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Capital One Reports Earnings for 2005
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Company Provides Earnings Guidance for 2006

MCLEAN, Va., Jan. 19 /PRNewswire-FirstCall/ -- Capital One Financial Corporation (NYSE: COF) today announced earnings per share (diluted) for 2005 of $6.73. Additionally, the company provided earnings guidance for 2006 of between $7.40 and $7.80 per share (diluted).

Earnings were $1.8 billion, or $6.73 per share (diluted), for the year compared with $1.5 billion or $6.21 per share (diluted), in 2004. Earnings for the fourth quarter of 2005 were $280.3 million, or $.97 per share (diluted), compared with $195.1 million, or $.77 per share (diluted), for the fourth quarter of 2004, and $491.1 million, or $1.81 per share (diluted), in the previous quarter.

Current period results include a $30.6 million contribution to net income from the acquisition of Hibernia Corporation, which was completed on November 16, 2005.

"Capital One delivered another year of solid results across our diversified consumer financial services businesses and is well-positioned for continued growth and profitability in 2006," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "With the addition of Hibernia, we have further expanded our broad portfolio of lending and deposit products, as well as our distribution channels, to better serve our customers."

Managed loans at December 31, 2005 were $105.5 billion, up $25.7 billion, or 32 percent, from December 31, 2004. This includes organic growth in the quarter of $4.4 billion and $16.3 billion of loans acquired through Hibernia. Excluding the impact of Hibernia, managed loans grew 12 percent in 2005, in line with expectations. The company expects that managed loans will grow at a rate of between 7 and 9 percent during 2006.

The managed charge-off rate increased to 4.53 percent in the fourth quarter of 2005 from 4.14 percent in the previous quarter, and 4.37 percent in the fourth quarter of 2004, principally driven by the unusually high volume of bankruptcy filings in October in advance of the effective date of the new bankruptcy legislation. The company built its allowance for loan losses by $126.6 million in the fourth quarter of 2005, driven largely by the growth in reported loans.

The managed delinquency rate (30+ days) decreased to 3.24 percent as of December 31, 2005, driven largely by the addition of Hibernia loans to the portfolio. The delinquency rate decreased from 3.73 percent as of the end of the previous quarter and from 3.82 percent as of December 31, 2004.

Capital One's managed revenue margin decreased to 12.06 percent in the fourth quarter of 2005 from 12.54 percent in the previous quarter, primarily due to the addition of Hibernia's loan portfolio. The company's managed revenue margin was 12.66 percent in the fourth quarter of 2004. Return on managed assets for 2005 of 1.72 percent remained consistent with 1.73 percent in 2004.

"Expectations for continued steady growth in 2006 allow us to provide earnings guidance of between $7.40 and $7.80 per share (diluted) for 2006," said Gary L. Perlin, Capital One's Chief Financial Officer. "We also expect continued stability in return on managed assets in 2006 as decreases in revenue margin are expected to be offset primarily by reductions in provision expense and also by reductions in operating costs as a percent of assets."

Fourth quarter marketing expenses increased $103.7 million to $447.4 million from $343.7 million in the previous quarter and decreased $63.7 million from the fourth quarter of 2004. Marketing expenses for 2005 were $1.4 billion, up three percent over the $1.3 billion in marketing expenses in 2004.

Annualized operating expenses as a percentage of average managed loans increased to 5.27 percent in the fourth quarter of 2005, from 4.88 percent in the previous quarter and decreased from 5.44 percent in the fourth quarter of 2004.

The company generates earnings from its managed loan portfolio, which includes both on-balance sheet loans and securitized (off-balance sheet) loans. For this reason, the company believes managed financial measures to be useful to stakeholders. In compliance with Regulation G of the Securities and Exchange Commission, the company is providing a numerical reconciliation of managed financial measures to comparable measures calculated on a reported basis using generally accepted accounting principles (GAAP). Please see the schedule titled "Reconciliation to GAAP Financial Measures" attached to this release for more information.

The company cautions that its current expectations in this release, in the presentation slides available on the company's website and on its Form 8-K dated January 19, 2006 for 2006 earnings, return on assets, loan growth rates, operating costs, and the company's plans, objectives, expectations and intentions are forward-looking statements and actual results could differ materially from current expectations due to a number of factors, including: continued intense competition from numerous providers of products and services which compete with our businesses; changes in our aggregate accounts and balances, and the growth rate and composition thereof; the company's ability to continue to diversify its assets; the company's ability to access the capital markets at attractive rates and terms to fund its operations and future growth; changes in the reputation of the credit card industry and/or the company with respect to practices or products; the success of the company's marketing efforts; the company's ability to execute on its strategic and operating plans; and general economic conditions affecting interest rates and consumer income and spending, which may affect consumer bankruptcies, defaults, and charge-offs; the risks that the Hibernia businesses will not be integrated successfully and that the cost savings and other synergies from the Hibernia transaction may not be fully realized; the long-term impact of the Gulf Coast hurricanes on the impacted region, including the amount of property and credit losses, the amount of investment, including deposits, in the region, and the pace and magnitude of economic recovery in the region.

