MCLEAN, Va., April 16, 2014 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2014 of $1.2 billion, or $1.96 per diluted common share, compared to the fourth quarter of 2013 with net income of $852 million, or $1.43 per diluted common share, and the first quarter of 2013 with net income of $1.1 billion, or $1.77 per diluted common share.

"Capital One posted solid results across our businesses in the first quarter," said Richard D. Fairbank, Chairman and CEO. "We received no objection to our CCAR capital plan and announced a $2.5 billion share repurchase program that we expect to complete by the end of the first quarter of 2015."

All comparisons below are for the first quarter of 2014 compared with the fourth quarter of 2013 unless otherwise noted.

First Quarter 2014 Income Highlights:


    --  Total net revenue decreased 3 percent to $5.4 billion.
    --  Total non-interest expense decreased 9 percent to $2.9 billion.
    --  Pre-provision earnings increased 6 percent to $2.4 billion.
    --  Provision for credit losses decreased 23 percent to $735 million.

First Quarter 2014 Balance Sheet Highlights:


    --  Common equity Tier 1 capital ratio under Basel III Standardized Approach
        of 13.0 percent at March 31, 2014.
    --  Net interest margin of 6.62 percent, down 11 basis points.
    --  Domestic Card period-end loans decreased $5.0 billion, or 7 percent, to
        $68.3 billion.
    --  Commercial Banking period-end loans increased $1.2 billion, or 3
        percent, to $46.2 billion.
    --  Consumer Banking:
        --  Auto period-end loans increased $1.2 billion, or 4 percent, to $33.1
            billion.
        --  Home loans period-end loans decreased $1.2 billion, or 4 percent, to
            $34.0 billion, driven by expected run-off of acquired portfolios.
    --  Average loans held for investment in the quarter increased $909 million,
        or less than 1 percent, to $193.7 billion.
        --  Domestic Card average loans decreased $558 million, or less than 1
            percent, to $69.8 billion.
        --  Commercial Banking average loans increased $2.1 billion, or 5
            percent, to $45.4 billion.
        --  Consumer Banking:
            --  Auto average loans increased $963 million, or 3 percent, to
                $32.4 billion.
            --  Home loans average loans decreased by $1.3 billion, or 4
                percent, to $34.6 billion, driven by expected run-off of
                acquired portfolios.
    --  Period-end total deposits increased $3.8 billion, or 2 percent, to
        $208.3 billion, while average deposits increased $136 million, or less
        than 1 percent, to $205.8 billion.
    --  Deposit interest rates declined 3 basis points to 0.60 percent.

Detailed segment information will be available in the company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2014.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 16, 2014, 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 7, 2014 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, 2013.

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 $208.3 billion in deposits and $290.5 billion in total assets as of March 31, 2014. 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.







                                                                                                                                      Capital One Financial Corporation

                                                                                                                                             Financial Supplement

                                                                                                                                         First Quarter 2014(1)(2)(3)

                                                                                                                                              Table of Contents



                                                                                                                                                                        Page
                                                                                                                                                                        ----


    Capital One Financial Corporation Consolidated


    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                                            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 March 31, 2014
                   once it is filed with the
                   Securities and Exchange
                   Commission.


    (2)            References to ING Direct refers
                   to business and assets acquired
                   and liabilities assumed in the
                   February 17, 2012 acquisition.
                   Reference 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.


    (3)            We adopted ASU 2014-01
                   "Accounting for Investments in
                   Qualified Affordable Housing
                   Projects" as of January 1, 2014.
                   As permitted by the guidance, we
                   adopted the proportional
                   amortization method of
                   accounting for Qualified
                   Affordable Housing Projects. The
                   proportional amortization method
                   amortizes the cost of the
                   investment over the period in
                   which we will receive tax
                   credits and other tax benefits,
                   and the resulting amortization
                   is recognized as a component of
                   income taxes attributable to
                   continuing operations.
                   Historically, these investments
                   were accounted for under the
                   equity method of accounting and
                   the passive losses related to
                   the investments were recognized
                   within non-interest expense.
                   Prior period results and related
                   metrics have been restated to
                   conform to this presentation.




    CAPITAL ONE FINANCIAL CORPORATION (COF)

    Table 1: Financial Summary-Consolidated(1)




                                                                                    2014             2013             2013         2013    2013

    (Dollars in millions, except per share data and as noted) (unaudited)         Q1                Q4               Q3     Q2           Q1
    --------------------------------------------------------------------          ---              ---              ---    ---           ---

    Earnings
    --------

    Net interest income                                                                    $4,350           $4,423               $4,560           $4,553    $4,570

    Non-interest income(2)                                                                  1,020            1,121                1,091            1,085       981
                                                                                            -----            -----                -----            -----       ---


    Total net revenue(3)                                                                    5,370            5,544                5,651            5,638     5,551
                                                                                            -----            -----                -----            -----     -----


    Provision for credit losses                                                               735              957                  849              762       885

    Non-interest expense:

    Marketing                                                                                 325              427                  299              330       317

    Amortization of intangibles(4)                                                            143              166                  161              167       177

    Acquisition-related(5)                                                                     23               60                   37               50        46

    Operating expenses                                                                      2,441            2,582                2,612            2,471     2,451
                                                                                            -----            -----                -----            -----     -----


    Total non-interest expense                                                              2,932            3,235                3,109            3,018     2,991
                                                                                            -----            -----                -----            -----     -----


    Income from continuing operations before income taxes                                   1,703            1,352                1,693            1,858     1,675

    Income tax provision                                                                      579              477                  575              631       541
                                                                                              ---              ---                  ---              ---       ---


    Income from continuing operations, net of tax                                           1,124              875                1,118            1,227     1,134

    Income/(Loss) from discontinued operations, net of tax(2)                                  30              (23)                 (13)            (119)      (78)
                                                                                              ---              ---                  ---             ----       ---


    Net income                                                                              1,154              852                1,105            1,108     1,056

    Dividends and undistributed earnings allocated to participating securities(6)              (5)              (4)                  (5)              (4)       (5)

    Preferred stock dividends(6)                                                              (13)             (13)                 (13)             (13)      (13)
                                                                                              ---              ---                  ---              ---       ---


    Net income available to common stockholders                                            $1,136             $835               $1,087           $1,091    $1,038
                                                                                           ======             ====               ======           ======    ======


    Common Share Statistics
    -----------------------

    Basic EPS:(6)

    Net income from continuing operations                                                   $1.94            $1.50                $1.89            $2.08     $1.92

    Income/(Loss) from discontinued operations                                               0.05            (0.04)               (0.02)           (0.20)    (0.13)
                                                                                             ----            -----                -----            -----     -----


    Net income per basic common share                                                       $1.99            $1.46                $1.87            $1.88     $1.79
                                                                                            =====            =====                =====            =====     =====


    Diluted EPS:(6)

    Net income from continuing operations                                                   $1.91            $1.46                $1.86            $2.05     $1.90

    Income/(Loss) from discontinued operations                                               0.05            (0.03)               (0.02)           (0.20)    (0.13)
                                                                                             ----            -----                -----            -----     -----


    Net income per diluted common share                                                     $1.96            $1.43                $1.84            $1.85     $1.77
                                                                                            =====            =====                =====            =====     =====


