Net interest income/spread			$	13,873	6.49			$	13,162	6.50
Impact of non-interest bearing funding					0.13					0.12
Net interest margin					6.62%					6.62%

__________


⁽¹⁾	Interest income and interest expense and the calculation of average yields on interest-earning assets and average rates on interest-bearing liabilities include the impact of hedge accounting.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics



											2015 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions) (unaudited)	2015 Q3		2015 Q2		2015 Q1		2014 Q4		2014 Q3		2015 Q2		2014 Q3		2015		2014		2015 vs. 2014
Loans Held For Investment (Period End)
Credit card:
Domestic credit card	$	82,178	$	78,984	$	74,131	$	77,704	$	73,143	4%		12%		$	82,178	$	73,143	12%
International credit card	7,957		8,219		7,623		8,172		7,488		(3	)	6		7,957		7,488		6
Total credit card	90,135		87,203		81,754		85,876		80,631		3		12		90,135		80,631		12
Consumer banking:
Auto	41,052		39,991		38,937		37,824		36,254		3		13		41,052		36,254		13
Home loan	26,340		27,595		28,905		30,035		31,203		(5	)	(16	)	26,340		31,203		(16	)
Retail banking	3,598		3,590		3,537		3,580		3,604		—		—		3,598		3,604		—
Total consumer banking	70,990		71,176		71,379		71,439		71,061		—		—		70,990		71,061		—
Commercial banking:
Commercial and multifamily real estate	23,585		22,886		22,831		23,137		22,895		3		3		23,585		22,895		3
Commercial and industrial	27,873		27,660		27,172		26,972		26,071		1		7		27,873		26,071		7
Total commercial lending	51,458		50,546		50,003		50,109		48,966		2		5		51,458		48,966		5
Small-ticket commercial real estate	654		685		738		781		822		(5	)	(20	)	654		822		(20	)
Total commercial banking	52,112		51,231		50,741		50,890		49,788		2		5		52,112		49,788		5
Other loans	92		95		104		111		112		(3	)	(18	)	92		112		(18	)
Total loans held for investment	$	213,329	$	209,705	$	203,978	$	208,316	$	201,592	2		6		$	213,329	$	201,592	6
Loans Held For Investment (Average)
Credit card:
Domestic credit card	$	80,402	$	75,924	$	74,770	$	74,026	$	71,784	6%		12%		$	77,053	$	70,331	10%
International credit card	8,048		7,977		7,811		7,714		7,710		1		4		7,946		7,674		4
Total credit card	88,450		83,901		82,581		81,740		79,494		5		11		84,999		78,005		9
Consumer banking:
Auto	40,560		39,546		38,387		37,072		35,584		3		14		39,505		33,993		16
Home loan	26,934		28,251		29,493		30,604		31,859		(5	)	(15	)	28,217		33,258		(15	)
Retail banking	3,603		3,570		3,561		3,578		3,605		1		—		3,578		3,616		(1	)
Total consumer banking	71,097		71,367		71,441		71,254		71,048		—		—		71,300		70,867		1
Commercial banking:
Commercial and multifamily real estate	23,305		22,853		23,120		23,129		22,409		2		4		23,092		21,623		7
Commercial and industrial	27,620		27,414		27,190		26,409		25,512		1		8		27,411		24,562		12
Total commercial lending	50,925		50,267		50,310		49,538		47,921		1		6		50,503		46,185		9
Small-ticket commercial real estate	667		709		760		801		845		(6	)	(21	)	712		891		(20	)
Total commercial banking	51,592		50,976		51,070		50,339		48,766		1		6		51,215		47,076		9
Other loans	88		93		102		103		114		(5	)	(23	)	94		120		(22	)
Total average loans held for investment	$	211,227	$	206,337	$	205,194	$	203,436	$	199,422	2		6		$	207,608	$	196,068	6
Net Charge-Off Rates
Credit card:
Domestic credit card	3.08%		3.42%		3.55%		3.39%		2.83%		(34	)bps	25	bps	3.35%		3.45%		(10	)bps
International credit card	1.80		2.65		2.80		3.34		3.32		(85	)	(152	)	2.41		3.81		(140	)
Total credit card	2.96		3.35		3.48		3.38		2.88		(39	)	8		3.26		3.48		(22	)