A discussion of these and other factors can be found in Capital One's annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, Capital One's report on Form 10-Q for the quarter ended September 30, 2005.

About Capital One

Headquartered in McLean, Virginia, Capital One Financial Corporation (http://www.capitalone.com) is a financial holding company whose principal subsidiaries, Capital One Bank, Capital One, F.S.B., Capital One Auto Finance, Inc., and Hibernia National Bank (http://www.hibernia.com), offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One's subsidiaries collectively had $47.9 billion in deposits and $105.5 billion in managed loans outstanding as of December 31, 2005. Capital One, a Fortune 500 company, trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 500 index.

NOTE: Fourth quarter 2005 financial results, SEC Filings, and fourth quarter earnings conference call slides are accessible on Capital One's home page (http://www.capitalone.com). Choose "Investors" on the bottom right corner of the home page to view and download the earnings press release, slides, and other financial information. Additionally, a webcast of today's 5:00 pm (ET) earnings conference call is accessible through the same link.



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
                FINANCIAL & STATISTICAL SUMMARY REPORTED BASIS

                                        2005          2005          2004
    (in millions, except per share
     data and as noted)                  Q4            Q3            Q4

    Earnings (Reported Basis)
    Net Interest Income              $ 1,037.0     $   910.2     $   784.6
    Non-Interest Income                1,665.5(3)    1,594.6(2)    1,521.5(1)
    Total Revenue(4)                   2,702.5       2,504.8       2,306.1
    Provision for Loan Losses            565.7         374.2(2)      467.1
    Marketing Expenses                   447.4         343.7         511.1
    Operating Expenses                 1,241.7(5)    1,021.9       1,045.4
    Income Before Taxes                  447.7         765.0         282.5
    Tax Rate                              37.3 %        35.8 %        30.9 %
    Net Income                       $   280.3(6)  $   491.1     $   195.1

    Common Share Statistics
    Basic EPS                        $    1.01     $    1.88     $    0.82
    Diluted EPS                      $    0.97     $    1.81     $    0.77
    Dividends Per Share              $    0.03     $    0.03     $    0.03
    Book Value Per Share (period
     end)                            $   46.97     $   41.40     $   33.99
    Stock Price Per Share (period
     end)                            $   86.40     $   79.52     $   84.21
    Total Market Capitalization
     (period end)                    $25,989.1     $21,200.0     $20,783.0
    Shares Outstanding (period end)      300.8         266.6         246.8
    Shares Used to Compute Basic EPS     278.8         260.9         239.2
    Shares Used to Compute Diluted
     EPS                                 287.7         270.7         253.0

    Reported Balance Sheet
     Statistics (period avg.)
    Average Loans                    $  48,701     $  38,556     $  36,096
    Average Earning Assets           $  66,624     $  53,453     $  49,500
    Average Assets                   $  74,443     $  59,204     $  53,339
    Average Equity                   $  12,528     $  10,802     $   8,221
    Return on Average Assets (ROA)        1.51 %        3.32 %        1.46 %
    Return on Average Equity (ROE)        8.95 %       18.19 %        9.49 %

    Reported Balance Sheet
     Statistics (period end)
    Loans                            $  59,848     $  38,852     $  38,216
    Total Assets                     $  88,701     $  60,425     $  53,747
    Loan growth                      $  20,996     $     241     $   3,055
    % Loan Growth Q Over Q
     (annualized)                          216 %           2 %          35 %
    % Loan Growth Y Over Y                  57 %          10 %          16 %

    Revenue & Expense Statistics
     (Reported)
    Net Interest Income Growth
     (annualized)                           56 %          17 %           5 %
    Non Interest Income Growth
     (annualized)                           18 %           3 %          (5)%
    Revenue Growth (annualized)             32 %           8 %          (2)%
    Net Interest Margin                   6.23 %        6.81 %        6.34 %
    Revenue Margin                       16.23 %       18.74 %       18.64 %
    Risk Adjusted Margin (7)             13.52 %       16.18 %       15.85 %
    Operating Expense as a % of
     Revenues                            45.95 %       40.80 %       45.33 %
    Operating Expense as a % of Avg
     Loans (annualized)                  10.20 %       10.60 %       11.58 %

    Asset Quality Statistics
     (Reported)
    Allowance                        $   1,790     $   1,447(2)  $   1,505
    30+ Day Delinquencies            $   1,879     $   1,497     $   1,472
    Net Charge-Offs                  $     451     $     342     $     345
    Allowance as a % of Reported
     Loans                                2.99 %        3.72 %        3.94 %
    Delinquency Rate (30+ days)           3.14 %        3.85 %        3.85 %
    Net Charge-Off Rate                   3.70 %        3.55 %        3.82 %


    (1) Includes a $41.1 million gain resulting from the sale of the French
    loan portfolio in Q4 2004.

