Capital One Reports First Quarter 2012 Net Income of $1.4 billion, or $2.72 per share

MCLEAN, Va., April 19, 2012 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2012 of $1.4 billion, or $2.72 per diluted common share. Without the impact of a bargain purchase gain related to the ING Direct acquisition, first quarter 2012 net income would have been $809 million, or $1.56 per diluted common share. This compares with net income of $407 million, or $0.88 per diluted common share, for the fourth quarter of 2011, and net income of $1.0 billion, or $2.21 per diluted common share, for the first quarter of 2011.   

"We completed the ING Direct acquisition in the quarter, and we're thrilled to welcome the customers and associates of ING Direct to Capital One.  We now look forward to completing the acquisition of the HSBC US card business in the second quarter," said Richard Fairbank, Chairman and Chief Executive Officer.  "The combination of Capital One, ING Direct and the HSBC US card business puts us in an even stronger position to create sustained shareholder value through growth potential, strong returns and strong capital generation.  We're focused on delivering that value, including distributing capital to shareholders through a meaningful dividend and share buybacks, consistent with our long-standing commitment to maintaining a strong and resilient capital base." 

Total Company Results

All comparisons in the following paragraphs are for first quarter 2012 compared to fourth quarter 2011 unless otherwise noted.   

Loan and Deposit Balances

Average loans increased $21.3 billion in the quarter, driven largely by the February 17, 2012 acquisition of ING Direct. Average loan balances in legacy businesses grew by $2 billion as the modest decline in the Domestic Card business attributable to expected seasonal paydowns were more than offset by growth in the Commercial Lending and Auto Finance businesses. Period-end loan balances increased $37.9 billion to $173.8 billion. 

Period-end total deposits grew $88.3 billion, including the addition of $84.4 billion of deposits from the acquisition of ING Direct, to $216.5 billion.

Revenues

Total revenue in the first quarter of 2012 was $4.9 billion, up $885 million, or 22 percent. Higher revenue in our legacy businesses was driven in part by increased average loan balances and favorable margins.  In addition, non-interest income includes a bargain purchase gain of $594 million recognized in earnings for the quarter attributable to the February 17, 2012 acquisition of ING Direct. First quarter revenue also reflects a $160 million benefit related to the company's sale of Visa stock and subsequent reserve adjustments and the absence of approximately $150 million of unique contra-revenue items recorded in the fourth quarter.  These benefits were partially offset by a $75 million one-time reserve addition associated with Domestic Card.

Margins

Net interest margin declined 102 basis points to 6.20 percent in the quarter as a result of the on-boarding of ING Direct's lower yielding assets and temporarily high cash balances. 

Non-Interest Expense

Non-interest expense for the first quarter, inclusive of ING Direct related expenses, decreased $114 million primarily due to a decline in marketing expense and a modest decrease in legacy operating expense.

Pre-Provision Earnings (before tax)

Pre-provision earnings increased in the quarter as a result of higher revenue due to the impacts of the ING Direct acquisition, higher loan balances in several legacy businesses and the absence of non-recurring items recorded in the fourth quarter of 2011.

Provision Expense

Strong credit performance led to a $288 million decrease in provision expense in the quarter, driven by both lower charge-offs and a larger allowance release. The charge-off rate decreased 65 basis points to 2.04 percent, while the coverage ratio of allowance to loans fell by 79 basis points to 2.34 percent. This drop was significantly impacted by the ING Direct loan.

Net Income

Net income in the quarter increased $996 million inclusive of a bargain purchase gain of $594 million attributable to the acquisition of ING Direct. In addition to the ING Direct bargain purchase gain, the increase in earnings was primarily driven by higher revenue and lower non-interest and provision expenses in our legacy businesses.

Capital Ratios

The company's estimated Tier 1 common ratio increased 220 basis points from December 31, 2011, to   11.9 percent as of March 31, 2012, driven by strong retained earnings growth and capital actions related to the financing of the company's two acquisitions.  

The company expects to close the acquisition of HSBC's US card portfolio in the second quarter of 2012, and expects that the acquisition will have a significant impact on reported results, especially in 2012, due to the purchase accounting effects, integration expenses and partial year impacts of the acquisition.   

Tier 1 common ratio, as used throughout this release, is a regulatory capital measure. For additional information, see Table 13 in the Financial Supplement.

Business Segment Results

Credit Card Highlights

In the first quarter, Domestic Card delivered strong profits, improving credit and solid year-over-year growth in loans and purchase volumes. Net income in the first quarter was $515 million, an increase of 30.4 percent over the previous quarter. Total revenue declined 4.7 percent in the first quarter of 2012 driven by a one-time reserve addition in the first quarter.

Credit performance improved in the quarter. Domestic Card net charge-off rate decreased 15 basis points in the quarter to 3.92 percent, and delinquencies declined 41 basis points to 3.25 percent, consistent with expected seasonal patterns.

Domestic Card loan balances declined seasonally in the quarter by $3.4 billion to $53.2 billion. Compared to the first quarter of last year, loans grew 5.1 percent.

Purchase volume grew 25.6 percent from the first quarter of 2011 and 14.6 percent excluding the Kohl's portfolio. 

Consumer Banking Highlights

Consumer Banking delivered net income of $224 million in the first quarter of 2012, driven by the addition of ING Direct and strong results in Auto Finance. The significant increases in loan and deposit volumes, revenue and non-interest expense were all driven by the addition of ING Direct in the quarter.

Period-end loan balances were up $41.0 billion, including $40.4 billion of loan balances attributable to the acquisition of ING Direct. Additionally, auto loans grew $1.8 billion. Growth in auto loans resulted from traction in geographic expansion and the company's strategy to deepen relationships with its most valued auto dealers.  Auto Finance originations in the quarter were $4.3 billion, up 19.1 percent from the fourth quarter of 2011.

The company expects that the sizeable run-off of the ING Direct home loan portfolio and the continuing run-off of the legacy Home Loan portfolio will more than offset the growth in auto loans, driving a declining trend in Consumer Banking loan balances for several years.  

