Net of adjusting items, First Quarter 2024 Net Income of $3.21 per share(1) MCLEAN, Va., April 25, 2024 /PRNewswire/ -- Capital One Financial Corporation (NYSE:COF) today announced net income for the first quarter of 2024 of $1.3 billion, or $3.13 per diluted common share, compared with net income of $706 million, or $1.67 per diluted common share in the fourth quarter of 2023, and with net income of $960 million, or $2.31 per diluted common share in the first quarter of 2023. Adjusted net income(1) for the first quarter of 2024 was $3.21 per diluted common share. "First quarter results continue to show top-line growth, stabilizing consumer credit, and balance sheet strength," said Richard Fairbank, Founder, Chairman, and Chief Executive Officer  "And in the quarter, we announced our definitive agreement to acquire Discover. The acquisition of Discover is a singular opportunity that creates a consumer banking and global payments platform with the capabilities, technology, brands, and customer franchise to create significant value for merchants, consumers, small businesses and shareholders." The quarter included the following adjusting item: (Dollars in millions, except per share data) Pre-Tax Impact After-TaxDiluted EPS Impact FDIC special assessment $                   42 $                          0.08 All comparisons below are for the first quarter of 2024 compared with the fourth quarter of 2023 unless otherwise noted. First Quarter 2024 Income Statement Summary: Total net revenue decreased 1 percent to $9.4 billion. Total non-interest expense decreased 10 percent to $5.1 billion: 19 percent decrease in marketing. 8 percent decrease in operating expenses. Pre-provision earnings(2) increased 13 percent to $4.3 billion. Provision for credit losses decreased $174 million to $2.7 billion: Net charge-offs of $2.6 billion. $91 million loan reserve build. Net interest margin of 6.69 percent, a decrease of 4 basis points. Efficiency ratio of 54.64 percent. Adjusted efficiency ratio(1) of 54.19 percent. Operating efficiency ratio of 43.89 percent. Adjusted operating efficiency ratio(1) of 43.45 percent. First Quarter 2024 Balance Sheet Summary: Common equity Tier 1 capital ratio(3) under Basel III Standardized Approach of 13.1 percent at March 31, 2024. Period-end loans held for investment in the quarter decreased $5.3 billion, or 2 percent, to $315.2 billion. Credit Card period-end loans decreased $4.0 billion, or 3 percent, to $150.6 billion. Domestic Card period-end loans decreased $3.8 billion, or 3 percent, to $143.9 billion. Consumer Banking period-end loans decreased $338 million, or less than 1 percent, to $75.1 billion. Auto period-end loans decreased $274 million, or less than 1 percent, to $73.8 billion. Commercial Banking period-end loans decreased $1.0 billion, or 1 percent, to $89.5 billion. Average loans held for investment in the quarter decreased $1.3 billion, or less than 1 percent, to $314.6 billion. Credit Card average loans increased $1.0 billion, or 1 percent, to $149.6 billion. Domestic Card average loans increased $775 million, or 1 percent, to $142.9 billion. Consumer Banking average loans decreased $1.1 billion, or 2 percent, to $75.1 billion. Auto average loans decreased $1.1 billion, or 1 percent, to $73.8 billion. Commercial Banking average loans decreased $1.1 billion, or 1 percent, to $89.9 billion. Period-end total deposits increased $2.6 billion, or 1 percent, to $351.0 billion, while average deposits increased $329 million, or less than 1 percent, to $345.7 billion. Interest-bearing deposits rate paid increased 6 basis points to 3.53 percent. (1) This is a non-GAAP measure. We believe non-GAAP measures help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on From 8-K on April 25, 2024 with the SEC, "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for a reconciliation and additional information on non-GAAP measures. (2) Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on From 8-K on April 25, 2024 with the SEC, "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for a reconciliation and additional information on non-GAAP measures. (3) Regulatory capital metrics as of March 31, 2024 are preliminary and therefore subject to change.   