Capital One Reports First Quarter 2015 Net Income of $1.2 billion, or $2.00 per share

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Apr 23, 2015, 04:05 ET

MCLEAN, Va., April 23, 2015 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2015 of $1.2 billion, or $2.00 per diluted common share, compared to the fourth quarter of 2014 with net income of $999 million, or $1.73 per diluted common share, and the first quarter of 2014 with net income of $1.2 billion, or $1.96 per diluted common share.

"In the first quarter, we continued to post strong results across our businesses," said Richard D. Fairbank, Chair and Chief Executive Officer. "As always, we're focused on sustaining strong performance and shareholder value. We are pursuing growth and resilience, managing costs tightly while we invest to grow, and actively working to return capital to shareholders."

All comparisons below are for the first quarter of 2015 compared with the fourth quarter of 2014 unless otherwise noted.

First Quarter 2015 Income Summary:

Total net revenue decreased 3 percent to $5.6 billion.
Total non-interest expense decreased 7 percent to $3.0 billion:
- 26 percent decrease in marketing.
- 3 percent decrease in operating expense.
Pre-provision earnings increased 3 percent to $2.6 billion.
Provision for credit losses decreased 16 percent to $935 million.
Mortgage representation & warranty benefit of $19 million ($12 million net of tax) in discontinued operations.

First Quarter 2015 Balance Sheet Summary:

Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.5 percent at March 31, 2015.
Net interest margin of 6.57 percent, down 24 basis points.
Period-end loans held for investment in the quarter decreased $4.3 billion, or 2 percent, to $204.0 billion.
- Domestic Card period-end loans decreased $3.6 billion, or 5 percent, to $74.1 billion.
- Consumer Banking period-end loans decreased $60 million, or less than 1 percent, to $71.4 billion:
  - Auto period-end loans increased $1.1 billion, or 3 percent, to $38.9 billion.
  - Home loans period-end loans decreased $1.1 billion, or 4 percent, to $28.9 billion, driven by run-off of acquired portfolios.
Commercial Banking period-end loans decreased $149 million, or less than 1 percent, to $50.7 billion.

Average loans held for investment in the quarter increased $1.8 billion, or less than 1 percent, to $205.2 billion.
- Domestic Card average loans increased $744 million, or 1 percent, to $74.8 billion.
- Consumer Banking average loans increased $187 million, or less than 1 percent, to $71.4 billion:
  - Auto average loans increased $1.3 billion, or 4 percent, to $38.4 billion.
  - Home loans average loans decreased by $1.1 billion, or 4 percent, to $29.5 billion, driven by run-off of acquired portfolios.
Commercial Banking average loans increased $731 million, or 1 percent, to $51.1 billion.

Period-end total deposits increased $4.9 billion, or 2 percent, to $210.4 billion, while average deposits increased $2.5 billion to $207.9 billion.
Interest-bearing deposit rate remained relatively flat at 0.59 percent.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 23, 2015 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). Choose "About Us", then 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 May 5, 2015 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release are forward-looking statements, which involve a number of risks and uncertainties. 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, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2014.

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 $210.4 billion in deposits and $306.2 billion in total assets as of March 31, 2015. 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 located 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.

Exhibit 99.2

Capital One Financial Corporation
Financial Supplement
First Quarter 2015⁽¹⁾
Table of Contents


Capital One Financial Corporation Consolidated Results			Page
	Table 1:	Financial Summary—Consolidated	1
	Table 2:	Selected Metrics—Consolidated	3
	Table 3:	Consolidated Statements of Income	4
	Table 4:	Consolidated Balance Sheets	6
	Table 5:	Notes to Financial & 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
Business Segments Detail
	Table 8:	Financial Summary—Business Segments	12
	Table 9:	Financial & Statistical Summary—Credit Card Business	13
	Table 10:	Financial & Statistical Summary—Consumer Banking Business	15
	Table 11:	Financial & Statistical Summary—Commercial Banking Business	16
	Table 12:	Financial & Statistical Summary—Other and Total	17
	Table 13:	Notes to Loan and Business Segments Disclosures (Tables 7—12)	18
Other
	Table 14:	Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures	19

__________
⁽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 March 31, 2015 once it is filed with the Securities and Exchange Commission.

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


											2015 Q1 vs.
(Dollars in millions, except per share data and as noted) (unaudited)	2015 Q1		2014 Q4		2014 Q3		2014 Q2		2014 Q1		2014 Q4	2014 Q1
	2015 Q1		2014 Q4		2014 Q3		2014 Q2		2014 Q1		2014 Q4	2014 Q1
Earnings
Net interest income	$	4,576	$	4,656	$	4,497	$	4,315	$	4,350	(2)%	5%
Non-interest income⁽²⁾	1,071		1,157		1,142		1,153		1,020		(7)	5
Total net revenue⁽³⁾	$	5,647	$	5,813	$	5,639	$	5,468	$	5,370	(3)	5
Provision for credit losses	935		1,109		993		704		735		(16)	27
Non-interest expense:
Marketing	375		509		392		335		325		(26)	15
Amortization of intangibles	110		123		130		136		143		(11)	(23)
Acquisition-related⁽⁴⁾	7		10		13		18		23		(30)	(70)
Operating expenses	2,557		2,642		2,450		2,490		2,441		(3)	5
Total non-interest expense	3,049		3,284		2,985		2,979		2,932		(7)	4
Income from continuing operations before income taxes	1,663		1,420		1,661		1,785		1,703		17	(2)
Income tax provision	529		450		536		581		579		18	(9)
Income from continuing operations, net of tax	1,134		970		1,125		1,204		1,124		17	1
Income (loss) from discontinued operations, net of tax⁽²⁾	19		29		(44)		(10)		30		(34)	(37)
Net income	1,153		999		1,081		1,194		1,154		15	—
Dividends and undistributed earnings allocated to participating securities⁽⁵⁾	(6)		(4)		(5)		(4)		(5)		50	20
Preferred stock dividends⁽⁵⁾	(32)		(21)		(20)		(13)		(13)		52	146
Net income available to common stockholders	$	1,115	$	974	$	1,056	$	1,177	$	1,136	14	(2)
Common Share Statistics
Basic earnings per common share:⁽⁵⁾
Net income from continuing operations	$	2.00	$	1.71	$	1.97	$	2.09	$	1.94	17%	3%
Income (loss) from discontinued operations	0.03		0.05		(0.08)		(0.02)		0.05		(40)	(40)
Net income per basic common share	$	2.03	$	1.76	$	1.89	$	2.07	$	1.99	15	2
Diluted earnings per common share:⁽⁵⁾
Net income from continuing operations	$	1.97	$	1.68	$	1.94	$	2.06	$	1.91	17	3
Income (loss) from discontinued operations	0.03		0.05		(0.08)		(0.02)		0.05		(40)	(40)
Net income per diluted common share	$	2.00	$	1.73	$	1.86	$	2.04	$	1.96	16	2
Weighted-average common shares outstanding (in millions) for:
Basic common shares	550.2		554.3		559.9		567.5		571.0		(1)	(4)
Diluted common shares	557.2		561.8		567.9		577.6		580.3		(1)	(4)
Common shares outstanding (period end, in millions)	548.0		553.4		558.5		561.8		572.9		(1)	(4)
Dividends per common share	$	0.30	$	0.30	$	0.30	$	0.30	$	0.30	—	—
Tangible book value per common share (period end)⁽⁶⁾	52.19		50.32		48.72		47.90		45.88		4	14


