Capital One Reports First Quarter 2012 Net Income of $1.4 billion, or $2.72 per share

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement

First Quarter 2012 ⁽¹⁾⁽²⁾

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

Table   7:

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

7

Business Segment Detail

Table   8:

Financial & Statistical Summary―Credit Card Business

8

Table   9:

Financial & Statistical Summary―Consumer Banking Business

9

Table 10:

Financial & Statistical Summary―Commercial Banking Business

10

Table 11:

Financial & Statistical Summary―Other and Total

11

Table 12:

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

12

Other

Table 13:

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

13

⁽¹⁾

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 March 31, 2012 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.

⁽²⁾

References to ING Direct refer to the business and assets acquired and liabilities assumed in the February 17, 2012 acquisition.

⁽³⁾

Acquired loans consist of the substantial majority of loans acquired in the Chevy Chase Bank and ING Direct business combinations, which were recorded at fair value at acquisition and accounted for under applicable accounting guidance.  This accounting methodology takes into consideration estimated credit losses expected to be realized over the remaining lives of the loans.  Accordingly, we present certain credit quality metrics excluding the impact of these loans where applicable.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1:  Financial & Statistical Summary—Consolidated ⁽¹⁾

2012

2011

2011

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

Q1 ⁽²⁾

Q4

Q1

Earnings

Net interest income

$         3,414

$              3,182

$              3,140

Non-interest income ^{(3) (4)}

1,521

868

942

Total revenue ⁽⁵⁾

4,935

4,050

4,082

Provision for credit losses

573

861

534

Marketing expenses

321

420

276

Operating expenses ⁽⁶⁾

2,183

2,198

1,886

Income from continuing operations before income taxes 

1,858

571

1,386

Income tax provision

353

160

354

Income from continuing operations, net of tax

1,505

411

1,032

Loss from discontinued operations, net of tax⁽³⁾

(102)

(4)

(16)

Net income

1,403

407

1,016

Dividends and undistributed earnings allocated to participating securities

(7)

(26)

—

Net income available to common stockholders

$         1,396

$                 381

$              1,016

Common Share Statistics

Basic EPS: 

   Income from continuing operations, net of tax

$           2.94

$                0.89

$                2.27

   Loss from discontinued operations, net of tax

(0.20)

(0.01)

(0.03)

   Net income per common share 

$           2.74

$                0.88

$                2.24

Diluted EPS: 

   Income from continuing operations, net of tax

$           2.92

$                0.89

$                2.24

   Loss from discontinued operations, net of tax

(0.20)

(0.01)

(0.03)

   Net income per common share

$           2.72

$                0.88

$                2.21

Weighted average common shares outstanding (in millions):

   Basic EPS

508.7

456.2

454.1

   Diluted EPS

513.1

458.5

460.3

Common shares outstanding (period end) 

580.2

459.9

458.7

Dividends per common share

$           0.05

$                0.05

$                0.05

Tangible book value per common share (period end)⁽⁷⁾

39.37

34.26

29.47

Balance Sheet (Period End)

Loans held for investment ⁽⁸⁾

$      173,822

$           135,892

$           124,092

Interest-earning assets

265,398

179,878

172,870

Total assets

294,481

206,019

199,300

Tangible assets⁽⁹⁾

280,067

191,806

184,928

Interest-bearing deposits

197,254

109,945

109,097

Total deposits

216,528

128,226

125,446

Borrowings

32,885

39,561

39,797

Stockholders' equity

36,950

29,666

27,550

Balance Sheet (Quarterly Average Balances)

Average loans held for investment ⁽⁸⁾

$      152,900

$           131,581

$           125,077

Average interest-earning assets

220,246

176,271

173,440

Average total assets

246,384

200,106

198,075

Average interest-bearing deposits

151,625

109,914

108,633

Average total deposits

170,259

128,450

124,158

Average borrowings

35,994

34,812

40,538

Average stockholders' equity

32,982

29,698

27,009

Performance Metrics

Net interest income growth (quarter over quarter) 

7

%

(3)

%

4

%

Non-interest income growth(quarter over quarter)

75

—

—

Revenue growth(quarter over quarter)

