Capital One Financial (COF) 8-K Other events

News Release

2980 Fairview Park Drive, Suite 1400, Falls Church, VA 22042-4525

October 15, 2002	Contacts:	Paul Paquin	Tatiana Stead
		V.P., Investor Relations	Corporate Media
		(703) 205-1039	(703) 205-1070

Capital One Reports Record Third Quarter Results
Raises 2002 Earnings per Share Growth Target to 35%
Maintains EPS Target for 2003

Falls Church, Va.(October 15, 2002) – Capital One Financial Corporation (NYSE: COF) today announced record earnings for the third quarter of 2002 of $258.8 million, or $1.13 per fully diluted share, versus earnings of $165.3 million, or $0.75 per share, for the comparable period in the prior year. This represents a 51 percent year-over-year increase in earnings per share. Earnings in the second quarter of 2002 were $213.1 million, or $0.92 per fully diluted share. The company also announced that it was raising its target for earnings per share growth for 2002 to 35 percent, up from the previous guidance of 30 percent. The company now expects to report earnings per share of approximately $3.93 for the year ending December 31, 2002. Also, the company maintained its 2003 earnings target at approximately $4.55 per share, which represents a 15 percent increase over the company’s expected 2002 earnings per share, and reaffirmed its long-term earnings per share growth target of 20 percent.

     “Capital One continues to deliver strong financial performance despite the challenging environment,” said Richard D. Fairbank, Capital One’s Chairman and Chief Executive Officer. “Assets grew by $3.6 billion in the quarter, profits are up over 50 percent over the same quarter of 2001, and credit quality performed as expected.”

     During the quarter, the company changed its financial statement presentation of recoveries for charged-off loan balances. The change was made to comply with the draft guidelines that were recently published by the Federal Financial Institutions Examination Council with respect to credit card industry account management. Under the company’s new presentation, recoveries of the principal portion of charged-off accounts continue to be treated as a reduction of current period charge-offs. Recoveries of finance charges and fees are now reported as revenue instead of a reduction of charge-offs, and are reflected in the appropriate income statement line items.

Capital One Reports Record First Quarter Earnings
Page 2

     The change in the treatment of recoveries also resulted in a change to the recoveries estimate used to calculate the company’s allowance for loan losses and its estimate for uncollectable finance charge and fee revenue. This change in estimate increased the provision for loan losses by $133 million and increased the amount of finance charges and fees deemed collectible by $83 million. Recoveries recorded in prior period financial statements have been reclassified to conform with the new financial statement presentation. The accompanying tables illustrate the overall effects of the new recoveries presentation on income statement items as well as key statistics including charge-off rate, net interest margin, and revenue margin.

     The company increased its allowance for loan losses by $358 million in the third quarter including $133 million due to the new recoveries presentation. The remainder of the allowance increase largely reflected growth in reported loans during the period.

     The managed net charge-off rate decreased to 4.96 percent for the third quarter of 2002 compared with 4.98 percent for the second quarter of 2002. Fifty-seven basis points of the third quarter charge-off rate and 62 basis points of the second quarter charge-off rate was due to the change in financial statement presentation of recoveries. The managed delinquency rate (30+ days) increased to 5.36 percent as of September 30, 2002, compared with 4.54 percent as of June 30, 2002 and 5.20 percent at September 30, 2001.

     Charge-offs are expected to rise in the fourth quarter of this year and the early part of next year due to the seasoning of subprime assets added in the fourth quarter of 2001 and early 2002, as well as the slowing of loan growth. The company expects that its managed charge-off rate will rise to the low-6 percent range in the fourth quarter. (This is consistent with previous guidance that the fourth quarter charge-offs would be in the mid-5 percent range, prior to recoveries reclassification.) The company expects charge-offs to rise to the high-6 percent range in the first half of 2003 and then decline somewhat in the second half of 2003.

     Third quarter 2002 revenue, defined as managed net interest income and non-interest income, rose to $2.6 billion from $2.4 billion in the second quarter of 2002. The company’s managed consumer loan balances increased by $3.7 billion in the third quarter to $56.9 billion. The company’s managed revenue margin increased by 36 basis points to 17.49 percent in the third quarter of 2002 from 17.13 percent in the second quarter of 2002. This increase reflects both the one-time and ongoing impacts detailed in the accompanying tables.

