MCLEAN, Va., Oct. 17, 2013 /PRNewswire/ -- Capital One
Financial Corporation (NYSE: COF) today announced net income for
the third quarter of 2013 of $1.1
billion, or $1.86 per diluted
common share, flat to the second quarter of 2013 with net income of
$1.1 billion, or $1.87 per diluted common share, and down from the
third quarter of 2012 with net income of $1.2 billion, or $2.01 per diluted common.
"Our businesses continue to deliver attractive, sustainable, and
resilient returns and generate capital on a strong trajectory,"
said Richard D. Fairbank, Chairman
and CEO. "We remain focused on important levers that will
sustain and improve our profitability and our ability to distribute
capital."
All comparisons below are for the third quarter of 2013 compared
with the second quarter of 2013 unless otherwise
noted.
Third Quarter 2013 Income Highlights:
- Total net revenue increased less than 1 percent to $5.7 billion
- Total non-interest expense increased 3 percent to $3.1 billion
- Pre-provision earnings decreased 3 percent to $2.5 billion
- Provision for credit losses increased 11 percent to
$849 million
- Non-interest expense includes $101
million for litigation reserves
Third Quarter 2013 Balance Sheet Highlights:
- Tier 1 common ratio of 12.7 percent, up 60 basis points
- Net interest margin of 6.89 percent, up 6 basis points
- Period-end loans held for investment increased $302 million, or less than 1 percent, to
$191.8 billion
- Domestic Card period-end loans decreased $554 million, or less than 1 percent, to
$69.9 billion
- Commercial Banking period-end loans increased $1.6 billion, or 4 percent, to $42.4 billion
- Consumer Banking:
- Auto Finance period-end loans increased $1.4 billion, or 5 percent, to $30.8 billion
- Home loans period-end loans decreased $2.3 billion, or 6 percent, to $36.8 billion, driven by run-off of acquired
portfolios
- Average loans held for investment in the quarter increased
$573 million, or less than 1 percent,
to $191.1 billion
- Domestic Card average loans declined $19
million, or less than 1 percent, to $69.9 billion
- Commercial Banking average loans increased $2.1 billion, or 5 percent, to $41.6 billion
- Consumer Banking:
- Auto Finance average loans increased $1.5 billion, or 5 percent, to $30.2 billion
- Home loans decreased by $2.7
billion, or 7 percent, to $37.9
billion, driven by run-off of acquired portfolios
- Period-end total deposits decreased $3.0
billion, or 1 percent, to $206.8
billion, while average deposits declined $2.3 billion, or 1 percent, to $208.3 billion
- Deposit interest rates declined 2 basis points to 0.79
percent
Detailed segment information will be available in the company's
Quarterly Report on Form 10-Q for the quarter ended September 30, 2013.
Earnings Conference Call Webcast
Information
The company will hold an earnings conference call on
October 17, 2013, at 5:00 PM, Eastern Daylight 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 November 7,
2013 at 5:00 PM.
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,
2012.
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 $206.9
billion in deposits and $289.9 billion in
total assets as of September 30,
2013. 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 more
than 900 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.
Exhibit
99.2
|
|
Capital One
Financial Corporation
|
Financial
Supplement
|
Third Quarter
2013(1)(2)
|
Table of
Contents
|
|
|
|
Capital One
Financial Corporation Consolidated
|
Page
|
|
Table
1:
|
Financial
Summary—Consolidated
|
1
|
|
Table
2:
|
Selected
Metrics—Consolidated
|
2
|
|
Table
3:
|
Consolidated
Statements of Income
|
3
|
|
Table
4:
|
Consolidated
Balance Sheets
|
4
|
|
Table
5:
|
Notes to Financial
& Selected Metrics and Consolidated Financial Statements
(Tables 1 - 4)
|
5
|
|
Table
6:
|
Average Balances,
Net Interest Income and Net Interest Margin
|
6
|
|
Table
7:
|
Loan Information
and Performance Statistics
|
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 7 - 11)
|
12
|
Other
|
|
|
Table
13:
|
Reconciliation of
Non-GAAP Measures and Calculation of Regulatory Capital Measures
Under Basel I
|
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 Quarterly Report on
Form 10-Q for the period ended September 30, 2013 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.
References to the 2012 U.S. card acquisition refer to the May 1,
2012 transaction in which we acquired substantially all of HSBC's
credit card and private-label credit card business in the United
States.
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 1: Financial
Summary—Consolidated(1)
|
|
|
|
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
(Dollars in millions, except per share data and as
noted) (unaudited)
|
|
Q3
|
|
Q2
|
|
Q3
|
Earnings
|
|
|
|
|
|
|
Net interest income
|
|
$
|
4,560
|
|
|
$
|
4,553
|
|
|
$
|
4,646
|
|
Non-interest income(2)
|
|
1,091
|
|
|
1,085
|
|
|
1,136
|
|
Total net revenue(3)
|
|
5,651
|
|
|
5,638
|
|
|
5,782
|
|
Provision for credit losses
|
|
849
|
|
|
762
|
|
|
1,014
|
|
Non-interest expense:
|
|
|
|
|
|
|
Marketing
|
|
299
|
|
|
330
|
|
|
316
|
|
Amortization of intangibles(4)
|
|
161
|
|
|
167
|
|
|
199
|
|
Acquisition-related(5)
|
|
37
|
|
|
50
|
|
|
48
|
|
Operating expenses
|
|
2,650
|
|
|
2,512
|
|
|
2,482
|
|
Total non-interest expense
|
|
3,147
|
|
|
3,059
|
|
|
3,045
|
|
Income from continuing operations before income
taxes
|
|
1,655
|
|
|
1,817
|
|
|
1,723
|
|
Income tax provision
|
|
525
|
|
|
581
|
|
|
535
|
|
Income from continuing operations, net of
tax
|
|
1,130
|
|
|
1,236
|
|
|
1,188
|
|
Loss from discontinued operations, net of
tax(2)
|
|
(13)
|
|
|
(119)
|
|
|
(10)
|
|
Net income
|
|
1,117
|
|
|
1,117
|
|
|
1,178
|
|
Dividends and undistributed earnings allocated to
participating securities(6)
|
|
(5)
|
|
|
(4)
|
|
|
(5)
|
|
Preferred stock dividends
|
|
(13)
|
|
|
(13)
|
|
|
—
|
|
Net income available to common
stockholders
|
|
$
|
1,099
|
|
|
$
|
1,100
|
|
|
$
|
1,173
|
|
Common Share Statistics
|
|
|
|
|
|
|
Basic EPS:(6)
|
|
|
|
|
|
|
Income from continuing operations, net of
tax
|
|
$
|
1.91
|
|
|
$
|
2.09
|
|
|
$
|
2.05
|
|
Loss from discontinued operations, net of
tax
|
|
(0.02)
|
|
|
(0.20)
|
|
|
(0.02)
|
|
Net income per common share
|
|
$
|
1.89
|
|
|
$
|
1.89
|
|
|
$
|
2.03
|
|
Diluted EPS:(6)
|
|
|
|
|
|
|
Income from continuing operations, net of
tax
|
|
$
|
1.88
|
|
|
$
|
2.07
|
|
|
$
|
2.03
|
|
Loss from discontinued operations, net of
tax
|
|
(0.02)