										2015 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions) (unaudited)	2015 Q3		2015 Q2		2015 Q1		2014 Q4	2014 Q3		2015 Q2		2014 Q3		2015		2014		2015 vs. 2014
Consumer banking:
Auto	1.85%		1.22%		1.55%		2.14%	1.98%		63	bps	(13	)bps	1.54%		1.65%		(11	)bps
Home loan	0.01		0.04		0.03		0.07	0.02		(3	)	(1	)	0.03		0.05		(2	)
Retail banking	1.53		1.39		0.96		1.28	1.36		14		17		1.30		1.00		30
Total consumer banking	1.14		0.76		0.89		1.20	1.07		38		7		0.93		0.87		6
Commercial banking:
Commercial and multifamily real estate	(0.15	)	(0.04	)	(0.03	)	0.01	(0.10	)	(11	)	(5	)	(0.07	)	(0.03	)	(4	)
Commercial and industrial	0.61		0.13		0.05		0.10	(0.01	)	48		**		0.26		0.02		24
Total commercial lending	0.26		0.05		0.01		0.06	(0.05	)	21		**		0.11		—		11
Small-ticket commercial real estate	0.50		0.15		0.47		0.80	(0.01	)	35		**		0.37		0.44		(7	)
Total commercial banking	0.26		0.05		0.02		0.07	(0.05	)	21		**		0.11		—		11
Other loans	(5.50	)	(0.79	)	1.56		0.47	(0.61	)	**		**		(1.40	)	0.33		**
Total net charge-offs	1.69		1.64		1.72		1.80	1.52		5		17		1.68		1.70		(2	)
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	3.28%		2.84%		2.92%		3.27%	3.21%		44	bps	7	bps	3.28%		3.21%		7	bps
International credit card	2.81		2.65		2.81		2.94	3.34		16		(53	)	2.81		3.34		(53	)
Total credit card	3.24		2.82		2.91		3.24	3.22		42		2		3.24		3.22		2
Consumer banking:
Auto	6.10		5.58		5.21		6.57	6.14		52		(4	)	6.10		6.14		(4	)
Home loan	0.18		0.17		0.18		0.21	0.14		1		4		0.18		0.14		4
Retail banking	0.62		0.66		0.60		0.64	0.53		(4	)	9		0.62		0.53		9
Total consumer banking	3.62		3.24		2.95		3.60	3.22		38		40		3.62		3.22		40
Nonperforming Loans and Nonperforming Assets Rates⁽¹⁾⁽²⁾
Credit card:
International credit card	0.77%		0.83%		0.84%		0.86%	0.98%		(6	)bps	(21	)bps	0.77%		0.98%		(21	)bps
Total credit card	0.07		0.08		0.08		0.08	0.09		(1	)	(2	)	0.07		0.09		(2	)
Consumer banking:
Auto	0.49		0.40		0.31		0.52	0.49		9		—		0.49		0.49		—
Home loan	1.18		1.13		1.16		1.10	1.04		5		14		1.18		1.04		14
Retail banking	0.74		0.79		0.71		0.61	0.54		(5	)	20		0.74		0.54		20
Total consumer banking	0.76		0.70		0.67		0.77	0.73		6		3		0.76		0.73		3
Commercial banking:
Commercial and multifamily real estate	0.03		0.12		0.18		0.27	0.26		(9	)	(23	)	0.03		0.26		(23	)
Commercial and industrial	1.58		1.56		0.39		0.39	0.37		2		121		1.58		0.37		121
Total commercial lending	0.87		0.91		0.29		0.33	0.32		(4	)	55		0.87		0.32		55
Small-ticket commercial real estate	0.65		0.47		1.62		0.96	0.42		18		23		0.65		0.42		23
Total commercial banking	0.87		0.90		0.31		0.34	0.32		(3	)	55		0.87		0.32		55
Other loans	12.10		10.68		13.33		13.37	14.66		142		(256	)	12.10		14.66		(256	)
Total nonperforming loans	0.50		0.50		0.35		0.39	0.38		—		12		0.50		0.38		12
Total nonperforming assets	0.64		0.64		0.50		0.54	0.53		—		11		0.64		0.53		11

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 8: Financial Summary—Business Segment Results



