Capital One Reports First Quarter 2011 Net Income of $1.0 billion, or $2.21 Per Share

Net Income improved $380 million, or 60 percent, from Q1 2010 and $319 million, or 46 percent, from Q4 2010

Results driven by positive credit trends and strong revenues

Card loan volumes declined consistent with historical seasonal trends; purchase volumes and account originations remain strong

Growth emerging in Auto and Commercial

Continued strong deposit growth

Strong capital generation: TCE increased to 7.3 percent from 6.9 percent; Tier 1 common dipped to 8.4 percent from 8.8 percent with the final phase-in of FAS 166/167

News provided by

Capital One Financial Corporation

Apr 21, 2011, 07:00 ET

MCLEAN, Va., April 21, 2011 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2011 of $1.0 billion, or $2.21 per common share, compared with net income of $636 million, or $1.40 per common share, in the first quarter of 2010 and net income of $697 million, or $1.52 per common share, in the fourth quarter of 2010.

"We are gaining momentum across our businesses, and the period of shrinking loans through the Great Recession came to an end in the first quarter," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "Our solid first quarter results and our strong and resilient balance sheet put us in a good position to continue to generate capital and deliver strong and sustainable returns to our shareholders."

Total Company Results

Total revenue in the first quarter of 2011 of $4.1 billion increased $120 million, or 3.0 percent, from the fourth quarter of 2010, as a result of increasing margins and relatively stable average loans.
- Net interest income increased $117 million, or 3.9 percent, from the prior quarter.
- Net interest margin increased to 7.24 percent from 6.95 percent, driven by higher asset yields in the company’s Card and Auto businesses and a nine basis point decrease in the company’s cost of funds.
The cost of funds decreased to 1.41 percent in the first quarter from 1.50 percent in the prior quarter, driven by the mix shift toward lower-cost deposits.
Non-interest expense of $2.2 billion in the first quarter of 2011 increased $71 million, or 3.4 percent, from the prior quarter. One-time operating costs were partially offset by seasonally lower marketing expense.
Provision expense of $534 million in the first quarter decreased $305 million from the prior quarter, driven by a $249 million reduction in net charge-offs.
Net charge-offs as a percentage of average loans was 3.66 percent in the first quarter of 2011 compared with 4.45 percent in the prior quarter and 6.02 percent in first quarter of 2010.
Period-end loans held for investment declined $1.9 billion, or 1.5 percent, in the first quarter to $124.1 billion at March 31, 2011.
- Excluding the expected run-off in the company’s Installment Loan portfolio in Domestic Card, Home Loan portfolio in Consumer Banking and Small-Ticket Commercial Real Estate portfolio in Commercial Banking, total company loan balances declined approximately $824 million in the first quarter of 2011.
Average total deposits increased $2.4 billion, or 2.0 percent, during the quarter to $124.2 billion. Period-end total deposits increased by $3.2 billion, or 2.6 percent, to $125.4 billion.
The company’s Tier 1 common equity ratio of 8.4 percent dipped 40 basis points from 8.8 percent in the prior quarter. The first quarter of 2011 marked the final quarter of the regulatory phase-in of the implementation of FAS 166/167.
The tangible common equity (TCE) ratio increased to 7.3 percent in the first quarter from 6.9 percent in the fourth quarter of 2010.

“We expect that our strong capital and capital generation will enable us to deploy substantial capital for the benefit of our shareholders," said Gary L. Perlin, Capital One’s Chief Financial Officer.

Segment Results

The company reports the results of its business through three operating segments: Credit Card, Commercial Banking and Consumer Banking. Please refer to the Financial Supplement for additional details.

Credit Card Highlights

For more lending information and statistics on the segment results, please refer to the Financial Supplement.

Period-end loans in the Domestic Card segment were $50.6 billion in the first quarter, a decline of 6.1 percent from the prior quarter, as a result of the expected run-off of the Installment Loan portfolio and seasonal declines. Average loan balances in the quarter declined by 2.4 percent.
Excluding the run-off of the Installment Loans, loans declined $2.7 billion, or 5.3 percent, in Domestic Card compared to the fourth quarter of 2010.
First quarter Domestic Card purchase volumes grew $3.0 billion, or 13.8 percent, from the first quarter of 2010 but declined by $2.0 billion, or 7.3 percent, compared to the fourth quarter of 2010 due to seasonal patterns.
Domestic Card revenue margin increased 56 basis points to 17.22 percent in the first quarter from 16.66 percent in the prior quarter driven by continued favorable credit impacts and mix shifts within the portfolio.
Domestic Card provision expense decreased $275 million in the first quarter from the prior quarter. Strong underlying credit improvement trends, lower bankruptcy losses and higher recoveries more than offset expected seasonal headwinds.
International Card results were driven primarily by the acquisition of the Hudson’s Bay Company (HBC) private label credit card portfolio in the quarter.
- Credit card loans increased by $1.2 billion, or 16.1 percent, to $8.7 billion
- Inclusion of HBC drove non-interest expense higher by approximately $30 million for the quarter
- Higher provision was due primarily to a one-time allowance build for the HBC portfolio of $105 million

Net charge-off rates relative to the prior quarter:
- Domestic Card – improved 108 basis points to 6.20 percent from 7.28 percent
- International Card – improved 94 basis points to 5.74 percent from 6.68 percent

Delinquency rates relative to the prior quarter:
- Domestic Card – improved 50 basis points to 3.59 percent from 4.09 percent
- International Card – improved 20 basis points to 5.55 percent from 5.75 percent

Commercial Banking Highlights

For more lending information and statistics on the segment results, please refer to the Financial Supplement.

