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Press release from PR Newswire

Capital One Reports First Quarter 2014 Net Income of $1.2 billion, or $1.96 per share

Wednesday, April 16, 2014

Capital One Reports First Quarter 2014 Net Income of $1.2 billion, or $1.96 per share

16:05 EDT Wednesday, April 16, 2014

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 31,2014

December 31,2013

March 31,2013

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

    in earnings

(5)

(1)

(25)

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 31,2014

December 31,2013

March 31,2013

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

    to resell

168

339

236

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

    agreements to repurchase

1,544

915

855

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)

2014Q1

2013Q4

2013Q3

2013Q2

2013Q1

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)

AverageBalance

InterestIncome/Expense(2)

Yield/Rate(2) 

AverageBalance

InterestIncome/Expense(2)

Yield/Rate(2) 

AverageBalance

InterestIncome/Expense(2)

Yield/Rate(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)

2014Q1

2013Q4

2013Q3

2013Q2

2013Q1

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)

2014Q1

2013Q4

2013Q3

2013Q2

2013Q1

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)

2014Q1

2013Q4

2013Q3

2013Q2

2013Q1

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)

2014Q1

2013

Q4

2013Q3

2013Q2

2013Q1

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.

(7)   

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

2013Q4

2013Q3

2013Q2

2013Q1

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

For further information: Investor Relations, Jeff Norris, 703.720.2455, Danielle Dietz, 703.720.2455, Media Relations, Julie Rakes, 804.284.5800, Tatiana Stead, 703.720.2352

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