	Three Months Ended September 30, 2015											Nine Months Ended September 30, 2015
(Dollars in millions) (unaudited)	Total		Credit Card		Consumer Banking		Commercial Banking		Other			Total		Credit Card		Consumer Banking		Commercial Banking		Other
Net interest income (expense)	$	4,760	$	2,866	$	1,443	$	454	$	(3	)	$	13,873	$	8,165	$	4,321	$	1,381	$	6
Non-interest income	1,140		858		174		108		—			3,346		2,519		528		345		(46		)
Total net revenue (loss)⁽³⁾	5,900		3,724		1,617		562		(3		)	17,219		10,684		4,849		1,726		(40		)
Provision (benefit) for credit losses	1,092		831		188		75		(2		)	3,156		2,395		579		184		(2		)
Non-interest expense	3,160		1,848		1,001		272		39			9,516		5,481		2,969		814		252
Income (loss) from continuing operations before income taxes	1,648		1,045		428		215		(40		)	4,547		2,808		1,301		728		(290		)
Income tax provision (benefit)	530		375		155		78		(78		)	1,443		1,007		471		264		(299		)
Income from continuing operations, net of tax	$	1,118	$	670	$	273	$	137	$	38		$	3,104	$	1,801	$	830	$	464	$	9

	Three Months Ended June 30, 2015
(Dollars in millions) (unaudited)	Total		Credit Card		Consumer Banking		Commercial Banking		Other
Net interest income (expense)	$	4,537	$	2,633	$	1,444	$	466	$	(6	)
Non-interest income	1,135		845		196		123		(29		)
Total net revenue (loss)⁽³⁾	5,672		3,478		1,640		589		(35		)
Provision for credit losses	1,129		895		185		49		—
Non-interest expense	3,307		1,857		998		270		182
Income (loss) from continuing operations before income taxes	1,236		726		457		270		(217		)
Income tax provision (benefit)	384		263		166		98		(143		)
Income (loss) from continuing operations, net of tax	$	852	$	463	$	291	$	172	$	(74	)

	Three Months Ended September 30, 2014											Nine Months Ended September 30, 2014
(Dollars in millions) (unaudited)	Total		Credit Card		Consumer Banking		Commercial Banking		Other			Total		Credit Card		Consumer Banking		Commercial Banking		Other
Net interest income (expense)	$	4,497	$	2,627	$	1,425	$	439	$	6		$	13,162	$	7,613	$	4,289	$	1,296	$	(36	)
Non-interest income	1,142		846		179		122		(5		)	3,315		2,470		499		318		28
Total net revenue (loss)⁽³⁾	5,639		3,473		1,604		561		1			16,477		10,083		4,788		1,614		(8		)
Provision (benefit) for credit losses	993		787		198		9		(1		)	2,432		1,894		481		61		(4		)
Non-interest expense	2,985		1,730		956		268		31			8,896		5,175		2,824		790		107
Income (loss) from continuing operations before income taxes	1,661		956		450		284		(29		)	5,149		3,014		1,483		763		(111		)
Income tax provision (benefit)	536		332		161		102		(59		)	1,696		1,054		530		273		(161		)
Income from continuing operations, net of tax	$	1,125	$	624	$	289	$	182	$	30		$	3,453	$	1,960	$	953	$	490	$	50

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial & Statistical Summary—Credit Card Business



											2015 Q3 vs.				Nine Months Ended September 30,
	2015		2015		2015		2014		2014		2015		2014						2015 vs.
(Dollars in millions) (unaudited)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2015		2014		2014
Credit Card⁽⁴⁾
Earnings:
Net interest income	$	2,866	$	2,633	$	2,666	$	2,697	$	2,627	9%		9%		$	8,165	$	7,613	7%
Non-interest income	858		845		816		841		846		2		1		2,519		2,470		2
Total net revenue	3,724		3,478		3,482		3,538		3,473		7		7		10,684		10,083		6
Provision for credit losses	831		895		669		856		787		(7	)	6		2,395		1,894		26
Non-interest expense	1,848		1,857		1,776		1,888		1,730		—		7		5,481		5,175		6
Income from continuing operations before income taxes	1,045		726		1,037		794		956		44		9		2,808		3,014		(7	)
Income tax provision	375		263		369		275		332		43		13		1,007		1,054		(4	)
Income from continuing operations, net of tax	$	670	$	463	$	668	$	519	$	624	45		7		$	1,801	$	1,960	(8	)
Selected performance metrics:
Period-end loans held for investment	$	90,135	$	87,203	$	81,754	$	85,876	$	80,631	3%		12%		$	90,135	$	80,631	12%
Average loans held for investment	88,450		83,901		82,581		81,740		79,494		5		11		84,999		78,005		9
Average yield on loans held for investment⁽⁵⁾	14.39%		13.98%		14.30%		14.61%		14.65%		41	bps	(26	)bps	14.22%		14.44%		(22	)bps
Total net revenue margin⁽⁶⁾	16.84		16.58		16.87		17.31		17.48		26		(64	)	16.76		17.24		(48	)
Net charge-off rate	2.96		3.35		3.48		3.38		2.88		(39	)	8		3.26		3.48		(22	)
30+ day performing delinquency rate	3.24		2.82		2.91		3.24		3.22		42		2		3.24		3.22		2
30+ day delinquency rate	3.29		2.88		2.97		3.30		3.29		41		—		3.29		3.29		—
Nonperforming loan rate⁽¹⁾	0.07		0.08		0.08		0.08		0.09		(1	)	(2	)	0.07		0.09		(2	)
Card loan premium amortization and other intangible accretion⁽⁷⁾	$	5	$	7	$	11	$	11	$	18	(29)%		(72)%		$	23	$	86	(73)%
PCCR intangible amortization	78		80		84		87		90		(3	)	(13	)	242		282		(14	)
Purchase volume⁽⁸⁾	69,875		68,559		57,383		63,484		57,474		2		22		195,817		161,266		21