    (2) Includes a $15.6 million write-down for retained interests and a $28.5
    million build in the allowance for loan losses related to the impact of
    the Gulf Coast Hurricanes. This also includes a $48.0 million write-down
    for retained interests and a $27.0 million build in the allowance related
    to the spike in bankruptcies experienced immediately before The Bankruptcy
    Abuse Prevention and Consumer Protection Act of 2005 became effective in
    October 2005.

    (3) Includes a $34.0 million gain from the sale of previously purchased
    charged-off loan portfolios.

    (4) In accordance with the Company's finance charge and fee revenue
    recognition policy, the amounts billed to customers but not recognized as
    revenue were as follows: Q4 2005 - $227.9, Q3 2005 - $255.6, Q2 2005 -
    $259.8, Q1 2005 - $243.9 and Q4 2004 - $276.8.

    (5) Includes a $28.2 million impairment charge related to our insurance
    business in Global Financial Services and a $20.6 million prepayment
    penalty for the refinancing of the McLean Headquarters facility.

    (6) The operations of Hibernia contributed $30.6 million to net income.
    Capital One also spent $2.3 million in integration costs during the
    quarter. See Impact of Hibernia Corporation Acquisition schedule.

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



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
               FINANCIAL & STATISTICAL SUMMARY MANAGED BASIS(1)

                                         2005         2005         2004
    (in millions)                         Q4           Q3           Q4

    Earnings (Managed Basis)
    Net Interest Income                $ 2,075.2    $ 1,931.2    $ 1,701.8
    Non-Interest Income                  1,243.4(4)   1,099.8(3)   1,099.0(2)
    Total Revenue(5)                     3,318.6      3,031.0      2,800.8
    Provision for Loan Losses            1,181.8        900.4(3)     961.8
    Marketing Expenses                     447.4        343.7        511.1
    Operating Expenses                   1,241.7(6)   1,021.9      1,045.4
    Income Before Taxes                    447.7        765.0        282.5
    Tax Rate                                37.3 %       35.8 %       30.9 %
    Net Income                         $   280.3(7) $   491.1    $   195.1

    Managed Balance Sheet Statistics
     (period avg.)
    Average Loans                      $  94,241    $  83,828    $  76,930
    Average Earning Assets             $ 110,096    $  96,696    $  88,461
    Average Assets                     $ 119,406    $ 103,913    $  93,574
    Return on Average Assets (ROA)          0.94 %       1.89 %       0.83 %

    Managed Balance Sheet Statistics
     (period end)
    Loans                              $ 105,527    $  84,768    $  79,861
    Total Assets                       $ 133,786    $ 105,743    $  94,792
    Loan Growth                        $  20,759    $   1,817    $   4,404
    % Loan Growth Q over Q
     (annualized)                             98 %          9 %         23 %
    % Loan Growth Y over Y                    32 %         12 %         12 %
    Tangible Assets(8)                 $ 129,484    $ 105,007    $  94,440
    Tangible Capital(9)                $   9,994    $  10,400    $   8,730
    Tangible Capital to Tangible
     Assets Ratio                           7.72 %       9.90 %       9.24 %
    Number of Accounts (000s)(10)         49,113       49,192       48,573
    % Off-Balance Sheet
     Securitizations                          43 %         54 %         52 %
    % at Introductory Rate(10)                 8 %          6 %          7 %

    Revenue & Expense Statistics
     (Managed)
    Net Interest Income Growth
     (annualized)                             30 %         22 %          8 %
    Non Interest Income Growth
     (annualized)                             52 %        (16)%          0 %
    Revenue Growth (annualized)               38 %          8 %          4 %
    Net Interest Margin                     7.54 %       7.99 %       7.70 %
    Revenue Margin                         12.06 %      12.54 %      12.66 %
    Risk Adjusted Margin(11)                8.18 %       8.95 %       8.87 %
    Operating Expense as a % of
     Revenues                              37.42 %      33.71 %      37.33 %
    Operating Expense as a % of
     Avg Loans (annualized)                 5.27 %       4.88 %       5.44 %

    Asset Quality Statistics (Managed)
    30+ Day Delinquencies              $   3,424    $   3,164    $   3,054
    Net Charge-Offs                    $   1,067    $     868    $     840
    Delinquency Rate (30+ days)             3.24 %       3.73 %       3.82 %
    Net Charge-Off Rate                     4.53 %       4.14 %       4.37 %


    (1) The information in this statistical summary reflects the adjustment to
    add back the effect of securitization transactions qualifying as sales
    under generally accepted accounting principles. See accompanying schedule
    - "Reconciliation to GAAP Financial Measures."

    (2) Includes a $41.1 million gain resulting from the sale of the French
    loan portfolio in Q4 2004.

