MCLEAN, Va., Oct. 25, 2016 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2016 of $1.0 billion, or $1.90 per diluted common share, compared to the second quarter of 2016 with net income of $942 million, or $1.69 per diluted common share, and the third quarter of 2015 with net income of $1.1 billion, or $1.98 per diluted common share. We recorded a build in the U.K. Payment Protection Insurance customer refund reserve of $63 million in third quarter of 2016. Excluding this adjusting item, net income for the third quarter of 2016 was $1.1 billion, or $2.03 per share.(1) 

"Capital One posted strong performance in the third quarter," said Richard D. Fairbank, Founder, Chair and Chief Executive Officer. "Our strong growth over the last two years puts us in a strong position to deliver attractive shareholder returns, driven by growth and sustained returns at the higher end of banks, as well as significant capital distribution, subject to regulatory approval."

All comparisons below are for the third quarter of 2016 compared with the second quarter of 2016 unless otherwise noted.

Third Quarter 2016 Income Statement Summary:

  • Total net revenue increased 3 percent to $6.5 billion.
  • Total non-interest expense increased 2 percent to $3.4 billion.
    • 5 percent decrease in marketing.
    • 3 percent increase in operating expenses.
  • Pre-provision earnings increased 5 percent to $3.1 billion.
  • Provision for credit losses flat at $1.6 billion.
    • Net charge-offs of $1.2 billion.
    • $377 million allowance build.
  • Net interest margin of 6.79 percent, up 6 basis points.
  • Efficiency ratio of 52.02 percent.
    • Efficiency ratio net of adjustments of 51.40 percent.(1)

 

(1)

These amounts are non-GAAP measures that we believe help investors and users of our financial information understand the effect of the adjustments on our reported results. See Table 5 in Exhibit 99.2 for a reconciliation of our reported results to these non-GAAP measures.

 

Third Quarter 2016 Balance Sheet Summary:

  • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 10.6 percent at September 30, 2016.
  • Period-end loans held for investment in the quarter increased $3.4 billion, or 1 percent, to $238.0 billion.
    • Domestic Card period-end loans increased $2.4 billion, or 3 percent, to $91.0 billion.
    • Consumer Banking period-end loans increased $870 million, or 1 percent, to $72.3 billion.
      • Auto period-end loans increased $1.8 billion, or 4 percent, to $46.3 billion.
      • Home loans period-end loans decreased $910 million, or 4 percent, to $22.4 billion, driven by planned run-off of acquired portfolios.
    • Commercial Banking period-end loans increased $255 million, or less than 1 percent, to $66.5 billion.
  • Average loans held for investment in the quarter increased $5.5 billion, or 2 percent, to $235.8 billion.
    • Domestic Card average loans increased $3.8 billion, or 4 percent, to $89.8 billion.
    • Consumer Banking average loans increased $739 million, or 1 percent, to $71.7 billion:
      • Auto average loans increased $1.8 billion, or 4 percent, to $45.4 billion.
      • Home loans average loans decreased $983 million, or 4 percent, to $22.9 billion, driven by planned run-off of acquired portfolios.
    • Commercial Banking average loans increased $1.1 billion, or 2 percent, to $66.0 billion.
  • Period-end total deposits increased $4.9 billion, or 2 percent, to $226.0 billion, while average deposits increased $1.1 billion, or less than 1 percent, to $222.3 billion.
  • Interest-bearing deposits rate paid increased 2 basis points to 0.62 percent.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on October 25, 2016 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page (www.capitalone.com). Choose "About Us," then choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through November 8, 2016 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One 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, 2015.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $226.0 billion in deposits and $345.1 billion in total assets as of September 30, 2016. Headquartered in McLean, Virginia, Capital One offers 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 branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey 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

Third Quarter 2016(1)

Table of Contents

Capital One Financial Corporation Consolidated Results

Page

Table 1:

Financial Summary—Consolidated

1

Table 2:

Selected Metrics—Consolidated

3

Table 3:

Consolidated Statements of Income

4

Table 4:

Consolidated Balance Sheets

6

Table 5:

Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

8

Table 6:

Average Balances, Net Interest Income and Net Interest Margin

10

Table 7:

Loan Information and Performance Statistics

11

Table 8:

Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity

13

Business Segment Results

Table 9:

Financial Summary—Business Segment Results

14

Table 10:

Financial & Statistical Summary—Credit Card Business

15

Table 11:

Financial & Statistical Summary—Consumer Banking Business

18

Table 12:

Financial & Statistical Summary—Commercial Banking Business

19

Table 13:

Financial & Statistical Summary—Other and Total

20

Table 14:

Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)

21

Other

Table 15:

Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures

22



(1)

The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended September 30, 2016 once it is filed with the Securities and Exchange Commission.

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated













2016 Q3 vs.

Nine Months Ended September 30,

(Dollars in millions, except per share data and as noted) (unaudited)

2016

2016

2016

2015

2015

2016

2015




2016 vs.

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2016

2015

2015

Income Statement



















Net interest income

$

5,277

$

5,093

$

5,056

$

4,961

$

4,760

4

%

11

%

$

15,426

$

13,873

11

%

Non-interest income

1,184

1,161

1,164

1,233

1,140

2

4

3,509

3,346

5

Total net revenue(1)

6,461

6,254

6,220

6,194

5,900

3

10

18,935

17,219

10

Provision for credit losses

1,588

1,592

1,527

1,380

1,092

—

45

4,707

3,156

49

Non-interest expense:



















Marketing

393

415

428

564

418

(5)

(6)

1,236

1,180

5

Amortization of intangibles

89

95

101

103

106

(6)

(16)

285

327

(13)

Operating expenses

2,879

2,785

2,694

2,813

2,636

3

9

8,358

8,009

4

Total non-interest expense

3,361

3,295

3,223

3,480

3,160

2

6

9,879

9,516

4

Income from continuing operations before income taxes

1,512

1,367

1,470

1,334

1,648

11

(8)

4,349

4,547

(4)

Income tax provision

496

424

452

426

530

17

(6)

1,372

1,443

(5)

Income from continuing operations, net of tax

1,016

943

1,018

908

1,118

8

(9)

2,977

3,104

(4)

Income (loss) from discontinued operations, net of tax(2)

(11)

(1)

(5)

12

(4)

**

175

(17)

26

**

Net income

1,005

942

1,013

920

1,114

7

(10)

2,960

3,130

(5)

Dividends and undistributed earnings allocated to participating securities(3)

(6)

(6)

(6)

(4)

(6)

—

—

(18)

(16)

13

Preferred stock dividends

(37)

(65)

(37)

(68)

(29)

(43)

28

(139)

(90)

54

Net income available to common stockholders

$

962

$

871

$

970

$

848

$

1,079

10

(11)

$

2,803

$

3,024

(7)

Common Share Statistics



















Basic earnings per common share:(3)



















Net income from continuing operations

$

1.94

$

1.70

$

1.86

$

1.58

$

2.01

14

%

(3)

%

$

5.50

$

5.49

—

Income (loss) from discontinued operations

(0.02)

—

(0.01)

0.02

(0.01)

**

**

(0.03)

0.05

**

Net income per basic common share

$

1.92

$

1.70

$

1.85

$

1.60

$

2.00

13

(4)

$

5.47

$

5.54

(1)

%

Diluted earnings per common share:(3)



















Net income from continuing operations

$

1.92

$

1.69

$

1.85

$

1.56

$

1.99

14

(4)

$

5.45

$

5.43

—

Income (loss) from discontinued operations

(0.02)

—

(0.01)

0.02

(0.01)

**

**

(0.03)

0.05

**

Net income per diluted common share(4)

$

1.90

$

1.69

$

1.84

$

1.58

$

1.98

12

(4)

$

5.42

$

5.48

(1)

Weighted-average common shares outstanding (in millions):



















Basic

501.1

511.7

523.5

530.8

540.6

(2)

(7)

512.0

545.5

(6)

Diluted

505.9

516.5

528.0

536.3

546.3

(2)

(7)

516.8

551.9

(6)

Common shares outstanding (period-end, in millions)

489.2

505.9

514.5

527.3

534.9

(3)

(9)

489.2

534.9

(9)

Dividends paid per common share

$

0.40

$

0.40

$

0.40

$

0.40

$

0.40

—

—

$

1.20

$

1.10

9

Tangible book value per common share (period-end)(5)

59.00

57.84

55.94

53.65

54.66

2

8

59.00

54.66

8











































2016 Q3 vs

Nine Months Ended September 30,

(Dollars in millions) (unaudited)

