MCLEAN, Va., April 24, 2018 /PRNewswire/ -- Capital One
Financial Corporation (NYSE: COF) today announced net income for
the first quarter of 2018 of $1.3
billion, or $2.62 per diluted
common share, compared with a net loss of $971 million, or $2.17 per diluted common share in the fourth
quarter of 2017, and with net income of $810
million, or $1.54 per diluted
common share in the first quarter of 2017. During the quarter, we
recorded $19 million of restructuring
charges. Excluding this adjusting item, net income for the first
quarter of 2018 was $2.65 per diluted
common share(1).
"In the first quarter, Capital One delivered year-over-year
growth in loans, deposits, revenues and pre-provision earnings,"
said Richard D. Fairbank, Founder,
Chairman and Chief Executive Officer. "We continue to build an
enduringly great franchise with the scale, brand, capabilities and
infrastructure to succeed as the digital revolution transforms
banking."
All comparisons below are for the first quarter of 2018 compared
with the fourth quarter of 2017 unless otherwise noted.
First Quarter 2018 Income Statement Summary:
- Total net revenue decreased 1 percent to $6.9 billion.
- Total non-interest expense decreased 5 percent to $3.6 billion:
-
- 5 percent decrease in operating expenses.
- 10 percent decrease in marketing.
- Pre-provision earnings increased 3 percent to $3.3 billion(2).
- Provision for credit losses decreased 13 percent to
$1.7 billion:
-
- Net charge-offs of $1.6
billion.
- $56 million reserve build.
- Net interest margin of 6.93 percent, down 10 basis points.
- Efficiency ratio of 51.72 percent.
-
- Efficiency ratio excluding adjusting items was 51.45
percent(1).
First Quarter 2018 Balance Sheet Summary:
- Common equity Tier 1 capital ratio under Basel III Standardized
Approach of 10.5 percent at March 31,
2018.
- Period-end loans held for investment in the quarter decreased
$6.2 billion, or 2 percent, to
$248.3 billion.
-
- Credit Card period-end loans decreased $7.2 billion, or 6 percent, to $107.6 billion.
-
- Domestic Card period-end loans decreased $6.8 billion, or 6 percent, to $98.5 billion.
- Consumer Banking period-end loans decreased $404 million, or 1 percent, to $74.7 billion:
-
- Auto period-end loans increased $820
million, or 2 percent, to $54.8
billion.
- Home loans period-end loans decreased $1.0 billion, or 6 percent, to $16.6 billion, primarily driven by run-off of
acquired portfolios.
- Commercial Banking period-end loans increased $1.4 billion, or 2 percent, to $66.0 billion.
- Average loans held for investment in the quarter decreased
$2.8 billion, or 1 percent, to
$249.7 billion.
-
- Credit Card average loans decreased $527
million, or less than 1 percent, to $109.5 billion.
-
- Domestic Card average loans decreased $637 million, or 1 percent, to $100.5 billion.
- Consumer Banking average loans decreased $292 million, or less than 1 percent, to
$75.0 billion:
-
- Auto average loans increased $597
million, or 1 percent, to $54.3
billion.
- Home loans average loans decreased $885
million, or 5 percent, to $17.2
billion, primarily driven by run-off of acquired
portfolios.
- Commercial Banking average loans decreased $2.0 billion, or 3 percent, to $65.2 billion.
- Period-end total deposits increased $7.1
billion, or 3 percent, to $250.8
billion, while average deposits increased $3.7 billion, or 2 percent, to $245.3 billion.
- Interest-bearing deposits rate paid increased 13 basis points
to 0.98 percent.
Earnings Conference Call Webcast Information
The company will hold an earnings conference call on
April 24, 2018 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 May 8, 2018
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, 2017.
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 $250.8
billion in deposits and $362.9
billion in total assets as of March
31, 2018. 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.
(1) Amounts excluding adjusting items are
non-GAAP measures that we believe help investors and users of our
financial information understand the effect of adjusting items on
our selected reported results and provide alternate measurements of
our performance. See Table 15 in Exhibit 99.2 for a reconciliation
of our selected reported results to these non-GAAP measures.
(2) Pre-provision earnings is calculated based
on the sum of net interest income and non-interest income, less
non-interest expense for the period.
Exhibit
99.2
|
|
Capital One
Financial Corporation
|
Financial
Supplement(1)(2)
|
First
Quarter 2018
|
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
|
9
|
|
Table
7:
|
Loan Information
and Performance Statistics
|
10
|
|
Table
8:
|
Allowance for Loan
and Lease Losses and Reserve for Unfunded Lending Commitments
Activity
|
12
|
Business Segment
Results
|
|
|
Table
9:
|
Financial
Summary—Business Segment Results
|
13
|
|
Table
10:
|
Financial &
Statistical Summary—Credit Card Business
|
14
|
|
Table
11:
|
Financial &
Statistical Summary—Consumer Banking Business
|
16
|
|
Table
12:
|
Financial &
Statistical Summary—Commercial Banking Business
|
17
|
|
Table
13:
|
Financial &
Statistical Summary—Other and Total
|
18
|
|
Table
14:
|
Notes to Loan,
Allowance and Business Segment Disclosures (Tables
7—13)
|
19
|
Other
|
|
|
Table
15:
|
Calculation of
Regulatory Capital Measures and Reconciliation of Non-GAAP
Measures
|
20
|
___________
|
|
|
(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 March 31, 2018 once it is filed with the Securities and
Exchange Commission.
|
(2)
|
This Financial
Supplement includes non-GAAP measures. We believe these non-GAAP
measures are useful to investors and users of our financial
information as they provide an alternate measurement of our
performance and assist in assessing our capital adequacy and the
level of return generated. These non-GAAP measures should not be
viewed as a substitute for reported results determined in
accordance with generally accepted accounting principles in the
U.S. ("GAAP"), nor are they necessarily comparable to non-GAAP
measures that may be presented by other companies.
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 1: Financial
Summary—Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
(Dollars in
millions, except per share data and as noted)
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Income
Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
5,718
|
|
|
$
|
5,813
|
|
|
$
|
5,700
|
|
|
$
|
5,473
|
|
|
$
|
5,474
|
|
|
(2)
|
%
|
|
4
|
%
|
Non-interest
income
|
|
1,191
|
|
|
1,200
|
|
|
1,285
|
|
|
1,231
|
|
|
1,061
|
|
|
(1)
|
|
|
12
|
|
Total net
revenue(1)
|
|
6,909
|
|
|
7,013
|
|
|
6,985
|
|
|
6,704
|
|
|
6,535
|
|
|
(1)
|
|
|
6
|
|
Provision for credit
losses
|
|
1,674
|
|
|
1,926
|
|
|
1,833
|
|
|
1,800
|
|
|
1,992
|
|
|
(13)
|
|
|
(16)
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing
|
|
414
|
|
|
460
|
|
|
379
|
|
|
435
|
|
|
396
|
|
|
(10)
|
|
|
5
|
|
Operating
expenses
|
|
3,159
|
|
|
3,319
|
|
|
3,188
|
|
|
2,979
|
|
|
3,038
|
|
|
(5)
|
|
|
4
|
|
Total non-interest
expense
|
|
3,573
|
|
|
3,779
|
|
|
3,567
|
|
|
3,414
|
|
|
3,434
|
|
|
(5)
|
|
|
4
|
|
Income from
continuing operations before income taxes
|
|
1,662
|
|
|
1,308
|
|
|
1,585
|
|
|
1,490
|
|
|
1,109
|
|
|
27
|
|
|
50
|
|
Income tax
provision
|
|
319
|
|
|
2,170
|
|
|
448
|
|
|
443
|
|
|
314
|
|
|
(85)
|
|
|
2
|
|
Income (loss) from
continuing operations, net of tax
|
|
1,343
|
|
|
(862)
|
|
|
1,137
|
|
|
1,047
|
|
|
795
|
|
|
**
|
|
69
|
|
Income (loss) from
discontinued operations, net of tax
|
|
3
|
|
|
(109)
|
|
|
(30)
|
|
|
(11)
|
|
|
15
|
|
|
**
|
|
(80)
|
|
Net income
(loss)
|
|
1,346
|
|
|
(971)
|
|
|
1,107
|
|
|
1,036
|
|
|
810
|
|
|
**
|
|
66
|
|
Dividends and
undistributed earnings allocated to participating
securities(2)
|
|
(10)
|
|
|
(1)
|
|
|
(8)
|
|
|
(8)
|
|
|
(5)
|
|
|
**
|
|
100
|
|
Preferred stock
dividends
|
|
(52)
|
|
|
(80)
|
|
|
(52)
|
|
|
(80)
|
|
|
(53)
|
|
|
(35)
|
|
|
(2)
|
|
Net income (loss)
available to common stockholders
|
|
$
|
1,284
|
|
|
$
|
(1,052)
|
|
|
$
|
1,047
|
|
|
$
|
948
|
|
|
$
|
752
|
|
|
**
|
|
71
|
|
Common Share
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
|
2.63
|
|
|
$
|
(1.95)
|
|
|
$
|
2.22
|
|
|
$
|
1.98
|
|
|
$
|
1.53
|
|
|
**
|
|
72
|
%
|
Income (loss) from
discontinued operations
|
|
0.01
|
|
|
(0.22)
|
|
|
(0.06)
|
|
|
(0.02)
|
|
|
0.03
|
|
|
**
|
|
(67)
|
|
Net income (loss) per
basic common share
|
|
$
|
2.64
|
|
|
$
|
(2.17)
|
|
|
$
|
2.16
|
|
|
$
|
1.96
|
|
|
$
|
1.56
|
|
|
**
|
|
69
|
|
Diluted earnings
per common share:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
|
2.61
|
|
|
$
|
(1.95)
|
|
|
$
|
2.20
|
|
|
$
|
1.96
|
|
|
$
|
1.51
|
|
|
**
|
|
73
|
|
Income (loss) from
discontinued operations
|
|
0.01
|
|
|
(0.22)
|
|
|
(0.06)
|
|
|
(0.02)
|
|
|
0.03
|
|
|
**
|
|
(67)
|
|
Net income (loss) per
diluted common share
|
|
$
|
2.62
|
|
|
$
|
(2.17)
|
|
|
$
|
2.14
|
|
|
$
|
1.94
|
|
|
$
|
1.54
|
|
|
**
|
|
70
|
|
Weighted-average
common shares outstanding (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
486.9
|
|
|
485.7
|
|
|
484.9
|
|
|
484.0
|