The Commercial Banking segment consists of commercial and multi-family real-estate, middle market lending and specialty lending.

Revenues of $392 million and period-end loans of $30.0 billion grew modestly compared to the fourth quarter.
Provision expense decreased $49 million from the fourth quarter to a negative provision of $15 million as a result of an allowance release and improving net charge-offs in the quarter.
Period-end deposits grew $1.6 billion, or 7.1 percent, from the fourth quarter to $24.2 billion. The deposit interest expense rate improved 6 basis points to 55 basis points.
Net charge-off rate relative to the prior quarter:
- Total Commercial Banking – improved 64 basis points to 0.79 percent from 1.43 percent
- Commercial lending – improved 62 basis points to 0.38 percent from 1.0 percent

Nonperforming asset rate relative to the prior quarter:
- Total Commercial Banking – 1.95 percent, an increase of 15 basis points
- Commercial lending – 1.86 percent, an increase of 10 basis points

Consumer Banking Highlights

For more lending information and statistics on the segment results, please refer to the Financial Supplement.

Revenues increased $23 million in the first quarter to $1.2 billion, driven by higher margins in the Auto Finance business. Non-interest expense decreased $30 million during the quarter, due primarily to reduced marketing expenditures.

Provision expense decreased $94 million, or nearly 50 percent, from the prior quarter as a result of better credit performance in Auto Finance, Home Loans and Retail Banking.

Net charge-off rates relative to the prior quarter:
- Auto – 1.98 percent, a decline of 67 basis points
- Home Loans – 0.71 percent, a decline of 18 basis points
- Retail Banking – 2.24 percent, a decline of 16 basis points

Period-end loans were relatively stable in the first quarter with an increase in auto loans offset by continued run-off in home loans. Period-end loans relative to the prior quarter:
- Auto – growth of $475 million, or 2.7 percent, to $18.3 billion
- Home Loans – a decline of $362 million, or 3.0 percent, to $11.7 billion, due to continued run-off of the portfolio
- Retail Banking – a decline of $190 million, or 4.3 percent, to $4.2 billion

Deposits in Consumer Banking showed strong growth in the quarter, with period-end deposits increasing $3.4 billion, or 4.1 percent from the fourth quarter, to $86.4 billion.

Tier 1 common equity ratio and related ratios, as used throughout this release, are non-GAAP financial measures. For additional information, see Table 12 in the Financial Supplement.

Forward looking statements

The company cautions that its current expectations in this release dated April 21, 2011, and the company's plans, objectives, expectations, and intentions, are forward-looking statements which speak only as of the date hereof. The company does not undertake any obligation to update or revise any of the information contained herein whether as a result of new information, future events or otherwise. Actual results could differ materially from current expectations due to a number of factors, including: general economic conditions in the U.S., the UK, Canada or the company's local markets, including conditions affecting consumer income, confidence, spending, and savings which may affect consumer bankruptcies, defaults, charge-offs, deposit activity, and interest rates; financial, legal, regulatory, tax or accounting changes or actions, including the impact of the Dodd-Frank Act and the regulations promulgated thereunder; developments, changes or actions relating to any litigation matter involving the company; increases or decreases in interest rates; the success of the company's marketing efforts in attracting or retaining customers; changes in the credit environment; increases or decreases in the company's aggregate loan balances or the number of customers and the growth rate and composition thereof; the level of future repurchase or indemnification requests the company may receive, the actual future performance of mortgage loans relating to such requests, the success rates of claimants against the company, any developments in litigation and the actual recoveries the company may make on any collateral relating to claims against it; changes in the reputation of or expectations regarding the financial services industry or the company with respect to practices, products, or financial condition; any significant disruption in the company’s operations or technology platform; the company's ability to execute on its strategic and operational plans; changes in the labor and employment market; and competition from providers of products and services that compete with the company's businesses. A discussion of these and other factors can be found in the company's annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, the company's report on Form 10-K for the fiscal year ended December 31, 2010.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A. and Capital One Bank (USA), N. A., had $125.4 billion in deposits and $199.3 billion in total assets outstanding as of March 31, 2011. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, 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.

NOTE:

First quarter 2011 financial results, SEC Filings, and earnings conference call slides are accessible on Capital One’s home page (www.capitalone.com). Choose “Investors” on the bottom of the home page to view and download the earnings press release, slides and other financial information. Additionally, a podcast and webcast of the earnings conference call is accessible through the same link.

			Exhibit 99.2
Capital One Financial Corporation
Financial Supplement
First Quarter 2011
Table of Contents

			Page
Capital One Financial Consolidated
	Table 1:	Financial & Statistical Summary--Consolidated	1
	Table 2:	Notes to Consolidated Financial & Statistical Summary (Table 1)	2
	Table 3:	Consolidated Statements of Income	3
	Table 4:	Consolidated Balance Sheets	4
	Table 5:	Average Balances, Net Interest Income and Net Interest Margin	5
	Table 6:	Loan Information and Performance Statistics	6
Business Segment Detail
	Table 7:	Financial & Statistical Summary--Credit Card Business	7
	Table 8:	Financial & Statistical Summary--Consumer Banking Business	8
	Table 9:	Financial & Statistical Summary--Commercial Banking Business	9
	Table 10:	Financial & Statistical Summary--Other and Total	10
	Table 11:	Notes to Loan and Business Segment Disclosures (Tables 6 — 10)	11
Other
	Table 12:	Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures	12

