Capital One Reports Third Quarter 2024 Net Income of $1.8 billion, or $4.41 per share

By: Capital One Financial Corporation via Business Wire

October 24, 2024 at 16:05 PM EDT

Net of adjusting items, Third Quarter 2024 Net Income of $4.51 per share⁽¹⁾

Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2024 of $1.8 billion, or $4.41 per diluted common share, compared with net income of $597 million, or $1.38 per diluted common share in the second quarter of 2024, and with net income of $1.8 billion, or $4.45 per diluted common share in the third quarter of 2023. Adjusted net income⁽¹⁾ for the third quarter of 2024 was $4.51 per diluted common share.

"Strong third quarter results included top-line growth in our domestic card and auto businesses and stable consumer credit results," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. “On the Discover acquisition, we continue to work through the regulatory approval process, and we’re fully mobilized to plan and deliver a successful integration.”

The quarter included the following adjusting items:

(Dollars in millions, except per share data)

Pre-Tax

Impact

After-Tax

Diluted EPS

Impact

Discover integration expenses

0.12

FDIC special assessment

)

(0.02

)

All comparisons below are for the third quarter of 2024 compared with the second quarter of 2024 unless otherwise noted.

Third Quarter 2024 Income Statement Summary:

Total net revenue increased 5 percent to $10.0 billion.
Total non-interest expense increased 7 percent to $5.3 billion:
- 5 percent increase in marketing.
- 8 percent increase in operating expenses.
Pre-provision earnings⁽²⁾ increased 3 percent to $4.7 billion.
Provision for credit losses decreased $1.4 billion to $2.5 billion:
- Net charge-offs of $2.6 billion.
- $134 million loan reserve release.
Net interest margin of 7.11 percent, an increase of 41 basis point.
Efficiency ratio of 53.07 percent.
- Adjusted efficiency ratio⁽¹⁾ of 52.53 percent.
Operating efficiency ratio of 41.95 percent.
- Adjusted operating efficiency ratio⁽¹⁾of 41.41 percent.

Third Quarter 2024 Balance Sheet Summary:

Common equity Tier 1 capital ratio⁽³⁾ under Basel III Standardized Approach of 13.6 percent at September 30, 2024.
Period-end loans held for investment in the quarter increased $2.1 billion, or 1 percent, to $320.2 billion.
- Credit Card period-end loans increased $2.8 billion, or 2 percent, to $156.7 billion.
  - Domestic Card period-end loans increased $2.3 billion, or 2 percent, to $149.4 billion.
- Consumer Banking period-end loans increased $1.1 billion, or 1 percent, to $76.8 billion.
  - Auto period-end loans increased $1.1 billion, or 2 percent, to $75.5 billion.
- Commercial Banking period-end loans decreased $1.8 billion, or 2 percent, to $86.8 billion.
Average loans held for investment in the quarter increased $3.4 billion, or 1 percent, to $318.3 billion.
- Credit Card average loans increased $3.5 billion, or 2 percent, to $154.0 billion.
  - Domestic Card average loans increased $3.3 billion, or 2 percent, to $147.0 billion.
- Consumer Banking average loans increased $796 million, or 1 percent, to $76.2 billion.
  - Auto average loans increased $822 million, or 1 percent, to $74.9 billion.
- Commercial Banking average loans decreased $934 million, or 1 percent, to $88.1 billion.
Period-end total deposits increased $2.2 billion, or 1 percent, to $353.6 billion, while average deposits increased $1.6 billion, or less than 1 percent, to $351.1 billion.
Interest-bearing deposits rate paid increased 7 basis points to 3.63 percent.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on October 24, 2024 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 November 7, 2024 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. Forward-looking statements often use words such as “will,” “anticipate,” “target,” “expect,” “think,” “estimate,” “intend,” “plan,” “goal,” “believe,” “forecast,” “outlook” or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. 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. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under “Part I—Item 1A. Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $353.6 billion in deposits and $486.4 billion in total assets as of September 30, 2024. 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 and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

⁽¹⁾		This is a non-GAAP measure. We believe non-GAAP measures help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on October 24, 2024 with the SEC, “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.
⁽²⁾		Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on October 24, 2024 with the SEC, “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.
⁽³⁾		Regulatory capital metrics as of September 30, 2024 are preliminary and therefore subject to change.