|
|
482.3
|
|
|
—
|
|
|
1
|
|
Diluted
|
|
490.8
|
|
|
485.7
|
|
|
489.0
|
|
|
488.1
|
|
|
487.9
|
|
|
1
|
%
|
|
1
|
|
Common shares
outstanding (period-end, in millions)
|
|
485.9
|
|
|
485.5
|
|
|
484.4
|
|
|
483.7
|
|
|
482.8
|
|
|
—
|
|
|
1
|
|
Dividends declared
and paid per common share
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
—
|
|
|
—
|
|
Tangible book value
per common share (period-end)(3)
|
|
61.29
|
|
|
60.28
|
|
|
63.06
|
|
|
60.94
|
|
|
58.66
|
|
|
2
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
(Dollars in
millions)
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Balance Sheet
(Period-End)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment(4)
|
|
$
|
248,256
|
|
|
$
|
254,473
|
|
|
$
|
252,422
|
|
|
$
|
244,302
|
|
|
$
|
240,588
|
|
|
(2)
|
%
|
|
3
|
%
|
Interest-earning
assets
|
|
332,251
|
|
|
334,124
|
|
|
329,002
|
|
|
319,286
|
|
|
316,712
|
|
|
(1)
|
|
|
5
|
|
Total
assets
|
|
362,857
|
|
|
365,693
|
|
|
361,402
|
|
|
350,593
|
|
|
348,549
|
|
|
(1)
|
|
|
4
|
|
Interest-bearing
deposits
|
|
224,671
|
|
|
217,298
|
|
|
212,956
|
|
|
213,810
|
|
|
214,818
|
|
|
3
|
|
|
5
|
|
Total
deposits
|
|
250,847
|
|
|
243,702
|
|
|
239,062
|
|
|
239,763
|
|
|
241,182
|
|
|
3
|
|
|
4
|
|
Borrowings
|
|
50,693
|
|
|
60,281
|
|
|
59,458
|
|
|
49,954
|
|
|
48,439
|
|
|
(16)
|
|
|
5
|
|
Common
equity
|
|
44,842
|
|
|
44,370
|
|
|
45,794
|
|
|
44,777
|
|
|
43,680
|
|
|
1
|
|
|
3
|
|
Total stockholders'
equity
|
|
49,203
|
|
|
48,730
|
|
|
50,154
|
|
|
49,137
|
|
|
48,040
|
|
|
1
|
|
|
2
|
|
Balance Sheet
(Average Balances)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment(4)
|
|
$
|
249,726
|
|
|
$
|
252,566
|
|
|
$
|
245,822
|
|
|
$
|
242,241
|
|
|
$
|
241,505
|
|
|
(1)
|
%
|
|
3
|
%
|
Interest-earning
assets
|
|
330,183
|
|
|
330,742
|
|
|
322,015
|
|
|
318,078
|
|
|
318,358
|
|
|
—
|
|
|
4
|
|
Total
assets
|
|
362,049
|
|
|
363,045
|
|
|
355,191
|
|
|
349,891
|
|
|
351,641
|
|
|
—
|
|
|
3
|
|
Interest-bearing
deposits
|
|
219,670
|
|
|
215,258
|
|
|
213,137
|
|
|
214,412
|
|
|
212,973
|
|
|
2
|
|
|
3
|
|
Total
deposits
|
|
245,270
|
|
|
241,562
|
|
|
238,843
|
|
|
240,550
|
|
|
238,550
|
|
|
2
|
|
|
3
|
|
Borrowings
|
|
54,588
|
|
|
58,109
|
|
|
54,271
|
|
|
48,838
|
|
|
53,357
|
|
|
(6)
|
|
|
2
|
|
Common
equity
|
|
44,670
|
|
|
46,350
|
|
|
45,816
|
|
|
44,645
|
|
|
43,833
|
|
|
(4)
|
|
|
2
|
|
Total stockholders'
equity
|
|
49,031
|
|
|
50,710
|
|
|
50,176
|
|
|
49,005
|
|
|
48,193
|
|
|
(3)
|
|
|
2
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 2: Selected
Metrics—Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
(Dollars in
millions, except as noted)
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Performance
Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
growth (period over period)
|
|
(2)
|
%
|
|
2
|
%
|
|
4
|
%
|
|
—
|
|
|
—
|
|
|
**
|
|
**
|
Non-interest income
growth (period over period)
|
|
(1)
|
|
|
(7)
|
|
|
4
|
|
|
16
|
%
|
|
(5)
|
%
|
|
**
|
|
**
|
Total net revenue
growth (period over period)
|
|
(1)
|
|
|
—
|
|
|
4
|
|
|
3
|
|
|
—
|
|
|
**
|
|
**
|
Total net revenue
margin(5)
|
|
8.37
|
|
|
8.48
|
|
|
8.68
|
|
|
8.43
|
|
|
8.21
|
|
|
(11)
|
bps
|
|
16
|
bps
|
Net interest
margin(6)
|
|
6.93
|
|
|
7.03
|
|
|
7.08
|
|
|
6.88
|
|
|
6.88
|
|
|
(10)
|
|
|
5
|
|
Return on average
assets
|
|
1.48
|
|
|
(0.95)
|
|
|
1.28
|
|
|
1.20
|
|
|
0.90
|
|
|
243
|
|
|
58
|
|
Return on average
tangible assets(7)
|
|
1.55
|
|
|
(0.99)
|
|
|
1.34
|
|
|
1.25
|
|
|
0.95
|
|
|
254
|
|
|
60
|
|
Return on average
common equity(8)
|
|
11.47
|
|
|
(8.14)
|
|
|
9.40
|
|
|
8.59
|
|
|
6.73
|
|
|
**
|
|
474
|
|
Return on average
tangible common equity(9)
|
|
17.32
|
|
|
(12.12)
|
|
|
14.11
|
|
|
13.09
|
|
|
10.37
|
|
|
**
|
|
695
|
|
Non-interest expense
as a percentage of average loans held for investment
|
|
5.72
|
|
|
5.98
|
|
|
5.80
|
|
|
5.64
|
|
|
5.69
|
|
|
(26)
|
|
|
3
|
|
Efficiency
ratio(10)
|
|
51.72
|
|
|
53.89
|
|
|
51.07
|
|
|
50.92
|
|
|
52.55
|
|
|
(217)
|
|
|
(83)
|
|
Effective income tax
rate for continuing operations
|
|
19.2
|
|
|
165.9
|
|
|
28.3
|
|
|
29.7
|
|
|
28.3
|
|
|
**
|
|
**
|
Employees (in
thousands), period-end
|
|
47.9
|
|
|
49.3
|
|
|
50.4
|
|
|
49.9
|
|
|
48.4
|
|
|
(3)
|
%
|
|
(1)
|
%
|
Credit Quality
Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
and lease losses
|
|
$
|
7,567
|
|
|
$
|
7,502
|
|
|
$
|
7,418
|
|
|
$
|
7,170
|
|
|
$
|
6,984
|
|
|
1
|
%
|
|
8
|
%
|
Allowance as a
percentage of loans held for investment
|
|
3.05
|
%
|
|
2.95
|
%
|
|
2.94
|
%
|
|
2.93
|
%
|
|
2.90
|
%
|
|
10
|
bps
|
|
15
|
bps
|
Net
charge-offs
|
|
$
|
1,618
|
|
|
$
|
1,828
|
|
|
$
|
1,606
|
|
|
$
|
1,618
|
|
|
$
|
1,510
|
|
|
(11)
|
%
|
|
7
|
%
|
Net charge-off
rate(11)
|
|
2.59
|
%
|
|
2.89
|
%
|
|
2.61
|
%
|
|
2.67
|
%
|
|
2.50
|
%
|
|
(30)
|
bps
|
|
9
|
bps
|
30+ day performing
delinquency rate
|
|
2.72
|
|
|
3.23
|
|
|
2.93
|
|
|
2.69
|
|
|
2.61
|
|
|
(51)
|
|
|
11
|
|
30+ day delinquency
rate
|
|
2.91
|
|
|
3.48
|
|
|
3.24
|
|
|
2.99
|
|
|
2.92
|
|
|
(57)
|
|
|
(1)
|
|
Capital
Ratios(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1
capital
|
|
10.5
|
%
|
|
10.3
|
%
|
|
10.7
|
%
|
|
10.7
|
%
|
|
10.4
|
%
|
|
20
|
bps
|
|
10
|
bps
|
Tier 1
capital
|
|
12.0
|
|
|
11.8
|
|
|
12.2
|
|
|
12.2
|
|
|
12.0
|
|
|
20
|
|
|
—
|
|
Total
capital
|
|
14.5
|
|
|
14.4
|
|
|
14.8
|
|
|
14.9
|
|
|
14.7
|
|
|
10
|
|
|
(20)
|
|
Tier 1
leverage
|
|
10.1
|
|
|
9.9
|
|
|
10.5
|
|
|
10.3
|
|
|
9.9
|
|
|
20
|
|
|
20
|
|
Tangible common
equity ("TCE")(13)
|
|
8.6
|
|
|
8.3
|
|
|
8.8
|
|
|
8.8
|
|
|
8.5
|
|
|
30
|
|
|
10
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 3:
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
(Dollars in
millions, except per share data and as noted)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
loans held for sale
|
|
$
|
6,134
|
|
|
$
|
6,133
|
|
|
$
|
5,960
|
|
|
$
|
5,669
|
|
|
$
|
5,626
|
|
|
—
|
|
|
9
|
%
|
Investment
securities
|
|
452
|
|
|
431
|
|
|
431
|
|
|
433
|
|
|
416
|
|
|
5
|
%
|
|
9
|
|
Other
|
|
51
|
|
|
40
|
|
|
29
|
|
|
26
|
|
|
28
|
|
|
28
|
|
|
82
|
|
Total interest
income
|
|
6,637
|
|
|
6,604
|
|
|
6,420
|
|
|
6,128
|
|
|
6,070
|
|
|
—
|
|
|
9
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
539
|
|
|
457
|
|
|
410
|
|
|
382
|
|
|
353
|
|
|
18
|
|
|
53
|
|
Securitized debt
obligations
|
|
107
|
|
|
91
|
|
|
85
|
|
|
82
|
|
|
69
|
|
|
18
|
|
|
55
|
|
Senior and
subordinated notes
|
|
251
|
|
|
209
|
|
|
194
|
|
|
179
|
|
|
149
|
|
|
20
|
|
|
68
|
|
Other
borrowings
|
|
22
|
|
|
34
|
|
|
31
|
|
|
12
|
|
|
25
|
|
|
(35)
|
|
|
(12)
|
|
Total interest
expense
|
|
919
|
|
|
791
|
|
|
720
|
|
|
655
|
|
|
596
|
|
|
16
|
|
|
54
|
|
Net interest
income
|
|
5,718
|
|
|
5,813
|
|
|
5,700
|
|
|
5,473
|
|
|
5,474
|
|
|
(2)
|
|
|
4
|
|
Provision for credit
losses
|
|
1,674
|
|
|
1,926
|
|
|
1,833
|
|
|
1,800
|
|
|
1,992
|
|
|
(13)
|
|
|
(16)
|
|
Net interest income
after provision for credit losses
|
|
4,044
|
|
|
3,887
|
|
|
3,867
|
|
|
3,673
|
|
|
3,482
|
|
|
4
|
|
|
16
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interchange fees,
net
|
|
643
|
|
|
665
|
|
|
662
|
|
|
676
|
|
|
570
|
|
|
(3)
|
|
|
13
|
|
Service charges and
other customer-related fees
|
|
432
|
|
|
394
|
|
|
414
|
|
|
418
|
|
|
371
|
|
|
10
|
|
|
16
|
|
Net securities gains
(losses)
|
|
8
|
|
|
1
|
|
|
68
|
|
|
(4)
|
|
|
—
|
|
|
**
|
|
**
|
Other
|
|
108
|
|
|
140
|
|
|
141
|
|
|
141
|
|
|
120
|
|
|
(23)
|
|
|
(10)
|
|
Total non-interest
income
|
|
1,191
|
|
|
1,200
|
|
|
1,285
|
|
|
1,231
|
|
|
1,061
|
|
|
(1)
|
|
|
12
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
associate benefits
|
|
1,520
|
|
|
1,521
|
|
|
1,524
|
|
|
1,383
|
|
|
1,471
|
|
|
—
|
|
|
3
|
|
Occupancy and
equipment
|
|
490
|
|
|
523
|
|
|
471
|
|
|
474
|
|
|
471
|
|
|
(6)
|
|
|
4
|
|
Marketing
|
|
414
|
|
|
460
|
|
|
379
|
|
|
435
|
|
|
396
|
|
|
(10)
|
|
|
5
|
|
Professional
services
|
|
210
|
|
|
274
|
|
|
297
|
|
|
279
|
|
|
247
|
|
|
(23)
|
|
|
(15)
|
|
Communications and
data processing
|
|
306
|
|
|
306
|
|
|
294
|
|
|
289
|
|
|
288
|
|
|
—
|
|
|
6
|
|
Amortization of
intangibles
|
|
44
|
|
|
61
|
|
|
61
|
|
|
61
|
|
|
62
|
|
|
(28)
|
|
|
(29)
|
|
Other
|
|
589
|
|
|
634
|
|
|
541
|
|
|
493
|
|
|
499
|
|
|
(7)
|
|
|
18
|
|
Total non-interest
expense
|
|
3,573
|
|
|
3,779
|
|
|
3,567
|
|
|
3,414
|
|
|
3,434
|
|
|
(5)
|
|
|
4
|
|
Income from
continuing operations before income taxes
|
|
1,662
|
|
|
1,308
|
|
|
1,585
|
|
|
1,490
|
|
|
1,109
|
|
|
27
|
|
|
50
|
|
Income tax
provision
|
|
319
|
|
|
2,170
|
|
|
448
|
|
|
443
|
|
|
314
|
|
|
(85)
|
|
|
2
|
|
Income (loss) from
continuing operations, net of tax
|
|
1,343
|
|
|
(862)
|
|
|
1,137
|
|
|
1,047
|
|
|
795
|
|
|
**
|
|
69
|
|
Income (loss) from
discontinued operations, net of tax
|
|
3
|
|
|
(109)
|
|
|
(30)
|
|
|
(11)
|
|
|
15
|
|
|
**
|
|
(80)
|
|
Net income
(loss)
|
|
1,346
|
|
|
(971)
|
|
|
1,107
|
|
|
1,036
|
|
|
810
|
|
|
**
|
|
66
|
|
Dividends and
undistributed earnings allocated to participating
securities(2)
|
|
(10)
|
|
|
(1)
|
|
|
(8)
|
|
|
(8)
|
|
|
(5)
|
|
|
**
|
|
100
|
|
Preferred stock
dividends