Provision expense declined, with lower charge-offs in both the Home Loan portfolio and Auto Finance, partially offset by an allowance build driven by the increase in auto loan balances.  Charge-off rates improved with the addition of ING Direct home loans which have no charge-offs due to the credit mark recognized in purchase accounting and seasonal favorability in Auto Finance. 

Consumer Banking deposits were $176.0 billion at the end of the quarter, an increase of $87.5 billion which includes $84.4 billion of deposits from the acquisition of ING Direct. Deposit interest expense decreased 11 basis points in the quarter.

Commercial Banking Highlights

Commercial Banking delivered another quarter of solid profitability and steady loan growth, with total revenue of $516 million, up $4 million in the first quarter of 2012 and $69 million year-over-year. Net income increased $93 million to $210 million in the quarter.

Period-end loans increased slightly from the prior quarter and 15.3 percent from the first quarter of 2011. Commercial deposits grew 5.1 percent in the quarter, and 15.2 percent year-over-year, with improvements in deposit interest expense.

The charge-off rate for Commercial Banking was 0.19 percent, down 43 basis points from the prior quarter.  Excluding the run-off in the Small Ticket CRE portfolio, the charge-off rate in the core Commercial Lending businesses was zero in the quarter, an improvement of 47 basis points from the prior quarter.

For more lending information and statistics on the segment results, please refer to the Financial Supplement.

Forward-looking statements

The company cautions that its current expectations in this release dated April 19, 2012 and the company's plans, objectives, expectations and intentions, are forward-looking statements which speak only as of the date hereof. The company does not undertake any obligation to update or revise any of the information contained herein whether as a result of new information, future events or otherwise.

Certain statements in this release are forward-looking statements, including those that discuss, among other things: strategies, goals, outlook or other non-historical matters; projections, revenues, income, returns, expenses, capital measures, accruals for claims in litigation and for other claims against the company, earnings per share or other financial measures for the company; future financial and operating results; the company's plans, objectives, expectations and intentions; the projected impact and benefits of the acquisition of ING Direct (the "ING Direct Transaction") and the pending acquisition of HSBC's U.S. credit card business (the "HSBC Transaction" and, with the ING Direct Transaction, the "Transactions"); and the assumptions that underlie these matters.  To the extent that any such information is forward-looking, it is intended to fit within the safe harbor for forward-looking information provided by the Private Securities Litigation Reform Act of 1995. Numerous factors could cause the company's actual results to differ materially from those described in such forward-looking statements, including, among other things: general economic and business conditions in the U.S., the U.K., Canada or the company's local markets, including conditions affecting employment levels, interest rates, consumer income and confidence, spending and savings that may affect consumer bankruptcies, defaults, charge-offs and deposit activity; an increase or decrease in credit losses (including increases due to a worsening of general economic conditions in the credit environment); the possibility that the company will not receive third-party consents necessary to fully realize the anticipated benefits of the HSBC Transaction; the possibility that the company may not fully realize the projected cost savings and other projected benefits of the Transactions; changes in the anticipated timing for closing the HSBC Transaction; difficulties and delays in integrating the assets and businesses acquired in the Transactions; business disruption during the pendency of or following the Transactions; diversion of management time on issues related to the Transactions, including integration of the assets and businesses acquired; reputational risks and the reaction of customers and counterparties to the Transactions; disruptions relating to the Transactions negatively impacting the company's ability to maintain relationships with customers, employees and suppliers; changes in asset quality and credit risk as a result of the Transactions; the accuracy of estimates and assumptions the company uses to determine the fair value of assets acquired and liabilities assumed in the Transactions, and the potential for its estimates or assumptions to change as additional information becomes available and the company completes the accounting analysis of the Transactions; financial, legal, regulatory, tax or accounting changes or actions, including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder; developments, changes or actions relating to any  litigation matter involving the company; the inability to sustain revenue and earnings growth; increases or decreases in interest rates; the company's ability to access the capital markets at attractive rates and terms to capitalize and fund its operations and future growth; the success of the company's marketing efforts in attracting and retaining customers; increases or decreases in the company's aggregate loan balances or the number of customers and the growth rate and composition thereof, including increases or decreases resulting from factors such as shifting product mix, amount of actual marketing expenses the company incurs and attrition of loan balances; the level of future repurchase or indemnification requests the company may receive, the actual future performance of mortgage loans relating to such requests, the success rates of claimants against the company, any developments in litigation and the actual recoveries the company may make on any collateral relating to claims against the company; the amount and rate of deposit growth; changes in the reputation of or expectations regarding the financial services industry or the company with respect to practices, products or financial condition; any significant disruption in the company's operations or technology platform; the company's ability to maintain a compliance infrastructure suitable for its size and complexity; the company's ability to control costs; the amount of, and rate of growth in, the company's expenses as its business develops or changes or as it expands into new market areas; the company's ability to execute on its strategic and operational plans; any significant disruption of, or loss of public confidence in, the United States Mail service affecting the company's response rates and consumer payments; the company's ability to recruit and retain experienced personnel to assist in the management and operations of new products and services; changes in the labor and employment markets; fraud or misconduct by the company's customers, employees or business partners; competition from providers of products and services that compete with the company's businesses; and other risk factors set forth from time to time in reports that the company 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, 2011.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., Capital One Bank (USA), N. A., and ING Bank, fsb, had $216.5 billion in deposits and $294.5 billion in total assets outstanding as of March 31, 2012. Headquartered in McLean, Virginia, Capital One and ING Direct offer 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 approximately 1,000 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.