												2015 Q3 vs.				Nine Months Ended September 30,
	2015		2015			2015		2014		2014		2015		2014						2015 vs.
(Dollars in millions) (unaudited)	Q3		Q2			Q1		Q4		Q3		Q2		Q3		2015		2014		2014
Domestic Card
Earnings:
Net interest income	$	2,613	$	2,395		$	2,421	$	2,432	$	2,361	9%		11%		$	7,429	$	6,809	9%
Non-interest income	814		796			743		768		763		2		7		2,353		2,233		5
Total net revenue	3,427		3,191			3,164		3,200		3,124		7		10		9,782		9,042		8
Provision for credit losses	796		853			610		765		738		(7	)	8		2,259		1,728		31
Non-interest expense	1,630		1,621			1,580		1,676		1,530		1		7		4,831		4,588		5
Income from continuing operations before income taxes	1,001		717			974		759		856		40		17		2,692		2,726		(1	)
Income tax provision	362		259			353		272		306		40		18		974		974		—
Income from continuing operations, net of tax	$	639	$	458		$	621	$	487	$	550	40		16		$	1,718	$	1,752	(2	)
Selected performance metrics:
Period-end loans held for investment	$	82,178	$	78,984		$	74,131	$	77,704	$	73,143	4%		12%		$	82,178	$	73,143	12%
Average loans held for investment	80,402		75,924			74,770		74,026		71,784		6		12		77,053		70,331		10
Average yield on loans held for investment⁽⁵⁾	14.35%		13.95%			14.23%		14.43%		14.46%		40	bps	(11	)bps	14.17%		14.20%		(3	)bps
Total net revenue margin⁽⁶⁾	17.05		16.81			16.93		17.29		17.41		24		(36	)	16.93		17.14		(21	)
Net charge-off rate	3.08		3.42			3.55		3.39		2.83		(34	)	25		3.35		3.45		(10	)
30+ day performing delinquency rate	3.28		2.84			2.92		3.27		3.21		44		7		3.28		3.21		7
30+ day delinquency rate	3.28		2.84			2.92		3.27		3.21		44		7		3.28		3.21		7
Purchase volume⁽⁸⁾	$	63,777	$	62,198		$	52,025	$	58,234	$	53,690	3%		19%		$	178,000	$	150,482	18%
International Card⁽⁴⁾
Earnings:
Net interest income	$	253	$	238		$	245	$	265	$	266	6%		(5)%		$	736	$	804	(8)%
Non-interest income	44		49			73		73		83		(10	)	(47	)	166		237		(30	)
Total net revenue	297		287			318		338		349		3		(15	)	902		1,041		(13	)
Provision for credit losses	35		42			59		91		49		(17	)	(29	)	136		166		(18	)
Non-interest expense	218		236			196		212		200		(8	)	9		650		587		11
Income from continuing operations before income taxes	44		9			63		35		100		**		(56	)	116		288		(60	)
Income tax provision	13		4			16		3		26		**		(50	)	33		80		(59	)
Income from continuing operations, net of tax	$	31	$	5		$	47	$	32	$	74	**		(58	)	$	83	$	208	(60	)
Selected performance metrics:
Period-end loans held for investment	$	7,957	$	8,219		$	7,623	$	8,172	$	7,488	(3)%		6%		$	7,957	$	7,488	6%
Average loans held for investment	8,048		7,977			7,811		7,714		7,710		1		4		7,946		7,674		4
Average yield on loans held for investment⁽⁵⁾	14.88%		14.29		%	14.93%		16.31%		16.42%		59	bps	(154	)bps	14.70%		16.60%		(190	)bps
Total net revenue margin⁽⁶⁾	14.77		14.36			16.31		17.55		18.13		41		(336	)	15.14		18.09		(295	)
Net charge-off rate	1.80		2.65			2.80		3.34		3.32		(85	)	(152	)	2.41		3.81		(140	)
30+ day performing delinquency rate	2.81		2.65			2.81		2.94		3.34		16		(53	)	2.81		3.34		(53	)
30+ day delinquency rate	3.39		3.29			3.44		3.60		4.08		10		(69	)	3.39		4.08		(69	)
Nonperforming loan rate⁽¹⁾	0.77		0.83			0.84		0.86		0.98		(6	)	(21	)	0.77		0.98		(21	)
Purchase volume⁽⁸⁾	$	6,098	$	6,361		$	5,358	$	5,250	$	3,784	(4)%		61%		$	17,817	$	10,784	65%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Consumer Banking Business