|
|
(52)
|
|
|
(80)
|
|
|
(52)
|
|
|
(80)
|
|
|
(53)
|
|
|
(35)
|
|
|
(2)
|
|
Net income (loss)
available to common stockholders
|
|
$
|
1,284
|
|
|
$
|
(1,052)
|
|
|
$
|
1,047
|
|
|
$
|
948
|
|
|
$
|
752
|
|
|
**
|
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
(Dollars in
millions, except per share data and as noted)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Basic earnings per
common share:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
|
2.63
|
|
|
$
|
(1.95)
|
|
|
$
|
2.22
|
|
|
$
|
1.98
|
|
|
$
|
1.53
|
|
|
**
|
|
72
|
%
|
Income (loss) from
discontinued operations
|
|
0.01
|
|
|
(0.22)
|
|
|
(0.06)
|
|
|
(0.02)
|
|
|
0.03
|
|
|
**
|
|
(67)
|
|
Net income (loss) per
basic common share
|
|
$
|
2.64
|
|
|
$
|
(2.17)
|
|
|
$
|
2.16
|
|
|
$
|
1.96
|
|
|
$
|
1.56
|
|
|
**
|
|
69
|
|
Diluted earnings
per common share:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
|
2.61
|
|
|
$
|
(1.95)
|
|
|
$
|
2.20
|
|
|
$
|
1.96
|
|
|
$
|
1.51
|
|
|
**
|
|
73
|
|
Income (loss) from
discontinued operations
|
|
0.01
|
|
|
(0.22)
|
|
|
(0.06)
|
|
|
(0.02)
|
|
|
0.03
|
|
|
**
|
|
(67)
|
|
Net income (loss) per
diluted common share
|
|
$
|
2.62
|
|
|
$
|
(2.17)
|
|
|
$
|
2.14
|
|
|
$
|
1.94
|
|
|
$
|
1.54
|
|
|
**
|
|
70
|
|
Weighted-average
common shares outstanding (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic common
shares
|
|
486.9
|
|
|
485.7
|
|
|
484.9
|
|
|
484.0
|
|
|
482.3
|
|
|
—
|
|
|
1
|
%
|
Diluted common
shares
|
|
490.8
|
|
|
485.7
|
|
|
489.0
|
|
|
488.1
|
|
|
487.9
|
|
|
1
|
%
|
|
1
|
|
Dividends declared
and paid per common share
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
—
|
|
|
—
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 4:
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
(Dollars in
millions)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
4,220
|
|
|
$
|
4,458
|
|
|
$
|
4,154
|
|
|
$
|
3,352
|
|
|
$
|
3,489
|
|
|
(5)
|
%
|
|
21
|
%
|
Interest-bearing
deposits and other short-term investments
|
|
9,788
|
|
|
9,582
|
|
|
4,330
|
|
|
3,363
|
|
|
5,826
|
|
|
2
|
|
|
68
|
|
Total cash and cash
equivalents
|
|
14,008
|
|
|
14,040
|
|
|
8,484
|
|
|
6,715
|
|
|
9,315
|
|
|
—
|
|
|
50
|
|
Restricted cash for
securitization investors
|
|
309
|
|
|
312
|
|
|
304
|
|
|
300
|
|
|
486
|
|
|
(1)
|
|
|
(36)
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available
for sale, at fair value
|
|
47,155
|
|
|
37,655
|
|
|
39,742
|
|
|
41,120
|
|
|
41,260
|
|
|
25
|
|
|
14
|
|
Securities held to
maturity, at carrying value
|
|
23,075
|
|
|
28,984
|
|
|
28,650
|
|
|
27,720
|
|
|
26,170
|
|
|
(20)
|
|
|
(12)
|
|
Total investment
securities
|
|
70,230
|
|
|
66,639
|
|
|
68,392
|
|
|
68,840
|
|
|
67,430
|
|
|
5
|
|
|
4
|
|
Loans held for
investment:(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecuritized loans
held for investment
|
|
213,313
|
|
|
218,806
|
|
|
217,659
|
|
|
214,864
|
|
|
211,038
|
|
|
(3)
|
|
|
1
|
|
Loans held in
consolidated trusts
|
|
34,943
|
|
|
35,667
|
|
|
34,763
|
|
|
29,438
|
|
|
29,550
|
|
|
(2)
|
|
|
18
|
|
Total loans held for
investment
|
|
248,256
|
|
|
254,473
|
|
|
252,422
|
|
|
244,302
|
|
|
240,588
|
|
|
(2)
|
|
|
3
|
|
Allowance for loan
and lease losses
|
|
(7,567)
|
|
|
(7,502)
|
|
|
(7,418)
|
|
|
(7,170)
|
|
|
(6,984)
|
|
|
1
|
|
|
8
|
|
Net loans held for
investment
|
|
240,689
|
|
|
246,971
|
|
|
245,004
|
|
|
237,132
|
|
|
233,604
|
|
|
(3)
|
|
|
3
|
|
Loans held for sale,
at lower of cost or fair value
|
|
1,498
|
|
|
971
|
|
|
1,566
|
|
|
777
|
|
|
735
|
|
|
54
|
|
|
104
|
|
Premises and
equipment, net
|
|
4,055
|
|
|
4,033
|
|
|
3,955
|
|
|
3,825
|
|
|
3,727
|
|
|
1
|
|
|
9
|
|
Interest
receivable
|
|
1,496
|
|
|
1,536
|
|
|
1,426
|
|
|
1,346
|
|
|
1,368
|
|
|
(3)
|
|
|
9
|
|
Goodwill
|
|
14,536
|
|
|
14,533
|
|
|
14,532
|
|
|
14,524
|
|
|
14,521
|
|
|
—
|
|
|
—
|
|
Other
assets
|
|
16,036
|
|
|
16,658
|
|
|
17,739
|
|
|
17,134
|
|
|
17,363
|
|
|
(4)
|
|
|
(8)
|
|
Total
assets
|
|
$
|
362,857
|
|
|
$
|
365,693
|
|
|
$
|
361,402
|
|
|
$
|
350,593
|
|
|
$
|
348,549
|
|
|
(1)
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
(Dollars in
millions)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
payable
|
|
$
|
353
|
|
|
$
|
413
|
|
|
$
|
301
|
|
|
$
|
376
|
|
|
$
|
260
|
|
|
(15)
|
%
|
|
36
|
%
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
|
26,176
|
|
|
26,404
|
|
|
26,106
|
|
|
25,953
|
|
|
26,364
|
|
|
(1)
|
|
|
(1)
|
|
Interest-bearing
deposits
|
|
224,671
|
|
|
217,298
|
|
|
212,956
|
|
|
213,810
|
|
|
214,818
|
|
|
3
|
|
|
5
|
|
Total
deposits
|
|
250,847
|
|
|
243,702
|
|
|
239,062
|
|
|
239,763
|
|
|
241,182
|
|
|
3
|
|
|
4
|
|
Securitized debt
obligations
|
|
18,665
|
|
|
20,010
|
|
|
17,087
|
|
|
18,358
|
|
|
18,528
|
|
|
(7)
|
|
|
1
|
|
Other
debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds
purchased and securities loaned or sold under agreements to
repurchase
|
|
656
|
|
|
576
|
|
|
767
|
|
|
958
|
|
|
1,046
|
|
|
14
|
|
|
(37)
|
|
Senior and
subordinated notes
|
|
31,051
|
|
|
30,755
|
|
|
28,420
|
|
|
28,478
|
|
|
26,405
|
|
|
1
|
|
|
18
|
|
Other
borrowings
|
|
321
|
|
|
8,940
|
|
|
13,184
|
|
|
2,160
|
|
|
2,460
|
|
|
(96)
|
|
|
(87)
|
|
Total other
debt
|
|
32,028
|
|
|
40,271
|
|
|
42,371
|
|
|
31,596
|
|
|
29,911
|
|
|
(20)
|
|
|
7
|
|
Other
liabilities
|
|
11,761
|
|
|
12,567
|
|
|
12,427
|
|
|
11,363
|
|
|
10,628
|
|
|
(6)
|
|
|
11
|
|
Total
liabilities
|
|
313,654
|
|
|
316,963
|
|
|
311,248
|
|
|
301,456
|
|
|
300,509
|
|
|
(1)
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
—
|
|
|
—
|
|
Common
stock
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
Additional paid-in
capital, net
|
|
31,779
|
|
|
31,656
|
|
|
31,526
|
|
|
31,413
|
|
|
31,326
|
|
|
—
|
|
|
1
|
|
Retained
earnings
|
|
31,996
|
|
|
30,700
|
|
|
31,946
|
|
|
31,086
|
|
|
30,326
|
|
|
4
|
|
|
6
|
|
Accumulated other
comprehensive loss
|
|
(1,599)
|
|
|
(926)
|
|
|
(622)
|
|
|
(683)
|
|
|
(934)
|
|
|
73
|
|
|
71
|
|
Treasury stock, at
cost
|
|
(12,980)
|
|
|
(12,707)
|
|
|
(12,703)
|
|
|
(12,686)
|
|
|
(12,685)
|
|
|
2
|
|
|
2
|
|
Total
stockholders' equity
|
|
49,203
|
|
|
48,730
|
|
|
50,154
|
|
|
49,137
|
|
|
48,040
|
|
|
1
|
|
|
2
|
|
Total liabilities
and stockholders' equity
|
|
$
|
362,857
|
|
|
$
|
365,693
|
|
|
$
|
361,402
|
|
|
$
|
350,593
|
|
|
$
|
348,549
|
|
|
(1)
|
|
|
4
|
|
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 $335 million in Q1 2018, $377 million in Q4 2017, $356
million in Q3 2017, $313 million in Q2 2017 and $321 million in Q1
2017 for the estimated uncollectible amount of billed finance
charges and fees and related losses.
|
(2)
|
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. We also provide adjusted diluted earnings per
share, which is a non-GAAP measure. See "Table 15: Calculation of
Regulatory Capital Measures and Reconciliation of Non-GAAP
Measures" for additional information on our non-GAAP
measures.
|
(3)
|
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:
Calculation of Regulatory Capital Measures and Reconciliation of
Non-GAAP Measures" for additional information on non-GAAP
measures.
|
(4)
|
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:
|
|
|
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
(Dollars in
millions)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
PCI
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Period-end unpaid
principal balance
|
|
$
|
10,542
|
|
|
$
|
11,399
|
|
|
$
|
12,658
|
|
|
$
|
13,599
|
|
|
$
|
14,838
|
|
|
Period-end loans held
for investment
|
|
9,935
|
|
|
10,775
|
|
|
11,985
|
|
|
12,895
|
|
|
14,102
|
|
|
Average loans held
for investment
|
|
10,286
|
|
|
11,060
|
|
|
12,270
|
|
|
13,305
|
|
|
14,433
|
|
|
|
(5)
|
Total net revenue
margin is calculated based on annualized total net revenue for the
period divided by average interest-earning assets for the
period.
|
(6)
|
Net interest margin
is calculated based on annualized net interest income for the
period divided by average interest-earning assets for the
period.
|
(7)
|
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: Calculation of Regulatory Capital Measures and
Reconciliation of Non-GAAP Measures" for additional information on
non-GAAP measures.
|
(8)
|
Return on average
common equity is 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.
|
(9)
|
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: Calculation of Regulatory Capital Measures and Reconciliation
of Non-GAAP Measures" for additional information on non-GAAP
measures.
|
(10)
|
Efficiency ratio is
calculated based on total non-interest expense for the period
divided by total net revenue for the period. We also provide an
adjusted efficiency ratio, which is a non-GAAP measure. See "Table
15: Calculation of Regulatory Capital Measures and Reconciliation
of Non-GAAP Measures" for additional information on our non-GAAP
measures.
|
(11)
|
Net charge-off rate
is calculated based on annualized net charge-offs for the period
divided by average loans held for investment for the
period.
|
(12)
|
Capital ratios as of
the end of Q1 2018 are preliminary and therefore subject to change.