											2015 Q1 vs.
(Dollars in millions) (unaudited)	2015		2014		2014		2014		2014		2014	2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Balance Sheet (Period End)
Loans held for investment⁽⁷⁾	$	203,978	$	208,316	$	201,592	$	198,528	$	192,941	(2)%	6%
Interest-earning assets	275,837		277,849		270,001		266,720		259,422		(1)	6
Total assets	306,224		308,167		299,640		297,434		289,814		(1)	6
Interest-bearing deposits	185,208		180,467		178,876		180,970		184,214		3	1
Total deposits	210,440		205,548		204,264		205,890		208,324		2	1
Borrowings	41,029		48,457		42,243		39,114		30,118		(15)	36
Common equity	43,908		43,231		42,682		42,477		41,948		2	5
Total stockholders' equity	45,730		45,053		44,018		43,815		42,801		2	7
Balance Sheet (Average Balances)
Loans held for investment⁽⁷⁾	$	205,194	$	203,436	$	199,422	$	194,996	$	193,722	1%	6%
Interest-earning assets	278,427		273,436		268,890		263,570		262,659		2	6
Total assets	309,401		304,153		298,913		294,089		293,551		2	5
Interest-bearing deposits	182,998		179,401		179,928		182,053		184,183		2	(1)
Total deposits	207,851		205,355		205,199		206,315		205,842		1	1
Borrowings	46,082		43,479		40,314		35,658		35,978		6	28
Common equity	44,575		43,895		43,489		42,797		42,006		2	6
Total stockholders' equity	46,397		45,576		44,827		43,767		42,859		2	8

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Selected Metrics—Consolidated⁽¹⁾


											2015 Q1 vs.
(Dollars in millions) (unaudited)	2015		2014		2014		2014		2014		2014		2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Performance Metrics
Net interest income growth (quarter over quarter)	(2)%		4%		4%		(1)%		(2)%		**		**
Non-interest income growth (quarter over quarter)	(7)		1		(1)		13		(9)		**		**
Total net revenue growth (quarter over quarter)	(3)		3		3		2		(3)		**		**
Total net revenue margin⁽⁸⁾	8.11		8.50		8.39		8.30		8.18		(39)	bps	(7)	bps
Net interest margin⁽⁹⁾	6.57		6.81		6.69		6.55		6.62		(24)		(5)
Return on average assets	1.47		1.28		1.51		1.64		1.53		19		(6)
Return on average tangible assets⁽¹⁰⁾	1.54		1.34		1.59		1.73		1.62		20		(8)
Return on average common equity⁽¹¹⁾	9.84		8.61		10.12		11.09		10.53		123		(69)
Return on average tangible common equity⁽¹²⁾	15.00		13.28		15.73		17.47		16.83		172		(183)
Non-interest expense as a percentage of average loans held for investment	5.94		6.46		5.99		6.11		6.05		(52)		(11)
Efficiency ratio⁽¹³⁾	53.99		56.49		52.93		54.48		54.60		(250)		(61)
Effective income tax rate for continuing operations	31.8		31.7		32.3		32.5		34.0		10		(220)
Employees (in thousands), period end⁽¹⁴⁾	47.0		46.0		44.9		44.6		44.9		2%		5%
Credit Quality Metrics⁽⁷⁾
Allowance for loan and lease losses	$	4,405	$	4,383	$	4,212	$	3,998	$	4,098	1%		7%
Allowance as a percentage of loans held for investment	2.16%		2.10%		2.09%		2.01%		2.12%		6	bps	4	bps
Allowance as a percentage of loans held for investment (excluding acquired loans)	2.41		2.36		2.37		2.30		2.45		5		(4)
Net charge-offs	$	881	$	915	$	756	$	812	$	931	(4)%		(5)%
Net charge-off rate⁽¹⁵⁾	1.72%		1.80%		1.52%		1.67%		1.92%		(8)	bps	(20)	bps
Net charge-off rate (excluding acquired loans)⁽¹⁵⁾	1.93		2.04		1.73		1.93		2.24		(11)		(31)
30+ day performing delinquency rate	2.32		2.62		2.46		2.24		2.22		(30)		10
30+ day performing delinquency rate (excluding acquired loans)	2.61		2.95		2.81		2.58		2.59		(34)		2
30+ day delinquency rate	2.58		2.91		2.76		2.53		2.51		(33)		7
30+ day delinquency rate (excluding acquired loans)	2.90		3.28		3.14		2.91		2.93		(38)		(3)
Capital Ratios⁽¹⁶⁾
Common equity Tier 1 capital ratio	12.5%		12.5%		12.7%		12.7%		13.0%		—	bps	(50)	bps
Tier 1 risk-based capital ratio	13.2		13.2		13.3		13.3		13.4		—		(20)
Total risk-based capital ratio	15.1		15.1		15.2		15.4		15.4		—		(30)
Tier 1 leverage ratio	10.7		10.8		10.6		10.7		10.4		(10)		30
Tangible common equity ("TCE") ratio⁽¹⁷⁾	9.8		9.5		9.6		9.5		9.6		30		20