    Weighted average common shares outstanding (in millions) for:

    Basic EPS                                                                               571.0            573.4                582.3            581.5     580.5

    Diluted EPS                                                                             580.3            582.6                591.1            588.8     586.3

    Common shares outstanding (period end, in millions)                                     572.9            572.7                582.0            584.9     584.0

    Dividends per common share                                                              $0.30            $0.30                $0.30            $0.30     $0.05

    Tangible book value per common share (period end)(7)                                    45.88            43.64                43.01            41.41     41.72

    Balance Sheet (Period End)
    -------------------------

    Loans held for investment(8)                                                         $192,941         $197,199             $191,814         $191,512  $191,333

    Interest-earning assets                                                               259,422          265,170              259,152          265,693   268,479

    Total assets                                                                          290,500          296,933              289,866          296,524   300,145

    Interest-bearing deposits                                                             184,214          181,880              184,553          187,768   191,093

    Total deposits                                                                        208,324          204,523              206,834          209,865   212,410

    Borrowings                                                                             30,118           40,654               31,845           36,231    37,492

    Common equity                                                                          41,948           40,779               40,792           40,094    40,358

    Total stockholders' equity                                                             42,801           41,632               41,645           40,947    41,211

    Balance Sheet (Quarterly Average Balances)
    -----------------------------------------

    Loans held for investment(8)                                                         $193,722         $192,813             $191,135         $190,562  $195,997

    Interest-earning assets                                                               262,659          262,957              264,796          266,544   272,345

    Total assets                                                                          294,275          294,040              294,919          297,748   303,226

    Interest-bearing deposits                                                             184,183          184,206              186,752          189,311   190,612

    Total deposits                                                                        205,842          205,706              208,340          210,650   211,555

    Borrowings                                                                             35,978           36,463               36,355           36,915    41,574

    Common equity                                                                          42,006           41,502               40,332           40,637    40,027

    Total stockholders' equity                                                             42,859           42,355               41,185           41,490    40,880




    CAPITAL ONE FINANCIAL CORPORATION (COF)

    Table 2: Selected Metrics-Consolidated(1)




                                                                               2014           2013            2013       2013      2013

    (Dollars in millions, except per share data and as noted) (unaudited)    Q1              Q4             Q3     Q2            Q1
    --------------------------------------------------------------------     ---            ---            ---     ---           ---

    Performance Metrics
    -------------------

    Net interest income growth (quarter over quarter)                                  (2)%           (3)%                  -  %             -  %      1%

    Non-interest income growth (quarter over quarter)                                   (9)             3                   1               11       (10)

    Total net revenue growth (quarter over quarter)                                     (3)            (2)                  -                2        (1)

    Total net revenue margin(9)                                                       8.18           8.43                8.54             8.46      8.15

    Net interest margin(10)                                                           6.62           6.73                6.89             6.83      6.71

    Return on average assets(11)                                                      1.53           1.19                1.52             1.65      1.50

    Return on average tangible assets(12)                                             1.61           1.26                1.60             1.74      1.58

    Return on average common equity(13)                                              10.53           8.27               10.91            11.91     11.15

    Return on average tangible common equity(14)                                     16.83          13.38               17.96            19.62     18.69

    Non-interest expense as a % of average loans held for investment(15)              6.05           6.71                6.51             6.33      6.10

    Efficiency ratio(16)                                                             54.60          58.35               55.02            53.53     53.88

    Effective income tax rate for continuing operations                               34.0           35.3                34.0             34.0      32.3

    Full-time equivalent employees (in thousands), period end                         41.1           42.0                39.6             39.6      39.3

    Credit Quality Metrics(8)
    ------------------------

    Allowance for loan and lease losses                                             $4,098         $4,315              $4,333           $4,407    $4,606

    Allowance as a % of loans held for investment                                     2.12%          2.19%               2.26%            2.30%     2.41%

    Allowance as a % of loans held for investment (excluding acquired loans)          2.45           2.54                2.66             2.74      2.91

    Net charge-offs                                                                   $931           $969                $917             $969    $1,079

    Net charge-off rate(17)                                                           1.92%          2.01%               1.92%            2.03%     2.20%

    Net charge-off rate (excluding acquired loans)(17)                                2.24           2.37                2.29             2.46      2.69

    30+ day performing delinquency rate                                               2.22           2.63                2.54             2.35      2.37

    30+ day performing delinquency rate (excluding acquired loans)                    2.59           3.08                3.01             2.83      2.90

    30+ day delinquency rate                                                          2.51           2.96                2.88             2.71      2.74

    30+ day delinquency rate (excluding acquired loans)                               2.93           3.46                3.41             3.26      3.35

    Capital Ratios(18)
    -----------------

    Common equity Tier 1 capital ratio                                                13.0%           N/A                 N/A              N/A       N/A

    Tier 1 common ratio                                                                N/A           12.2%               12.7%            12.0%     11.7%

    Tier 1 risk-based capital ratio                                                   13.4           12.6                13.1             12.4      12.1

    Total risk-based capital ratio                                                    15.4           14.7                15.2             14.6      14.4

    Tier 1 leverage ratio                                                             10.4           10.1                10.0              9.7       9.1

    Tangible common equity ("TCE") ratio                                               9.6            8.9                 9.1              8.6       8.6




    CAPITAL ONE FINANCIAL CORPORATION (COF)

    Table 3: Consolidated Statements of Income(1)




                                                                                              Three Months Ended
                                                                                             ------------------

    (Dollars in millions, except per share data) (unaudited)                      March 31,                      December 31,         March 31,
                                                                                        2014                             2013              2013
    ---                                                                                 ----                             ----              ----

    Interest income:

    Loans, including loans held for sale                                                            $4,307                    $4,398            $4,649

    Investment securities                                                                              416                       414               374

    Other                                                                                               30                        27                28
                                                                                                       ---                       ---               ---


    Total interest income                                                                            4,753                     4,839             5,051
                                                                                                     -----                     -----             -----


    Interest expense:

    Deposits                                                                                           276                       288               326

    Securitized debt obligations                                                                        38                        40                56

    Senior and subordinated notes                                                                       77                        75                82

    Other borrowings                                                                                    12                        13                17
                                                                                                       ---                       ---               ---


    Total interest expense                                                                             403                       416               481
                                                                                                       ---                       ---               ---


    Net interest income                                                                              4,350                     4,423             4,570

    Provision for credit losses                                                                        735                       957               885
                                                                                                       ---                       ---               ---


    Net interest income after provision for credit losses                                            3,615                     3,466             3,685
                                                                                                     -----                     -----             -----


    Non-interest income:(2)

    Service charges and other customer-related fees                                                    474                       504               550

    Interchange fees, net                                                                              440                       489               445

    Net other-than-temporary impairment losses recognized                                               (5)                       (1)              (25)

        in earnings

    Other                                                                                              111                       129                11
                                                                                                       ---                       ---               ---


    Total non-interest income                                                                        1,020                     1,121               981
                                                                                                     -----                     -----               ---


    Non-interest expense:

    Salaries and associate benefits                                                                  1,161                     1,115             1,095

    Occupancy and equipment                                                                            405                       437               357

    Marketing                                                                                          325                       427               317