Exhibit 99.2

Capital One Financial Corporation Financial Supplement⁽¹⁾⁽²⁾ Third Quarter2024 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 September 30, 2024 once it is filed with the Securities and Exchange Commission.
⁽²⁾		This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation of any non-GAAP financial measures.

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 1: Financial Summary—Consolidated

																2024 Q3				Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)	2024			2024			2024			2023			2023			2024		2023								2024 vs.
(Dollars in millions, except per share data and as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2024			2023			2023
Income Statement
Net interest income	$	8,076		$	7,546		$	7,488		$	7,519		$	7,423		7	%	9	%	$	23,110		$	21,722		6	%
Non-interest income		1,938			1,960			1,914			1,987			1,943		(1	)	—			5,812			5,559		5
Total net revenue⁽¹⁾		10,014			9,506			9,402			9,506			9,366		5		7			28,922			27,281		6
Provision for credit losses		2,482			3,909			2,683			2,857			2,284		(37	)	9			9,074			7,569		20
Non-interest expense:
Marketing		1,113			1,064			1,010			1,254			972		5		15			3,187			2,755		16
Operating expense		4,201			3,882			4,127			4,463			3,888		8		8			12,210			11,844		3
Total non-interest expense		5,314			4,946			5,137			5,717			4,860		7		9			15,397			14,599		5
Income from continuing operations before income taxes		2,218			651			1,582			932			2,222		**		—			4,451			5,113		(13	)
Income tax provision		441			54			302			226			432		**		2			797			932		(14	)
Net income		1,777			597			1,280			706			1,790		198		(1	)		3,654			4,181		(13	)
Dividends and undistributed earnings allocated to participating securities⁽²⁾		(28	)		(9	)		(23	)		(10	)		(28	)	**		—			(60	)		(67	)	(10	)
Preferred stock dividends		(57	)		(57	)		(57	)		(57	)		(57	)	—		—			(171	)		(171	)	—
Net income available to common stockholders	$	1,692		$	531		$	1,200		$	639		$	1,705		**		(1	)	$	3,423		$	3,943		(13	)
Common Share Statistics
Basic earnings per common share:⁽²⁾
Net income per basic common share	$	4.42		$	1.39		$	3.14		$	1.67		$	4.46		**		(1	)%	$	8.94		$	10.31		(13	)%
Diluted earnings per common share:⁽²⁾
Net income per diluted common share	$	4.41		$	1.38		$	3.13		$	1.67		$	4.45		**		(1	)%	$	8.92		$	10.28		(13	)%
Weighted-average common shares outstanding (in millions):
Basic		383.0			383.1			382.2			381.9			382.5		—		—			382.8			382.7		—
Diluted		383.7			383.9			383.4			382.8			383.3		—		—			383.7			383.6		—
Common shares outstanding (period-end, in millions)		381.5			381.9			382.1			380.4			381.0		—		—			381.5			381.0		—
Dividends declared and paid per common share	$	0.60		$	0.60		$	0.60		$	0.60		$	0.60		—		—		$	1.80		$	1.80		—
Tangible book value per common share (period-end)⁽³⁾		112.36			99.28			98.67			99.78			87.97		13	%	28	%		112.36			87.97		28	%