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


	Three Months Ended						2015 Q1 vs.
	2015		2014		2014		2014	2014
(Dollars in millions, except per share data and as noted) (unaudited)	Q1		Q4		Q1		Q4	Q1
Interest income:
Loans, including loans held for sale	$	4,540	$	4,613	$	4,307	(2)%	5%
Investment securities	406		405		416		—	(2)
Other	28		27		30		4	(7)
Total interest income	4,974		5,045		4,753		(1)	5
Interest expense:
Deposits	271		269		276		1	(2)
Securitized debt obligations	33		36		38		(8)	(13)
Senior and subordinated notes	79		73		77		8	3
Other borrowings	15		11		12		36	25
Total interest expense	398		389		403		2	(1)
Net interest income	4,576		4,656		4,350		(2)	5
Provision for credit losses	935		1,109		735		(16)	27
Net interest income after provision for credit losses	3,641		3,547		3,615		3	1
Non-interest income:⁽²⁾
Service charges and other customer-related fees	437		462		474		(5)	(8)
Interchange fees, net	496		523		440		(5)	13
Net other-than-temporary impairment recognized in earnings	(15)		(9)		(5)		67	200
Other	153		181		111		(15)	38
Total non-interest income	1,071		1,157		1,020		(7)	5
Non-interest expense:
Salaries and associate benefits	1,211		1,179		1,161		3	4
Occupancy and equipment	435		474		405		(8)	7
Marketing	375		509		325		(26)	15
Professional services	296		329		287		(10)	3
Communications and data processing	202		203		196		—	3
Amortization of intangibles	110		123		143		(11)	(23)
Other	420		467		415		(10)	1
Total non-interest expense	3,049		3,284		2,932		(7)	4
Income from continuing operations before income taxes	1,663		1,420		1,703		17	(2)
Income tax provision	529		450		579		18	(9)
Income from continuing operations, net of tax	1,134		970		1,124		17	1
Income from discontinued operations, net of tax⁽²⁾	19		29		30		(34)	(37)
Net income	1,153		999		1,154		15	—
Dividends and undistributed earnings allocated to participating securities⁽⁵⁾	(6)		(4)		(5)		50	20
Preferred stock dividends⁽⁵⁾	(32)		(21)		(13)		52	146
Net income available to common stockholders	$	1,115	$	974	$	1,136	14	(2)



	Three Months Ended						2015 Q1 vs.
	2015		2014		2014		2014	2014
(Dollars in millions, except per share data and as noted) (unaudited)	Q1		Q4		Q1		Q4	Q1
Basic earnings per common share:⁽⁵⁾
Net income from continuing operations	$	2.00	$	1.71	$	1.94	17%	3%
Income from discontinued operations	0.03		0.05		0.05		(40)	(40)
Net income per basic common share	$	2.03	$	1.76	$	1.99	15	2
Diluted earnings per common share:⁽⁵⁾
Net income from continuing operations	$	1.97	$	1.68	$	1.91	17	3
Income from discontinued operations	0.03		0.05		0.05		(40)	(40)
Net income per diluted common share	$	2.00	$	1.73	$	1.96	16	2
Weighted average common shares outstanding (in millions):
Basic common shares	550.2		554.3		571.0		(1)	(4)
Diluted common shares	557.2		561.8		580.3		(1)	(4)
Dividends paid per common share	$	0.30	$	0.30	$	0.30	—	—

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets⁽¹⁾


							March 31, 2015 vs.
(Dollars in millions) (unaudited)	March 31, 2015		December 31, 2014		March 31, 2014		December 31, 2014	March 31, 2014
Assets:
Cash and cash equivalents:
Cash and due from banks	$	2,853	$	3,147	$	3,373	(9)%	(15)%
Interest-bearing deposits with banks	6,038		4,095		2,641		47	129
Federal funds sold and securities purchased under agreements to resell	0		0		168		—	**
Total cash and cash equivalents	8,891		7,242		6,182		23	44
Restricted cash for securitization investors	234		234		550		—	(57)
Securities available for sale, at fair value	39,321		39,508		40,721		—	(3)
Securities held to maturity, at carrying value	23,241		22,500		20,150		3	15
Loans held for investment:⁽⁷⁾
Unsecuritized loans held for investment	170,040		171,771		156,072		(1)	9
Restricted loans for securitization investors	33,938		36,545		36,869		(7)	(8)
Total loans held for investment	203,978		208,316		192,941		(2)	6
Allowance for loan and lease losses	(4,405)		(4,383)		(4,098)		1	7
Net loans held for investment	199,573		203,933		188,843		(2)	6
Loans held for sale, at lower of cost or fair value	1,331		626		259		113	414
Premises and equipment, net	3,684		3,685		3,807		—	(3)
Interest receivable	1,078		1,079		1,045		—	3
Goodwill	13,978		13,978		13,974		—	—
Other assets	14,893		15,382		14,283		(3)	4
Total assets	$	306,224	$	308,167	$	289,814	(1)	6



							March 31, 2015 vs.
(Dollars in millions) (unaudited)	March 31, 2015		December 31, 2014		March 31, 2014		December 31, 2014	March 31, 2014
Liabilities:
Interest payable	$	195	$	254	$	182	(23)%	7%
Deposits:
Non-interest bearing deposits	25,232		25,081		24,110		1	5
Interest-bearing deposits	185,208		180,467		184,214		3	1
Total deposits	210,440		205,548		208,324		2	1
Securitized debt obligations	12,717		11,624		9,783		9	30
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	933		880		1,544		6	(40)
Senior and subordinated notes	20,559		18,684		14,891		10	38
Other borrowings	6,820		17,269		3,900		(61)	75
Total other debt	28,312		36,833		20,335		(23)	39
Other liabilities	8,830		8,855		8,389		—	5
Total liabilities	260,494		263,114		247,013		(1)	5

Stockholders' equity:
Preferred stock	0		0		0		—	—
Common stock	6		6		6		—	—
Additional paid-in capital, net	27,939		27,869		26,605		—	5
Retained earnings	24,925		23,973		21,259		4	17
Accumulated other comprehensive income ("AOCI")	(212)		(430)		(710)		(51)	(70)
Treasury stock, at cost	(6,928)		(6,365)		(4,359)		9	59
Total stockholders' equity	45,730		45,053		42,801		2	7
Total liabilities and stockholders' equity	$	306,224	$	308,167	$	289,814	(1)	6

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

**	Not meaningful.

⁽¹⁾	As of January 1, 2015, we changed our accounting principle for presenting qualifying derivative assets and liabilities, as well as the related fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable), from a gross basis of presentation to a net basis. Prior period results and related metrics have been recast to conform to this presentation. Prior period regulatory ratios have not been recast.