 

 

				Exhibit 99.2
Capital One Financial Corporation
Financial Supplement
First Quarter 2012 (1)(2)
Table of Contents
				Page
Capital One Financial Consolidated
	Table   1:		Financial & Statistical Summary―Consolidated	1
	Table   2:		Notes to Consolidated Financial & Statistical Summary (Table 1)	2
	Table   3:		Consolidated Statements of Income	3
	Table   4:		Consolidated Balance Sheets	4
	Table   5:		Average Balances, Net Interest Income and Net Interest Margin	5
	Table   6:		Loan Information and Performance Statistics	6
	Table   7:		Loan Information and Performance Statistics (Excluding Acquired Loans) (3)	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 6 — 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 March 31, 2012 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.
(2)	References to ING Direct refer to the business and assets acquired and liabilities assumed in the February 17, 2012 acquisition.
(3)	Acquired loans consist of the substantial majority of loans acquired in the Chevy Chase Bank and ING Direct business combinations, which were recorded at fair value at acquisition and accounted for under applicable accounting guidance.  This accounting methodology takes into consideration estimated credit losses expected to be realized over the remaining lives of the loans.  Accordingly, we present certain credit quality metrics excluding the impact of these loans where applicable.

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 1:  Financial & Statistical Summary—Consolidated (1)
		2012		2011		2011
(Dollars in millions, except per share data and as noted) (unaudited)		Q1 (2)		Q4		Q1
Earnings
Net interest income		$         3,414		$              3,182		$              3,140
Non-interest income (3) (4)		1,521		868		942
Total revenue (5)		4,935		4,050		4,082
Provision for credit losses		573		861		534
Marketing expenses		321		420		276
Operating expenses (6)		2,183		2,198		1,886
Income from continuing operations before income taxes		1,858		571		1,386
Income tax provision		353		160		354
Income from continuing operations, net of tax		1,505		411		1,032
Loss from discontinued operations, net of tax(3)		(102)		(4)		(16)
Net income		1,403		407		1,016
Dividends and undistributed earnings allocated to participating securities		(7)		(26)		—
Net income available to common stockholders		$         1,396		$                 381		$              1,016
Common Share Statistics
Basic EPS:
Income from continuing operations, net of tax		$           2.94		$                0.89		$                2.27
Loss from discontinued operations, net of tax		(0.20)		(0.01)		(0.03)
Net income per common share		$           2.74		$                0.88		$                2.24
Diluted EPS:
Income from continuing operations, net of tax		$           2.92		$                0.89		$                2.24
Loss from discontinued operations, net of tax		(0.20)		(0.01)		(0.03)
Net income per common share		$           2.72		$                0.88		$                2.21
Weighted average common shares outstanding (in millions):
Basic EPS		508.7		456.2		454.1
Diluted EPS		513.1		458.5		460.3
Common shares outstanding (period end)		580.2		459.9		458.7
Dividends per common share		$           0.05		$                0.05		$                0.05
Tangible book value per common share (period end)(7)		39.37		34.26		29.47
Balance Sheet (Period End)
Loans held for investment (8)		$      173,822		$           135,892		$           124,092
Interest-earning assets		265,398		179,878		172,870
Total assets		294,481		206,019		199,300
Tangible assets(9)		280,067		191,806		184,928
Interest-bearing deposits		197,254		109,945		109,097
Total deposits		216,528		128,226		125,446
Borrowings		32,885		39,561		39,797
Stockholders' equity		36,950		29,666		27,550
Balance Sheet (Quarterly Average Balances)
Average loans held for investment (8)		$      152,900		$           131,581		$           125,077
Average interest-earning assets		220,246		176,271		173,440
Average total assets		246,384		200,106		198,075
Average interest-bearing deposits		151,625		109,914		108,633
Average total deposits		170,259		128,450		124,158
Average borrowings		35,994		34,812		40,538
Average stockholders' equity		32,982		29,698		27,009
Performance Metrics
Net interest income growth (quarter over quarter)		7	%	(3)	%	4	%
Non-interest income growth(quarter over quarter)		75		—		—
Revenue growth(quarter over quarter)		22		(3)		3
Revenue margin (10)		8.96		9.19		9.41
Net interest margin (11)		6.20		7.22		7.24
Return on average assets (12)		2.44		0.82		2.08
Return on average equity (13)		18.25		5.54		15.28
Return on average tangible common equity(14)		31.60		10.43		31.73
Non-interest expense as a % of average loans held for investment (15)		6.55		7.96		6.91
Efficiency ratio(16)		50.74		64.64		52.96
Effective income tax rate		19.0		28.0		25.5
Full-time equivalent employees (in thousands)		34.2		30.5		27.9
Credit Quality Metrics
Allowance for loan and lease losses		$         4,060		$              4,250		$              5,067
Allowance as a % of loans held for investment		2.34	%	3.13	%	4.08	%
Allowance as a % of loans held for investment (excluding acquired loans)		3.08		3.22		4.23
Net charge-offs		$            780		$                 884		$              1,145
Net charge-off rate (17) (18)		2.04	%	2.69	%	3.66	%
Net charge-off rate (excluding acquired loans)		2.40		2.79		3.82
30+ day performing delinquency rate  (19)		2.23		3.35		3.07
30+ day performing delinquency rate (excluding acquired loans)		2.96		3.47		3.18
30+ day delinquency rate(20)		—		3.95		3.79
Capital Ratios
Tier 1 risk-based capital ratio (21)		13.9	%	12.0	%	10.9	%
Tier 1 common ratio (22)		11.9		9.7		8.4
Total risk-based capital ratio (23)		16.5		14.9		14.2
Tangible common equity (TCE) ratio(24)		8.2		8.2		7.3