See "Table 15: Calculation of Regulatory Capital Measures and
Reconciliation of Non-GAAP Measures" for information on the
calculation of each of these ratios.
|
(13)
|
TCE ratio is a
non-GAAP measure calculated based on TCE divided by tangible
assets. See "Table 15: Calculation of Regulatory Capital Measures
and Reconciliation of Non-GAAP 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
|
|
|
|
2018
Q1
|
|
2017
Q4
|
|
2017
Q1
|
|
|
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, except as noted)
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
loans held for sale
|
|
$
|
250,906
|
|
|
$
|
6,134
|
|
|
9.78
|
%
|
|
$
|
254,080
|
|
|
$
|
6,133
|
|
|
9.66
|
%
|
|
$
|
242,249
|
|
|
$
|
5,626
|
|
|
9.29
|
%
|
Investment
securities
|
|
69,576
|
|
|
452
|
|
|
2.60
|
|
|
68,992
|
|
|
431
|
|
|
2.50
|
|
|
68,418
|
|
|
416
|
|
|
2.43
|
|
Cash equivalents and
other
|
|
9,701
|
|
|
51
|
|
|
2.10
|
|
|
7,670
|
|
|
40
|
|
|
2.09
|
|
|
7,691
|
|
|
28
|
|
|
1.46
|
|
Total
interest-earning assets
|
|
$
|
330,183
|
|
|
$
|
6,637
|
|
|
8.04
|
|
|
$
|
330,742
|
|
|
$
|
6,604
|
|
|
7.99
|
|
|
$
|
318,358
|
|
|
$
|
6,070
|
|
|
7.63
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
$
|
219,670
|
|
|
$
|
539
|
|
|
0.98
|
|
|
$
|
215,258
|
|
|
$
|
457
|
|
|
0.85
|
|
|
$
|
212,973
|
|
|
$
|
353
|
|
|
0.66
|
|
Securitized debt
obligations
|
|
19,698
|
|
|
107
|
|
|
2.17
|
|
|
19,751
|
|
|
91
|
|
|
1.84
|
|
|
17,176
|
|
|
69
|
|
|
1.61
|
|
Senior and
subordinated notes
|
|
30,430
|
|
|
251
|
|
|
3.30
|
|
|
30,020
|
|
|
209
|
|
|
2.78
|
|
|
24,804
|
|
|
149
|
|
|
2.40
|
|
Other borrowings and
liabilities
|
|
6,849
|
|
|
22
|
|
|
1.28
|
|
|
10,355
|
|
|
34
|
|
|
1.31
|
|
|
12,356
|
|
|
25
|
|
|
0.81
|
|
Total
interest-bearing liabilities
|
|
$
|
276,647
|
|
|
$
|
919
|
|
|
1.33
|
|
|
$
|
275,384
|
|
|
$
|
791
|
|
|
1.15
|
|
|
$
|
267,309
|
|
|
$
|
596
|
|
|
0.89
|
|
Net interest
income/spread
|
|
|
|
$
|
5,718
|
|
|
6.71
|
|
|
|
|
$
|
5,813
|
|
|
6.84
|
|
|
|
|
$
|
5,474
|
|
|
6.74
|
|
Impact of
non-interest-bearing funding
|
|
|
|
|
|
0.22
|
|
|
|
|
|
|
0.19
|
|
|
|
|
|
|
0.14
|
|
Net interest
margin
|
|
|
|
|
|
6.93
|
%
|
|
|
|
|
|
7.03
|
%
|
|
|
|
|
|
6.88
|
%
|
__________
|
(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. In the first
quarter of 2018, we adopted Accounting Standard Update No. 2017-12,
Derivatives and Hedging (Topic 815): Targeted Improvements to
Accounting for Hedging Activities. As a result, interest income
and interest expense amounts shown above for Q1 2018 include $1
million and $30 million, respectively, related to hedge
ineffectiveness that was previously included in other non-interest
income.
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 7: Loan
Information and Performance Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
(Dollars in
millions, except as noted)
|
|
2018
Q1
|
|
2017
Q4
|
|
2017
Q3
|
|
2017
Q2
|
|
2017
Q1
|
|
2017
Q4
|
|
2017
Q1
|
Loans Held for
Investment (Period-End)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
credit card
|
|
$
|
98,535
|
|
|
$
|
105,293
|
|
|
$
|
99,981
|
|
|
$
|
92,866
|
|
|
$
|
91,092
|
|
|
(6)
|
%
|
|
8
|
%
|
International card businesses
|
|
9,041
|
|
|
9,469
|
|
|
9,149
|
|
|
8,724
|
|
|
8,121
|
|
|
(5)
|
|
|
11
|
|
Total credit
card
|
|
107,576
|
|
|
114,762
|
|
|
109,130
|
|
|
101,590
|
|
|
99,213
|
|
|
(6)
|
|
|
8
|
|
Consumer
banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
|
|
54,811
|
|
|
53,991
|
|
|
53,290
|
|
|
51,765
|
|
|
49,771
|
|
|
2
|
|
|
10
|
|
Home
loan
|
|
16,630
|
|
|
17,633
|
|
|
18,820
|
|
|
19,724
|
|
|
20,738
|
|
|
(6)
|
|
|
(20)
|
|
Retail
banking
|
|
3,233
|
|
|
3,454
|
|
|
3,454
|
|
|
3,484
|
|
|
3,473
|
|
|
(6)
|
|
|
(7)
|
|
Total consumer
banking
|
|
74,674
|
|
|
75,078
|
|
|
75,564
|
|
|
74,973
|
|
|
73,982
|
|
|
(1)
|
|
|
1
|
|
Commercial
banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and multifamily real estate
|
|
27,360
|
|
|
26,150
|
|
|
27,944
|
|
|
27,428
|
|
|
27,218
|
|
|
5
|
|
|
1
|
|
Commercial and industrial
|
|
38,208
|
|
|
38,025
|
|
|
39,306
|
|
|
39,801
|
|
|
39,638
|
|
|
—
|
|
|
(4)
|
|
Total commercial
lending
|
|
65,568
|
|
|
64,175
|
|
|
67,250
|
|
|
67,229
|
|
|
66,856
|
|
|
2
|
|
|
(2)
|
|
Small-ticket commercial real estate
|
|
385
|
|
|
400
|
|
|
420
|
|
|
443
|
|
|
464
|
|
|
(4)
|
|
|
(17)
|
|
Total commercial
banking
|
|
65,953
|
|
|
64,575
|
|
|
67,670
|
|
|
67,672
|
|
|
67,320
|
|
|
2
|
|
|
(2)
|
|
Other
loans
|
|
53
|
|
|
58
|
|
|
58
|
|
|
67
|
|
|
73
|
|
|
(9)
|
|
|
(27)
|
|
Total loans held for
investment
|
|
$
|
248,256
|
|
|
$
|
254,473
|
|
|
$
|
252,422
|
|
|
$
|
244,302
|
|
|
$
|
240,588
|
|
|
(2)
|
|
|
3
|
|
Loans Held for
Investment (Average)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
credit card
|
|
$
|
100,450
|
|
|
$
|
101,087
|
|
|
$
|
93,729
|
|
|
$
|
91,769
|
|
|
$
|
93,034
|
|
|
(1)
|
%
|
|
8
|
%
|
International card businesses
|
|
9,052
|
|
|
8,942
|
|
|
8,816
|
|
|
8,274
|
|
|
8,135
|
|
|
1
|
|
|
11
|
|
Total credit
card
|
|
109,502
|
|
|
110,029
|
|
|
102,545
|
|
|
100,043
|
|
|
101,169
|
|
|
—
|
|
|
8
|
|
Consumer
banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
|
|
54,344
|
|
|
53,747
|
|
|
52,615
|
|
|
50,803
|
|
|
48,673
|
|
|
1
|
|
|
12
|
|
Home
loan
|
|
17,224
|
|
|
18,109
|
|
|
19,302
|
|
|
20,203
|
|
|
21,149
|
|
|
(5)
|
|
|
(19)
|
|
Retail
banking
|
|
3,429
|
|
|
3,433
|
|
|
3,446
|
|
|
3,463
|
|
|
3,509
|
|
|
—
|
|
|
(2)
|
|
Total consumer
banking
|
|
74,997
|
|
|
75,289
|
|
|
75,363
|
|
|
74,469
|
|
|
73,331
|
|
|
—
|
|
|
2
|
|
Commercial
banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and multifamily real estate
|
|
26,542
|
|
|
27,770
|
|
|
27,703
|
|
|
27,401
|
|
|
26,587
|
|
|
(4)
|
|
|
—
|
|
Commercial and industrial
|
|
38,246
|
|
|
39,020
|
|
|
39,723
|
|
|
39,815
|
|
|
39,877
|
|
|
(2)
|
|
|
(4)
|
|
Total commercial
lending
|
|
64,788
|
|
|
66,790
|
|
|
67,426
|
|
|
67,216
|
|
|
66,464
|
|
|
(3)
|
|
|
(3)
|
|
Small-ticket commercial real estate
|
|
393
|
|
|
410
|
|
|
433
|
|
|
453
|
|
|
474
|
|
|
(4)
|
|
|
(17)
|
|
Total commercial
banking
|
|
65,181
|
|
|
67,200
|
|
|
67,859
|
|
|
67,669
|
|
|
66,938
|
|
|
(3)
|
|
|
(3)
|
|
Other
loans
|
|
46
|
|
|
48
|
|
|
55
|
|
|
60
|
|
|
67
|
|
|
(4)
|
|
|
(31)
|
|
Total average loans
held for investment
|
|
$
|
249,726
|
|
|
$
|
252,566
|
|
|
$
|
245,822
|
|
|
$
|
242,241
|
|
|
$
|
241,505
|
|
|
(1)
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
|
|
2018
Q1
|
|
2017
Q4
|
|
2017
Q3
|
|
2017
Q2
|
|
2017
Q1
|
|
2017
Q4
|
|
2017
Q1
|
Net Charge-Off
(Recovery) Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
credit card
|
|
|
5.26
|
%
|
|
|
5.08
|
%
|
|
|
4.64
|
%
|
|
|
5.11
|
%
|
|
|
5.14
|
%
|
|
18
|
bps
|
|
12
|
bps
|
International card businesses
|
|
|
2.49
|
|
|
|
3.92
|
|
|
|
3.08
|
|
|
|
4.08
|
|
|
|
3.69
|
|
|
(143)
|
|
|
(120)
|
|
Total credit
card
|
|
|
5.03
|
|
|
|
4.99
|
|
|
|
4.51
|
|
|
|
5.02
|
|
|
|
5.02
|
|
|
4
|
|
|
1
|
|
Consumer
banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
|
|
|
1.53
|
|
|
|
2.12
|
|
|
|
1.96
|
|
|
|
1.70
|
|
|
|
1.64
|
|
|
(59)
|
|
|
(11)
|
|
Home
loan
|
|
|
(0.03)
|
|
|
|
0.23
|
|
|
|
0.02
|
|
|
|
0.04
|
|
|
|
0.03
|
|
|
(26)
|
|
|
(6)
|
|
Retail
banking
|
|
|
1.89
|
|
|
|
1.94
|
|
|
|
2.10
|
|
|
|
1.71
|
|
|
|
1.92
|
|
|
(5)
|
|
|
(3)
|
|
Total consumer
banking
|
|
|
1.19
|
|
|
|
1.66
|
|
|
|
1.47
|
|
|
|
1.25
|
|
|
|
1.19
|
|
|
(47)
|
|
|
—
|
|
Commercial
banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and multifamily real estate
|
|
|
—
|
|
|
|
(0.01)
|
|
|
|
(0.01)
|
|
|
|
0.03
|
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Commercial and industrial
|
|
|
0.20
|
|
|
|
1.47
|
|
|
|
1.64
|
|
|
|
1.34
|
|
|
|
0.22
|
|
|
(127)
|
|
|
(2)
|
|
Total commercial
lending
|
|
|
0.12
|
|
|
|
0.86
|
|
|
|
0.97
|
|
|
|
0.81
|
|
|
|
0.13
|
|
|
(74)
|
|
|
(1)
|
|
Small-ticket commercial real estate
|
|
|
(0.18)
|
|
|
|
(0.05)
|
|
|
|
0.12
|
|
|
|
(0.22)
|
|
|
|
1.05
|
|
|
(13)
|
|
|
(123)
|
|
Total commercial
banking
|
|
|
0.11
|
|
|
|