2016

2016

2016

2015

2015

2016

2015




2016 vs

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2016

2015

2015

Balance Sheet (Period-End)



















Loans held for investment(6)

$

238,019

$

234,603

$

227,613

$

229,851

$

213,329

1

%

12

%

$

238,019

$

213,329

12

%

Interest-earning assets

313,431

307,163

298,348

302,007

283,073

2

11

313,431

283,073

11

Total assets

345,061

339,117

330,346

334,048

313,700

2

10

345,061

313,700

10

Interest-bearing deposits

200,416

195,635

196,597

191,874

187,848

2

7

200,416

187,848

7

Total deposits

225,981

221,059

221,779

217,721

212,903

2

6

225,981

212,903

6

Borrowings

59,820

59,181

50,497

59,115

42,778

1

40

59,820

42,778

40

Common equity

44,336

44,813

44,411

43,990

44,391

(1)

—

44,336

44,391

—

Total stockholders' equity

48,213

48,108

47,707

47,284

47,685

—

1

48,213

47,685

1

Balance Sheet (Average Balances)



















Loans held for investment(6)

$

235,843

$

230,379

$

226,736

$

220,052

$

211,227

2

%

12

%

$

231,004

$

207,608

11

%

Interest-earning assets

310,987

302,764

299,456

292,054

283,082

3

10

304,423

279,388

9

Total assets

343,153

334,479

331,919

323,354

313,822

3

9

336,539

310,146

9

Interest-bearing deposits

196,913

195,641

194,125

189,885

185,800

1

6

195,565

184,258

6

Total deposits

222,251

221,146

219,180

215,899

210,974

—

5

220,864

209,334

6

Borrowings

60,708

54,359

53,761

48,850

45,070

12

35

56,292

44,264

27

Common equity

45,314

45,640

45,782

45,418

45,407

(1)

—

45,578

44,956

1

Total stockholders' equity

49,033

48,934

49,078

48,712

48,456

—

1

49,015

47,376

3

 

 

               



CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated













2016 Q3 vs

Nine Months Ended September 30,

(Dollars in millions except as noted) (unaudited)

2016

2016

2016

2015

2015

2016

2015




2016 vs

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2016

2015

2015

Performance Metrics



















Net interest income growth (period over period)

4

%

1

%

2

%

4

%

5

%

**

**

11

%

5

%

**

Non-interest income growth (period over period)

2

—

(6)

8

—

**

**

5

1

**

Total net revenue growth (period over period)

3

1

—

5

4

**

**

10

5

**

Total net revenue margin(7)

8.31

8.26

8.31

8.48

8.34

5

bps

(3)

bps

8.29

8.22

7

bps

Net interest margin(8)

6.79

6.73

6.75

6.79

6.73

6

6

6.76

6.62

14

Return on average assets

1.18

1.13

1.23

1.12

1.43

5

(25)

1.18

1.33

(15)

Return on average tangible assets(9)

1.24

1.18

1.29

1.18

1.50

6

(26)

1.24

1.40

(16)

Return on average common equity(10)

8.59

7.64

8.52

7.36

9.54

95

(95)

8.25

8.89

(64)

Return on average tangible common equity(11)

13.06

11.61

12.94

11.11

14.33

145

(127)

12.54

13.46

(92)

Non-interest expense as a percentage of average loans held for investment

5.70

5.72

5.69

6.33

5.98

(2)

(28)

5.70

6.11

(41)

Efficiency ratio(12)

52.02

52.69

51.82

56.18

53.56

(67)

(154)

52.17

55.26

(309)

Effective income tax rate for continuing operations

32.8

31.0

30.7

31.9

32.2

180

60

31.5

31.7

(20)

Employees (in thousands), period-end

46.5

46.1

45.8

45.4

46.9

1

%

(1)

%

46.5

46.9

(1)

%

Credit Quality Metrics



















Allowance for loan and lease losses

$

6,258

$

5,881

$

5,416

$

5,130

$

4,847

6

%

29

%

$

6,258

$

4,847

29

%

Allowance as a percentage of loans held for investment

2.63

%

2.51

%

2.38

%

2.23

%

2.27

%

12

bps

36

bps

2.63

%

2.27

%

36

bps

Net charge-offs

$

1,240

$

1,155

$

1,178

$

1,078

$

890

7

%

39

%

$

3,573

$

2,617

37

%

Net charge-off rate(13)

2.10

%

2.01

%

2.08

%

1.96

%

1.69

%

9

bps

41

bps

2.06

%

1.68

%

38

bps

30+ day performing delinquency rate

2.71

2.47

2.33

2.69

2.63

24

8

2.71

2.63

8

30+ day delinquency rate

3.04

2.79

2.64

3.00

2.95

25

9

3.04

2.95

9

Capital Ratios(14)



















Common equity Tier 1 capital

10.6

%

10.9

%

11.1

%

11.1

%

12.1

%

(30)

bps

(150)

bps

10.6

%

12.1

%

(150)

bps

Tier 1 capital

12.0

12.2

12.4

12.4

13.4

(20)

(140)

12.0

13.4

(140)

Total capital

14.7

14.4

14.6

14.6

15.1

30

(40)

14.7

15.1

(40)

Tier 1 leverage

10.1

10.2

10.2

10.6

11.1

(10)

(100)

10.1

11.1

(100)

Tangible common equity ("TCE")(15)

8.8

9.0

9.1

8.9

9.8

(20)

(100)

8.8

9.8

(100)

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income



Three Months Ended

2016 Q3 vs

Nine Months Ended September 30,


2016

2016

2015

2016

2015




2016 vs

(Dollars in millions, except per share data and as noted) (unaudited)

Q3

Q2

Q3

Q2

Q3

2016

2015

2015

Interest income:















Loans, including loans held for sale

$

5,383

$

5,148

$

4,753

5

%

13

%

$

15,616

$

13,824

13

%

Investment securities

386

405

386

(5)

—

1,206

1,174

3

Other

25

18

25

39

—

60

77

(22)

Total interest income

5,794

5,571

5,164

4

12

16,882

15,075

12

Interest expense:















Deposits

306

292

271

5

13

881

814

8

Securitized debt obligations

56

47

39

19

44

151

108

40

Senior and subordinated notes

121

111

82

9

48

338

241

40

Other borrowings

34

28

12

21

183

86

39

121

Total interest expense

517

478

404

8

28

1,456

1,202

21

Net interest income

5,277

5,093

4,760

4

11

15,426

13,873

11

Provision for credit losses

1,588

1,592

1,092

—

45

4,707

3,156

49

Net interest income after provision for credit losses

3,689

3,501

3,668

5

1

10,719

10,717

—

Non-interest income:















Service charges and other customer-related fees

387

371

423

4

(9)

1,162

1,289

(10)

Interchange fees, net

603

616

555

(2)

9

1,815

1,618

12

Net other-than-temporary impairment recognized in earnings

—

(2)

(5)

**

**

(10)

(27)

(63)

Other

194

176

167

10

16

542

466

16

Total non-interest income

1,184

1,161

1,140

2

4

3,509

3,346

5

Non-interest expense:















Salaries and associate benefits

1,317

1,279

1,189

3

11

3,866

3,760

3

Occupancy and equipment

499

465

444

7

12

1,422

1,318

8

Marketing

393

415

418

(5)

(6)

1,236

1,180

5

Professional services

296

304

313

(3)

(5)

878

943

(7)

Communications and data processing

252

262

226

(4)

12

757

636

19

Amortization of intangibles

89

95

106

(6)

(16)

285

327

(13)

Other

515

475

464

8

11

1,435

1,352

6

Total non-interest expense

3,361

3,295

3,160

2

6

9,879

9,516

4

Income from continuing operations before income taxes

1,512

1,367

1,648

11

(8)

4,349

4,547

(4)

Income tax provision

496

424

530

17

(6)

1,372

1,443

(5)

Income from continuing operations, net of tax

1,016

943

1,118

8

(9)

2,977

3,104

(4)

Income (loss) from discontinued operations, net of tax(2)

(11)

(1)

(4)

**

175

(17)

26

**

Net income

1,005

942

1,114

7

(10)

2,960

3,130

(5)

Dividends and undistributed earnings allocated to participating securities(3)

(6)

(6)

(6)

—

—

(18)

(16)

13

Preferred stock dividends

(37)

(65)

(29)

(43)

28

(139)

(90)

54

Net income available to common stockholders

$

962

$

871

$

1,079

10

(11)

$

2,803

$

3,024

(7)



















