Capital One Reports Fourth Quarter 2016 Net Income of $791 million, or $1.45 per share

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Jan 24, 2017, 15:05 ET

MCLEAN, Va., Jan. 24, 2017 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2016 of $791 million, or $1.45 per diluted common share, compared to the third quarter of 2016 with net income of $1.0 billion, or $1.90 per diluted common share, and the fourth quarter of 2015 with net income of $920 million, or $1.58 per diluted common share.

"In 2016, Capital One posted a second consecutive year of double-digit growth in domestic card loans and purchase volume, as well as strong growth in auto and commercial loans," said Richard D. Fairbank, Chairman and Chief Executive Officer. "Assuming no substantial change in the broader credit and economic cycles, our strong growth over the last two years and actions to reduce share count put us in a position to deliver solid EPS growth in 2017."

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

Fourth Quarter 2016 Income Statement Summary:

Total net revenue increased 2 percent to $6.6 billion.
Total non-interest expense increased 9 percent to $3.7 billion:
- 46 percent increase in marketing.
- 4 percent increase in operating expenses.
Pre-provision earnings decreased 7 percent to $2.9 billion.
Provision for credit losses increased 10 percent to $1.8 billion:
- Net charge-offs of $1.5 billion.
- $263 million reserve build.
Net interest margin of 6.85 percent, up 6 basis points.
Efficiency ratio of 56.03 percent:
- Efficiency ratio excluding the U.K. PPI Reserve build of $44 million and acquired intangible and software assets impairment charge of $28 million was 55.12 percent⁽¹⁾.

Fourth Quarter 2016 Balance Sheet Summary:

Common equity Tier 1 capital ratio under Basel III Standardized Approach of 10.1 percent at December 31, 2016.
Period-end loans held for investment in the quarter increased $7.6 billion, or 3 percent, to $245.6 billion.
- Domestic Card period-end loans increased $6.2 billion, or 7 percent, to $97.1 billion.
- Consumer Banking period-end loans increased $769 million, or 1 percent, to $73.1 billion:
  - Auto period-end loans increased $1.6 billion, or 3 percent, to $47.9 billion.
  - Home loans period-end loans decreased $864 million, or 4 percent, to $21.6 billion, driven by planned run-off of acquired portfolios.
- Commercial Banking period-end loans increased $459 million, or 1 percent, to $66.9 billion.
Average loans held for investment in the quarter increased $4.2 billion, or 2 percent, to $240.0 billion.
- Domestic Card average loans increased $2.9 billion, or 3 percent, to $92.6 billion.
- Consumer Banking average loans increased $932 million, or 1 percent, to $72.7 billion:
  - Auto average loans increased $1.8 billion, or 4 percent, to $47.1 billion.
  - Home loans average loans decreased $868 million, or 4 percent, to $22.0 billion, driven by planned run-off of acquired portfolios.
- Commercial Banking average loans increased $481 million, or 1 percent, to $66.5 billion.
Period-end total deposits increased $10.8 billion, or 5 percent, to $236.8 billion, while average deposits increased $10.0 billion, or 4 percent, to $232.2 billion.
Interest-bearing deposits rate paid increased 2 basis points to 0.64 percent.

Fourth Quarter 2016 Notable Items:



	Pre-Tax		Diluted EPS
(Dollars in millions, except per share data)	Impact		Impact
Build in the U.K. Payment Protection Insurance customer refund reserve ("U.K. PPI Reserve")	$	44	$	0.09
Impairment charge associated with certain acquired intangible and software assets	28		0.04
Allowance build in our Auto business regarding the treatment of certain bankrupt accounts	62		0.08

All comparisons below are for the full year of 2016 compared with the full year of 2015 unless otherwise noted.

2016 Full Year Income Statement Summary:

Total net revenue increased 9 percent to $25.5 billion.
Total non-interest expense increased 4 percent to $13.6 billion:
- 4 percent increase in marketing.
- 5 percent increase in operating expenses, including approximately $160 million in bank optimization charges.
Pre-provision earnings increased 15 percent to $11.9 billion.
Provision for credit losses increased 42 percent to $6.5 billion.
Efficiency ratio of 53.17 percent:
Efficiency ratio excluding $161 million from builds in the U.K. PPI Reserve, the $28 million impairment charge associated with certain acquired intangible and software assets and the $24 million gain related to the exchange of our ownership interest in Visa Europe with Visa Inc., was 52.68 percent⁽¹⁾.