											2024 Q3				Nine Months Ended September 30,
(Dollars in millions)	2024		2024		2024		2023		2023		2024		2023						2024 vs.
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2024		2023		2023
Balance Sheet (Period-End)
Loans held for investment	$	320,243	$	318,186	$	315,154	$	320,472	$	314,780	1	%	2	%	$	320,243	$	314,780	2	%
Interest-earning assets		458,189		452,547		453,557		449,701		445,428	1		3			458,189		445,428	3
Total assets		486,433		480,018		481,720		478,464		471,435	1		3			486,433		471,435	3
Interest-bearing deposits		327,253		324,437		323,352		320,389		317,217	1		3			327,253		317,217	3
Total deposits		353,631		351,442		350,969		348,413		346,011	1		2			353,631		346,011	2
Borrowings		49,336		47,956		50,361		49,856		49,247	3		—			49,336		49,247	—
Common equity		58,080		53,135		52,955		53,244		48,823	9		19			58,080		48,823	19
Total stockholders’ equity		62,925		57,981		57,801		58,089		53,668	9		17			62,925		53,668	17
Balance Sheet (Average Balances)
Loans held for investment	$	318,255	$	314,888	$	314,614	$	315,890	$	312,759	1	%	2	%	$	315,927	$	310,075	2	%
Interest-earning assets		454,484		450,908		447,803		446,929		443,532	1		2			451,078		439,321	3
Total assets		481,219		477,285		474,995		472,594		469,860	1		2			477,816		466,279	2
Interest-bearing deposits		324,509		322,581		318,450		316,808		316,032	1		3			321,856		312,702	3
Total deposits		351,125		349,488		345,657		345,328		345,013	—		2			348,765		342,956	2
Borrowings		48,274		48,842		50,474		51,070		49,736	(1	)	(3	)		49,194		48,746	1
Common equity		56,443		53,262		53,152		50,786		50,166	6		13			54,293		50,202	8
Total stockholders’ equity		61,289		58,107		57,998		55,632		55,012	5		11			59,139		55,048	7

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 2: Selected Metrics—Consolidated

																2024 Q3				Nine Months Ended September 30,
(Dollars in millions, except as noted)		2024			2024			2024			2023			2023		2024		2023								2024 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3			2024			2023		2023
Performance Metrics
Net interest income growth (period over period)		7	%		1	%		—			1	%		4	%	**		**			6	%		9	%	**
Non-interest income growth (period over period)		(1	)		2			(4	)%		2			2		**		**			5			5		**
Total net revenue growth (period over period)		5			1			(1	)		1			4		**		**			6			8		**
Total net revenue margin⁽⁴⁾		8.81			8.43			8.40			8.51			8.45		38 bps		36 bps			8.55			8.28		27 bps
Net interest margin⁽⁵⁾		7.11			6.70			6.69			6.73			6.69		41		42			6.83			6.59		24
Return on average assets		1.48			0.50			1.08			0.60			1.52		98		(4	)		1.02			1.20		(18	)
Return on average tangible assets⁽⁶⁾		1.53			0.52			1.11			0.62			1.58		101		(5	)		1.05			1.24		(19	)
Return on average common equity⁽⁷⁾		11.99			3.99			9.03			5.03			13.59		800		(160	)		8.41			10.47		(206	)
Return on average tangible common equity⁽⁸⁾		16.42			5.59			12.67			7.20			19.59		1,083		(317	)		11.69			15.01		(332	)
Efficiency ratio⁽⁹⁾		53.07			52.03			54.64			60.14			51.89		104		118			53.24			53.51		(27	)
Operating efficiency ratio⁽¹⁰⁾		41.95			40.84			43.89			46.95			41.51		111		44			42.22			43.41		(119	)
Effective income tax rate for continuing operations		19.9			8.3			19.1			24.2			19.4		1,160		50			17.9			18.2		(30	)
Employees (period-end, in thousands)		52.5			52.1			51.3			52.0			54.2		1	%	(3	)%		52.5			54.2		(3	)%
Credit Quality Metrics
Allowance for credit losses	$	16,534		$	16,649		$	15,380		$	15,296		$	14,955		(1	)%	11	%	$	16,534		$	14,955		11	%
Allowance coverage ratio		5.16	%		5.23	%		4.88	%		4.77	%		4.75	%	(7) bps		41 bps			5.16	%		4.75	%	41 bps
Net charge-offs	$	2,604		$	2,644		$	2,616		$	2,533		$	1,999		(2	)%	30	%	$	7,864		$	5,881		34	%
Net charge-off rate⁽¹¹⁾		3.27	%		3.36	%		3.33	%		3.21	%		2.56	%	(9) bps		71 bps			3.32	%		2.53	%	79 bps
30+ day performing delinquency rate		3.58			3.36			3.40			3.71			3.42		22		16			3.58			3.42		16
30+ day delinquency rate		3.89			3.63			3.67			3.99			3.71		26		18			3.89			3.71		18
Capital Ratios⁽¹²⁾
Common equity Tier 1 capital		13.6	%		13.2	%		13.1	%		12.9	%		13.0	%	40 bps		60 bps			13.6	%		13.0	%	60 bps
Tier 1 capital		14.9			14.5			14.4			14.2			14.3		40		60			14.9			14.3		60
Total capital		16.6			16.3			16.3			16.0			16.2		30		40			16.6			16.2		40
Tier 1 leverage		11.6			11.3			11.3			11.2			11.2		30		40			11.6			11.2		40
Tangible common equity (“TCE”)⁽¹³⁾		9.1			8.2			8.1			8.2			7.3		90		180			9.1			7.3		180