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2:  Notes to Consolidated Financial & Statistical Summary (Table 1)
(1)	Certain prior period amounts have been reclassified to conform to the current period presentation.
(2)	Results for Q1 2012 include the impact of the February 17, 2012 acquisition of ING Direct, which resulted in the addition of loans with an outstanding principal and interest loan balance of $40.4 billion and deposits of $84.4 billion at acquisition.
(3)	The mortgage representation and warranty reserve increased to $1.1 billion as of March 31, 2012, from $943 million as of December 31, 2011. We recorded a provision for repurchase losses of $169 million in Q1 2012, $59 million in Q4 2011, and $44 million in Q1 2011. The majority of the provision for repurchase losses is generally included in discontinued operations, with the remaining portion included in non-interest income.
(4)	Includes a bargain purchase gain of $594 million recognized in earnings in Q1 2012 attributable to the February 17, 2012 acquisition of ING Direct.
(5)	The estimated uncollectible amount of billed finance charges and fees excluded from revenue totaled $123 million in Q1 2012, $130 million in Q4 2011, and $105 million in Q1 2011.
(6)	Includes merger-related expenses attributable to acquisitions of $86 million in Q1 2012 and $27 million in Q4 2011. Also, includes core deposit intangible amortization expense of $46 million in Q1 2012, $40 million in Q4 2011, and $45 million in Q1 2011.
(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 the calculation of tangible common equity.
(8)	See Table 7 for additional information on acquired loans and our credit quality metrics excluding acquired loans.
(9)	Tangible assets is a non-GAAP measure consisting of total assets less assets from discontinued operations and intangible assets. See "Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this measure.
(10)	Calculated based on annualized total revenue for the period divided by average interest-earning assets for the period.
(11)	Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(12)	Calculated based on annualized income from continuing operations, net of tax, for the period divided by average total assets for the period.
(13)	Calculated based on annualized income from continuing operations, net of tax, for the period divided by average stockholders' equity for the period.
(14)	Calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible common equity for the period.
(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 revenue for the period.
(17)	In accordance with our loss-sharing agreement with Kohl's, charge-offs for the portfolio are reported net of any reimbursement of credit losses from Kohl's, which has the impact of lowering the overall charge-off rate.
(18)	Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
(19)	The 30+ day performing delinquency rate for acquired loans, which is presented below, is calculated based on the contractual past due unpaid principal balance divided by the total outstanding unpaid principal balance of acquired loans as of the end of each period.
				2012		2011		2011
	(Dollars in millions) (unaudited)			Q1		Q4		Q1
	Total period-end acquired loan portfolio (unpaid principal balance)			$44,798		$5,751		$6,698
	30+ day performing delinquency rates (acquired loans)			3.05%		3.05%		2.97%
(20)	The 30+ day total delinquency rate as of the end of Q1 2012 will be provided in the March 31, 2012 Quarterly Report on Form 10-Q.
(21)	Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets. See "Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio.
(22)	Tier 1 common ratio is a regulatory capital measure calculated based on Tier 1 common capital divided by risk-weighted assets. See "Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio.
(23)	Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighted assets. See "Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio.
(24)	TCE ratio is a non-GAAP measure calculated based on tangible common equity divided by tangible assets. See "Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio and non-GAAP reconciliation.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3:  Consolidated Statements of Income
					Three Months Ended
					March 31,		December 31,		March 31,
(Dollars in millions, except per share data) (unaudited)					2012		2011		2011
Interest income:
Loans held for investment, including past-due fees					$             3,655		$                    3,440		$                  3,417
Investment securities					298		244		316
Other					26		17		19
	Total interest income				3,979		3,701		3,752
Interest expense:
Deposits					311		264		322
Securitized debt obligations					80		80		140
Senior and subordinated notes					88		89		64
Other borrowings					86		86		86
	Total interest expense				565		519		612
Net interest income					3,414		3,182		3,140
Provision for credit losses					573		861		534
Net interest income after provision for credit losses					2,841		2,321		2,606
Non-interest income:
Service charges and other customer-related fees					415		452		525
Interchange fees, net					328		346		320
Net other-than-temporary impairment losses recognized in earnings					(14)		(6)		(3)
Bargain purchase gain (1)					594		—		—
Other					198		76		100
	Total non-interest income				1,521		868		942
Non-interest expense:
Salaries and associate benefits					891		817		741
Marketing					321		420		276
Communications and data processing					173		177		164
Supplies and equipment					150		137		135
Occupancy					123		131		119
Other					846		936		727
	Total non-interest expense				2,504		2,618		2,162
Income from continuing operations before income taxes					1,858		571		1,386
Income tax provision					353		160		354
Income from continuing operations, net of tax					1,505		411		1,032
Loss from discontinued operations, net of tax					(102)		(4)		(16)
	Net income				1,403		407		1,016
Dividends and undistributed earnings allocated to participating securities					(7)		(26)		—
	Net income available to common stockholders				$             1,396		$                       381		$                   1,016
Basic earnings per common share:
Income from continuing operations					$               2.94		$                      0.89		$                     2.27
Loss from discontinued operations					(0.20)		(0.01)		(0.03)
Net income per basic common share					$               2.74		$                      0.88		$                     2.24
Diluted earnings per common share:
Income from continuing operations					$               2.92		$                      0.89		$                     2.24
Loss from discontinued operations					(0.20)		(0.01)		(0.03)
Net income per diluted common share					$               2.72		$                      0.88		$                     2.21
Weighted average common shares outstanding (in millions):
Basic EPS					508.7		456.2		454.1
Diluted EPS					513.1		458.5		460.3
Dividends paid per common share					$               0.05		$                      0.05		$                     0.05
(1)	Represents the excess of the fair value of the net assets acquired in the ING Direct acquisition as of the acquisition date of February 17, 2012 over the consideration transferred.