0.85
|
|
|
|
0.96
|
|
|
|
0.80
|
|
|
|
0.14
|
|
|
(74)
|
|
|
(3)
|
|
Total net
charge-offs
|
|
|
2.59
|
|
|
|
2.89
|
|
|
|
2.61
|
|
|
|
2.67
|
|
|
|
2.50
|
|
|
(30)
|
|
|
9
|
|
30+ Day Performing
Delinquency Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
credit card
|
|
|
3.57
|
%
|
|
|
4.01
|
%
|
|
|
3.94
|
%
|
|
|
3.63
|
%
|
|
|
3.71
|
%
|
|
(44)
|
bps
|
|
(14)
|
bps
|
International card businesses
|
|
|
3.62
|
|
|
|
3.64
|
|
|
|
3.54
|
|
|
|
3.28
|
|
|
|
3.39
|
|
|
(2)
|
|
|
23
|
|
Total credit
card
|
|
|
3.58
|
|
|
|
3.98
|
|
|
|
3.91
|
|
|
|
3.60
|
|
|
|
3.68
|
|
|
(40)
|
|
|
(10)
|
|
Consumer
banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
|
|
|
5.15
|
|
|
|
6.51
|
|
|
|
5.71
|
|
|
|
5.40
|
|
|
|
5.03
|
|
|
(136)
|
|
|
12
|
|
Home
loan
|
|
|
0.20
|
|
|
|
0.20
|
|
|
|
0.17
|
|
|
|
0.14
|
|
|
|
0.15
|
|
|
—
|
|
|
5
|
|
Retail
banking
|
|
|
0.75
|
|
|
|
0.76
|
|
|
|
0.73
|
|
|
|
0.54
|
|
|
|
0.59
|
|
|
(1)
|
|
|
16
|
|
Total consumer
banking
|
|
|
3.86
|
|
|
|
4.76
|
|
|
|
4.10
|
|
|
|
3.79
|
|
|
|
3.45
|
|
|
(90)
|
|
|
41
|
|
Nonperforming
Loans and Nonperforming Assets
Rates(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International card businesses
|
|
|
0.25
|
%
|
|
|
0.25
|
%
|
|
|
0.28
|
%
|
|
|
0.37
|
%
|
|
|
0.47
|
%
|
|
—
|
|
|
(22)
|
bps
|
Total credit
card
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.03
|
|
|
|
0.04
|
|
|
—
|
|
|
(2)
|
|
Consumer
banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
|
|
|
0.50
|
|
|
|
0.70
|
|
|
|
0.65
|
|
|
|
0.53
|
|
|
|
0.36
|
|
|
(20)
|
bps
|
|
14
|
|
Home
loan
|
|
|
0.86
|
|
|
|
1.00
|
|
|
|
0.84
|
|
|
|
1.31
|
|
|
|
1.27
|
|
|
(14)
|
|
|
(41)
|
|
Retail
banking
|
|
|
1.04
|
|
|
|
1.00
|
|
|
|
0.97
|
|
|
|
0.96
|
|
|
|
0.82
|
|
|
4
|
|
|
22
|
|
Total consumer
banking
|
|
|
0.61
|
|
|
|
0.78
|
|
|
|
0.71
|
|
|
|
0.75
|
|
|
|
0.64
|
|
|
(17)
|
|
|
(3)
|
|
Commercial
banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and multifamily real estate
|
|
|
0.01
|
|
|
|
0.15
|
|
|
|
0.23
|
|
|
|
0.13
|
|
|
|
0.13
|
|
|
(14)
|
|
|
(12)
|
|
Commercial and industrial
|
|
|
0.78
|
|
|
|
0.63
|
|
|
|
1.82
|
|
|
|
1.62
|
|
|
|
2.02
|
|
|
15
|
|
|
(124)
|
|
Total commercial
lending
|
|
|
0.46
|
|
|
|
0.43
|
|
|
|
1.16
|
|
|
|
1.01
|
|
|
|
1.25
|
|
|
3
|
|
|
(79)
|
|
Small-ticket commercial real estate
|
|
|
1.46
|
|
|
|
1.65
|
|
|
|
1.59
|
|
|
|
1.89
|
|
|
|
1.65
|
|
|
(19)
|
|
|
(19)
|
|
Total commercial
banking
|
|
|
0.47
|
|
|
|
0.44
|
|
|
|
1.16
|
|
|
|
1.01
|
|
|
|
1.25
|
|
|
3
|
|
|
(78)
|
|
Total nonperforming
loans
|
|
|
0.32
|
|
|
|
0.35
|
|
|
|
0.54
|
|
|
|
0.53
|
|
|
|
0.57
|
|
|
(3)
|
|
|
(25)
|
|
Total nonperforming
assets
|
|
|
0.35
|
|
|
|
0.41
|
|
|
|
0.60
|
|
|
|
0.60
|
|
|
|
0.66
|
|
|
(6)
|
|
|
(31)
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 8: Allowance
for Loan and Lease Losses and Reserve for Unfunded Lending
Commitments Activity
|
|
|
|
Three Months Ended
March 31, 2018
|
|
|
Credit
Card
|
|
Consumer
Banking
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
Domestic
Card
|
|
International
Card
Businesses
|
|
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, 2017
|
|
$
|
5,273
|
|
|
$
|
375
|
|
|
$
|
5,648
|
|
|
$
|
1,119
|
|
|
$
|
58
|
|
|
$
|
65
|
|
|
$
|
1,242
|
|
|
$
|
611
|
|
|
$
|
1
|
|
|
$
|
7,502
|
|
Charge-offs
|
|
(1,697)
|
|
|
(128)
|
|
|
(1,825)
|
|
|
(410)
|
|
|
—
|
|
|
(21)
|
|
|
(431)
|
|
|
(21)
|
|
|
1
|
|
|
(2,276)
|
|
Recoveries
|
|
376
|
|
|
72
|
|
|
448
|
|
|
202
|
|
|
1
|
|
|
5
|
|
|
208
|
|
|
2
|
|
|
—
|
|
|
658
|
|
Net
charge-offs
|
|
(1,321)
|
|
|
(56)
|
|
|
(1,377)
|
|
|
(208)
|
|
|
1
|
|
|
(16)
|
|
|
(223)
|
|
|
(19)
|
|
|
1
|
|
|
(1,618)
|
|
Provision (benefit)
for loan and lease losses
|
|
1,380
|
|
|
76
|
|
|
1,456
|
|
|
226
|
|
|
(6)
|
|
|
14
|
|
|
234
|
|
|
(5)
|
|
|
(1)
|
|
|
1,684
|
|
Allowance build
(release) for loan and lease losses
|
|
59
|
|
|
20
|
|
|
79
|
|
|
18
|
|
|
(5)
|
|
|
(2)
|
|
|
11
|
|
|
(24)
|
|
|
—
|
|
|
66
|
|
Other
changes(4)
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Balance as of March
31, 2018
|
|
5,332
|
|
|
394
|
|
|
5,726
|
|
|
1,137
|
|
|
53
|
|
|
63
|
|
|
1,253
|
|
|
587
|
|
|
1
|
|
|
7,567
|
|
Reserve for
unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December 31, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
117
|
|
|
—
|
|
|
124
|
|
Benefit for losses on
unfunded lending commitments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
(9)
|
|
|
—
|
|
|
(10)
|
|
Balance as of March
31, 2018
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|
108
|
|
|
—
|
|
|
114
|
|
Combined allowance
and reserve as of March 31, 2018
|
|
$
|
5,332
|
|
|
$
|
394
|
|
|
$
|
5,726
|
|
|
$
|
1,137
|
|
|
$
|
53
|
|
|
$
|
69
|
|
|
$
|
1,259
|
|
|
$
|
695
|
|
|
$
|
1
|
|
|
$
|
7,681
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 9: Financial
Summary—Business Segment Results
|
|
|
|
Three Months Ended
March 31, 2018
|
(Dollars in
millions)
|
|
Credit
Card
|
|
Consumer
Banking
|
|
Commercial
Banking(6)(7)
|
|
Other(6)(7)
|
|
Total
|
Net interest
income
|
|
$
|
3,558
|
|
|
$
|
1,615
|
|
|
$
|
536
|
|
|
$
|
9
|
|
|
$
|
5,718
|
|
Non-interest
income
|
|
857
|
|
|
174
|
|
|
187
|
|
|
(27)
|
|
|
1,191
|
|
Total net revenue
(loss)
|
|
4,415
|
|
|
1,789
|
|
|
723
|
|
|
(18)
|
|
|
6,909
|
|
Provision (benefit)
for credit losses
|
|
1,456
|
|
|
233
|
|
|
(14)
|
|
|
(1)
|
|
|
1,674
|
|
Non-interest
expense
|
|
2,039
|
|
|
1,000
|
|
|
403
|
|
|
131
|
|
|
3,573
|
|
Income (loss) from
continuing operations before income taxes
|
|
920
|
|
|
556
|
|
|
334
|
|
|
(148)
|
|
|
1,662
|
|
Income tax provision
(benefit)
|
|
213
|
|
|
130
|
|
|
78
|
|
|
(102)
|
|
|
319
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
|
707
|
|
|
$
|
426
|
|
|
$
|
256
|
|
|
$
|
(46)
|
|
|
$
|
1,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2017
|
(Dollars in
millions)
|
|
Credit
Card
|
|
Consumer
Banking
|
|
Commercial
Banking(6)
|
|
Other(5)(6)
|
|
Total
|
Net interest
income
|
|
$
|
3,568
|
|
|
$
|
1,636
|
|
|
$
|
566
|
|
|
$
|
43
|
|
|
$
|
5,813
|
|
Non-interest
income
|
|
847
|
|
|
179
|
|
|
188
|
|
|
(14)
|
|
|
1,200
|
|
Total net
revenue
|
|
4,415
|
|
|
1,815
|
|
|
754
|
|
|
29
|
|
|
7,013
|
|
Provision for credit
losses
|
|
1,486
|
|
|
340
|
|
|
100
|
|
|
—
|
|
|
1,926
|
|
Non-interest
expense
|
|
2,108
|
|
|
1,081
|
|
|
437
|
|
|
153
|
|
|
3,779
|
|
Income (loss) from
continuing operations before income taxes
|
|
821
|
|
|
394
|
|
|
217
|
|
|
(124)
|
|
|
1,308
|
|
Income tax
provision
|
|
297
|
|
|
144
|
|
|
79
|
|
|
1,650
|
|
|
2,170
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
|
524
|
|
|
$
|
250
|
|
|
$
|
138
|
|
|
$
|
(1,774)
|
|
|
$
|
(862)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017
|
(Dollars in
millions)
|
|
Credit
Card
|
|
Consumer
Banking
|
|
Commercial
Banking(6)
|
|
Other(6)
|
|
Total
|
Net interest
income
|
|
$
|
3,346
|
|
|
$
|
1,517
|
|
|
$
|
566
|
|
|
$
|
45
|
|
|
$
|
5,474
|
|
Non-interest
income
|
|
738
|
|
|
195
|
|
|
158
|
|
|
(30)
|
|
|
1,061
|
|
Total net
revenue
|
|
4,084
|
|
|
1,712
|
|
|
724
|
|
|
15
|
|
|
6,535
|
|
Provision (benefit)
for credit losses
|
|
1,717
|
|
|
279
|
|
|
(2)
|
|
|
(2)
|
|
|
1,992
|
|
Non-interest
expense
|
|
1,929
|
|
|
1,042
|
|
|
391
|
|
|
72
|
|
|
3,434
|
|
Income (loss) from
continuing operations before income taxes
|
|
438
|
|
|
391
|
|
|
335
|
|
|
(55)
|
|
|
1,109
|
|
Income tax provision
(benefit)
|
|
167
|
|
|
143
|
|
|
122
|
|
|
(118)
|
|
|
314
|
|
Income from
continuing operations, net of tax
|
|
$
|
271
|
|
|
$
|
248
|
|
|
$
|
213
|
|
|
$
|
63
|
|
|
$
|
795
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 10:
Financial & Statistical Summary—Credit Card
Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
(Dollars in
millions, except as noted)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Credit
Card
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
3,558
|
|
|
$
|
3,568
|
|
|
$
|
3,440
|
|
|
$
|
3,294
|
|
|
$
|
3,346
|
|
|
—
|
|
|
6
|
%
|
Non-interest
income
|
|
857
|
|
|
847
|
|
|
865
|
|
|