|
|
|
(0.20)
|
|
|
(0.02)
|
|
Net income per common share
|
|
$
|
1.86
|
|
|
$
|
1.87
|
|
|
$
|
2.01
|
|
Weighted average common shares outstanding (in
millions) for:
|
|
|
|
|
|
|
Basic EPS
|
|
582.3
|
|
|
581.5
|
|
|
578.3
|
|
Diluted EPS
|
|
591.1
|
|
|
588.8
|
|
|
584.1
|
|
Common shares outstanding (period end, in
millions)
|
|
582.0
|
|
|
584.9
|
|
|
581.3
|
|
Dividends per common share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
$
|
0.05
|
|
Tangible book value per common share (period
end)(7)
|
|
43.19
|
|
|
41.57
|
|
|
38.70
|
|
Balance Sheet (Period End)
|
|
|
|
|
|
|
Loans held for investment(8)
|
|
$
|
191,814
|
|
|
$
|
191,512
|
|
|
$
|
203,132
|
|
Interest-earning assets
|
|
259,152
|
|
|
265,693
|
|
|
270,661
|
|
Total assets
|
|
289,888
|
|
|
296,542
|
|
|
301,989
|
|
Interest-bearing deposits
|
|
184,553
|
|
|
187,768
|
|
|
192,488
|
|
Total deposits
|
|
206,834
|
|
|
209,865
|
|
|
213,255
|
|
Borrowings
|
|
31,845
|
|
|
36,231
|
|
|
38,377
|
|
Common equity
|
|
40,897
|
|
|
40,188
|
|
|
38,819
|
|
Total stockholders' equity
|
|
41,750
|
|
|
41,041
|
|
|
39,672
|
|
Balance Sheet (Quarterly Average
Balances)
|
|
|
|
|
|
|
Loans held for
investment(8)
|
|
$
|
191,135
|
|
|
$
|
190,562
|
|
|
$
|
202,856
|
|
Interest-earning assets
|
|
264,796
|
|
|
266,544
|
|
|
266,803
|
|
Total assets
|
|
294,939
|
|
|
297,766
|
|
|
297,154
|
|
Interest-bearing deposits
|
|
186,752
|
|
|
189,311
|
|
|
193,700
|
|
Total deposits
|
|
208,340
|
|
|
210,650
|
|
|
213,323
|
|
Borrowings
|
|
36,355
|
|
|
36,915
|
|
|
36,451
|
|
Common equity
|
|
40,431
|
|
|
40,726
|
|
|
38,079
|
|
Total stockholders' equity
|
|
41,284
|
|
|
41,579
|
|
|
38,535
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 2: Selected
Metrics—Consolidated(1)
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
(Dollars in millions, except per share data and as
noted) (unaudited)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Performance Metrics
|
|
|
|
|
|
|
|
Net interest income growth (quarter over
quarter)
|
|
—
|
|
%
|
—
|
|
%
|
16
|
|
%
|
Non-interest income growth (quarter over
quarter)
|
|
1
|
|
|
11
|
|
|
8
|
|
|
Total net revenue growth (quarter over
quarter)
|
|
—
|
|
|
2
|
|
|
14
|
|
|
Total net revenue
margin(9)
|
|
8.54
|
|
|
8.46
|
|
|
8.67
|
|
|
Net interest margin(10)
|
|
6.89
|
|
|
6.83
|
|
|
6.97
|
|
|
Return on average
assets(11)
|
|
1.53
|
|
|
1.66
|
|
|
1.60
|
|
|
Return on average tangible
assets(12)
|
|
1.62
|
|
|
1.75
|
|
|
1.69
|
|
|
Return on average common
equity(13)
|
|
11.00
|
|
|
11.97
|
|
|
12.43
|
|
|
Return on average tangible common
equity(14)
|
|
18.08
|
|
|
19.70
|
|
|
21.84
|
|
|
Non-interest expense as a % of average loans held for
investment(15)
|
|
6.59
|
|
|
6.42
|
|
|
6.00
|
|
|
Efficiency ratio(16)
|
|
55.69
|
|
|
54.26
|
|
|
52.66
|
|
|
Effective income tax rate for continuing
operations
|
|
31.7
|
|
|
32.0
|
|
|
31.1
|
|
|
Full-time equivalent employees (in thousands), period
end
|
|
39.6
|
|
|
39.6
|
|
|
37.6
|
|
|
Credit Quality
Metrics(8)
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
|
$
|
4,333
|
|
|
$
|
4,407
|
|
|
$
|
5,154
|
|
|
Allowance as a % of loans held for
investment
|
|
2.26
|
|
%
|
2.30
|
|
%
|
2.54
|
|
%
|
Allowance as a % of loans held for investment
(excluding acquired loans)
|
|
2.66
|
|
|
2.74
|
|
|
3.11
|
|
|
Net charge-offs
|
|
$
|
917
|
|
|
$
|
969
|
|
|
$
|
887
|
|
|
Net charge-off rate(17)
|
|
1.92
|
|
%
|
2.03
|
|
%
|
1.75
|
|
%
|
Net charge-off rate (excluding acquired loans)(17)
|
|
2.29
|
|
|
2.46
|
|
|
2.18
|
|
|
30+ day performing delinquency rate
|
|
2.54
|
|
|
2.35
|
|
|
2.54
|
|
|
30+ day performing delinquency rate (excluding
acquired loans)
|
|
3.01
|
|
|
2.83
|
|
|
3.15
|
|
|
30+ day delinquency
rate(18)
|
|
**
|
|
2.71
|
|
|
2.92
|
|
|
30+ day delinquency rate (excluding acquired
loans)(18)
|
|
**
|
|
3.26
|
|
|
3.62
|
|
|
Capital Ratios (19)
|
|
|
|
|
|
|
|
Tier 1 common ratio
|
|
12.7
|
|
%
|
12.1
|
|
%
|
10.7
|
|
%
|
Tier 1 risk-based capital ratio
|
|
13.1
|
|
|
12.4
|
|
|
12.7
|
|
|
Total risk-based capital ratio
|
|
15.3
|
|
|
14.7
|
|
|
15.0
|
|
|
Tangible common equity ("TCE")
ratio
|
|
9.2
|
|
|
8.7
|
|
|
7.9
|
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 3:
Consolidated Statements of Income(1)
|
|
|
|
Three Months Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
(Dollars in millions, except per share data)
(unaudited)
|
|
2013
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
Loans, including loans held for
sale
|
|
$
|
4,579
|
|
|
$
|
4,596
|
|
|
$
|
4,903
|
|
|
$
|
13,824
|
|
|
$
|
12,817
|
|
Investment securities
|
|
396
|
|
|
391
|
|
|
335
|
|
|
1,161
|
|
|
968
|
|
Other
|
|
23
|
|
|
23
|
|
|
16
|
|
|
74
|
|
|
64
|
|
Total interest income
|
|
4,998
|
|
|
5,010
|
|
|
5,254
|
|
|
15,059
|
|
|
13,849
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
309
|
|
|
318
|
|
|
371
|
|
|
953
|
|
|
1,055
|
|
Securitized debt obligations
|
|
42
|
|
|
45
|
|
|
64
|
|
|
143
|
|
|
213
|
|
Senior and subordinated notes
|
|
76
|
|
|
82
|
|
|
85
|
|
|
240
|
|
|
260
|
|
Other borrowings
|
|
11
|
|
|
12
|
|
|
88
|
|
|
40
|
|
|
260
|
|
Total interest expense
|
|
438
|
|
|
457
|
|
|
608
|
|
|
1,376
|
|
|
1,788
|
|
Net interest income
|
|
4,560
|
|
|
4,553
|
|
|
4,646
|
|
|
13,683
|
|
|
12,061
|
|
Provision for credit losses
|
|
849
|
|
|
762
|
|
|
1,014
|
|
|
2,496
|
|
|
3,264
|
|
Net interest income after provision for credit
losses
|
|
3,711
|
|
|
3,791
|
|
|
3,632
|
|
|
11,187
|
|
|
8,797
|
|
Non-interest
income(2):
|
|
|
|
|
|
|
|
|
|
|
Service charges and other customer-related
fees
|
|
530
|
|
|
534
|
|
|
557
|
|
|
1,614
|
|
|
1,511
|
|
Interchange fees, net
|
|
476
|
|
|
486
|
|
|
452
|
|
|
1,407
|
|
|
1,188
|
|
Net other-than-temporary impairment losses recognized
in earnings
|
|
(11)
|
|
|
(4)
|
|
|
(13)
|
|
|
(40)
|
|
|
(40)
|
|
Bargain purchase
gain(20)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
594
|
|
Other
|
|
96
|
|
|
69
|
|
|
140
|
|
|
176
|
|
|
458
|
|
Total non-interest income
|
|
1,091
|
|
|
1,085
|
|
|
1,136
|
|
|
3,157
|
|
|
3,711
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and associate benefits
|
|
1,145
|
|
|
1,104
|
|
|
1,002
|
|
|
3,329
|
|
|
2,837
|
|
Occupancy and equipment
|
|
369
|
|
|
356
|
|
|
354
|
|
|
1,075
|
|
|
947
|
|
Marketing
|
|
299
|
|
|
330
|
|
|
316
|
|
|
946
|
|
|
971
|
|
Professional services
|
|
320
|
|
|
329
|
|
|
310
|
|
|
956
|
|
|
916
|
|
Communications and data processing
|
|
224
|
|
|
233
|
|
|
198
|
|
|
667
|