⁽¹⁾ The efficiency ratio excluding adjusting items is a non-GAAP measure that we believe helps investors and users of our financial information understand the effect of the adjusting items on our selected reported results and provides an alternate measurement of our performance. See Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to this non-GAAP measure.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on January 24, 2017 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 February 7, 2017 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 $236.8 billion in deposits and $357.0 billion in total assets as of December 31, 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
Fourth Quarter 2016⁽¹⁾⁽²⁾
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	17
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	18
	Table 13:	Financial & Statistical Summary—Other and Total	19
	Table 14:	Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)	20
Other
	Table 15:	Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures	21


__________
⁽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 Annual Report on Form 10-K for the period ended December 31, 2016 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 accounting principles generally accepted 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

											2016 Q4 vs				Year Ended December 31,
(Dollars in millions, except per share data and as noted)	2016		2016		2016		2016		2015		2016		2015						2016 vs
(Dollars in millions, except per share data and as noted)	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2016		2015		2015
Income Statement
Net interest income	$	5,447	$	5,277	$	5,093	$	5,056	$	4,961	3	%	10	%	$	20,873	$	18,834	11	%
Non-interest income	1,119		1,184		1,161		1,164		1,233		(5)		(9)		4,628		4,579		1
Total net revenue⁽¹⁾	6,566		6,461		6,254		6,220		6,194		2		6		25,501		23,413		9
Provision for credit losses	1,752		1,588		1,592		1,527		1,380		10		27		6,459		4,536		42
Non-interest expense:
Marketing	575		393		415		428		564		46		2		1,811		1,744		4
Amortization of intangibles	101		89		95		101		103		13		(2)		386		430		(10)
Operating expenses	3,003		2,879		2,785		2,694		2,813		4		7		11,361		10,822		5
Total non-interest expense	3,679		3,361		3,295		3,223		3,480		9		6		13,558		12,996		4
Income from continuing operations before income taxes	1,135		1,512		1,367		1,470		1,334		(25)		(15)		5,484		5,881		(7)
Income tax provision	342		496		424		452		426		(31)		(20)		1,714		1,869		(8)
Income from continuing operations, net of tax	793		1,016		943		1,018		908		(22)		(13)		3,770		4,012		(6)
Income (loss) from discontinued operations, net of tax⁽²⁾	(2)		(11)		(1)		(5)		12		(82)		**		(19)		38		**
Net income	791		1,005		942		1,013		920		(21)		(14)		3,751		4,050		(7)
Dividends and undistributed earnings allocated to participating securities⁽³⁾	(6)		(6)		(6)		(6)		(4)		—		50		(24)		(20)		20
Preferred stock dividends	(75)		(37)		(65)		(37)		(68)		103		10		(214)		(158)		35
Net income available to common stockholders	$	710	$	962	$	871	$	970	$	848	(26)		(16)		$	3,513	$	3,872	(9)
Common Share Statistics
Basic earnings per common share:⁽³⁾
Net income from continuing operations	$	1.47	$	1.94	$	1.70	$	1.86	$	1.58	(24)	%	(7)	%	$	7.00	$	7.08	(1)	%
Income (loss) from discontinued operations	—		(0.02)		—		(0.01)		0.02		**		**		(0.04)		0.07		**
Net income per basic common share	$	1.47	$	1.92	$	1.70	$	1.85	$	1.60	(23)		(8)		$	6.96	$	7.15	(3)
Diluted earnings per common share:⁽³⁾
Net income from continuing operations	$	1.45	$	1.92	$	1.69	$	1.85	$	1.56	(24)		(7)		$	6.93	$	7.00	(1)
Income (loss) from discontinued operations	—		(0.02)		—		(0.01)		0.02		**		**		(0.04)		0.07		**
Net income per diluted common share	$	1.45	$	1.90	$	1.69	$	1.84	$	1.58	(24)		(8)		$	6.89	$	7.07	(3)
Weighted-average common shares outstanding (in millions):
Basic	483.5		501.1		511.7		523.5		530.8		(4)		(9)		504.9		541.8		(7)
Diluted	489.2		505.9		516.5		528.0		536.3		(3)		(9)		509.8		548.0		(7)
Common shares outstanding (period-end, in millions)	480.2		489.2		505.9		514.5		527.3		(2)		(9)		480.2		527.3		(9)
Dividends paid per common share	$	0.40	$	0.40	$	0.40	$	0.40	$	0.40	—		—		$	1.60	$	1.50	7
Tangible book value per common share (period-end)⁽⁴⁾	57.76		59.00		57.84		55.94		53.65		(2)		8		57.76		53.65		8

											2016 Q4 vs				Year Ended December 31,
(Dollars in millions)	2016		2016		2016		2016		2015		2016		2015						2016 vs
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2016		2015		2015
Balance Sheet (Period-End)
Loans held for investment⁽⁵⁾	$	245,586	$	238,019	$	234,603	$	227,613	$	229,851	3	%	7	%	$	245,586	$	229,851	7	%
Interest-earning assets	321,807		313,431		307,163		298,348		302,007		3		7		321,807		302,007		7
Total assets	357,033		345,061		339,117		330,346		334,048		3		7		357,033		334,048		7
Interest-bearing deposits	211,266		200,416		195,635		196,597		191,874		5		10		211,266		191,874		10
Total deposits	236,768		225,981		221,059		221,779		217,721		5		9		236,768		217,721		9
Borrowings	60,460		59,820		59,181		50,497		59,115		1		2		60,460		59,115		2
Common equity	43,154		44,336		44,813		44,411		43,990		(3)		(2)		43,154		43,990		(2)
Total stockholders' equity	47,514		48,213		48,108		47,707		47,284		(1)		—		47,514		47,284		—
Balance Sheet (Average Balances)
Loans held for investment⁽⁵⁾	$	240,027	$	235,843	$	230,379	$	226,736	$	220,052	2	%	9	%	$	233,272	$	210,745	11	%
Interest-earning assets	317,853		310,987		302,764		299,456		292,054		2		9		307,796		282,581		9
Total assets	350,225		343,153		334,479		331,919		323,354		2		8		339,974		313,474		8
Interest-bearing deposits	206,464		196,913		195,641		194,125		189,885		5		9		198,304		185,677		7
Total deposits	232,204		222,251		221,146		219,180		215,899		4		8		223,714		210,989		6
Borrowings	58,624		60,708		54,359		53,761		48,850		(3)		20		56,878		45,420		25
Common equity	43,921		45,314		45,640		45,782		45,418		(3)		(3)		45,162		45,072		—
Total stockholders' equity	47,972		49,033		48,934		49,078		48,712		(2)		(2)		48,753		47,713		2