    Professional services                                                                              287                       357               322

    Communications and data processing                                                                 196                       220               216

    Amortization of intangibles(4)                                                                     143                       166               177

    Other                                                                                              415                       513               507
                                                                                                       ---                       ---               ---


    Total non-interest expense                                                                       2,932                     3,235             2,991
                                                                                                     -----                     -----             -----


    Income from continuing operations before income taxes                                            1,703                     1,352             1,675

    Income tax provision                                                                               579                       477               541
                                                                                                       ---                       ---               ---


    Income from continuing operations, net of tax                                                    1,124                       875             1,134

    Income/(Loss) from discontinued operations, net of tax(2)                                           30                       (23)              (78)
                                                                                                       ---                       ---               ---


    Net income                                                                                       1,154                       852             1,056

    Dividends and undistributed earnings allocated to participating securities(6)                       (5)                       (4)               (5)

    Preferred stock dividends(6)                                                                       (13)                      (13)              (13)
                                                                                                       ---                       ---               ---


    Net income available to common stockholders                                                     $1,136                      $835            $1,038
                                                                                                    ======                      ====            ======



    Basic earnings per common share:(6)

    Net income from continuing operations                                                            $1.94                     $1.50             $1.92

    Income/(Loss) from discontinued operations                                                        0.05                     (0.04)            (0.13)
                                                                                                      ----                     -----             -----


    Net income per basic common share                                                                $1.99                     $1.46             $1.79
                                                                                                     =====                     =====             =====



    Diluted earnings per common share:(6)

    Net income from continuing operations                                                            $1.91                     $1.46             $1.90

    Income/(Loss) from discontinued operations                                                        0.05                     (0.03)            (0.13)
                                                                                                      ----                     -----             -----


    Net income per diluted common share                                                              $1.96                     $1.43             $1.77
                                                                                                     =====                     =====             =====



    Weighted average common shares outstanding (in millions) for:

    Basic EPS                                                                                        571.0                     573.4             580.5

    Diluted EPS                                                                                      580.3                     582.6             586.3

    Dividends paid per common share                                                                  $0.30                     $0.30             $0.05




    CAPITAL ONE FINANCIAL CORPORATION (COF)

    Table 4: Consolidated Balance Sheets(1)




    (Dollars in millions)(unaudited)                             March 31,            December 31,           March 31,
                                                                       2014                   2013                2013
    ---                                                                ----                   ----                ----

    Assets:

    Cash and cash equivalents:

    Cash and due from banks                                                   $3,373                 $2,821              $1,947

    Interest-bearing deposits with banks                                       2,641                  3,131               4,563

    Federal funds sold and securities purchased under agreements                 168                    339                 236

        to resell



    Total cash and cash equivalents                                            6,182                  6,291               6,746

    Restricted cash for securitization investors                                 550                    874               1,018

    Securities available for sale, at fair value                              40,721                 41,800              63,968

    Securities held to maturity, at carrying value                            20,150                 19,132                   -

    Loans held for investment:

    Unsecuritized loans held for investment                                  156,072                157,651             150,721

    Restricted loans for securitization investors                             36,869                 39,548              40,612
                                                                              ------                 ------              ------


    Total loans held for investment                                          192,941                197,199             191,333

    Less: Allowance for loan and lease losses                                 (4,098)                (4,315)             (4,606)
                                                                              ------                 ------              ------


    Net loans held for investment                                            188,843                192,884             186,727

    Loans held for sale, at lower of cost or fair value                          259                    218               6,410

    Premises and equipment, net                                                3,807                  3,839               3,736

    Interest receivable                                                        1,325                  1,418               1,378

    Goodwill                                                                  13,974                 13,978              13,900

    Other                                                                     14,689                 16,499              16,262
                                                                              ------                 ------              ------


    Total assets                                                            $290,500               $296,933            $300,145
                                                                            ========               ========            ========



    Liabilities:

    Interest payable                                                            $259                   $307                $310

    Customer deposits:

    Non-interest bearing deposits                                             24,110                 22,643              21,317

    Interest-bearing deposits                                                184,214                181,880             191,093
                                                                             -------                -------             -------


    Total customer deposits                                                  208,324                204,523             212,410

    Securitized debt obligations                                               9,783                 10,289              11,046

    Other debt:

    Federal funds purchased and securities loaned or sold under                1,544                    915                 855

        agreements to repurchase

    Senior and subordinated notes                                             14,891                 13,134              13,255

    Other borrowings                                                           3,900                 16,316              12,336
                                                                               -----                 ------              ------


    Total other debt                                                          20,335                 30,365              26,446

    Other liabilities                                                          8,998                  9,817               8,722
                                                                               -----                  -----               -----


    Total liabilities                                                        247,699                255,301             258,934
                                                                             -------                -------             -------



    Stockholders' equity:

    Preferred stock                                                                -                      -                   -

    Common stock                                                                   6                      6                   6

    Additional paid-in capital, net                                           26,605                 26,526              26,256

    Retained earnings                                                         21,259                 20,292              17,791

    Accumulated other comprehensive income ("AOCI")                             (710)                  (872)                473

    Treasury stock, at cost                                                   (4,359)                (4,320)             (3,315)
                                                                              ------                 ------              ------


    Total stockholders' equity                                                42,801                 41,632              41,211
                                                                              ------                 ------              ------


    Total liabilities and stockholders' equity                              $290,500               $296,933            $300,145
                                                                            ========               ========            ========


    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 the following related to
                   mortgage representation and warranty
                   losses: a benefit of $33 million in
                   Q1 2014 (which includes a benefit of
                   $47 million before taxes in
                   discontinued operations and a
                   provision of $14 million before
                   taxes in continuing operations), a
                   provision of $33 million in Q4 2013,
                   a benefit of $4 million in Q3 2013,
                   and provisions of $183 million and
                   $97 million in Q2 2013 and Q1 2013
                   respectively. Historically, the
                   majority of the provision for
                   representation and warranty losses
                   is 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 $1.1 billion as of March
                   31, 2014, $1.2 billion as of
                   December 31, 2013 and $994 million
                   as of March 31, 2013.


    (3)            Total net revenue was reduced by
                   $163 million in Q1 2014, $185
                   million in Q4 2013, $154
                   million in Q3 2013, $192
                   million in Q2 2013 and $265
                   million in Q1 2013 for the
                   estimated uncollectible amount
                   of billed finance charges and
                   fees.


    (4)            Includes purchased credit card
                   relationship ("PCCR")
                   intangible amortization of $98
                   million in Q1 2014, $102
                   million in Q4 2013, $106
                   million in Q3 2013, $110
                   million in Q2 2013 and $116
                   million in Q1 2013, the
                   substantial majority of which
                   is attributable to the 2012
                   U.S. card acquisition. Includes
                   core deposit intangible
                   amortization of $36 million in
                   Q1 2014, $38 million in Q4
                   2013, $40 million in Q3 2013,
                   $43 million in Q2 2013 and $44
                   million in Q1 2013.


    (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, 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.