     Marketing expense for the third quarter of 2002 was $185.8 million, down from $320.4 million in the second quarter of 2002. Reflecting the lower marketing expense, Capital One’s accounts declined to 48.2 million from 48.6 million at the end of the second quarter. Other non-interest expenses (excluding marketing) for the third quarter of 2002 were $965.2 million versus $833.2 million for the second quarter

Capital One Reports Record First Quarter Earnings
Page 2

of 2002. Annualized operating expenses per account increased to $80 for the third quarter of 2002 from $70 in the prior quarter. The company incurred a number of one-time expenses totaling $110 million, or $9 in annualized operating costs per account.

     “The lower marketing investment in the third quarter reflects our return to a more normal level of loan growth,” said Nigel W. Morris, Capital One’s President and Chief Operating Officer. “We expect marketing to increase in 2003 as we take advantage of the attractive opportunities that we see in all major areas of our business including US card, installment and auto loans, and our international activities. This quarter clearly demonstrates our ability to grow our business and profitability on a stronger, more diversified business platform.”

     The company cautioned that its current expectations for fourth-quarter 2002 and full-year 2003 earnings, and future growth and charge-off expectations, are forward looking statements and actual results could differ materially from current expectations due to a number of factors, including: competition in the credit card industry; the actual account and balance growth achieved by the company; the company’s ability to access the capital markets at attractive rates and terms to fund its operations and future growth; changes in regulation; and general economic conditions affecting consumer income and spending, which may affect consumer bankruptcies, defaults and charge-offs. A discussion of these and other factors can be found in Capital One’s annual and other reports filed with the Securities and Exchange Commission, including, but not limited to, Capital One’s report on Form 10-K for the year ended December 31, 2001.

     Headquartered in Falls Church, Virginia, Capital One Financial Corporation (www.capitalone.com) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products. Capital One’s subsidiaries collectively had 48.2 million accounts and $56.9 billion in managed loans outstanding as of September 30, 2002. Capital One, aFortune500 company, is one of the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 500 index.

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Note: This release, financial information and a live Webcast of today’s 5:00pm (EDT) analyst conference call is accessible on the Internet on Capital One’s home page (http://www.capitalone.com). Choose “About Capital One” to access the Investor Center to view and download the earnings press release and other financial information.

Capital One Financial Corporation
Impact of Recoveries Reclassification — Managed
(in thousands)(unaudited)