    (3) Includes a $15.6 million write-down for retained interests and a $28.5
    million build in the allowance for loan losses related to the impact of
    the Gulf Coast Hurricanes. This also includes a $48.0 million write-down
    for retained interests and a $27.0 million build in the allowance related
    to the spike in bankruptcies experienced immediately before The Bankruptcy
    Abuse Prevention and Consumer Protection Act of 2005 became effective in
    October 2005.

    (4) Includes a $34.0 million gain from the sale of previously purchased
    charged-off loan portfolios.

    (5) In accordance with the Company's finance charge and fee revenue
    recognition policy, the amounts billed to customers but not recognized as
    revenue were as follows: Q4 2005 - $227.9, Q3 2005 - $255.6, Q2 2005 -
    $259.8, Q1 2005 - $243.9 and Q4 2004 - $276.8.

    (6) Includes a $28.2 million impairment charge related to our insurance
    business in Global Financial Services and a $20.6 million prepayment
    penalty for the refinancing of the McLean Headquarters facility.

    (7) The operations of Hibernia contributed $30.6 million to net income.
    Capital One also spent $2.3 million in integration costs during the
    quarter.

    (8) Includes managed assets less intangible assets.

    (9) Includes stockholders' equity and preferred interests for all periods
    presented, 80% of mandatory convertible securities for all periods prior
    to Q2 2005, less intangible assets. Tangible Capital on a reported and
    managed basis is the same.

    (10) Does not include the accounts or loan balances of Hibernia
    Corporation.

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



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
               IMPACT OF HIBERNIA CORPORATION (HIB) ACQUISITION


                                          Q4 2005
    (in millions, except per share data                            COF w/out
     and as noted)                           COF         HIB(1)       HIB

    Earnings (Reported Basis)
    Total Revenue                         $ 2,702.5    $   163.2   $ 2,539.3
    Provision for Loan Losses                 565.7         11.1       554.6
    Total Non-interest Expense              1,689.1        108.1     1,581.0
    Net Income                            $   280.3    $    30.6   $   249.7

    Common Share Statistics
    Diluted EPS                           $    0.97                $    0.92
    Shares Used to Compute Diluted EPS        287.7                    271.1

    Reported Balance Sheet Statistics
     (period end)
    Liquidity Portfolio(2)                $  16,399    $   5,879   $  10,520
    Loans                                 $  59,848    $  16,325   $  43,523
    Less:  Allowance for loan losses      $  (1,790)   $    (214)  $  (1,576)
    Net Loans                             $  58,058    $  16,111   $  41,947
    Goodwill                              $   3,906    $   3,188   $     718
    Core deposit intangible               $     371    $     371   $       -
    Deposits(3)                           $  47,933    $  21,671   $  26,262
    Debt(4)                               $  22,278    $   2,308   $  19,970

    Return on Average Assets (ROA)
     (period avg.)
    ROA (Reported)                             1.51 %                   1.67 %
    ROA (Managed)                              0.94 %                   0.95 %

    Managed Balance Sheet Statistics
     (period end)
    Loans                                 $ 105,527    $  16,325   $  89,202

    Revenue & Expense Statistics
    Revenue Margin (Reported)                 16.23 %                  18.44 %
    Revenue Margin (Managed)                  12.06 %                  12.81 %

    Asset Quality Statistics
    Delinquency Rate (30+ days)
     (Reported)                                3.14 %                   3.99 %
    Delinquency Rate (30+ days) (Managed)      3.24 %                   3.68 %
    Net Charge-Off Rate (Reported)             3.70 %                   4.29 %
    Net Charge-Off Rate (Managed)              4.53 %                   4.89 %


                                          2005
    (in millions, except per share data                            COF w/out
     and as noted)                           COF         HIB(1)       HIB
    Earnings (Reported Basis)
    Total Revenue                         $10,038.3    $   163.2   $ 9,875.1
    Provision for Loan Losses               1,491.1         11.1     1,480.0
    Total Non-interest Expense              5,718.3        108.1     5,610.2
    Net Income                            $ 1,809.1    $    30.6   $ 1,778.5
    Common Share Statistics
    Diluted EPS                           $    6.73                $    6.72
    Shares Used to Compute Diluted EPS        268.9                    264.7
    Reported Balance Sheet Statistics
     (period end)
    Liquidity Portfolio(2)                $  16,399    $   5,879   $  10,520
    Loans                                 $  59,848    $  16,325   $  43,523
    Less:  Allowance for loan losses      $  (1,790)   $    (214)  $  (1,576)
    Net Loans                             $  58,058    $  16,111   $  41,947
    Goodwill                              $   3,906    $   3,188   $     718
    Core deposit intangible               $     371    $     371   $       -
    Deposits(3)                           $  47,933    $  21,671   $  26,262
    Debt(4)                               $  22,278    $   2,308   $  19,970
    Return on Average Assets (ROA)
     (period avg.)
    ROA (Reported)                             2.95 %                   3.08 %
    ROA (Managed)                              1.72 %                   1.75 %
    Managed Balance Sheet Statistics
     (period end)
    Loans                                 $ 105,527      $16,325   $  89,202
    Revenue & Expense Statistics
    Revenue Margin (Reported)                 18.09 %                  18.78 %
    Revenue Margin (Managed)                  12.46 %                  12.67 %
    Asset Quality Statistics
    Delinquency Rate (30+ days)(Reported)      3.14 %                   3.99 %
    Delinquency Rate (30+ days) (Managed)      3.24 %                   3.68 %
    Net Charge-Off Rate (Reported)             3.55 %                   3.70 %
    Net Charge-Off Rate (Managed)              4.25 %                   4.34 %