|
|
573
|
|
Amortization of
intangibles(4)
|
|
161
|
|
|
167
|
|
|
199
|
|
|
505
|
|
|
418
|
|
Acquisition-related(5)
|
|
37
|
|
|
50
|
|
|
48
|
|
|
133
|
|
|
267
|
|
Other
|
|
592
|
|
|
490
|
|
|
618
|
|
|
1,623
|
|
|
1,762
|
|
Total non-interest expense
|
|
3,147
|
|
|
3,059
|
|
|
3,045
|
|
|
9,234
|
|
|
8,691
|
|
Income from continuing operations before income
taxes
|
|
1,655
|
|
|
1,817
|
|
|
1,723
|
|
|
5,110
|
|
|
3,817
|
|
Income tax provision
|
|
525
|
|
|
581
|
|
|
535
|
|
|
1,600
|
|
|
931
|
|
Income from continuing operations, net of
tax
|
|
1,130
|
|
|
1,236
|
|
|
1,188
|
|
|
3,510
|
|
|
2,886
|
|
Loss from discontinued operations, net of
tax(2)
|
|
(13)
|
|
|
(119)
|
|
|
(10)
|
|
|
(210)
|
|
|
(212)
|
|
Net income
|
|
1,117
|
|
|
1,117
|
|
|
1,178
|
|
|
3,300
|
|
|
2,674
|
|
Dividends and undistributed earnings allocated to
participating securities(6)
|
|
(5)
|
|
|
(4)
|
|
|
(5)
|
|
|
(14)
|
|
|
(12)
|
|
Preferred stock dividends
|
|
(13)
|
|
|
(13)
|
|
|
—
|
|
|
(39)
|
|
|
—
|
|
Net income available to common
stockholders
|
|
$
|
1,099
|
|
|
$
|
1,100
|
|
|
$
|
1,173
|
|
|
$
|
3,247
|
|
|
$
|
2,662
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share:(6)
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
1.91
|
|
|
$
|
2.09
|
|
|
$
|
2.05
|
|
|
$
|
5.94
|
|
|
$
|
5.18
|
|
Loss from discontinued operations
|
|
(0.02)
|
|
|
(0.20)
|
|
|
(0.02)
|
|
|
(0.36)
|
|
|
(0.38)
|
|
Net income per basic common share
|
|
$
|
1.89
|
|
|
$
|
1.89
|
|
|
$
|
2.03
|
|
|
$
|
5.58
|
|
|
$
|
4.80
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common
share:(6)
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
1.88
|
|
|
$
|
2.07
|
|
|
$
|
2.03
|
|
|
$
|
5.87
|
|
|
$
|
5.13
|
|
Loss from discontinued operations
|
|
(0.02)
|
|
|
(0.20)
|
|
|
(0.02)
|
|
|
(0.36)
|
|
|
(0.38)
|
|
Net income per diluted common share
|
|
$
|
1.86
|
|
|
$
|
1.87
|
|
|
$
|
2.01
|
|
|
$
|
5.51
|
|
|
$
|
4.75
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (in
millions) for:
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
582.3
|
|
|
581.5
|
|
|
578.3
|
|
|
581.4
|
|
|
555.0
|
|
Diluted EPS
|
|
591.1
|
|
|
588.8
|
|
|
584.1
|
|
|
589.0
|
|
|
560.1
|
|
Dividends paid per common share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
$
|
0.05
|
|
|
$
|
0.65
|
|
|
$
|
0.15
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 4:
Consolidated Balance Sheets(1)
|
|
|
|
September 30,
|
|
December 31,
|
|
September 30,
|
|
(Dollars in
millions)(unaudited)
|
|
2013
|
|
2012
|
|
2012
|
|
Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
2,855
|
|
|
$
|
3,440
|
|
|
$
|
1,855
|
|
Interest-bearing deposits with
banks
|
|
2,481
|
|
|
7,617
|
|
|
3,860
|
|
Federal funds sold and securities purchased under
agreements to resell
|
|
382
|
|
|
1
|
|
|
254
|
|
Total cash and cash equivalents
|
|
5,718
|
|
|
11,058
|
|
|
5,969
|
|
Restricted cash for securitization
investors
|
|
390
|
|
|
428
|
|
|
760
|
|
Securities available for sale, at fair
value
|
|
43,132
|
|
|
63,979
|
|
|
61,464
|
|
Securities held to maturity, at amortized
cost
|
|
18,276
|
|
|
9
|
|
|
—
|
|
Loans held for investment:
|
|
|
|
|
|
|
|
Unsecuritized loans held for
investment
|
|
152,332
|
|
|
162,059
|
|
|
159,219
|
|
Restricted loans for securitization
investors
|
|
39,482
|
|
|
43,830
|
|
|
43,913
|
|
Total loans held for investment
|
|
191,814
|
|
|
205,889
|
|
|
203,132
|
|
Less: Allowance for loan and lease
losses
|
|
(4,333)
|
|
|
(5,156)
|
|
|
(5,154)
|
|
Net loans held for investment
|
|
187,481
|
|
|
200,733
|
|
|
197,978
|
|
Loans held for sale, at lower of cost or fair
value
|
|
180
|
|
|
201
|
|
|
187
|
|
Premises and equipment, net
|
|
3,792
|
|
|
3,587
|
|
|
3,519
|
|
Interest receivable
|
|
1,304
|
|
|
1,694
|
|
|
1,614
|
|
Goodwill
|
|
13,906
|
|
|
13,904
|
|
|
13,901
|
|
Other
|
|
15,709
|
|
|
17,325
|
|
|
16,597
|
|
Total assets
|
|
$
|
289,888
|
|
|
$
|
312,918
|
|
|
$
|
301,989
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Interest payable
|
|
$
|
276
|
|
|
$
|
450
|
|
|
$
|
368
|
|
Customer deposits:
|
|
|
|
|
|
|
|
Non-interest bearing deposits
|
|
22,281
|
|
|
22,467
|
|
|
20,767
|
|
Interest-bearing deposits
|
|
184,553
|
|
|
190,018
|
|
|
192,488
|
|
Total customer deposits
|
|
206,834
|
|
|
212,485
|
|
|
213,255
|
|
Securitized debt obligations
|
|
9,544
|
|
|
11,398
|
|
|
12,686
|
|
Other debt:
|
|
|
|
|
|
|
|
Federal funds purchased and securities loaned or sold
under agreements to repurchase
|
|
1,686
|
|
|
1,248
|
|
|
967
|
|
Senior and subordinated notes
|
|
12,395
|
|
|
12,686
|
|
|
11,756
|
|
Other borrowings
|
|
8,220
|
|
|
24,578
|
|
|
12,968
|
|
Total other debt
|
|
22,301
|
|
|
38,512
|
|
|
25,691
|
|
Other liabilities
|
|
9,183
|
|
|
9,574
|
|
|
10,317
|
|
Total liabilities
|
|
248,138
|
|
|
272,419
|
|
|
262,317
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Preferred stock
|
|
—
|
|
|
—
|
|
|
853
|
|
Common stock
|
|
6
|
|
|
6
|
|
|
6
|
|
Additional paid-in capital, net
|
|
26,426
|
|
|
26,188
|
|
|
25,265
|
|
Retained earnings
|
|
19,731
|
|
|
16,853
|
|
|
16,054
|
|
Accumulated other comprehensive income
("AOCI")
|
|
(839)
|
|
|
739
|
|
|
781
|
|
Treasury stock, at cost
|
|
(3,574)
|
|
|
(3,287)
|
|
|
(3,287)
|
|
Total stockholders' equity
|
|
41,750
|
|
|
40,499
|
|
|
39,672
|
|
Total liabilities and stockholders'
equity
|
|
$
|
289,888
|
|
|
$
|
312,918
|
|
|
$
|
301,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 5: Notes to
Financial & Selected Metrics and Consolidated Financial
Statements (Tables 1 — 4)
|
|
(1)
|
Certain prior period
amounts have been reclassified to conform to the current period
presentation.
|
(2)
|
We recorded a benefit
for mortgage representation and warranty losses of $4 million in Q3
2013, and a provision for mortgage representation and warranty
losses of $183 million in Q2 2013. We did not record a provision
for mortgage representation and warranty losses in Q3 2012. The
majority of the provision for representation and warranty losses is
generally included net of tax in discontinued operations, with the
remaining amount included pre-tax in non-interest income. The
mortgage representation and warranty reserve was $1.2 billion as of
September 30, 2013, $899 million as of December 31, 2012, and $919
million as of September 30, 2012.
|
(3)
|
Total net revenue was
reduced by $154 million in Q3 2013, $192 million in Q2 2013, and
$185 million in Q3 2012 for the estimated uncollectible amount of
billed finance charges and fees.
