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Capital One Reports First Quarter 2022 Net Income of $2.4 billion, or $5.62 per share

MCLEAN, Va., April 26, 2022 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2022 of $2.4 billion, or $5.62 per diluted common share, compared with net income of $2.4 billion, or $5.41 per diluted common share in the fourth quarter of 2021, and with net income of $3.3 billion, or $7.03 per diluted common share in the first quarter of 2021.

Capital One Financial (PRNewsfoto/Capital One Financial Corporation)
Capital One Financial (PRNewsfoto/Capital One Financial Corporation)

"We continued to deliver strong growth across our businesses in the first quarter," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "We remain well-positioned to capitalize on opportunities that emerge as sweeping digital change and modern technology transform banking."

The quarter included the following notable item:

(Dollars in millions, except per share data)

Pre-Tax

Impact

Diluted EPS

Impact



Gain on sale of partnership card portfolios

$ 192

$ 0.35


All comparisons below are for the first quarter of 2022 compared with the fourth quarter of 2021 unless otherwise noted.

First Quarter 2022 Income Statement Summary:

  • Total net revenue increased 1 percent to $8.2 billion.

  • Total non-interest expense decreased 3 percent to $4.6 billion:

  • Pre-provision earnings increased 5 percent to $3.6 billion.(1)

  • Provision for credit losses increased $296 million to $677 million:

  • Net interest margin of 6.49 percent, a decrease of 11 basis points.

  • Efficiency ratio of 55.68 percent.

  • Operating efficiency ratio of 44.45 percent.

First Quarter 2022 Balance Sheet Summary:

  • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.7 percent at March 31, 2022.

  • Period-end loans held for investment in the quarter increased $3.1 billion, or 1 percent, to $280.5 billion.

  • Average loans held for investment in the quarter increased $8.2 billion, or 3 percent, to $275.3 billion.

  • Period-end total deposits increased $2.4 billion, or 1 percent, to $313.4 billion, while average deposits increased $2.3 billion, or 1 percent, to $309.6 billion.

  • Interest-bearing deposits rate paid decreased 1 basis point to 0.32 percent.

(1)

Pre-provision earnings is calculated based on the sum of net interest income and non-interest income, less non-interest expense for the period. Management believes that this financial metric is useful in enabling investors and others to assess the Company's ability to generate income to cover credit losses through a credit cycle, which can vary significantly between periods.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 26, 2022 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 10, 2022 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. 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, 2021.

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 $313.4 billion in deposits and $434.2 billion in total assets as of March 31, 2022. 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, Louisiana, Texas, Maryland, Virginia, New Jersey 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 2022

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, 2022 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.


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated













2022 Q1 vs.

(Dollars in millions, except per share data and as noted)


2022

Q1


2021

Q4


2021

Q3


2021

Q2


2021

Q1


2021

Q4


2021

Q1

Income Statement















Net interest income


$ 6,397


$ 6,450


$ 6,156


$ 5,743


$ 5,822


(1)%


10%

Non-interest income


1,776


1,668


1,674


1,631


1,291


6


38

Total net revenue(1)


8,173


8,118


7,830


7,374


7,113


1


15

Provision (benefit) for credit losses


677


381


(342)


(1,160)


(823)


78


**

Non-interest expense:















Marketing


918


999


751


620


501


(8)


83

Operating expense


3,633


3,679


3,435


3,346


3,239


(1)


12

Total non-interest expense


4,551


4,678


4,186


3,966


3,740


(3)


22

Income from continuing operations before income taxes


2,945


3,059


3,986


4,568


4,196


(4)


(30)

Income tax provision


542


633


882


1,031


869


(14)


(38)

Income from continuing operations, net of tax


2,403


2,426


3,104


3,537


3,327


(1)


(28)

Loss from discontinued operations, net of tax



(1)



(1)


(2)


**


**

Net income


2,403


2,425


3,104


3,536


3,325


(1)


(28)

Dividends and undistributed earnings allocated to participating securities(2)


(28)


(21)


(26)


(30)


(28)


33


Preferred stock dividends


(57)


(74)


(79)


(60)


(61)


(23)


(7)

Issuance cost for redeemed preferred stock(3)



(34)


(12)




**


Net income available to common stockholders


$ 2,318


$ 2,296


$ 2,987


$ 3,446


$ 3,236


1


(28)

Common Share Statistics















Basic earnings per common share:(2)















Net income from continuing operations


$ 5.65


$ 5.43


$ 6.81


$ 7.65


$ 7.06


4%


(20)%

Net income per basic common share


$ 5.65


$ 5.43


$ 6.81


$ 7.65


$ 7.06


4


(20)

Diluted earnings per common share:(2)















Net income from continuing operations


$ 5.62


$ 5.41


$ 6.78


$ 7.62


$ 7.03


4%


(20)%

Net income per diluted common share


$ 5.62


$ 5.41


$ 6.78


$ 7.62


$ 7.03


4


(20)

Weighted-average common shares outstanding (in millions):















Basic


410.4


422.5


438.8


450.6


458.6


(3)%


(11)%

Diluted


412.2


424.3


440.5


452.3


460.1


(3)


(10)

Common shares outstanding (period-end, in millions)


399.0


413.9


430.4


446.1


456.8


(4)


(13)

Dividends declared and paid per common share


$ 0.60


$ 0.60


$ 1.20


$ 0.40


$ 0.40



50

Tangible book value per common share (period-end)(4)


91.77


99.74


99.60


97.20


90.96


(8)


1







































2022 Q1 vs.



2022

Q1


2021

Q4


2021

Q3


2021

Q2


2021

Q1


2021

Q4


2021

Q1

(Dollars in millions)








Balance Sheet (Period-End)















Loans held for investment


$ 280,466


$ 277,340


$ 261,390


$ 249,597


$ 243,131


1%


15%

Interest-earning assets


398,241


397,341


387,208


387,295


392,485



1

Total assets


434,195


432,381


425,377


423,420


425,175



2

Interest-bearing deposits


275,648


272,937


269,134


271,314


276,325


1


Total deposits


313,429


310,980


305,938


306,308


310,328


1


1

Borrowings


45,358


43,086


37,501


36,343


38,450


5


18

Common equity


51,499


56,184


57,632


58,136


56,341


(8)


(9)

Total stockholders' equity


56,345


61,029


63,544


64,624


61,188


(8)


(8)

Balance Sheet (Average Balances)















Loans held for investment


$ 275,342


$ 267,159


$ 253,101


$ 246,463


$ 243,937


3%


13%

Interest-earning assets


394,082


390,868


387,766


390,129


388,572


1


1

Total assets


430,372


427,845


424,506


424,099


421,808


1


2

Interest-bearing deposits


271,823


269,951


269,278


273,476


273,358


1


(1)

Total deposits


309,597


307,272


305,035


308,217


305,056


1


1

Borrowings


42,277


39,943


37,464


37,054


39,911


6


6

Common equity


54,591


56,946


58,230


56,885


55,775


(4)


(2)

Total stockholders' equity


59,437


62,498


64,682