875
|
|
|
738
|
|
|
1
|
%
|
|
16
|
|
Total net
revenue
|
|
4,415
|
|
|
4,415
|
|
|
4,305
|
|
|
4,169
|
|
|
4,084
|
|
|
—
|
|
|
8
|
|
Provision for credit
losses
|
|
1,456
|
|
|
1,486
|
|
|
1,466
|
|
|
1,397
|
|
|
1,717
|
|
|
(2)
|
|
|
(15)
|
|
Non-interest
expense
|
|
2,039
|
|
|
2,108
|
|
|
1,961
|
|
|
1,918
|
|
|
1,929
|
|
|
(3)
|
|
|
6
|
|
Income from
continuing operations before income taxes
|
|
920
|
|
|
821
|
|
|
878
|
|
|
854
|
|
|
438
|
|
|
12
|
|
|
110
|
|
Income tax
provision
|
|
213
|
|
|
297
|
|
|
306
|
|
|
301
|
|
|
167
|
|
|
(28)
|
|
|
28
|
|
Income from
continuing operations, net of tax
|
|
$
|
707
|
|
|
$
|
524
|
|
|
$
|
572
|
|
|
$
|
553
|
|
|
$
|
271
|
|
|
35
|
|
|
161
|
|
Selected
performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans held
for investment
|
|
$
|
107,576
|
|
|
$
|
114,762
|
|
|
$
|
109,130
|
|
|
$
|
101,590
|
|
|
$
|
99,213
|
|
|
(6)
|
|
|
8
|
|
Average loans held
for investment
|
|
109,502
|
|
|
110,029
|
|
|
102,545
|
|
|
100,043
|
|
|
101,169
|
|
|
—
|
|
|
8
|
|
Average yield on
loans held for investment(8)
|
|
15.24
|
%
|
|
15.13
|
%
|
|
15.58
|
%
|
|
15.14
|
%
|
|
14.99
|
%
|
|
11
|
bps
|
|
25
|
bps
|
Total net revenue
margin(9)
|
|
16.13
|
|
|
16.05
|
|
|
16.79
|
|
|
16.67
|
|
|
16.14
|
|
|
8
|
|
|
(1)
|
|
Net charge-off
rate
|
|
5.03
|
|
|
4.99
|
|
|
4.51
|
|
|
5.02
|
|
|
5.02
|
|
|
4
|
|
|
1
|
|
30+ day performing
delinquency rate
|
|
3.58
|
|
|
3.98
|
|
|
3.91
|
|
|
3.60
|
|
|
3.68
|
|
|
(40)
|
|
|
(10)
|
|
30+ day delinquency
rate
|
|
3.59
|
|
|
3.99
|
|
|
3.92
|
|
|
3.62
|
|
|
3.71
|
|
|
(40)
|
|
|
(12)
|
|
Nonperforming loan
rate(1)
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.03
|
|
|
0.04
|
|
|
—
|
|
|
(2)
|
|
Purchase
volume(10)
|
|
$
|
86,545
|
|
|
$
|
95,659
|
|
|
$
|
84,505
|
|
|
$
|
83,079
|
|
|
$
|
73,197
|
|
|
(10)
|
%
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
(Dollars in
millions, except as noted)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Domestic
Card
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
3,229
|
|
|
$
|
3,268
|
|
|
$
|
3,132
|
|
|
$
|
3,011
|
|
|
$
|
3,093
|
|
|
(1)
|
%
|
|
4
|
%
|
Non-interest
income
|
|
774
|
|
|
781
|
|
|
787
|
|
|
802
|
|
|
699
|
|
|
(1)
|
|
|
11
|
|
Total net
revenue
|
|
4,003
|
|
|
4,049
|
|
|
3,919
|
|
|
3,813
|
|
|
3,792
|
|
|
(1)
|
|
|
6
|
|
Provision for credit
losses
|
|
1,380
|
|
|
1,402
|
|
|
1,417
|
|
|
1,327
|
|
|
1,637
|
|
|
(2)
|
|
|
(16)
|
|
Non-interest
expense
|
|
1,832
|
|
|
1,880
|
|
|
1,754
|
|
|
1,727
|
|
|
1,717
|
|
|
(3)
|
|
|
7
|
|
Income from
continuing operations before income taxes
|
|
791
|
|
|
767
|
|
|
748
|
|
|
759
|
|
|
438
|
|
|
3
|
|
|
81
|
|
Income tax
provision
|
|
184
|
|
|
280
|
|
|
273
|
|
|
277
|
|
|
160
|
|
|
(34)
|
|
|
15
|
|
Income from
continuing operations, net of tax
|
|
$
|
607
|
|
|
$
|
487
|
|
|
$
|
475
|
|
|
$
|
482
|
|
|
$
|
278
|
|
|
25
|
|
|
118
|
|
Selected
performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans held
for investment
|
|
$
|
98,535
|
|
|
$
|
105,293
|
|
|
$
|
99,981
|
|
|
$
|
92,866
|
|
|
$
|
91,092
|
|
|
(6)
|
|
|
8
|
|
Average loans held
for investment
|
|
100,450
|
|
|
101,087
|
|
|
93,729
|
|
|
91,769
|
|
|
93,034
|
|
|
(1)
|
|
|
8
|
|
Average yield on
loans held for investment(8)
|
|
15.10
|
%
|
|
15.08
|
%
|
|
15.51
|
%
|
|
15.07
|
%
|
|
15.01
|
%
|
|
2
|
bps
|
|
9
|
bps
|
Total net revenue
margin(9)
|
|
15.94
|
|
|
16.03
|
|
|
16.72
|
|
|
16.62
|
|
|
16.30
|
|
|
(9)
|
|
|
(36)
|
|
Net charge-off
rate
|
|
5.26
|
|
|
5.08
|
|
|
4.64
|
|
|
5.11
|
|
|
5.14
|
|
|
18
|
|
|
12
|
|
30+ day delinquency
rate
|
|
3.57
|
|
|
4.01
|
|
|
3.94
|
|
|
3.63
|
|
|
3.71
|
|
|
(44)
|
|
|
(14)
|
|
Purchase
volume(10)
|
|
$
|
79,194
|
|
|
$
|
87,287
|
|
|
$
|
76,806
|
|
|
$
|
75,781
|
|
|
$
|
66,950
|
|
|
(9)
|
%
|
|
18
|
%
|
Refreshed FICO
scores:(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater than
660
|
|
66
|
%
|
|
66
|
%
|
|
65
|
%
|
|
64
|
%
|
|
63
|
%
|
|
—
|
|
|
3
|
|
660 or
below
|
|
34
|
|
|
34
|
|
|
35
|
|
|
36
|
|
|
37
|
|
|
—
|
|
|
(3)
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 11:
Financial & Statistical Summary—Consumer Banking
Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
(Dollars in
millions, except as noted)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Consumer
Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
1,615
|
|
|
$
|
1,636
|
|
|
$
|
1,649
|
|
|
$
|
1,578
|
|
|
$
|
1,517
|
|
|
(1)
|
%
|
|
6
|
%
|
Non-interest
income
|
|
174
|
|
|
179
|
|
|
192
|
|
|
183
|
|
|
195
|
|
|
(3)
|
|
|
(11)
|
|
Total net
revenue
|
|
1,789
|
|
|
1,815
|
|
|
1,841
|
|
|
1,761
|
|
|
1,712
|
|
|
(1)
|
|
|
4
|
|
Provision for credit
losses
|
|
233
|
|
|
340
|
|
|
293
|
|
|
268
|
|
|
279
|
|
|
(31)
|
|
|
(16)
|
|
Non-interest
expense
|
|
1,000
|
|
|
1,081
|
|
|
1,051
|
|
|
1,059
|
|
|
1,042
|
|
|
(7)
|
|
|
(4)
|
|
Income from
continuing operations before income taxes
|
|
556
|
|
|
394
|
|
|
497
|
|
|
434
|
|
|
391
|
|
|
41
|
|
|
42
|
|
Income tax
provision
|
|
130
|
|
|
144
|
|
|
181
|
|
|
158
|
|
|
143
|
|
|
(10)
|
|
|
(9)
|
|
Income from
continuing operations, net of tax
|
|
$
|
426
|
|
|
$
|
250
|
|
|
$
|
316
|
|
|
$
|
276
|
|
|
$
|
248
|
|
|
70
|
|
|
72
|
|
Selected
performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans held
for investment
|
|
$
|
74,674
|
|
|
$
|
75,078
|
|
|
$
|
75,564
|
|
|
$
|
74,973
|
|
|
$
|
73,982
|
|
|
(1)
|
|
|
1
|
|
Average loans held
for investment
|
|
74,997
|
|
|
75,289
|
|
|
75,363
|
|
|
74,469
|
|
|
73,331
|
|
|
—
|
|
|
2
|
|
Average yield on
loans held for investment(8)
|
|
6.86
|
%
|
|
6.84
|
%
|
|
6.79
|
%
|
|
6.56
|
%
|
|
6.48
|
%
|
|
2
|
bps
|
|
38
|
bps
|
Auto loan
originations
|
|
$
|
6,707
|
|
|
$
|
6,215
|
|
|
$
|
7,043
|
|
|
$
|
7,453
|
|
|
$
|
7,025
|
|
|
8
|
%
|
|
(5)
|
%
|
Period-end
deposits
|
|
193,073
|
|
|
185,842
|
|
|
184,719
|
|
|
186,607
|
|
|
188,216
|
|
|
4
|
|
|
3
|
|
Average
deposits
|
|
187,785
|
|
|
184,799
|
|
|
185,072
|
|
|
186,989
|
|
|
183,936
|
|
|
2
|
|
|
2
|
|
Average deposits
interest rate
|
|
0.80
|
%
|
|
0.69
|
%
|
|
0.62
|
%
|
|
0.59
|
%
|
|
0.57
|
%
|
|
11
|
bps
|
|
23
|
bps
|
Net charge-off
rate
|
|
1.19
|
|
|
1.66
|
|
|
1.47
|
|
|
1.25
|
|
|
1.19
|
|
|
(47)
|
|
|
—
|
|
30+ day performing
delinquency rate
|
|
3.86
|
|
|
4.76
|
|
|
4.10
|
|
|
3.79
|
|
|
3.45
|
|
|
(90)
|
|
|
41
|
|
30+ day delinquency
rate
|
|
4.27
|
|
|
5.34
|
|
|
4.61
|
|
|
4.33
|
|
|
3.93
|
|
|
(107)
|
|
|
34
|
|
Nonperforming loan
rate(1)
|
|
0.61
|
|
|
0.78
|
|
|
0.71
|
|
|
0.75
|
|
|
0.64
|
|
|
(17)
|
|
|
(3)
|
|
Nonperforming asset
rate(2)
|
|
0.70
|
|
|
0.91
|
|
|
0.88
|
|
|
0.96
|
|
|
0.92
|
|
|
(21)
|
|
|
(22)
|
|
Auto—At
origination FICO scores:(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater than
660
|
|
51
|
%
|
|
51
|
%
|
|
51
|
%
|
|
51
|
%
|
|
51
|
%
|
|
—
|
|
|
—
|
|
621-660
|
|
18
|
|
|
18
|
|
|
18
|
|
|
18
|
|
|
18
|
|
|
—
|
|
|
—
|
|
620 or
below
|
|
31
|
|
|
31
|
|
|
31
|
|
|
31
|
|
|
31
|
|
|
—
|
|
|
—
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 12:
Financial & Statistical Summary—Commercial Banking
Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
(Dollars in
millions, except as noted)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Commercial
Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
536
|
|
|
$
|
566
|
|
|
$
|
560
|
|
|
$
|
569
|
|
|
$
|
566
|
|
|
(5)
|
%
|
|
(5)
|
%
|
Non-interest
income
|
|
187
|
|
|
188
|
|
|
179
|
|
|
183
|
|
|
158
|
|
|
(1)
|
|
|
18
|
|
Total net
revenue(6)(7)
|
|
723
|
|
|
754
|
|
|
739
|
|
|
752
|
|
|
724
|
|
|
(4)
|
|
|
—
|
|
Provision (benefit)
for credit losses
|
|
(14)
|
|
|
100
|
|
|
63
|
|
|
140
|
|
|
(2)
|
|
|
**
|
|
**
|
Non-interest
expense
|
|
403
|
|
|
437
|
|
|
394
|
|
|
381
|
|
|
391
|
|
|
(8)
|
|
|
3
|
|
Income from
continuing operations before income taxes
|
|
334
|
|
|
217
|
|
|
282
|
|
|
231
|
|
|
335
|
|
|
54
|
|
|
—
|
|
Income tax
provision
|
|
78
|
|
|
79
|
|
|
103
|
|
|
85
|
|
|
122
|
|
|
(1)
|
|
|
(36)
|
|
Income from
continuing operations, net of tax
|
|
$
|
256
|
|