|
(4)
|
Includes purchased
credit card relationship ("PCCR") intangible amortization of $106
million in Q32013, $110 million in Q2 2013, and $131 million in Q3
2012, the substantial majority which is attributable to the 2012
U.S. card acquisition. See "Table 8: Financial & Statistical
Summary Credit Card Business". Includes core deposit intangible
amortization of $40 million in Q3 2013, $43 million in Q2 2013, and
$49 million in Q3 2012.
|
(5)
|
Acquisition-related
costs include transaction costs, legal and other professional or
consulting fees, restructuring costs, and integration
expense.
|
(6)
|
Dividends and
undistributed earnings allocated to participating securities and
EPS are computed independently for each period. Accordingly, the
sum of each quarter may not agree to the year-to-date
total.
|
(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 Under Basel I" for additional
information.
|
(8)
|
Loans held for
investment includes acquired loans accounted for based on cash
flows expected to be collected. We use the term "acquired loans" to
refer to a limited portion of the credit card loans acquired in the
2012 U.S. card acquisition and the substantial majority of loans
acquired in the ING Direct and Chevy Chase Bank ("CCB")
acquisitions, which were recorded at fair value at acquisition and
subsequently accounted for based on estimated cash flows expected
to be collected over the life of the loans (under the accounting
standard formerly known as "SOP 03-3"). See "Table 12: Notes to
Loan and Business Segment Disclosures (Tables 7 - 11)" for
information on the amount of acquired loans for each of the periods
presented.
|
(9)
|
Calculated based on
annualized total net 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 income from continuing operations, net of tax, for the
period divided by average total assets for the period.
|
(12)
|
Calculated based on
annualized income from continuing operations, net of tax, for the
period divided by average tangible assets for the period. See
"Table 13: Reconciliation of Non-GAAP Measures and Calculation of
Regulatory Capital Measures Under Basel I" for additional
information.
|
(13)
|
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. Our calculation of
return on average common equity may not be comparable to similarly
titled measures reported by other companies.
|
(14)
|
Calculated as 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. Our
calculation of return on average tangible common equity may not be
comparable to similarly titled measures reported by other
companies. See "Table 13: Reconciliation of Non-GAAP Measures and
Calculation of Regulatory Capital Measures Under Basel I" for
additional information.
|
(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, excluding goodwill impairment charges, for
the period divided by total net revenue for the period.
|
(17)
|
Calculated based on
annualized net charge-offs for the period divided by average loans
held for investment for the period.
|
(18)
|
The 30+ day
delinquency rate as of the end of Q3 2013 will be provided in the
Quarterly Report on Form 10-Q for the period ended September 30,
2013.
|
(19)
|
Capital ratios are
calculated under Basel I. Ratios as of the end of Q3 2013 are
preliminary and therefore subject to change. TCE ratio is a
non-GAAP capital ratio. See "Table 13: Reconciliation of Non-GAAP
Measures and Calculation of Regulatory Capital Measures Under Basel
I" for information on the calculation of each of these
ratios.
|
(20)
|
A bargain purchase
gain of $594 million was recognized in earnings in Q1 2012
attributable to the February 17, 2012 acquisition of ING Direct.
The bargain purchase gain represents the excess of the fair value
of the net assets acquired in the ING Direct acquisition as of the
acquisition date over the consideration transferred.
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 6: Average
Balances, Net Interest Income and Net Interest
Margin(1)
|
|
|
|
2013 Q3
|
|
|
2013 Q2
|
|
|
|
2012 Q3
|
|
|
|
|
Average Balance
|
|
Interest
Income/Expense(2)
|
|
Yield/Rate(2)
|
|
|
Average Balance
|
|
Interest
Income/Expense(2)
|
|
Yield/Rate(2)
|
|
|
Average Balance
|
|
Interest
Income/Expense(2)
|
|
Yield/Rate(2)
|
|
(Dollars in
millions)(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including loans held for
sale
|
|
$
|
195,839
|
|
|
$
|
4,579
|
|
|
9.35
|
%
|
|
$
|
196,874
|
|
|
$
|
4,596
|
|
|
9.34
|
|
%
|
|
$
|
203,463
|
|
|
$
|
4,903
|
|
|
9.64
|
|
%
|
Investment securities(3)
|
|
63,317
|
|
|
396
|
|
|
2.50
|
|
|
63,907
|
|
|
391
|
|
|
2.45
|
|
|
|
57,928
|
|
|
335
|
|
|
2.31
|
|
|
Cash equivalents and other
|
|
5,640
|
|
|
23
|
|
|
1.63
|
|
|
5,763
|
|
|
23
|
|
|
1.60
|
|
|
|
5,412
|
|
|
16
|
|
|
1.18
|
|
|
Total interest-earning assets
|
|
$
|
264,796
|
|
|
$
|
4,998
|
|
|
7.55
|
%
|
|
$
|
266,544
|
|
|
$
|
5,010
|
|
|
7.52
|
|
%
|
|
$
|
266,803
|
|
|
$
|
5,254
|
|
|
7.88
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
|
$
|
186,752
|
|
|
$
|
309
|
|
|
0.66
|
%
|
|
$
|
189,311
|
|
|
$
|
318
|
|
|
0.67
|
|
%
|
|
$
|
193,700
|
|
|
$
|
371
|
|
|
0.77
|
|
%
|
Securitized debt obligations
|
|
10,243
|
|
|
42
|
|
|
1.64
|
|
|
10,942
|
|
|
45
|
|
|
1.65
|
|
|
|
13,331
|
|
|
64
|
|
|
1.92
|
|
|
Senior and subordinated notes
|
|
12,314
|
|
|
76
|
|
|
2.47
|
|
|
12,692
|
|
|
82
|
|
|
2.58
|
|
|
|
11,035
|
|
|
85
|
|
|
3.08
|
|
|
Other borrowings
|
|
13,798
|
|
|
11
|
|
|
0.32
|
|
|
13,281
|
|
|
12
|
|
|
0.36
|
|
|
|
12,085
|
|
|
88
|
|
|
2.91
|
|
|
Total interest-bearing liabilities
|
|
$
|
223,107
|
|
|
$
|
438
|
|
|
0.79
|
%
|
|
$
|
226,226
|
|
|
$
|
457
|
|
|
0.81
|
|
%
|
|
$
|
230,151
|
|
|
$
|
608
|
|
|
1.06
|
|
%
|
Net interest income/spread
|
|
|
|
$
|
4,560
|
|
|
6.76
|
%
|
|
|
|
$
|
4,553
|
|
|
6.71
|
|
%
|
|
|
|
$
|
4,646
|
|
|
6.82
|
|
%
|
Impact of non-interest bearing
funding
|
|
|
|
|
|
0.13
|
|
|
|
|
|
|
0.12
|
|
|
|
|
|
|
|
0.15
|
|
|
Net interest margin
|
|
|
|
|
|
6.89
|
%
|
|
|
|
|
|
6.83
|
|
%
|
|
|
|
|
|
6.97
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
|
|
Interest
Income/Expense(2)
|
|
Yield/Rate(2)
|
|
|
Average Balance
|
|
Interest
Income/Expense(2)
|
|
Yield/Rate(2)
|
|
(Dollars in
millions)(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including loans held for
sale
|
|
|
|
|
|
|
|
|
$
|
197,701
|
|
|
$
|
13,824
|
|
|
9.32
|
%
|
|
$
|
183,542
|
|
|
$
|
12,817
|
|
|
9.31
|
|
%
|
Investment securities(3)
|
|
|
|
|
|
|
|
|
63,725
|
|
|
1,161
|
|
|
2.43
|
|
|
55,158
|
|
|
968
|
|
|
2.34
|
|
|
Cash equivalents and other
|
|
|
|
|
|
|
|
|
6,164
|
|
|
74
|
|
|
1.60
|
|
|
8,762
|
|
|
64
|
|
|
0.97
|
|
|
Total interest-earning assets
|
|
|
|
|
|
|
|
|
$
|
267,590
|
|
|
$
|
15,059
|
|
|
7.50
|
%
|
|
$
|
247,462
|
|
|
$
|
13,849
|
|
|
7.46
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
$
|
188,877
|
|
|
$
|
953
|
|
|
0.67
|
%
|
|
$
|
180,372
|
|
|
$
|
1,055
|
|
|
0.78
|
|
%
|
Securitized debt obligations
|
|
|
|
|
|
|
|
|
10,975
|
|
|
143
|
|
|
1.74
|
|
|
14,816
|
|
|
213
|
|
|
1.92
|
|
|
Senior and subordinated notes
|
|
|
|
|
|
|
|
|
12,331
|
|
|
240
|
|
|
2.60
|
|
|
10,839
|
|
|
260
|
|
|
3.20
|
|
|
Other borrowings
|
|
|
|
|
|
|
|
|
14,955
|
|
|
40
|
|
|
0.36
|
|
|
10,301
|
|
|
260
|
|
|
3.37
|
|
|
Total interest-bearing liabilities
|
|
|
|
|
|
|
|
|
$
|
227,138
|
|
|
$
|
1,376
|
|
|
0.81
|
%
|
|
$
|
216,328
|
|
|
$
|
1,788
|
|
|
1.10
|
|
%
|
Net interest income/spread
|
|
|
|
|
|
|
|
|
|
|
$
|
13,683
|
|
|
6.69
|
%
|
|
|
|
$
|
12,061
|
|
|
6.36
|
|
%
|
Impact of non-interest bearing
funding
|
|
|
|
|
|
|
|
|
|
|
|
|
0.13
|
|
|
|
|
|
|
0.14
|
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
|
|
|
|
6.82
|
%
|
|
|
|
|
|
6.50
|
|
%
|
|
(1) Certain
prior period amounts have been reclassified to conform to the
current period presentation.