Earnings Conference Call Webcast Information The company will hold an earnings conference call on April 25, 2024 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). Under "About," 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 9, 2024 at 5:00 PM Eastern Time. Forward-Looking Statements Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Forward-looking statements often use words such as "will," "anticipate," "target," "expect," "think," "estimate," "intend," "plan," "goal," "believe," "forecast," "outlook" or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. 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. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under "Part I—Item 1A. Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the "SEC") and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC. About Capital One Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $351.0 billion in deposits and $481.7 billion in total assets as of March 31, 2024. 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 and Cafés located primarily in New York, Louisiana, Texas, 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(1)(2) First Quarter 2024 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 Summary, 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 Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity 12 Business Segment Results Table 9: Financial Summary—Business Segment Results 13 Table 10: Financial & Statistical Summary—Credit Card Business 14 Table 11: Financial & Statistical Summary—Consumer Banking Business 16 Table 12: Financial & Statistical Summary—Commercial Banking Business 17 Table 13: Financial & Statistical Summary—Other and Total 18 Other Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13) 19 Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures 20 __________ (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, 2024 once it is filed with the Securities and Exchange Commission. (2) This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. ("GAAP"), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for a reconciliation of any non-GAAP financial measures.   CAPITAL ONE FINANCIAL CORPORATION (COF) Table 1: Financial Summary—Consolidated       2024 Q1 (Dollars in millions, except per share data and as noted) 2024 Q1 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2023 Q1 Income Statement Net interest income $      7,488 $      7,519 $      7,423 $      7,113 $      7,186 — 4 % Non-interest income 1,914 1,987 1,943 1,899 1,717 (4) % 11 Total net revenue(1) 9,402 9,506 9,366 9,012 8,903 (1) 6 Provision for credit losses 2,683 2,857 2,284 2,490 2,795 (6) (4) Non-interest expense: Marketing 1,010 1,254 972 886 897 (19) 13 Operating expense 4,127 4,463 3,888 3,908 4,048 (8) 2 Total non-interest expense 5,137 5,717 4,860 4,794 4,945 (10) 4 Income from continuing operations before income taxes 1,582 932 2,222 1,728 1,163 70 36 Income tax provision 302 226 432 297 203 34 49 Net income 1,280 706 1,790 1,431 960 81 33 Dividends and undistributed earnings allocated to participating securities(2) (23) (10) (28) (23) (16) 130 44 Preferred stock dividends (57) (57) (57) (57) (57) — — Net income available to common stockholders $      1,200 $        639 $      1,705 $      1,351 $        887 88 35 Common Share Statistics