    (1) As of December 31, 2005 and for the period November 16, 2005 through
    December 31,2005.

    (2) Includes federal funds sold and resale agreements, interest-bearing
    deposits at other banks, and securities available for sale.

    (3) Includes non-interest bearing and interest-bearing deposits.

    (4) Includes senior and subordinated notes and other borrowings.



                   CAPITAL ONE FINANCIAL CORPORATION (COF)
          SEGMENT FINANCIAL & STATISTICAL SUMMARY - MANAGED BASIS(1)

                                           2005         2005         2004
    (in thousands)                          Q4           Q3           Q4

    Segment Statistics
    US Card:
      Net interest income              $  1,183,794  $ 1,207,832  $ 1,158,773
      Non-interest income                   844,286      851,036      823,012
      Provision for loan losses             767,103      483,759      649,862
      Non-interest expenses                 892,521      833,925    1,016,384
      Income tax provision (benefit)        131,415      259,414      113,594
      Net income (loss)                $    237,041  $   481,770  $   201,945

      Loans receivable                 $ 49,463,522  $46,291,468  $48,609,571
      Net charge-off rate                     5.70%        4.69%        4.93%
      Delinquency Rate (30+ days)             3.44%        3.86%        3.97%
      Purchase Volume(2)               $ 21,209,357  $18,932,798  $17,799,996

    Auto Finance:
      Net interest income              $    314,024  $   300,102  $   207,379
      Non-interest income                    (1,358)       3,005       13,690
      Provision for loan losses             161,651      185,219       88,408
      Non-interest expenses                 138,412      129,719       93,482
      Income tax provision (benefit)          4,512       (4,141)      14,104
      Net income (loss)                $      8,091  $    (7,690) $    25,075

      Loans receivable                 $ 16,372,019  $15,730,713  $ 9,997,497
      Net charge-off rate                     3.32%        2.54%        3.87%
      Delinquency Rate (30+ days)             5.71%        4.65%        5.50%
      Auto Loan Originations(3)        $  2,563,372  $ 3,217,209  $ 1,488,029

    Global Financial Services:
      Net interest income              $    432,335  $   423,629  $   390,262
      Non-interest income                   250,349      273,067      240,781
      Provision for loan losses             263,664      217,032      220,253
      Non-interest expenses                 410,670      356,254      368,020
      Income tax provision (benefit)          1,299       41,521       13,561
      Net income (loss)                $      7,051  $    81,889  $    29,209

      Loans receivable                 $ 23,386,490  $22,770,803  $21,240,325
      Net charge-off rate                     4.33%        4.09%        3.30%
      Delinquency Rate (30+ days)             2.83%        2.93%        2.81%

    Other:
      Net interest income              $    145,043  $      (368) $   (54,587)
      Non-interest income                   150,153      (27,301)      21,496
      Provision for loan losses             (10,631)      14,324        3,277
      Non-interest expenses                 247,583       45,740       78,641
      Income tax provision (benefit)         30,109      (22,913)     (53,908)
      Net income (loss)                $     28,135  $   (64,820) $   (61,101)

      Loans receivable                 $ 16,305,460  $   (25,301) $    13,906

    Total:
      Net interest income              $  2,075,196  $ 1,931,195  $ 1,701,827
      Non-interest income                 1,243,430    1,099,807    1,098,979
      Provision for loan losses           1,181,787      900,334      961,800
      Non-interest expenses               1,689,186    1,365,638    1,556,527
      Income tax provision (benefit)        167,335      273,881       87,351
      Net income (loss)                $    280,318  $   491,149  $   195,128

      Loans receivable                 $105,527,491  $84,767,683  $79,861,299
      Net charge-off rate                     4.53%        4.14%        4.37%
      Delinquency Rate (30+ days)             3.24%        3.73%        3.82%


    (1) The information in this statistical summary reflects the adjustment to
    add back the effect of securitization transactions qualifying as sales
    under generally accepted accounting principles. See accompanying schedule
    - "Reconciliation to GAAP Financial Measures."

    (2) Includes all purchase transactions net of returns and excludes cash
    advance transactions.

    (3) Includes all organic auto loan originations and excludes auto loans
    added through acquisitions.