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

	2011		2010		2010
(Dollars in millions, except per share data and as noted) (unaudited)	Q1		Q4		Q1
Earnings
Net interest income	$ 3,140		$ 3,023		$ 3,228
Non-interest income (1)(2)	942		939		1,061	(3)
Total revenue (4)	$ 4,082		$ 3,962		$ 4,289
Provision for loan and lease losses	534		839		1,478
Marketing expenses	276		308		180
Operating expenses (5)	1,886		1,783		1,667
Income from continuing operations before income taxes	$ 1,386		$ 1,032		$ 964
Income tax provision	354		331		244
Income from continuing operations, net of tax	1,032		701		720
Loss from discontinued operations, net of tax(2)	(16)		(4)		(84)
Net income	$ 1,016		$ 697		$ 636

Common Share Statistics
Basic EPS:
Income from continuing operations, net of tax	$ 2.27		$ 1.55		$ 1.59
Loss from discontinued operations, net of tax	(0.03)		(0.01)		(0.18)
Net income per common share	$ 2.24		$ 1.54		$ 1.41
Diluted EPS:
Income from continuing operations, net of tax	$ 2.24		$ 1.53		$ 1.58
Loss from discontinued operations, net of tax	(0.03)		(0.01)		(0.18)
Net income per common share	$ 2.21		$ 1.52		$ 1.40
Weighted average common shares outstanding:
Basic EPS	454.1		452.7		451.0
Diluted EPS	460.3		457.2		455.4
Common shares outstanding (period end)	455.2		452.8		451.9
Dividends per common share	$ 0.05		$ 0.05		$ 0.05
Tangible book value per common share (period end)(6)	29.70		27.73		22.86
Stock price per common share (period end)	51.96		42.56		41.41
Total market capitalization (period end)	23,652		19,271		18,713

Balance Sheet (Period End)
Loans held for investment	$ 124,092		$ 125,947		$ 130,115
Interest-earning assets	172,849		172,024		174,237
Total assets	199,300		197,503		200,708
Tangible assets (7)	184,928		183,158		186,647
Interest-bearing deposits	109,097		107,162		104,013
Total deposits	125,446		122,210		117,787
Borrowings	39,797		41,796		52,672
Stockholders' equity	27,550		26,541		24,374
Tangible common equity (TCE) (8)	13,520		12,558		10,330

Balance Sheet (Quarterly Average Balances)
Average loans held for investment	$ 125,077		$ 125,441		$ 134,206
Average interest-earning assets	173,540		173,992		181,902
Average total assets	198,075		197,704		207,232
Average interest-bearing deposits	108,633		106,597		104,018
Average total deposits	124,158		121,736		117,530
Average borrowings	40,538		42,428		59,973
Average stockholders' equity	27,009		26,255		23,681

Performance Metrics
Net interest income growth (quarter over quarter)	4	%	(3)	%	65	%
Non-interest income growth(quarter over quarter)	0		4		(25)
Revenue growth(quarter over quarter)	3		(1)		27
Revenue margin (9)	9.41		9.11		9.43
Net interest margin (10)	7.24		6.95		7.10
Risk-adjusted margin (11)	6.77		5.90		4.99
Return on average assets (12)	2.08		1.42		1.39
Return on average equity (13)	15.28		10.68		12.16
Return on average tangible common equity(14)	31.73		22.90		29.98
Non-interest expense as a % of average loans held for investment (15)	6.91		6.67		5.50
Efficiency ratio (16)	52.96		52.78		43.06
Effective income tax rate	25.5		32.1		25.3
Full-time equivalent employees (in thousands)	27.9		25.7		25.9

Credit Quality Metrics (17)
Allowance for loan and lease losses	$ 5,067		$ 5,628		$ 7,752
Allowance as a % of loans held for investment	4.08	%	4.47	%	5.96	%
Net charge-offs	$ 1,145		$ 1,394		$ 2,018
Net charge-off rate (18)	3.66	%	4.45	%	6.02	%
30+ day performing delinquency rate	3.11		3.60		4.22

Capital Ratios
Tier 1 risk-based capital ratio (19)	10.9	%	11.6	%	9.6	%
Tier 1 common equity ratio (20)	8.4		8.8		6.5
Total risk-based capital ratio (21)	14.2		16.8		16.9
Tangible common equity (TCE) ratio(22)	7.3		6.9		5.5

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Notes to Consolidated Financial & Statistical Summary (Table 1)

(1)	Includes the impact from the change in fair value of retained interests, including interest-only strips, which totaled $7 million in Q1 2011, $8 million in Q4 2010, and $(36) million in Q1 2010.

(2)	The mortgage representation and warranty reserve increased to $846 million as of March 31, 2011, from $816 million as of December 31, 2010. We recorded a provision for repurchase losses of $44 million in Q1 2011, $(7) million in Q4 2010, and $224 million in Q1 2010. The majority of the provision for repurchase losses is included in discontinued operations, with the remaining portion included in non-interest income.

(3)	During Q1 2010, certain mortgage trusts were deconsolidated as a result of the sale of interest-only bonds associated with the trusts. The net effect of the deconsolidation resulted in a gain of $128 million, which is included in non-interest income.

(4)	The estimated uncollectible portion of billed finance charges and fees excluded from revenue totaled $105 million in Q1 2011, $144 million in Q4 2010, and $354 million in Q1 2010.

(5)	Includes core deposit intangible amortization expense of $45 million in Q1 2011, $47 million in Q4 2010, and $52 million in Q1 2010 and integration costs of $2 million in Q1 2011, $15 million in Q4 2010, and $17 million in Q1 2010.