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Selected Metrics—Consolidated

																2016 Q4 vs				Year Ended December 31,
(Dollars in millions except as noted)	2016			2016			2016			2016			2015			2016		2015								2016 vs
(Dollars in millions except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2016			2015			2015
Performance Metrics
Net interest income growth (period over period)	3		%	4		%	1		%	2		%	4		%	**		**		11		%	6		%	**
Non-interest income growth (period over period)	(5)			2			—			(6)			8			**		**		1			2			**
Total net revenue growth (period over period)	2			3			1			—			5			**		**		9			5			**
Total net revenue margin⁽⁶⁾	8.26			8.31			8.26			8.31			8.48			(5)	bps	(22)	bps	8.29			8.29			—
Net interest margin⁽⁷⁾	6.85			6.79			6.73			6.75			6.79			6		6		6.78			6.66			12	bps
Return on average assets	0.91			1.18			1.13			1.23			1.12			(27)		(21)		1.11			1.28			(17)
Return on average tangible assets⁽⁸⁾	0.95			1.24			1.18			1.29			1.18			(29)		(23)		1.16			1.35			(19)
Return on average common equity⁽⁹⁾	6.48			8.59			7.64			8.52			7.36			(211)		(88)		7.82			8.51			(69)
Return on average tangible common equity⁽¹⁰⁾	10.00			13.06			11.61			12.94			11.11			(306)		(111)		11.93			12.87			(94)
Non-interest expense as a percentage of average loans held for investment	6.13			5.70			5.72			5.69			6.33			43		(20)		5.81			6.17			(36)
Efficiency ratio⁽¹¹⁾	56.03			52.02			52.69			51.82			56.18			401		(15)		53.17			55.51			(234)
Effective income tax rate for continuing operations	30.1			32.8			31.0			30.7			31.9			(270)		(180)		31.3			31.8			(50)
Employees (in thousands), period-end	47.3			46.5			46.1			45.8			45.4			2	%	4	%	47.3			45.4			4	%
Credit Quality Metrics
Allowance for loan and lease losses	$	6,503		$	6,258		$	5,881		$	5,416		$	5,130		4	%	27	%	$	6,503		$	5,130		27	%
Allowance as a percentage of loans held for investment	2.65		%	2.63		%	2.51		%	2.38		%	2.23		%	2	bps	42	bps	2.65		%	2.23		%	42	bps
Net charge-offs	$	1,489		$	1,240		$	1,155		$	1,178		$	1,078		20	%	38	%	$	5,062		$	3,695		37	%
Net charge-off rate⁽¹²⁾	2.48		%	2.10		%	2.01		%	2.08		%	1.96		%	38	bps	52	bps	2.17		%	1.75		%	42	bps
30+ day performing delinquency rate	2.93			2.71			2.47			2.33			2.69			22		24		2.93			2.69			24
30+ day delinquency rate	3.27			3.04			2.79			2.64			3.00			23		27		3.27			3.00			27
Capital Ratios⁽¹³⁾
Common equity Tier 1 capital	10.1		%	10.6		%	10.9		%	11.1		%	11.1		%	(50)	bps	(100)	bps	10.1		%	11.1		%	(100)	bps
Tier 1 capital	11.6			12.0			12.2			12.4			12.4			(40)		(80)		11.6			12.4			(80)
Total capital	14.3			14.7			14.4			14.6			14.6			(40)		(30)		14.3			14.6			(30)
Tier 1 leverage	9.9			10.1			10.2			10.2			10.6			(20)		(70)		9.9			10.6			(70)
Tangible common equity ("TCE")⁽¹⁴⁾	8.1			8.8			9.0			9.1			8.9			(70)		(80)		8.1			8.9			(80)

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3: Consolidated Statements of Income