Basic earnings per common share:(2) Net income per basic common share $       3.14 $       1.67 $       4.46 $       3.53 $       2.32 88 % 35 % Diluted earnings per common share:(2) Net income per diluted common share $       3.13 $       1.67 $       4.45 $       3.52 $       2.31 87 % 35 % Weighted-average common shares outstanding (in millions): Basic 382.2 381.9 382.5 382.8 382.6 — — Diluted 383.4 382.8 383.3 383.7 383.8 — — Common shares outstanding (period-end, in millions) 382.1 380.4 381.0 381.4 382.0 — — Dividends declared and paid per common share $       0.60 $       0.60 $       0.60 $       0.60 $       0.60 — — Tangible book value per common share (period-end)(3) 98.67 99.78 87.97 90.07 90.86 (1) % 9 % 2024 Q1 (Dollars in millions) 2024 Q1 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2023 Q1 Balance Sheet (Period-End) Loans held for investment $  315,154 $  320,472 $  314,780 $  311,323 $  308,836 (2) % 2 % Interest-earning assets 453,557 449,701 445,428 441,250 445,166 1 2 Total assets 481,720 478,464 471,435 467,800 471,660 1 2 Interest-bearing deposits 323,352 320,389 317,217 314,393 318,641 1 1 Total deposits 350,969 348,413 346,011 343,705 349,827 1 — Borrowings 50,361 49,856 49,247 50,258 48,777 1 3 Common equity 52,955 53,244 48,823 49,713 49,807 (1) 6 Total stockholders' equity 57,801 58,089 53,668 54,559 54,653 — 6 Balance Sheet (Average Balances) Loans held for investment $  314,614 $  315,890 $  312,759 $  309,655 $  307,756 — 2 % Interest-earning assets 447,803 446,929 443,532 439,139 435,199 — 3 Total assets 474,995 472,594 469,860 466,652 462,324 1 % 3 Interest-bearing deposits 318,450 316,808 316,032 313,207 308,788 1 3 Total deposits 345,657 345,328 345,013 343,678 340,123 — 2 Borrowings 50,474 51,070 49,736 48,468 48,016 (1) 5 Common equity 53,152 50,786 50,166 50,511 49,927 5 6 Total stockholders' equity 57,998 55,632 55,012 55,357 54,773 4 6   CAPITAL ONE FINANCIAL CORPORATION (COF) Table 2: Selected Metrics—Consolidated 2024 Q1 (Dollars in millions, except as noted) 2024 Q1 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2023 Q1 Performance Metrics Net interest income growth (period over period) — 1 % 4 % (1) % — ** ** Non-interest income growth (period over period) (4) % 2 2 11 (7) % ** ** Total net revenue growth (period over period) (1) 1 4 1 (2) ** ** Total net revenue margin(4) 8.40 8.51 8.45 8.21 8.18 (11) bps 22 bps Net interest margin(5) 6.69 6.73 6.69 6.48 6.60 (4) 9 Return on average assets 1.08 0.60 1.52 1.23 0.83 48 25 Return on average tangible assets(6) 1.11 0.62 1.58 1.27 0.86 49 25 Return on average common equity(7) 9.03 5.03 13.59 10.70 7.11 400 192 Return on average tangible common equity(8) 12.67 7.20 19.59 15.30 10.15 547 252 Efficiency ratio(9) 54.64 60.14 51.89 53.20 55.54 (550) (90) Operating efficiency ratio(10) 43.89 46.95 41.51 43.36 45.47 (306) (158) Effective income tax rate for continuing operations 19.1 24.2 19.4 17.2 17.5 (510) 160 Employees (period-end, in thousands) 51.3 52.0 54.2 55.6 56.1 (1) % (9) % Credit Quality Metrics Allowance for credit losses $  15,380 $  15,296 $  14,955 $  14,646 $  14,318 1 % 7 % Allowance coverage ratio 4.88 % 4.77 % 4.75 % 4.70 % 4.64 % 11 bps 24 bps Net charge-offs $    2,616 $    2,533 $    1,999 $    2,185 $    1,697 3 % 54 % Net charge-off rate(11) 3.33 % 3.21 % 2.56 % 2.82 % 2.21 % 12 bps 112 bps 30+ day performing delinquency rate 3.40 3.71 3.42 3.08 2.88 (31) 52 30+ day delinquency rate 3.67 3.99 3.71 3.36 3.09 (32) 58 Capital Ratios(12) Common equity Tier 1 capital  13.1 % 12.9 % 13.0 % 12.7 % 12.5 % 20 bps 60 bps Tier 1 capital 14.4 14.2 14.3 14.0 13.9 20 50 Total capital 16.3 16.0 16.2 16.0 15.9 30 40 Tier 1 leverage 11.3 11.2 11.2 11.0 10.9 10 40 Tangible common equity ("TCE")(13) 8.1 8.2 