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 3: Consolidated Statements of Income

																2024 Q3				Nine Months Ended September 30,
(Dollars in millions, except as noted)		2024			2024			2024			2023			2023		2024		2023								2024 vs.
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3			2024			2023		2023
Interest income:
Loans, including loans held for sale	$	10,547		$	9,993		$	9,920		$	9,934		$	9,696		6	%	9	%	$	30,460		$	27,476		11	%
Investment securities		733			700			687			669			627		5		17			2,120			1,881		13
Other		580			587			570			542			550		(1	)	5			1,737			1,436		21
Total interest income		11,860			11,280			11,177			11,145			10,873		5		9			34,317			30,793		11
Interest expense:
Deposits		2,945			2,874			2,812			2,745			2,611		2		13			8,631			6,744		28
Securitized debt obligations		234			258			261			263			249		(9	)	(6	)		753			696		8
Senior and subordinated notes		596			591			606			608			579		1		3			1,793			1,596		12
Other borrowings		9			11			10			10			11		(18	)	(18	)		30			35		(14	)
Total interest expense		3,784			3,734			3,689			3,626			3,450		1		10			11,207			9,071		24
Net interest income		8,076			7,546			7,488			7,519			7,423		7		9			23,110			21,722		6
Provision for credit losses		2,482			3,909			2,683			2,857			2,284		(37	)	9			9,074			7,569		20
Net interest income after provision for credit losses		5,594			3,637			4,805			4,662			5,139		54		9			14,036			14,153		(1	)
Non-interest income:
Interchange fees, net		1,228			1,249			1,145			1,207			1,234		(2	)	—			3,622			3,586		1
Service charges and other customer-related fees		501			459			462			424			453		9		11			1,422			1,243		14
Net securities gains (losses)		(35	)		—			—			(34	)		—		**		**			(35	)		—		**
Other		244			252			307			390			256		(3	)	(5	)		803			730		10
Total non-interest income		1,938			1,960			1,914			1,987			1,943		(1	)	—			5,812			5,559		5
Non-interest expense:
Salaries and associate benefits		2,391			2,200			2,478			2,284			2,274		9		5			7,069			7,018		1
Occupancy and equipment		587			551			554			628			518		7		13			1,692			1,532		10
Marketing		1,113			1,064			1,010			1,254			972		5		15			3,187			2,755		16
Professional services		402			316			262			359			295		27		36			980			909		8
Communications and data processing		358			355			351			345			344		1		4			1,064			1,038		3
Amortization of intangibles		20			19			19			22			24		5		(17	)		58			60		(3	)
Other		443			441			463			825			433		—		2			1,347			1,287		5
Total non-interest expense		5,314			4,946			5,137			5,717			4,860		7		9			15,397			14,599		5
Income from continuing operations before income taxes		2,218			651			1,582			932			2,222		**		—			4,451			5,113		(13	)
Income tax provision		441			54			302			226			432		**		2			797			932		(14	)
Net income		1,777			597			1,280			706			1,790		198		(1	)		3,654			4,181		(13	)
Dividends and undistributed earnings allocated to participating securities⁽²⁾		(28	)		(9	)		(23	)		(10	)		(28	)	**		—			(60	)		(67	)	(10	)
Preferred stock dividends		(57	)		(57	)		(57	)		(57	)		(57	)	—		—			(171	)		(171	)	—
Net income available to common stockholders	$	1,692		$	531		$	1,200		$	639		$	1,705		**		(1	)	$	3,423		$	3,943		(13	)