(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 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this measure.

(7)	Tangible assets is a non-GAAP measure consisting of total assets less assets from discontinued operations and intangible assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this measure.

(8)	Tangible common equity is a non-GAAP measure consisting of total stockholders' equity less intangible assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this measure.

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

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

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

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

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

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

(15)	Calculated based on annualized non-interest expense, excluding restructuring and goodwill impairment charges, for the period divided by average loans held for investment for the period.

(16)	Calculated based on non-interest expense, excluding restructuring and goodwill impairment charges, for the period divided by total revenue for the period.

(17)	Purchased credit impaired (PCI) loans acquired as part of the Chevy Chase Bank (CCB) acquisition are included in the denominator used in calculating the credit quality metrics presented in Table 1. These metrics excluding the impact of loans acquired from CCB from the denominator are presented below:

			2011	2010	2010
		(Dollars in millions) (unaudited)	Q1	Q4	Q1
		CCB period-end acquired loan portfolio	$ 5,351	$ 5,532	$ 6,799
		CCB average acquired loan portfolio	5,305	5,633	7,037
		Allowance as a % of loans held for investment, excluding CCB loans	4.27%	4.67%	6.29%
		Net charge-off rate, excluding CCB loans	3.82	4.65	6.35
		30+ day performing delinquency rate (Reported), excluding CCB	3.25	3.76	4.46

(18)	Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period. Average loans held for investment include purchased credit impaired loans acquired as part of the Chevy Chase Bank acquisition.

(19)	Tier 1 risk-based capital ratio is a regulatory measure calculated based on Tier 1 capital divided by risk-weighted assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio.

(20)	Tier 1 common equity ratio is a non-GAAP measure calculated based on Tier 1 common equity divided by risk-weighted assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio and non-GAAP reconciliation.

(21)	Total risk-based capital ratio is regulatory capital measure calculated based on total risk-based capital divided by risk-weighted assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio.

(22)	Tangible common equity ratio ("TCE ratio") is a non-GAAP measure calculated based on tangible common equity divided by tangible assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio and non-GAAP reconciliation.

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


		Three Months Ended
		March 31,	December 31,	March 31,
(Dollars in millions, except per share data) (unaudited)		2011	2010	2010

Interest income:
Loans held for investment, including past-due fees		$ 3,417	$ 3,352	$ 3,658
Investment securities		316	305	349
Other		19	17	23
	Total interest income	3,752	3,674	4,030

Interest expense:
Deposits		322	340	399
Securitized debt obligations		146	165	242
Senior and subordinated notes		64	65	68
Other borrowings		80	81	93
	Total interest expense	612	651	802

Net interest income		3,140	3,023	3,228
Provision for loan and lease losses		534	839	1,478
Net interest income after provision for loan and lease losses		2,606	2,184	1,750

Non-interest income:
Servicing and securitizations		11	12	(36)
Service charges and other customer-related fees		525	496	585
Interchange		320	350	311
Net other-than-temporary impairment losses recognized in earnings		(3)	(3)	(31)
Other		89	84	232
	Total non-interest income	942	939	1,061

Non-interest expense:
Salaries and associate benefits		741	657	646
Marketing		276	308	180
Communications and data processing		164	182	169
Supplies and equipment		135	139	124
Occupancy		119	114	120
Other		727	691	608
	Total non-interest expense	2,162	2,091	1,847
Income from continuing operations before income taxes		1,386	1,032	964
Income tax provision		354	331	244
Income from continuing operations, net of tax		1,032	701	720
Loss from discontinued operations, net of tax		(16)	(4)	(84)
Net income		$ 1,016	$ 697	$ 636

Basic earnings per common share:
Income from continuing operations, net of tax		$ 2.27	$ 1.55	$ 1.59
Loss from discontinued operations, net of tax		(0.03)	(0.01)	(0.18)
Net income per common share		$ 2.24	$ 1.54	$ 1.41

Diluted earnings per common share:
Income from continuing operations		$ 2.24	$ 1.53	$ 1.58
Loss from discontinued operations		(0.03)	(0.01)	(0.18)
Net income per common share		$ 2.21	$ 1.52	$ 1.40

Weighted average common shares outstanding (in millions):
Basic EPS		454.1	452.7	451.0
Diluted EPS		460.3	457.2	455.4

Dividends per common share		$ 0.05	$ 0.05	$ 0.05

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


		March 31,	December 31,	March 31,
(Dollars in millions)(unaudited)		2011	2010	2010

Assets:
Cash and due from banks		$ 2,028	$ 2,067	$ 2,929
Interest-bearing deposits with banks		5,397	2,776	4,092
Federal funds sold and repurchase agreements		546	406	477
	Cash and cash equivalents	7,971	5,249	7,498
Restricted cash for securitization investors		2,556	1,602	3,286
Securities available for sale, at fair value		41,566	41,537	38,251
Loans held for investment:
	Unsecuritized loans held for investment, at amortized cost	75,184	71,921	72,592
	Restricted loans for securitization investors	48,908	54,026	57,523
	Total loans held for investment	124,092	125,947	130,115
	Less: Allowance for loan and lease losses	(5,067)	(5,628)	(7,752)
	Net loans held for investment	119,025	120,319	122,363
Loans held for sale, at lower-of-cost-or-fair-value		117	228	248
Accounts receivable from securitizations		112	118	206
Premises and equipment, net		2,739	2,749	2,735
Interest receivable		1,025	1,070	1,135
Goodwill		13,597	13,591	13,589
Other		10,592	11,040	11,397
	Total assets	$ 199,300	$ 197,503	$ 200,708