    (7)            Tangible book value per common share
                   is a non-GAAP measure calculated
                   based on tangible common equity
                   divided by common shares
                   outstanding. See "Table 13:
                   Reconciliation of Non-GAAP
                   Measures and Calculation of
                   Regulatory Capital Measures" for
                   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 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"). The table below presents
                   amounts related to acquired loans
                   accounted for under SOP 03-3:



    (Dollars in millions) (unaudited)              2014          2013          2013        2013   2013
                                                  Q1             Q4           Q3    Q2           Q1
    ---                                          ---            ---           ---   ---         ---

    Acquired loans accounted for under SOP 03-3:

    Period-end unpaid principal balance                 $28,549       $29,761           $31,377        $33,620 $36,216

    Period-end loans held for investment                 27,390        28,550            30,080         32,275  34,943

    Average loans held for investment                    27,760        29,055            30,713         33,144  35,706



    (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" 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
                     for the period. Our calculation
                     of return on average common
                     equity may not be comparable to
                     similarly titled measures
                     reported by other companies.


    (14)             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. 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" 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 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)             Beginning on January 1, 2014, we
                     calculate our regulatory capital
                     under Basel III Standardized
                     Approach subject to transition
                     provisions. We calculated
                     regulatory capital measures for
                     periods prior to the first quarter
                     of 2014 under Basel I. Ratios as of
                     the end of Q1 2014 are preliminary
                     and therefore subject to change.
                     TCE ratio is a non-GAAP measure.
                     See "Table 13: Reconciliation of
                     Non-GAAP Measures and Calculation
                     of Regulatory Capital Measures" for
                     information on the calculation of
                     each of these ratios.





    CAPITAL ONE FINANCIAL CORPORATION (COF)

    Table 6: Average Balances, Net Interest Income and Net Interest Margin(1)




                                                                                        2014 Q1                             2013 Q4                          2013 Q1
                                                                                      -------                         -------                        -------

    (Dollars in millions)(unaudited)                                          Average                   Interest          Yield/    Average      Interest                      Yield/        Average  Interest      Yield/
                                                                              Balance                   Income/           Rate(2)   Balance       Income/                     Rate(2)        Balance  Income/      Rate(2)
                                                                                                       Expense(2)                                Expense(2)                                          Expense(2)
    ---                                                                                                ---------                                 ---------                                           ---------

    Interest-earning assets:

    Loans, including loans held for sale                                                      $194,020            $4,307                   8.88%                     $193,368         $4,398                 9.10%         $200,441 $4,649 9.28%

    Investment securities(3)                                                                    62,124               416                   2.68                        62,919            414                 2.63            64,798    374 2.31

    Cash equivalents and other                                                                   6,515                30                   1.84                         6,670             27                 1.62             7,106     28 1.58
                                                                                                 -----               ---                   ----                         -----            ---                 ----             -----    --- ----


    Total interest-earning assets                                                             $262,659            $4,753                   7.24%                     $262,957         $4,839                 7.36%         $272,345 $5,051 7.42%
                                                                                              --------            ------                   ----                      --------         ------                 ----          -------- ------ ----



    Interest-bearing liabilities:

    Interest-bearing deposits                                                                 $184,183              $276                   0.60%                     $184,206           $288                 0.63%         $190,612   $326 0.68%

    Securitized debt obligations                                                                10,418                38                   1.46                         9,873             40                 1.62            11,758     56 1.91

    Senior and subordinated notes                                                               14,162                77                   2.17                        12,765             75                 2.35            11,984     82 2.74

    Other borrowings                                                                            11,398                12                   0.42                        13,825             13                 0.38            17,832     17 0.38
                                                                                                ------               ---                   ----                        ------            ---                 ----            ------    --- ----


    Total interest-bearing liabilities                                                        $220,161              $403                   0.73%                     $220,669           $416                 0.75%         $232,186   $481 0.83%
                                                                                              --------              ----                   ----                      --------           ----                 ----          --------   ---- ----


    Net interest income/spread                                                                                    $4,350                   6.51%                                      $4,423                 6.61%                  $4,570 6.59%
                                                                                                                  ======                                                              ------                                        ------


    Impact of non-interest bearing funding                                                                                                 0.11                                                              0.12                          0.12
                                                                                                                                           ----                                                              ----                          ----


    Net interest margin                                                                                                                    6.62%                                                             6.73%                         6.71%
                                                                                                                                           ====                                                              ====                          ====


    (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)




    (Dollars in millions)(unaudited)                          2014             2013              2013         2013    2013
                                                            Q1                Q4               Q3      Q2           Q1
                                                            ---              ---              ---     ---           ---

    Period-end Loans Held For Investment
    ------------------------------------

    Credit card:

    Domestic credit card                                            $68,275          $73,255               $69,936          $70,490   $70,361

    International credit card                                         7,575            8,050                 8,031            7,820     8,036
                                                                      -----            -----                 -----            -----     -----


    Total credit card                                                75,850           81,305                77,967           78,310    78,397
                                                                     ------           ------                ------           ------    ------


    Consumer banking:

    Auto                                                             33,080           31,857                30,803           29,369    27,940

    Home loan                                                        34,035           35,282                36,817           39,163    41,931

    Retail banking                                                    3,612            3,623                 3,665            3,686     3,742
                                                                      -----            -----                 -----            -----     -----


    Total consumer banking                                           70,727           70,762                71,285           72,218    73,613
                                                                     ------           ------                ------           ------    ------


    Commercial banking:

    Commercial and multifamily real estate                           21,256           20,750                19,523           18,570    17,878

    Commercial and industrial                                        24,064           23,309                21,848           21,170    20,127
                                                                     ------           ------                ------           ------    ------


    Total commercial lending                                         45,320           44,059                41,371           39,740    38,005

    Small-ticket commercial real estate                                 910              952                 1,028            1,065     1,145
                                                                        ---              ---                 -----            -----     -----


    Total commercial banking                                         46,230           45,011                42,399           40,805    39,150
                                                                     ------           ------                ------           ------    ------


    Other loans                                                         134              121                   163              179       173
                                                                        ---              ---                   ---              ---       ---


    Total                                                          $192,941         $197,199              $191,814         $191,512  $191,333
                                                                   ========         ========              ========         ========  ========


    Average Loans Held For Investment
    ---------------------------------

    Credit card:

    Domestic credit card                                            $69,810          $70,368               $69,947          $69,966   $74,714

    International credit card                                         7,692            7,899                 7,782            7,980     8,238
                                                                      -----            -----                 -----            -----     -----


    Total credit card                                                77,502           78,267                77,729           77,946    82,952
                                                                     ------           ------                ------           ------    ------


    Consumer banking:

    Auto                                                             32,387           31,424                30,157           28,677    27,477

    Home loan                                                        34,646           35,974                37,852           40,532    43,023

    Retail banking                                                    3,630            3,635                 3,655            3,721     3,786
                                                                      -----            -----                 -----            -----     -----


    Total consumer banking                                           70,663           71,033                71,664           72,930    74,286
                                                                     ------           ------                ------           ------    ------


    Commercial banking:

    Commercial and multifamily real estate                           20,962           19,928                19,047           18,084    17,454

    Commercial and industrial                                        23,541           22,445                21,491           20,332    19,949
                                                                     ------           ------                ------           ------    ------


    Total commercial lending                                         44,503           42,373                40,538           38,416    37,403