⁽²⁾	We recorded the following related to the mortgage representation and warranty reserve:



	2015		2014		2014		2014		2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1
Provision (benefit) for mortgage representation and warranty losses before income taxes:
Recorded in continuing operations	$	1	$	(11)	$	—	$	(29)	$	14
Recorded in discontinued operations	(19)		(41)		70		11		(47)
Total (benefit) provision for mortgage representation and warranty losses before income taxes	$	(18)	$	(52)	$	70	$	(18)	$	(33)



Historically, the majority of the provision for representation and warranty losses is included net of tax in discontinued operations, with the remaining amount included before income taxes in non-interest income. The mortgage representation and warranty reserve was $673 million as of March 31, 2015, $731 million as of December 31, 2014 and $1.1 billion as of March 31, 2014.


⁽³⁾	Total net revenue was reduced by $147 million in Q1 2015, $165 million in Q4 2014, $164 million in Q3 2014, $153 million in Q2 2014 and $163 million in Q1 2014 for the estimated uncollectible amount of billed finance charges and fees.

⁽⁴⁾	Acquisition-related costs include transaction costs, legal and other professional or consulting fees, restructuring costs, and integration expense.

⁽⁵⁾	Dividends and undistributed earnings allocated to participating securities, earnings per share, and preferred stock dividends are computed independently for each period. Accordingly, the sum of each quarter may not agree to the year-to-date total.

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

⁽⁷⁾	Loans held for investment includes acquired loans. We use the term "acquired loans" to refer to a certain portion of the loans acquired in the following transactions: (i) the February 2012 transaction where we acquired the assets and assumed the liabilities of substantially all of ING Direct; (ii) the February 2009 Chevy Chase Bank acquisition; and (iii) May 2012 transaction in which we acquired substantially all of HSBC's credit card and private-label credit card business in the United States. These loans were recorded at fair value at acquisition and subsequently accounted for based on estimated cash flows expected to be collected over the life of the loans (under the accounting standard formerly known as "SOP 03-3", or Accounting Standard Codification 310-30). The table below presents amounts related to acquired loans accounted for under SOP 03-3:



	2015		2014		2014		2014		2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1
Acquired loans accounted for under SOP 03-3:
Period-end unpaid principal balance	$	23,248	$	24,473	$	25,726	$	27,117	$	28,549
Period-end loans held for investment	22,334		23,500		24,685		26,019		27,390
Average loans held for investment	22,773		23,907		25,104		26,491		27,760



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

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

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

⁽¹¹⁾	Calculated based on the annualized sum of (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly titled measures reported by other companies.

⁽¹²⁾	Calculated based on the annualized sum of (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Return on average tangible common equity is a non-GAAP measure and our calculation may not be comparable to similarly titled measures reported by other companies. See "Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.

⁽¹³⁾	Calculated based on total non-interest expense for the period divided by total net revenue for the period.

⁽¹⁴⁾	Effective Q2 2014, we changed our presentation from total full-time equivalent employees to total employees. All prior periods have been recast to conform to the current presentation.

⁽¹⁵⁾	Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

⁽¹⁶⁾	Ratios as of the end of Q1 2015 are preliminary and therefore subject to change. See "Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.

⁽¹⁷⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.

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


	2015 Q1					2014 Q4					2014 Q1
	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾
(Dollars in millions) (unaudited)	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾
Interest-earning assets:
Loans, including loans held for sale	$	205,854	$	4,540	8.82%	$	204,137	$	4,613	9.04%	$	194,020	$	4,307	8.88%
Investment securities	63,181		406		2.57	62,952		405		2.57	62,124		416		2.68
Cash equivalents and other	9,392		28		1.19	6,347		27		1.70	6,515		30		1.84
Total interest-earning assets	$	278,427	$	4,974	7.15	$	273,436	$	5,045	7.38	$	262,659	$	4,753	7.24

Interest-bearing liabilities:
Interest-bearing deposits	$	182,998	$	271	0.59	$	179,401	$	269	0.60	$	184,183	$	276	0.60
Securitized debt obligations	11,563		33		1.14	11,479		36		1.25	10,418		38		1.46
Senior and subordinated notes	20,595		79		1.53	18,680		73		1.56	14,162		77		2.17
Other borrowings and liabilities	14,721		15		0.41	14,058		11		0.31	11,398		12		0.42
Total interest-bearing liabilities	$	229,877	$	398	0.69	$	223,618	$	389	0.70	$	220,161	$	403	0.73
Net interest income/spread			$	4,576	6.46			$	4,656	6.68			$	4,350	6.51
Impact of non-interest bearing funding					0.11					0.13					0.11
Net interest margin					6.57%					6.81%					6.62%

__________

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

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics⁽¹⁾


											2015 Q1 vs.
(Dollars in millions) (unaudited)	2015 Q1		2014 Q4		2014 Q3		2014 Q2		2014 Q1		2014 Q4		2014 Q1
Period-end Loans Held For Investment
Credit card:
Domestic credit card	$	74,131	$	77,704	$	73,143	$	71,165	$	68,275	(5)%		9%
International credit card	7,623		8,172		7,488		7,853		7,575		(7)		1
Total credit card	81,754		85,876		80,631		79,018		75,850		(5)		8
Consumer banking:
Auto	38,937		37,824		36,254		34,792		33,080		3		18
Home loan	28,905		30,035		31,203		32,644		34,035		(4)		(15)
Retail banking	3,537		3,580		3,604		3,626		3,612		(1)		(2)
Total consumer banking	71,379		71,439		71,061		71,062		70,727		—		1
Commercial banking:
Commercial and multifamily real estate	22,831		23,137		22,895		22,040		21,256		(1)		7
Commercial and industrial	27,172		26,972		26,071		25,402		24,064		1		13
Total commercial lending	50,003		50,109		48,966		47,442		45,320		—		10
Small-ticket commercial real estate	738		781		822		879		910		(6)		(19)
Total commercial banking⁽²⁾	50,741		50,890		49,788		48,321		46,230		—		10
Other loans	104		111		112		127		134		(6)		(22)
Total loans held for investment⁽²⁾	$	203,978	$	208,316	$	201,592	$	198,528	$	192,941	(2)		6
Average Loans Held For Investment
Credit card:
Domestic credit card	$	74,770	$	74,026	$	71,784	$	69,376	$	69,810	1%		7%
International credit card	7,811		7,714		7,710		7,621		7,692		1		2
Total credit card	82,581		81,740		79,494		76,997		77,502		1		7
Consumer banking:
Auto	38,387		37,072		35,584		33,972		32,387		4		19
Home loan	29,493		30,604		31,859		33,299		34,646		(4)		(15)
Retail banking	3,561		3,578		3,605		3,613		3,630		—		(2)
Total consumer banking	71,441		71,254		71,048		70,884		70,663		—		1
Commercial banking:
Commercial and multifamily real estate	23,120		23,129		22,409		21,484		20,962		—		10
Commercial and industrial	27,190		26,409		25,512		24,611		23,541		3		16
Total commercial lending	50,310		49,538		47,921		46,095		44,503		2		13
Small-ticket commercial real estate	760		801		845		896		932		(5)		(18)
Total commercial banking	51,070		50,339		48,766		46,991		45,435		1		12
Other loans	102		103		114		124		122		(1)		(16)
Total average loans held for investment	$	205,194	$	203,436	$	199,422	$	194,996	$	193,722	1		6
Net Charge-off Rates
Credit card:
Domestic credit card	3.55%		3.39%		2.83%		3.52%		4.01%		16	bps	(46)	bps
International credit card	2.80		3.34		3.32		3.93		4.17		(54)		(137)
Total credit card	3.48		3.38		2.88		3.56		4.02		10		(54)