		2002									2001
		Third			Second			First			Fourth			Third			Second			First
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter
Managed — Prior to Reclassification
	Net Interest Income	$	1,349,731		$	1,185,151		$	1,120,868		$	982,943		$	926,668		$	823,701		$	759,308
	Non-Interest Income	$	1,113,543		$	1,113,853		$	959,881		$	941,524		$	852,504		$	796,273		$	747,096
	Provision for Loan Losses	$	844,084		$	801,619		$	617,601		$	563,325		$	437,594		$	379,128		$	356,523
	Net Interest Margin		9.00	%		8.53	%		8.87	%		8.68	%		9.27	%		9.11	%		9.21	%
	Revenue Margin		16.42	%		16.55	%		16.47	%		16.99	%		17.79	%		17.91	%		18.27	%
	Net Charge-offs	$	607,300		$	559,131		$	466,683		$	456,861		$	362,744		$	332,815		$	285,950
	Net Charge-off Rate		4.39	%		4.36	%		4.00	%		4.42	%		3.92	%		3.98	%		3.75	%
Managed — After Reclassifed
	Net Interest Income	$	1,435,274		$	1,234,307		$	1,172,536		$	1,021,717		$	962,122		$	858,196		$	791,782
	Non-Interest Income	$	1,189,111		$	1,145,014		$	990,161		$	963,376		$	872,115		$	814,315		$	763,971
	Provision for Loan Losses	$	1,055,889		$	881,936		$	699,549		$	623,951		$	492,659		$	431,665		$	405,872
	Net Interest Margin		9.57	%		8.89	%		9.28	%		9.02	%		9.62	%		9.49	%		9.60	%
	Revenue Margin		17.49	%		17.13	%		17.12	%		17.53	%		18.35	%		18.49	%		18.87	%
	Net Charge-offs	$	685,677		$	639,448		$	548,631		$	517,487		$	417,809		$	385,352		$	335,299
	Net Charge-off Rate		4.96	%		4.98	%		4.70	%		5.01	%		4.51	%		4.61	%		4.40	%
Change in Managed
	Net Interest Income	$	85,543		$	49,156		$	51,668		$	38,774		$	35,454		$	34,495		$	32,474
	Non-Interest Income	$	75,568		$	31,161		$	30,280		$	21,852		$	19,611		$	18,042		$	16,875
	Provision for Loan Losses	$	211,805		$	80,317		$	81,948		$	60,626		$	55,065		$	52,537		$	49,349
	Net Interest Margin		0.57	% (1)		0.35	%		0.41	%		0.34	%		0.35	%		0.38	%		0.39	%
	Revenue Margin		1.07	% (2)		0.58	%		0.65	%		0.54	%		0.55	%		0.58	%		0.60	%
	Net Charge-offs	$	78,377		$	80,317		$	81,948		$	60,626		$	55,065		$	52,537		$	49,349
	Net Charge-off Rate		0.57	%		0.62	%		0.70	%		0.59	%		0.59	%		0.63	%		0.65	%

(1)	26 basis point increase in net interest margin relates to the one-time impact of the change in estimate.
(2)	55 basis point increase in revenue margin relates to the one-time impact of the change in estimate.

CAPITAL ONE FINANCIAL CORPORATION
Impact of the Recoveries Reclassification
For the Three Months Ended September 30, 2002
(in thousands)(unaudited)

							After Reclassification,
		Prior to			Recoveries		Prior to Change			Impact of			Q3 2002
		Recoveries Change			Reclassification		in Estimate			Change in Estimate			Managed
Managed:
	Net interest income	$	1,349,731		$	47,167	$	1,396,898		$	38,376		$	1,435,274
	Non-interest Income		1,113,543			31,210		1,144,753			44,358			1,189,111
	Total revenue		2,463,274			78,377		2,541,651			82,734			2,624,385
	Provision for loan losses		844,084			78,377		922,461			133,428			1,055,889
	Marketing		185,795					185,795						185,795
	Operations costs		965,225					965,225						965,225
	Income before income taxes		468,170			—		468,170			(50,694	)		417,476
	Income taxes		177,905					177,905			(19,264	)		158,641
	Net income	$	290,265		$	—	$	290,265		$	(31,430	)	$	258,835
	Diluted EPS	$	1.27				$	1.27					$	1.13
	Revenue Margin		16.42	%				16.94	%					17.49	%
	Net Interest Margin		9.00	%				9.31	%					9.57	%
	Risk Adjusted Margin		12.37	%				12.37	%					12.92	%
	Charge-off Rate		4.39	%				4.96	%					4.96	%
	Delinquency Rate		5.22	%				5.22	%					5.36	%
	Allowance to Reported Loans		5.20	%				5.20	%					5.68	%

During the third quarter, the company changed its financial statement presentation of recoveries for charged-off loans. The change was made in response to draft guidelines that were recently published by the Federal Financial Institutions Examination Council with respect to credit card account management. Previously, the company recognized all recoveries of charged-off loans in the allowance for loan losses and provision for loan losses. The company now treats the portion of recoveries related to finance charges and fees as revenue. All prior-period recoveries have been reclassified to conform to the current financial statement presentation of recoveries.

In the third quarter, the change in the treatment of recoveries also resulted in a change to the recoveries estimate used to calculate the company’s allowance for loan losses and its finance charge and fee revenue.

The tables above illustrate the overall effects of the change in the treatment of recoveries on income statement items as well as key statistics.

