CAPITAL ONE FINANCIAL CORPORATION MCLEAN, Va., April 23, 2015 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2015 of $1.2 billion, or $2.00 per diluted common share, compared to the fourth quarter of 2014 with net income of $999 million, or $1.73 per diluted common share, and the first quarter of 2014 with net income of $1.2 billion, or $1.96 per diluted common share.
"In the first quarter, we continued to post strong results across our businesses," said Richard D. Fairbank, Chair and Chief Executive Officer. "As always, we're focused on sustaining strong performance and shareholder value. We are pursuing growth and resilience, managing costs tightly while we invest to grow, and actively working to return capital to shareholders."
All comparisons below are for the first quarter of 2015 compared with the fourth quarter of 2014 unless otherwise noted.
First Quarter 2015 Income Summary:
-- Total net revenue decreased 3 percent to $5.6 billion.
-- Total non-interest expense decreased 7 percent to $3.0 billion:
-- 26 percent decrease in marketing.
-- 3 percent decrease in operating expense.
-- Pre-provision earnings increased 3 percent to $2.6 billion.
-- Provision for credit losses decreased 16 percent to $935 million.
-- Mortgage representation & warranty benefit of $19 million ($12 million
net of tax) in discontinued operations.
First Quarter 2015 Balance Sheet Summary:
-- Common equity Tier 1 capital ratio under Basel III Standardized Approach
of 12.5 percent at March 31, 2015.
-- Net interest margin of 6.57 percent, down 24 basis points.
-- Period-end loans held for investment in the quarter decreased $4.3
billion, or 2 percent, to $204.0 billion.
-- Domestic Card period-end loans decreased $3.6 billion, or 5 percent,
to $74.1 billion.
-- Consumer Banking period-end loans decreased $60 million, or less
than 1 percent, to $71.4 billion:
-- Auto period-end loans increased $1.1 billion, or 3 percent, to
$38.9 billion.
-- Home loans period-end loans decreased $1.1 billion, or 4
percent, to $28.9 billion, driven by run-off of acquired
portfolios.
-- Commercial Banking period-end loans decreased $149 million, or less than
1 percent, to $50.7 billion.
-- Average loans held for investment in the quarter increased $1.8 billion,
or less than 1 percent, to $205.2 billion.
-- Domestic Card average loans increased $744 million, or 1 percent, to
$74.8 billion.
-- Consumer Banking average loans increased $187 million, or less than
1 percent, to $71.4 billion:
-- Auto average loans increased $1.3 billion, or 4 percent, to
$38.4 billion.
-- Home loans average loans decreased by $1.1 billion, or 4
percent, to $29.5 billion, driven by run-off of acquired
portfolios.
-- Commercial Banking average loans increased $731 million, or 1 percent,
to $51.1 billion.
-- Period-end total deposits increased $4.9 billion, or 2 percent, to
$210.4 billion, while average deposits increased $2.5 billion to $207.9
billion.
-- Interest-bearing deposit rate remained relatively flat at 0.59 percent.
Earnings Conference Call Webcast Information
The company will hold an earnings conference call on April 23, 2015 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page (www.capitalone.com). Choose "About Us", then choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through May 5, 2015 at 5:00 PM Eastern Time.
Forward-Looking Statements
Certain statements in this release are forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2014.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $210.4 billion in deposits and $306.2 billion in total assets as of March 31, 2015. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
Exhibit 99.2
Capital One Financial Corporation
Financial Supplement
First Quarter 2015(1)
Table of Contents
Capital One Financial Corporation Consolidated Results Page
----
Table 1: Financial Summary-Consolidated 1
Table 2: Selected Metrics-Consolidated 3
Table 3: Consolidated Statements of Income 4
Table 4: Consolidated Balance Sheets 6
Table 5: Notes to Financial & Selected Metrics
and Consolidated Financial Statements
(Tables 1-4) 8
Table 6: Average Balances, Net Interest Income
and Net Interest Margin 9
Table 7: Loan Information and Performance
Statistics 10
Business Segments Detail
Table 8: Financial Summary-Business Segments 12
Table 9: Financial & Statistical Summary-
Credit Card Business 13
Table 10: Financial & Statistical Summary-
Consumer Banking Business 15
Table 11: Financial & Statistical Summary-
Commercial Banking Business 16
Table 12: Financial & Statistical Summary-Other
and Total 17
Table 13: Notes to Loan and Business Segments
Disclosures (Tables 7-12) 18
Other
Table 14: Reconciliation of Non-GAAP Measures
and Calculation of Regulatory Capital
Measures 19
__________
(1) The information contained in
this Financial Supplement is
preliminary and based on data
available at the time of the
earnings presentation.
Investors should refer to our
Quarterly Report on Form 10-Q
for the period ended March 31,
2015 once it is filed with the
Securities and Exchange
Commission.
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 1: Financial Summary-Consolidated(1)
2015 Q1 vs.
-----------
(Dollars in millions, except per
share data and as noted)
(unaudited) 2015 2014 2014 2014 2014 2014 2014
Q1 Q4 Q3 Q2 Q1 Q4 Q1
--- --- --- --- --- --- ---
Earnings
--------
Net interest income $4,576 $4,656 $4,497 $4,315 $4,350 (2)% 5%
Non-interest income(2) 1,071 1,157 1,142 1,153 1,020 (7) 5
----- ----- ----- -----
Total net revenue(3) $5,647 $5,813 $5,639 $5,468 $5,370 (3) 5
------ ------ ------ ------ ------
Provision for credit losses 935 1,109 993 704 735 (16) 27
Non-interest expense:
Marketing 375 509 392 335 325 (26) 15
Amortization of intangibles 110 123 130 136 143 (11) (23)
Acquisition-related(4) 7 10 13 18 23 (30) (70)
Operating expenses 2,557 2,642 2,450 2,490 2,441 (3) 5
----- ----- -----
Total non-interest expense 3,049 3,284 2,985 2,979 2,932 (7) 4
----- ----- ----- ----- -----
Income from continuing operations
before income taxes 1,663 1,420 1,661 1,785 1,703 17 (2)
Income tax provision 529 450 536 581 579 18 (9)
--- --- --- --- ---
Income from continuing
operations, net of tax 1,134 970 1,125 1,204 1,124 17 1
Income (loss) from discontinued
operations, net of tax(2) 19 29 (44) (10) 30 (34) (37)
--- --- --- --- ---
Net income 1,153 999 1,081 1,194 1,154 15 -
Dividends and undistributed
earnings allocated to
participating securities(5) (6) (4) (5) (4) (5) 50 20
Preferred stock dividends(5) (32) (21) (20) (13) (13) 52 146
Net income available to common
stockholders $1,115 $974 $1,056 $1,177 $1,136 14 (2)
====== ==== ====== ====== ======
Common Share Statistics
-----------------------
Basic earnings per common
share:(5)
Net income from continuing
operations $2.00 $1.71 $1.97 $2.09 $1.94 17% 3%
Income (loss) from discontinued
operations 0.03 0.05 (0.08) (0.02) 0.05 (40) (40)
Net income per basic common share $2.03 $1.76 $1.89 $2.07 $1.99 15 2
===== ===== ===== ===== =====
Diluted earnings per common
share:(5)
Net income from continuing
operations $1.97 $1.68 $1.94 $2.06 $1.91 17 3
Income (loss) from discontinued
operations 0.03 0.05 (0.08) (0.02) 0.05 (40) (40)
Net income per diluted common
share $2.00 $1.73 $1.86 $2.04 $1.96 16 2
===== ===== ===== ===== =====
Weighted-average common shares
outstanding (in millions) for:
Basic common shares 550.2 554.3 559.9 567.5 571.0 (1) (4)
Diluted common shares 557.2 561.8 567.9 577.6 580.3 (1) (4)
Common shares outstanding (period
end, in millions) 548.0 553.4 558.5 561.8 572.9 (1) (4)
