Capital One Financial Corporation Consolidated

        Table    1:

Financial & Statistical Summary—Consolidated

        Table    2:

Notes to Consolidated Financial & Statistical Summary (Table 1)

        Table    3:

Consolidated Statements of Income

        Table    4:

Consolidated Balance Sheets

        Table    5:

Average Balances, Net Interest Income and Net Interest Margin

        Table    6:

Loan Information and Performance Statistics

        Table    7:

Loan Information and Performance Statistics (Excluding Acquired Loans) ⁽³⁾

Business Segment Detail

        Table    8:

Financial & Statistical Summary—Credit Card Business

        Table    9:

Financial & Statistical Summary—Consumer Banking Business

        Table  10:

Financial & Statistical Summary—Commercial Banking Business

        Table  11:

Financial & Statistical Summary—Other and Total

        Table  12:

Notes to Loan and Business Segment Disclosures (Tables 6 — 11)

Other

        Table  13:

Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures

The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation, and investors should refer to our September 30, 2012 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.

References to ING Direct refer to the business and assets acquired and liabilities assumed in the February 17, 2012 acquisition. References to HSBC refer to the May 1, 2012 transaction in which we acquired substantially all of HSBC’s credit card and private-label credit card business in the United States (“HSBC U.S. card”).

We use the term “acquired loans” to refer to a limited portion of the credit card loans acquired in the HSBC U.S. card acquisition and the substantial majority of loans acquired in the ING Direct and Chevy Chase Bank (“CCB”) acquisitions, which were recorded at fair value at acquisition and subsequently accounted for based on estimated cash flows expected to be collected over the life of the loans (under the accounting standard formerly known as “SOP 03-3”). Because SOP 03-3 takes into consideration future credit losses expected to be incurred over the life of the loans, there are no charge-offs or an allowance associated with these loans unless the estimated cash flows expected to be collected decrease subsequent to acquisition. In addition, these loans are not classified as delinquent or nonperforming even though the customer may be contractually past due because we expect that we will fully collect the carrying value of these loans. The accounting and classification of these loans may significantly alter some of our reported credit quality metrics. We therefore supplement certain reported credit quality metrics with metrics adjusted to exclude the impact of these acquired loans.

(Dollars in millions, except per share data and as noted) (unaudited)

Earnings

Net interest income

Non-interest income ^{(4) (5)}

Total net revenue ⁽⁶⁾

Provision for credit losses

Marketing expenses

Operating expenses ⁽⁷⁾

Income from continuing operations before income taxes

Income tax provision

Income from continuing operations, net of tax

Loss from discontinued operations, net of tax ⁽⁴⁾

Net income

Dividends and undistributed earnings allocated to participating securities

Net income available to common stockholders

Common Share Statistics

Basic EPS ⁽⁸⁾:

Income from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net income per common share

Diluted EPS ⁽⁸⁾:

Income from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net income per common share

Weighted average common shares outstanding (in millions):

Basic EPS

Diluted EPS

Common shares outstanding (period end, in millions)

Dividends per common share

Tangible book value per common share (period end) ⁽⁹⁾

Balance Sheet (Period End)

Loans held for investment ⁽¹⁰⁾

Interest-earning assets

Total assets

Interest-bearing deposits

Total deposits

Borrowings

Stockholders’ equity

Balance Sheet (Quarterly Average Balances)

Average loans held for investment ⁽¹⁰⁾

Average interest-earning assets

Average total assets

Average interest-bearing deposits

Average total deposits

Average borrowings

Average stockholders’ equity

Performance Metrics

Net interest income growth (quarter over quarter)

Non-interest income growth (quarter over quarter)

Total net revenue growth (quarter over quarter)

Total net revenue margin ⁽¹¹⁾

Net interest margin ⁽¹²⁾

Return on average assets ⁽¹³⁾

Return on average total stockholders’ equity ⁽¹⁴⁾

Return on average tangible common equity ⁽¹⁵⁾

Non-interest expense as a % of average loans held for investment ⁽¹⁶⁾

Efficiency ratio ⁽¹⁷⁾

Effective income tax rate

Full-time equivalent employees (in thousands), period end

Credit Quality Metrics ^{(10) (18)}

Allowance for loan and lease losses

Allowance as a % of loans held for investment

Allowance as a % of loans held for investment (excluding acquired loans)

Net charge-offs

Net charge-off rate ⁽¹⁹⁾

Net charge-off rate (excluding acquired loans) ⁽¹⁹⁾

30+ day performing delinquency rate

30+ day performing delinquency rate (excluding acquired loans)

30+ day delinquency rate ⁽²⁰⁾

30+ day delinquency rate (excluding acquired loans) ⁽²⁰⁾

Capital Ratios ⁽²¹⁾

Tier 1 common ratio ⁽²²⁾

Tier 1 risk-based capital ratio ⁽²³⁾

Total risk-based capital ratio ⁽²⁴⁾

Tangible common equity (“TCE”) ratio ⁽²⁵⁾

Certain prior period amounts have been reclassified to conform to the current period presentation.

Results for Q2 2012 and thereafter include the impact of the May 1, 2012 closing of the HSBC transaction, which resulted in the addition of approximately $28.2 billion in credit card receivables at closing.