    Small-ticket commercial real estate                                 932              986                 1,038            1,096     1,173
                                                                        ---              ---                 -----            -----     -----


    Total commercial banking                                         45,435           43,359                41,576           39,512    38,576
                                                                     ------           ------                ------           ------    ------


    Other loans                                                         122              154                   166              174       183
                                                                        ---              ---                   ---              ---       ---


    Total                                                          $193,722         $192,813              $191,135         $190,562  $195,997
                                                                   ========         ========              ========         ========  ========


    Net Charge-off Rates
    --------------------

    Credit card:

    Domestic credit card                                               4.01%            3.89%                 3.67%            4.28%     4.43%

    International credit card                                          4.17             4.74                  4.71             5.08      4.59
                                                                       ----             ----                  ----             ----      ----


    Total credit card                                                  4.02             3.98                  3.78             4.36      4.45
                                                                       ----             ----                  ----             ----      ----


    Consumer banking:

    Auto                                                               1.66             2.30                  2.01             1.28      1.78

    Home loan                                                          0.06             0.03                  0.06             0.03      0.04

    Retail banking                                                     0.95             1.09                  1.38             1.50      1.85
                                                                       ----             ----                  ----             ----      ----


    Total consumer banking                                             0.84             1.09                  0.95             0.60      0.78
                                                                       ----             ----                  ----             ----      ----


    Commercial banking:

    Commercial and multifamily real estate                             0.01            (0.11)                (0.11)            0.04      0.01

    Commercial and industrial                                          0.03             0.04                  0.18             0.03      0.04
                                                                       ----             ----                  ----             ----      ----


    Total commercial lending                                           0.02            (0.03)                 0.04             0.03      0.03

    Small-ticket commercial real estate                                0.67            (0.81)                 1.26             0.45      1.41
                                                                       ----            -----                  ----             ----      ----


    Total commercial banking                                           0.04            (0.05)                 0.07             0.04      0.07
                                                                       ----            -----                  ----             ----      ----


    Other loans                                                       (0.68)            4.68                 12.17            13.10     14.53
                                                                      -----             ----                 -----            -----     -----


    Total                                                              1.92%            2.01%                 1.92%            2.03%     2.20%
                                                                       ====             ====                  ====             ====      ====


    30+ Day Performing Delinquency Rates
    ------------------------------------

    Credit card:

    Domestic credit card                                               3.02%            3.43%                 3.46%            3.05%     3.37%

    International credit card                                          3.59             3.71                  3.86             3.84      4.04
                                                                       ----             ----                  ----             ----      ----


    Total credit card                                                  3.08             3.46                  3.51             3.13      3.44
                                                                       ----             ----                  ----             ----      ----


    Consumer banking:

    Auto                                                               5.29             6.85                  6.29             6.03      5.58

    Home loan                                                          0.12             0.16                  0.14             0.12      0.14

    Retail banking                                                     0.74             0.69                  0.68             0.68      0.83
                                                                       ----             ----                  ----             ----      ----


    Total consumer banking                                             2.57%            3.20%                 2.82%            2.55%     2.24%
                                                                       ----             ----                  ----             ----      ----


    Nonperforming Asset Rates(2)
    ---------------------------

    Credit card:

    International credit card                                          1.07%            1.10%                 1.16%            1.20%     1.13%
                                                                       ----             ----                  ----             ----      ----


    Total credit card                                                  0.11             0.11                  0.12             0.12      0.12
                                                                       ----             ----                  ----             ----      ----


    Consumer banking:

    Auto(10)                                                           0.81             1.11                  0.92             0.81      0.71

    Home loan                                                          1.17             1.14                  1.08             1.08      1.02

    Retail banking                                                     1.15             1.13                  1.10             1.11      1.24
                                                                       ----             ----                  ----             ----      ----


    Total consumer banking                                             1.00             1.12                  1.01             0.97      0.91
                                                                       ----             ----                  ----             ----      ----


    Commercial banking:

    Commercial and multifamily real estate                             0.31             0.29                  0.40             0.56      0.76

    Commercial and industrial                                          0.40             0.44                  0.65             0.65      0.64
                                                                       ----             ----                  ----             ----      ----


    Total commercial lending                                           0.35             0.37                  0.53             0.61      0.69

    Small-ticket commercial real estate                                0.73             0.43                  1.49             1.11      2.42
                                                                       ----             ----                  ----             ----      ----


    Total commercial banking                                           0.36%            0.37%                 0.56%            0.62%     0.74%
                                                                       ----             ----                  ----             ----      ----




    CAPITAL ONE FINANCIAL CORPORATION (COF)

    Table 8: Financial & Statistical Summary-Credit Card Business




                                                                       2014           2013             2013        2013    2013

    (Dollars in millions) (unaudited)                                 Q1              Q4             Q3     Q2            Q1
    --------------------------------                                 ---             ---            ---     ---          ---

    Credit Card
    -----------

    Earnings:

    Net interest income                                                      $2,525         $2,576               $2,757          $2,804   $2,830

    Non-interest income                                                         785            833                  834             832      821
                                                                                ---            ---                  ---             ---      ---


    Total net revenue                                                         3,310          3,409                3,591           3,636    3,651

    Provision for credit losses                                                 558            751                  617             713      743

    Non-interest expense                                                      1,726          1,868                1,904           1,819    1,848
                                                                              -----          -----                -----           -----    -----


    Income from continuing operations before taxes                            1,026            790                1,070           1,104    1,060

    Income tax provision                                                        358            274                  376             385      374
                                                                                ---            ---                  ---             ---      ---


    Income from continuing operations, net of tax                              $668           $516                 $694            $719     $686
                                                                               ====           ====                 ====            ====     ====


    Selected performance metrics:

    Period-end loans held for investment                                    $75,850        $81,305              $77,967         $78,310  $78,397

    Average loans held for investment                                        77,502         78,267               77,729          77,946   82,952

    Average yield on loans held for investment(4)                             14.43%         14.64%               15.72%          15.94%   15.16%

    Total net revenue margin(5)                                               17.08          17.43                18.48           18.66    17.61

    Net charge-off rate                                                        4.02           3.98                 3.78            4.36     4.45

    30+ day performing delinquency rate                                        3.08           3.46                 3.51            3.13     3.44

    30+ day delinquency rate                                                   3.16           3.54                 3.60            3.22     3.53

    Nonperforming loan rate(3)                                                 0.11           0.11                 0.12            0.12     0.12

    Card loan premium amortization and other intangible accretion(6)            $37            $39                  $45             $57      $57

    PCCR intangible amortization                                                 98            102                  106             110      116

    Purchase volume(7)                                                       47,434         54,245               50,943          50,788   45,098

    Domestic Card
    -------------

    Earnings:

    Net interest income                                                      $2,255         $2,303               $2,492          $2,536   $2,556

    Non-interest income                                                         702            747                  749             737      724
                                                                                ---            ---                  ---             ---      ---


    Total net revenue                                                         2,957          3,050                3,241           3,273    3,280

    Provision for credit losses                                                 486            679                  529             647      647

    Non-interest expense                                                      1,545          1,664                1,713           1,635    1,633
                                                                              -----          -----                -----           -----    -----


    Income from continuing operations before taxes                              926            707                  999             991    1,000