											2015 Q3 vs.				Nine Months Ended September 30,
	2015		2015		2015		2014		2014		2015		2014						2015 vs.
(Dollars in millions) (unaudited)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2015		2014		2014
Consumer Banking
Earnings:
Net interest income	$	1,443	$	1,444	$	1,434	$	1,459	$	1,425	—		1%		$	4,321	$	4,289	1%
Non-interest income	174		196		158		185		179		(11)%		(3	)	528		499		6
Total net revenue	1,617		1,640		1,592		1,644		1,604		(1	)	1		4,849		4,788		1
Provision for credit losses	188		185		206		222		198		2		(5	)	579		481		20
Non-interest expense	1,001		998		970		1,045		956		—		5		2,969		2,824		5
Income from continuing operations before income taxes	428		457		416		377		450		(6	)	(5	)	1,301		1,483		(12	)
Income tax provision	155		166		150		135		161		(7	)	(4	)	471		530		(11	)
Income from continuing operations, net of tax	$	273	$	291	$	266	$	242	$	289	(6	)	(6	)	$	830	$	953	(13	)
Selected performance metrics:
Period-end loans held for investment	$	70,990	$	71,176	$	71,379	$	71,439	$	71,061	—		—		$	70,990	$	71,061	—
Average loans held for investment	71,097		71,367		71,441		71,254		71,048		—		—		71,300		70,867		1%
Average yield on loans held for investment⁽⁵⁾	6.25%		6.27%		6.26%		6.45%		6.18%		(2	)bps	7	bps	6.26%		6.19%		7	bps
Auto loan originations	$	5,590	$	5,433	$	5,185	$	5,390	$	5,410	3%		3%		$	16,208	$	15,513	4%
Period-end deposits	170,866		170,321		172,502		168,078		167,624		—		2		170,866		167,624		2
Average deposits	170,816		171,076		169,593		167,727		168,407		—		1		170,500		168,925		1
Average deposit interest rate	0.56%		0.57%		0.57%		0.57%		0.58%		(1	)bps	(2	)bps	0.57%		0.58%		(1	)bps
Core deposit intangible amortization	$	19	$	21	$	22	$	24	$	26	(10)%		(27)%		$	62	$	84	(26)%
Net charge-off rate	1.14%		0.76%		0.89%		1.20%		1.07%		38	bps	7	bps	0.93%		0.87%		6	bps
30+ day performing delinquency rate	3.62		3.24		2.95		3.60		3.22		38		40		3.62		3.22		40
30+ day delinquency rate	4.22		3.80		3.46		4.23		3.82		42		40		4.22		3.82		40
Nonperforming loan rate⁽¹⁾	0.76		0.70		0.67		0.77		0.73		6		3		0.76		0.73		3
Nonperforming asset rate⁽²⁾	1.05		0.98		0.95		1.06		1.01		7		4		1.05		1.01		4