Results for Q1 2012 and thereafter include the impact of the February 17, 2012 acquisition of ING Direct, which resulted in the addition of loans of $40.4 billion, other assets of $53.9 billion and deposits of $84.4 billion at acquisition.

We did not record a provision for repurchase losses in Q3 2012. We recorded a provision for repurchase losses of $180 million in Q2 2012, $169 million in Q1 2012, $59 million in Q4 2011 and $72 million in Q3 2011. The majority of the provision for repurchase losses is generally included net of tax in discontinued operations, with the remaining amount included pre-tax in non-interest income. The mortgage representation and warranty reserve decreased to $919 million as of September 30, 2012, from $1.0 billion as of June 30, 2012, due to the settlement of claims in Q3 2012 totaling $83 million.

Includes a bargain purchase gain of $594 million recognized in earnings in Q1 2012 attributable to the February 17, 2012 acquisition of ING Direct.

Total net revenue was reduced by $185 million in Q3 2012, $311 million in Q2 2012, $123 million in Q1 2012, $130 million in Q4 2011 and $24 million in Q3 2011, for the estimated uncollectible amount of billed finance charges and fees. Premium amortization related to the HSBC U.S. card and ING Direct acquisitions reduced revenue by $133 million for Q3 2012, $104 million in Q2 2012, and $30 million in Q1 2012.

Includes merger-related expenses, including transaction costs, attributable to acquisitions of $48 million in Q3 2012, $133 million in Q2 2012, $86 million in Q1 2012, $27 million in Q4 2011, and $18 million in Q3 2011. Also includes intangible amortization expense related to purchased credit card relationships (“PCCR”) from the HSBC U.S. card acquisition of $127 million in Q3 2012 and $85 million in Q2 2012. Other asset and intangible amortization expense related to the HSBC U.S. Card and ING Direct acquisitions totaled $42 million in Q3 2012, $41 million in Q2 2012, and $16 million in Q1 2012.

Earnings per share is computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.

Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See “Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for the calculation of tangible common equity.

See “Table 12: Notes to Loan and Business Segment Disclosures (Tables 6 — 11)” for information on acquired loans accounted for based on estimated cash flows expected to be collected.

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

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

Calculated based on annualized income from continuing operations, net of tax, for the period divided by average total assets for the period.

Calculated based on annualized income from continuing operations, net of tax, for the period divided by average stockholders’ equity for the period.

Calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible common equity for the period.

Calculated based on annualized non-interest expense for the period divided by average loans held for investment for the period.

Calculated based on non-interest expense, excluding goodwill impairment charges, for the period divided by total net revenue for the period.

Loans acquired as part of the HSBC U.S. card, ING Direct and CCB acquisitions classified as held for investment are included in the denominator used in calculating our reported credit quality metrics. We supplement certain reported credit quality metrics with metrics adjusted to exclude from the denominator acquired loans accounted for based on estimated expected cash flows to be collected (formerly SOP 03-3). See “Table 7: Loan Information and Performance Statistics (Excluding Acquired Loans)” for additional information.

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

The 30+ day total delinquency rate as of the end of Q3 2012 will be provided in the September 30, 2012 Quarterly Report on Form 10-Q.

Regulatory capital ratios as of the end of Q3 2012 are preliminary and therefore subject to change.

Tier 1 common ratio is a regulatory capital measure calculated based on Tier 1 common capital divided by risk-weighted assets. See “Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for the calculation of this ratio.

Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets. See “Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for the calculation of this ratio.

Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighted assets. See “Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for the calculation of this ratio.

TCE ratio is a non-GAAP measure calculated based on tangible common equity divided by tangible assets. See “Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for the calculation of this ratio and non-GAAP reconciliation.

(Dollars in millions, except per share data) (unaudited)

Interest income:

Loans held for investment

Investment securities

Other

Total interest income

Interest expense:

Deposits

Securitized debt obligations

Senior and subordinated notes

Other borrowings

Total interest expense

Net interest income

Provision for credit losses

Net interest income after provision for credit losses

Non-interest income:

Service charges and other customer-related fees

Interchange fees, net

Net other-than-temporary impairment losses recognized in earnings

Bargain purchase gain ⁽¹⁾

Other

Total non-interest income

Non-interest expense:

Salaries and associate benefits

Marketing

Communications and data processing

Supplies and equipment

Occupancy

Merger-related expenses

Other

Total non-interest expense

Income from continuing operations before income taxes

Income tax provision

Income from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net income

Dividends and undistributed earnings allocated to participating securities

Net income available to common stockholders

Basic earnings per common share:

Income from continuing operations

Loss from discontinued operations

Net income per basic common share

Diluted earnings per common share:

Income from continuing operations

Loss from discontinued operations

Net income per diluted common share

Weighted average common shares outstanding (in millions):

Basic EPS

Diluted EPS

Dividends paid per common share

Represents the excess of the fair value of the net assets acquired in the ING Direct acquisition as of the acquisition date of February 17, 2012 over the consideration transferred.

(Dollars in millions)(unaudited)

Assets:

Cash and due from banks

Interest-bearing deposits with banks

Federal funds sold and securities purchased under agreements to resell

Cash and cash equivalents

Restricted cash for securitization investors

Securities available for sale, at fair value

Loans held for investment:

Unsecuritized loans held for investment

Restricted loans for securitization investors