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4:  Consolidated Balance Sheets
			March 31,		December 31,		March  31,
(Dollars in millions)(unaudited)			2012		2011		2011
Assets:
Cash and due from banks			$         27,341		$         2,097		$       2,028
Interest-bearing deposits with banks			3,007		3,399		5,397
Federal funds sold and securites purchased under agreements to resell			308		342		546
	Cash and cash equivalents		30,656		5,838		7,971
Restricted cash for securitization investors			1,090		791		2,556
Securities available for sale, at fair value			60,810		38,759		41,566
Loans held for investment:
	Unsecuritized loans held for investment		128,927		88,242		75,184
	Restricted loans for securitization investors		44,895		47,650		48,908
	Total loans held for investment		173,822		135,892		124,092
	Less: Allowance for loan and lease losses		(4,060)		(4,250)		(5,067)
	Net loans held for investment		169,762		131,642		119,025
Loans held for sale, at lower-of-cost-or-fair-value			627		201		117
Accounts receivable from securitizations			96		94		112
Premises and equipment, net			3,062		2,748		2,739
Interest receivable			1,157		1,029		1,025
Goodwill			13,595		13,592		13,597
Other			13,626		11,325		10,592
	Total assets		$     294,481		$      206,019		$    199,300
Liabilities:
Interest payable			$            384		$             466		$           411
Customer deposits:
	Non-interest bearing deposits		19,274		18,281		16,349
	Interest-bearing deposits		197,254		109,945		109,097
	Total customer deposits		216,528		128,226		125,446
Securitized debt obligations			15,474		16,527		24,506
Other debt:
	Federal funds purchased and securities loaned or sold under agreements to repurchase		770		1,464		1,970
	Senior and subordinated notes		11,948		11,034		8,545
	Other borrowings		4,693		10,536		4,776
	Total other debt		17,411		23,034		15,291
Other liabilities			7,734		8,100		6,096
	Total liabilities		257,531		176,353		171,750
Stockholders' equity:
Common stock			6		5		5
Paid-in capital, net			25,136		19,274		19,141
Retained earnings and accumulated other comprehensive income			15,094		13,631		11,644
Less:  Treasury stock, at cost			(3,286)		(3,244)		(3,240)
	Total stockholders' equity		36,950		29,666		27,550
	Total liabilities and stockholders' equity		$      294,481		$      206,019		$      199,300

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 5:  Average Balances, Net Interest Income and Net Interest Margin
			2012 Q1							2011 Q4						2011 Q1
(Dollars in millions)(unaudited)			Average Balance		Interest Income/ Expense		Yield/ Rate			Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-earning assets:
	Loans held for investment		$ 152,900		$  3,655		9.56	%		$ 131,581		$   3,440		10.46	%	$  125,077		$  3,417		10.93	%
	Investment securities		50,543		298		2.36			39,005		244		2.50		41,532		316		3.04
	Cash equivalents and other		16,803		26		0.62			5,685		17		1.20		6,831		19		1.11
Total interest-earning assets			$ 220,246		$  3,979		7.23	%		$ 176,271		$   3,701		8.40	%	$  173,440		$  3,752		8.65	%
Interest-bearing liabilities:
	Interest-bearing deposits
		NOW accounts	$  24,912		$       34		0.55	%		$  13,700		$        12		0.35	%	$   13,648		$         9		0.26	%
		Money market deposit accounts	76,362		131		0.69			47,167		87		0.74		45,613		110		0.96
		Savings accounts	31,743		34		0.43			31,422		47		0.60		26,801		55		0.82
		Other consumer time deposits	12,763		74		2.32			12,264		77		2.51		15,344		99		2.58
		Public fund CD's of $100,000 or more	84		-		-			84		1		4.76		149		1		2.68
		CD's of $100,000 or more	4,787		37		3.09			4,748		39		3.29		6,097		47		3.08
		Foreign time deposits	974		1		0.41			529		1		0.76		981		1		0.41
	Total interest-bearing deposits		$ 151,625		$    311		0.82	%		$ 109,914		$      264		0.96	%	$  108,633		$    322		1.19	%
	Securitized debt obligations		16,185		80		1.98			16,780		80		1.91		25,515		140		2.19
	Senior and subordinated notes		10,268		88		3.43			10,237		89		3.48		8,090		64		3.16
	Other borrowings		9,541		86		3.61			7,794		86		4.41		6,933		86		4.96
Total interest-bearing liabilities			$ 187,619		$    565		1.20	%		$ 144,725		$      519		1.43	%	$   149,171		$    612		1.64	%
Net interest income/spread					$  3,414		6.03	%				$   3,182		6.97	%			$  3,140		7.01	%
Impact of non-interest bearing funding							0.17							0.25						0.23
Net interest margin							6.20	%						7.22	%					7.24	%

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 6: Loan Information and Performance Statistics (1)
		2012		2011		2011
(Dollars in millions)(unaudited)		Q1(2)		Q4		Q1
Period-end Loans Held For Investment
Credit card:
Domestic credit card		$              53,173		$            56,609		$            50,570
International credit card		8,303		8,466		8,735
Total credit card		61,476		65,075		59,305
Consumer banking:
Automobile		23,568		21,779		18,342
Home loan		49,550		10,433		11,741
Retail banking		4,182		4,103		4,223
Total consumer banking		77,300		36,315		34,306
Commercial banking: (3)
Commercial and multifamily real estate		15,702		15,736		13,791
Commercial and industrial		17,761		17,088		14,694
Total commercial lending		33,463		32,824		28,485
Small-ticket commercial real estate		1,443		1,503		1,780
Total commercial banking		34,906		34,327		30,265
Other loans		140		175		216
Total		$            173,822		$           135,892		$           124,092
Average Loans Held For Investment
Credit card:
Domestic credit card		$              54,131		$            54,403		$            51,889
International credit card		8,301		8,361		8,697
Total credit card		62,432		62,764		60,586
Consumer banking:
Automobile		22,582		21,101		18,025
Home loan		29,502		10,683		11,960
Retail banking		4,179		4,007		4,251
Total consumer banking		56,263		35,791		34,236
Commercial banking: (3)
Commercial and multifamily real estate		15,514		14,920		13,579
Commercial and industrial		17,038		16,376		14,630
Total commercial lending		32,552		31,296		28,209
Small-ticket commercial real estate		1,480		1,547		1,818
Total commercial banking		34,032		32,843		30,027
Other loans		173		183		228
Total		$            152,900		$           131,581		$           125,077
Net Charge-off Rates
Credit card:
Domestic credit card (4)		3.92	%	4.07	%	6.20	%
International credit card		5.52		5.77		5.74
Total credit card		4.14	%	4.30	%	6.13	%
Consumer banking:
Automobile(5)		1.41	%	2.07	%	1.98	%
Home loan (5)		0.20		0.90		0.71
Retail banking (5)		1.39		1.44		2.24
Total consumer banking (5)		0.77	%	1.65	%	1.57	%
Commercial banking: (3)
Commercial and multifamily real estate (5)		0.09	%	0.75	%	0.58	%
Commercial and industrial (5)		(0.08)		0.21		0.21
Total commercial lending (5)		—	%	0.47	%	0.39	%
Small-ticket commercial real estate		4.24		3.73		7.14
Total commercial banking (5)		0.19	%	0.62	%	0.80	%
Other loans		23.30	%	24.08	%	38.33	%
Total		2.04	%	2.69	%	3.66	%
30+ Day Performing Delinquency Rates (6)
Credit card:
Domestic credit card		3.25	%	3.66	%	3.59	%
International credit card		5.14		5.18		5.55
Total credit card		3.51	%	3.86	%	3.88	%
Consumer banking:
Automobile(5)		4.87	%	6.88	%	5.79	%
Home loan (5)		0.15		0.89		0.61
Retail banking (5)		0.80		0.83		0.93
Total consumer banking (5)		1.63	%	4.47	%	3.42	%
Nonperforming Asset Rates (7) (8)
Consumer banking:
Automobile(5)		0.32	%	0.58	%	0.39	%
Home loan (5)		0.94		4.58		4.34
Retail banking (5)		2.25		2.50		2.44
Total consumer banking (5)		0.82	%	1.94	%	2.00	%
Commercial banking: (3)
Commercial and multifamily real estate (5)		1.55	%	1.40	%	2.59	%
Commercial and industrial (5)		0.69		0.80		1.15
Total commercial lending (5)		1.09	%	1.09	%	1.85	%
Small-ticket commercial real estate		4.35		2.86		3.39
Total commercial banking (5)		1.23	%	1.17	%	1.94	%

