CAPITAL ONE FINANCIAL CORP
For the period ended Dec 31, 2024. Filed Feb 20, 2025.
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FY2024 · Filed Feb 20, 2025
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Reconciliation of Non-GAAP Measures
Table B—Reconciliation of Non-GAAP Measures
The following non-GAAP measure consists of our adjusted results that we believe helps investors and users of our financial information understand the effect of adjusting items on our selected reported results; however, it may not be comparable to similarly-titled measures reported by other companies. This adjusted result provides alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following table presents reconciliations of the non-GAAP measure to the applicable amounts measured in accordance with U.S. GAAP. The non-GAAP measure below should not be viewed as a substitute for reported results determined in accordance with U.S. GAAP.
| December 31, | |||||
|---|---|---|---|---|---|
| (Dollars in millions, except as noted) · 2024 · 2023 · 2022 | |||||
| Adjusted operating efficiency ratio: | |||||
| Operating expense (U.S. GAAP) | $16,924 | $16,307 | $15,146 | ||
| Discover integration expenses | (234) | — | — | ||
| FDIC special assessment | (41) | (289) | — | ||
| Legal reserve activity | (75) | — | — | ||
| Insurance recoveries and legal reserve activity | — | — | 177 | ||
| Restructuring charges | — | — | (72) | ||
| Adjusted operating expense (non-GAAP) | $16,574 | $16,018 | $15,251 | ||
| Total net revenue (U.S. GAAP) | $39,112 | $36,787 | $34,250 | ||
| Walmart program agreement termination contra revenue impact | 27 | — | — | ||
| Adjusted net revenue (non-GAAP) | $39,139 | $36,787 | $34,250 | ||
| Operating efficiency ratio (U.S. GAAP) | 43.27% | 44.33% | 44.22% | ||
| Impact of adjustments noted above | (92)bps | (79) | bps | 31bps | |
| Adjusted operating efficiency ratio (non-GAAP) | 42.35% | 43.54% | 44.53% | ||
The following non-GAAP measures consist of TCE, tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. We consider these metrics to be key financial performance measures that management uses in assessing capital adequacy and the level of returns generated. While these non-GAAP 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. The following table presents reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with U.S. GAAP. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with U.S. GAAP.
| 117 | Capital One Financial Corporation (COF) |
| December 31, | |||
|---|---|---|---|
| (Dollars in millions, except as noted) | 2024 | 2023 | 2022 |
| Tangible Common Equity (Period-End): | |||
| Stockholders’ equity | $60,784 | $58,089 | $52,582 |
| Goodwill and other intangible assets(1) | (15,157) | (15,289) | (14,902) |
| Noncumulative perpetual preferred stock | (4,845) | (4,845) | (4,845) |
| Tangible common equity | $40,782 | $37,955 | $32,835 |
| Tangible Assets (Period-End): | |||
| Total assets | $490,144 | $478,464 | $455,249 |
| Goodwill and other intangible assets(1) | (15,157) | (15,289) | (14,902) |
| Tangible assets | $474,987 | $463,175 | $440,347 |
| Tangible Common Equity (Average): | |||
| Stockholders’ equity | $59,799 | $55,195 | $55,125 |
| Goodwill and other intangible assets(1) | (15,237) | (15,207) | (14,905) |
| Noncumulative perpetual preferred stock | (4,845) | (4,845) | (4,845) |
| Tangible common equity | $39,717 | $35,143 | $35,375 |
| Tangible Assets (Average): | |||
| Total assets | $480,451 | $467,807 | $440,538 |
| Goodwill and other intangible assets(1) | (15,237) | (15,207) | (14,905) |
| Tangible assets | $465,214 | $452,600 | $425,633 |
| TCE Ratio: | |||
| Tangible common equity (period-end) | $40,782 | $37,955 | $32,835 |
| Tangible assets (period-end) | 474,987 | 463,175 | 440,347 |
| TCE Ratio(2) | 8.6% | 8.2% | 7.5% |
| Tangible Book Value per Share: | |||
| Tangible common equity (period-end) | $40,782 | $37,955 | $32,835 |
| Outstanding Common Shares | 381.2 | 380.4 | 381.3 |
| Tangible book value per common share (period-end)(3) | $106.97 | $99.78 | $86.11 |
| Return on Tangible Assets (Average): | |||
| Net income | $4,750 | $4,887 | $7,360 |
| Tangible assets (Average) | 465,214 | 452,600 | 425,633 |
| Return on tangible assets(4) | 1.02% | 1.08% | 1.73% |
| Return on Tangible Common Equity (Average): | |||
| Net income available to common stockholders | $4,445 | $4,582 | $7,044 |
| Tangible common equity (Average) | 39,717 | 35,143 | 35,375 |
| Return on tangible common equity(5) | 11.18% | 13.04% | 19.91% |
(1)Includes impact of related deferred taxes.
(2)TCE ratio is a non-GAAP measure calculated based on TCE divided by period-end tangible assets.
(3)Tangible book value per common share is a non-GAAP measure calculated based on TCE divided by common shares outstanding.
(4)Return on average tangible assets is a non-GAAP measure calculated based on annualized net income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period.
(5)Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average TCE.
| 118 | Capital One Financial Corporation (COF) |
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