	Three Months Ended						2016 Q4 vs				Year Ended December 31,
	2016		2016		2015		2016		2015						2016 vs
(Dollars in millions, except per share data and as noted)	Q4		Q3		Q4		Q3		Q4		2016		2015		2015
Interest income:
Loans, including loans held for sale	$	5,587	$	5,383	$	4,961	4	%	13	%	$	21,203	$	18,785	13	%
Investment securities	393		386		401		2		(2)		1,599		1,575		2
Other	29		25		22		16		32		89		99		(10)
Total interest income	6,009		5,794		5,384		4		12		22,891		20,459		12
Interest expense:
Deposits	332		306		277		8		20		1,213		1,091		11
Securitized debt obligations	65		56		43		16		51		216		151		43
Senior and subordinated notes	138		121		89		14		55		476		330		44
Other borrowings	27		34		14		(21)		93		113		53		113
Total interest expense	562		517		423		9		33		2,018		1,625		24
Net interest income	5,447		5,277		4,961		3		10		20,873		18,834		11
Provision for credit losses	1,752		1,588		1,380		10		27		6,459		4,536		42
Net interest income after provision for credit losses	3,695		3,689		3,581		—		3		14,414		14,298		1
Non-interest income:^(15)(16)
Service charges and other customer-related fees	412		417		463		(1)		(11)		1,646		1,856		(11)
Interchange fees, net	624		603		625		3		—		2,452		2,264		8
Net securities gains (losses)	(4)		1		(9)		**		(56)		(11)		(32)		(66)
Other	87		163		154		(47)		(44)		541		491		10
Total non-interest income	1,119		1,184		1,233		(5)		(9)		4,628		4,579		1
Non-interest expense:^(15)(16)
Salaries and associate benefits	1,336		1,317		1,215		1		10		5,202		4,975		5
Occupancy and equipment	522		499		511		5		2		1,944		1,829		6
Marketing	575		393		564		46		2		1,811		1,744		4
Professional services	312		257		307		21		2		1,075		1,120		(4)
Communications and data processing	297		291		289		2		3		1,169		1,055		11
Amortization of intangibles	101		89		103		13		(2)		386		430		(10)
Other	536		515		491		4		9		1,971		1,843		7
Total non-interest expense	3,679		3,361		3,480		9		6		13,558		12,996		4
Income from continuing operations before income taxes	1,135		1,512		1,334		(25)		(15)		5,484		5,881		(7)
Income tax provision	342		496		426		(31)		(20)		1,714		1,869		(8)
Income from continuing operations, net of tax	793		1,016		908		(22)		(13)		3,770		4,012		(6)
Income (loss) from discontinued operations, net of tax⁽²⁾	(2)		(11)		12		(82)		**		(19)		38		**
Net income	791		1,005		920		(21)		(14)		3,751		4,050		(7)
Dividends and undistributed earnings allocated to participating securities⁽³⁾	(6)		(6)		(4)		—		50		(24)		(20)		20
Preferred stock dividends	(75)		(37)		(68)		103		10		(214)		(158)		35
Net income available to common stockholders	$	710	$	962	$	848	(26)		(16)		$	3,513	$	3,872	(9)

	Three Months Ended						2016 Q4 vs				Year Ended December 31,
	2016		2016		2015		2016		2015						2016 vs
(Dollars in millions, except per share data and as noted)	Q4		Q3		Q4		Q3		Q4		2016		2015		2015
Basic earnings per common share:⁽³⁾
Net income from continuing operations	$	1.47	$	1.94	$	1.58	(24)	%	(7)	%	$	7.00	$	7.08	(1)	%
Income (loss) from discontinued operations	—		(0.02)		0.02		**		**		(0.04)		0.07		**
Net income per basic common share	$	1.47	$	1.92	$	1.60	(23)		(8)		$	6.96	$	7.15	(3)
Diluted earnings per common share:⁽³⁾
Net income from continuing operations	$	1.45	$	1.92	$	1.56	(24)		(7)		$	6.93	$	7.00	(1)
Income (loss) from discontinued operations	—		(0.02)		0.02		**		**		(0.04)		0.07		**
Net income per diluted common share	$	1.45	$	1.90	$	1.58	(24)		(8)		$	6.89	$	7.07	(3)
Weighted-average common shares outstanding (in millions):
Basic common shares	483.5		501.1		530.8		(4)		(9)		504.9		541.8		(7)
Diluted common shares	489.2		505.9		536.3		(3)		(9)		509.8		548.0		(7)
Dividends paid per common share	$	0.40	$	0.40	$	0.40	—		—		$	1.60	$	1.50	7

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets

											2016 Q4 vs
	2016		2016		2016		2016		2015		2016		2015
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3		Q4
Assets:
Cash and cash equivalents:
Cash and due from banks	$	4,185	$	3,350	$	3,253	$	3,241	$	3,407	25	%	23	%
Interest-bearing deposits and other short-term investments	5,791		5,744		3,896		1,994		4,616		1		25
Total cash and cash equivalents	9,976		9,094		7,149		5,235		8,023		10		24
Restricted cash for securitization investors	2,517		287		265		960		1,017		**		147
Securities available for sale, at fair value	40,737		41,511		39,960		40,092		39,061		(2)		4
Securities held to maturity, at carrying value	25,712		25,019		25,120		25,080		24,619		3		4
Loans held for investment:⁽⁵⁾
Unsecuritized loans held for investment	213,824		206,763		202,778		195,705		196,068		3		9
Loans held in consolidated trusts	31,762		31,256		31,825		31,908		33,783		2		(6)
Total loans held for investment	245,586		238,019		234,603		227,613		229,851		3		7
Allowance for loan and lease losses	(6,503)		(6,258)		(5,881)		(5,416)		(5,130)		4		27
Net loans held for investment	239,083		231,761		228,722		222,197		224,721		3		6
Loans held for sale, at lower of cost or fair value	1,043		994		1,220		1,251		904		5		15
Premises and equipment, net	3,675		3,561		3,556		3,542		3,584		3		3
Interest receivable	1,351		1,251		1,236		1,221		1,189		8		14
Goodwill	14,519		14,493		14,495		14,492		14,480		—		—
Other assets	18,420		17,090		17,394		16,276		16,450		8		12
Total assets	$	357,033	$	345,061	$	339,117	$	330,346	$	334,048	3		7