																2024 Q3				Nine Months Ended September 30,
		2024			2024			2024			2023			2023		2024		2023								2024 vs.
	Q3			Q2			Q1			Q4			Q3			Q2		Q3			2024			2023		2023
Basic earnings per common share:⁽²⁾
Net income per basic common share	$	4.42		$	1.39		$	3.14		$	1.67		$	4.46		**		(1	)%	$	8.94		$	10.31		(13	)%
Diluted earnings per common share:⁽²⁾
Net income per diluted common share	$	4.41		$	1.38		$	3.13		$	1.67		$	4.45		**		(1	)%	$	8.92		$	10.28		(13	)%
Weighted-average common shares outstanding (in millions):
Basic common shares		383.0			383.1			382.2			381.9			382.5		—		—			382.8			382.7		—
Diluted common shares		383.7			383.9			383.4			382.8			383.3		—		—			383.7			383.6		—

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 4: Consolidated Balance Sheets

																2024 Q3
		2024			2024			2024			2023			2023		2024		2023
(Dollars in millions)	Q3			Q2			Q1			Q4			Q3			Q2		Q3
Assets:
Cash and cash equivalents:
Cash and due from banks	$	3,976		$	5,298		$	4,671		$	4,903		$	4,620		(25	)%	(14	)%
Interest-bearing deposits and other short-term investments		45,322			40,116			46,357			38,394			40,249		13		13
Total cash and cash equivalents		49,298			45,414			51,028			43,297			44,869		9		10
Restricted cash for securitization investors		421			2,415			474			458			435		(83	)	(3	)
Securities available for sale		83,500			79,250			78,398			79,117			74,837		5		12
Loans held for investment:
Unsecuritized loans held for investment		292,061			289,124			285,577			289,229			284,953		1		2
Loans held in consolidated trusts		28,182			29,062			29,577			31,243			29,827		(3	)	(6	)
Total loans held for investment		320,243			318,186			315,154			320,472			314,780		1		2
Allowance for credit losses		(16,534	)		(16,649	)		(15,380	)		(15,296	)		(14,955	)	(1	)	11
Net loans held for investment		303,709			301,537			299,774			305,176			299,825		1		1
Loans held for sale		96			808			1,631			854			742		(88	)	(87	)
Premises and equipment, net		4,440			4,396			4,366			4,375			4,378		1		1
Interest receivable		2,577			2,494			2,514			2,478			2,469		3		4
Goodwill		15,083			15,062			15,062			15,065			15,048		—		—
Other assets		27,309			28,642			28,473			27,644			28,832		(5	)	(5	)
Total assets	$	486,433		$	480,018		$	481,720		$	478,464		$	471,435		1		3