Three Months Ended

2016 Q3 vs

Nine Months Ended September 30,


2016

2016

2015

2016

2015




2016 vs

(Dollars in millions, except per share data and as noted) (unaudited)

Q3

Q2

Q3

Q2

Q3

2016

2015

2015

Basic earnings per common share:(3)















Net income from continuing operations

$

1.94

$

1.70

$

2.01

14

%

(3)

%

$

5.50

$

5.49

—

Income (loss) from discontinued operations

(0.02)

—

(0.01)

**

**

(0.03)

0.05

**

Net income per basic common share

$

1.92

$

1.70

$

2.00

13

(4)

$

5.47

$

5.54

(1)

%

Diluted earnings per common share:(3)















Net income from continuing operations

$

1.92

$

1.69

$

1.99

14

(4)

$

5.45

$

5.43

—

Income (loss) from discontinued operations

(0.02)

—

(0.01)

**

**

(0.03)

0.05

**

Net income per diluted common share(4)

$

1.90

$

1.69

$

1.98

12

(4)

$

5.42

$

5.48

(1)

Weighted-average common shares outstanding (in millions):















Basic common shares

501.1

511.7

540.6

(2)

(7)

512.0

545.5

(6)

Diluted common shares

505.9

516.5

546.3

(2)

(7)

516.8

551.9

(6)

Dividends paid per common share

$

0.40

$

0.40

$

0.40

—

—

$

1.20

$

1.10

9

 

 



CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets













2016 Q3 vs


2016

2016

2016

2015

2015

2015

2015

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Q4

Q3

Assets:













Cash and cash equivalents:













Cash and due from banks

$

3,350

$

3,253

$

3,241

$

3,407

$

2,701

(2)

%

24

%

Interest-bearing deposits with banks

5,744

3,896

1,994

4,616

4,136

24

39

Total cash and cash equivalents

9,094

7,149

5,235

8,023

6,837

13

33

Restricted cash for securitization investors

287

265

960

1,017

586

(72)

(51)

Securities available for sale, at fair value

41,511

39,960

40,092

39,061

39,431

6

5

Securities held to maturity, at carrying value

25,019

25,120

25,080

24,619

23,711

2

6

Loans held for investment:(6)













Unsecuritized loans held for investment

206,763

202,778

195,705

196,068

179,748

5

15

Loans held in consolidated trusts

31,256

31,825

31,908

33,783

33,581

(7)

(7)

Total loans held for investment

238,019

234,603

227,613

229,851

213,329

4

12

Allowance for loan and lease losses

(6,258)

(5,881)

(5,416)

(5,130)

(4,847)

22

29

Net loans held for investment

231,761

228,722

222,197

224,721

208,482

3

11

Loans held for sale, at lower of cost or fair value

994

1,220

1,251

904

566

10

76

Premises and equipment, net

3,561

3,556

3,542

3,584

3,629

(1)

(2)

Interest receivable

1,251

1,236

1,221

1,189

1,101

5

14

Goodwill

14,493

14,495

14,492

14,480

13,983

—

4

Other assets

17,090

17,394

16,276

16,450

15,374

4

11

Total assets

$

345,061

$

339,117

$

330,346

$

334,048

$

313,700

3

10



























2016 Q3 vs


2016

2016

2016

2015

2015

2015

2015

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Q4

Q3

Liabilities:













Interest payable

$

237

$

301

$

217

$

299

$

198

(21)

%

20

%

Deposits:













Non-interest-bearing deposits

25,565

25,424

25,182

25,847

25,055

(1)

2

Interest-bearing deposits

200,416

195,635

196,597

191,874

187,848

4

7

Total deposits

225,981

221,059

221,779

217,721

212,903

4

6

Securitized debt obligations

18,411

16,130

14,913

16,166

15,656

14

18

Other debt:













Federal funds purchased and securities loaned or sold under agreements to repurchase

1,079

999

917

981

1,021

10

6

Senior and subordinated notes

24,001

21,872

21,736

21,837

21,773

10

10

Other borrowings

16,329

20,180

12,931

20,131

4,328

(19)

277

Total other debt

41,409

43,051

35,584

42,949

27,122

(4)

53

Other liabilities

10,810

10,468

10,146

9,629

10,136

12

7

Total liabilities

296,848

291,009

282,639

286,764

266,015

4

12















Stockholders' equity:













Preferred stock

0

0

0

0

0

—

—

Common stock

7

7

7

6

6

17

17

Additional paid-in capital, net

30,439

29,786

29,709

29,655

29,594

3

3

Retained earnings

29,245

28,479

27,808

27,045

26,407

8

11

Accumulated other comprehensive income (loss)

121

241

(41)

(616)

(142)

**

**

Treasury stock, at cost

(11,599)

(10,405)

(9,776)

(8,806)

(8,180)

32

42

Total stockholders' equity

48,213

48,108

47,707

47,284

47,685

2

1

Total liabilities and stockholders' equity

$

345,061

$

339,117

$

330,346

$

334,048

$

313,700

3

10

            

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

(1)

Total net revenue was reduced by $289 million in Q3 2016, $244 million in Q2 2016, $228 million in Q1 2016, $222 million in Q4 2015 and $195 million in Q3 2015 for the estimated uncollectible amount of billed finance charges and fees and related losses.

(2)

Historically, the majority of the provision (benefit) for representation and warranty losses has been included, net of tax, in discontinued operations. The provision (benefit) for mortgage representation and warranty losses included the following activity:





2016

2016

2016

2015

2015

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Provision (benefit) for mortgage representation and warranty losses before income taxes:










Recorded in continuing operations

$

—

$

(1)

$

(1)

$

(1)

$

(7)

Recorded in discontinued operations

18

2

3

(21)

3

Total provision (benefit) for mortgage representation and warranty losses before income taxes

$

18

$

1

$

2

$

(22)

$

(4)




The mortgage representation and warranty reserve was $632 million as of September 30, 2016, $610 million as of December 31, 2015 and $632 million as of September 30, 2015.

(3)

Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total.

(4)

In Q3 2016, we recorded a build in the U.K. Payment Protection Insurance customer refund reserve ("U.K. PPI Reserve") of $63 million. In Q2 2016, we recorded charges totaling $30 million associated with a build of $54 million in the U.K. PPI Reserve, partially offset by a gain of $24 million related to the exchange of our ownership interest in Visa Europe with Visa Inc. as a result of Visa Inc.'s acquisition of Visa Europe. In Q4 2015, we recorded charges totaling $72 million associated with (i) closing the GE Healthcare Financial Services ("HFS") acquisition and establishing an initial allowance and reserve related to the loans acquired; (ii) certain planned site closures; and (iii) revisions to the restructuring charges recorded in Q2 2015 to reflect updated information. In Q3 2015, we recorded a build in the U.K. PPI Reserve of $69 million. We report the following non-GAAP financial measures that we believe are helpful for investors and users of our financial information to understand the effect of these items on our reported results. The table below presents a reconciliation of our reported results to these non-GAAP financial measures. The period not presented had no adjustments.





2016 Q3

2016 Q2

2015 Q4

2015 Q3

(Dollars in millions, except per share data) (unaudited)

Pre-Tax
Income

Net
Income

Diluted
EPS

Pre-Tax
Income

Net
Income

Diluted
EPS

Pre-Tax
Income

Net
Income

Diluted
EPS

Pre-Tax
Income

Net
Income

Diluted
EPS

Reported results

$

1,512

$

1,005

$

1.90

$

1,367

$

942

$

1.69

$

1,334

$

920

$

1.58

$

1,648

$

1,114

$

1.98

Adjustments

63

63

0.13

30

37

0.07

72

46

0.09

69

69

0.12

Results excluding adjustments

$

1,575

$

1,068

$

2.03

$

1,397

$

979

$

1.76

$

1,406

$

966

$

1.67

$

1,717

$

1,183

$

2.10



(5)

Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures.

(6)

Included in loans held for investment are purchased credit-impaired loans ("PCI loans") recorded at fair value at acquisition and subsequently accounted for based on estimated cash flows expected to be collected over the life of the loans (under the accounting standard formerly known as "SOP 03-3," or Accounting Standards Codification 310-30). These include certain of our consumer and commercial loans that were acquired through business combinations. The table below presents amounts related to PCI loans:





2016

2016

2016

2015

2015

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

PCI loans:










Period-end unpaid principal balance

$

17,011

$

18,256

$

19,492

$

20,434

$

20,585

Period-end loans held for investment

16,149

17,358

18,568

19,518

19,743

Average loans held for investment

16,529

17,783

18,894

19,319

20,116



(7)

Calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

(8)

Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

 (9)

Return on average tangible assets is a non-GAAP measure calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures.