Dividends per common share $0.30 $0.30 $0.30 $0.30 $0.30 - -
Tangible book value per common
share (period end)(6) 52.19 50.32 48.72 47.90 45.88 4 14
2015 Q1 vs.
-----------
(Dollars in millions) (unaudited) 2015 2014 2014 2014 2014 2014 2014
--------------------------------
Q1 Q4 Q3 Q2 Q1 Q4 Q1
--- --- --- --- --- --- ---
Balance Sheet (Period End)
-------------------------
Loans held for investment(7) $203,978 $208,316 $201,592 $198,528 $192,941 (2)% 6%
Interest-earning assets 275,837 277,849 270,001 266,720 259,422 (1) 6
Total assets 306,224 308,167 299,640 297,434 289,814 (1) 6
Interest-bearing deposits 185,208 180,467 178,876 180,970 184,214 3 1
Total deposits 210,440 205,548 204,264 205,890 208,324 2 1
Borrowings 41,029 48,457 42,243 39,114 30,118 (15) 36
Common equity 43,908 43,231 42,682 42,477 41,948 2 5
Total stockholders' equity 45,730 45,053 44,018 43,815 42,801 2 7
Balance Sheet (Average Balances)
-------------------------------
Loans held for investment(7) $205,194 $203,436 $199,422 $194,996 $193,722 1% 6%
Interest-earning assets 278,427 273,436 268,890 263,570 262,659 2 6
Total assets 309,401 304,153 298,913 294,089 293,551 2 5
Interest-bearing deposits 182,998 179,401 179,928 182,053 184,183 2 (1)
Total deposits 207,851 205,355 205,199 206,315 205,842 1 1
Borrowings 46,082 43,479 40,314 35,658 35,978 6 28
Common equity 44,575 43,895 43,489 42,797 42,006 2 6
Total stockholders' equity 46,397 45,576 44,827 43,767 42,859 2 8
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Selected Metrics-Consolidated(1)
2015 Q1 vs.
-----------
(Dollars in millions) (unaudited) 2015 2014 2014 2014 2014 2014 2014
Q1 Q4 Q3 Q2 Q1 Q4 Q1
--- --- --- --- --- --- ---
Performance Metrics
-------------------
Net interest income growth (quarter over quarter) (2)% 4% 4% (1)% (2)% ** **
Non-interest income growth (quarter over quarter) (7) 1 (1) 13 (9) ** **
Total net revenue growth (quarter over quarter) (3) 3 3 2 (3) ** **
Total net revenue margin(8) 8.11 8.50 8.39 8.30 8.18 (39) bps (7) bps
Net interest margin(9) 6.57 6.81 6.69 6.55 6.62 (24) (5)
Return on average assets 1.47 1.28 1.51 1.64 1.53 19 (6)
Return on average tangible assets(10) 1.54 1.34 1.59 1.73 1.62 20 (8)
Return on average common equity(11) 9.84 8.61 10.12 11.09 10.53 123 (69)
Return on average tangible common equity(12) 15.00 13.28 15.73 17.47 16.83 172 (183)
Non-interest expense as a percentage of average loans held for
investment 5.94 6.46 5.99 6.11 6.05 (52) (11)
Efficiency ratio(13) 53.99 56.49 52.93 54.48 54.60 (250) (61)
Effective income tax rate for continuing operations 31.8 31.7 32.3 32.5 34.0 10 (220)
Employees (in thousands), period end(14) 47.0 46.0 44.9 44.6 44.9 2% 5%
Credit Quality Metrics(7)
------------------------
Allowance for loan and lease losses $4,405 $4,383 $4,212 $3,998 $4,098 1% 7%
Allowance as a percentage of loans held for investment 2.16% 2.10% 2.09% 2.01% 2.12% 6 bps 4 bps
Allowance as a percentage of loans held for investment (excluding
acquired loans) 2.41 2.36 2.37 2.30 2.45 5 (4)
Net charge-offs $881 $915 $756 $812 $931 (4)% (5)%
Net charge-off rate(15) 1.72% 1.80% 1.52% 1.67% 1.92% (8) bps (20) bps
Net charge-off rate (excluding acquired loans)(15) 1.93 2.04 1.73 1.93 2.24 (11) (31)
30+ day performing delinquency rate 2.32 2.62 2.46 2.24 2.22 (30) 10
30+ day performing delinquency rate (excluding acquired loans) 2.61 2.95 2.81 2.58 2.59 (34) 2
30+ day delinquency rate 2.58 2.91 2.76 2.53 2.51 (33) 7
30+ day delinquency rate (excluding acquired loans) 2.90 3.28 3.14 2.91 2.93 (38) (3)
Capital Ratios(16)
-----------------
Common equity Tier 1 capital ratio 12.5% 12.5% 12.7% 12.7% 13.0% - bps (50) bps
Tier 1 risk-based capital ratio 13.2 13.2 13.3 13.3 13.4 - (20)
Total risk-based capital ratio 15.1 15.1 15.2 15.4 15.4 - (30)
Tier 1 leverage ratio 10.7 10.8 10.6 10.7 10.4 (10) 30
Tangible common equity ("TCE") ratio(17) 9.8 9.5 9.6 9.5 9.6 30 20
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3: Consolidated Statements of Income
Three Months Ended 2015 Q1 vs.
------------------ -----------
2015 2014 2014 2014 2014
(Dollars in millions, except per share data and as noted) (unaudited) Q1 Q4 Q1 Q4 Q1
-------------------------------------------------------------------- --- --- --- --- ---
Interest income:
Loans, including loans held for sale $4,540 $4,613 $4,307 (2)% 5%
Investment securities 406 405 416 - (2)
Other 28 27 30 4 (7)
Total interest income 4,974 5,045 4,753 (1) 5
----- ----- -----
Interest expense:
Deposits 271 269 276 1 (2)
Securitized debt obligations 33 36 38 (8) (13)
Senior and subordinated notes 79 73 77 8 3
Other borrowings 15 11 12 36 25
Total interest expense 398 389 403 2 (1)
--- --- ---
Net interest income 4,576 4,656 4,350 (2) 5
Provision for credit losses 935 1,109 735 (16) 27
Net interest income after provision for credit losses 3,641 3,547 3,615 3 1
----- ----- -----
Non-interest income:(2)
Service charges and other customer-related fees 437 462 474 (5) (8)
Interchange fees, net 496 523 440 (5) 13
Net other-than-temporary impairment recognized in earnings (15) (9) (5) 67 200
Other 153 181 111 (15) 38
Total non-interest income 1,071 1,157 1,020 (7) 5
----- ----- -----
Non-interest expense:
Salaries and associate benefits 1,211 1,179 1,161 3 4
Occupancy and equipment 435 474 405 (8) 7
Marketing 375 509 325 (26) 15
Professional services 296 329 287 (10) 3
Communications and data processing 202 203 196 - 3
Amortization of intangibles 110 123 143 (11) (23)
Other 420 467 415 (10) 1
Total non-interest expense 3,049 3,284 2,932 (7) 4
----- ----- -----
Income from continuing operations before income taxes 1,663 1,420 1,703 17 (2)
Income tax provision 529 450 579 18 (9)
--- --- ---
Income from continuing operations, net of tax 1,134 970 1,124 17 1
Income from discontinued operations, net of tax(2) 19 29 30 (34) (37)
--- --- ---
Net income 1,153 999 1,154 15 -
Dividends and undistributed earnings allocated to participating securities(5) (6) (4) (5) 50 20
Preferred stock dividends(5) (32) (21) (13) 52 146
Net income available to common stockholders $1,115 $974 $1,136 14 (2)
====== ==== ======
Three Months Ended 2015 Q1 vs.