|
$
|
138
|
|
|
$
|
179
|
|
|
$
|
146
|
|
|
$
|
213
|
|
|
86
|
|
|
20
|
|
Selected
performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans held
for investment
|
|
$
|
65,953
|
|
|
$
|
64,575
|
|
|
$
|
67,670
|
|
|
$
|
67,672
|
|
|
$
|
67,320
|
|
|
2
|
|
|
(2)
|
|
Average loans held
for investment
|
|
65,181
|
|
|
67,200
|
|
|
67,859
|
|
|
67,669
|
|
|
66,938
|
|
|
(3)
|
|
|
(3)
|
|
Average yield on
loans held for investment(6)(8)
|
|
4.16
|
%
|
|
4.03
|
%
|
|
3.98
|
%
|
|
3.81
|
%
|
|
3.65
|
%
|
|
13
|
bps
|
|
51
|
bps
|
Period-end
deposits
|
|
$
|
34,449
|
|
|
$
|
33,938
|
|
|
$
|
32,783
|
|
|
$
|
33,153
|
|
|
$
|
33,735
|
|
|
2
|
%
|
|
2
|
%
|
Average
deposits
|
|
34,057
|
|
|
34,117
|
|
|
33,197
|
|
|
34,263
|
|
|
34,219
|
|
|
—
|
|
|
—
|
|
Average deposits
interest rate
|
|
0.52
|
%
|
|
0.46
|
%
|
|
0.42
|
%
|
|
0.36
|
%
|
|
0.31
|
%
|
|
6
|
bps
|
|
21
|
bps
|
Net charge-off
rate
|
|
0.11
|
|
|
0.85
|
|
|
0.96
|
|
|
0.80
|
|
|
0.14
|
|
|
(74)
|
|
|
(3)
|
|
Nonperforming loan
rate(1)
|
|
0.47
|
|
|
0.44
|
|
|
1.16
|
|
|
1.01
|
|
|
1.25
|
|
|
3
|
|
|
(78)
|
|
Nonperforming asset
rate(2)
|
|
0.49
|
|
|
0.52
|
|
|
1.22
|
|
|
1.04
|
|
|
1.27
|
|
|
(3)
|
|
|
(78)
|
|
Risk
category:(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncriticized
|
|
$
|
62,773
|
|
|
$
|
61,162
|
|
|
$
|
63,501
|
|
|
$
|
63,802
|
|
|
$
|
63,390
|
|
|
3
|
%
|
|
(1)
|
%
|
Criticized
performing
|
|
2,432
|
|
|
2,649
|
|
|
2,878
|
|
|
2,660
|
|
|
2,492
|
|
|
(8)
|
|
|
(2)
|
|
Criticized
nonperforming
|
|
309
|
|
|
284
|
|
|
788
|
|
|
686
|
|
|
844
|
|
|
9
|
|
|
(63)
|
|
PCI loans
|
|
439
|
|
|
480
|
|
|
503
|
|
|
524
|
|
|
594
|
|
|
(9)
|
|
|
(26)
|
|
Total commercial
loans
|
|
$
|
65,953
|
|
|
$
|
64,575
|
|
|
$
|
67,670
|
|
|
$
|
67,672
|
|
|
$
|
67,320
|
|
|
2
|
|
|
(2)
|
|
Risk category as a
percentage of period-end loans held for
investment:(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncriticized
|
|
95.1
|
%
|
|
94.7
|
%
|
|
93.8
|
%
|
|
94.3
|
%
|
|
94.2
|
%
|
|
40
|
bps
|
|
90
|
bps
|
Criticized
performing
|
|
3.7
|
|
|
4.1
|
|
|
4.3
|
|
|
3.9
|
|
|
3.7
|
|
|
(40)
|
|
|
—
|
|
Criticized
nonperforming
|
|
0.5
|
|
|
0.4
|
|
|
1.2
|
|
|
1.0
|
|
|
1.2
|
|
|
10
|
|
|
(70)
|
|
PCI loans
|
|
0.7
|
|
|
0.8
|
|
|
0.7
|
|
|
0.8
|
|
|
0.9
|
|
|
(10)
|
|
|
(20)
|
|
Total commercial
loans
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 13:
Financial & Statistical Summary—Other and Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Q1
vs.
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
(Dollars in
millions)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q1
|
Other(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
9
|
|
|
$
|
43
|
|
|
$
|
51
|
|
|
$
|
32
|
|
|
$
|
45
|
|
|
(79)
|
%
|
|
(80)
|
%
|
Non-interest
income
|
|
(27)
|
|
|
(14)
|
|
|
49
|
|
|
(10)
|
|
|
(30)
|
|
|
93
|
|
|
(10)
|
|
Total net revenue
(loss)(6)(7)
|
|
(18)
|
|
|
29
|
|
|
100
|
|
|
22
|
|
|
15
|
|
|
**
|
|
**
|
Provision (benefit)
for credit losses
|
|
(1)
|
|
|
—
|
|
|
11
|
|
|
(5)
|
|
|
(2)
|
|
|
**
|
|
(50)
|
|
Non-interest
expense(14)
|
|
131
|
|
|
153
|
|
|
161
|
|
|
56
|
|
|
72
|
|
|
(14)
|
|
|
82
|
|
Loss from continuing
operations before income taxes
|
|
(148)
|
|
|
(124)
|
|
|
(72)
|
|
|
(29)
|
|
|
(55)
|
|
|
19
|
|
|
169
|
|
Income tax provision
(benefit)
|
|
(102)
|
|
|
1,650
|
|
|
(142)
|
|
|
(101)
|
|
|
(118)
|
|
|
**
|
|
(14)
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
|
(46)
|
|
|
$
|
(1,774)
|
|
|
$
|
70
|
|
|
$
|
72
|
|
|
$
|
63
|
|
|
(97)
|
|
|
**
|
Selected
performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans held
for investment
|
|
$
|
53
|
|
|
$
|
58
|
|
|
$
|
58
|
|
|
$
|
67
|
|
|
$
|
73
|
|
|
(9)
|
|
|
(27)
|
|
Average loans held
for investment
|
|
46
|
|
|
48
|
|
|
55
|
|
|
60
|
|
|
67
|
|
|
(4)
|
|
|
(31)
|
|
Period-end
deposits
|
|
23,325
|
|
|
23,922
|
|
|
21,560
|
|
|
20,003
|
|
|
19,231
|
|
|
(2)
|
|
|
21
|
|
Average
deposits
|
|
23,428
|
|
|
22,646
|
|
|
20,574
|
|
|
19,298
|
|
|
20,395
|
|
|
3
|
|
|
15
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
5,718
|
|
|
$
|
5,813
|
|
|
$
|
5,700
|
|
|
$
|
5,473
|
|
|
$
|
5,474
|
|
|
(2)
|
%
|
|
4
|
%
|
Non-interest
income
|
|
1,191
|
|
|
1,200
|
|
|
1,285
|
|
|
1,231
|
|
|
1,061
|
|
|
(1)
|
|
|
12
|
|
Total net
revenue
|
|
6,909
|
|
|
7,013
|
|
|
6,985
|
|
|
6,704
|
|
|
6,535
|
|
|
(1)
|
|
|
6
|
|
Provision for credit
losses
|
|
1,674
|
|
|
1,926
|
|
|
1,833
|
|
|
1,800
|
|
|
1,992
|
|
|
(13)
|
|
|
(16)
|
|
Non-interest
expense
|
|
3,573
|
|
|
3,779
|
|
|
3,567
|
|
|
3,414
|
|
|
3,434
|
|
|
(5)
|
|
|
4
|
|
Income from
continuing operations before income taxes
|
|
1,662
|
|
|
1,308
|
|
|
1,585
|
|
|
1,490
|
|
|
1,109
|
|
|
27
|
|
|
50
|
|
Income tax
provision
|
|
319
|
|
|
2,170
|
|
|
448
|
|
|
443
|
|
|
314
|
|
|
(85)
|
|
|
2
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
|
1,343
|
|
|
$
|
(862)
|
|
|
$
|
1,137
|
|
|
$
|
1,047
|
|
|
$
|
795
|
|
|
**
|
|
69
|
|
Selected
performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans held
for investment
|
|
$
|
248,256
|
|
|
$
|
254,473
|
|
|
$
|
252,422
|
|
|
$
|
244,302
|
|
|
$
|
240,588
|
|
|
(2)
|
|
|
3
|
|
Average loans held
for investment
|
|
249,726
|
|
|
252,566
|
|
|
245,822
|
|
|
242,241
|
|
|
241,505
|
|
|
(1)
|
|
|
3
|
|
Period-end
deposits
|
|
250,847
|
|
|
243,702
|
|
|
239,062
|
|
|
239,763
|
|
|
241,182
|
|
|
3
|
|
|
4
|
|
Average
deposits
|
|
245,270
|
|
|
241,562
|
|
|
238,843
|
|
|
240,550
|
|
|
238,550
|
|
|
2
|
|
|
3
|
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 14: Notes to
Loan, Allowance and Business Segment Disclosures (Tables
7—13)
|
|
|
(1)
|
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.
|
(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 where applicable.
|
(5)
|
Charges for the
impacts of the Tax Act of $1.77 billion are reflected in the Other
category of our business segment results for Q4 2017. This amount
is a reasonable estimate as of December 31, 2017, which may be
adjusted during the measurement period ending no later than
December 2018. The Tax Act refers to the Act to provide for
reconciliation pursuant to titles II and V of the concurrent
resolution on budget for fiscal year 2018 enacted on December 22,
2017.
|
(6)
|
Some of our
commercial investments generate tax-exempt income, tax credits or
other tax benefits. Accordingly, we present our Commercial Banking
revenue and yields on a taxable-equivalent basis, calculated using
the federal statutory tax rate (21% for the first quarter of 2018
and 35% for all periods in 2017) and state taxes where applicable,
with offsetting reductions to the Other category.
|
(7)
|
In the first quarter
of 2018, we made a change in how revenue is measured in our
Commercial Banking business to include the tax benefits of losses
on certain investments. These tax benefits are included in revenue
on a taxable-equivalent basis within our Commercial Banking
business, with an offsetting reduction to the Other category. In
addition, all revenue presented on a taxable-equivalent basis in
our Commercial Banking business was impacted by the reduction of
the federal tax rate set forth in the Tax Act. The net impact of
the measurement change and the reduction of the federal tax rate
was a decrease of $28 million in revenue in our Commercial Banking
business in the first quarter of 2018, with an offsetting impact to
the Other category.
|
(8)
|
Average yield on
loans held for investment is 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.
|
(9)
|
Total net revenue
margin is 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.
|
(10)
|
Purchase volume
consists of purchase transactions, net of returns, for the period,
and excludes cash advance and balance transfer
transactions.
|
(11)
|
Percentages represent
period-end loans held for investment in each credit score category.
Domestic card 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.
|
(12)
|
Percentages represent
period-end loans held for investment in each credit score category.