 (10)

Calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly titled measures reported by other companies.

(11)

Return on average tangible common equity ("ROTCE") is a non-GAAP measure calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Our calculation of ROTCE may not be comparable to similarly titled measures reported by other companies. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures.

(12)

Calculated based on total non-interest expense for the period divided by total net revenue for the period. The efficiency ratio, excluding the adjustments discussed above in Footnote 4, was 51.40% for Q3 2016, 52.32% for Q2 2016, 55.82% for Q4 2015 and 52.78% for Q3 2015 . The adjusted efficiency ratios are non-GAAP measures that we believe would provide useful information to investors and users of our financial information.

(13)

Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

 (14)

Ratios as of the end of Q3 2016 are preliminary and therefore subject to change. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.

(15)

TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures.

** 

Not meaningful.

              

               


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 6: Average Balances, Net Interest Income and Net Interest Margin



2016 Q3

2016 Q2

2015 Q3


Average
Balance

Interest
Income/
Expense(1)

Yield/
Rate(1)

Average
Balance

Interest
Income/
Expense(1)

Yield/
Rate(1)

Average
Balance

Interest
Income/
Expense(1)

Yield/
Rate(1)

(Dollars in millions) (unaudited)








Interest-earning assets:

















Loans, including loans held for sale

$

237,067

$

5,383

9.08

%

$

231,496

$

5,148

8.90

%

$

212,076

$

4,753

8.96

%

Investment securities

66,291

386

2.33

65,754

405

2.46

63,541

386

2.43

Cash equivalents and other

7,629

25

1.31

5,514

18

1.31

7,465

25

1.34

Total interest-earning assets

$

310,987

$

5,794

7.45

$

302,764

$

5,571

7.36

$

283,082

$

5,164

7.30

Interest-bearing liabilities:

















Interest-bearing deposits

$

196,913

$

306

0.62

$

195,641

$

292

0.60

$

185,800

$

271

0.58

Securitized debt obligations

17,389

56

1.29

15,226

47

1.23

14,881

39

1.05

Senior and subordinated notes

22,342

121

2.17

21,717

111

2.04

20,806

82

1.58

Other borrowings and liabilities

21,840

34

0.62

18,255

28

0.61

10,114

12

0.47

Total interest-bearing liabilities

$

258,484

$

517

0.80

$

250,839

$

478

0.76

$

231,601

$

404

0.70

Net interest income/spread


$

5,277

6.65



$

5,093

6.60



$

4,760

6.60

Impact of non-interest-bearing funding




0.14





0.13





0.13

Net interest margin




6.79

%




6.73

%




6.73

%




Nine Months Ended September 30,


2016

2015


Average
Balance

Interest
Income/
Expense(1)

Yield/
Rate(1)

Average
Balance

Interest
Income/
Expense(1)

Yield/
Rate(1)

(Dollars in millions) (unaudited)





Interest-earning assets:











Loans, including loans held for sale

$

232,064

$

15,616

8.97

%

$

208,444

$

13,824

8.84

%

Investment securities

65,735

1,206

2.45

63,500

1,174

2.47

Cash equivalents and other

6,624

60

1.21

7,444

77

1.38

Total interest-earning assets

$

304,423

$

16,882

7.39

$

279,388

$

15,075

7.19

Interest-bearing liabilities:











Interest-bearing deposits

$

195,565

$

881

0.60

$

184,258

$

814

0.59

Securitized debt obligations

15,997

151

1.26

13,233

108

1.09

Senior and subordinated notes

22,019

338

2.05

20,580

241

1.56

Other borrowings and liabilities

19,099

86

0.60

11,214

39

0.46

Total interest-bearing liabilities

$

252,680

$

1,456

0.77

$

229,285

$

1,202

0.70

Net interest income/spread


$

15,426

6.62



$

13,873

6.49

Impact of non-interest-bearing funding




0.14





0.13

Net interest margin




6.76

%




6.62

%


__________

(1)

Interest income and interest expense and the calculation of average yields on interest-earning assets and average rates on interest-bearing liabilities include the impact of hedge accounting.

 

 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics













2016 Q3 vs

Nine Months Ended September 30,

(Dollars in millions) (unaudited)

2016
Q3

2016
Q2

2016
Q1

2015
Q4

2015
Q3

2016
Q2

2015
Q3

2016

2015

2016 vs.
2015

Loans Held For Investment (Period-End)



















Credit card:



















   Domestic credit card

$

90,955

$

88,581

$

84,561

$

87,939

$

82,178

3

%

11

%

$

90,955

$

82,178

11

%

   International credit card

8,246

8,323

8,138

8,186

7,957

(1)

4

8,246

7,957

4

Total credit card

99,201

96,904

92,699

96,125

90,135

2

10

99,201

90,135

10

Consumer banking:



















   Auto

46,311

44,502

42,714

41,549

41,052

4

13

46,311

41,052

13

   Home loan

22,448

23,358

24,343

25,227

26,340

(4)

(15)

22,448

26,340

(15)

   Retail banking

3,526

3,555

3,534

3,596

3,598

(1)

(2)

3,526

3,598

(2)

Total consumer banking

72,285

71,415

70,591

70,372

70,990

1

2

72,285

70,990

2

Commercial banking:



















   Commercial and multifamily real estate

26,507

26,341

25,559

25,518

23,585

1

12

26,507

23,585

12

   Commercial and industrial

39,432

39,313

38,102

37,135

27,873

—

41

39,432

27,873

41

     Total commercial lending

65,939

65,654

63,661

62,653

51,458

—

28

65,939

51,458

28

   Small-ticket commercial real estate

518

548

580

613

654

(5)

(21)

518

654

(21)

Total commercial banking

66,457

66,202

64,241

63,266

52,112

—

28

66,457

52,112

28

Other loans

76

82

82

88

92

(7)

(17)

76

92

(17)

Total loans held for investment

$

238,019

$

234,603

$

227,613

$

229,851

$

213,329

1

12

$

238,019

$

213,329

12

Loans Held For Investment (Average)



















Credit card:



















   Domestic credit card

$

89,763

$

85,981

$

85,148

$

83,760

$

80,402

4

%

12

%

$

86,974

$

77,053

13

%

   International credit card

8,253

8,401

7,839

8,127

8,048

(2)

3

8,165

7,946

3

Total credit card

98,016

94,382

92,987

91,887

88,450

4

11

95,139

84,999

12

Consumer banking:



















   Auto

45,355

43,605

41,962

41,333

40,560

4

12

43,647

39,505

10

   Home loan

22,852

23,835

24,781

25,776

26,934

(4)

(15)

23,819

28,217

(16)

   Retail banking

3,520

3,548

3,553

3,595

3,603

(1)

(2)

3,540

3,578

(1)

Total consumer banking

71,727

70,988

70,296

70,704

71,097

1

1

71,006

71,300

—

Commercial banking:



















   Commercial and multifamily real estate

26,154

25,661

25,015

25,613

23,305

2

12

25,612

23,092

11

   Commercial and industrial

39,346

38,713

37,762

31,132

27,620

2

42

38,610

27,411

41

     Total commercial lending

65,500

64,374

62,777

56,745

50,925

2

29

64,222

50,503

27

   Small-ticket commercial real estate

534

564

598

634

667

(5)

(20)

565

712

(21)

Total commercial banking

66,034

64,938

63,375

57,379

51,592

2

28

64,787

51,215

27

Other loans

66

71

78

82

88

(7)

(25)

72

94

(23)

Total average loans held for investment

$

235,843

$

230,379

$

226,736

$

220,052

$

211,227

2

12

$

231,004

$

207,608

11


















2016 Q3 vs

Nine Months Ended September 30,

(unaudited)

2016
Q3

2016
Q2

2016
Q1

2015
Q4

2015
Q3

2016
Q2

2015
Q3

2016

2015

2016 vs.
2015

Net Charge-Off (Recovery) Rates

























Credit card:

























   Domestic credit card

3.74

%

4.07

%

4.16

%

3.75

%

3.08

%

(33)

bps

66

bps

3.99

%

3.35

%

64

bps

   International credit card

3.18


3.54


3.24


2.76


1.80

(36)

138


3.32

2.41

91

Total credit card

3.70


4.02


4.09


3.66


2.96

(32)

74


3.93

3.26

67

Consumer banking:



