											2016 Q4 vs
	2016		2016		2016		2016		2015		2016		2015
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3		Q4
Liabilities:
Interest payable	$	327	$	237	$	301	$	217	$	299	38	%	9	%
Deposits:
Non-interest-bearing deposits	25,502		25,565		25,424		25,182		25,847		—		(1)
Interest-bearing deposits	211,266		200,416		195,635		196,597		191,874		5		10
Total deposits	236,768		225,981		221,059		221,779		217,721		5		9
Securitized debt obligations	18,826		18,411		16,130		14,913		16,166		2		16
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	992		1,079		999		917		981		(8)		1
Senior and subordinated notes	23,431		24,001		21,872		21,736		21,837		(2)		7
Other borrowings	17,211		16,329		20,180		12,931		20,131		5		(15)
Total other debt	41,634		41,409		43,051		35,584		42,949		1		(3)
Other liabilities	11,964		10,810		10,468		10,146		9,629		11		24
Total liabilities	309,519		296,848		291,009		282,639		286,764		4		8

Stockholders' equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		6		—		17
Additional paid-in capital, net	31,157		30,439		29,786		29,709		29,655		2		5
Retained earnings	29,766		29,245		28,479		27,808		27,045		2		10
Accumulated other comprehensive income (loss)	(949)		121		241		(41)		(616)		**		54
Treasury stock, at cost	(12,467)		(11,599)		(10,405)		(9,776)		(8,806)		7		42
Total stockholders' equity	47,514		48,213		48,108		47,707		47,284		(1)		—
Total liabilities and stockholders' equity	$	357,033	$	345,061	$	339,117	$	330,346	$	334,048	3		7

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 $321 million in Q4 2016, $289 million in Q3 2016, $244 million in Q2 2016, $228 million in Q1 2016 and $222 million in Q4 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

2015

(Dollars in millions)

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

Recorded in continuing operations

—

(1)

Recorded in discontinued operations

(2)

(21)

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

(2)

(22)

The mortgage representation and warranty reserve was $630 million as of December 31, 2016, $632 million as of September 30, 2016 and $610 million as of December 31, 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⁾

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.

⁽⁵⁾

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

2015

(Dollars in millions)

PCI loans:

Period-end unpaid principal balance

15,896

17,011

18,256

19,492

20,434

Period-end loans held for investment

15,071

16,149

17,358

18,568

19,518

Average loans held for investment

15,443

16,529

17,783

18,894

19,319

⁽⁶⁾

Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

⁽⁷⁾

Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

⁽⁸⁾

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.

⁽⁹⁾

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.

⁽¹⁰⁾

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.

⁽¹¹⁾

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: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on our non-GAAP measures.

⁽¹²⁾

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.

⁽¹³⁾

Capital ratios as of the end of Q4 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.

⁽¹⁴⁾

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.

⁽¹⁵⁾

We made certain non-interest income and non-interest expense reclassifications in Q4 2016. The changes were primarily related to a reclassification of certain consumer and commercial banking income from Other to Service charges and other customer-related fees within Non-interest income, and a reclassification of certain system processing costs from Professional services to Communications and data processing within Non-interest expense. We have also consolidated the Non-interest income presentation of Other-than-temporary impairment ("OTTI") with net realized gains or losses from investment securities into a new Net securities gains (losses) line. These reclassifications were made to better reflect the nature of income earned and expenses incurred. All prior period amounts presented have been reclassified to conform to the current period presentation.

⁽¹⁶⁾

The primary net effects of the reclassifications discussed in footnote 15 above for Q3 2016, Q4 2015, and the years ended December 31, 2016 and 2015 were (i) increases to Service charges and other customer-related fees of $30 million, $37 million, $71 million and $141 million, respectively; (ii) decreases to Other non-interest income of $31 million, $39 million, $84 million and $168 million, respectively; and (iii) increases to Communications and data processing expense of $39 million, $43 million, $115 million and $172 million, respectively, with corresponding decreases to Professional services.

^**

Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 6: Average Balances, Net Interest Income and Net Interest Margin

	2016 Q4						2016 Q3						2015 Q4
	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)	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⁾
Interest-earning assets:
Loans, including loans held for sale	$	241,110	$	5,587	9.27	%	$	237,067	$	5,383	9.08	%	$	220,760	$	4,961	8.99	%
Investment securities	67,827		393		2.32		66,291		386		2.33		64,444		401		2.49
Cash equivalents and other	8,916		29		1.30		7,629		25		1.31		6,850		22		1.28
Total interest-earning assets	$	317,853	$	6,009	7.56		$	310,987	$	5,794	7.45		$	292,054	$	5,384	7.37
Interest-bearing liabilities:
Interest-bearing deposits	$	206,464	$	332	0.64		$	196,913	$	306	0.62		$	189,885	$	277	0.58
Securitized debt obligations	18,300		65		1.42		17,389		56		1.29		15,993		43		1.08
Senior and subordinated notes	23,605		138		2.34		22,342		121		2.17		21,987		89		1.62
Other borrowings and liabilities	17,654		27		0.61		21,840		34		0.62		11,542		14		0.49
Total interest-bearing liabilities	$	266,023	$	562	0.85		$	258,484	$	517	0.80		$	239,407	$	423	0.71
Net interest income/spread			$	5,447	6.71				$	5,277	6.65				$	4,961	6.66
Impact of non-interest-bearing funding					0.14						0.14						0.13
Net interest margin					6.85	%					6.79	%					6.79	%