    CAPITAL ONE FINANCIAL CORPORATION
    Reconciliation to GAAP Financial Measures
    For the Three Months Ended December 31, 2005
    (dollars in thousands)(unaudited)

The Company's consolidated financial statements prepared in accordance with generally accepted accounting principles ("GAAP") are referred to as its "reported" financial statements. Loans included in securitization transactions which qualified as sales under GAAP have been removed from the Company's "reported" balance sheet. However, servicing fees, finance charges, and other fees, net of charge-offs, and interest paid to investors of securitizations are recognized as servicing and securitizations income on the "reported" income statement.


    The Company's "managed" consolidated financial statements reflect
adjustments made related to effects of securitization transactions qualifying
as sales under GAAP. The Company generates earnings from its "managed" loan
portfolio which includes both the on-balance sheet loans and off-balance sheet
loans. The Company's "managed" income statement takes the components of the
servicing and securitizations income generated from the securitized portfolio
and distributes the revenue and expense to appropriate income statement line
items from which it originated. For this reason the Company believes the
"managed" consolidated financial statements and related managed metrics to be
useful to stakeholders.

                                        Total                       Total
                                      Reported    Adjustments(1)   Managed(2)
    Income Statement Measures
    Net interest income              $ 1,036,999   $ 1,038,197   $  2,075,196
    Non-interest income              $ 1,665,514   $  (422,084)  $  1,243,430
    Total revenue                    $ 2,702,513   $   616,113   $  3,318,626
    Provision for loan losses        $   565,674   $   616,113   $  1,181,787
    Net charge-offs                  $   450,510   $   616,113   $  1,066,623
    Balance Sheet Measures
    Loans                            $59,847,681   $45,679,810   $105,527,491
    Total assets                     $88,701,411   $45,084,125   $133,785,536
    Average loans                    $48,700,689   $45,540,551   $ 94,241,240
    Average earning assets           $66,623,919   $43,472,273   $110,096,192
    Average total assets             $74,443,344   $44,962,509   $119,405,853
    Delinquencies                    $ 1,879,008   $ 1,544,812   $  3,423,820


    (1) Includes adjustments made related to the effects of securitization
    transactions qualifying as sales under GAAP and adjustments made to
    reclassify to "managed" loans outstanding the collectible portion of
    billed finance charge and fee income on the investors' interest in
    securitized loans excluded from loans outstanding on the "reported"
    balance sheet in accordance with Financial Accounting Standards Board
    Staff Position, "Accounting for Accrued Interest Receivable Related to
    Securitized and Sold Receivables under FASB Statement 140, Accounting for
    Transfers and Servicing of Financial Assets and Extinguishments of
    Liabilities," issued April 2003.

    (2) The Managed loan portfolio does not include auto loans which have been
    sold in whole loan sale transactions where the Company has retained
    servicing rights.



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

                                        December 31 September 30  December 31
                                           2005         2005         2004

    Assets:
    Cash and due from banks             $ 2,022,175  $   812,330  $   327,517
    Federal funds sold and resale
     agreements                           1,305,537    2,409,392      773,695
    Interest-bearing deposits at
     other banks                            743,555    1,380,880      309,999
      Cash and cash equivalents           4,071,267    4,602,602    1,411,211
    Securities available for sale        14,350,249    9,436,667    9,300,454
    Loans                                59,847,681   38,851,763   38,215,591
      Less: Allowance for loan losses    (1,790,000)  (1,447,000)  (1,505,000)
    Net loans                            58,057,681   37,404,763   36,710,591
    Accounts receivable from
     securitizations                      4,904,547    6,126,282    4,081,271
    Premises and equipment, net           1,191,406      768,198      817,704
    Interest receivable                     563,542      367,757      252,857
    Goodwill                              3,906,399      736,058      352,157
    Other                                 1,656,320      982,190      821,010
      Total assets                      $88,701,411  $60,424,517  $53,747,255


    Liabilities:
    Non-interest-bearing deposits       $ 4,841,171  $    91,684  $    50,155
    Interest-bearing deposits            43,092,096   26,772,538   25,636,802
    Senior and subordinated notes         6,743,979    6,651,891    6,874,790
    Other borrowings                     15,534,161   11,613,179    9,637,019
    Interest payable                        371,681      350,842      237,227
    Other                                 3,989,409    3,907,156    2,923,073
      Total liabilities                  74,572,497   49,387,290   45,359,066

    Stockholders' Equity:
    Common stock                              3,028        2,682        2,484
    Paid-in capital, net                  6,848,544    3,979,525    2,711,327
    Retained earnings and cumulative
     other comprehensive income           7,384,144    7,124,900    5,741,131
      Less:  Treasury stock, at cost       (106,802)     (69,880)     (66,753)
      Total stockholders' equity         14,128,914   11,037,227    8,388,189
      Total liabilities and
       stockholders' equity             $88,701,411  $60,424,517  $53,747,255