						2015 Q1 vs.
(Dollars in millions) (unaudited)	2015 Q1	2014 Q4	2014 Q3	2014 Q2	2014 Q1	2014 Q4		2014 Q1
Consumer banking:
Auto	1.55%	2.14%	1.98%	1.31%	1.66%	(59)	bps	(11)	bps
Home loan	0.03	0.07	0.02	0.05	0.06	(4)		(3)
Retail banking	0.96	1.28	1.36	0.70	0.95	(32)		1
Total consumer banking	0.89	1.20	1.07	0.69	0.84	(31)		5
Commercial banking:
Commercial and multifamily real estate	(0.03)	0.01	(0.10)	—	0.01	(4)		(4)
Commercial and industrial	0.05	0.10	(0.01)	0.04	0.03	(5)		2
Total commercial lending	0.01	0.06	(0.05)	0.02	0.02	(5)		(1)
Small-ticket commercial real estate	0.47	0.80	(0.01)	0.61	0.67	(33)		(20)
Total commercial banking	0.02	0.07	(0.05)	0.03	0.04	(5)		(2)
Other loans	1.56	0.47	(0.61)	2.18	(0.68)	109		224
Total net charge-offs	1.72	1.80	1.52	1.67	1.92	(8)		(20)
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	2.92%	3.27%	3.21%	2.83%	3.02%	(35)	bps	(10)	bps
International credit card	2.81	2.94	3.34	3.40	3.59	(13)		(78)
Total credit card	2.91	3.24	3.22	2.89	3.08	(33)		(17)
Consumer banking:
Auto	5.21	6.57	6.14	5.77	5.29	(136)		(8)
Home loan	0.18	0.21	0.14	0.13	0.12	(3)		6
Retail banking	0.60	0.64	0.53	0.48	0.74	(4)		(14)
Total consumer banking	2.95	3.60	3.22	2.91	2.57	(65)		38
Nonperforming Loans and Nonperforming Assets Rates⁽³⁾⁽⁴⁾
Credit card:
International credit card	0.84%	0.86%	0.98%	1.03%	1.07%	(2)	bps	(23)	bps
Total credit card	0.08	0.08	0.09	0.10	0.11	—		(3)
Consumer banking:
Auto	0.31	0.52	0.49	0.43	0.34	(21)		(3)
Home loan	1.16	1.10	1.04	1.07	1.09	6		7
Retail banking	0.71	0.61	0.54	0.79	1.15	10		(44)
Total consumer banking	0.67	0.77	0.73	0.75	0.74	(10)		(7)
Commercial banking:
Commercial and multifamily real estate	0.18	0.27	0.26	0.29	0.27	(9)		(9)
Commercial and industrial	0.39	0.39	0.37	0.41	0.36	—		3
Total commercial lending	0.29	0.33	0.32	0.36	0.32	(4)		(3)
Small-ticket commercial real estate	1.62	0.96	0.42	1.40	0.73	66		89
Total commercial banking	0.31	0.34	0.32	0.38	0.33	(3)		(2)
Other loans	13.33	13.37	14.66	12.74	12.47	(4)		86
Total nonperforming loans	0.35	0.39	0.38	0.41	0.40	(4)		(5)
Total nonperforming assets	0.50	0.54	0.53	0.55	0.54	(4)		(4)

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Financial Summary—Business Segments⁽¹⁾


	Three Months Ended March 31, 2015
(Dollars in millions) (unaudited)	Total		Credit Card		Consumer Banking		Commercial Banking		Other
Earnings:
Net interest income	$	4,576	$	2,666	$	1,434	$	461	$	15
Non-interest income	1,071		816		158		114		(17)
Total net revenue⁽⁵⁾	5,647		3,482		1,592		575		(2)
Provision for credit losses	935		669		206		60		—
Non-interest expense	3,049		1,776		970		272		31
Income (loss) from continuing operations before income taxes	1,663		1,037		416		243		(33)
Income tax provision (benefit)	529		369		150		88		(78)
Income from continuing operations, net of tax	$	1,134	$	668	$	266	$	155	$	45

	Three Months Ended December 31, 2014
(Dollars in millions) (unaudited)	Total		Credit Card		Consumer Banking		Commercial Banking		Other
Earnings:
Net interest income	$	4,656	$	2,697	$	1,459	$	455	$	45
Non-interest income	1,157		841		185		132		(1)
Total net revenue⁽⁵⁾	5,813		3,538		1,644		587		44
Provision (benefit) for credit losses	1,109		856		222		32		(1)
Non-interest expense	3,284		1,888		1,045		293		58
Income (loss) from continuing operations before income taxes	1,420		794		377		262		(13)
Income tax provision (benefit)	450		275		135		93		(53)
Income from continuing operations, net of tax	$	970	$	519	$	242	$	169	$	40