------------------ -----------
2015 2014 2014 2014 2014
(Dollars in millions, except per share data and as noted) (unaudited) Q1 Q4 Q1 Q4 Q1
-------------------------------------------------------------------- --- --- --- --- ---
Basic earnings per common share:(5)
Net income from continuing operations $2.00 $1.71 $1.94 17% 3%
Income from discontinued operations 0.03 0.05 0.05 (40) (40)
Net income per basic common share $2.03 $1.76 $1.99 15 2
===== ===== =====
Diluted earnings per common share:(5)
Net income from continuing operations $1.97 $1.68 $1.91 17 3
Income from discontinued operations 0.03 0.05 0.05 (40) (40)
Net income per diluted common share $2.00 $1.73 $1.96 16 2
===== ===== =====
Weighted average common shares outstanding (in millions):
Basic common shares 550.2 554.3 571.0 (1) (4)
Diluted common shares 557.2 561.8 580.3 (1) (4)
Dividends paid per common share $0.30 $0.30 $0.30 - -
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets(1)
March 31, 2015 vs.
------------------
(Dollars in millions) (unaudited) March 31, December 31, March 31, December 31, March 31,
2015 2014 2014 2014 2014
--- ---- ---- ---- ---- ----
Assets:
Cash and cash equivalents:
Cash and due from banks $2,853 $3,147 $3,373 (9)% (15)%
Interest-bearing deposits with banks 6,038 4,095 2,641 47 129
Federal funds sold and securities purchased under agreements to
resell 0 0 168 - **
--- --- ---
Total cash and cash equivalents 8,891 7,242 6,182 23 44
Restricted cash for securitization investors 234 234 550 - (57)
Securities available for sale, at fair value 39,321 39,508 40,721 - (3)
Securities held to maturity, at carrying value 23,241 22,500 20,150 3 15
Loans held for investment:(7)
Unsecuritized loans held for investment 170,040 171,771 156,072 (1) 9
Restricted loans for securitization investors 33,938 36,545 36,869 (7) (8)
------ ------ ------
Total loans held for investment 203,978 208,316 192,941 (2) 6
Allowance for loan and lease losses (4,405) (4,383) (4,098) 1 7
------ ------ ------
Net loans held for investment 199,573 203,933 188,843 (2) 6
Loans held for sale, at lower of cost or fair value 1,331 626 259 113 414
Premises and equipment, net 3,684 3,685 3,807 - (3)
Interest receivable 1,078 1,079 1,045 - 3
Goodwill 13,978 13,978 13,974 - -
Other assets 14,893 15,382 14,283 (3) 4
------ ------ ------
Total assets $306,224 $308,167 $289,814 (1) 6
======== ======== ========
March 31, 2015 vs.
------------------
(Dollars in millions) (unaudited) March 31, December 31, March 31, December 31, March 31,
2015 2014 2014 2014 2014
--- ---- ---- ---- ---- ----
Liabilities:
Interest payable $195 $254 $182 (23)% 7%
Deposits:
Non-interest bearing deposits 25,232 25,081 24,110 1 5
Interest-bearing deposits 185,208 180,467 184,214 3 1
------- ------- -------
Total deposits 210,440 205,548 208,324 2 1
Securitized debt obligations 12,717 11,624 9,783 9 30
Other debt:
Federal funds purchased and securities loaned or sold under
agreements to repurchase 933 880 1,544 6 (40)
Senior and subordinated notes 20,559 18,684 14,891 10 38
Other borrowings 6,820 17,269 3,900 (61) 75
----- ------ -----
Total other debt 28,312 36,833 20,335 (23) 39
Other liabilities 8,830 8,855 8,389 - 5
----- ----- -----
Total liabilities 260,494 263,114 247,013 (1) 5
------- ------- -------
Stockholders' equity:
Preferred stock 0 0 0 - -
Common stock 6 6 6 - -
Additional paid-in capital, net 27,939 27,869 26,605 - 5
Retained earnings 24,925 23,973 21,259 4 17
Accumulated other comprehensive income ("AOCI") (212) (430) (710) (51) (70)
Treasury stock, at cost (6,928) (6,365) (4,359) 9 59
------ ------ ------
Total stockholders' equity 45,730 45,053 42,801 2 7
------ ------ ------
Total liabilities and stockholders' equity $306,224 $308,167 $289,814 (1) 6
======== ======== ========
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 5: Notes to Financial & Selected Metrics and Consolidated Financial Statements (Tables 1 - 4)
** Not meaningful.
(1) As of January 1, 2015, we changed our accounting principle for presenting qualifying derivative assets and liabilities, as well as the related fair value amounts recognized for the right to reclaim cash collateral (a
receivable) or the obligation to return cash collateral (a payable), from a gross basis of presentation to a net basis. Prior period results and related metrics have been recast to conform to this presentation. Prior
period regulatory ratios have not been recast.
(2) We recorded the following related to the mortgage representation and warranty reserve:
2015 2014 2014 2014 2014
(Dollars in millions) (unaudited) Q1 Q4 Q3 Q2 Q1
-------------------------------- --- --- --- --- ---
Provision (benefit) for mortgage representation and warranty losses
before income taxes:
Recorded in continuing operations $1 $(11) $ - $(29) $14
Recorded in discontinued operations (19) (41) 70 11 (47)
Total (benefit) provision for mortgage representation and warranty
losses before income taxes $(18) $(52) $70 $(18) $(33)
---- ---- --- ---- ----
Historically, the majority of the provision
for representation and warranty losses is
included net of tax in discontinued
operations, with the remaining amount
included before income taxes in non-
interest income. The mortgage representation
and warranty reserve was $673 million as of
March 31, 2015, $731 million as of December
31, 2014 and $1.1 billion as of March 31,
2014.
(3) Total net revenue was reduced by
$147 million in Q1 2015, $165
million in Q4 2014, $164 million
in Q3 2014, $153 million in Q2
2014 and $163 million in Q1 2014
for the estimated uncollectible
amount of billed finance charges
and fees.
(4) Acquisition-related costs include
transaction costs, legal and
other professional or consulting
fees, restructuring costs, and
integration expense.
(5) Dividends and undistributed
earnings allocated to
participating securities,
earnings per share, and preferred
stock dividends are computed
independently for each period.
Accordingly, the sum of each
quarter may not agree to the
year-to-date total.