    Income tax provision                                                        331            252                  355             353      356
                                                                                ---            ---                  ---             ---      ---


    Income from continuing operations, net of tax                              $595           $455                 $644            $638     $644
                                                                               ====           ====                 ====            ====     ====


    Selected performance metrics:

    Period-end loans held for investment                                    $68,275        $73,255              $69,936         $70,490  $70,361

    Average loans held for investment                                        69,810         70,368               69,947          69,966   74,714

    Average yield on loans held for investment(4)                             14.19%         14.44%               15.65%          15.91%   15.07%

    Total net revenue margin(5)                                               16.94          17.34                18.53           18.71    17.56

    Net charge-off rate                                                        4.01           3.89                 3.67            4.28     4.43

    30+ day performing delinquency rate                                        3.02           3.43                 3.46            3.05     3.37

    30+ day delinquency rate                                                   3.02           3.43                 3.46            3.05     3.37

    Purchase volume(7)                                                      $44,139        $50,377              $47,420         $47,273  $41,831

    International Card
    ------------------

    Earnings:

    Net interest income                                                        $270           $273                 $265            $268     $274

    Non-interest income                                                          83             86                   85              95       97
                                                                                ---            ---                  ---             ---      ---


    Total net revenue                                                           353            359                  350             363      371

    Provision for credit losses                                                  72             72                   88              66       96

    Non-interest expense                                                        181            204                  191             184      215
                                                                                ---            ---                  ---             ---      ---


    Income from continuing operations before taxes                              100             83                   71             113       60

    Income tax provision                                                         27             22                   21              32       18
                                                                                ---            ---                  ---             ---      ---


    Income from continuing operations, net of tax                               $73            $61                  $50             $81      $42
                                                                                ===            ===                  ===             ===      ===


    Selected performance metrics:

    Period-end loans held for investment                                     $7,575         $8,050               $8,031          $7,820   $8,036

    Average loans held for investment                                         7,692          7,899                7,782           7,980    8,238

    Average yield on loans held for investment                                16.64%         16.48%               16.35%          16.19%   15.97%

    Total net revenue margin                                                  18.38          18.20                17.99           18.20    18.01

    Net charge-off rate                                                        4.17           4.74                 4.71            5.08     4.59

    30+ day performing delinquency rate                                        3.59           3.71                 3.86            3.84     4.04

    30+ day delinquency rate                                                   4.41           4.56                 4.78            4.79     4.93

    Nonperforming loan rate(3)                                                 1.07           1.10                 1.16            1.20     1.13

    Purchase volume(7)                                                       $3,295         $3,868               $3,523          $3,515   $3,267




    CAPITAL ONE FINANCIAL CORPORATION (COF)

    Table 9: Financial & Statistical Summary-Consumer Banking Business




                                                                         2014           2013             2013        2013    2013

    (Dollars in millions) (unaudited)                                   Q1             Q4              Q3      Q2           Q1
    --------------------------------                                   ---             ---            ---     ---          ---

    Consumer Banking
    ----------------

    Earnings:

    Net interest income                                                        $1,433         $1,468               $1,481          $1,478   $1,478

    Non-interest income                                                           150            195                  184             189      181
                                                                                  ---            ---                  ---             ---      ---


    Total net revenue                                                           1,583          1,663                1,665           1,667    1,659

    Provision for credit losses                                                   140            212                  202              67      175

    Non-interest expense                                                          930          1,018                  927             910      890
                                                                                  ---          -----                  ---             ---      ---


    Income from continuing operations before taxes                                513            433                  536             690      594

    Income tax provision                                                          183            154                  191             246      211
                                                                                  ---            ---                  ---             ---      ---


    Income from continuing operations, net of tax                                $330           $279                 $345            $444     $383
                                                                                 ====           ====                 ====            ====     ====



    Selected performance metrics:

    Period-end loans held for investment                                      $70,727        $70,762              $71,285         $72,218  $73,613

    Average loans held for investment                                          70,663         71,033               71,664          72,930   74,286

    Average yield on loans held for investment                                   6.18%          6.30%                6.21%           5.99%    5.93%

    Auto loan originations                                                     $4,727         $4,322               $4,752          $4,525   $3,789

    Period-end deposits                                                       171,529        167,652              168,437         169,789  172,605

    Average deposits                                                          168,676        167,870              169,082         170,733  171,089

    Average deposit interest rate                                                0.57%          0.60%                0.63%           0.64%    0.64%

    Core deposit intangible amortization                                          $30            $32                  $34             $35      $37

    Net charge-off rate                                                          0.84%          1.09%                0.95%           0.60%    0.78%

    30+ day performing delinquency rate                                          2.57           3.20                 2.82            2.55     2.24

    30+ day delinquency rate                                                     3.14           3.89                 3.46            3.15     2.81

    Nonperforming loan rate(3)                                                   0.74           0.86                 0.79            0.78     0.74

    Nonperforming asset rate(2)                                                  1.00           1.12                 1.01            0.97     0.91

    Period-end loans serviced for others                                       $6,868         $7,665              $14,043         $14,313  $14,869




    CAPITAL ONE FINANCIAL CORPORATION (COF)

    Table 10: Financial & Statistical Summary-Commercial Banking Business(1)




                                                                               2014            2013             2013        2013    2013

    (Dollars in millions) (unaudited)                                        Q1               Q4              Q3     Q2           Q1
    --------------------------------                                         ---             ---             ---     ---          ---

    Commercial Banking
    ------------------

    Earnings:

    Net interest income                                                                $421            $447                 $424            $402     $401

    Non-interest income                                                                  87             131                   87              93       84
                                                                                        ---             ---                  ---             ---      ---


    Total net revenue(8)(11)                                                            508             578                  511             495      485

    Provision for credit losses                                                          40              (6)                  31             (14)     (35)

    Non-interest expense                                                                255             281                  228             228      221
                                                                                        ---             ---                  ---             ---      ---


    Income from continuing operations before taxes                                      213             303                  252             281      299

    Income tax provision                                                                 76             108                   90             100      106
                                                                                        ---             ---                  ---             ---      ---


    Income from continuing operations, net of tax                                      $137            $195                 $162            $181     $193
                                                                                       ====            ====                 ====            ====     ====



    Selected performance metrics:

    Period-end loans held for investment                                            $46,230         $45,011              $42,399         $40,805  $39,150

    Average loans held for investment                                                45,435          43,359               41,576          39,512   38,576

    Average yield on loans held for investment(8)                                      3.47%           3.92%                3.87%           3.84%    3.91%

    Period-end deposits                                                             $31,485         $30,567              $30,592         $30,869  $30,275

    Average deposits                                                                 31,627          31,033               30,685          30,746   30,335

    Average deposit interest rate                                                      0.25%           0.25%                0.27%           0.26%    0.28%

    Core deposit intangible amortization                                                 $6              $6                   $6              $8       $7

    Net charge-off rate                                                                0.04%         (0.05)%                0.07%           0.04%    0.07%

    Nonperforming loan rate(3)                                                         0.33            0.33                 0.47            0.60     0.71

    Nonperforming asset rate(2)                                                        0.36            0.37                 0.56            0.62     0.74


    Risk category:(9)