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

                                       Three Months Ended
                                       December 31  September 30   December 31
                                           2005         2005(1)       2004(1)

    Interest Income:
    Loans, including past-due fees     $ 1,408,545   $ 1,228,160   $ 1,097,041
    Securities available for sale          119,189        87,978        88,085
    Other                                  106,364        88,477        64,204
       Total interest income             1,634,098     1,404,615     1,249,330

    Interest Expense:
    Deposits                               344,063       285,611       267,706
    Senior and subordinated notes          103,836        98,309       116,419
    Other borrowings                       149,200       110,476        80,641
       Total interest expense              597,099       494,396       464,766
    Net interest income                  1,036,999       910,219       784,564
    Provision for loan losses              565,674       374,167       467,133
    Net interest income after
     provision for loan losses             471,325       536,052       317,431

    Non-Interest Income:
    Servicing and securitizations        1,021,415       993,788       910,860
    Service charges and other
     customer-related fees                 376,223       355,871       374,048
    Interchange                            133,234       125,454       135,843
    Other                                  134,642       119,503       100,824
       Total non-interest income         1,665,514     1,594,616     1,521,575

    Non-Interest Expense:
    Salaries and associate benefits        459,788       414,348       382,646
    Marketing                              447,437       343,708       511,142
    Communications and data processing     154,936       144,321       137,867
    Supplies and equipment                  98,761        86,866        92,827
    Occupancy                               54,554        39,426        55,994
    Other                                  473,710       336,969       376,051
       Total non-interest expense        1,689,186     1,365,638     1,556,527
    Income before income taxes             447,653       765,030       282,479
    Income taxes                           167,335       273,881        87,351
    Net income                         $   280,318   $   491,149   $   195,128


    Basic earnings per share           $      1.01   $      1.88   $      0.82

    Diluted earnings per share         $      0.97   $      1.81   $      0.77

    Dividends paid per share           $      0.03   $      0.03   $      0.03


                                              Year Ended
                                              December, 31       December, 31
                                                  2005               2004(1)

    Interest Income:
    Loans, including past-due fees             $ 5,010,839        $ 4,234,420
    Securities available for sale                  388,576            312,374
    Other                                          327,466            247,626
       Total interest income                     5,726,881          4,794,420

    Interest Expense:
    Deposits                                     1,173,137          1,009,545
    Senior and subordinated notes                  421,218            486,812
    Other borrowings                               452,284            295,085
       Total interest expense                    2,046,639          1,791,442
    Net interest income                          3,680,242          3,002,978
    Provision for loan losses                    1,491,072          1,220,852
    Net interest income after provision
     for loan losses                             2,189,170          1,782,126

    Non-Interest Income:
    Servicing and securitizations                3,945,183          3,635,465
    Service charges and other customer-
     related fees                                1,493,690          1,482,658
    Interchange                                    514,196            475,810
    Other                                          405,036            306,224
       Total non-interest income                 6,358,105          5,900,157

    Non-Interest Expense:
    Salaries and associate benefits              1,749,738          1,642,721
    Marketing                                    1,379,938          1,337,780
    Communications and data processing             580,992            475,355
    Supplies and equipment                         355,734            349,920
    Occupancy                                      152,090            206,614
    Other                                        1,499,781          1,309,829
       Total non-interest expense                5,718,273          5,322,219
    Income before income taxes                   2,829,002          2,360,064
    Income taxes                                 1,019,855            816,582
    Net income                                 $ 1,809,147        $ 1,543,482


    Basic earnings per share                   $      6.98        $      6.55

    Diluted earnings per share                 $      6.73        $      6.21

    Dividends paid per share                   $      0.11        $      0.11


    (1) Certain prior period amounts have been reclassified to conform to the
    current period presentation.



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

    Reported                             Quarter Ended 12/31/05
                                            Average       Income/     Yield/
                                            Balance       Expense      Rate
    Earning assets:
     Loans                                 $48,700,689  $ 1,408,545   11.57%
     Securities available for sale          11,683,013      119,189    4.08%
     Other                                   6,240,217      106,364    6.82%
    Total earning assets                   $66,623,919  $ 1,634,098    9.81%

    Interest-bearing liabilities:
     Interest-bearing deposits             $34,737,934  $   344,063    3.96%
     Senior and subordinated notes           6,707,285      103,836    6.19%
     Other borrowings                       13,703,303      149,200    4.36%
    Total interest-bearing liabilities     $55,148,522  $   597,099    4.33%

    Net interest spread                                                5.48%

    Interest income to average
     earning assets                                                    9.81%
    Interest expense to average
     earning assets                                                    3.58%
    Net interest margin                                                6.23%