   Auto

1.85


1.20


1.60


2.10


1.85

65

—


1.55

1.54

1

   Home loan

0.03


0.09


0.05


0.05


0.01

(6)

2


0.05

0.03

2

   Retail banking

1.75


1.26


1.36


1.43


1.53

49

22


1.46

1.30

16

Total consumer banking

1.26


0.83


1.04


1.32


1.14

43

12


1.04

0.93

11

Commercial banking:



























   Commercial and multifamily real estate

0.01


(0.02)


(0.01)


(0.03)


(0.15)

3

16


(0.01)

(0.07)

6

   Commercial and industrial

1.09


0.62


0.49


0.07


0.61

47

48


0.74

0.26

48

     Total commercial lending

0.66


0.37


0.29


0.02


0.26

29

40


0.44

0.11

33

   Small-ticket commercial real estate

0.74


0.33


0.13


0.34


0.50

41

24


0.39

0.37

2

Total commercial banking

0.66


0.37


0.29


0.03


0.26

29

40


0.44

0.11

33

Total net charge-offs

2.10


2.01


2.08


1.96


1.69

9

41


2.06

1.68

38

30+ Day Performing Delinquency Rates



























Credit card:



























   Domestic credit card

3.68

%

3.14

%

3.09

%

3.39

%

3.28

%

54

bps

40

bps

3.68

%

3.28

%

40

bps

   International credit card

3.33


3.24


3.32


2.98


2.81

9

52


3.33

2.81

52

Total credit card

3.65


3.15


3.11


3.36


3.24

50

41


3.65

3.24

41

Consumer banking:



























   Auto

5.67


5.59


5.14


6.69


6.10

8

(43)


5.67

6.10

(43)

   Home loan

0.19


0.14


0.14


0.16


0.18

5

1


0.19

0.18

1

   Retail banking

0.59


0.62


0.61


0.76


0.62

(3)

(3)


0.59

0.62

(3)

Total consumer banking

3.72


3.56


3.19


4.05


3.62

16

10


3.72

3.62

10

Nonperforming Loans and Nonperforming Assets Rates(1)(2)



























Credit card:



























   International credit card

0.53

%

0.53

%

0.59

%

0.65

%

0.77

%

—

(24)

bps

0.53

%

0.77

%

(24)

bps

Total credit card

0.04


0.05


0.05


0.06


0.07

(1)

bps

(3)


0.04

0.07

(3)

Consumer banking:



























   Auto

0.43


0.38


0.31


0.53


0.49

5

(6)


0.43

0.49

(6)

   Home loan

1.23


1.24


1.26


1.23


1.18

(1)

5


1.23

1.18

5

   Retail banking

1.05


0.89


0.83


0.77


0.74

16

31


1.05

0.74

31

Total consumer banking

0.71


0.69


0.66


0.79


0.76

2

(5)


0.71

0.76

(5)

Commercial banking:



























   Commercial and multifamily real estate

0.08


0.10


0.12


0.03


0.03

(2)

5


0.08

0.03

5

   Commercial and industrial

2.44


2.58


2.66


1.45


1.58

(14)

86


2.44

1.58

86

     Total commercial lending

1.49


1.59


1.64


0.87


0.87

(10)

62


1.49

0.87

62

   Small-ticket commercial real estate

2.13


1.59


1.11


0.83


0.65

54

148


2.13

0.65

148

Total commercial banking

1.50


1.59


1.63


0.87


0.87

(9)

63


1.50

0.87

63

Total nonperforming loans

0.66


0.68


0.69


0.51


0.50

(2)

16


0.66

0.50

16

Total nonperforming assets

0.77


0.80


0.83


0.65


0.64

(3)

13


0.77

0.64

13

 

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 8: Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity



Three Months Ended September 30, 2016


Credit Card

Consumer Banking





(Dollars in millions) (unaudited)

Domestic
Card

International
Card

Total
Credit
Card

Auto

Home
Loan

Retail
Banking

Total
Consumer
Banking

Commercial
Banking

Other(3)

Total

Allowance for loan and lease losses:



















Balance as of June 30, 2016

$

3,730

$

356

$

4,086

$

833

$

58

$

81

$

972

$

821

$

2

$

5,881

Provision (benefit) for loan and lease losses

1,190

82

1,272

239

5

14

258

96

(1)

1,625

Charge-offs

(1,062)

(109)

(1,171)

(300)

(3)

(20)

(323)

(112)

—

(1,606)

Recoveries

221

44

265

90

2

4

96

4

1

366

Net charge-offs

(841)

(65)

(906)

(210)

(1)

(16)

(227)

(108)

1

(1,240)

Other changes(4)

—

(7)

(7)

—

—

—

—

(1)

—

(8)

Balance as of September 30, 2016

4,079

366

4,445

862

62

79

1,003

808

2

6,258

Reserve for unfunded lending commitments:



















Balance as of June 30, 2016

—

—

—

—

—

8

8

161

—

169

Provision (benefit) for losses on unfunded lending commitments

—

—

—

—

—

(2)

(2)

(35)

—

(37)

Balance as of September 30, 2016

—

—

—

—

—

6

6

126

—

132

Combined allowance and reserve as of September 30, 2016

$

4,079

$

366

$

4,445

$

862

$

62

$

85

$

1,009

$

934

$

2

$

6,390



Nine Months Ended September 30, 2016


Credit Card

Consumer Banking





(Dollars in millions) (unaudited)

Domestic
Card

International
Card

Total
Credit
Card

Auto

Home
Loan

Retail
Banking

Total
Consumer
Banking

Commercial
Banking

Other(3)

Total

Allowance for loan and lease losses:



















Balance as of December 31, 2015

$

3,355

$

299

$

3,654

$

726

$

70

$

72

$

868

$

604

$

4

$

5,130

Provision (benefit) for loan and lease losses

3,326

278

3,604

644

1

46

691

452

(4)

4,743

Charge-offs

(3,287)

(321)

(3,608)

(796)

(15)

(51)

(862)

(224)

(2)

(4,696)

Recoveries

685

118

803

288

6

12

306

10

4

1,123

Net charge-offs

(2,602)

(203)

(2,805)

(508)

(9)

(39)

(556)

(214)

2

(3,573)

Other changes(4)

—

(8)

(8)

—

—

—

—

(34)

—

(42)

Balance as of September 30, 2016

4,079

366

4,445

862

62

79

1,003

808

2

6,258

Reserve for unfunded lending commitments:



















Balance as of December 31, 2015

—

—

—

—

—

7

7

161

—

168

Provision (benefit) for losses on unfunded lending commitments

—

—

—

—

—

(1)

(1)

(35)

—

(36)

Balance as of September 30, 2016

—

—

—

—

—

6

6

126

—

132

Combined allowance and reserve as of September 30, 2016

$

4,079

$

366

$

4,445

$

862

$

62

$

85

$

1,009

$

934

$

2

$

6,390

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results



Three Months Ended September 30, 2016

Nine Months Ended September 30, 2016

(Dollars in millions) (unaudited)

Credit Card

Consumer
Banking

Commercial
Banking

Other

Total

Credit Card

Consumer
Banking

Commercial
Banking

Other

Total

Net interest income

$

3,204

$

1,472

$

555

$

46

$

5,277

$

9,282

$

4,331

$

1,651

$

162

$

15,426

Non-interest income

825

201

156

2

1,184

2,531

567

403

8

3,509

Total net revenue(5)

4,029

1,673

711

48

6,461

11,813

4,898

2,054

170

18,935

Provision (benefit) for credit losses

1,272

256

61

(1)

1,588

3,604

690

417

(4)

4,707

Non-interest expense

1,884

1,034

349

94

3,361

5,630

3,030

1,014

205

9,879

Income (loss) from continuing operations before income taxes

873

383

301

(45)

1,512

2,579

1,178

623

(31)

4,349

Income tax provision (benefit)

318

139

110

(71)

496

931

428

227

(214)

1,372

Income (loss) from continuing operations, net of tax

$

555

$

244

$

191

$

26

$

1,016

$

1,648

$

750

$

396

$

183

$

2,977























Three Months Ended June 30, 2016









(Dollars in millions) (unaudited)

Credit Card

Consumer
Banking

Commercial
Banking

Other

Total









Net interest income

$

3,045

$

1,439

$

559

$

50

$

5,093










Non-interest income

859

175

129

(2)

1,161










Total net revenue(5)

3,904

1,614

688

48

6,254










Provision (benefit) for credit losses

1,261

204

128

(1)

1,592










Non-interest expense

1,883

1,006

343

63

3,295










Income (loss) from continuing operations before income taxes

760

404

217

(14)