22

(3)

3

Revenue margin ⁽¹⁰⁾

8.96

9.19

9.41

Net interest margin ⁽¹¹⁾

6.20

7.22

7.24

Return on average assets ⁽¹²⁾

2.44

0.82

2.08

Return on average equity ⁽¹³⁾

18.25

5.54

15.28

Return on average tangible common equity⁽¹⁴⁾

31.60

10.43

31.73

Non-interest expense as a % of average loans held for investment ⁽¹⁵⁾

6.55

7.96

6.91

Efficiency ratio⁽¹⁶⁾

50.74

64.64

52.96

Effective income tax rate

19.0

28.0

25.5

Full-time equivalent employees (in thousands)

34.2

30.5

27.9

Credit Quality Metrics 

Allowance for loan and lease losses 

$         4,060

$              4,250

$              5,067

Allowance as a % of loans held for investment 

2.34

%

3.13

%

4.08

%

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

3.08

3.22

4.23

Net charge-offs 

$            780

$                 884

$              1,145

Net charge-off rate ^{(17) (18)}

2.04

%

2.69

%

3.66

%

Net charge-off rate (excluding acquired loans) 

2.40

2.79

3.82

30+ day performing delinquency rate  ⁽¹⁹⁾

2.23

3.35

3.07

30+ day performing delinquency rate (excluding acquired loans)

2.96

3.47

3.18

30+ day delinquency rate⁽²⁰⁾ 

—

3.95

3.79

Capital Ratios

Tier 1 risk-based capital ratio ⁽²¹⁾

13.9

%

12.0

%

10.9

%

Tier 1 common ratio ⁽²²⁾

11.9

9.7

8.4

Total risk-based capital ratio ⁽²³⁾

16.5

14.9

14.2

Tangible common equity (TCE) ratio⁽²⁴⁾

8.2

8.2

7.3

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2:  Notes to Consolidated Financial & Statistical Summary (Table 1)

⁽¹⁾

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

⁽²⁾

Results for Q1 2012 include the impact of the February 17, 2012 acquisition of ING Direct, which resulted in the addition of loans with an outstanding principal and interest loan balance of $40.4 billion and deposits of $84.4 billion at acquisition.

⁽³⁾

The mortgage representation and warranty reserve increased to $1.1 billion as of March 31, 2012, from $943 million as of December 31, 2011. We recorded a provision for repurchase losses of $169 million in Q1 2012, $59 million in Q4 2011, and $44 million in Q1 2011. The majority of the provision for repurchase losses is generally included in discontinued operations, with the remaining portion included in non-interest income.  

⁽⁴⁾

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

⁽⁵⁾

The estimated uncollectible amount of billed finance charges and fees excluded from revenue totaled $123 million in Q1 2012, $130 million in Q4 2011, and $105 million in Q1 2011.

⁽⁶⁾

Includes merger-related expenses attributable to acquisitions of $86 million in Q1 2012 and $27 million in Q4 2011. Also, includes core deposit intangible amortization expense of $46 million in Q1 2012, $40 million in Q4 2011, and $45 million in Q1 2011. 

⁽⁷⁾

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.

⁽⁸⁾

See Table 7 for additional information on acquired loans and our credit quality metrics excluding acquired loans.

⁽⁹⁾

Tangible assets is a non-GAAP measure consisting of total assets less assets from discontinued operations and intangible assets. See "Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this measure.

⁽¹⁰⁾

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

⁽¹¹⁾

Calculated based on annualized net interest income 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 for the period divided by average loans held for investment for the period.

⁽¹⁶⁾

Calculated based on non-interest expense for the period divided by total revenue for the period. 

⁽¹⁷⁾

In accordance with our loss-sharing agreement with Kohl's, charge-offs for the portfolio are reported net of any reimbursement of credit losses from Kohl's, which has the impact of lowering the overall charge-off rate. 

⁽¹⁸⁾

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

⁽¹⁹⁾

The 30+ day performing delinquency rate for acquired loans, which is presented below, is calculated based on the contractual past due unpaid principal balance divided by the total outstanding unpaid principal balance of acquired loans as of the end of each period.