|
(2) 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.
|
(3) Prior to
Q2 2013, average balances for investment securities were calculated
based on fair value amounts. Effective Q2 2013, average balances
are calculated based on the amortized cost of investment
securities. The impact of this change on prior period yields is not
material.
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
|
Table 7: Loan
Information and Performance
Statistics(1)(2)
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
(Dollars in
millions)(unaudited)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Period-end Loans Held For
Investment
|
|
|
|
|
|
|
|
Credit card:
|
|
|
|
|
|
|
|
Domestic credit card
|
|
$
|
69,936
|
|
|
$
|
70,490
|
|
|
$
|
80,621
|
|
|
International credit card
|
|
8,031
|
|
|
7,820
|
|
|
8,412
|
|
|
Total credit card
|
|
77,967
|
|
|
78,310
|
|
|
89,033
|
|
|
Consumer banking:
|
|
|
|
|
|
|
|
Automobile
|
|
30,803
|
|
|
29,369
|
|
|
26,434
|
|
|
Home loan
|
|
36,817
|
|
|
39,163
|
|
|
46,275
|
|
|
Retail banking
|
|
3,665
|
|
|
3,686
|
|
|
4,029
|
|
|
Total consumer banking
|
|
71,285
|
|
|
72,218
|
|
|
76,738
|
|
|
Commercial banking:
|
|
|
|
|
|
|
|
Commercial and multifamily real
estate
|
|
19,523
|
|
|
18,570
|
|
|
16,963
|
|
|
Commercial and industrial
|
|
21,848
|
|
|
21,170
|
|
|
18,965
|
|
|
Total commercial lending
|
|
41,371
|
|
|
39,740
|
|
|
35,928
|
|
|
Small-ticket commercial real estate
|
|
1,028
|
|
|
1,065
|
|
|
1,281
|
|
|
Total commercial banking
|
|
42,399
|
|
|
40,805
|
|
|
37,209
|
|
|
Other loans
|
|
163
|
|
|
179
|
|
|
152
|
|
|
Total
|
|
$
|
191,814
|
|
|
$
|
191,512
|
|
|
$
|
203,132
|
|
|
Average Loans Held For
Investment
|
|
|
|
|
|
|
|
Credit card:
|
|
|
|
|
|
|
|
Domestic credit card
|
|
$
|
69,947
|
|
|
$
|
69,966
|
|
|
$
|
80,502
|
|
|
International credit card
|
|
7,782
|
|
|
7,980
|
|
|
8,154
|
|
|
Total credit card
|
|
77,729
|
|
|
77,946
|
|
|
88,656
|
|
|
Consumer banking:
|
|
|
|
|
|
|
|
Automobile
|
|
30,157
|
|
|
28,677
|
|
|
25,923
|
|
|
Home loan
|
|
37,852
|
|
|
40,532
|
|
|
47,262
|
|
|
Retail banking
|
|
3,655
|
|
|
3,721
|
|
|
4,086
|
|
|
Total consumer banking
|
|
71,664
|
|
|
72,930
|
|
|
77,271
|
|
|
Commercial banking:
|
|
|
|
|
|
|
|
Commercial and multifamily real
estate
|
|
19,047
|
|
|
18,084
|
|
|
16,654
|
|
|
Commercial and industrial
|
|
21,491
|
|
|
20,332
|
|
|
18,817
|
|
|
Total commercial lending
|
|
40,538
|
|
|
38,416
|
|
|
35,471
|
|
|
Small-ticket commercial real estate
|
|
1,038
|
|
|
1,096
|
|
|
1,296
|
|
|
Total commercial banking
|
|
41,576
|
|
|
39,512
|
|
|
36,767
|
|
|
Other loans
|
|
166
|
|
|
174
|
|
|
162
|
|
|
Total
|
|
$
|
191,135
|
|
|
$
|
190,562
|
|
|
$
|
202,856
|
|
|
Net Charge-off Rates
|
|
|
|
|
|
|
|
Credit card:
|
|
|
|
|
|
|
|
Domestic credit card
|
|
3.67
|
|
%
|
4.28
|
|
%
|
3.04
|
|
%
|
International credit card
|
|
4.71
|
|
|
5.08
|
|
|
4.95
|
|
|
Total credit card
|
|
3.78
|
|
|
4.36
|
|
|
3.22
|
|
|
Consumer banking:
|
|
|
|
|
|
|
|
Automobile
|
|
2.01
|
|
|
1.28
|
|
|
1.79
|
|
|
Home loan
|
|
0.06
|
|
|
0.03
|
|
|
0.28
|
|
|
Retail banking
|
|
1.38
|
|
|
1.50
|
|
|
1.20
|
|
|
Total consumer banking
|
|
0.95
|
|
|
0.60
|
|
|
0.83
|
|
|
Commercial banking:
|
|
|
|
|
|
|
|
Commercial and multifamily real
estate
|
|
(0.11)
|
|
|
0.04
|
|
|
(0.05)
|
|
|
Commercial and industrial
|
|
0.18
|
|
|
0.03
|
|
|
—
|
|
|
Total commercial lending
|
|
0.04
|
|
|
0.03
|
|
|
(0.03)
|
|
|
Small-ticket commercial real estate
|
|
1.26
|
|
|
0.45
|
|
|
0.79
|
|
|
Total commercial banking
|
|
0.07
|
|
|
0.04
|
|
|
—
|
|
|
Other loans
|
|
12.17
|
|
|
13.10
|
|
|
30.11
|
|
|
Total
|
|
1.92
|
|
%
|
2.03
|
|
%
|
1.75
|
|
%
|
30+ Day Performing Delinquency
Rates
|
|
|
|
|
|
|
|
Credit card:
|
|
|
|
|
|
|
|
Domestic credit card
|
|
3.46
|
|
%
|
3.05
|
|
%
|
3.52
|
|
%
|
International credit card
|
|
3.86
|
|
|
3.84
|
|
|
4.92
|
|
|
Total credit card
|
|
3.51
|
|
%
|
3.13
|
|
%
|
3.65
|
|
%
|
Consumer banking:
|
|
|
|
|
|
|
|
Automobile
|
|
6.29
|
|
%
|
6.03
|
|
%
|
6.12
|
|
%
|
Home loan
|
|
0.14
|
|
|
0.12
|
|
|
0.15
|
|
|
Retail banking
|
|
0.68
|
|
|
0.68
|
|
|
0.73
|
|
|
Total consumer banking
|
|
2.82
|
|
%
|
2.55
|
|
%
|
2.23
|
|
%
|
Nonperforming Asset
Rates(3)
|
|
|
|
|
|
|
|
Credit card:
|
|
|
|
|
|
|
|
International credit card
|
|
1.16
|
|
%
|
1.20
|
|
%
|
—
|
|
%
|
Total credit card
|
|
0.12
|
|
%
|
0.12
|
|
%
|
—
|
|
%
|
Consumer banking:
|
|
|
|
|
|
|
|
Automobile
|
|
0.58
|
|
%
|
0.50
|
|
%
|
0.52
|
|
%
|
Home loan
|
|
1.08
|
|
|
1.08
|
|
|
0.98
|
|
|
Retail banking
|
|
1.10
|
|
|
1.11
|
|
|
2.25
|
|
|
Total consumer banking
|
|
0.87
|
|
%
|
0.84
|
|
%
|
0.89
|
|
%
|
Commercial banking:
|
|
|
|
|
|
|
|
Commercial and multifamily real
estate
|
|
0.40
|
|
%
|
0.56
|
|
%
|
1.04
|
|
%
|
Commercial and industrial
|
|
0.65
|
|
|
0.65
|
|
|
0.68
|
|
|
Total commercial lending
|
|
0.53
|
|
%
|
0.61
|
|
%
|
0.85
|
|
%
|
Small-ticket commercial real estate
|
|
1.49
|
|
|
1.11
|
|
|
1.49
|
|
|
Total commercial banking
|
|
0.56
|
|
%
|
0.62
|
|
%
|
0.87
|
|
%
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
|
Table 8: Financial
& Statistical Summary—Credit Card
Business(1)(2)
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
(Dollars in millions)
(unaudited)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Credit Card
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
2,757
|
|
|
$
|
2,804
|
|
|
$
|
2,991
|
|
|
Non-interest income
|
|
834
|
|
|
832
|
|
|
826
|
|
|
Total net revenue
|
|
3,591
|
|
|
3,636
|
|
|
3,817
|
|
|
Provision for credit losses
|
|
617
|
|
|
713
|
|
|
892
|
|
|
Non-interest expense
|
|
1,904
|
|
|
1,819
|
|
|
1,790
|
|
|
Income (loss) from continuing operations before
taxes
|
|
1,070
|
|
|
1,104
|
|
|
1,135
|
|
|
Income tax provision (benefit)