1,367










Income tax provision (benefit)

276

147

79

(78)

424










Income (loss) from continuing operations, net of tax

$

484

$

257

$

138

$

64

$

943

































Three Months Ended September 30, 2015

Nine Months Ended September 30, 2015

(Dollars in millions) (unaudited)

Credit Card

Consumer
Banking

Commercial
Banking

Other

Total

Credit Card

Consumer
Banking

Commercial
Banking

Other

Total

Net interest income

$

2,866

$

1,443

$

454

$

(3)

$

4,760

$

8,165

$

4,321

$

1,381

$

6

$

13,873

Non-interest income

858

174

108

—

1,140

2,519

528

345

(46)

3,346

Total net revenue(5)

3,724

1,617

562

(3)

5,900

10,684

4,849

1,726

(40)

17,219

Provision (benefit) for credit losses

831

188

75

(2)

1,092

2,395

579

184

(2)

3,156

Non-interest expense

1,848

1,001

272

39

3,160

5,481

2,969

814

252

9,516

Income (loss) from continuing operations before income taxes

1,045

428

215

(40)

1,648

2,808

1,301

728

(290)

4,547

Income tax provision (benefit)

375

155

78

(78)

530

1,007

471

264

(299)

1,443

Income (loss) from continuing operations, net of tax

$

670

$

273

$

137

$

38

$

1,118

$

1,801

$

830

$

464

$

9

$

3,104





















 



CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business













2016 Q3 vs

Nine Months Ended September 30,


2016

2016

2016

2015

2015

2016

2015




2016 vs

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2016

2015

2015

Credit Card(6)



















Earnings:



















Net interest income

$

3,204

$

3,045

$

3,033

$

2,996

$

2,866

5

%

12

%

$

9,282

$

8,165

14

%

Non-interest income

825

859

847

902

858

(4)

(4)

2,531

2,519

—

Total net revenue

4,029

3,904

3,880

3,898

3,724

3

8

11,813

10,684

11

Provision (benefit) for credit losses

1,272

1,261

1,071

1,022

831

1

53

3,604

2,395

50

Non-interest expense

1,884

1,883

1,863

2,021

1,848

—

2

5,630

5,481

3

Income (loss) from continuing operations before income taxes

873

760

946

855

1,045

15

(16)

2,579

2,808

(8)

Income tax provision (benefit)

318

276

337

302

375

15

(15)

931

1,007

(8)

Income (loss) from continuing operations, net of tax

$

555

$

484

$

609

$

553

$

670

15

(17)

$

1,648

$

1,801

(8)

Selected performance metrics:



















Period-end loans held for investment

$

99,201

$

96,904

$

92,699

$

96,125

$

90,135

2

10

$

99,201

$

90,135

10

Average loans held for investment

98,016

94,382

92,987

91,887

88,450

4

11

95,139

84,999

12

Average yield on loans held for investment(7)

14.68

%

14.49

%

14.60

%

14.45

%

14.39

%

19

bps

29

bps

14.59

%

14.22

%

37

bps

Total net revenue margin(8)

16.44

16.55

16.69

16.97

16.84

(11)

(40)

16.56

16.76

(20)

Net charge-off rate

3.70

4.02

4.09

3.66

2.96

(32)

74

3.93

3.26

67

30+ day performing delinquency rate

3.65

3.15

3.11

3.36

3.24

50

41

3.65

3.24

41

30+ day delinquency rate

3.69

3.18

3.15

3.40

3.29

51

40

3.69

3.29

40

Nonperforming loan rate(1)

0.04

0.05

0.05

0.06

0.07

(1)

(3)

0.04

0.07

(3)

PCCR intangible amortization

$

62

$

67

$

70

$

74

$

78

(7)

%

(21)

%

$

199

$

242

(18)

%

Purchase volume(9)

78,106

78,019

68,189

75,350

69,875

—

12

224,314

195,817

15

































2016 Q3 vs

Nine Months Ended September 30,


2016

2016

2016

2015

2015

2016

2015




2016 vs

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2016

2015

2015

Domestic Card



















Earnings:



















Net interest income

$

2,956

$

2,769

$

2,756

$

2,718

$

2,613

7

%

13

%

$

8,481

$

7,429

14

%

Non-interest income

759

792

774

830

814

(4)

(7)

2,325

2,353

(1)

Total net revenue

3,715

3,561

3,530

3,548

3,427

4

8

10,806

9,782

10

Provision (benefit) for credit losses

1,190

1,164

972

945

796

2

49

3,326

2,259

47

Non-interest expense

1,696

1,669

1,671

1,796

1,630

2

4

5,036

4,831

4

Income (loss) from continuing operations before income taxes

829

728

887

807

1,001

14

(17)

2,444

2,692

(9)

Income tax provision (benefit)

302

265

323

293

362

14

(17)

890

974

(9)

Income (loss) from continuing operations, net of tax

$

527

$

463

$

564

$

514

$

639

14

(18)

$

1,554

$

1,718

(10)

Selected performance metrics:



















Period-end loans held for investment

$

90,955

$

88,581

$

84,561

$

87,939

$

82,178

3

11

$

90,955

$

82,178

11

Average loans held for investment

89,763

85,981

85,148

83,760

80,402

4

12

86,974

77,053

13

Average yield on loans held for investment(7)

14.71

%

14.40

%

14.43

%

14.31

%

14.35

%

31

bps

36

bps

14.51

%

14.17

%

34

bps

Total net revenue margin(8)

16.55

16.57

16.58

16.95

17.05

(2)

(50)

16.57

16.93

(36)

Net charge-off rate

3.74

4.07

4.16

3.75

3.08

(33)

66

3.99

3.35

64

30+ day delinquency rate

3.68

3.14

3.09

3.39

3.28

54

40

3.68

3.28

40

Purchase volume(9)

$

71,331

$

71,050

$

62,617

$

68,740

$

63,777

—

12

%

$

204,998

$

178,000

15

%

Refreshed FICO scores:(10)



















Greater than 660

64

%

65

%

65

%

66

%

66

%

(1)

%

(2)

64

%

66

%

(2)

660 or below

36

35

35

34

34

1

2

36

34

2

Total

100

%

100

%

100

%

100

%

100

%




100

%

100

%


































2016 Q3 vs

Nine Months Ended September 30,


2016

2016

2016

2015

2015

2016

2015




2016 vs

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2016

2015

2015

International Card(6)



















Earnings:



















Net interest income

$

248

$

276

$

277

$

278

$

253

(10)

%

(2)

%

$

801

$

736

9

%

Non-interest income

66

67

73

72

44

(1)

50

206

166

24

Total net revenue

314

343

350

350

297

(8)

6

1,007

902

12

Provision (benefit) for credit losses

82

97

99

77

35

(15)

134

278

136

104

Non-interest expense

188

214

192

225

218

(12)

(14)

594

650

(9)

Income (loss) from continuing operations before income taxes

44

32

59

48

44

38

—

135

116

16

Income tax provision (benefit)

16

11

14

9

13

45

23

41

33

24

Income (loss) from continuing operations, net of tax

$

28

$

21

$

45

$

39

$

31

33

(10)

$

94

$

83

13

Selected performance metrics:



















Period-end loans held for investment

$

8,246

$

8,323

$

8,138

$

8,186

$

7,957

(1)

4

$

8,246

$

7,957

4

%

Average loans held for investment

8,253

8,401

7,839

8,127

8,048

(2)

3

8,165

7,946

3

Average yield on loans held for investment(7)

14.36

%

15.45

%

16.47

%

15.96

%

14.88

%

(109)

bps

(52)

bps

15.41

%

14.70

%

71

bps

Total net revenue margin(8)

15.24

16.32

17.85

17.21

14.77

(108)

47

16.45

15.14

131

Net charge-off rate

3.18

3.54

3.24

2.76

1.80

(36)

138

3.32

2.41

91

30+ day performing delinquency rate

3.33

3.24

3.32

2.98

2.81

9

52

3.33

2.81

52

30+ day delinquency rate

3.74

3.65

3.76

3.46

3.39

9

35

3.74

3.39

35

Nonperforming loan rate(1)

0.53

0.53

0.59

0.65

0.77

—

(24)

0.53

0.77

(24)

Purchase volume(9)

$

6,775

$

6,969

$

5,572

$

6,610

$

6,098

(3)

%

11

%

$

19,316

$

17,817

8

%

 

 



CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business













2016 Q3 vs

Nine Months Ended September 30,


2016

2016

2016

2015

2015

2016

2015




2016 vs

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2016

2015

2015

Consumer Banking



















Earnings:



