(6) Tangible book value per common
share is a non-GAAP measure
calculated based on tangible
common equity divided by common
shares outstanding. See "Table
14: Reconciliation of Non-GAAP
Measures and Calculation of
Regulatory Capital Measures" for
additional information on
tangible common equity.
(7) Loans held for investment includes
acquired loans. We use the term
"acquired loans" to refer to a
certain portion of the loans
acquired in the following
transactions: (i) the February
2012 transaction where we
acquired the assets and assumed
the liabilities of substantially
all of ING Direct; (ii) the
February 2009 Chevy Chase Bank
acquisition; and (iii) May 2012
transaction in which we acquired
substantially all of HSBC's
credit card and private-label
credit card business in the
United States. These loans were
recorded at fair value at
acquisition and subsequently
accounted for based on estimated
cash flows expected to be
collected over the life of the
loans (under the accounting
standard formerly known as "SOP
03-3", or Accounting Standard
Codification 310-30). The table
below presents amounts related to
acquired loans accounted for
under SOP 03-3:
2015 2014 2014 2014 2014
(Dollars in millions) (unaudited) Q1 Q4 Q3 Q2 Q1
-------------------------------- --- --- --- --- ---
Acquired loans accounted for under SOP 03-3:
Period-end unpaid principal balance $23,248 $24,473 $25,726 $27,117 $28,549
Period-end loans held for investment 22,334 23,500 24,685 26,019 27,390
Average loans held for investment 22,773 23,907 25,104 26,491 27,760
(8) Calculated based on annualized
total net revenue for the period
divided by average interest-
earning assets for the period.
(9) Calculated based on annualized net
interest income for the period
divided by average interest-
earning assets for the period.
(10) Calculated based on annualized
income from continuing operations,
net of tax, for the period divided
by average tangible assets for the
period. Return on average tangible
assets is a non-GAAP measure and
See "Table 14: Reconciliation of
Non-GAAP Measures and Calculation
of Regulatory Capital Measures"
for additional information.
(11) Calculated based on the annualized
sum of (i) income from continuing
operations, net of tax; (ii) less
dividends and undistributed
earnings allocated to
participating securities; (iii)
less preferred stock dividends,
for the period, divided by average
common equity for the period. Our
calculation of return on average
common equity may not be
comparable to similarly titled
measures reported by other
companies.
(12) Calculated based on the annualized
sum of (i) income from continuing
operations, net of tax; (ii) less
dividends and undistributed
earnings allocated to
participating securities; (iii)
less preferred stock dividends,
for the period, divided by average
tangible common equity for the
period. Return on average tangible
common equity is a non-GAAP
measure and our calculation may
not be comparable to similarly
titled measures reported by other
companies. See "Table 14:
Reconciliation of Non-GAAP
Measures and Calculation of
Regulatory Capital Measures" for
additional information.
(13) Calculated based on total non-
interest expense for the period
divided by total net revenue for
the period.
(14) Effective Q2 2014, we changed our
presentation from total full-time
equivalent employees to total
employees. All prior periods have
been recast to conform to the
current presentation.
(15) Calculated based on annualized net
charge-offs for the period
divided by average loans held for
investment for the period.
(16) Ratios as of the end of Q1 2015 are
preliminary and therefore subject
to change. See "Table 14:
Reconciliation of Non-GAAP
Measures and Calculation of
Regulatory Capital Measures" for
information on the calculation of
each of these ratios.
(17) TCE ratio is a non-GAAP measure
calculated based on TCE divided by
tangible assets. See "Table 14:
Reconciliation of Non-GAAP
Measures and Calculation of
Regulatory Capital Measures" for
additional information.
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 6: Average Balances, Net Interest Income and Net Interest Margin
2015 Q1 2014 Q4 2014 Q1
------- ------- -------
Average Balance Interest Yield/Rate(1) Average Balance Interest Yield/Rate(1) Average Balance Interest Yield/Rate(1)
Income/Expense(1) Income/Expense(1) Income/Expense(1)
----------------- ----------------- -----------------
(Dollars in millions) (unaudited)
--------------------------------
Interest-earning assets:
Loans, including loans held for
sale $205,854 $4,540 8.82% $204,137 $4,613 9.04% $194,020 $4,307 8.88%
Investment securities 63,181 406 2.57 62,952 405 2.57 62,124 416 2.68
Cash equivalents and other 9,392 28 1.19 6,347 27 1.70 6,515 30 1.84
---
Total interest-earning assets $278,427 $4,974 7.15 $273,436 $5,045 7.38 $262,659 $4,753 7.24
-------- ------ -------- ------ -------- ------
Interest-bearing liabilities:
Interest-bearing deposits $182,998 $271 0.59 $179,401 $269 0.60 $184,183 $276 0.60
Securitized debt obligations 11,563 33 1.14 11,479 36 1.25 10,418 38 1.46
Senior and subordinated notes 20,595 79 1.53 18,680 73 1.56 14,162 77 2.17
Other borrowings and liabilities 14,721 15 0.41 14,058 11 0.31 11,398 12 0.42
------ ------
Total interest-bearing liabilities $229,877 $398 0.69 $223,618 $389 0.70 $220,161 $403 0.73
-------- ---- ---- -------- ---- ---- -------- ---- ----
Net interest income/spread $4,576 6.46 $4,656 6.68 $4,350 6.51
====== ====== ====== ----
Impact of non-interest bearing
funding 0.11 0.13 0.11
---- ----
Net interest margin 6.57% 6.81% 6.62%
==== ==== ====
__________
(1) Interest income and interest
expense and the calculation
of average yields on
interest-earning assets and
average rates on interest-
bearing liabilities include
the impact of hedge
accounting.
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics(1)