|
|
376
|
|
|
385
|
|
|
394
|
|
|
Income (loss) from continuing operations, net of
tax
|
|
$
|
694
|
|
|
$
|
719
|
|
|
$
|
741
|
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
Period-end loans held for
investment
|
|
$
|
77,967
|
|
|
$
|
78,310
|
|
|
$
|
89,033
|
|
|
Average loans held for investment
|
|
77,729
|
|
|
77,946
|
|
|
88,656
|
|
|
Average yield on loans held for
investment(4)
|
|
15.72
|
|
%
|
15.94
|
|
%
|
15.03
|
|
%
|
Total net revenue
margin(5)
|
|
18.48
|
|
|
18.66
|
|
|
17.22
|
|
|
Net charge-off rate
|
|
3.78
|
|
|
4.36
|
|
|
3.22
|
|
|
30+ day performing delinquency rate
|
|
3.51
|
|
|
3.13
|
|
|
3.65
|
|
|
30+ day delinquency
rate(6)
|
|
**
|
|
3.22
|
|
|
3.65
|
|
|
Nonperforming loan
rate(3)
|
|
0.12
|
|
|
0.12
|
|
|
—
|
|
|
Card loan premium amortization and other intangible
accretion(7)
|
|
$
|
45
|
|
|
$
|
57
|
|
|
$
|
82
|
|
|
PCCR intangible amortization
|
|
106
|
|
|
110
|
|
|
131
|
|
|
Purchase volume(8)
|
|
50,943
|
|
|
50,788
|
|
|
48,020
|
|
|
Domestic Card
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
2,492
|
|
|
$
|
2,536
|
|
|
$
|
2,715
|
|
|
Non-interest income
|
|
749
|
|
|
737
|
|
|
722
|
|
|
Total net revenue
|
|
3,241
|
|
|
3,273
|
|
|
3,437
|
|
|
Provision for credit losses
|
|
529
|
|
|
647
|
|
|
811
|
|
|
Non-interest expense
|
|
1,713
|
|
|
1,635
|
|
|
1,584
|
|
|
Income (loss) from continuing operations before
taxes
|
|
999
|
|
|
991
|
|
|
1,042
|
|
|
Income tax provision (benefit)
|
|
355
|
|
|
353
|
|
|
369
|
|
|
Income (loss) from continuing operations, net of
tax
|
|
$
|
644
|
|
|
$
|
638
|
|
|
$
|
673
|
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
Period-end loans held for
investment
|
|
$
|
69,936
|
|
|
$
|
70,490
|
|
|
$
|
80,621
|
|
|
Average loans held for investment
|
|
69,947
|
|
|
69,966
|
|
|
80,502
|
|
|
Average yield on loans held for
investment(4)
|
|
15.65
|
|
%
|
15.91
|
|
%
|
14.88
|
|
%
|
Total net revenue
margin(5)
|
|
18.53
|
|
|
18.71
|
|
|
17.08
|
|
|
Net charge-off rate
|
|
3.67
|
|
|
4.28
|
|
|
3.04
|
|
|
30+ day performing delinquency rate
|
|
3.46
|
|
|
3.05
|
|
|
3.52
|
|
|
30+ day delinquency
rate(6)
|
|
**
|
|
3.05
|
|
|
3.52
|
|
|
Purchase volume(8)
|
|
$
|
47,420
|
|
|
$
|
47,273
|
|
|
$
|
44,552
|
|
|
International Card
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
265
|
|
|
$
|
268
|
|
|
$
|
276
|
|
|
Non-interest income
|
|
85
|
|
|
95
|
|
|
104
|
|
|
Total net revenue
|
|
350
|
|
|
363
|
|
|
380
|
|
|
Provision for credit losses
|
|
88
|
|
|
66
|
|
|
81
|
|
|
Non-interest expense
|
|
191
|
|
|
184
|
|
|
206
|
|
|
Income (loss) from continuing operations before
taxes
|
|
71
|
|
|
113
|
|
|
93
|
|
|
Income tax provision (benefit)
|
|
21
|
|
|
32
|
|
|
25
|
|
|
Income (loss) from continuing operations, net of
tax
|
|
$
|
50
|
|
|
$
|
81
|
|
|
$
|
68
|
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
Period-end loans held for
investment
|
|
$
|
8,031
|
|
|
$
|
7,820
|
|
|
$
|
8,412
|
|
|
Average loans held for investment
|
|
7,782
|
|
|
7,980
|
|
|
8,154
|
|
|
Average yield on loans held for
investment
|
|
16.35
|
|
%
|
16.19
|
|
%
|
16.47
|
|
%
|
Total net revenue margin
|
|
17.99
|
|
|
18.20
|
|
|
18.64
|
|
|
Net charge-off rate
|
|
4.71
|
|
|
5.08
|
|
|
4.95
|
|
|
30+ day performing delinquency rate
|
|
3.86
|
|
|
3.84
|
|
|
4.92
|
|
|
30+ day delinquency
rate(6)
|
|
**
|
|
4.79
|
|
|
4.92
|
|
|
Nonperforming loan
rate(3)
|
|
1.16
|
|
|
1.20
|
|
|
—
|
|
|
Purchase volume(8)
|
|
$
|
3,523
|
|
|
$
|
3,515
|
|
|
$
|
3,468
|
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
|
Table 9: Financial
& Statistical Summary—Consumer Banking
Business(1)(2)
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
(Dollars in millions)
(unaudited)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Consumer Banking
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
1,481
|
|
|
$
|
1,478
|
|
|
$
|
1,501
|
|
|
Non-interest income
|
|
184
|
|
|
189
|
|
|
260
|
|
|
Total net revenue
|
|
1,665
|
|
|
1,667
|
|
|
1,761
|
|
|
Provision for credit losses
|
|
202
|
|
|
67
|
|
|
202
|
|
|
Non-interest expense
|
|
927
|
|
|
910
|
|
|
977
|
|
|
Income from continuing operations before
taxes
|
|
536
|
|
|
690
|
|
|
582
|
|
|
Income tax provision
|
|
191
|
|
|
246
|
|
|
206
|
|
|
Income from continuing operations, net of
tax
|
|
$
|
345
|
|
|
$
|
444
|
|
|
$
|
376
|
|
|
|
|
|
|
|
|
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
Period-end loans held for
investment
|
|
$
|
71,285
|
|
|
$
|
72,218
|
|
|
$
|
76,738
|
|
|
Average loans held for investment
|
|
71,664
|
|
|
72,930
|
|
|
77,271
|
|
|
Average yield on loans held for
investment
|
|
6.21
|
|
%
|
5.99
|
|
%
|
6.05
|
|
%
|
Auto loan originations
|
|
$
|
4,752
|
|
|
$
|
4,525
|
|
|
$
|
3,905
|
|
|
Period-end deposits
|
|
168,437
|
|
|
169,789
|
|
|
173,100
|
|
|
Average deposits
|
|
169,082
|
|
|
170,733
|
|
|
173,334
|
|
|
Deposit interest expense rate
|
|
0.63
|
|
%
|
0.64
|
|
%
|
0.71
|
|
%
|
Core deposit intangible
amortization
|
|
$
|
34
|
|
|
$
|
35
|
|
|
$
|
41
|
|
|
Net charge-off rate
|
|
0.95
|
|
%
|
0.60
|
|
%
|
0.83
|
|
%
|
30+ day performing delinquency rate
|
|
2.82
|
|
|
2.55
|
|
|
2.23
|
|
|
30+ day delinquency
rate(6)
|
|
**
|
|
3.15
|
|
|
2.91
|
|
|
Nonperforming loan rate
|
|
0.79
|
|
|
0.78
|
|
|
0.84
|
|
|
Nonperforming asset
rate(3)
|
|
0.87
|
|
|
0.84
|
|
|
0.89
|
|
|
Period-end loans serviced for
others
|
|
$
|
14,043
|
|
|
$
|
14,313
|
|
|
$
|
15,659
|
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
|
Table 10:
Financial & Statistical Summary—Commercial Banking
Business(1)(2)
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
(Dollars in millions)
(unaudited)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Commercial Banking
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