							Year Ended December 31,
							2016						2015
							Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾		Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾
(Dollars in millions)							Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾		Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾
Interest-earning assets:
Loans, including loans held for sale							$	234,338	$	21,203	9.05	%	$	211,549	$	18,785	8.88	%
Investment securities							66,260		1,599		2.41		63,738		1,575		2.47
Cash equivalents and other							7,198		89		1.24		7,294		99		1.36
Total interest-earning assets							$	307,796	$	22,891	7.44		$	282,581	$	20,459	7.24
Interest-bearing liabilities:
Interest-bearing deposits							$	198,304	$	1,213	0.61		$	185,677	$	1,091	0.59
Securitized debt obligations							16,576		216		1.30		13,929		151		1.08
Senior and subordinated notes							22,417		476		2.12		20,935		330		1.58
Other borrowings and liabilities							18,736		113		0.60		11,297		53		0.47
Total interest-bearing liabilities							$	256,033	$	2,018	0.79		$	231,838	$	1,625	0.70
Net interest income/spread									$	20,873	6.65				$	18,834	6.54
Impact of non-interest-bearing funding											0.13						0.12
Net interest margin											6.78	%					6.66	%


__________
⁽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 Q4 vs				Year Ended December 31,
(Dollars in millions)	2016 Q4			2016 Q3			2016 Q2			2016 Q1			2015 Q4			2016 Q3		2015 Q4		2016			2015			2016 vs. 2015
Loans Held For Investment (Period-End)
Credit card:
Domestic credit card	$	97,120		$	90,955		$	88,581		$	84,561		$	87,939		7	%	10	%	$	97,120		$	87,939		10	%
International credit card	8,432			8,246			8,323			8,138			8,186			2		3		8,432			8,186			3
Total credit card	105,552			99,201			96,904			92,699			96,125			6		10		105,552			96,125			10
Consumer banking:
Auto	47,916			46,311			44,502			42,714			41,549			3		15		47,916			41,549			15
Home loan	21,584			22,448			23,358			24,343			25,227			(4)		(14)		21,584			25,227			(14)
Retail banking	3,554			3,526			3,555			3,534			3,596			1		(1)		3,554			3,596			(1)
Total consumer banking	73,054			72,285			71,415			70,591			70,372			1		4		73,054			70,372			4
Commercial banking:
Commercial and multifamily real estate	26,609			26,507			26,341			25,559			25,518			—		4		26,609			25,518			4
Commercial and industrial	39,824			39,432			39,313			38,102			37,135			1		7		39,824			37,135			7
Total commercial lending	66,433			65,939			65,654			63,661			62,653			1		6		66,433			62,653			6
Small-ticket commercial real estate	483			518			548			580			613			(7)		(21)		483			613			(21)
Total commercial banking	66,916			66,457			66,202			64,241			63,266			1		6		66,916			63,266			6
Other loans	64			76			82			82			88			(16)		(27)		64			88			(27)
Total loans held for investment	$	245,586		$	238,019		$	234,603		$	227,613		$	229,851		3		7		$	245,586		$	229,851		7
Loans Held For Investment (Average)
Credit card:
Domestic credit card	$	92,623		$	89,763		$	85,981		$	85,148		$	83,760		3	%	11	%	$	88,394		$	78,743		12	%
International credit card	8,168			8,253			8,401			7,839			8,127			(1)		1		8,166			7,992			2
Total credit card	100,791			98,016			94,382			92,987			91,887			3		10		96,560			86,735			11
Consumer banking:
Auto	47,126			45,355			43,605			41,962			41,333			4		14		44,521			39,967			11
Home loan	21,984			22,852			23,835			24,781			25,776			(4)		(15)		23,358			27,601			(15)
Retail banking	3,549			3,520			3,548			3,553			3,595			1		(1)		3,543			3,582			(1)
Total consumer banking	72,659			71,727			70,988			70,296			70,704			1		3		71,422			71,150			—
Commercial banking:
Commercial and multifamily real estate	26,445			26,154			25,661			25,015			25,613			1		3		25,821			23,728			9
Commercial and industrial	39,573			39,346			38,713			37,762			31,132			1		27		38,852			28,349			37
Total commercial lending	66,018			65,500			64,374			62,777			56,745			1		16		64,673			52,077			24
Small-ticket commercial real estate	497			534			564			598			634			(7)		(22)		548			692			(21)
Total commercial banking	66,515			66,034			64,938			63,375			57,379			1		16		65,221			52,769			24
Other loans	62			66			71			78			82			(6)		(24)		69			91			(24)
Total average loans held for investment	$	240,027		$	235,843		$	230,379		$	226,736		$	220,052		2		9		$	233,272		$	210,745		11