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics (Excluding Acquired Loans)(1) (5)
		2012		2011		2011
(Dollars in millions) (unaudited)		Q1		Q4		Q1
Total period-end acquired loan portfolio (9)		$      43,132		$      4,689		$         5,351
Total average acquired loan portfolio (9)		23,067		4,781		5,305
Net Charge-off Rates
Consumer banking:
Auto		1.41	%	2.07	%	1.98	%
Home loan		0.82		1.48		1.16
Retail banking		1.40		1.46		2.32
Total consumer banking		1.29	%	1.87	%	1.82	%
Commercial banking:
Commercial and multifamily real estate		0.09	%	0.76	%	0.59	%
Commercial and industrial		(0.08)		0.22		0.22
Total commercial lending		0.01		0.48		0.40
Total commercial banking		0.19	%	0.63	%	0.81	%
30+ Day Performing Delinquency Rates
Consumer banking:
Auto		4.88	%	6.90	%	5.83	%
Home loan		1.10		1.47		1.02
Retail banking		0.81		0.84		0.93
Total consumer banking		3.63	%	5.06	%	3.98	%
Nonperforming Asset Rates
Consumer banking:
Auto		0.32	%	0.58	%	0.39	%
Home loan		6.66		7.55		7.24
Retail banking		2.28		2.52		2.44
Total consumer banking		1.83	%	2.20	%	2.32	%
Commercial banking:
Commercial and multifamily real estate		1.57	%	1.42	%	2.64	%
Commercial and industrial		0.70		0.81		1.17
Total commercial lending		1.11		1.10		1.88
Total commercial banking		1.25	%	1.18	%	1.97	%
Nonperforming Loans as a Percentage of Period-end Loans Held for Investment
Consumer banking		1.71	%	2.03	%	2.14	%
Commercial banking		1.17		1.10		1.86

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8:  Financial & Statistical Summary—Credit Card Business
		2012		2011		2011
(Dollars in millions) (unaudited)		Q1 (2)		Q4		Q1
Credit Card
Earnings:
Net interest income		$                      1,992		$               1,949		$              1,941
Non-interest income		598		638		674
Total revenue		2,590		2,587		2,615
Provision for credit losses		458		600		450
Non-interest expense		1,268		1,431		1,178
Income from continuing operations before taxes		864		556		987
Income tax provision		298		203		344
Income from continuing operations, net of tax		$                        566		$                  353		$                 643
Selected metrics:
Period-end loans held for investment		$                    61,476		$             65,075		$            59,305
Average loans held for investment		62,432		62,764		60,586
Average yield on loans held for investment		14.41	%	14.12	%	14.68	%
Revenue margin		16.59		16.49		17.26
Net charge-off rate		4.14		4.30		6.13
30+ day delinquency rate		3.51		3.86		3.88
Purchase volume (10)		$                    34,296		$             38,179		$            27,797
Domestic Card
Earnings:
Net interest income		$                      1,713		$               1,706		$              1,651
Non-interest income		497		613		583
Total revenue		2,210		2,319		2,234
Provision for credit losses		361		519		230
Non-interest expense		1,052		1,183		990
Income from continuing operations before taxes		797		617		1,014
Income tax provision		282		222		360
Income from continuing operations, net of tax		$                        515		$                  395		$                 654
Selected metrics:
Period-end loans held for investment		$                    53,173		$             56,609		$            50,570
Average loans held for investment		54,131		54,403		51,889
Average yield on loans held for investment		14.11	%	14.05	%	14.42	%
Revenue margin		16.33		17.05		17.22
Net charge-off rate (4)		3.92		4.07		6.20
30+ day delinquency rate		3.25		3.66		3.59
Purchase volume (10)		$                    31,418		$             34,586		$            25,024
International Card
Earnings:
Net interest income		$                        279		$                  243		$                 290
Non-interest income		101		25		91
Total revenue		380		268		381
Provision for credit losses		97		81		220
Non-interest expense		216		248		188
Income (loss) from continuing operations before taxes		67		(61)		(27)
Income tax provision (benefit)		16		(19)		(16)
Income (loss) from continuing operations, net of tax		$                          51		$                   (42)		$                  (11)
Selected metrics:
Period-end loans held for investment		$                      8,303		$               8,466		$              8,735
Average loans held for investment		8,301		8,361		8,697
Average yield on loans held for investment		16.38	%	14.57	%	16.28	%
Revenue Margin		18.31		12.82		17.52
Net charge-off rate		5.52		5.77		5.74
30+ day delinquency rate		5.14		5.18		5.55
Purchase volume (10)		$                      2,878		$               3,593		$              2,773