Net interest income

$

1,472

$

1,439

$

1,420

$

1,434

$

1,443

2

%

2

%

$

4,331

$

4,321

—

Non-interest income

201

175

191

182

174

15

16

567

528

7

%

Total net revenue

1,673

1,614

1,611

1,616

1,617

4

3

4,898

4,849

1

Provision (benefit) for credit losses

256

204

230

240

188

25

36

690

579

19

Non-interest expense

1,034

1,006

990

1,057

1,001

3

3

3,030

2,969

2

Income (loss) from continuing operations before income taxes

383

404

391

319

428

(5)

(11)

1,178

1,301

(9)

Income tax provision (benefit)

139

147

142

115

155

(5)

(10)

428

471

(9)

Income (loss) from continuing operations, net of tax

$

244

$

257

$

249

$

204

$

273

(5)

(11)

$

750

$

830

(10)

Selected performance metrics:



















Period-end loans held for investment

$

72,285

$

71,415

$

70,591

$

70,372

$

70,990

1

2

$

72,285

$

70,990

2

Average loans held for investment

71,727

70,988

70,296

70,704

71,097

1

1

71,006

71,300

—

Average yield on loans held for investment(7)

6.41

%

6.28

%

6.18

%

6.25

%

6.25

%

13

bps

16

bps

6.29

%

6.26

%

3

bps

Auto loan originations

$

6,804

$

6,529

$

5,844

$

4,977

$

5,590

4

%

22

%

$

19,177

$

16,208

18

%

Period-end deposits

178,793

176,340

177,803

172,702

170,866

1

5

178,793

170,866

5

Average deposits

177,402

176,808

174,254

171,521

170,816

—

4

176,159

170,500

3

Average deposit interest rate

0.56

%

0.55

%

0.54

%

0.54

%

0.56

%

1

bps

—

0.55

%

0.57

%

(2)

bps

Net charge-off rate

1.26

0.83

1.04

1.32

1.14

43

12

bps

1.04

0.93

11

30+ day performing delinquency rate

3.72

3.56

3.19

4.05

3.62

16

10

3.72

3.62

10

30+ day delinquency rate

4.26

4.07

3.67

4.67

4.22

19

4

4.26

4.22

4

Nonperforming loan rate(1)

0.71

0.69

0.66

0.79

0.76

2

(5)

0.71

0.76

(5)

Nonperforming asset rate(2)

0.98

0.96

0.95

1.10

1.05

2

(7)

0.98

1.05

(7)

Auto—At origination FICO scores:(11)



















Greater than 660

51

%

51

%

51

%

51

%

50

%

—

1

%

51

%

50

%

1

%

621 - 660

17

17

17

17

17

—

—

17

17

—

620 or below

32

32

32

32

33

—

(1)

32

33

(1)

Total

100

%

100

%

100

%

100

%

100

%




100

%

100

%

 

 



CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business













2016 Q3 vs

Nine Months Ended September 30,


2016

2016

2016

2015

2015

2016

2015




2016 vs

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2016

2015

2015

Commercial Banking



















Earnings:



















Net interest income

$

555

$

559

$

537

$

484

$

454

(1)

%

22

%

$

1,651

$

1,381

20

%

Non-interest income

156

129

118

142

108

21

44

403

345

17

Total net revenue(5)

711

688

655

626

562

3

27

2,054

1,726

19

Provision (benefit) for credit losses

61

128

228

118

75

(52)

(19)

417

184

127

Non-interest expense

349

343

322

342

272

2

28

1,014

814

25

Income (loss) from continuing operations before income taxes

301

217

105

166

215

39

40

623

728

(14)

Income tax provision (benefit)

110

79

38

60

78

39

41

227

264

(14)

Income (loss) from continuing operations, net of tax

$

191

$

138

$

67

$

106

$

137

38

39

$

396

$

464

(15)

Selected performance metrics:



















Period-end loans held for investment

$

66,457

$

66,202

$

64,241

$

63,266

$

52,112

—

28

$

66,457

$

52,112

28

Average loans held for investment

66,034

64,938

63,375

57,379

51,592

2

%

28

64,787

51,215

27

Average yield on loans held for investment(5)(7)

3.50

%

3.45

%

3.38

%

3.18

%

3.21

%

5

bps

29

bps

3.45

%

3.23

%

22

bps

Period-end deposits

$

33,611

$

34,281

$

33,383

$

34,257

$

32,751

(2)

%

3

%

$

33,611

$

32,751

3

%

Average deposits

33,498

33,764

34,076

33,797

32,806

(1)

2

33,778

32,809

3

Average deposit interest rate

0.30

%

0.27

%

0.27

%

0.26

%

0.25

%

3

bps

5

bps

0.28

%

0.25

%

3

bps

Net charge-off rate

0.66

0.37

0.29

0.03

0.26

29

40

0.44

0.11

33

Nonperforming loan rate(1)(12)

1.50

1.59

1.63

0.87

0.87

(9)

63

1.50

0.87

63

Nonperforming asset rate(2)(12)

1.51

1.60

1.64

0.87

0.87

(9)

64

1.51

0.87

64

Risk category:(12)(13)



















Noncriticized

$

62,336

$

61,926

$

59,663

$

59,743

$

49,803

1

%

25

%

$

62,336

$

49,803

25

%

Criticized performing

2,473

2,456

2,595

2,015

1,725

1

43

2,473

1,725

43

Criticized nonperforming

994

1,050

1,050

550

453

(5)

119

994

453

119

PCI loans(12)

654

770

933

958

131

(15)

**

654

131

**

Total commercial loans

$

66,457

$

66,202

$

64,241

$

63,266

$

52,112

—

28

$

66,457

$

52,112

28

Risk category as a percentage of period-end loans held for investment:(12)(13)



















Noncriticized

93.8

%

93.5

%

92.9

%

94.4

%

95.6

%

30

bps

(180)

bps

93.8

%

95.6

%

(180)

bps

Criticized performing

3.7

3.7

4.0

3.2

3.3

—

40

3.7

3.3

40

Criticized nonperforming

1.5

1.6

1.6

0.9

0.9

(10)

60

1.5

0.9

60

PCI loans(12)

1.0

1.2

1.5

1.5

0.2

(20)

80

1.0

0.2

80

Total commercial loans

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%




100.0

%

100.0

%

 

 


CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total













2016 Q3 vs

Nine Months Ended September 30,


2016

2016

2016

2015

2015

2016

2015




2016 vs

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Q2

Q3

2016

2015

2015

Other



















Earnings:



















Net interest income (expense)

$

46

$

50

$

66

$

47

$

(3)

(8)

%

**

$

162

$

6

**

Non-interest income

2

(2)

8

7

—

**

**

8

(46)

**

Total net revenue (loss)(5)

48

48

74

54

(3)

—

**

170

(40)

**

Provision (benefit) for credit losses

(1)

(1)

(2)

—

(2)

—

(50)

%

(4)

(2)

100

%

Non-interest expense

94

63

48

60

39

49

141

205

252

(19)

Income (loss) from continuing operations before income taxes

(45)

(14)

28

(6)

(40)

**

13

(31)

(290)

(89)

Income tax provision (benefit)

(71)

(78)

(65)

(51)

(78)

(9)

(9)

(214)

(299)

(28)

Income (loss) from continuing operations, net of tax

$

26

$

64

$

93

$

45

$

38

(59)

(32)

$

183

$

9

**

Selected performance metrics:



















Period-end loans held for investment

$

76

$

82

$

82

$

88

$

92

(7)

(17)

$

76

$

92

(17)

%

Average loans held for investment

66

71

78

82

88

(7)

(25)

72

94

(23)

Period-end deposits

13,577

10,438

10,593

10,762

9,286

30

46

13,577

9,286

46

Average deposits

11,351

10,574

10,850

10,581

7,352

7

54

10,927

6,025

81

Total



















Earnings:



















Net interest income

$

5,277

$

5,093

$

5,056

$

4,961

$

4,760

4

%

11

%

$

15,426

$

13,873

11

%

Non-interest income

1,184

1,161

1,164

1,233

1,140

2

4

3,509

3,346

5

Total net revenue

6,461

6,254

6,220

6,194

5,900

3

10

18,935

17,219

10

Provision (benefit) for credit losses

1,588

1,592

1,527

1,380

1,092

—

45

4,707

3,156

49

Non-interest expense

3,361

3,295

3,223

3,480

3,160

2

6

9,879

9,516

4

Income (loss) from continuing operations before income taxes

1,512

1,367

1,470

1,334

1,648

11

(8)

4,349

4,547

(4)

Income tax provision (benefit)

496

424

452

426

530

17

(6)

1,372

1,443

(5)

Income (loss) from continuing operations, net of tax

$

1,016

$

943

$

1,018

$

908

$

1,118

8

(9)

$

2,977

$

3,104

(4)

Selected performance metrics:



















Period-end loans held for investment

$

238,019

$

234,603

$

227,613

$

229,851

$

213,329

1

12

$

238,019

$

213,329

12

Average loans held for investment

235,843

230,379

226,736

220,052

211,227

2

12

231,004

207,608

11

Period-end deposits

225,981

221,059

221,779

217,721

212,903

2

6

225,981

212,903

6

Average deposits

222,251

221,146

219,180

215,899

210,974

—

5

220,864

209,334

6

          

                  

     

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)

(1)

The nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category.