    Noncriticized                                                                   $44,904         $43,593              $40,940         $39,168  $37,359

    Criticized performing                                                               952           1,007                  968           1,087    1,191

    Criticized nonperforming                                                            150             149                  201             244      277
                                                                                        ---             ---                  ---             ---      ---


    Total risk-rated loans                                                           46,006          44,749               42,109          40,499   38,827

    Acquired commercial loans                                                           224             262                  290             306      323
                                                                                        ---             ---                  ---             ---      ---


    Total commercial loans                                                          $46,230         $45,011              $42,399         $40,805  $39,150
                                                                                    =======         =======              =======         =======  =======



    % of period-end commercial loans held for investment:

    Noncriticized                                                                      97.1%           96.9%                96.5%           96.0%    95.4%

    Criticized performing                                                               2.1             2.2                  2.3             2.7      3.1

    Criticized nonperforming                                                            0.3             0.3                  0.5             0.6      0.7
                                                                                        ---             ---                  ---             ---      ---


    Total risk-rated loans                                                             99.5            99.4                 99.3            99.3     99.2

    Acquired commercial loans                                                           0.5             0.6                  0.7             0.7      0.8
                                                                                        ---             ---                  ---             ---      ---


    Total commercial loans                                                            100.0%          100.0%               100.0%          100.0%   100.0%
                                                                                      =====           =====                =====           =====    =====




    CAPITAL ONE FINANCIAL CORPORATION (COF)

    Table 11: Financial & Statistical Summary-Other and Total(1)




    (Dollars in millions) (unaudited)                              2014             2013             2013         2013    2013
                                                                 Q1                Q4               Q3    Q2            Q1
    ---                                                          ---              ---              ---    ---           ---

    Other
    -----

    Earnings:

    Net interest expense                                                    $(29)            $(68)               $(102)           $(131)    $(139)

    Non-interest income                                                       (2)             (38)                 (14)             (29)     (105)
                                                                             ---              ---                  ---              ---      ----


    Total net revenue(11)                                                    (31)            (106)                (116)            (160)     (244)

    Provision for credit losses                                               (3)               -                   (1)              (4)        2

    Non-interest expense                                                      21               68                   50               61        32
                                                                             ---              ---                  ---              ---       ---


    Loss from continuing operations before taxes                             (49)            (174)                (165)            (217)     (278)

    Income tax benefit                                                       (38)             (59)                 (82)            (100)     (150)
                                                                             ---              ---                  ---             ----      ----


    Loss from continuing operations, net of tax                             $(11)           $(115)                $(83)           $(117)    $(128)
                                                                            ====            =====                 ====            =====     =====



    Selected performance metrics:

    Period-end loans held for investment                                    $134             $121                 $163             $179      $173

    Average loans held for investment                                        122              154                  166              174       183

    Period-end deposits                                                    5,310            6,304                7,805            9,207     9,530

    Average deposits                                                       5,539            6,803                8,573            9,171    10,131

    Total
    -----

    Earnings:

    Net interest income                                                   $4,350           $4,423               $4,560           $4,553    $4,570

    Non-interest income                                                    1,020            1,121                1,091            1,085       981
                                                                           -----            -----                -----            -----       ---


    Total net revenue                                                      5,370            5,544                5,651            5,638     5,551

    Provision for credit losses                                              735              957                  849              762       885

    Non-interest expense                                                   2,932            3,235                3,109            3,018     2,991
                                                                           -----            -----                -----            -----     -----


    Income from continuing operations before taxes                         1,703            1,352                1,693            1,858     1,675

    Income tax provision                                                     579              477                  575              631       541
                                                                             ---              ---                  ---              ---       ---


    Income from continuing operations, net of tax                         $1,124             $875               $1,118           $1,227    $1,134
                                                                          ======             ====               ======           ======    ======



    Selected performance metrics:

    Period-end loans held for investment                                $192,941         $197,199             $191,814         $191,512  $191,333

    Average loans held for investment                                    193,722          192,813              191,135          190,562   195,997

    Period-end deposits                                                  208,324          204,523              206,834          209,865   212,410

    Average deposits                                                     205,842          205,706              208,340          210,650   211,555


    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)             Nonperforming assets consist of
                    nonperforming loans, real estate
                    owned ("REO") and other foreclosed
                    assets. The nonperforming asset
                    rates 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.
                    Nonperforming assets related to
                    acquired loans are excluded from the
                    calculation.


    (3)             The nonperforming loan rates 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 Credit Card of 121
                    basis points and 110 basis
                    points, respectively, in Q3 2013,
                    168 basis points and 152 basis
                    points, respectively, in Q2 2013
                    and 107 basis points and 97 basis
                    points, respectively, in Q1 2013.
                    The sale of the Best Buy
                    portfolio 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 Credit Card of 136
                    basis points and 123 basis
                    points, respectively, in Q3 2013,
                    188 basis points and 169 basis
                    points, respectively, in Q2 2013
                    and 123 basis points and 112
                    basis points, respectively, in Q1
                    2013. The sale of the Best Buy
                    portfolio was completed on
                    September 6, 2013.


    (6)             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.


    (7)             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.


    (8)             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%.


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


    (10)             Includes the net realizable value
                     of auto loans that have been
                     charged down as a result of a
                     bankruptcy filing and repossessed
                     assets obtained in satisfaction
                     of auto loans.


    (11)             Commercial Banking revenue
                     related to qualified housing
                     credits is presented on a
                     taxable-equivalent basis. As a
                     result of the adoption of ASU
                     2014-01 "Accounting for
                     Investments in Qualified
                     Affordable Housing Projects",
                     losses related to these
                     investments are now recognized,
                     along with the associated tax
                     benefits, as a component of
                     income taxes attributable to
                     continuing operations instead of
                     non-interest expense. As such,
                     losses related to these
                     investments decrease the overall
                     tax benefits recognized as a
                     component of income taxes
                     attributable to continuing
                     operations and taxable-
                     equivalent revenue in the
                     Commercial Banking segment. This
                     decrease in revenue is offset by
                     an increase in revenue in the
                     Other segment. Prior period
                     amounts have been adjusted to
                     conform to current period
                     presentation.


    CAPITAL ONE FINANCIAL CORPORATION (COF)

    Table 13: Reconciliation of Non-GAAP
     Measures and Calculation of Regulatory
     Capital 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"), tangible
     assets, and TCE ratio. The table below
     provides the details of the
     calculation of our 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.