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9:  Financial & Statistical Summary—Consumer Banking Business
			2012		2011		2011
(Dollars in millions) (unaudited)			Q1 (2)		Q4		Q1
Consumer Banking
Earnings:
	Net interest income		$       1,288		$              1,105		$                 983
	Non-interest income		176		152		186
	Total revenue		1,464		1,257		1,169
	Provision for credit losses		174		180		95
	Non-interest expense		943		893		740
	Income from continuing operations before taxes		347		184		334
	Income tax provision		123		67		119
	Income from continuing operations, net of tax		$          224		$                 117		$                 215
Selected metrics:
	Period-end loans held for investment		$      77,300		$            36,315		$            34,306
	Average loans held for investment		56,263		35,791		34,236
	Average yield on loans held for investment		7.20	%	9.46	%	9.60	%
	Auto loan originations		$       4,270		$              3,586		$              2,571
	Period-end deposits		176,007		88,540		86,355
	Average deposits		129,915		88,390		83,884
	Deposit interest expense rate		0.73	%	0.84	%	1.06	%
	Core deposit intangible amortization		$            37		$                   31		$                   35
	Net charge-off rate (5)		0.77	%	1.65	%	1.57	%
	30+ day performing delinquency rate (5) (6)		1.63		4.47		3.42
	30+ day delinquency rate (5) (6)		—		5.99		4.96
	Nonperforming loans as a percentage of loans held for investment (5) (7)		0.77		1.79		1.84
	Nonperforming asset rate (5) (7)		0.82		1.94		2.00
	Period-end loans serviced for others		$      17,586		$            17,998		$            19,956

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10:  Financial & Statistical Summary—Commercial Banking Business
			2012		2011		2011
(Dollars in millions) (unaudited)			Q1(2)		Q4		Q1
Commercial Banking(3)(12)
Earnings:
	Net interest income		$              431		$                 425		$                 376
	Non-interest income		85		87		71
	Total revenue		516		512		447
	Provision for credit losses		(69)		76		(16)
	Non-interest expense		261		254		212
	Income from continuing operations before taxes		324		182		251
	Income tax provision		114		65		89
	Income from continuing operations, net of tax		$              210		$                 117		$                 162
Selected metrics:
	Period-end loans held for investment		$          34,906		$            34,327		$            30,265
	Average loans held for investment		34,032		32,843		30,027
	Average yield on loans held for investment		4.47	%	4.70	%	4.81	%
	Period-end deposits		$          28,046		$            26,683		$            24,336
	Average deposits		27,569		26,185		24,232
	Deposit interest expense rate		0.37	%	0.42	%	0.55	%
	Core deposit intangible amortization		$                  9		$                    9		$                   11
	Net charge-off rate (5)		0.19	%	0.62	%	0.80	%
	Nonperforming loans as a percentage of loans held for investment (5) (7)		1.15		1.08		1.83
	Nonperforming asset rate (5) (7)		1.23		1.17		1.94
Risk category: (11)
	Noncriticized		$          32,339		$            31,617		$            27,254
	Criticized performing		1,695		1,857		1,925
	Criticized nonperforming		402		372		554
	Total risk-rated loans		34,436		33,846		29,733
	Acquired commercial loans		470		481		532
	Total commercial loans		$          34,906		$            34,327		$            30,265
	% of period-end held for investment commercial loans:
	Noncriticized		92.64	%	92.11	%	90.05	%
	Criticized performing		4.86		5.41		6.36
	Criticized nonperforming		1.15		1.08		1.83
	Total risk-rated loans		98.65		98.60		98.24
	Acquired commercial loans		1.35		1.40		1.76
	Total commercial loans		100.00	%	100.00	%	100.00	%

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11:  Financial & Statistical Summary—Other and Total
			2012		2011		2011
(Dollars in millions) (unaudited)			Q1 (2)		Q4		Q1
Other (3)
Earnings:
	Net interest expense		$         (297)		$                (297)		$                (160)
	Non-interest income (expense)		662		(9)		11
	Total revenue		365		(306)		(149)
	Provision for credit losses		10		5		5
	Non-interest expense		32		40		32
	Loss from continuing operations before taxes		323		(351)		(186)
	Income tax benefit		(182)		(175)		(198)
	Income (loss) from continuing operations, net of tax		$          505		$                (176)		$                   12
Selected metrics:
	Period-end loans held for investment		$          140		$                 175		$                 216
	Average loans held for investment		173		183		228
	Period-end deposits		12,475		13,003		14,755
	Average deposits		12,775		13,875		16,042
Total
Earnings:
	Net interest income		$       3,414		$              3,182		$              3,140
	Non-interest income		1,521		868		942
	Total revenue		4,935		4,050		4,082
	Provision credit losses		573		861		534
	Non-interest expense		2,504		2,618		2,162
	Income from continuing operations before taxes		1,858		571		1,386
	Income tax provision		353		160		354
	Income from continuing operations, net of tax		$       1,505		$                 411		$              1,032
Selected metrics:
	Period-end loans held for investment		$   173,822		$           135,892		$           124,092
	Average loans held for investment		152,900		131,581		125,077
	Period-end deposits		216,528		128,226		125,446
	Average deposits		170,259		128,450		124,158