2015 Q1 vs.
-----------
(Dollars in millions) (unaudited) 2015 2014 2014 2014 2014 2014 2014
Q1 Q4 Q3 Q2 Q1 Q4 Q1
--- --- --- --- --- --- --- ---
Period-end Loans Held For Investment
------------------------------------
Credit card:
Domestic credit card $74,131 $77,704 $73,143 $71,165 $68,275 (5)% 9%
International credit card 7,623 8,172 7,488 7,853 7,575 (7) 1
----- ----- ----- ----- -----
Total credit card 81,754 85,876 80,631 79,018 75,850 (5) 8
------ ------ ------ ------ ------
Consumer banking:
Auto 38,937 37,824 36,254 34,792 33,080 3 18
Home loan 28,905 30,035 31,203 32,644 34,035 (4) (15)
Retail banking 3,537 3,580 3,604 3,626 3,612 (1) (2)
----- ----- ----- ----- -----
Total consumer banking 71,379 71,439 71,061 71,062 70,727 - 1
------ ------ ------ ------ ------
Commercial banking:
Commercial and multifamily real estate 22,831 23,137 22,895 22,040 21,256 (1) 7
Commercial and industrial 27,172 26,972 26,071 25,402 24,064 1 13
------ ------ ------ ------ ------
Total commercial lending 50,003 50,109 48,966 47,442 45,320 - 10
Small-ticket commercial real estate 738 781 822 879 910 (6) (19)
--- --- --- --- ---
Total commercial banking(2) 50,741 50,890 49,788 48,321 46,230 - 10
------ ------ ------ ------ ------
Other loans 104 111 112 127 134 (6) (22)
Total loans held for investment(2) $203,978 $208,316 $201,592 $198,528 $192,941 (2) 6
======== ======== ======== ======== ========
Average Loans Held For Investment
---------------------------------
Credit card:
Domestic credit card $74,770 $74,026 $71,784 $69,376 $69,810 1% 7%
International credit card 7,811 7,714 7,710 7,621 7,692 1 2
----- ----- ----- ----- -----
Total credit card 82,581 81,740 79,494 76,997 77,502 1 7
------ ------ ------ ------ ------
Consumer banking:
Auto 38,387 37,072 35,584 33,972 32,387 4 19
Home loan 29,493 30,604 31,859 33,299 34,646 (4) (15)
Retail banking 3,561 3,578 3,605 3,613 3,630 - (2)
----- ----- ----- ----- -----
Total consumer banking 71,441 71,254 71,048 70,884 70,663 - 1
------ ------ ------ ------ ------
Commercial banking:
Commercial and multifamily real estate 23,120 23,129 22,409 21,484 20,962 - 10
Commercial and industrial 27,190 26,409 25,512 24,611 23,541 3 16
------ ------ ------ ------ ------
Total commercial lending 50,310 49,538 47,921 46,095 44,503 2 13
Small-ticket commercial real estate 760 801 845 896 932 (5) (18)
--- --- --- --- ---
Total commercial banking 51,070 50,339 48,766 46,991 45,435 1 12
------ ------ ------ ------ ------
Other loans 102 103 114 124 122 (1) (16)
Total average loans held for investment $205,194 $203,436 $199,422 $194,996 $193,722 1 6
======== ======== ======== ======== ========
Net Charge-off Rates
--------------------
Credit card:
Domestic credit card 3.55% 3.39% 2.83% 3.52% 4.01% 16 bps (46) bps
International credit card 2.80 3.34 3.32 3.93 4.17 (54) (137)
Total credit card 3.48 3.38 2.88 3.56 4.02 10 (54)
2015 Q1 vs.
-----------
(Dollars in millions) (unaudited) 2015 2014 2014 2014 2014 2014 2014
Q1 Q4 Q3 Q2 Q1 Q4 Q1
--- --- --- --- --- --- --- ---
Consumer banking:
Auto 1.55% 2.14% 1.98% 1.31% 1.66% (59) bps (11) bps
Home loan 0.03 0.07 0.02 0.05 0.06 (4) (3)
Retail banking 0.96 1.28 1.36 0.70 0.95 (32) 1
Total consumer banking 0.89 1.20 1.07 0.69 0.84 (31) 5
Commercial banking:
Commercial and multifamily real estate (0.03) 0.01 (0.10) - 0.01 (4) (4)
Commercial and industrial 0.05 0.10 (0.01) 0.04 0.03 (5) 2
Total commercial lending 0.01 0.06 (0.05) 0.02 0.02 (5) (1)
Small-ticket commercial real estate 0.47 0.80 (0.01) 0.61 0.67 (33) (20)
Total commercial banking 0.02 0.07 (0.05) 0.03 0.04 (5) (2)
Other loans 1.56 0.47 (0.61) 2.18 (0.68) 109 224
Total net charge-offs 1.72 1.80 1.52 1.67 1.92 (8) (20)
---------------------
30+ Day Performing Delinquency Rates
------------------------------------
Credit card:
Domestic credit card 2.92% 3.27% 3.21% 2.83% 3.02% (35) bps (10) bps
International credit card 2.81 2.94 3.34 3.40 3.59 (13) (78)
Total credit card 2.91 3.24 3.22 2.89 3.08 (33) (17)
Consumer banking:
Auto 5.21 6.57 6.14 5.77 5.29 (136) (8)
Home loan 0.18 0.21 0.14 0.13 0.12 (3) 6
Retail banking 0.60 0.64 0.53 0.48 0.74 (4) (14)
Total consumer banking 2.95 3.60 3.22 2.91 2.57 (65) 38
----------------------
Nonperforming Loans and Nonperforming Assets Rates(3)(4)
-------------------------------------------------------
Credit card:
International credit card 0.84% 0.86% 0.98% 1.03% 1.07% (2) bps (23) bps
Total credit card 0.08 0.08 0.09 0.10 0.11 - (3)
Consumer banking:
Auto 0.31 0.52 0.49 0.43 0.34 (21) (3)
Home loan 1.16 1.10 1.04 1.07 1.09 6 7
Retail banking 0.71 0.61 0.54 0.79 1.15 10 (44)
Total consumer banking 0.67 0.77 0.73 0.75 0.74 (10) (7)
Commercial banking:
Commercial and multifamily real estate 0.18 0.27 0.26 0.29 0.27 (9) (9)
Commercial and industrial 0.39 0.39 0.37 0.41 0.36 - 3
Total commercial lending 0.29 0.33 0.32 0.36 0.32 (4) (3)
Small-ticket commercial real estate 1.62 0.96 0.42 1.40 0.73 66 89
Total commercial banking 0.31 0.34 0.32 0.38 0.33 (3) (2)
Other loans 13.33 13.37 14.66 12.74 12.47 (4) 86
Total nonperforming loans 0.35 0.39 0.38 0.41 0.40 (4) (5)
Total nonperforming assets 0.50 0.54 0.53 0.55 0.54 (4) (4)
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Financial Summary-Business Segments(1)
Three Months Ended March 31, 2015
---------------------------------
(Dollars in millions) (unaudited) Total Credit Card Consumer Commercial
Banking Banking Other
-------------------------------- ----- ----------- --------- ----------- -----
Earnings:
Net interest income $4,576 $2,666 $1,434 $461 $15
Non-interest income 1,071 816 158 114 (17)
--- --- --- ---
Total net revenue(5) 5,647 3,482 1,592 575 (2)
Provision for credit losses 935 669 206 60 -
Non-interest expense 3,049 1,776 970 272 31
----- ----- --- --- ---
Income (loss) from continuing operations before income taxes 1,663 1,037 416 243 (33)
Income tax provision (benefit) 529 369 150 88 (78)
Income from continuing operations, net of tax $1,134 $668 $266 $155 $45
====== ==== ==== ==== ===
Three Months Ended December 31, 2014
------------------------------------
(Dollars in millions) (unaudited) Total Credit Card Consumer Commercial
Banking Banking Other
-------------------------------- ----- ----------- --------- ----------- -----
Earnings:
Net interest income $4,656 $2,697 $1,459 $455 $45
Non-interest income 1,157 841 185 132 (1)
----- --- --- --- ---
Total net revenue(5) 5,813 3,538 1,644 587 44
Provision (benefit) for credit losses 1,109 856 222 32 (1)
Non-interest expense 3,284 1,888 1,045 293 58
----- ----- ----- --- ---
Income (loss) from continuing operations before income taxes 1,420 794 377 262 (13)
Income tax provision (benefit) 450 275 135 93 (53)
Income from continuing operations, net of tax $970 $519 $242 $169 $40
==== ==== ==== ==== ===
Three Months Ended March 31, 2014
---------------------------------
(Dollars in millions) (unaudited) Total Credit Card Consumer Commercial
Banking Banking Other
-------------------------------- ----- ----------- --------- ----------- -----
Earnings:
Net interest income (expense) $4,350 $2,525 $1,433 $421 $(29)
Non-interest income 1,020 785 150 87 (2)
----- --- --- --- ---
Total net revenue (loss)(5) 5,370 3,310 1,583 508 (31)
Provision (benefit) for credit losses 735 558 140 40 (3)
Non-interest expense 2,932 1,726 930 255 21
----- ----- --- --- ---
Income (loss) from continuing operations before income taxes 1,703 1,026 513 213 (49)
Income tax provision (benefit) 579 358 183 76 (38)
Income (loss) from continuing operations, net of tax $1,124 $668 $330 $137 $(11)
====== ==== ==== ==== ====
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial & Statistical Summary-Credit Card Business(1)