Auto 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.
|
(13)
|
Criticized exposures
correspond to the "Special Mention," "Substandard" and "Doubtful"
asset categories defined by bank regulatory authorities.
|
(14)
|
Includes charges
incurred as a result of restructuring activities.
|
**
|
Not
meaningful.
|
CAPITAL ONE
FINANCIAL CORPORATION (COF)
|
Table 15:
Calculation of Regulatory Capital Measures and Reconciliation of
Non-GAAP Measures(1)
|
|
|
|
Basel III
Standardized Approach
|
(Dollars in
millions, except as noted)
|
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
Regulatory Capital
Metrics
|
|
|
|
|
|
|
|
|
|
|
Common equity
excluding AOCI
|
|
$
|
46,441
|
|
|
$
|
45,296
|
|
|
$
|
46,415
|
|
|
$
|
45,459
|
|
|
$
|
44,614
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
AOCI(2)(3)
|
|
(1,599)
|
|
|
(808)
|
|
|
(538)
|
|
|
(593)
|
|
|
(807)
|
|
Goodwill, net of
related deferred tax liabilities
|
|
(14,379)
|
|
|
(14,380)
|
|
|
(14,300)
|
|
|
(14,299)
|
|
|
(14,302)
|
|
Intangible assets,
net of related deferred tax liabilities(3)
|
|
(371)
|
|
|
(330)
|
|
|
(372)
|
|
|
(419)
|
|
|
(465)
|
|
Other
|
|
620
|
|
|
258
|
|
|
93
|
|
|
78
|
|
|
121
|
|
Common equity Tier 1
capital
|
|
$
|
30,712
|
|
|
$
|
30,036
|
|
|
$
|
31,298
|
|
|
$
|
30,226
|
|
|
$
|
29,161
|
|
Tier 1
capital
|
|
$
|
35,073
|
|
|
$
|
34,396
|
|
|
$
|
35,657
|
|
|
$
|
34,585
|
|
|
$
|
33,519
|
|
Total
capital(4)
|
|
42,264
|
|
|
41,962
|
|
|
43,272
|
|
|
42,101
|
|
|
40,979
|
|
Risk-weighted
assets
|
|
291,352
|
|
|
292,225
|
|
|
292,041
|
|
|
283,231
|
|
|
279,302
|
|
Adjusted average
assets(5)
|
|
347,287
|
|
|
348,424
|
|
|
340,579
|
|
|
335,248
|
|
|
336,990
|
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1
capital(6)
|
|
10.5
|
%
|
|
10.3
|
%
|
|
10.7
|
%
|
|
10.7
|
%
|
|
10.4
|
%
|
Tier 1
capital(7)
|
|
12.0
|
|
|
11.8
|
|
|
12.2
|
|
|
12.2
|
|
|
12.0
|
|
Total
capital(8)
|
|
14.5
|
|
|
14.4
|
|
|
14.8
|
|
|
14.9
|
|
|
14.7
|
|
Tier 1
leverage(5)
|
|
10.1
|
|
|
9.9
|
|
|
10.5
|
|
|
10.3
|
|
|
9.9
|
|
Tangible common
equity ("TCE")(9)
|
|
8.6
|
|
|
8.3
|
|
|
8.8
|
|
|
8.8
|
|
|
8.5
|
|
Reconciliation of
Non-GAAP Measures
|
|
The following
non-GAAP measures consist of our adjusted results that we believe
help investors and users of our financial information understand
the effect of adjusting items on our selected reported results and
provide alternate measurements of our performance. The following
tables present reconciliations of these non-GAAP measures to the
applicable amounts measured in accordance with GAAP.
|
|
|
|
2018
|
|
2017
|
|
2017
|
|
|
Q1
|
|
Q4
|
|
Q1
|
(Dollars in
millions, except per share data and as noted)
|
|
Reported
Results
|
|
Adj.(10)
|
|
Adjusted
Results
|
|
Reported
Results
|
|
Adj.(10)
|
|
Adjusted
Results
|
|
Reported
Results
|
|
Adj.(10)
|
|
Adjusted
Results
|
Selected income
statement data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
5,718
|
|
|
—
|
|
|
$
|
5,718
|
|
|
$
|
5,813
|
|
|
$
|
11
|
|
|
$
|
5,824
|
|
|
$
|
5,474
|
|
|
$
|
33
|
|
|
$
|
5,507
|
|
Non-interest
income
|
|
1,191
|
|
|
$
|
2
|
|
|
1,193
|
|
|
1,200
|
|
|
9
|
|
|
1,209
|
|
|
1,061
|
|
|
37
|
|
|
1,098
|
|
Total net
revenue
|
|
6,909
|
|
|
2
|
|
|
6,911
|
|
|
7,013
|
|
|
20
|
|
|
7,033
|
|
|
6,535
|
|
|
70
|
|
|
6,605
|
|
Provision for credit
losses
|
|
1,674
|
|
|
—
|
|
|
1,674
|
|
|
1,926
|
|
|
—
|
|
|
1,926
|
|
|
1,992
|
|
|
—
|
|
|
1,992
|
|
Non-interest
expense
|
|
3,573
|
|
|
(17)
|
|
|
3,556
|
|
|
3,779
|
|
|
(87)
|
|
|
3,692
|
|
|
3,434
|
|
|
(29)
|
|
|
3,405
|
|
Income from
continuing operations before income taxes
|
|
1,662
|
|
|
19
|
|
|
1,681
|
|
|
1,308
|
|
|
107
|
|
|
1,415
|
|
|
1,109
|
|
|
99
|
|
|
1,208
|
|
Income tax provision
(benefit)
|
|
319
|
|
|
4
|
|
|
323
|
|
|
2,170
|
|
|
(1,742)
|
|
|
428
|
|
|
314
|
|
|
(1)
|
|
|
313
|
|
Income (loss) from
continuing operations, net of tax
|
|
1,343
|
|
|
15
|
|
|
1,358
|
|
|
(862)
|
|
|
1,849
|
|
|
987
|
|
|
795
|
|
|
100
|
|
|
895
|
|
Income (loss) from
discontinued operations, net of tax
|
|
3
|
|
|
—
|
|
|
3
|
|
|
(109)
|
|
|
—
|
|
|
(109)
|
|
|
15
|
|
|
—
|
|
|
15
|
|
Net income
(loss)
|
|
1,346
|
|
|
15
|
|
|
1,361
|
|
|
(971)
|
|
|
1,849
|
|
|
878
|
|
|
810
|
|
|
100
|
|
|
910
|
|
Dividends and
undistributed earnings allocated to participating
securities(11)
|
|
(10)
|
|
|
—
|
|
|
(10)
|
|
|
(1)
|
|
|
(5)
|
|
|
(6)
|
|
|
(5)
|
|
|
—
|
|
|
(5)
|
|
Preferred stock
dividends
|
|
(52)
|
|
|
—
|
|
|
(52)
|
|
|
(80)
|
|
|
—
|
|
|
(80)
|
|
|
(53)
|
|
|
—
|
|
|
(53)
|
|
Net income (loss)
available to common stockholders
|
|
$
|
1,284
|
|
|
$
|
15
|
|
|
$
|
1,299
|
|
|
$
|
(1,052)
|
|
|
$
|
1,844
|
|
|
$
|
792
|
|
|
$
|
752
|
|
|
$
|
100
|
|
|
$
|
852
|
|
Selected
performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS(11)
|
|
$
|
2.62
|
|
|
$
|
0.03
|
|
|
$
|
2.65
|
|
|
$
|
(2.17)
|
|
|
$
|
3.79
|
|
|
$
|
1.62
|
|
|
$
|
1.54
|
|
|
$
|
0.21
|
|
|
$
|
1.75
|
|
Efficiency
ratio
|
|
51.72
|
%
|
|
(27)
|
bps
|
|
51.45
|
%
|
|
53.89
|
%
|
|
(139)
|
bps
|
|
52.50
|
%
|
|
52.55
|
%
|
|
(100)
|
bps
|
|
51.55
|
%
|
Reconciliation of
Non-GAAP Measures
|
|
The following
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. We consider
these metrics to be key financial performance measures that
management uses in assessing capital adequacy and the level of
returns generated. While these non-GAAP measures are widely used by
investors, analysts and bank regulatory agencies to assess the
capital position of financial services companies, our measures may
not be comparable to similarly-titled measures reported by other
companies. The following tables present reconciliations of these
non-GAAP measures to the applicable amounts measured in accordance
with GAAP.
|
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
(Dollars in
millions)
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
Tangible Common
Equity (Period-End)
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
$
|
49,203
|
|
|
$
|
48,730
|
|
|
$
|
50,154
|
|
|
$
|
49,137
|
|
|
$
|
48,040
|
|
Goodwill and
intangible assets(12)
|
|
(15,063)
|
|
|
(15,106)
|
|
|
(15,249)
|
|
|
(15,301)
|
|
|
(15,360)
|
|
Noncumulative
perpetual preferred stock
|
|
(4,360)
|
|
|
(4,360)
|
|
|
(4,360)
|
|
|
(4,360)
|
|
|
(4,360)
|
|
Tangible common
equity
|
|
$
|
29,780
|
|
|
$
|
29,264
|
|
|
$
|
30,545
|
|
|
$
|
29,476
|
|
|
$
|
28,320
|
|
Tangible Common
Equity (Average)
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
$
|
49,031
|
|
|
$
|
50,710
|
|
|
$
|
50,176
|
|
|
$
|
49,005
|
|
|
$
|
48,193
|
|
Goodwill and
intangible assets(12)
|
|
(15,092)
|
|
|
(15,223)
|
|
|
(15,277)
|
|
|
(15,336)
|
|
|
(15,395)
|
|
Noncumulative
perpetual preferred stock
|
|
(4,360)
|
|
|
(4,360)
|
|
|
(4,360)
|
|
|
(4,360)
|
|
|
(4,360)
|
|
Tangible common
equity
|
|
$
|
29,579
|
|
|
$
|
31,127
|
|
|
$
|
30,539
|
|
|
$
|
29,309
|
|
|
$
|
28,438
|
|
Tangible Assets
(Period-End)
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
362,857
|
|
|
$
|
365,693
|
|
|
$
|
361,402
|
|
|
$
|
350,593
|
|
|
$
|
348,549
|
|
Goodwill and
intangible assets(12)
|
|
(15,063)
|
|
|
(15,106)
|
|
|
(15,249)
|
|
|
(15,301)
|
|
|
(15,360)
|
|
Tangible
assets
|
|
$
|
347,794
|
|
|
$
|
350,587
|
|
|
$
|
346,153
|
|
|
$
|
335,292
|
|
|
$
|
333,189
|
|
Tangible Assets
(Average)
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
362,049
|
|
|
$
|
363,045
|
|
|
$
|
355,191
|
|
|
$
|
349,891
|
|
|
$
|
351,641
|
|
Goodwill and
intangible assets(12)
|
|
(15,092)
|
|
|
(15,223)
|
|
|
(15,277)
|
|
|
(15,336)
|
|
|
(15,395)
|
|
Tangible
assets
|
|
$
|
346,957
|
|
|
$
|
347,822
|
|
|
$
|
339,914
|
|
|
$
|
334,555
|
|
|
$
|
336,246
|
|
|
|
__________
|
|
(1) Regulatory
capital metrics and capital ratios as of March 31, 2018 are
preliminary and therefore subject to change.
|
|
(2) Amounts presented are
net of tax.
|
(3) Amounts based on
transition provisions for regulatory capital deductions and
adjustments of 80% for 2017 and 100% for 2018.
|
(4) Total capital equals
the sum of Tier 1 capital and Tier 2 capital.
|
(5) Adjusted average
assets for the purpose of calculating our Tier 1 leverage ratio
represents total average assets adjusted for amounts that are
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.
|
(6) Common equity Tier 1
capital ratio is a regulatory capital measure calculated based on
common equity Tier 1 capital divided by risk-weighted
assets.
|
(7) Tier 1 capital ratio
is a regulatory capital measure calculated based on Tier 1 capital
divided by risk-weighted assets.
|
(8) Total capital ratio is
a regulatory capital measure calculated based on total capital
divided by risk-weighted assets.
|
(9) TCE ratio is a
non-GAAP measure calculated based on TCE divided by tangible
assets.
|
(10)
Adjustments for the following periods consist
of:
|
|
|
|
2018
|
|
2017
|
|
2017
|
(Dollars in
millions)
|
|
Q1
|
|
Q4
|
|
Q1
|
Restructuring
charges
|
|
$
|
19
|
|
|
$
|
76
|
|
|
—
|
|
Impacts of the Tax
Act
|
|
—
|
|
|
1,769
|
|
|
—
|
|
U.K. Payment
Protection Insurance customer refund reserve ("U.K. PPI
Reserve")
|
|
—
|
|
|
31
|
|
|
$
|
99
|
|
Total
|
|
19
|
|
|
1,876
|
|
|
99
|
|
Income tax provision
(benefit)
|
|
4
|
|
|
27
|
|
|
(1)
|
|
Net income
|
|
$
|
15
|
|
|
$
|
1,849
|
|
|
$
|
100
|
|
|
(11) 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.
|
(12) Includes
impact of related deferred taxes.
|
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SOURCE Capital One Financial Corporation