480
|
|
|
$
|
457
|
|
|
$
|
432
|
|
|
Non-interest income
|
|
87
|
|
|
93
|
|
|
87
|
|
|
Total net revenue(9)
|
|
567
|
|
|
550
|
|
|
519
|
|
|
Provision for credit losses
|
|
31
|
|
|
(14)
|
|
|
(87)
|
|
|
Non-interest expense
|
|
266
|
|
|
269
|
|
|
253
|
|
|
Income from continuing operations before
taxes
|
|
270
|
|
|
295
|
|
|
353
|
|
|
Income tax provision
|
|
96
|
|
|
105
|
|
|
125
|
|
|
Income from continuing operations, net of
tax
|
|
$
|
174
|
|
|
$
|
190
|
|
|
$
|
228
|
|
|
|
|
|
|
|
|
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
Period-end loans held for
investment
|
|
$
|
42,399
|
|
|
$
|
40,805
|
|
|
$
|
37,209
|
|
|
Average loans held for investment
|
|
41,576
|
|
|
39,512
|
|
|
36,767
|
|
|
Average yield on loans held for
investment
|
|
3.87
|
|
%
|
3.84
|
|
%
|
4.14
|
|
%
|
Period-end deposits
|
|
$
|
30,592
|
|
|
$
|
30,869
|
|
|
$
|
28,670
|
|
|
Average deposits
|
|
30,685
|
|
|
30,746
|
|
|
28,063
|
|
|
Deposit interest expense rate
|
|
0.27
|
|
%
|
0.26
|
|
%
|
0.31
|
|
%
|
Core deposit intangible
amortization
|
|
$
|
6
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
Net charge-off rate
|
|
0.07
|
|
%
|
0.04
|
|
%
|
—
|
|
%
|
Nonperforming loan rate
|
|
0.47
|
|
|
0.60
|
|
|
0.82
|
|
|
Nonperforming asset
rate(3)
|
|
0.56
|
|
|
0.62
|
|
|
0.87
|
|
|
|
|
|
|
|
|
|
|
Risk category:(10)
|
|
|
|
|
|
|
|
Noncriticized
|
|
$
|
40,940
|
|
|
$
|
39,168
|
|
|
$
|
35,112
|
|
|
Criticized performing
|
|
968
|
|
|
1,087
|
|
|
1,394
|
|
|
Criticized nonperforming
|
|
201
|
|
|
244
|
|
|
305
|
|
|
Total risk-rated
loans
|
|
42,109
|
|
|
40,499
|
|
|
36,811
|
|
|
Acquired commercial loans
|
|
290
|
|
|
306
|
|
|
398
|
|
|
Total commercial
loans
|
|
$
|
42,399
|
|
|
$
|
40,805
|
|
|
$
|
37,209
|
|
|
|
|
|
|
|
|
|
|
% of period-end commercial loans held for
investment:
|
|
|
|
|
|
|
|
Noncriticized
|
|
96.5
|
|
%
|
96.0
|
|
%
|
94.4
|
|
%
|
Criticized performing
|
|
2.3
|
|
|
2.7
|
|
|
3.7
|
|
|
Criticized nonperforming
|
|
0.5
|
|
|
0.6
|
|
|
0.8
|
|
|
Total risk-rated
loans
|
|
99.3
|
|
|
99.3
|
|
|
98.9
|
|
|
Acquired commercial loans
|
|
0.7
|
|
|
0.7
|
|
|
1.1
|
|
|
Total commercial
loans
|
|
100.0
|
|
%
|
100.0
|
|
%
|
100.0
|
|
%
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
|
|
|
Table 11:
Financial & Statistical Summary—Other and
Total(1)(2)
|
|
|
|
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
(Dollars in millions)
(unaudited)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Other
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
Net interest expense
|
|
$
|
(158)
|
|
|
$
|
(186)
|
|
|
$
|
(278)
|
|
|
Non-interest income
|
|
(14)
|
|
|
(29)
|
|
|
(37)
|
|
|
Total net revenue
|
|
(172)
|
|
|
(215)
|
|
|
(315)
|
|
|
Provision for credit losses
|
|
(1)
|
|
|
(4)
|
|
|
7
|
|
|
Non-interest expense
|
|
50
|
|
|
61
|
|
|
25
|
|
|
Income (loss) from continuing operations before
taxes
|
|
(221)
|
|
|
(272)
|
|
|
(347)
|
|
|
Income tax benefit
|
|
(138)
|
|
|
(155)
|
|
|
(190)
|
|
|
Income (loss) from continuing operations, net of
tax
|
|
$
|
(83)
|
|
|
$
|
(117)
|
|
|
$
|
(157)
|
|
|
|
|
|
|
|
|
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
Period-end loans held for
investment
|
|
$
|
163
|
|
|
$
|
179
|
|
|
$
|
152
|
|
|
Average loans held for investment
|
|
166
|
|
|
174
|
|
|
162
|
|
|
Period-end deposits
|
|
7,805
|
|
|
9,207
|
|
|
11,485
|
|
|
Average deposits
|
|
8,573
|
|
|
9,171
|
|
|
11,926
|
|
|
Total
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
4,560
|
|
|
$
|
4,553
|
|
|
$
|
4,646
|
|
|
Non-interest income
|
|
1,091
|
|
|
1,085
|
|
|
1,136
|
|
|
Total net revenue
|
|
5,651
|
|
|
5,638
|
|
|
5,782
|
|
|
Provision for credit losses
|
|
849
|
|
|
762
|
|
|
1,014
|
|
|
Non-interest expense
|
|
3,147
|
|
|
3,059
|
|
|
3,045
|
|
|
Income from continuing operations before
taxes
|
|
1,655
|
|
|
1,817
|
|
|
1,723
|
|
|
Income tax provision
|
|
525
|
|
|
581
|
|
|
535
|
|
|
Income from continuing operations, net of
tax
|
|
$
|
1,130
|
|
|
$
|
1,236
|
|
|
$
|
1,188
|
|
|
|
|
|
|
|
|
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
Period-end loans held for
investment
|
|
$
|
191,814
|
|
|
$
|
191,512
|
|
|
$
|
203,132
|
|
|
Average loans held for investment
|
|
191,135
|
|
|
190,562
|
|
|
202,856
|
|
|
Period-end deposits
|
|
206,834
|
|
|
209,865
|
|
|
213,255
|
|
|
Average deposits
|
|
208,340
|
|
|
210,650
|
|
|
213,323
|
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 12: Notes to
Loan and Business Segment Disclosures (Tables 7 —
11)
|
|
(1) Certain
prior period amounts have been reclassified to conform to the
current period presentation.
|
(2) Loans
acquired as part of the ING Direct, CCB, and the 2012 U.S. card
acquisitions are included in the denominator used in calculating
our reported credit quality metrics. We therefore present certain
reported credit quality metrics, adjusted to exclude from the
denominator acquired loans accounted for based on estimated cash
flows expected to be collected over the life of the loans (formerly
SOP 03-3). The table below presents amounts related to acquired
loans accounted for under SOP 03-3.
|
|
|
|
2013
|
|
2013
|
|
2012
|
(Dollars in millions)
(unaudited)
|
|
Q3
|
|
Q2
|
|
Q3
|
Acquired loans accounted for under SOP
03-3:
|
|
|
|
|
|
|
Period-end unpaid principal balance
|
|
$
|
31,377
|
|
|
$
|
33,620
|
|
|
$
|
40,749
|
|
Period-end loans held for
investment
|
|
30,080
|
|
|
32,275
|
|
|
39,388
|
|
Average loans held for investment
|
|
30,713
|
|
|
33,144
|
|
|
40,158
|
|
|
|
|
|
|
|
|
|
|
|
(3) 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. The nonperforming loan ratios are
calculated based on nonperforming loans for each category divided
by period-end loans held for investment for each respective
category.