2015 Q1 vs.
-----------
2015 2014 2014 2014 2014 2014 2014
(Dollars in millions) (unaudited) Q1 Q4 Q3 Q2 Q1 Q4 Q1
-------------------------------- --- --- --- --- --- --- ---
Credit Card
-----------
Earnings:
Net interest income $2,666 $2,697 $2,627 $2,461 $2,525 (1)% 6%
Non-interest income 816 841 846 839 785 (3) 4
--- --- --- --- ---
Total net revenue 3,482 3,538 3,473 3,300 3,310 (2) 5
Provision for credit losses 669 856 787 549 558 (22) 20
Non-interest expense 1,776 1,888 1,730 1,719 1,726 (6) 3
----- ----- ----- ----- -----
Income from continuing operations before income taxes 1,037 794 956 1,032 1,026 31 1
Income tax provision 369 275 332 364 358 34 3
Income from continuing operations, net of tax $668 $519 $624 $668 $668 29 -
==== ==== ==== ==== ====
Selected performance metrics:
Period-end loans held for investment $81,754 $85,876 $80,631 $79,018 $75,850 (5)% 8%
Average loans held for investment 82,581 81,740 79,494 76,997 77,502 1 7
Average yield on loans held for investment(6) 14.30% 14.61% 14.65% 14.22% 14.43% (31) bps (13) bps
Total net revenue margin 16.87 17.31 17.48 17.14 17.08 (44) (21)
Net charge-off rate 3.48 3.38 2.88 3.56 4.02 10 (54)
30+ day performing delinquency rate 2.91 3.24 3.22 2.89 3.08 (33) (17)
30+ day delinquency rate 2.97 3.30 3.29 2.97 3.16 (33) (19)
Nonperforming loan rate(3) 0.08 0.08 0.09 0.10 0.11 - (3)
Card loan premium amortization and other intangible accretion(7) $11 $11 $18 $31 $37 -% (70)%
PCCR intangible amortization 84 87 90 94 98 (3) (14)
Purchase volume(8) 57,383 63,484 57,474 56,358 47,434 (10) 21
Domestic Card
-------------
Earnings:
Net interest income $2,421 $2,432 $2,361 $2,193 $2,255 -% 7%
Non-interest income 743 768 763 768 702 (3) 6
--- --- --- --- ---
Total net revenue 3,164 3,200 3,124 2,961 2,957 (1) 7
Provision for credit losses 610 765 738 504 486 (20) 26
Non-interest expense 1,580 1,676 1,530 1,513 1,545 (6) 2
----- ----- ----- ----- -----
Income from continuing operations before income taxes 974 759 856 944 926 28 5
Income tax provision 353 272 306 337 331 30 7
Income from continuing operations, net of tax $621 $487 $550 $607 $595 28 4
==== ==== ==== ==== ====
2015 Q1 vs.
-----------
2015 2014 2014 2014 2014 2014 2014
(Dollars in millions) (unaudited) Q1 Q4 Q3 Q2 Q1 Q4 Q1
-------------------------------- --- --- --- --- --- --- ---
Selected performance metrics:
Period-end loans held for investment $74,131 $77,704 $73,143 $71,165 $68,275 (5)% 9%
Average loans held for investment 74,770 74,026 71,784 69,376 69,810 1 7
Average yield on loans held for investment(6) 14.23% 14.43% 14.46% 13.95% 14.19% (20) bps 4 bps
Total net revenue margin 16.93 17.29 17.41 17.07 16.94 (36) (1)
Net charge-off rate 3.55 3.39 2.83 3.52 4.01 16 (46)
30+ day performing delinquency rate 2.92 3.27 3.21 2.83 3.02 (35) (10)
30+ day delinquency rate 2.92 3.27 3.21 2.83 3.02 (35) (10)
Purchase volume(8) $52,025 $58,234 $53,690 $52,653 $44,139 (11)% 18%
International Card
------------------
Earnings:
Net interest income $245 $265 $266 $268 $270 (8)% (9)%
Non-interest income 73 73 83 71 83 - (12)
--- --- --- --- ---
Total net revenue 318 338 349 339 353 (6) (10)
Provision for credit losses 59 91 49 45 72 (35) (18)
Non-interest expense 196 212 200 206 181 (8) 8
--- --- --- --- ---
Income from continuing operations before income taxes 63 35 100 88 100 80 (37)
Income tax provision 16 3 26 27 27 ** (41)
---
Income from continuing operations, net of tax $47 $32 $74 $61 $73 47 (36)
=== === === === ===
Selected performance metrics:
Period-end loans held for investment $7,623 $8,172 $7,488 $7,853 $7,575 (7)% 1%
Average loans held for investment 7,811 7,714 7,710 7,621 7,692 1 2
Average yield on loans held for investment(6) 14.93% 16.31% 16.42% 16.74% 16.64% (138) bps (171) bps
Total net revenue margin 16.31 17.55 18.13 17.76 18.38 (124) (207)
Net charge-off rate 2.80 3.34 3.32 3.93 4.17 (54) (137)
30+ day performing delinquency rate 2.81 2.94 3.34 3.40 3.59 (13) (78)
30+ day delinquency rate 3.44 3.60 4.08 4.20 4.41 (16) (97)
Nonperforming loan rate(3) 0.84 0.86 0.98 1.03 1.07 (2) (23)
Purchase volume(8) $5,358 $5,250 $3,784 $3,705 $3,295 2% 63%
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary-Consumer Banking Business(1)
2015 Q1 vs.
-----------
2015 2014 2014 2014 2014 2014 2014
(Dollars in millions) (unaudited) Q1 Q4 Q3 Q2 Q1 Q4 Q1
-------------------------------- --- --- --- --- --- --- ---
Consumer Banking
----------------
Earnings:
Net interest income $1,434 $1,459 $1,425 $1,431 $1,433 (2)% -%
Non-interest income 158 185 179 170 150 (15) 5
--- --- --- --- ---
Total net revenue 1,592 1,644 1,604 1,601 1,583 (3) 1
Provision for credit losses 206 222 198 143 140 (7) 47
Non-interest expense 970 1,045 956 938 930 (7) 4
--- ----- --- --- ---
Income from continuing operations before income taxes 416 377 450 520 513 10 (19)
Income tax provision 150 135 161 186 183 11 (18)
--- --- --- --- ---
Income from continuing operations, net of tax $266 $242 $289 $334 $330 10 (19)
==== ==== ==== ==== ====
Selected performance metrics:
Period-end loans held for investment $71,379 $71,439 $71,061 $71,062 $70,727 -% 1%
Average loans held for investment 71,441 71,254 71,048 70,884 70,663 - 1
Average yield on loans held for investment(6) 6.26% 6.45% 6.18% 6.22% 6.18% (19) bps 8 bps
Auto loan originations $5,185 $5,390 $5,410 $5,376 $4,727 (4)% 10%
Period-end deposits 172,502 168,078 167,624 169,153 171,529 3 1
Average deposits 169,593 167,727 168,407 169,694 168,676 1 1
Average deposit interest rate 0.57% 0.57% 0.58% 0.57% 0.57% - bps - bps
Core deposit intangible amortization $22 $24 $26 $28 $30 (8)% (27)%
Net charge-off rate 0.89% 1.20% 1.07% 0.69% 0.84% (31) bps 5 bps
30+ day performing delinquency rate 2.95 3.60 3.22 2.91 2.57 (65) 38
30+ day delinquency rate 3.46 4.23 3.82 3.49 3.14 (77) 32
Nonperforming loan rate(3) 0.67 0.77 0.73 0.75 0.74 (10) (7)
Nonperforming asset rate(4) 0.95 1.06 1.01 1.01 1.00 (11) (5)
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Financial & Statistical Summary-Commercial Banking Business(1)