(2)

Nonperforming assets consist of nonperforming loans, real estate owned ("REO") and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, REO and other foreclosed assets. Calculation of nonperforming asset rates for our Consumer Banking and Commercial Banking businesses do not include the impact of acquired REOs.

(3)

Primarily consists of the legacy loan portfolio of our discontinued GreenPoint mortgage operations.

(4)

Represents foreign currency translation adjustments and the net impact of loan transfers and sales.

(5)

Some of our tax-related commercial investments generate tax-exempt income or tax credits. Accordingly, we make certain reclassifications within our Commercial Banking business results to present revenues and yields on a taxable-equivalent basis, calculated assuming an effective tax rate approximately equal to our federal statutory tax rate of 35% with offsetting reclassifications to the Other category.

(6)

Includes a build in our U.K. PPI Reserve in Q3 2016, Q2 2016 and Q3 2015, which impacted both total net revenue and non-interest expense within our International Card business.

(7)

Calculated based on annualized interest income for the period divided by average loans held for investment during the period for the respective loan category. Annualized interest income is computed based on the effective yield of the respective loan category and does not include any allocations, such as funds transfer pricing.

(8)

Calculated based on annualized total net revenue for the period divided by average loans held for investment during the period for the respective loan category.

(9)

Includes purchase transactions, net of returns, for the period for loans both classified as held for investment and held for sale. Excludes cash advance and balance transfer transactions.

(10)

Percentages represent period-end loans held for investment in each credit score category. Credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.

(11)

Percentages represent period-end loans held for investment in each credit score category. Credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.

(12)

The loans held for investment acquired in the HFS acquisition included $556 million, $667 million, $825 million and $835 million of PCI loans as of September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, respectively, that are being accounted for under ASC 310-30 (formerly "SOP 03-3") due to their deterioration in credit quality since origination. From a managed perspective, we evaluate loans based on their actual risk ratings, and accordingly we are also including our nonperforming and criticized ratios measured on that basis. The table below presents our nonperforming loan rate, nonperforming asset rate and risk category information as if these PCI loans were classified based on their risk ratings in each of the periods impacted by the HFS acquisition.





2016

2016

2016

2015

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Selected performance metrics:








Nonperforming loan rate

1.53

%

1.63

%

1.69

%

0.93

%

Nonperforming asset rate

1.54

1.64

1.70

0.93

Risk category:








Noncriticized

$

62,575

$

62,058

$

59,729

$

59,743

Criticized performing

2,766

2,961

3,321

2,814

Criticized nonperforming

1,018

1,080

1,083

586

Risk category as a percentage of period-end loans held for investment:








Noncriticized

94.2

%

93.7

%

93.0

%

94.4

%

Criticized performing

4.2

4.5

5.2

4.5

Criticized nonperforming

1.5

1.6

1.7

0.9


(13)

Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.

** 

Not meaningful.

 

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures(1)



Basel III Standardized Approach

(Dollars in millions) (unaudited)

September 30,
2016

June 30,
2016

March 31,
2016

December 31,
2015

September 30,
2015

Regulatory Capital Metrics









Common equity Tier 1 capital

$

29,192

$

29,486

$

29,231

$

29,544

$

30,109

Tier 1 capital

33,069

32,780

32,525

32,838

33,402

Total capital(2)

40,565

38,767

38,399

38,838

37,694

Risk-weighted assets

275,102

269,667

262,368

265,739

249,081

Adjusted average assets(3)

328,628

319,968

317,403

309,037

300,010

Capital Ratios









Common equity Tier 1 capital(4)

10.6

%

10.9

%

11.1

%

11.1

%

12.1

%

Tier 1 capital(5)

12.0

12.2

12.4

12.4

13.4

Total capital(6)

14.7

14.4

14.6

14.6

15.1

Tier 1 leverage(3)

10.1

10.2

10.2

10.6

11.1

Tangible common equity ("TCE")(7)

8.8

9.0

9.1

8.9

9.8

Reconciliation of Non-GAAP Measures

We report certain non-GAAP measures that management uses in assessing its capital adequacy and the level of return generated. These non-GAAP measures consist of tangible common equity ("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. These metrics are considered key financial performance measures for the Company. The tables below provide the details of the calculation of our non-GAAP measures and regulatory capital. While our 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.



2016

2016

2016

2015

2015

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Tangible Common Equity (Period-End)









Stockholders' equity

$

48,213

$

48,108

$

47,707

$

47,284

$

47,685

Goodwill and intangible assets(8)

(15,475)

(15,553)

(15,629)

(15,701)

(15,153)

Noncumulative perpetual preferred stock(9)

(3,877)

(3,294)

(3,296)

(3,294)

(3,294)

Tangible common equity

$

28,861

$

29,261

$

28,782

$

28,289

$

29,238

Tangible Common Equity (Average)









Average stockholders' equity

$

49,033

$

48,934

$

49,078

$

48,712

$

48,456

Average goodwill and intangible assets(8)

(15,507)

(15,585)

(15,654)

(15,316)

(15,183)

Average noncumulative perpetual preferred stock(9)

(3,719)

(3,294)

(3,296)

(3,294)

(3,049)

Average tangible common equity

$

29,807

$

30,055

$

30,128

$

30,102

$

30,224













2016

2016

2016

2015

2015

(Dollars in millions) (unaudited)

Q3

Q2

Q1

Q4

Q3

Tangible Assets (Period-End)









Total assets

$

345,061

$

339,117

$

330,346

$

334,048

$

313,700

Goodwill and intangible assets(8)

(15,475)

(15,553)

(15,629)

(15,701)

(15,153)

Tangible assets

$

329,586

$

323,564

$

314,717

$

318,347

$

298,547

Tangible Assets (Average)









Average total assets

$

343,153

$

334,479

$

331,919

$

323,354

$

313,822

Average goodwill and intangible assets(8)

(15,507)

(15,585)

(15,654)

(15,316)

(15,183)

Average tangible assets

$

327,646

$

318,894

$

316,265

$

308,038

$

298,639

Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach

(Dollars in millions) (unaudited)

September 30,
2016

June 30,
2016

March 31,
2016

December 31,
2015

September 30,
2015

Common equity excluding AOCI

$

44,214

$

44,572

$

44,452

$

44,606

$

44,533

Adjustments:









AOCI(10)(11)

199

332

117

(254)

75

Goodwill(8)

(14,288)

(14,296)

(14,301)

(14,296)

(13,805)

Intangible assets(8)(11)

(435)

(483)

(532)

(393)

(374)

Other

(498)

(639)

(505)

(119)

(320)

Common equity Tier 1 capital

$

29,192

$

29,486

$

29,231

$

29,544

$

30,109

Risk-weighted assets

$

275,102

$

269,667

$

262,368

$

265,739

$

249,081

Common equity Tier 1 capital ratio(4)

10.6

%

10.9

%

11.1

%

11.1

%

12.1

%

__________

(1)

Regulatory capital metrics and capital ratios as of September 30, 2016 are preliminary and therefore subject to change.

(2)

Total capital equals the sum of Tier 1 capital and Tier 2 capital.

(3)

Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.

(4)

Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.

(5)

Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.

(6)

Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.

(7)

TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.

(8)

Includes impact of related deferred taxes.

(9)

Includes related surplus.

(10)

Amounts presented are net of tax.

(11)

Amounts based on transition provisions for regulatory capital deductions and adjustments of 40% for 2015 and 60% for 2016.


To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/capital-one-reports-third-quarter-2016-net-income-of-10-billion-or-190-per-share-300350992.html

SOURCE Capital One Financial Corporation

Copyright 2016 PR Newswire

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