Cover and table of contents

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Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-13300

CAPITAL ONE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)


Delaware		54-1719854
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
1680 Capital One Drive,
McLean,	Virginia	22102
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (703) 720-1000 (Not Applicable) (Former name, former address and former fiscal year, if changed since last report)____________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock (par value $.01 per share)	COF	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I	COF PRI	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series J	COF PRJ	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K	COF PRK	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series L	COF PRL	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N	COF PRN	New York Stock Exchange
0.800% Senior Notes Due 2024	COF24	New York Stock Exchange
1.650% Senior Notes Due 2029	COF29	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 30, 2024, there were 381,922,067 shares of the registrant’s Common Stock outstanding.

TABLE OF CONTENTS


		Page
PART I - FINANCIAL INFORMATION		4














Item 1.	Financial Statements and Notes	72
	Consolidated Statements of Income	73
	Consolidated Statements of Comprehensive Income	74
	Consolidated Balance Sheets	75
	Consolidated Statements of Changes in Stockholders’ Equity	76
	Consolidated Statements of Cash Flows	77
	Notes to Consolidated Financial Statements	79
	Note 1—Summary of Significant Accounting Policies	79
	Note 2—Business Combinations	81
	Note 3—Investment Securities	82
	Note 4—Loans	85
	Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments	96
	Note 6—Variable Interest Entities and Securitizations	100
	Note 7—Goodwill and Other Intangible Assets	104
	Note 8—Deposits and Borrowings	106
	Note 9—Derivative Instruments and Hedging Activities	107
	Note 10—Stockholders’ Equity	115
	Note 11—Earnings Per Common Share	118
	Note 12—Fair Value Measurement	119
	Note 13—Business Segments and Revenue from Contracts with Customers	126
	Note 14—Commitments, Contingencies, Guarantees and Others	129





Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)	4
	Introduction	4

	Selected Financial Data	6
	Executive Summary	9
	Consolidated Results of Operations	10
	Consolidated Balance Sheets Analysis	16
	Off-Balance Sheet Arrangements	19
	Business Segment Financial Performance	20
	Critical Accounting Policies and Estimates	29
	Accounting Changes and Developments	30
	Capital Management	31
	Risk Management	36
	Credit Risk Profile	38
	Liquidity Risk Profile	51
	Market Risk Profile	56
	Supervision and Regulation	59
	Forward-Looking Statements	61
	Supplemental Table	64
	Glossary and Acronyms	66



			1			Capital One Financial Corporation (COF)


Item 3.	Quantitative and Qualitative Disclosures about Market Risk	133































Item 4.	Controls and Procedures	133












PART II—OTHER INFORMATION		134
Item 1.	Legal Proceedings	134
Item 1A.	Risk Factors	134
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	134
Item 3.	Defaults Upon Senior Securities	134
Item 4.	Mine Safety Disclosures	134
Item 5.	Other Information	134
Item 6.	Exhibits	134





EXHIBIT INDEX		135
SIGNATURES		136



			2			Capital One Financial Corporation (COF)

INDEX OF MD&A AND SUPPLEMENTAL TABLE


MD&A Tables:		Page
1	Consolidated Financial Highlights	6
2	Average Balances, Net Interest Income and Net Interest Margin	11
3	Rate/Volume Analysis of Net Interest Income	13
4	Non-Interest Income	14
5	Non-Interest Expense	15

6	Loans Held for Investment	17
7	Funding Sources Composition	17
8	Business Segment Results	21
9	Credit Card Business Results	22
9.1	Domestic Card Business Results	24
10	Consumer Banking Business Results	25
11	Commercial Banking Business Results	26
12	Other Category Results	28
13	Capital Ratios Under Basel III	33
14	Regulatory Risk-Based Capital Components and Regulatory Capital Metrics	34
15	Preferred Stock Dividends Paid Per Share	35
16	Portfolio Composition of Loans Held for Investment	38

17	Credit Card Portfolio by Geographic Region	39
18	Consumer Banking Portfolio by Geographic Region	40
19	Commercial Real Estate Portfolio by Region	41
20	Commercial Loans by Industry	42
21	Credit Score Distribution	43
22	30+ Day Delinquencies	44
23	Aging and Geography of 30+ Day Delinquent Loans	45
24	90+ Day Delinquent Loans Accruing Interest	46
25	Nonperforming Loans and Other Nonperforming Assets	46
26	Net Charge-Of f s	47

27	Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity	50

28	Liquidity Reserves	51
29	Deposits Composition and Average Deposits Interest Rates	53

30	Long-Term Debt Funding Activities	54
31	Senior Unsecured Long-Term Debt Credit Ratings	55

32	Interest Rate Sensitivity Analysis	58


Supplemental Table:





A	Reconciliation of Non-GAAP Measures	64



			3			Capital One Financial Corporation (COF)

PART I**—**FINANCIAL INFORMATION

Next: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)