    (Dollars in millions)(unaudited)                                        2014             2013              2013         2013    2013
                                                                          Q1                Q4               Q3      Q2           Q1
                                                                          ---              ---              ---     ---           ---

    Average Equity to Non-GAAP Average Tangible Common Equity
    ---------------------------------------------------------

    Average stockholders' equity                                                  $42,859           42,355               $41,185          $41,490   $40,880

    Adjustments: Average goodwill and other intangible assets(1)                  (15,727)         (15,847)              (15,829)         (15,974)  (16,141)

    Noncumulative perpetual preferred stock(2)                                       (853)            (853)                 (853)            (853)     (853)
                                                                                     ----             ----                  ----             ----      ----


    Average tangible common equity                                                $26,279          $25,655               $24,503          $24,663   $23,886
                                                                                  =======          =======               =======          =======   =======


    End of Period Stockholders' Equity to Non-GAAP Tangible Common Equity
    ---------------------------------------------------------------------

    End of period stockholders' equity                                            $42,801          $41,632               $41,645          $40,947   $41,211

    Adjustments: Goodwill and other intangible assets(1)                          (15,666)         (15,784)              (15,760)         (15,872)  (15,992)

    Noncumulative perpetual preferred stock(2)                                       (853)            (853)                 (853)            (853)     (853)
                                                                                     ----             ----                  ----             ----      ----


    Tangible common equity                                                        $26,282          $24,995               $25,032          $24,222   $24,366
                                                                                  =======          =======               =======          =======   =======


    Average Assets to Average Tangible Assets
    -----------------------------------------

    Average assets                                                               $294,275         $294,040              $294,919         $297,748  $303,226

    Adjustments: Average goodwill and other intangible assets(1)                  (15,727)         (15,847)              (15,829)         (15,974)  (16,141)
                                                                                  -------          -------               -------          -------   -------


    Average tangible assets                                                      $278,548         $278,193              $279,090         $281,774  $287,085
                                                                                 ========         ========              ========         ========  ========


    End of Period Assets to Tangible Assets
    ---------------------------------------

    End of period assets                                                         $290,500         $296,933              $289,866         $296,524  $300,145

    Adjustments: Goodwill and other intangible assets(1)                          (15,666)         (15,784)              (15,760)         (15,872)  (15,992)
                                                                                  -------          -------               -------          -------   -------


    Tangible assets                                                              $274,834         $281,149              $274,106         $280,652  $284,153
                                                                                 ========         ========              ========         ========  ========


    Non-GAAP TCE Ratio
    ------------------

    Tangible common equity                                                        $26,282          $24,995               $25,032          $24,222   $24,366

    Tangible assets                                                               274,834          281,149               274,106          280,652   284,153

    TCE ratio(3)                                                                      9.6%             8.9%                  9.1%             8.6%      8.6%



    Beginning on January 1, 2014, we
     calculate our regulatory capital
     under Basel III Standardized
     Approach subject to transition
     provisions. Prior to January 1,
     2014, we calculated regulatory
     capital under Basel I as shown in
     footnote 13.



    (Dollars in millions)(unaudited)                 2014             2013                        2013             2013  2013
                                                   Q1                                            Q3               Q2    Q1
                                                                     Q4
    ---                                                             ---

    Regulatory Capital Ratios(4)                                           Prior periods disclosed under Basel I.
                                                                                  See footnote 13.
    ----------------------------

    Common equity excluding AOCI                           $42,658

    Adjustments: AOCI(5)(6)                                   (182)

    Goodwill(1)                                            (13,811)

    Intangible Assets(1)(6)                                   (314)

    Other                                                       83
                                                               ---


    Common equity Tier 1 capital                            28,434

    Adjustments: Tier 1 capital instruments(2)                 853

    Additional Tier 1 capital adjustments                      (30)
                                                               ---


    Tier 1 capital                                          29,257
                                                            ------


    Adjustments: Tier 2 capital instruments(2)               1,764

    Qualifying allowance for loan and lease losses           2,751

    Additional Tier 2 capital adjustments                        6
                                                               ---


    Tier 2 capital                                           4,521
                                                             -----


    Total risk-based capital(7)                            $33,778
                                                           -------


    Risk-weighted assets(8)                               $219,151
                                                          ========


    Average assets for the leverage ratio                 $280,907
                                                          ========




    Common equity Tier 1 capital ratio(9)                     13.0%

    Tier 1 risk-based capital ratio(10)                       13.4

    Total risk-based capital ratio(11)                        15.4

    Tier 1 leverage ratio(12)                                 10.4


    (1)              Includes impact of
                     related deferred taxes


    (2)             Includes related surplus


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


    (4)            Regulatory capital ratios as
                   of the end of Q1 2014 are
                   preliminary and therefore
                   subject to change.


    (5)            Amounts presented are net
                   of tax.


    (6)            Amounts based on transition
                   provisions for regulatory
                   capital deductions and
                   adjustments of 20% for 2014.


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


    (8)            Risk-weighted assets
                   continue to be calculated
                   based on Basel I in 2014
                   consistent with the
                   transition provisions.


    (9)              Common equity Tier 1
                     capital ratio is a
                     regulatory measure
                     calculated based on Common
                     equity Tier 1 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.


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


    (13)             Table below shows prior period
                     regulatory capital measures
                     calculated under Basel I. We
                     adopted ASU 2014-01 "Accounting
                     for Investments in Qualified
                     Affordable Housing Projects" as
                     of January 1, 2014. Regulatory
                     measures calculated under Basel
                     I for prior quarters have been
                     restated to conform to this
                     presentation.



    (Dollars in millions)(unaudited)                                                2013             2013             2013         2013
                                                                                  Q4                Q3              Q2      Q1
    ---                                                                           ---              ---              ---    ---

    Total stockholders' equity                                                            $41,632          $41,645              $40,947   $41,211

    Adjustments: Net unrealized (gains) losses on AFS securities recorded in AOCI             791              736                  503      (583)

    Net (gains) losses on cash flow hedges recorded in AOCI                                   136              123                  175        15

    Disallowed goodwill and other intangible assets                                       (14,326)         (14,263)             (14,309)  (14,360)

    Disallowed deferred tax assets                                                              -                -                    -         -

    Noncumulative perpetual preferred stock                                                  (853)            (853)                (853)     (853)

    Other                                                                                      (5)              (5)                  (5)       (4)
                                                                                              ---              ---                  ---       ---


    Tier 1 common capital                                                                  27,375           27,383               26,458    25,426

    Adjustments: Noncumulative perpetual preferred stock                                      853              853                  853       853

    Tier 1 restricted core capital items                                                        2                2                    2         1
                                                                                              ---              ---                  ---       ---


    Tier 1 capital                                                                         28,230           28,238               27,313    26,280
                                                                                           ------           ------               ------    ------


    Adjustments: Long-term debt qualifying as Tier 2 capital                                1,914            1,909                2,104     2,121

    Qualifying allowance for loan and lease losses                                          2,833            2,726                2,781     2,737

    Other Tier 2 components                                                                    10                8                   12        11
                                                                                              ---              ---                  ---       ---


    Tier 2 capital                                                                          4,757            4,643                4,897     4,869
                                                                                            -----            -----                -----     -----


    Total risk-based capital                                                              $32,987          $32,881              $32,210   $31,149
                                                                                          =======          =======              =======   =======


    Risk-weighted assets                                                                 $224,556         $215,809             $220,150  $216,441
                                                                                         ========         ========             ========  ========


    Average assets for the leverage ratio                                                $280,574         $281,978             $282,962  $288,210
                                                                                         ========         ========             ========  ========


    Tier 1 common ratio                                                                      12.2%            12.7%                12.0%     11.7%

    Tier 1 risk-based capital ratio                                                          12.6             13.1                 12.4      12.1

    Total risk-based capital ratio                                                           14.7             15.2                 14.6      14.4

    Tier 1 leverage ratio                                                                    10.1             10.0                  9.7       9.1

SOURCE Capital One Financial Corporation