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12:  Notes to Loan and Business Segment Disclosures (Tables 6 — 11)
(1)	Certain prior period amounts have been reclassified to conform to the current period presentation.
(2)	Results for Q1 2012 include the impact of the February 17, 2012 acquisition of ING Direct, which resulted in the addition of loans with an outstanding principal and interest loan balance of $40.4 billion and deposits of $84.4 billion at acquisition.
(3)	In Q1 2012, we re-aligned the products within our Commercial Banking segment to reflect the business operations by product rather than by customer type.  As a result of this re-alignment, we now report three product categories: commercial and multifamily real estate, commercial and industrial loans and small-ticket commercial real estate.  Middle market and specialty lending related products are included in commercial and industrial loans.  All tax-related  investments, some of which were previously included in the "Other" segment, are included in the commercial and multifamily real estate category of our Commercial Banking segment.
(4)	In accordance with our loss-sharing agreement with Kohl's, charge-offs for the portfolio are reported net of any reimbursement of credit losses from Kohl's, which has the impact of lowering the overall Domestic Card charge-off rate.
(5)	Loans acquired as part of the ING Direct and Chevy Chase Bank acquisitions are included in the denominator used in calculating the credit quality metrics presented in Table 6. These metrics excluding the impact of these acquired loans from the denominator are presented in Table 7.
(6)	The 30+ day performing delinquency rate for acquired loans, which is presented below, is calculated based on the contractual past due unpaid principal balance divided by the total outstanding unpaid principal balance of acquired loans as of the end of each period.
				2012		2011		2011
	(Dollars in millions) (unaudited)			Q1		Q4		Q1
	Total period-end acquired loan portfolio (unpaid principal balance)			$       44,256		$     5,205		$     6,108
	30+ day performing delinquency rates (acquired loans):
	Consumer banking:
		Auto		4.30	%	5.31	%	3.72	%
	Home loan			3.08		2.93		2.62
	Retail banking			5.42		2.20		9.35
	Total consumer banking			3.08	%	2.94	%	2.69	%
	The 30+ day total delinquency rate as of the end of Q1 2012 will be provided in the March 31, 2012 Quarterly Report on Form 10-Q.
(7)	Nonperforming assets consist of nonperforming loans and real estate owned ("REO") and 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 foreclosed assets for each respective category.
(8)	As permitted by regulatory guidance, our policy is generally to exempt delinquent credit card loans from being classified as nonperforming. We continue to accrue finance charges and fees on credit card loans until the loan is charged off, typically when the account becomes 180 days past due. Billed finance charges and fees considered uncollectible are not recognized in income.
(9)	Reported based on carrying value of acquired loans. See Table 2, footnote (19) for the outstanding unpaid principal balance as of the end of each period.
(10)	Includes credit card purchase transactions net of returns. Excludes cash advance transactions.
(11)	Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.
(12)	Because some of our tax-related commercial investments generate tax-exempt income or tax credits, we make certain reclassifications to our Commercial Banking business results to present revenues on a taxable-equivalent basis based on the assumption of approximately 35% effective tax rate.

 

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures
In addition to disclosing required regulatory capital measures, we also report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include average tangible common equity, tangible common equity ("TCE") 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.
			2012			2011			2011
(Dollars in millions)(unaudited)			Q1			Q4			Q1
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity			$      32,982			$     29,698			$     27,009
Less:  Average intangible assets(1)			(13,931)			(13,935)			(14,001)
Average tangible common equity			$      19,051			$     15,763			$     13,008
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity			$      36,950			$     29,666			$     27,550
Less:  Intangible assets(1)			(14,110)			(13,908)			(14,030)
Tangible common equity			$      22,840			$     15,758			$     13,520
Total Assets to Tangible Assets
Total assets			$    294,481			$    206,019			$    199,300
Less:  Assets from discontinued operations			(304)			(305)			(342)
Total assets from continuing operations			294,177			205,714			198,958
Less:  Intangible assets(1)			(14,110)			(13,908)			(14,030)
Tangible assets			$    280,067			$    191,806			$    184,928
Non-GAAP TCE Ratio
Tangible common equity			$      22,840			$      15,758			$      13,520
Tangible assets			280,067			191,806			184,928
TCE ratio (2)			8.2	%		8.2	%		7.3	%
Regulatory Capital Ratios (3)
Total stockholders' equity			$      36,950			$     29,666			$     27,550
Less:  Net unrealized (gains) losses on AFS securities recorded in AOCI (4)			(327)			(289)			(314)
	Net (gains) losses on cash flow hedges recorded in AOCI (4)		70			71			95
	Disallowed goodwill and other intangible assets		(14,057)			(13,855)			(13,993)
	Disallowed deferred tax assets		(902)			(534)			(1,377)
	Other		(2)			(2)			(2)
Tier 1 common capital			$      21,732			$     15,057			$     11,959
Plus:  Tier 1 restricted core capital items (5)			3,636			3,635			3,636
Tier 1 capital			$      25,368			$     18,692			$     15,595
Plus:  Long-term debt qualifying as Tier 2 capital			2,438			2,438			2,827
	Qualifying allowance for loan and lease losses		2,315			1,979			1,825
	Other Tier 2 components		17			23			20
Tier 2 capital			$        4,770			$       4,440			$       4,672
Total risk-based capital (6)			$      30,138			$     23,132			$     20,267
Risk-weighted assets (7)			$     182,779			$   155,657			$   142,495
Tier 1 common ratio (8)			11.9	%		9.7	%		8.4	%
Tier 1 risk-based capital ratio (9)			13.9			12.0			10.9
Total risk-based capital ratio (10)			16.5			14.9			14.2
___________________
(1)	Includes impact from related deferred taxes.
(2)	Calculated based on tangible common equity divided by tangible assets.
(3)	Capital ratios as of the end of Q1 2012 are preliminary and therefore subject to change once the calculations have been finalized.
(4)	Amounts presented are net of tax.
(5)	Consists primarily of trust preferred securities.
(6)	Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
(7)	Calculated based on prescribed regulatory guidelines.
(8)	Tier 1 common ratio is a regulatory measure calculated based on Tier 1 common capital divided by risk-weighted assets.
(9)	Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighed assets.
(10)	Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighed assets.

 

SOURCE Capital One Financial Corporation

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