Liabilities:
Interest payable		$ 411	$ 488	$ 522
Customer deposits:
	Non-interest bearing deposits	16,349	15,048	13,773
	Interest-bearing deposits	109,097	107,162	104,013
	Total customer deposits	125,446	122,210	117,786
Securitized debt obligations		24,506	26,915	37,830
Other debt:
	Federal funds purchased and securities loaned or sold under agreements to repurchase	1,970	1,517	840
	Senior and subordinated notes	8,545	8,650	9,134
	Other borrowings	4,776	4,714	4,868
	Total other debt	15,291	14,881	14,842
Other liabilities		6,096	6,468	5,353
	Total liabilities	171,750	170,962	176,333

Stockholders' equity:
Common stock		5	5	5
Paid-in capital, net		19,141	19,084	18,991
Retained earnings and accumulated other comprehensive income		11,644	10,654	8,577
	Less: Treasury stock, at cost	(3,240)	(3,202)	(3,198)
	Total stockholders' equity	27,550	26,541	24,375
	Total liabilities and stockholders' equity	$ 199,300	$ 197,503	$ 200,708

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 5: Average Balances, Net Interest Income and Net Interest Margin


			Quarter Ended 03/31/11			Quarter Ended 12/31/10			Quarter Ended 03/31/10
(Dollars in millions)(unaudited)			Average Balance	Interest Income/ Expense	Yield/ Rate	Average Balance	Interest Income/ Expense	Yield/ Rate	Average Balance	Interest Income/ Expense	Yield/ Rate
Interest-earning assets:
	Loans held for investment		$ 125,077	$ 3,417	10.93%	$ 125,441	$ 3,352	10.69%	$ 134,206	$ 3,658	10.90%
	Investment securities		41,532	316	3.04	41,004	305	2.98	38,087	349	3.67
	Other		6,931	19	1.10	7,547	17	0.90	9,609	23	0.96
Total interest-earning assets			$ 173,540	$ 3,752	8.65%	$ 173,992	$ 3,674	8.45%	$ 181,902	$ 4,030	8.86%

Interest-bearing liabilities:
	Interest-bearing deposits
		NOW accounts	$ 13,648	$ 9	0.26%	$ 12,918	$ 8	0.25%	$ 12,276	$ 16	0.52%
		Money market deposit accounts	45,613	110	0.96	43,822	110	1.00	39,364	96	0.98
		Savings accounts	26,801	55	0.82	25,121	54	0.86	18,627	42	0.90
		Other consumer time deposits	15,344	99	2.58	16,941	112	2.64	24,253	174	2.87
		Public fund CD's of $100,000 or more	149	1	2.68	204	1	1.96	400	2	2.00
		CD's of $100,000 or more	6,097	47	3.08	6,696	54	3.23	8,180	68	3.33
		Foreign time deposits	981	1	0.41	895	1	0.45	918	1	0.44
	Total interest-bearing deposits		$ 108,633	$ 322	1.19%	$ 106,597	$ 340	1.28%	$ 104,018	$ 399	1.53%
	Securitized debt obligations		25,515	146	2.29	27,708	165	2.38	45,581	242	2.12
	Senior and subordinated notes		8,090	64	3.16	8,096	65	3.21	8,757	68	3.11
	Other borrowings		6,933	80	4.62	6,624	81	4.89	5,634	93	6.60
Total interest-bearing liabilities			$ 149,171	$ 612	1.64%	$ 149,025	$ 651	1.75%	$ 163,990	$ 802	1.96%

Net interest income/spread				$ 3,140	7.01%		$ 3,023	6.70%		$ 3,228	6.90%

Interest income to average interest-earning assets					8.65%			8.45%			8.86%
Interest expense to average interest-earning assets					1.41			1.50			1.76
Net interest margin					7.24%			6.95%			7.10%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 6: Lending Information and Statistics

	2011	2010	2010
(Dollars in millions)(unaudited)	Q1	Q4	Q1
Period-end loans held for investment
Credit card:
Domestic credit card	$ 50,570	$ 53,849	$ 56,228
International credit card	8,735	7,522	7,578
Total credit card	59,305	61,371	63,806

Consumer banking:
Automobile	18,342	17,867	17,446
Home loan	11,741	12,103	13,967
Retail banking	4,223	4,413	4,970
Total consumer banking	34,306	34,383	36,383

Commercial banking:
Commercial and multifamily real estate	13,543	13,396	13,618
Middle market	10,758	10,484	10,310
Specialty lending	3,936	4,020	3,619
Total commercial lending	28,237	27,900	27,547
Small-ticket commercial real estate	1,780	1,842	2,065
Total commercial banking	30,017	29,742	29,612

Other loans(1)	464	451	464
Total	$ 124,092	$ 125,947	$ 130,265

Average loans held for investment
Credit card:
Domestic credit card	$ 51,889	$ 53,189	$ 58,108
International credit card	8,697	7,419	7,814
Total credit card	60,586	60,608	65,922

Consumer banking:
Automobile	18,025	17,763	17,769
Home loan	11,960	12,522	15,434
Retail banking	4,251	4,466	5,042
Total consumer banking	34,236	34,751	38,245

Commercial banking:
Commercial and multifamily real estate	13,345	13,323	13,716
Middle market	10,666	10,460	10,324
Specialty lending	3,964	3,947	3,609
Total commercial lending	27,975	27,730	27,649
Small-ticket commercial real estate	1,818	1,887	2,074
Total commercial banking	29,793	29,617	29,723