																2024 Q3
		2024			2024			2024			2023			2023		2024		2023
(Dollars in millions)	Q3			Q2			Q1			Q4			Q3			Q2		Q3
Liabilities:
Interest payable	$	705		$	668		$	762		$	649		$	685		6	%	3	%
Deposits:
Non-interest-bearing deposits		26,378			27,005			27,617			28,024			28,794		(2	)	(8	)
Interest-bearing deposits		327,253			324,437			323,352			320,389			317,217		1		3
Total deposits		353,631			351,442			350,969			348,413			346,011		1		2
Securitized debt obligations		15,881			17,291			17,661			18,043			17,417		(8	)	(9	)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase		520			715			568			538			522		(27	)	—
Senior and subordinated notes		32,911			29,925			32,108			31,248			31,283		10		5
Other borrowings		24			25			24			27			25		(4	)	(4	)
Total other debt		33,455			30,665			32,700			31,813			31,830		9		5
Other liabilities		19,836			21,971			21,827			21,457			21,824		(10	)	(9	)
Total liabilities		423,508			422,037			423,919			420,375			417,767		—		1

Stockholders’ equity:
Preferred stock		0			0			0			0			0		—		—
Common stock		7			7			7			7			7		—		—
Additional paid-in capital, net		36,216			36,012			35,808			35,541			35,334		1		2
Retained earnings		63,698			62,211			61,905			60,945			60,529		2		5
Accumulated other comprehensive loss		(6,287	)		(9,701	)		(9,534	)		(8,268	)		(12,224	)	(35	)	(49	)
Treasury stock, at cost		(30,709	)		(30,548	)		(30,385	)		(30,136	)		(29,978	)	1		2
Total stockholders’ equity		62,925			57,981			57,801			58,089			53,668		9		17
Total liabilities and stockholders’ equity	$	486,433		$	480,018		$	481,720		$	478,464		$	471,435		1		3

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

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

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 6: Average Balances, Net Interest Income and Net Interest Margin

	2024 Q3						2024 Q2						2023 Q3
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate⁽¹⁾		Average Balance		Interest Income/ Expense		Yield/Rate⁽¹⁾		Average Balance		Interest Income/ Expense		Yield/Rate⁽¹⁾
Interest-earning assets:
Loans, including loans held for sale	$	318,715	$	10,547	13.24	%	$	315,823	$	9,993	12.66	%	$	313,461	$	9,696	12.37	%
Investment securities		90,644		733	3.24			89,501		700	3.13			87,845		627	2.86
Cash equivalents and other		45,125		580	5.14			45,584		587	5.16			42,226		550	5.21
Total interest-earning assets	$	454,484	$	11,860	10.44		$	450,908	$	11,280	10.01		$	443,532	$	10,873	9.81
Interest-bearing liabilities:
Interest-bearing deposits	$	324,509	$	2,945	3.63		$	322,581	$	2,874	3.56		$	316,032	$	2,611	3.30
Securitized debt obligations		15,833		234	5.93			17,452		258	5.91			17,649		249	5.63
Senior and subordinated notes		32,041		596	7.43			30,978		591	7.64			31,522		579	7.36
Other borrowings and liabilities⁽²⁾		2,389		9	1.50			2,502		11	1.73			2,473		11	1.79
Total interest-bearing liabilities	$	374,772	$	3,784	4.04		$	373,513	$	3,734	4.00		$	367,676	$	3,450	3.75
Net interest income/spread			$	8,076	6.40				$	7,546	6.01				$	7,423	6.05
Impact of non-interest-bearing funding					0.71						0.69						0.64
Net interest margin⁽³⁾					7.11	%					6.70	%					6.69	%

	Nine Months Ended September 30,
	2024						2023
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate⁽¹⁾		Average Balance		Interest Income/ Expense		Yield/Rate⁽¹⁾
Interest-earning assets:
Loans, including loans held for sale	$	316,707	$	30,460	12.82	%	$	310,657	$	27,476	11.79	%
Investment securities		89,580		2,120	3.16			89,259		1,881	2.81
Cash equivalents and other		44,791		1,737	5.17			39,405		1,436	4.86
Total interest-earning assets	$	451,078	$	34,317	10.14		$	439,321	$	30,793	9.35
Interest-bearing liabilities:
Interest-bearing deposits	$	321,856	$	8,631	3.58		$	312,702	$	6,744	2.88
Securitized debt obligations		17,036		753	5.90			17,558		696	5.28
Senior and subordinated notes		31,744		1,793	7.53			30,611		1,596	6.95
Other borrowings and liabilities⁽²⁾		2,422		30	1.67			2,410		35	1.94
Total interest-bearing liabilities	$	373,058	$	11,207	4.01		$	363,281	$	9,071	3.33
Net interest income/spread			$	23,110	6.14				$	21,722	6.02
Impact of non-interest-bearing funding					0.69						0.57
Net interest margin					6.83	%					6.59	%