2015 Q1 vs.
-----------
2015 2014 2014 2014 2014 2014 2014
(Dollars in millions) (unaudited) Q1 Q4 Q3 Q2 Q1 Q4 Q1
-------------------------------- --- --- --- --- --- --- ---
Commercial Banking
------------------
Earnings:
Net interest income $461 $455 $439 $436 $421 1% 10%
Non-interest income 114 132 122 109 87 (14) 31
--- --- --- --- ---
Total net revenue(5) 575 587 561 545 508 (2) 13
Provision for credit losses 60 32 9 12 40 88 50
Non-interest expense 272 293 268 267 255 (7) 7
--- --- --- --- ---
Income from continuing operations before income taxes 243 262 284 266 213 (7) 14
Income tax provision 88 93 102 95 76 (5) 16
Income from continuing operations, net of tax $155 $169 $182 $171 $137 (8) 13
==== ==== ==== ==== ====
Selected performance metrics:
Period-end loans held for investment(2) $50,741 $50,890 $49,788 $48,321 $46,230 -% 10%
Average loans held for investment 51,070 50,339 48,766 46,991 45,435 1 12
Average yield on loans held for investment(5)(6) 3.22% 3.33% 3.39% 3.50% 3.47% (11) bps (25) bps
Period-end deposits $32,575 $31,954 $31,918 $31,440 $31,485 2% 3%
Average deposits 32,845 32,363 31,772 31,238 31,627 1 4
Average deposit interest rate 0.24% 0.24% 0.24% 0.24% 0.25% - bps (1) bps
Core deposit intangible amortization $4 $5 $5 $5 $6 (20)% (33)%
Net charge-off (recovery) rate 0.02% 0.07% (0.05)% 0.03% 0.04% (5) bps (2) bps
Nonperforming loan rate(3) 0.31 0.34 0.32 0.38 0.33 (3) (2)
Nonperforming asset rate(4) 0.31 0.36 0.35 0.41 0.36 (5) (5)
Risk category:(9)
Noncriticized $48,938 $49,284 $48,408 $46,881 $45,103 (1)% 9%
Criticized performing 1,645 1,431 1,219 1,259 977 15 68
Criticized nonperforming 158 175 161 181 150 (10) 5
--- --- --- --- ---
Total commercial loans $50,741 $50,890 $49,788 $48,321 $46,230 - 10
======= ======= ======= ======= =======
Risk category as a percentage of period-end commercial loans held
for investment:
Noncriticized 96.5% 96.9% 97.3% 97.0% 97.5% (40) bps (100) bps
Criticized performing 3.2 2.8 2.4 2.6 2.2 40 100
Criticized nonperforming 0.3 0.3 0.3 0.4 0.3 - -
--- --- --- --- ---
Total commercial loans 100.0% 100.0% 100.0% 100.0% 100.0% - -
===== ===== ===== ===== =====
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12: Financial & Statistical Summary-Other and Total(1)
2015 Q1 vs.
-----------
2015 2014 2014 2014 2014 2014 2014
(Dollars in millions) (unaudited) Q1 Q4 Q3 Q2 Q1 Q4 Q1
--- --- --- --- --- --- ---
Other
-----
Earnings:
Net interest income (expense) $15 $45 $6 $(13) $(29) (67)% **
Non-interest income (17) (1) (5) 35 (2) ** **
--- --- --- --- ---
Total net (loss) revenue(5) $(2) 44 1 22 (31) ** (94)%
Benefit for credit losses - (1) (1) - (3) ** **
Non-interest expense 31 58 31 55 21 (47) 48
--- --- --- --- ---
Loss from continuing operations before income taxes (33) (13) (29) (33) (49) 154 (33)
Income tax benefit (78) (53) (59) (64) (38) 47 105
--- --- --- --- ---
Income (loss) from continuing operations, net of tax $45 $40 $30 $31 $(11) 13 **
=== === === === ====
Selected performance metrics:
Period-end loans held for investment $104 $111 $112 $127 $134 (6)% (22)%
Average loans held for investment 102 103 114 124 122 (1) (16)
Period-end deposits 5,363 5,516 4,722 5,297 5,310 (3) 1
Average deposits 5,413 5,265 5,020 5,383 5,539 3 (2)
Total
-----
Earnings:
Net interest income $4,576 $4,656 $4,497 $4,315 $4,350 (2)% 5%
Non-interest income 1,071 1,157 1,142 1,153 1,020 (7) 5
----- ----- ----- ----- -----
Total net revenue 5,647 5,813 5,639 5,468 5,370 (3) 5
Provision for credit losses 935 1,109 993 704 735 (16) 27
Non-interest expense 3,049 3,284 2,985 2,979 2,932 (7) 4
----- ----- ----- ----- -----
Income from continuing operations before income taxes 1,663 1,420 1,661 1,785 1,703 17 (2)
Income tax provision 529 450 536 581 579 18 (9)
--- --- --- --- ---
Income from continuing operations, net of tax $1,134 $970 $1,125 $1,204 $1,124 17 1
====== ==== ====== ====== ======
Selected performance metrics:
Period-end loans held for investment(2) $203,978 $208,316 $201,592 $198,528 $192,941 (2)% 6%
Average loans held for investment 205,194 203,436 199,422 194,996 193,722 1 6
Period-end deposits 210,440 205,548 204,264 205,890 208,324 2 1
Average deposits 207,851 205,355 205,199 206,315 205,842 1 1
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Notes to Loan and Business Segments
Disclosures (Tables 7-12)
** Not meaningful.
(1) Certain prior period amounts have been
recast to conform to the current
period presentation.
(2) Includes $3.6 billion and $3.7 billion
of loans to the oil and gas industry
as of March 31, 2015 and December 31,
2014, respectively, representing
approximately 1.8% of total loans held
for investment for both periods.
(3) The nonperforming loan ratios are
calculated based on nonperforming
loans for each category divided by
period-end total loans held for
investments.
(4) Nonperforming assets consist of
nonperforming loans, real estate owned
("REO") and other foreclosed assets.
The nonperforming asset ratios are
calculated based on nonperforming
assets for each category divided by
the combined period-end total of
loans held for investment, REO and
other foreclosed assets for each
respective category. Calculation of
nonperforming assets ratios for
Consumer and Commercial Banking
business are adjusted to exclude the
impact of acquired loans.