|
(4) The
transfer of the Best Buy Stores, L.P. ("Best Buy") portfolio to
held for sale resulted in an increase in the average yield for
Domestic Card and Total Card of 121 basis points and 110 basis
points, respectively, in Q3 2013 and 168 basis points and 152 basis
points, respectively, in Q2 2013. The sale of the Best Buy
portfolio to Citi Bank, N.A was completed on September 6,
2013.
|
(5) The
transfer of the Best Buy portfolio to held for sale resulted in an
increase in the net revenue margin for Domestic Card and Total Card
of 136 basis points and 123 basis points, respectively, in Q3 2013
and 188 basis points and 169 basis points, respectively, in Q2
2013. The sale of the Best Buy portfolio to Citi Bank, N.A was
completed on September 6, 2013.
|
(6) The 30+
day delinquency rate as of the end of Q3 2013 will be provided in
our Quarterly Report on Form 10-Q for the period ended September
30, 2013.
|
(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 2012 U.S. card acquisition.
|
(8) Includes
credit card purchase transactions, net of returns. Excludes cash
advance transactions.
|
(9) Because
some of our tax-related commercial investments generate tax-exempt
income or tax credits, we make certain reclassifications within our
Commercial Banking business results to present revenues on a
taxable-equivalent basis, calculated assuming an effective tax rate
approximately equal to our federal statutory tax rate of
35%.
|
(10) Criticized exposures correspond to the "Special
Mention," "Substandard" and "Doubtful" asset categories defined by
bank regulatory authorities.
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 13:
Reconciliation of Non-GAAP Measures and Calculation of Regulatory
Capital Measures Under Basel I
|
|
In addition to disclosing regulatory capital measures
under Basel I, we also report certain non-GAAP capital measures
that management uses in assessing its capital adequacy. These
non-GAAP measures include average tangible assets, average tangible
common equity, tangible common equity ("TCE") and TCE ratio. The
table below provides the details of the calculation of our Basel I
regulatory capital and non-GAAP capital measures. 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.
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
(Dollars in
millions)(unaudited)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Average Equity to Non-GAAP Average Tangible Common
Equity
|
|
|
|
|
|
|
|
Average total stockholders' equity
|
|
$
|
41,284
|
|
|
$
|
41,579
|
|
|
$
|
38,535
|
|
|
Adjustments:
Average goodwill and other intangible assets
(1)
|
|
(15,829)
|
|
|
(15,974)
|
|
|
(16,408)
|
|
|
Noncumulative perpetual preferred
stock(2)
|
|
(853)
|
|
|
(853)
|
|
|
(456)
|
|
|
Average tangible common
equity(3)
|
|
$
|
24,602
|
|
|
$
|
24,752
|
|
|
$
|
21,671
|
|
|
Stockholders' Equity to Non-GAAP Tangible Common
Equity
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
$
|
41,750
|
|
|
$
|
41,041
|
|
|
$
|
39,672
|
|
|
Adjustments:
Goodwill and other intangible assets
(1)
|
|
(15,760)
|
|
|
(15,872)
|
|
|
(16,323)
|
|
|
Noncumulative perpetual preferred
stock(2)
|
|
(853)
|
|
|
(853)
|
|
|
(853)
|
|
|
Tangible common
equity(3)
|
|
$
|
25,137
|
|
|
$
|
24,316
|
|
|
$
|
22,496
|
|
|
Total Assets to Tangible Assets
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
289,888
|
|
|
$
|
296,542
|
|
|
$
|
301,989
|
|
|
Adjustments:
Goodwill and other intangible
assets(1)
|
|
(15,760)
|
|
|
(15,872)
|
|
|
(16,323)
|
|
|
Tangible assets
|
|
$
|
274,128
|
|
|
$
|
280,670
|
|
|
$
|
285,666
|
|
|
Total Average Assets to Average Tangible
Assets
|
|
|
|
|
|
|
|
Average total assets
|
|
$
|
294,939
|
|
|
$
|
297,766
|
|
|
$
|
297,154
|
|
|
Adjustments:
Average goodwill and other intangible assets
(1)
|
|
(15,829)
|
|
|
(15,974)
|
|
|
(16,408)
|
|
|
Average tangible assets
|
|
$
|
279,110
|
|
|
$
|
281,792
|
|
|
$
|
280,746
|
|
|
Non-GAAP TCE Ratio
|
|
|
|
|
|
|
|
Tangible common
equity(3)
|
|
$
|
25,137
|
|
|
$
|
24,316
|
|
|
$
|
22,496
|
|
|
Tangible assets
|
|
274,128
|
|
|
280,670
|
|
|
285,666
|
|
|
TCE ratio(3)
|
|
9.2
|
|
%
|
8.7
|
|
%
|
7.9
|
|
%
|
Regulatory Capital
Ratios(4)
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
$
|
41,750
|
|
|
$
|
41,041
|
|
|
$
|
39,672
|
|
|
Adjustments:
Net unrealized gains on AFS securities recorded in
AOCI(5)
|
|
736
|
|
|
503
|
|
|
(752)
|
|
|
Net (gains) losses on cash flow hedges recorded in
AOCI(5)
|
|
123
|
|
|
175
|
|
|
(6)
|
|
|
Disallowed goodwill and other intangible
assets
|
|
(14,263)
|
|
|
(14,309)
|
|
|
(14,497)
|
|
|
Disallowed deferred tax assets
|
|
—
|
|
|
—
|
|
|
(221)
|
|
|
Noncumulative perpetual preferred
stock(2)
|
|
(853)
|
|
|
(853)
|
|
|
(853)
|
|
|
Other
|
|
(5)
|
|
|
(5)
|
|
|
(12)
|
|
|
Tier 1 common capital
|
|
27,488
|
|
|
26,552
|
|
|
23,331
|
|
|
Adjustments:
Noncumulative perpetual preferred
stock(2)
|
|
853
|
|
|
853
|
|
|
853
|
|
|
Tier 1 restricted core capital
items(6)
|
|
2
|
|
|
2
|
|
|
3,636
|
|
|
Tier 1 capital
|
|
28,343
|
|
|
27,407
|
|
|
27,820
|
|
|
Adjustments:
Long-term debt qualifying as Tier 2 capital
|
|
1,909
|
|
|
2,104
|
|
|
2,119
|
|
|
Qualifying allowance for loan and lease
losses
|
|
2,727
|
|
|
2,781
|
|
|
2,767
|
|
|
Other Tier 2 components
|
|
8
|
|
|
12
|
|
|
17
|
|
|
Tier 2 capital
|
|
4,644
|
|
|
4,897
|
|
|
4,903
|
|
|
Total risk-based
capital(7)
|
|
$
|
32,987
|
|
|
$
|
32,304
|
|
|
$
|
32,723
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets(8)
|
|
$
|
215,901
|
|
|
$
|
220,166
|
|
|
$
|
218,390
|
|
|
Tier 1 common ratio(9)
|
|
12.7
|
|
%
|
12.1
|
|
%
|
10.7
|
|
%
|
Tier 1 risk-based capital
ratio(10)
|
|
13.1
|
|
|
12.4
|
|
|
12.7
|
|
|
Total risk-based capital
ratio(11)
|
|
15.3
|
|
|
14.7
|
|
|
15.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
impact from related deferred taxes.
|
(2) Noncumulative perpetual preferred stock qualifies for
Tier 1 capital; however, it is excluded from Tier 1 common
capital.
|
(3) TCE ratio
is a non-GAAP measure calculated based on tangible common equity
divided by tangible assets.
|
(4) Regulatory
capital ratios as of the end of Q3 2013 are preliminary and
therefore subject to change.
|
(5) Amounts
presented are net of tax.
|
(6) Consists
primarily of trust preferred securities.
|
(7) Total
risk-based capital equals the sum of Tier 1 capital and Tier 2
capital.
|
(8) Calculated
based on prescribed regulatory guidelines.
|
(9)
Tier 1 common ratio is a
regulatory measure calculated based on Tier 1 common capital
divided by risk-weighted assets.
|
(10) Tier 1
risk-based capital ratio is a regulatory capital measure calculated
based on Tier 1 capital divided by risk-weighted
assets.
|
(11) Total
risk-based capital ratio is a regulatory capital measure calculated
based on total risk-based capital divided by risk-weighted
assets.
|
SOURCE Capital One Financial Corporation