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 7: Loan Information and Performance Statistics

												2024 Q3				Nine Months Ended September 30,
(Dollars in millions, except as noted)	2024 Q3			2024 Q2		2024 Q1		2023 Q4		2023 Q3		2024 Q2		2023 Q3		2024		2023		2024 vs. 2023
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	149,400		$	147,065	$	143,861	$	147,666	$	140,320	2	%	6	%	$	149,400	$	140,320	6	%
International card businesses		7,251			6,830		6,733		6,881		6,463	6		12			7,251		6,463	12
Total credit card		156,651			153,895		150,594		154,547		146,783	2		7			156,651		146,783	7
Consumer banking:
Auto		75,505			74,385		73,801		74,075		75,456	2		—			75,505		75,456	—
Retail banking		1,253			1,278		1,298		1,362		1,388	(2	)	(10	)		1,253		1,388	(10	)
Total consumer banking		76,758			75,663		75,099		75,437		76,844	1		—			76,758		76,844	—
Commercial banking:
Commercial and multifamily real estate		32,199			32,832		34,272		34,446		35,622	(2	)	(10	)		32,199		35,622	(10	)
Commercial and industrial		54,635			55,796		55,189		56,042		55,531	(2	)	(2	)		54,635		55,531	(2	)
Total commercial banking		86,834			88,628		89,461		90,488		91,153	(2	)	(5	)		86,834		91,153	(5	)
Total loans held for investment	$	320,243		$	318,186	$	315,154	$	320,472	$	314,780	1		2		$	320,243	$	314,780	2
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	147,021		$	143,744	$	142,887	$	142,112	$	137,500	2	%	7	%	$	144,560	$	132,889	9	%
International card businesses		6,951			6,723		6,758		6,515		6,549	3		6			6,811		6,306	8
Total credit card		153,972			150,467		149,645		148,627		144,049	2		7			151,371		139,195	9
Consumer banking:
Auto		74,920	��		74,098		73,768		74,861		75,740	1		(1	)		74,264		76,473	(3	)
Retail banking		1,262			1,288		1,324		1,377		1,414	(2	)	(11	)		1,291		1,469	(12	)
Total consumer banking		76,182			75,386		75,092		76,238		77,154	1		(1	)		75,555		77,942	(3	)
Commercial banking:
Commercial and multifamily real estate		32,416			33,801		34,310		35,414		35,964	(4	)	(10	)		33,505		36,796	(9	)
Commercial and industrial		55,685			55,234		55,567		55,611		55,592	1		—			55,496		56,142	(1	)
Total commercial banking		88,101			89,035		89,877		91,025		91,556	(1	)	(4	)		89,001		92,938	(4	)
Total average loans held for investment	$	318,255		$	314,888	$	314,614	$	315,890	$	312,759	1		2		$	315,927	$	310,075	2

											2024 Q3		Nine Months Ended September 30,
	2024 Q3		2024 Q2		2024 Q1		2023 Q4		2023 Q3		2024 Q2	2023 Q3	2024		2023		2024 vs. 2023
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card⁽⁴⁾⁽⁵⁾	5.61	%	6.05	%	5.94	%	5.35	%	4.40	%	(44) bps	121 bps	5.86	%	4.28	%	158 bps
International card businesses	5.23		5.03		5.16		4.94		4.87		20	36	5.14		4.80		34
Total credit card	5.60

Woonsocket, RI (02895)

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Capital One Reports Third Quarter 2024 Net Income of $1.8 billion, or $4.41 per share