	Three Months Ended March 31, 2014
(Dollars in millions) (unaudited)	Total		Credit Card		Consumer Banking		Commercial Banking		Other
Earnings:
Net interest income (expense)	$	4,350	$	2,525	$	1,433	$	421	$	(29)
Non-interest income	1,020		785		150		87		(2)
Total net revenue (loss)⁽⁵⁾	5,370		3,310		1,583		508		(31)
Provision (benefit) for credit losses	735		558		140		40		(3)
Non-interest expense	2,932		1,726		930		255		21
Income (loss) from continuing operations before income taxes	1,703		1,026		513		213		(49)
Income tax provision (benefit)	579		358		183		76		(38)
Income (loss) from continuing operations, net of tax	$	1,124	$	668	$	330	$	137	$	(11)

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial & Statistical Summary—Credit Card Business⁽¹⁾


											2015 Q1 vs.
	2015		2014		2014		2014		2014		2014		2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Credit Card
Earnings:
Net interest income	$	2,666	$	2,697	$	2,627	$	2,461	$	2,525	(1)%		6%
Non-interest income	816		841		846		839		785		(3)		4
Total net revenue	3,482		3,538		3,473		3,300		3,310		(2)		5
Provision for credit losses	669		856		787		549		558		(22)		20
Non-interest expense	1,776		1,888		1,730		1,719		1,726		(6)		3
Income from continuing operations before income taxes	1,037		794		956		1,032		1,026		31		1
Income tax provision	369		275		332		364		358		34		3
Income from continuing operations, net of tax	$	668	$	519	$	624	$	668	$	668	29		—
Selected performance metrics:
Period-end loans held for investment	$	81,754	$	85,876	$	80,631	$	79,018	$	75,850	(5)%		8%
Average loans held for investment	82,581		81,740		79,494		76,997		77,502		1		7
Average yield on loans held for investment⁽⁶⁾	14.30%		14.61%		14.65%		14.22%		14.43%		(31)	bps	(13)	bps
Total net revenue margin	16.87		17.31		17.48		17.14		17.08		(44)		(21)
Net charge-off rate	3.48		3.38		2.88		3.56		4.02		10		(54)
30+ day performing delinquency rate	2.91		3.24		3.22		2.89		3.08		(33)		(17)
30+ day delinquency rate	2.97		3.30		3.29		2.97		3.16		(33)		(19)
Nonperforming loan rate⁽³⁾	0.08		0.08		0.09		0.10		0.11		—		(3)
Card loan premium amortization and other intangible accretion⁽⁷⁾	$	11	$	11	$	18	$	31	$	37	—%		(70)%
PCCR intangible amortization	84		87		90		94		98		(3)		(14)
Purchase volume⁽⁸⁾	57,383		63,484		57,474		56,358		47,434		(10)		21
Domestic Card
Earnings:
Net interest income	$	2,421	$	2,432	$	2,361	$	2,193	$	2,255	—%		7%
Non-interest income	743		768		763		768		702		(3)		6
Total net revenue	3,164		3,200		3,124		2,961		2,957		(1)		7
Provision for credit losses	610		765		738		504		486		(20)		26
Non-interest expense	1,580		1,676		1,530		1,513		1,545		(6)		2
Income from continuing operations before income taxes	974		759		856		944		926		28		5
Income tax provision	353		272		306		337		331		30		7
Income from continuing operations, net of tax	$	621	$	487	$	550	$	607	$	595	28		4



											2015 Q1 vs.
	2015		2014		2014		2014		2014		2014		2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Selected performance metrics:
Period-end loans held for investment	$	74,131	$	77,704	$	73,143	$	71,165	$	68,275	(5)%		9%
Average loans held for investment	74,770		74,026		71,784		69,376		69,810		1		7
Average yield on loans held for investment⁽⁶⁾	14.23%		14.43%		14.46%		13.95%		14.19%		(20)	bps	4	bps
Total net revenue margin	16.93		17.29		17.41		17.07		16.94		(36)		(1)
Net charge-off rate	3.55		3.39		2.83		3.52		4.01		16		(46)
30+ day performing delinquency rate	2.92		3.27		3.21		2.83		3.02		(35)		(10)
30+ day delinquency rate	2.92		3.27		3.21		2.83		3.02		(35)		(10)
Purchase volume⁽⁸⁾	$	52,025	$	58,234	$	53,690	$	52,653	$	44,139	(11)%		18%
International Card
Earnings:
Net interest income	$	245	$	265	$	266	$	268	$	270	(8)%		(9)%
Non-interest income	73		73		83		71		83		—		(12)
Total net revenue	318		338		349		339		353		(6)		(10)
Provision for credit losses	59		91		49		45		72		(35)		(18)
Non-interest expense	196		212		200		206		181		(8)		8
Income from continuing operations before income taxes	63		35		100		88		100		80		(37)
Income tax provision	16		3		26		27		27		**		(41)
Income from continuing operations, net of tax	$	47	$	32	$	74	$	61	$	73	47		(36)
Selected performance metrics:
Period-end loans held for investment	$	7,623	$	8,172	$	7,488	$	7,853	$	7,575	(7)%		1%
Average loans held for investment	7,811		7,714		7,710		7,621		7,692		1		2
Average yield on loans held for investment⁽⁶⁾	14.93%		16.31%		16.42%		16.74%		16.64%		(138)	bps	(171)	bps
Total net revenue margin	16.31		17.55		18.13		17.76		18.38		(124)		(207)
Net charge-off rate	2.80		3.34		3.32		3.93		4.17		(54)		(137)
30+ day performing delinquency rate	2.81		2.94		3.34		3.40		3.59		(13)		(78)
30+ day delinquency rate	3.44		3.60		4.08		4.20		4.41		(16)		(97)
Nonperforming loan rate⁽³⁾	0.84		0.86		0.98		1.03		1.07		(2)		(23)
Purchase volume⁽⁸⁾	$	5,358	$	5,250	$	3,784	$	3,705	$	3,295	2%		63%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary—Consumer Banking Business⁽¹⁾