Capital One Financial Corporation
Impact of Recoveries Reclassification — Reported
(in thousands)(unaudited)

		2002									2001
		Third			Second			First			Fourth			Third			Second			First
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter
Reported — Prior to Reclassification
	Net Interest Income	$	663,596		$	629,577		$	584,107		$	489,780		$	427,821		$	370,070		$	375,719
	Non-Interest Income	$	1,463,043		$	1,369,586		$	1,226,250		$	1,177,251		$	1,144,190		$	1,073,676		$	1,024,776
	Provision for Loan Losses	$	507,449		$	501,780		$	347,212		$	305,889		$	230,433		$	202,900		$	250,614
	Net Interest Margin		8.18	%		8.21	%		8.56	%		8.09	%		8.09	%		7.63	%		8.36	%
	Revenue Margin		26.21	%		26.07	%		26.53	%		27.55	%		29.73	%		29.76	%		31.14	%
	Net Charge-offs	$	270,665		$	259,292		$	196,295		$	199,426		$	155,584		$	156,586		$	180,041
	Net Charge-off Rate		4.08	%		4.09	%		3.50	%		4.11	%		3.55	%		3.76	%		4.64	%
Reported — After Reclassified
	Net Interest Income	$	722,429		$	654,412		$	611,238		$	511,768		$	449,058		$	392,008		$	397,308
	Non-Interest Income	$	1,520,178		$	1,384,812		$	1,241,524		$	1,189,015		$	1,155,421		$	1,084,255		$	1,035,071
	Provision for Loan Losses	$	674,111		$	541,841		$	389,617		$	339,641		$	262,901		$	235,417		$	282,498
	Net Interest Margin		8.91	%		8.53	%		8.96	%		8.46	%		8.49	%		8.08	%		8.84	%
	Revenue Margin		27.64	%		26.59	%		27.15	%		28.10	%		30.34	%		30.43	%		31.85	%
	Net Charge-offs	$	303,899		$	299,353		$	238,700		$	233,178		$	188,052		$	189,103		$	211,925
	Net Charge-off Rate		4.58	%		4.72	%		4.26	%		4.81	%		4.29	%		4.54	%		5.47	%
Change in Reported
	Net Interest Income	$	58,833		$	24,835		$	27,131		$	21,988		$	21,237		$	21,938		$	21,589
	Non-Interest Income	$	57,135		$	15,226		$	15,274		$	11,764		$	11,231		$	10,579		$	10,295
	Provision for Loan Losses	$	166,662		$	40,061		$	42,405		$	33,752		$	32,468		$	32,517		$	31,884
	Net Interest Margin		0.73	% (1)		0.32	%		0.40	%		0.36	%		0.40	%		0.45	%		0.48	%
	Revenue Margin		1.43	% (2)		0.52	%		0.62	%		0.56	%		0.61	%		0.67	%		0.71	%
	Net Charge-offs	$	33,234		$	40,061		$	42,405		$	33,752		$	32,468		$	32,517		$	31,884
	Net Charge-off Rate		0.50	%		0.63	%		0.76	%		0.70	%		0.74	%		0.78	%		0.83	%

(1)	47 basis point increase in net interest margin relates to the one-time impact of the change in estimate.
(2)	102 basis point increase in revenue margin relates to the one-time impact of the change in estimate.

CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY

	2002			2002			2002			2001			2001
(in millions, except per share data and as noted)	Q3			Q2			Q1			Q4			Q3
Earnings (Managed Basis)
Net Interest Income	$	1,435.3		$	1,234.3		$	1,172.5		$	1,021.7		$	962.1
Non-Interest Income		1,189.1			1,145.0			990.2			963.4			872.1
Total Revenue		2,624.4			2,379.3			2,162.7			1,985.1			1,834.2
Provision for Loan Losses		1,055.9			881.9			699.5			624.0			492.7
Marketing Expenses		185.8			320.4			353.5			301.2			281.9
Operating Expenses		965.2	(2)		833.2			806.4			773.4			793.0	(2)
Income Before Taxes		417.5			343.7			303.3			286.6			266.7
Tax Rate		38.0	%		38.0	%		38.0	%		38.0	%		38.0	%
Net Income	$	258.8		$	213.1		$	188.0		$	177.7		$	165.3
Common Share Statistics
Basic EPS	$	1.17		$	0.97		$	0.86		$	0.83		$	0.78
Diluted EPS	$	1.13		$	0.92		$	0.83		$	0.80		$	0.75
Dividends Per Share	$	0.03		$	0.03		$	0.03		$	0.03		$	0.03
Book Value Per Share (period end)	$	19.55		$	18.13		$	16.69		$	15.33		$	14.14
Stock Price Per Share (period end)	$	34.92		$	61.05		$	63.85		$	53.95		$	46.03
Total Market Capitalization (period end)	$	7,744.2		$	13,512.9		$	14,079.3		$	11,695.2		$	9,710.1
Shares Outstanding (period end)		221.8			221.3			220.5			216.8			211.0
Shares Used to Compute Basic EPS		220.6			220.0			217.5			214.7			210.8
Shares Used to Compute Diluted EPS		228.4			231.7			226.6			223.4			219.9
Managed Loan Statistics (period avg.)
Average Loans	$	55,350		$	51,343		$	46,688		$	41,352		$	37,017
Average Earning Assets	$	60,016		$	55,559		$	50,538		$	45,295		$	39,994
Average Assets	$	64,193		$	59,989		$	54,258		$	48,906		$	43,363
Average Equity	$	4,418		$	4,021		$	3,572		$	3,223		$	2,935
Net Interest Margin		9.57	%		8.89	%		9.28	%		9.02	%		9.62	%
Revenue Margin		17.49	%		17.13	%		17.12	%		17.53	%		18.35	%
Risk Adjusted Margin (1)		12.92	%		12.53	%		12.78	%		12.96	%		14.17	%
Return on Average Assets (ROA)		1.61	%		1.42	%		1.39	%		1.45	%		1.53	%
Return on Average Equity (ROE)		23.43	%		21.20	%		21.06	%		22.05	%		22.53	%
Net Charge-Off Rate		4.96	%		4.98	%		4.70	%		5.01	%		4.51	%
Net Charge-Offs	$	685.7		$	639.4		$	548.6		$	517.5		$	417.8
Cost Per Account (in dollars)	$	79.79		$	69.99		$	71.33		$	73.69		$	81.03
Managed Loan Statistics (period end)
Reported Loans	$	28,104		$	24,965		$	24,428		$	20,921		$	17,480
Off-Balance Sheet Loans		28,779			28,243			24,136			24,343			21,009
Managed Loans	$	56,883		$	53,208		$	48,564		$	45,264		$	38,489
Delinquency Rate (30+ days)		5.36	%		4.54	%		4.80	%		4.95	%		5.20	%
Number of Accounts (000’s)		48,163			48,612			46,623			43,815			40,145
Total Assets	$	65,614		$	62,022		$	55,381		$	52,506		$	44,497
Capital (3)	$	5,149.6		$	4,823.6		$	3,778.4		$	3,422.2		$	3,081.9
Capital to Managed Assets Ratio		7.85	%		7.78	%		6.82	%		6.52	%		6.93	%

⁽¹⁾  Risk adjusted margin is total revenue less net charge-offs as a percentage of average earning assets.

⁽²⁾  Includes $110.0 million and $38.8 million of one-time charges in Q3 2002 and Q3 2001, respectively.

⁽³⁾  Includes preferred interests and mandatory convertible securities.

CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUPPLEMENT

	2002			2002			2002			2001			2001
(in millions, except per share data and as noted)	Q3			Q2			Q1			Q4			Q3
Revenue & Expense Statistics
Net interest income growth (annualized)		65	%		21	%		59	%		25	%		48	%
Non interest income growth (annualized)		15	%		63	%		11	%		42	%		28	%
Revenue growth (annualized)		41	%		40	%		36	%		33	%		39	%
Revenue margin (receivables)		18.97	%		18.54	%		18.53	%		19.20	%		19.82	%
Risk adjusted margin (receivables)		14.01	%		13.55	%		13.83	%		14.20	%		15.31	%
Ops cost as a % of revenues		36.78	%		35.02	%		37.28	%		38.96	%		43.23	%
Ops cost as a % of average loans (annualized)		6.98	%		6.49	%		6.91	%		7.48	%		8.57	%
Per Account Statistics
Net interest income per account (annualized)	$	118.65		$	103.69		$	103.72		$	97.35		$	98.31
Non interest income per account (annualized)	$	98.30		$	96.18		$	87.59		$	91.79		$	89.12
Revenue per account (annualized)	$	216.95		$	199.87		$	191.31		$	189.15		$	187.43
Net income per account (annualized)	$	21.39		$	17.90		$	16.63		$	16.93		$	16.90
Ops cost per account (annualized)	$	79.79		$	69.99		$	71.33		$	73.69		$	81.03
Credit Quality Statistics
Allowance as a % of reported loans		5.68	%		4.95	%		4.05	%		4.02	%		4.16	%
Allowance as a % of charge-offs (annualized)		131.21	%		103.29	%		103.69	%		90.05	%		96.62	%
Provision as a % of charge-offs		153.99	%		137.92	%		127.51	%		120.57	%		117.92	%
Growth Statistics
Average accounts (000’s)		48,388			47,618			45,219			41,980			39,146
Net new accounts per quarter (000’s)		(449	)		1,989			2,808			3,670			1,999
% account growth Q over Q (annualized)		(4	)%		17	%		26	%		37	%		21	%
% account growth Y over Y		20	%		27	%		28	%		30	%		36	%
Net new loans	$	3,675		$	4,644		$	3,300		$	6,775		$	3,206
% loan growth Q over Q (annualized)		28	%		38	%		29	%		70	%		36	%
% loan growth Y over Y		48	%		51	%		54	%		53	%		59	%
Balance Sheet Measures
% off-balance sheet securitizations		51	%		53	%		50	%		54	%		55	%
% at teaser rate (introductory)		11	%		12	%		13	%		12	%		10	%

NR — Measure not relevant

CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)

		September 30			June 30			September 30
		2002			2002			2001
Assets:
Cash and due from banks		$	316,010		$	244,857		$	64,884
Federal funds sold and resale agreements			304,782			432,124			365,652
Interest-bearing deposits at other banks			112,248			448,363			102,094
	Cash and cash equivalents		733,040			1,125,344			532,630
Securities available for sale			4,290,441			4,538,223			2,707,564
Consumer loans			28,104,186			24,965,210			17,479,715
	Less: Allowance for loan losses		(1,595,000	)		(1,237,000	)		(727,000	)
Net loans			26,509,186			23,728,210			16,752,715
Accounts receivable from securitizations			2,584,528			2,417,775			1,949,361
Premises and equipment, net			789,726			808,972			740,144
Interest receivable			182,300			151,828			108,868
Other			1,820,749			1,064,127			722,155
	Total assets	$	36,909,970		$	33,834,479		$	23,513,437
Liabilities:
Interest-bearing deposits		$	16,885,553		$	16,014,392		$	11,075,499
Senior notes			5,561,489			6,069,719			5,462,025
Other borrowings			6,638,560			4,590,716			1,810,208
Interest payable			214,220			235,108			148,931
Other			3,274,637			2,910,638			2,033,481
	Total liabilities		32,574,459			29,820,573			20,530,144
Stockholders’ Equity:
Common stock			2,227			2,222			2,121
Paid-in capital, net			1,636,738			1,600,489			1,154,211
Retained earnings and cumulative other comprehensive income			2,731,498			2,446,147			1,872,520
	Less: Treasury stock, at cost		(34,952	)		(34,952	)		(45,559	)
	Total stockholders’ equity		4,335,511			4,013,906			2,983,293
	Total liabilities and stockholders’ equity	$	36,909,970		$	33,834,479		$	23,513,437

CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)