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Commercial Banking Business



												2015 Q3 vs.				Nine Months Ended September 30,
	2015			2015		2015		2014		2014		2015		2014						2015 vs.
(Dollars in millions) (unaudited)	Q3			Q2		Q1		Q4		Q3		Q2		Q3		2015		2014		2014
Commercial Banking
Earnings:
Net interest income	$	454		$	466	$	461	$	455	$	439	(3)%		3%		$	1,381	$	1,296	7%
Non-interest income	108			123		114		132		122		(12	)	(11	)	345		318		8
Total net revenue⁽³⁾	562			589		575		587		561		(5	)	—		1,726		1,614		7
Provision for credit losses	75			49		60		32		9		53		733		184		61		202
Non-interest expense	272			270		272		293		268		1		1		814		790		3
Income from continuing operations before income taxes	215			270		243		262		284		(20	)	(24	)	728		763		(5	)
Income tax provision	78			98		88		93		102		(20	)	(24	)	264		273		(3	)
Income from continuing operations, net of tax	$	137		$	172	$	155	$	169	$	182	(20	)	(25	)	$	464	$	490	(5	)
Selected performance metrics:
Period-end loans held for investment	$	52,112		$	51,231	$	50,741	$	50,890	$	49,788	2%		5%		$	52,112	$	49,788	5%
Average loans held for investment	51,592			50,976		51,070		50,339		48,766		1		6		51,215		47,076		9
Average yield on loans held for investment⁽³⁾⁽⁵⁾	3.21%			3.26%		3.22%		3.33%		3.39%		(5	)bps	(18	)bps	3.23%		3.45%		(22	)bps
Period-end deposits	$	32,751		$	32,909	$	32,575	$	31,954	$	31,918	—		3%		$	32,751	$	31,918	3%
Average deposits	32,806			32,778		32,845		32,363		31,772		—		3		32,809		31,546		4
Average deposit interest rate	0.25%			0.25%		0.24%		0.24%		0.24%		—		1	bps	0.25%		0.24%		1	bps
Core deposit intangible amortization	$	3		$	4	$	4	$	5	$	5	(25)%		(40)%		$	11	$	16	(31)%
Net charge-off (recovery) rate	0.26%			0.05%		0.02%		0.07%		(0.05)%		21	bps	31	bps	0.11%		0.00%		11	bps
Nonperforming loan rate⁽¹⁾	0.87			0.90		0.31		0.34		0.32		(3	)	55		0.87		0.32		55
Nonperforming asset rate⁽²⁾	0.87			0.91		0.31		0.36		0.35		(4	)	52		0.87		0.35		52
Risk category:⁽⁹⁾
Noncriticized	$	49,934		$	49,001	$	48,938	$	49,284	$	48,408	2%		3%		$	49,934	$	48,408	3%
Criticized performing	1,725			1,767		1,645		1,431		1,219		(2	)	42		1,725		1,219		42
Criticized nonperforming	453			463		158		175		161		(2	)	181		453		161		181
Total commercial loans	$	52,112		$	51,231	$	50,741	$	50,890	$	49,788	2		5		$	52,112	$	49,788	5
Risk category as a percentage of period-end commercial loans held for investment:
Noncriticized	95.8%			95.7%		96.5%		96.9%		97.3%		10	bps	(150	)bps	95.8%		97.3%		(150	)bps
Criticized performing	3.3			3.4		3.2		2.8		2.4		(10	)	90		3.3		2.4		90
Criticized nonperforming	0.9			0.9		0.3		0.3		0.3		—		60		0.9		0.3		60
Total commercial loans	100.0		%	100.0%		100.0%		100.0%		100.0%		—		—		100.0%		100.0%		—

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Other and Total



																2015 Q3 vs.				Nine Months Ended September 30,
	2015			2015			2015			2014			2014			2015		2014								2015 vs.
(Dollars in millions) (unaudited)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2015			2014			2014
Other
Earnings:
Net interest (expense) income	$	(3	)	$	(6	)	$	15		$	45		$	6		(50)%		**		$	6		$	(36	)	**
Non-interest income	—			(29		)	(17		)	(1		)	(5		)	**		**		(46		)	28			**
Total net (loss) revenue⁽³⁾	(3		)	(35		)	(2		)	44			1			(91	)	**		(40		)	(8		)	**
Benefit for credit losses	(2		)	—			—			(1		)	(1		)	**		100	%	(2		)	(4		)	(50	)%
Non-interest expense⁽¹⁰⁾	39			182			31			58			31			(79	)	26		252			107			136
Loss from continuing operations before income taxes	(40		)	(217		)	(33		)	(13		)	(29		)	(82	)	38		(290		)	(111		)	161
Income tax benefit	(78		)	(143		)	(78		)	(53		)	(59		)	(45	)	32		(299		)	(161		)	86
Income (loss) from continuing operations, net of tax	$	38		$	(74	)	$	45		$	40		$	30		**		27		$	9		$	50		(82	)
Selected performance metrics:
Period-end loans held for investment	$	92		$	95		$	104		$	111		$	112		(3)%		(18)%		$	92		$	112		(18)%
Average loans held for investment	88			93			102			103			114			(5	)	(23	)	94			120			(22	)
Period-end deposits	9,286			5,550			5,363			5,516			4,722			67		97		9,286			4,722			97
Average deposits	7,352			5,289			5,413			5,265			5,020			39		46		6,025			5,312			13
Total
Earnings:
Net interest income	$	4,760		$	4,537		$	4,576		$	4,656		$	4,497		5%		6%		$	13,873		$	13,162		5%
Non-interest income	1,140			1,135			1,071			1,157			1,142			—		—		3,346			3,315			1
Total net revenue	5,900			5,672			5,647			5,813			5,639			4		5		17,219			16,477			5
Provision for credit losses	1,092			1,129			935			1,109			993			(3	)	10		3,156			2,432			30
Non-interest expense	3,160			3,307			3,049			3,284			2,985			(4	)	6		9,516			8,896			7
Income from continuing operations before income taxes	1,648			1,236			1,663			1,420			1,661			33		(1	)	4,547			5,149			(12	)
Income tax provision	530			384			529			450			536			38		(1	)	1,443			1,696			(15	)
Income from continuing operations, net of tax	$	1,118		$	852		$	1,134		$	970		$	1,125		31		(1	)	$	3,104		$	3,453		(10	)
Selected performance metrics:
Period-end loans held for investment	$	213,329		$	209,705		$	203,978		$	208,316		$	201,592		2%		6%		$	213,329		$	201,592		6%
Average loans held for investment	211,227			206,337			205,194			203,436			199,422			2		6		207,608			196,068			6
Period-end deposits	212,903			208,780			210,440			205,548			204,264			2		4		212,903			204,264			4
Average deposits	210,974			209,143			207,851			205,355			205,199			1		3		209,334			205,783			2