7.3 7.6 7.6 (10) 50   CAPITAL ONE FINANCIAL CORPORATION (COF) Table 3: Consolidated Statements of Income 2024 Q1 (Dollars in millions, except as noted) 2024 Q1 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2023 Q1 Interest income: Loans, including loans held for sale $      9,920 $      9,934 $      9,696 $      9,057 $      8,723 — 14 % Investment securities 687 669 627 639 615 3 % 12 Other 570 542 550 470 416 5 37 Total interest income 11,177 11,145 10,873 10,166 9,754 — 15 Interest expense: Deposits 2,812 2,745 2,611 2,277 1,856 2 52 Securitized debt obligations 261 263 249 236 211 (1) 24 Senior and subordinated notes 606 608 579 528 489 — 24 Other borrowings 10 10 11 12 12 — (17) Total interest expense 3,689 3,626 3,450 3,053 2,568 2 44 Net interest income 7,488 7,519 7,423 7,113 7,186 — 4 Provision for credit losses 2,683 2,857 2,284 2,490 2,795 (6) (4) Net interest income after provision for credit losses 4,805 4,662 5,139 4,623 4,391 3 9 Non-interest income: Interchange fees, net 1,145 1,207 1,234 1,213 1,139 (5) 1 Service charges and other customer-related fees 462 424 453 411 379 9 22 Net securities gains (losses) — (34) — — — ** — Other 307 390 256 275 199 (21) 54 Total non-interest income 1,914 1,987 1,943 1,899 1,717 (4) 11 Non-interest expense: Salaries and associate benefits 2,478 2,284 2,274 2,317 2,427 8 2 Occupancy and equipment 554 628 518 506 508 (12) 9 Marketing 1,010 1,254 972 886 897 (19) 13 Professional services 262 359 295 290 324 (27) (19) Communications and data processing 351 345 344 344 350 2 — Amortization of intangibles 19 22 24 22 14 (14) 36 Other 463 825 433 429 425 (44) 9 Total non-interest expense 5,137 5,717 4,860 4,794 4,945 (10) 4 Income from continuing operations before income taxes 1,582 932 2,222 1,728 1,163 70 36 Income tax provision 302 226 432 297 203 34 49 Net income 1,280 706 1,790 1,431 960 81 33 Dividends and undistributed earnings allocated to participating securities(2) (23) (10) (28) (23) (16) 130 44 Preferred stock dividends (57) (57) (57) (57) (57) — — Net income available to common stockholders $      1,200 $         639 $      1,705 $      1,351 $         887 88 35 2024 Q1 2024 Q1 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2023 Q1 Basic earnings per common share:(2) Net income per basic common share $        3.14 $        1.67 $        4.46 $        3.53 $        2.32 88 % 35 % Diluted earnings per common share:(2) Net income per diluted common share $        3.13 $        1.67 $        4.45 $        3.52 $        2.31 87 % 35 % Weighted-average common shares outstanding (in millions): Basic common shares 382.2 381.9 382.5 382.8 382.6 — — Diluted common shares 383.4 382.8 383.3 383.7 383.8 — —   CAPITAL ONE FINANCIAL CORPORATION (COF) Table 4: Consolidated Balance Sheets 2024 Q1 (Dollars in millions) 2024 Q1 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2023 Q1 Assets: Cash and cash equivalents: Cash and due from banks $     4,671 $     4,903 $     4,620 $     3,360 $     3,347 (5) % 40 % Interest-bearing deposits and other short-term investments 46,357 38,394 40,249 38,236 43,166 21 7 Total cash and cash equivalents 51,028 43,297 44,869 41,596 46,513 18 10 Restricted cash for securitization investors 474 458 435 452 460 3 3 Securities available for sale 78,398 79,117 74,837 78,412 81,925 (1) (4) Loans held for investment: Unsecuritized loans held for investment 285,577 289,229 284,953 280,933 280,093 (1) 2 Loans held in consolidated trusts 29,577 31,243 29,827 30,390 28,743 (5) 3 Total loans held for investment 315,154 320,472 314,780 311,323 308,836 (2) 2 Allowance for credit losses (15,380) (15,296) (14,955) (14,646) (14,318) 1 7 Net loans held for investment 299,774 305,176 299,825 296,677 294,518 (2) 2 Loans held for sale 1,631 854 742