(5) Some of our tax-related commercial
investments generate tax-exempt
income or tax credits. Accordingly, we
make certain reclassifications within
our Commercial Banking business
results to present revenues and yields
on a taxable-equivalent basis,
calculated assuming an effective tax
rate approximately equal to our
federal statutory tax rate of 35% with
offsetting reclassifications within
Other category.
(6) Calculated by dividing annualized
interest income for the period by
average loans held for investment
during the period for the specified
loan category. Annualized interest
income excludes various allocations
including funds transfer pricing that
assigns certain balance sheet assets,
deposits and other liabilities and
their related revenue and expenses
attributable to each business segment.
(7) Represents the net reduction in
interest income attributable to non-
SOP 03-3 card loan premium
amortization and other intangible
accretion associated with the May 2012
transaction in which we acquired
substantially all of HSBC's credit
card and private-label credit card
business in the United States.
(8) Includes credit card purchase
transactions, net of returns for both
loans classified as held for
investment and held for sale. Excludes
cash advance and balance transfer
transactions.
(9) Criticized exposures correspond to the
"Special Mention," "Substandard" and
"Doubtful" asset categories defined by
bank regulatory authorities.
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures(1)
Basel III Standardized
----------------------
(Dollars in millions) (unaudited) March 31, December 31, September 30, June 30, March 31,
2015 2014 2014 2014 2014
--- ---- ---- ---- ---- ----
Regulatory Capital Metrics
--------------------------
Common equity Tier 1 capital $29,671 $29,534 $29,116 $28,774 $28,434
Tier 1 capital 31,493 31,355 30,451 30,111 29,257
Total risk-based capital(2) 35,880 35,879 34,860 34,743 33,784
Risk-weighted assets(3) 238,197 236,944 228,759 226,172 219,047
Average assets for the leverage ratio 295,556 291,243 286,070 281,345 280,907
-------------------------------------
Capital Ratios
--------------
Common equity Tier 1 capital ratio(5) 12.5% 12.5% 12.7% 12.7% 13.0%
Tier 1 risk-based capital ratio(6) 13.2 13.2 13.3 13.3 13.4
Total risk-based capital ratio(7) 15.1 15.1 15.2 15.4 15.4
Tier 1 leverage ratio(8) 10.7 10.8 10.6 10.7 10.4
Tangible common equity ("TCE") ratio(9) 9.8 9.5 9.6 9.5 9.6
Reconciliation of Non-GAAP Measures
We report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include tangible common equity ("TCE") and tangible assets. The tables below provide the details of the calculation of our non-GAAP capital measures and regulatory capital. While our non-
GAAP capital measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.
2015 2014 2014 2014 2014
(Dollars in millions) (unaudited) Q1 Q4 Q3 Q2 Q1
--- --- --- --- ---
Tangible Common Equity (Average)
-------------------------------
Average stockholders' equity $46,397 $45,576 $44,827 $43,767 $42,859
Average goodwill and intangible assets(10) (15,339) (15,437) (15,525) (15,615) (15,727)
Noncumulative perpetual preferred stock(11) (1,822) (1,681) (1,338) (970) (853)
Average tangible common equity $29,236 $28,458 $27,964 $27,182 $26,279
======= ======= ======= ======= =======
Tangible Common Equity (Period End)
----------------------------------
Stockholders' equity $45,730 $45,053 $44,018 $43,815 $42,801
Goodwill and intangible assets(10) (15,307) (15,383) (15,472) (15,564) (15,666)
Noncumulative perpetual preferred stock(11) (1,822) (1,822) (1,336) (1,338) (853)
------ ------
Tangible common equity $28,601 $27,848 $27,210 $26,913 $26,282
======= ======= ======= ======= =======
2015 2014 2014 2014 2014
(Dollars in millions) (unaudited) Q1 Q4 Q3 Q2 Q1
-------------------------------- --- --- --- --- ---
Tangible Assets (Average)
------------------------
Average total assets(4) $309,401 $304,153 $298,913 $294,089 $293,551
Average goodwill and intangible assets(10) (15,339) (15,437) (15,525) (15,615) (15,727)
-------
Average tangible assets(4) $294,062 $288,716 $283,388 $278,474 $277,824
======== ======== ======== ======== ========
Tangible Assets (Period End)
---------------------------
Total assets(4) $306,224 $308,167 $299,640 $297,434 $289,814
Goodwill and intangible assets(10) (15,307) (15,383) (15,472) (15,564) (15,666)
-------
Tangible assets(4) $290,917 $292,784 $284,168 $281,870 $274,148
======== ======== ======== ======== ========
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
(Dollars in millions) (unaudited) March 31, December 31, September 30, June 30, March 31,
2015 2014 2014 2014 2014
--- ---- ---- ---- ---- ----
Common equity excluding AOCI $44,120 $43,661 $43,241 $42,848 $42,658
Adjustments:
AOCI(12)(13) (26) (69) (146) 6 (182)
Goodwill(10) (13,801) (13,805) (13,801) (13,811) (13,811)
Intangible assets(10)(13) (450) (243) (266) (289) (314)
Other (172) (10) 88 20 83
Common equity Tier 1 capital $29,671 $29,534 $29,116 $28,774 $28,434
======= ======= ======= ======= =======
Risk-weighted assets(3) $238,197 $236,944 $228,759 $226,172 $219,047
Common equity Tier 1 capital ratio(5) 12.5% 12.5% 12.7% 12.7% 13.0%
__________
(1) Regulatory capital metrics and
capital ratios as of the end of
Q1 2015 are preliminary and
therefore subject to change.
(2) Total risk-based capital equals
the sum of Tier 1 capital and
Tier 2 capital.
(3) As of January 1, 2015, risk-
weighted assets are calculated
under the Basel III Standardized
Approach, subject to transition
provisions. Prior to January 1,
2015 risk-weighted assets were
calculated under Basel I.
(4) As of January 1, 2015, we changed
our accounting principle for
presenting eligible derivative
assets and liabilities, as well
as the related interest
receivables and payables, from a
gross basis of presentation to a
net basis. Prior period average
assets and average tangible
assets have been recast to
conform to this presentation.
Prior period regulatory ratios
have not been recast.
(5) Common equity Tier 1 capital
ratio is a regulatory measure
calculated based on Common
equity Tier 1 capital divided by
risk-weighted assets.
(6) Tier 1 risk-based capital ratio
is a regulatory capital measure
calculated based on Tier 1
capital divided by risk-
weighted assets.
(7) Total risk-based capital ratio
is a regulatory capital measure
calculated based on Total risk-
based capital divided by risk-
weighted assets.
(8) Tier 1 leverage ratio is a
regulatory capital measure
calculated based on Tier 1
capital divided by average
assets, after certain
adjustments.
(9) TCE ratio is a non-GAAP measure
calculated based on TCE divided
by tangible assets.
(10) Includes impact of related
deferred taxes.
(11) Includes related surplus.
(12) Amounts presented are net of tax.
(13) Amounts based on transition
provisions for regulatory
capital deductions and
adjustments of 20% for 2014 and
40% in 2015.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/capital-one-reports-first-quarter-2015-net-income-of-12-billion-or-200-per-share-300071373.html
SOURCE Capital One Financial Corporation