											2015 Q1 vs.
	2015		2014		2014		2014		2014		2014		2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Consumer Banking
Earnings:
Net interest income	$	1,434	$	1,459	$	1,425	$	1,431	$	1,433	(2)%		—%
Non-interest income	158		185		179		170		150		(15)		5
Total net revenue	1,592		1,644		1,604		1,601		1,583		(3)		1
Provision for credit losses	206		222		198		143		140		(7)		47
Non-interest expense	970		1,045		956		938		930		(7)		4
Income from continuing operations before income taxes	416		377		450		520		513		10		(19)
Income tax provision	150		135		161		186		183		11		(18)
Income from continuing operations, net of tax	$	266	$	242	$	289	$	334	$	330	10		(19)
Selected performance metrics:
Period-end loans held for investment	$	71,379	$	71,439	$	71,061	$	71,062	$	70,727	—%		1%
Average loans held for investment	71,441		71,254		71,048		70,884		70,663		—		1
Average yield on loans held for investment⁽⁶⁾	6.26%		6.45%		6.18%		6.22%		6.18%		(19)	bps	8	bps
Auto loan originations	$	5,185	$	5,390	$	5,410	$	5,376	$	4,727	(4)%		10%
Period-end deposits	172,502		168,078		167,624		169,153		171,529		3		1
Average deposits	169,593		167,727		168,407		169,694		168,676		1		1
Average deposit interest rate	0.57%		0.57%		0.58%		0.57%		0.57%		—	bps	—	bps
Core deposit intangible amortization	$	22	$	24	$	26	$	28	$	30	(8)%		(27)%
Net charge-off rate	0.89%		1.20%		1.07%		0.69%		0.84%		(31)	bps	5	bps
30+ day performing delinquency rate	2.95		3.60		3.22		2.91		2.57		(65)		38
30+ day delinquency rate	3.46		4.23		3.82		3.49		3.14		(77)		32
Nonperforming loan rate⁽³⁾	0.67		0.77		0.73		0.75		0.74		(10)		(7)
Nonperforming asset rate⁽⁴⁾	0.95		1.06		1.01		1.01		1.00		(11)		(5)

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Financial & Statistical Summary—Commercial Banking Business⁽¹⁾


											2015 Q1 vs.
	2015		2014		2014		2014		2014		2014		2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Commercial Banking
Earnings:
Net interest income	$	461	$	455	$	439	$	436	$	421	1%		10%
Non-interest income	114		132		122		109		87		(14)		31
Total net revenue⁽⁵⁾	575		587		561		545		508		(2)		13
Provision for credit losses	60		32		9		12		40		88		50
Non-interest expense	272		293		268		267		255		(7)		7
Income from continuing operations before income taxes	243		262		284		266		213		(7)		14
Income tax provision	88		93		102		95		76		(5)		16
Income from continuing operations, net of tax	$	155	$	169	$	182	$	171	$	137	(8)		13
Selected performance metrics:
Period-end loans held for investment⁽²⁾	$	50,741	$	50,890	$	49,788	$	48,321	$	46,230	—%		10%
Average loans held for investment	51,070		50,339		48,766		46,991		45,435		1		12
Average yield on loans held for investment⁽⁵⁾⁽⁶⁾	3.22%		3.33%		3.39%		3.50%		3.47%		(11)	bps	(25)	bps
Period-end deposits	$	32,575	$	31,954	$	31,918	$	31,440	$	31,485	2%		3%
Average deposits	32,845		32,363		31,772		31,238		31,627		1		4
Average deposit interest rate	0.24%		0.24%		0.24%		0.24%		0.25%		—	bps	(1)	bps
Core deposit intangible amortization	$	4	$	5	$	5	$	5	$	6	(20)%		(33)%
Net charge-off (recovery) rate	0.02%		0.07%		(0.05)%		0.03%		0.04%		(5)	bps	(2)	bps
Nonperforming loan rate⁽³⁾	0.31		0.34		0.32		0.38		0.33		(3)		(2)
Nonperforming asset rate⁽⁴⁾	0.31		0.36		0.35		0.41		0.36		(5)		(5)
Risk category:⁽⁹⁾
Noncriticized	$	48,938	$	49,284	$	48,408	$	46,881	$	45,103	(1)%		9%
Criticized performing	1,645		1,431		1,219		1,259		977		15		68
Criticized nonperforming	158		175		161		181		150		(10)		5
Total commercial loans	$	50,741	$	50,890	$	49,788	$	48,321	$	46,230	—		10
Risk category as a percentage of period-end commercial loans held for investment:
Noncriticized	96.5%		96.9%		97.3%		97.0%		97.5%		(40)	bps	(100)	bps
Criticized performing	3.2		2.8		2.4		2.6		2.2		40		100
Criticized nonperforming	0.3		0.3		0.3		0.4		0.3		—		—
Total commercial loans	100.0%		100.0%		100.0%		100.0%		100.0%		—		—

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12: Financial & Statistical Summary—Other and Total⁽¹⁾


											2015 Q1 vs.
	2015		2014		2014		2014		2014		2014	2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Other
Earnings:
Net interest income (expense)	$	15	$	45	$	6	$	(13)	$	(29)	(67)%	**
Non-interest income	(17)		(1)		(5)		35		(2)		**	**
Total net (loss) revenue⁽⁵⁾	$	(2)	44		1		22		(31)		**	(94)%
Benefit for credit losses	—		(1)		(1)		—		(3)		**	**
Non-interest expense	31		58		31		55		21		(47)	48
Loss from continuing operations before income taxes	(33)		(13)		(29)		(33)		(49)		154	(33)
Income tax benefit	(78)		(53)		(59)		(64)		(38)		47	105
Income (loss) from continuing operations, net of tax	$	45	$	40	$	30	$	31	$	(11)	13	**
Selected performance metrics:
Period-end loans held for investment	$	104	$	111	$	112	$	127	$	134	(6)%	(22)%
Average loans held for investment	102		103		114		124		122		(1)	(16)
Period-end deposits	5,363		5,516		4,722		5,297		5,310		(3)	1
Average deposits	5,413		5,265		5,020		5,383		5,539		3	(2)
Total
Earnings:
Net interest income	$	4,576	$	4,656	$	4,497	$	4,315	$	4,350	(2)%	5%
Non-interest income	1,071		1,157		1,142		1,153		1,020		(7)	5
Total net revenue	5,647		5,813		5,639		5,468		5,370		(3)	5
Provision for credit losses	935		1,109		993		704		735		(16)	27
Non-interest expense	3,049		3,284		2,985		2,979		2,932		(7)	4
Income from continuing operations before income taxes	1,663		1,420		1,661		1,785		1,703		17	(2)
Income tax provision	529		450		536		581		579		18	(9)
Income from continuing operations, net of tax	$	1,134	$	970	$	1,125	$	1,204	$	1,124	17	1
Selected performance metrics:
Period-end loans held for investment⁽²⁾	$	203,978	$	208,316	$	201,592	$	198,528	$	192,941	(2)%	6%
Average loans held for investment	205,194		203,436		199,422		194,996		193,722		1	6
Period-end deposits	210,440		205,548		204,264		205,890		208,324		2	1
Average deposits	207,851		205,355		205,199		206,315		205,842		1	1

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Notes to Loan and Business Segments Disclosures (Tables 7—12)

^**	Not meaningful.