		Three Months Ended						Nine Months Ended
		September 30		June 30		September 30		September 30		September 30
		2002		2002		2001		2002		2001
Interest Income:
Consumer loans, including fees		$	1,022,810	$	950,092	$	688,572	$	2,836,989	$	1,970,854
Securities available for sale			45,965		45,815		37,032		134,124		99,208
Other			39,304		28,754		18,323		95,989		24,481
	Total interest income		1,108,079		1,024,661		743,927		3,067,102		2,094,543
Interest Expense:
Deposits			215,470		203,112		161,411		596,745		463,851
Senior notes			110,464		109,687		90,225		314,055		261,360
Other Borrowings			59,716		57,450		43,233		168,222		130,958
	Total interest expense		385,650		370,249		294,869		1,079,022		856,169
Net interest income			722,429		654,412		449,058		1,988,080		1,238,374
Provision for loan losses			674,111		541,841		262,901		1,605,570		780,816
Net interest income after provision for loan losses			48,318		112,571		186,157		382,510		457,558
Non-Interest Income:
Servicing and securitizations			815,267		718,347		657,175		2,159,761		1,805,296
Service charges and other customer-related fees			586,708		529,112		401,544		1,633,101		1,204,225
Interchange			118,203		137,353		96,702		353,652		265,226
	Total non-interest income		1,520,178		1,384,812		1,155,421		4,146,514		3,274,747
Non-Interest Expense:
Salaries and associate benefits			417,189		379,363		349,487		1,177,287		1,017,279
Marketing			185,795		320,446		281,910		859,777		781,819
Communications and data processing			106,128		101,601		92,735		299,922		240,933
Supplies and equipment			88,639		88,844		77,497		261,990		225,880
Occupancy			86,942		38,275		32,151		158,598		94,802
Other			266,327		225,117		241,117		706,987		622,747
	Total non-interest expense		1,151,020		1,153,646		1,074,897		3,464,561		2,983,460
Income before income taxes			417,476		343,737		266,681		1,064,463		748,845
Income taxes			158,641		130,620		101,337		404,496		284,561
Net income		$	258,835	$	213,117	$	165,344	$	659,967	$	464,284
Basic earnings per share		$	1.17	$	0.97	$	0.78	$	3.00	$	2.23
Diluted earnings per share		$	1.13	$	0.92	$	0.75	$	2.88	$	2.11
Dividends paid per share		$	0.03	$	0.03	$	0.03	$	0.08	$	0.08

CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)

Managed (1)		Quarter Ended 9/30/02							Quarter Ended 6/30/02							Quarter Ended 9/30//01
		Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/
		Balance		Expense		Rate			Balance		Expense		Rate			Balance		Expense		Rate
Earning assets:
	Consumer loans	$	55,350,137	$	2,081,399		15.04	%	$	51,342,764	$	1,838,672		14.32	%	$	37,017,405	$	1,472,821		15.91	%
	Securities available for sale		3,877,119		45,965		4.74			3,662,832		45,815		5.00			2,645,982		37,032		5.60
	Other		788,347		5,122		2.60			553,595		2,110		1.52			330,863		2,646		3.20
Total earning assets		$	60,015,603	$	2,132,486		14.21	%	$	55,559,191	$	1,886,597		13.58	%	$	39,994,250	$	1,512,499		15.13	%
Interest-bearing liabilities:
	Deposits	$	16,519,572	$	215,470		5.22	%	$	15,276,514	$	203,112		5.32	%	$	10,537,193	$	161,411		6.13	%
	Senior notes		5,718,548		110,464		7.73			5,959,240		109,687		7.36			5,280,860		90,225		6.83
	Other borrowings		5,631,470		59,716		4.24			5,946,983		57,450		3.86			3,103,263		43,233		5.57
	Securitization liability		28,740,188		311,562		4.34			25,965,894		282,041		4.34			19,472,058		255,508		5.25
Total interest-bearing liabilities		$	56,609,778	$	697,212		4.93	%	$	53,148,631	$	652,290		4.91	%	$	38,393,374	$	550,377		5.73	%
Net interest spread							9.28	%						8.66	%						9.40	%
Interest income to average earning assets							14.21	%						13.58	%						15.13	%
Interest expense to average earning assets							4.64							4.69							5.51
Net interest margin							9.57	%						8.89	%						9.62	%

(1) The information in this table reflects the adjustment to add back the effect of securitized loans.