																2016 Q4 vs				Year Ended December 31,
		2016 Q4			2016 Q3			2016 Q2			2016 Q1			2015 Q4		2016 Q3		2015 Q4		2016			2015			2016 vs. 2015
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card		4.66	%		3.74	%		4.07	%		4.16	%		3.75	%	92	bps	91	bps		4.16	%		3.45	%	71	bps
International credit card		3.35			3.18			3.54			3.24			2.76		17		59			3.33			2.50		83
Total credit card		4.56			3.70			4.02			4.09			3.66		86		90			4.09			3.36		73
Consumer banking:
Auto		2.07			1.85			1.20			1.60			2.10		22		(3)			1.69			1.69		—
Home loan		0.08			0.03			0.09			0.05			0.05		5		3			0.06			0.03		3
Retail banking		1.73			1.75			1.26			1.36			1.43		(2)		30			1.53			1.33		20
Total consumer banking		1.45			1.26			0.83			1.04			1.32		19		13			1.15			1.03		12
Commercial banking:
Commercial and multifamily real estate		(0.02)			0.01			(0.02)			(0.01)			(0.03)		(3)		1			(0.01)			(0.06)		5
Commercial and industrial		0.80			1.09			0.62			0.49			0.07		(29)		73			0.75			0.21		54
Total commercial lending		0.47			0.66			0.37			0.29			0.02		(19)		45			0.45			0.09		36
Small-ticket commercial real estate		(0.02)			0.74			0.33			0.13			0.34		(76)		(36)			0.30			0.36		(6)
Total commercial banking		0.47			0.66			0.37			0.29			0.03		(19)		44			0.45			0.09		36
Total net charge-offs		2.48			2.10			2.01			2.08			1.96		38		52			2.17			1.75		42
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card		3.95	%		3.68	%		3.14	%		3.09	%		3.39	%	27	bps	56	bps		3.95	%		3.39	%	56	bps
International credit card		3.36			3.33			3.24			3.32			2.98		3		38			3.36			2.98		38
Total credit card		3.91			3.65			3.15			3.11			3.36		26		55			3.91			3.36		55
Consumer banking:
Auto		6.12			5.67			5.59			5.14			6.69		45		(57)			6.12			6.69		(57)
Home loan		0.20			0.19			0.14			0.14			0.16		1		4			0.20			0.16		4
Retail banking		0.70			0.59			0.62			0.61			0.76		11		(6)			0.70			0.76		(6)
Total consumer banking		4.10			3.72			3.56			3.19			4.05		38		5			4.10			4.05		5
Nonperforming Loans and Nonperforming Assets Rates⁽¹⁾⁽²⁾
Credit card:
International credit card		0.50	%		0.53	%		0.53	%		0.59	%		0.65	%	(3)	bps	(15)	bps		0.50	%		0.65	%	(15)	bps
Total credit card		0.04			0.04			0.05			0.05			0.06		—		(2)			0.04			0.06		(2)
Consumer banking:
Auto		0.47			0.43			0.38			0.31			0.53		4		(6)			0.47			0.53		(6)
Home loan		1.26			1.23			1.24			1.26			1.23		3		3			1.26			1.23		3
Retail banking		0.86			1.05			0.89			0.83			0.77		(19)		9			0.86			0.77		9
Total consumer banking		0.72			0.71			0.69			0.66			0.79		1		(7)			0.72			0.79		(7)
Commercial banking:
Commercial and multifamily real estate		0.11			0.08			0.10			0.12			0.03		3		8			0.11			0.03		8
Commercial and industrial		2.48			2.44			2.58			2.66			1.45		4		103			2.48			1.45		103
Total commercial lending		1.53			1.49			1.59			1.64			0.87		4		66			1.53			0.87		66
Small-ticket commercial real estate		0.85			2.13			1.59			1.11			0.83		(128)		2			0.85			0.83		2
Total commercial banking		1.53			1.50			1.59			1.63			0.87		3		66			1.53			0.87		66
Total nonperforming loans		0.65			0.66			0.68			0.69			0.51		(1)		14			0.65			0.51		14
Total nonperforming assets		0.76			0.77			0.80			0.83			0.65		(1)		11			0.76			0.65		11

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity

	Three Months Ended December 31, 2016
	Credit Card						Consumer Banking
(Dollars in millions)	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 September 30, 2016	$	4,079	$	366	$	4,445	$	862	$	62	$	79	$	1,003	$	808	$	2	$	6,258
Provision (benefit) for loan and lease losses	1,229		93		1,322		339		8		17		364		63		(1)		1,748
Charge-offs	(1,299)		(112)		(1,411)		(339)		(7)		(18)		(364)		(83)		(1)		(1,859)
Recoveries	220		43		263		95		2		3		100		5		2		370
Net charge-offs	(1,079)		(69)		(1,148)		(244)		(5)		(15)		(264)		(78)		1		(1,489)
Other changes⁽⁴⁾	—		(13)		(13)		—		—		(1)		(1)		—		—		(14)
Balance as of December 31, 2016	4,229		377		4,606		957		65		80		1,102		793		2		6,503
Reserve for unfunded lending commitments:
Balance as of September 30, 2016	—		—		—		—		—		6		6		126		—		132
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		1		1		3		—		4
Balance as of December 31, 2016	—		—		—		—		—		7		7		129		—		136
Combined allowance and reserve as of December 31, 2016	$	4,229	$	377	$	4,606	$	957	$	65	$	87	$	1,109	$	922	$	2	$	6,639