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Notes to Loan and Business Segments Disclosures (Tables 7—12)


^**	Not meaningful.


⁽¹⁾	The nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment.

⁽²⁾

Nonperforming assets consist of nonperforming loans, real estate owned (“REO”) and other foreclosed assets. The nonperforming asset rates are calculated based on nonperforming assets for each category divided by the combined period-end total of loans held for investment, REO and other foreclosed assets for each respective category. Calculation of nonperforming assets rates for our Consumer Banking and Commercial Banking businesses are adjusted to exclude the impact of acquired REO.

⁽³⁾

Some of our tax-related commercial investments generate tax-exempt income or tax credits. Accordingly, we make certain reclassifications within our Commercial Banking business results to present revenues and yields on a taxable-equivalent basis, calculated assuming an effective tax rate approximately equal to our federal statutory tax rate of 35% with offsetting reclassifications within the Other category.


⁽⁴⁾	Includes a build in our U.K. PPI Reserve in Q3 2015 and Q2 2015, which impacted both revenue and non-interest expense within our International Card business.


⁽⁵⁾	Calculated based on annualized interest income for the period divided by average loans held for investment during the period for the specified loan category. Annualized interest income excludes various allocations including funds transfer pricing that assigns certain balance sheet assets, deposits and other liabilities and their related revenue and expenses attributable to each business segment.


⁽⁶⁾	Calculated based on annualized total net revenue for the period divided by average loans held for investment during the period for the specified loan category.


⁽⁷⁾	Represents the net reduction in interest income attributable to non-SOP 03-3 card loan premium amortization and other intangible accretion associated with the May 2012 transaction in which we acquired substantially all of HSBC’s credit card and private-label credit card business in the United States.


⁽⁸⁾	Includes credit card purchase transactions, net of returns for loans classified as held for investment and held for sale. Excludes cash advance and balance transfer transactions.


⁽⁹⁾	Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.


⁽¹⁰⁾	Includes restructuring charges for employee severance and related benefits.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures⁽¹⁾



	Basel III Standardized
(Dollars in millions) (unaudited)	September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014		September 30, 2014
Regulatory Capital Metrics
Common equity Tier 1 capital	$	30,109	$	29,804	$	29,671	$	29,534	$	29,116
Tier 1 capital	33,402		32,614		31,493		31,355		30,451
Total risk-based capital⁽²⁾	37,696		37,115		35,878		35,879		34,860
Risk-weighted assets⁽³⁾	249,250		246,106		238,011		236,944		228,759
Average assets for the leverage ratio	300,010		293,291		295,556		291,243		286,070
Capital Ratios
Common equity Tier 1 capital ratio⁽⁴⁾	12.1%		12.1%		12.5%		12.5%		12.7%
Tier 1 risk-based capital ratio⁽⁵⁾	13.4		13.3		13.2		13.2		13.3
Total risk-based capital ratio⁽⁶⁾	15.1		15.1		15.1		15.1		15.2
Tier 1 leverage ratio⁽⁷⁾	11.1		11.1		10.7		10.8		10.6
Tangible common equity (“TCE”) ratio⁽⁸⁾	9.8		9.7		9.8		9.5		9.6

Reconciliation of Non-GAAP Measures

We report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include tangible common equity (“TCE”) and tangible assets. The tables below provide the details of the calculation of our non-GAAP capital measures and regulatory capital. While our non-GAAP capital measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.