2012

2011

2011

(Dollars in millions) (unaudited)

 Q1

Q4

Q1

Total period-end acquired loan portfolio (unpaid principal balance)

$44,798

$5,751

$6,698

30+ day performing delinquency rates (acquired loans)

3.05%

3.05%

2.97%

⁽²⁰⁾

The 30+ day total delinquency rate as of the end of Q1 2012 will be provided in the March 31, 2012 Quarterly Report on Form 10-Q.

⁽²¹⁾

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.

⁽²²⁾

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.

⁽²³⁾

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.

⁽²⁴⁾

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.

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)

2012

2011

2011

Interest income:

Loans held for investment, including past-due fees

$             3,655

$                    3,440

$                  3,417

Investment securities

298

244

316

Other

26

17

19

Total interest income

3,979

3,701

3,752

Interest expense:

Deposits

311

264

322

Securitized debt obligations

80

80

140

Senior and subordinated notes

88

89

64

Other borrowings

86

86

86

Total interest expense

565

519

612

Net interest income

3,414

3,182

3,140

Provision for credit losses

573

861

534

Net interest income after provision for credit losses

2,841

2,321

2,606

Non-interest income:

Service charges and other customer-related fees

415

452

525

Interchange fees, net

328

346

320

Net other-than-temporary impairment losses recognized in earnings

(14)

(6)

(3)

Bargain purchase gain ⁽¹⁾

594

—

—

Other

198

76

100

Total non-interest income

1,521

868

942

Non-interest expense:

Salaries and associate benefits

891

817

741

Marketing

321

420

276

Communications and data processing

173

177

164

Supplies and equipment

150

137

135

Occupancy

123

131

119

Other

846

936

727

Total non-interest expense

2,504

2,618

2,162

Income from continuing operations before income taxes

1,858

571

1,386

Income tax provision

353

160

354

Income from continuing operations, net of tax

1,505

411

1,032

Loss from discontinued operations, net of tax

(102)

(4)

(16)

Net income

1,403

407

1,016

Dividends and undistributed earnings allocated to participating securities

(7)

(26)

—

Net income available to common stockholders

$             1,396

$                       381

$                   1,016

Basic earnings per common share:

  Income from continuing operations

$               2.94

$                      0.89

$                     2.27

  Loss from discontinued operations

(0.20)

(0.01)

(0.03)

  Net income per basic common share

$               2.74

$                      0.88

$                     2.24

Diluted earnings per common share:

  Income from continuing operations

$               2.92

$                      0.89

$                     2.24

  Loss from discontinued operations

(0.20)

(0.01)

(0.03)

  Net income per diluted common share

$               2.72

$                      0.88

$                     2.21

Weighted average common shares outstanding (in millions):

   Basic EPS

508.7

456.2

454.1

   Diluted EPS

513.1

458.5

460.3

Dividends paid per common share

$               0.05

$                      0.05

$                     0.05

⁽¹⁾

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.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4:  Consolidated Balance Sheets

March 31,

December 31,

March  31,

(Dollars in millions)(unaudited)

2012

2011

2011

Assets:

Cash and due from banks

$         27,341

$         2,097

$       2,028

Interest-bearing deposits with banks

3,007

3,399

5,397

Federal funds sold and securites purchased under agreements to resell

308

342

546

Cash and cash equivalents

30,656

5,838

7,971

Restricted cash for securitization investors

1,090

791

2,556

Securities available for sale, at fair value

60,810

38,759

41,566

Loans held for investment:

Unsecuritized loans held for investment

128,927

88,242

75,184

Restricted loans for securitization investors

44,895

47,650

48,908

Total loans held for investment

173,822

135,892

124,092

    Less: Allowance for loan and lease losses

(4,060)

(4,250)

(5,067)

Net loans held for investment

169,762

131,642

119,025

Loans held for sale, at lower-of-cost-or-fair-value

627

201

117

Accounts receivable from securitizations

96

94

112

Premises and equipment, net

3,062

2,748

2,739

Interest receivable

1,157

1,029

1,025

Goodwill

13,595

13,592

13,597

Other

13,626

11,325

10,592

Total assets

$     294,481

$      206,019

$    199,300

Liabilities:

Interest payable

$            384

$             466

$           411

Customer deposits:

Non-interest bearing deposits

19,274

18,281

16,349

Interest-bearing deposits

197,254

109,945

109,097

Total customer deposits

216,528

128,226

125,446

Securitized debt obligations

15,474

16,527

24,506

Other debt:

Federal funds purchased and securities loaned or sold under agreements to repurchase

770

1,464

1,970

Senior and subordinated notes

11,948

11,034

8,545

Other borrowings

4,693

10,536

4,776

Total other debt

17,411

23,034

15,291

Other liabilities

7,734

8,100

6,096

Total liabilities

257,531

176,353

171,750

Stockholders' equity:

Common stock

6

5

5

Paid-in capital, net

25,136

19,274

19,141

Retained earnings and accumulated other comprehensive income

15,094

13,631

11,644

Less:  Treasury stock, at cost

(3,286)

(3,244)

(3,240)

Total stockholders' equity

36,950

29,666

27,550

Total liabilities and stockholders' equity

$      294,481

$      206,019

$      199,300

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 5:  Average Balances, Net Interest Income and Net Interest Margin

2012 Q1

2011 Q4

2011 Q1

(Dollars in millions)(unaudited)

Average

Balance

Yield/
Rate

Yield/ Rate

Interest-earning assets:

Loans held for investment

$ 152,900

$  3,655

9.56

%

$ 131,581

$   3,440

10.46

%

$  125,077

$  3,417

10.93

%

Investment securities 

50,543

298

2.36

39,005

244

2.50

41,532

316

3.04

Cash equivalents and other

16,803

26

0.62

5,685

17

1.20

6,831

19

1.11

Total interest-earning assets 

$ 220,246

$  3,979

7.23

%

$ 176,271

$   3,701

8.40

%

$  173,440

$  3,752

8.65

%

Interest-bearing liabilities:

Interest-bearing deposits

NOW accounts

$  24,912

$       34

0.55

%

$  13,700

$        12

0.35

%

$   13,648

$         9

0.26

%

Money market deposit accounts

76,362

131

0.69

47,167

87

0.74

45,613

110

0.96

Savings accounts

31,743

34

0.43

31,422

47

0.60

26,801

55

0.82

Other consumer time deposits

12,763

74

2.32

12,264

77

2.51

15,344

99

2.58

Public fund CD's of $100,000 or more

84

-

-

84

1

4.76

149

1

2.68

CD's of $100,000 or more

4,787

37

3.09

4,748

39

3.29

6,097

47

3.08

Foreign time deposits

974

1

0.41

529

1

0.76

981

1

0.41

Total interest-bearing deposits

$ 151,625

$    311

0.82

%

$ 109,914

$      264

0.96

%

$  108,633

$    322

1.19

%

Securitized debt obligations

16,185

80

1.98

16,780

80

1.91

25,515

140

2.19

Senior and subordinated notes

10,268

88

3.43

10,237

89

3.48

8,090

64

3.16

Other borrowings

9,541

86

3.61

7,794

86

4.41

6,933

86

4.96

Total interest-bearing liabilities

$ 187,619

$    565

1.20

%

$ 144,725

$      519

1.43

%

$   149,171

$    612

1.64

%

Net interest income/spread

$  3,414

6.03

%

$   3,182

6.97

%

$  3,140

7.01

%

Impact of non-interest bearing funding

0.17

0.25

0.23

Net interest margin

6.20

%

7.22

%

7.24

%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 6: Loan Information and Performance Statistics ⁽¹⁾

2012

2011

2011

(Dollars in millions)(unaudited)

Q1⁽²⁾

Q4

Q1

Period-end Loans Held For Investment

Credit card:

   Domestic credit card 

$              53,173

$            56,609

$            50,570

   International credit card

8,303

8,466

8,735

      Total credit card

61,476

65,075

59,305

Consumer banking:

   Automobile

23,568

21,779

18,342

   Home loan

49,550

10,433

11,741

   Retail banking

4,182

4,103

4,223

      Total consumer banking

77,300

36,315

34,306

Commercial banking: ⁽³⁾