Other loans (1)	462	465	489
Total	$ 125,077	$ 125,441	$ 134,379

Net charge-off rates
Credit card:
Domestic credit card	6.20%	7.28%	10.48%
International credit card	5.74	6.68	8.83
Total credit card	6.13%	7.21%	10.29%

Consumer banking:
Automobile	1.98%	2.65%	2.97%
Home loan(2)	0.71	0.89	0.94
Retail banking(2)	2.24	2.40	2.11
Total consumer banking(2)	1.57%	1.98%	2.03%

Commercial banking:
Commercial and multifamily real estate(2)	0.56%	1.15%	1.45%
Middle market (2)	0.18	0.94	0.82
Specialty lending	0.30	0.63	0.90
Total commercial lending(2)	0.38%	1.00%	1.14%
Small-ticket commercial real estate	7.14	7.72	4.43
Total commercial banking(2)	0.79%	1.43%	1.37%

Other loans	19.91%	21.11%	18.82%
Total	3.66%	4.45%	6.01%

30+ day performing delinquency rates
Credit card:
Domestic credit card	3.59%	4.09%	5.30%
International credit card	5.55	5.75	6.39
Total credit card	3.88%	4.29%	5.43%

Consumer banking:
Automobile	5.79%	7.58%	7.10%
Home loan(2)	0.61	0.64	0.93
Retail banking(2)	0.93	0.93	1.02
Total consumer banking(2)	3.42%	4.28%	3.90%

Nonperforming asset rates(3) (4)
Consumer banking:
Automobile	0.39%	0.64%	0.55%
Home loan(2)	4.34	4.25	3.17
Retail banking(2)	2.44	2.66	2.07
Total consumer banking(2)	2.00%	2.17%	1.76%

Commercial banking:
Commercial and multifamily real estate(2)	2.63%	2.23%	3.65%
Middle market (2)	1.14	1.33	1.15
Specialty lending	1.19	1.30	2.18
Total commercial lending(2)	1.86%	1.76%	2.52%
Small-ticket commercial real estate	3.39	2.38	4.18
Total commercial banking(2)	1.95%	1.80%	2.64%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Financial & Statistical Summary - Credit Card Business

	2011	2010	2010
(Dollars in millions) (unaudited)	Q1	Q4	Q1
Credit Card
Earnings:
Net interest income	$ 1,941	$ 1,870	$ 2,113
Non-interest income	674	672	718
Total revenue	$ 2,615	$ 2,542	$ 2,831
Provision for loan and lease losses	450	589	1,175
Non-interest expense	1,178	1,056	914
Income from continuing operations before taxes	987	897	742
Income tax provision	344	311	253
Income from continuing operations, net of tax	$ 643	$ 586	$ 489

Selected metrics:
Period end loans held for investment	$ 59,305	$ 61,371	$ 63,806
Average loans held for investment	60,586	60,608	65,922
Loans held for investment yield	14.93%	13.97%	14.88%
Revenue margin	17.26	16.78	17.18
Net charge-off rate	6.13	7.21	10.29
30+ day performing delinquency rate	3.88	4.29	5.43
Purchase volume (5)	$ 27,797	$ 29,379	$ 23,924

Domestic Card
Earnings:
Net interest income	$ 1,651	$ 1,621	$ 1,865
Non-interest income	583	594	618
Total revenue	$ 2,234	$ 2,215	$ 2,483
Provision for loan and lease losses	230	505	1,096
Non-interest expense	990	935	809
Income from continuing operations before taxes	1,014	775	578
Income tax provision	360	276	206
Income from continuing operations, net of tax	$ 654	$ 499	$ 372

Selected metrics:
Period end loans held for investment	$ 50,570	$ 53,849	$ 56,228
Average loans held for investment	51,889	53,189	58,108
Loans held for investment yield	14.65%	13.57%	14.78%
Revenue margin	17.22	16.66	17.09
Net charge-off rate	6.20	7.28	10.48
30+ day performing delinquency rate	3.59	4.09	5.30
Purchase volume (5)	$ 25,024	$ 26,985	$ 21,988

International Card
Earnings:
Net interest income	$ 290	$ 249	$ 248
Non-interest income	91	78	100
Total revenue	$ 381	$ 327	$ 348
Provision for loan and lease losses	220	84	79
Non-interest expense	188	121	105
Income (loss) from continuing operations before taxes	(27)	122	164
Income tax provision (benefit)	(16)	35	47
Income (loss) from continuing operations, net of tax	$ (11)	$ 87	$ 117

Selected metrics:
Period end loans held for investment	$ 8,735	$ 7,522	$ 7,578
Average loans held for investment	8,697	7,419	7,814
Loans held for investment yield	16.65%	16.82%	15.66%
Revenue margin	17.52	17.63	17.81
Net charge-off rate	5.74	6.68	8.83
30+ day performing delinquency rate	5.55	5.75	6.39
Purchase volume (5)	$ 2,773	$ 2,394	$ 1,936

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Financial & Statistical Summary - Consumer Banking Business

		2011	2010	2010
(Dollars in millions) (unaudited)		Q1	Q4	Q1
Consumer Banking
Earnings:
	Net interest income	$ 983	$ 950	$ 896
	Non-interest income	186	196	316
	Total revenue	$ 1,169	$ 1,146	$ 1,212
	Provision for loan and lease losses	95	189	50
	Non-interest expense	740	770	688
	Income from continuing operations before taxes	334	187	474
	Income tax provision	119	67	169
	Income from continuing operations, net of tax	$ 215	$ 120	$ 305