	2015			2015			2015			2014			2014
(Dollars in millions) (unaudited)	Q3			Q2			Q1			Q4			Q3
Tangible Common Equity (Period End)
Stockholders’ equity	$	47,685		$	46,659		$	45,730		$	45,053		$	44,018
Goodwill and intangible assets⁽⁹⁾	(15,153		)	(15,240		)	(15,307		)	(15,383		)	(15,472		)
Noncumulative perpetual preferred stock⁽¹⁰⁾	(3,294		)	(2,810		)	(1,822		)	(1,822		)	(1,336		)
Tangible common equity	$	29,238		$	28,609		$	28,601		$	27,848		$	27,210
Tangible Common Equity (Average)
Average stockholders’ equity	$	48,456		$	47,255		$	46,397		$	45,576		$	44,827
Average goodwill and intangible assets⁽⁹⁾	(15,183		)	(15,256		)	(15,339		)	(15,437		)	(15,525		)
Average noncumulative perpetual preferred stock⁽¹⁰⁾	(3,049		)	(2,377		)	(1,822		)	(1,681		)	(1,338		)
Average tangible common equity	$	30,224		$	29,622		$	29,236		$	28,458		$	27,964




	2015			2015			2015			2014			2014
(Dollars in millions) (unaudited)	Q3			Q2			Q1			Q4			Q3
Tangible Assets (Period End)
Total assets⁽¹¹⁾	$	313,700		$	310,510		$	306,224		$	308,167		$	299,640
Goodwill and intangible assets⁽⁹⁾	(15,153		)	(15,240		)	(15,307		)	(15,383		)	(15,472		)
Tangible assets⁽¹¹⁾	$	298,547		$	295,270		$	290,917		$	292,784		$	284,168
Tangible Assets (Average)
Average total assets⁽¹¹⁾	$	313,822		$	307,206		$	309,401		$	304,153		$	298,913
Average goodwill and intangible assets⁽⁹⁾	(15,183		)	(15,256		)	(15,339		)	(15,437		)	(15,525		)
Average tangible assets⁽¹¹⁾	$	298,639		$	291,950		$	294,062		$	288,716		$	283,388

Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach



(Dollars in millions) (unaudited)	September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014
Common equity excluding AOCI	$	44,533		$	44,246		$	44,120		$	43,661		$	43,241
Adjustments:
AOCI^(12)(13)	75			(128		)	(26		)	(69		)	(146		)
Goodwill⁽⁹⁾	(13,805		)	(13,809		)	(13,801		)	(13,805		)	(13,801		)
Intangible assets^(9)(13)	(374		)	(413		)	(450		)	(243		)	(266		)
Other	(320		)	(92		)	(172		)	(10		)	88
Common equity Tier 1 capital	$	30,109		$	29,804		$	29,671		$	29,534		$	29,116
Risk-weighted assets⁽³⁾	$	249,250		$	246,106		$	238,011		$	236,944		$	228,759
Common equity Tier 1 capital ratio⁽⁴⁾	12.1%			12.1%			12.5%			12.5%			12.7%

__________


⁽¹⁾	Regulatory capital metrics and capital ratios as of the end of Q3 2015 are preliminary and therefore subject to change.


⁽²⁾	Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.


⁽³⁾	As of January 1, 2015, risk-weighted assets are calculated under the Basel III Standardized Approach, subject to transition provisions. Prior to January 1, 2015 risk-weighted assets were calculated under Basel I.


⁽⁴⁾	Common equity Tier 1 capital ratio is a regulatory measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets.


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


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


⁽⁷⁾	Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.


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


⁽⁹⁾	Includes impact of related deferred taxes.


⁽¹⁰⁾	Includes related surplus.


⁽¹¹⁾	As of January 1, 2015, we changed our accounting principle from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. Prior period results, excluding regulatory ratios, have been recast to conform to this presentation.


⁽¹²⁾	Amounts presented are net of tax.


⁽¹³⁾	Amounts based on transition provisions for regulatory capital deductions and adjustments of 20% for 2014 and 40% for 2015.

CAPITAL ONE FINANCIAL CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - October 22, 2015

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