⁽¹⁾	Certain prior period amounts have been recast to conform to the current period presentation.

⁽²⁾	Includes $3.6 billion and $3.7 billion of loans to the oil and gas industry as of March 31, 2015 and December 31, 2014, respectively, representing approximately 1.8% of total loans held for investment for both periods.

⁽³⁾	The nonperforming loan ratios are calculated based on nonperforming loans for each category divided by period-end total loans held for investments.

⁽⁴⁾	Nonperforming assets consist of nonperforming loans, real estate owned ("REO") and other foreclosed assets. The nonperforming asset ratios are calculated based on nonperforming assets for each category divided by the combined period-end total of loans held for investment, REO and other foreclosed assets for each respective category. Calculation of nonperforming assets ratios for Consumer and Commercial Banking business are adjusted to exclude the impact of acquired loans.

⁽⁵⁾	Some of our tax-related commercial investments generate tax-exempt income or tax credits. Accordingly, we make certain reclassifications within our Commercial Banking business results to present revenues and yields on a taxable-equivalent basis, calculated assuming an effective tax rate approximately equal to our federal statutory tax rate of 35% with offsetting reclassifications within Other category.

⁽⁶⁾	Calculated by dividing annualized interest income for the period by average loans held for investment during the period for the specified loan category. Annualized interest income excludes various allocations including funds transfer pricing that assigns certain balance sheet assets, deposits and other liabilities and their related revenue and expenses attributable to each business segment.

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

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

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

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures⁽¹⁾


	Basel III Standardized
(Dollars in millions) (unaudited)	March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014
Regulatory Capital Metrics
Common equity Tier 1 capital	$	29,671	$	29,534	$	29,116	$	28,774	$	28,434
Tier 1 capital	31,493		31,355		30,451		30,111		29,257
Total risk-based capital⁽²⁾	35,880		35,879		34,860		34,743		33,784
Risk-weighted assets⁽³⁾	238,197		236,944		228,759		226,172		219,047
Average assets for the leverage ratio	295,556		291,243		286,070		281,345		280,907
Capital Ratios
Common equity Tier 1 capital ratio⁽⁵⁾	12.5%		12.5%		12.7%		12.7%		13.0%
Tier 1 risk-based capital ratio⁽⁶⁾	13.2		13.2		13.3		13.3		13.4
Total risk-based capital ratio⁽⁷⁾	15.1		15.1		15.2		15.4		15.4
Tier 1 leverage ratio⁽⁸⁾	10.7		10.8		10.6		10.7		10.4
Tangible common equity ("TCE") ratio⁽⁹⁾	9.8		9.5		9.6		9.5		9.6

Reconciliation of Non-GAAP Measures

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



	2015		2014		2014		2014		2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1
Tangible Common Equity (Average)
Average stockholders' equity	$	46,397	$	45,576	$	44,827	$	43,767	$	42,859
Average goodwill and intangible assets⁽¹⁰⁾	(15,339)		(15,437)		(15,525)		(15,615)		(15,727)
Noncumulative perpetual preferred stock⁽¹¹⁾	(1,822)		(1,681)		(1,338)		(970)		(853)
Average tangible common equity	$	29,236	$	28,458	$	27,964	$	27,182	$	26,279
Tangible Common Equity (Period End)
Stockholders' equity	$	45,730	$	45,053	$	44,018	$	43,815	$	42,801
Goodwill and intangible assets⁽¹⁰⁾	(15,307)		(15,383)		(15,472)		(15,564)		(15,666)
Noncumulative perpetual preferred stock⁽¹¹⁾	(1,822)		(1,822)		(1,336)		(1,338)		(853)
Tangible common equity	$	28,601	$	27,848	$	27,210	$	26,913	$	26,282



	2015		2014		2014		2014		2014
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1
Tangible Assets (Average)
Average total assets⁽⁴⁾	$	309,401	$	304,153	$	298,913	$	294,089	$	293,551
Average goodwill and intangible assets⁽¹⁰⁾	(15,339)		(15,437)		(15,525)		(15,615)		(15,727)
Average tangible assets⁽⁴⁾	$	294,062	$	288,716	$	283,388	$	278,474	$	277,824
Tangible Assets (Period End)
Total assets⁽⁴⁾	$	306,224	$	308,167	$	299,640	$	297,434	$	289,814
Goodwill and intangible assets⁽¹⁰⁾	(15,307)		(15,383)		(15,472)		(15,564)		(15,666)
Tangible assets⁽⁴⁾	$	290,917	$	292,784	$	284,168	$	281,870	$	274,148

Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach


(Dollars in millions) (unaudited)	March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014
Common equity excluding AOCI	$	44,120	$	43,661	$	43,241	$	42,848	$	42,658
Adjustments:
AOCI^(12)(13)	(26)		(69)		(146)		6		(182)
Goodwill⁽¹⁰⁾	(13,801)		(13,805)		(13,801)		(13,811)		(13,811)
Intangible assets^(10)(13)	(450)		(243)		(266)		(289)		(314)
Other	(172)		(10)		88		20		83
Common equity Tier 1 capital	$	29,671	$	29,534	$	29,116	$	28,774	$	28,434
Risk-weighted assets⁽³⁾	$	238,197	$	236,944	$	228,759	$	226,172	$	219,047
Common equity Tier 1 capital ratio⁽⁵⁾	12.5%		12.5%		12.7%		12.7%		13.0%

__________

⁽¹⁾	Regulatory capital metrics and capital ratios as of the end of Q1 2015 are preliminary and therefore subject to change.

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

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

⁽⁴⁾	As of January 1, 2015, we changed our accounting principle for presenting eligible derivative assets and liabilities, as well as the related interest receivables and payables, from a gross basis of presentation to a net basis. Prior period average assets and average tangible assets have been recast to conform to this presentation. Prior period regulatory ratios have not been recast.

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

⁽⁶⁾	Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.

⁽⁷⁾	Total risk-based capital ratio is a regulatory capital measure calculated based on Total risk-based capital divided by risk-weighted assets.

⁽⁸⁾	Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.

⁽⁹⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.

⁽¹⁰⁾	Includes impact of related deferred taxes.

⁽¹¹⁾	Includes related surplus.

⁽¹²⁾	Amounts presented are net of tax.

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