Selected metrics:
	Period end loans held for investment	$ 34,306	$ 34,383	$ 36,383
	Average loans held for investment	34,236	34,751	38,245
	Loans held for investment yield	9.60%	9.20%	8.96%
	Auto loan originations	$ 2,571	$ 2,217	$ 1,343
	Period end deposits	86,355	82,959	76,883
	Average deposits	83,884	81,834	75,115
	Deposit interest expense rate	1.06%	1.13%	1.27%
	Core deposit intangible amortization	$ 35	$ 34	$ 38
	Net charge-off rate (2)	1.57%	1.98%	2.03%
	Nonperforming loans as a percentage of loans held for investment (2)(3)	1.84	1.97	1.62
	Nonperforming asset rate (2) (3)	2.00	2.17	1.76
	30+ day performing delinquency rate (2) (3)	3.42	4.28	3.90
	Period end loans serviced for others	$ 19,956	$ 20,689	$ 26,778

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial & Statistical Summary - Commercial Banking Business

		2011	2010	2010
(Dollars in millions) (unaudited)		Q1	Q4	Q1
Commercial Banking
Earnings:
	Net interest income	$ 321	$ 336	$ 312
	Non-interest income	71	49	42
	Total revenue	$ 392	$ 385	$ 354
	Provision for loan and lease losses	(15)	34	238
	Non-interest expense	177	207	192
	Income (loss) from continuing operations before taxes	230	144	(76)
	Income tax provision (benefit)	82	51	(27)
	Income (loss) from continuing operations, net of tax	$ 148	$ 93	$ (49)

Selected metrics:
	Period end loans held for investment	$ 30,017	$ 29,742	$ 29,612
	Average loans held for investment	29,793	29,617	29,723
	Loans held for investment yield	4.80%	5.13%	5.03%
	Period end deposits	$ 24,244	$ 22,630	$ 21,605
	Average deposits	24,138	22,808	21,859
	Deposit interest expense rate	0.55%	0.61%	0.72%
	Core deposit intangible amortization	$ 11	$ 13	$ 14
	Net charge-off rate (2)	0.79%	1.43%	1.37%
	Nonperforming loans as a percentage of loans held for investment (2)	1.84	1.66	2.48
	Nonperforming asset rate (2)	1.95	1.80	2.64

Internal risk ratings criticized loans: (6)
	Noncriticized	$ 26,983	$ 26,663	$ 25,519
	Criticized performing	1,919	2,025	2,483
	Criticized nonperforming	553	494	735
	Total non-PCI loans	29,455	29,182	28,737
	Total PCI loans	562	560	875
	Total	$ 30,017	$ 29,742	$ 29,612

	% of period end held for investment commercial loans:
	Noncriticized	89.89%	89.65%	86.18%
	Criticized performing	6.39	6.81	8.39
	Criticized nonperforming	1.84	1.66	2.48
	Total non-PCI loans	98.13%	98.12%	97.05%
	Total PCI loans	1.87	1.88	2.95
	Total	100.00%	100.00%	100.00%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary - Other and Total Segment

		2011	2010	2010
(Dollars in millions) (unaudited)		Q1	Q4	Q1
Other
Earnings:
	Net interest income (expense)	$ (105)	$ (133)	$ (91)
	Non-interest income (expense)	11	22	(14)
	Total revenue	$ (94)	$ (111)	$ (105)
	Provision for loan and lease losses	4	27	18
	Non-interest expense	67	58	53
	Income (loss) from continuing operations before taxes	(165)	(196)	(176)
	Income tax benefit	(191)	(98)	(151)
	Income (loss) from continuing operations, net of tax	$ 26	$ (98)	$ (25)

Selected metrics:
	Period end loans held for investment (1)	$ 464	$ 451	$ 464
	Average loans held for investment (1)	462	465	489
	Period end deposits	14,847	16,621	19,299
	Average deposits	16,136	17,094	20,556

Total
Earnings:
	Net interest income	$ 3,140	$ 3,023	$ 3,230
	Non-interest income	942	939	1,062
	Total revenue	$ 4,082	$ 3,962	$ 4,292
	Provision for loan and lease losses	534	839	1,481
	Non-interest expense	2,162	2,091	1,847
	Income from continuing operations before taxes	1,386	1,032	964
	Income tax provision	354	331	244
	Income from continuing operations, net of tax	$ 1,032	$ 701	$ 720

Selected metrics:
	Period end loans held for investment	$ 124,092	$ 125,947	$ 130,265
	Average loans held for investment	125,077	125,441	134,379
	Period end deposits	125,446	122,210	117,787
	Average deposits	124,158	121,736	117,530

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Notes to Loan and Segment Disclosures (Tables 6 — 10)



(1)	Other loans held for investment includes unamortized premiums and discounts on loans acquired as part of the North Fork and Hibernia acquisitions.