    Reported                             Quarter Ended 9/30/05
                                            Average       Income/     Yield/
                                            Balance       Expense      Rate
    Earning assets:
     Loans                                 $38,555,575  $ 1,228,160   12.74%
     Securities available for sale           9,535,858       87,978    3.69%
     Other                                   5,361,490       88,477    6.60%
    Total earning assets                   $53,452,923  $ 1,404,615   10.51%

    Interest-bearing liabilities:
     Interest-bearing deposits             $26,618,472  $   285,611    4.29%
     Senior and subordinated notes           6,683,533       98,309    5.88%
     Other borrowings                       10,698,216      110,476    4.13%
    Total interest-bearing liabilities     $44,000,221  $   494,396    4.49%

    Net interest spread                                                6.02%

    Interest income to average
     earning assets                                                   10.51%
    Interest expense to average
     earning assets                                                    3.70%
    Net interest margin                                                6.81%


    Reported                             Quarter Ended 12/31/04
                                            Average       Income/     Yield/
                                            Balance       Expense      Rate
    Earning assets:
     Loans                                 $36,096,481  $ 1,097,041   12.16%
     Securities available for sale           9,741,355       88,085    3.62%
     Other                                   3,662,512       64,204    7.01%
    Total earning assets                   $49,500,348  $ 1,249,330   10.10%

    Interest-bearing liabilities:
     Interest-bearing deposits             $25,580,044  $   267,706    4.19%
     Senior and subordinated notes           6,946,109      116,419    6.70%
     Other borrowings                        9,076,531       80,641    3.55%
    Total interest-bearing liabilities     $41,602,684  $   464,766    4.47%

    Net interest spread                                                5.63%

    Interest income to average
     earning assets                                                   10.10%
    Interest expense to average
     earning assets                                                    3.76%
    Net interest margin                                                6.34%



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

    Managed (1)                          Quarter Ended 12/31/05
                                             Average       Income/     Yield/
                                             Balance       Expense      Rate
    Earning assets:
     Loans                                 $ 94,241,240  $ 3,001,361   12.74%
     Securities available for sale           11,683,013      119,189    4.08%
     Other                                    4,171,939       55,410    5.31%
    Total earning assets                   $110,096,192  $ 3,175,960   11.54%

    Interest-bearing liabilities:
     Interest-bearing deposits             $ 34,737,934  $   344,063    3.96%
     Senior and subordinated notes            6,707,285      103,836    6.19%
     Other borrowings                        13,703,303      149,200    4.36%
     Securitization liability                45,085,090      503,665    4.47%
    Total interest-bearing liabilities     $100,233,612  $ 1,100,764    4.39%

    Net interest spread                                                 7.15%

    Interest income to average
     earning assets                                                    11.54%
    Interest expense to average
     earning assets                                                     4.00%
    Net interest margin                                                 7.54%


    Managed (1)                          Quarter Ended 9/30/05
                                            Average       Income/     Yield/
                                            Balance       Expense      Rate
    Earning assets:
     Loans                                $ 83,827,465  $ 2,784,301   13.29%
     Securities available for sale           9,535,858       87,978    3.69%
     Other                                   3,333,021       35,496    4.26%
    Total earning assets                  $ 96,696,344  $ 2,907,775   12.03%

    Interest-bearing liabilities:
     Interest-bearing deposits            $ 26,618,472  $   285,611    4.29%
     Senior and subordinated notes           6,683,533       98,309    5.88%
     Other borrowings                       10,698,216      110,476    4.13%
     Securitization liability               44,814,893      482,184    4.30%
    Total interest-bearing liabilities    $ 88,815,114  $   976,580    4.40%

    Net interest spread                                                7.63%

    Interest income to average
     earning assets                                                   12.03%
    Interest expense to average
     earning assets                                                    4.04%
    Net interest margin                                                7.99%


    Managed (1)                          Quarter Ended 12/31/04
                                            Average       Income/     Yield/
                                            Balance       Expense      Rate
    Earning assets:
     Loans                                $ 76,929,973  $ 2,476,365   12.88%
     Securities available for sale           9,741,355       88,085    3.62%
     Other                                   1,789,742       16,940    3.79%
    Total earning assets                  $ 88,461,070  $ 2,581,390   11.67%

    Interest-bearing liabilities:
     Interest-bearing deposits            $ 25,580,044  $   267,706    4.19%
     Senior and subordinated notes           6,946,109      116,419    6.70%
     Other borrowings                        9,076,531       80,641    3.55%
     Securitization liability               40,291,395      414,797    4.12%
    Total interest-bearing liabilities    $ 81,894,079  $   879,563    4.30%

    Net interest spread                                                7.37%

    Interest income to average
     earning assets                                                   11.67%
    Interest expense to average
     earning assets                                                    3.97%
    Net interest margin                                                7.70%


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

SOURCE Capital One Financial Corporation

CONTACT: Investor Relations: Mike Rowen, +1-703-720-2455, or Media Relations: Tatiana Stead, +1-703-720-2352 or Julie Rakes, +1-804-284-5800, all of Capital One Financial Corporation