(2)	Purchased credit impaired loans acquired as part of the Chevy Chase Bank (CCB) acquisition are included in the denominator used in calculating the credit quality ratios presented in Tables 6-10. These metrics excluding the impact of loans acquired from CCB from the denominator are presented below:


		2011	2010	2010
	(Dollars in millions) (unaudited)	Q1	Q4	Q1
	CCB period end acquired loan portfolio	$ 5,351	$ 5,532	$ 6,799
	CCB average acquired loan portfolio	5,305	5,633	7,037

	Net charge-off rates
	Consumer banking:
	Home loan	1.16%	1.46%	1.02%
	Retail banking	2.32	2.49	2.22
	Total consumer banking	1.82%	2.32%	2.28%

	Commercial banking:
	Commercial and multifamily real estate	0.57%	1.17%	1.48%
	Middle market	0.18	0.97	0.87
	Total commercial lending	0.38%	1.02%	1.48%
	Total commercial banking	0.80%	1.45%	1.41%

	30+ day performing delinquency rates
	Consumer banking:
	Home loan	1.02%	1.06%	1.58%
	Retail banking	0.93	0.97	1.07
	Total consumer banking	3.98%	5.01%	4.67%

	Nonperforming asset rates
	Consumer banking:
	Home loan	7.24%	7.05%	5.36%
	Retail banking	2.44	2.77	2.17
	Total consumer banking	2.32%	2.54%	2.11%

	Commercial banking:
	Commercial and multifamily real estate	2.68%	2.28%	3.71%
	Middle market	1.17	1.36	1.23
	Total commercial lending	1.90%	1.79%	2.60%
	Total commercial banking	1.99%	1.83%	2.72%

	Nonperforming loans as a percentage of loans held for investment
	Consumer banking	2.14%	2.30%	1.93%
	Commercial banking	1.88	1.69	2.55

(3)	Nonperforming assets consist of nonperforming loans and real estate owned ("REO") and foreclosed assets. The nonperforming asset ratios are calculated based on nonperforming assets for each segment divided by the combined total of loans held for investment, REO and foreclosed assets for each respective segment.

(4)	As permitted by regulatory guidance, our policy is generally to exempt delinquent credit card loans from being classified as nonperforming. We continue to accrue finance charges and fees on credit card loans until the loan is charged off, typically when the account becomes 180 days past due. Billed finance charges and fees considered uncollectible are not recognized in income.

(5)	Includes credit card purchase transactions net of returns. Excludes cash advance transactions.

(6)	Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by banking regulatory authorities.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures

In addition to disclosing required regulatory capital measures, we also report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include average tangible common equity, tangible common equity (TCE), TCE ratio, Tier 1 common equity and Tier 1 common equity ratio. The table below provides the details of the calculation of each of these measures. While these 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.


(Dollars in millions)(unaudited)		2011 Q1			2010 Q4			2010 Q1
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity		$ 27,009			$ 26,255			$ 23,681
Less: Average intangible assets (1)		(14,001)			(14,008)			(14,075)
Average tangible common equity		$ 13,008			$ 12,247			$ 9,606

Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity		$ 27,550			$ 26,541			$ 24,374
Less: Intangible assets (1)		(14,030)			(13,983)			(14,044)
Tangible common equity		$ 13,520			$ 12,558			$ 10,330

Total Assets to Tangible Assets
Total assets		$ 199,300			$ 197,503			$ 200,708
Less: Assets from discontinued operations		(342)			(362)			(16)
Total assets from continuing operations		198,958			197,141			200,692
Less: Intangible assets (1)		(14,030)			(13,983)			(14,044)
Tangible assets		$ 184,928			$ 183,158			$ 186,648

Non-GAAP TCE Ratio
Tangible common equity		$ 13,520			$ 12,558			$ 10,330
Tangible assets		184,928			183,158			186,648
TCE ratio(2)		7.3	%		6.9		%	5.5	%


Non-GAAP Tier 1 Common Equity and Regulatory Capital Ratios
Total stockholders' equity		$ 27,550			$ 26,541			$ 24,374
Less: Net unrealized (gains) losses on AFS securities recorded in AOCI (3)		(314)			(368)			(319)
	Net (gains) losses on cash flow hedges recorded in AOCI(3)	95			86			80
	Disallowed goodwill and other intangible assets	(13,993)			(13,953)			(14,078)
	Disallowed deferred tax assets	(1,377)			(1,150)			(2,183)
	Other	(2)			(2)			(1)
Tier 1 common equity		$ 11,959			$ 11,154			$ 7,873
Plus: Tier 1 restricted core capital items(4)		3,636			3,636			3,638
Tier 1 capital		$ 15,595			$ 14,790			$ 11,511
Plus: Long-term debt qualifying as Tier 2 capital		2,827			2,827			3,018
	Qualifying allowance for loan and lease losses	1,825			3,748			5,802
	Other Tier 2 components	20			29			4
Tier 2 capital		$ 4,672			$ 6,604			$ 8,824
Total risk-based capital(5)		$ 20,267			$ 21,394			$ 20,335

Risk-weighted assets(6)		$ 142,495			$ 127,043			$ 120,330

Tier 1 common equity ratio (7)		8.4	%	(10)		8.8	%	6.5	%
Tier 1 risk-based capital ratio (8)		10.9	%	(10)		11.6	%	9.6	%
Total risk-based capital ratio (9)		14.2	%	(10)		16.8	%	16.9	%


(1) Includes impact from related deferred taxes.
(2) Calculated based on tangible common equity divided by tangible assets.
(3) Amounts presented are net of tax.
(4) Consists primarily of trust preferred securities.
(5) Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
(6) Calculated based on prescribed regulatory guidelines.
(7) Tier 1 common equity ratio is a non-GAAP measure calculated based on Tier 1 common equity divided by risk-weighted assets.
(8) Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighed assets.
(9) Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighed assets.
(10) Regulatory capital ratios as of the end of Q1 2011 are preliminary and therefore subject to change once the calculations have been finalized.