	Year Ended December 31, 2016
	Credit Card						Consumer Banking
(Dollars in millions)	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	4,555		371		4,926		983		9		63		1,055		515		(5)		6,491
Charge-offs	(4,586)		(433)		(5,019)		(1,135)		(22)		(69)		(1,226)		(307)		(3)		(6,555)
Recoveries	905		161		1,066		383		8		15		406		15		6		1,493
Net charge-offs	(3,681)		(272)		(3,953)		(752)		(14)		(54)		(820)		(292)		3		(5,062)
Other changes⁽⁴⁾	—		(21)		(21)		—		—		(1)		(1)		(34)		—		(56)
Balance as of December 31, 2016	4,229		377		4,606		957		65		80		1,102		793		2		6,503
Reserve for unfunded lending commitments:
Balance as of December 31, 2015	—		—		—		—		—		7		7		161		—		168
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		—		(32)		—		(32)
Balance as of December 31, 2016	—		—		—		—		—		7		7		129		—		136
Combined allowance and reserve as of December 31, 2016	$	4,229	$	377	$	4,606	$	957	$	65	$	87	$	1,109	$	922	$	2	$	6,639

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial Summary—Business Segment Results

	Three Months Ended December 31, 2016										Year Ended December 31, 2016
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Other		Total		Credit Card		Consumer Banking		Commercial Banking		Other		Total
Net interest income	$	3,353	$	1,498	$	565	$	31	$	5,447	$	12,635	$	5,829	$	2,216	$	193	$	20,873
Non-interest income	849		166		175		(71)		1,119		3,380		733		578		(63)		4,628
Total net revenue⁽⁵⁾	4,202		1,664		740		(40)		6,566		16,015		6,562		2,794		130		25,501
Provision (benefit) for credit losses	1,322		365		66		(1)		1,752		4,926		1,055		483		(5)		6,459
Non-interest expense	2,073		1,109		393		104		3,679		7,703		4,139		1,407		309		13,558
Income (loss) from continuing operations before income taxes	807		190		281		(143)		1,135		3,386		1,368		904		(174)		5,484
Income tax provision (benefit)	295		70		102		(125)		342		1,226		498		329		(339)		1,714
Income (loss) from continuing operations, net of tax	$	512	$	120	$	179	$	(18)	$	793	$	2,160	$	870	$	575	$	165	$	3,770

	Three Months Ended September 30, 2016
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Other		Total
Net interest income	$	3,204	$	1,472	$	555	$	46	$	5,277
Non-interest income	825		201		156		2		1,184
Total net revenue⁽⁵⁾	4,029		1,673		711		48		6,461
Provision (benefit) for credit losses	1,272		256		61		(1)		1,588
Non-interest expense	1,884		1,034		349		94		3,361
Income (loss) from continuing operations before income taxes	873		383		301		(45)		1,512
Income tax provision (benefit)	318		139		110		(71)		496
Income (loss) from continuing operations, net of tax	$	555	$	244	$	191	$	26	$	1,016

	Three Months Ended December 31, 2015										Year Ended December 31, 2015
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Other		Total		Credit Card		Consumer Banking		Commercial Banking		Other		Total
Net interest income	$	2,996	$	1,434	$	484	$	47	$	4,961	$	11,161	$	5,755	$	1,865	$	53	$	18,834
Non-interest income	902		182		142		7		1,233		3,421		710		487		(39)		4,579
Total net revenue⁽⁵⁾	3,898		1,616		626		54		6,194		14,582		6,465		2,352		14		23,413
Provision (benefit) for credit losses	1,022		240		118		—		1,380		3,417		819		302		(2)		4,536
Non-interest expense	2,021		1,057		342		60		3,480		7,502		4,026		1,156		312		12,996
Income (loss) from continuing operations before income taxes	855		319		166		(6)		1,334		3,663		1,620		894		(296)		5,881
Income tax provision (benefit)	302		115		60		(51)		426		1,309		586		324		(350)		1,869
Income (loss) from continuing operations, net of tax	$	553	$	204	$	106	$	45	$	908	$	2,354	$	1,034	$	570	$	54	$	4,012

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary—Credit Card Business

																2016 Q4 vs				Year Ended December 31,
	2016			2016			2016			2016			2015			2016		2015								2016 vs
(Dollars in millions)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2016			2015			2015
Credit Card
Earnings:
Net interest income	$	3,353		$	3,204		$	3,045		$	3,033		$	2,996		5	%	12	%	$	12,635		$	11,161		13	%
Non-interest income	849			825			859			847			902			3		(6)		3,380			3,421			(1)
Total net revenue	4,202			4,029			3,904			3,880			3,898			4		8		16,015			14,582			10
Provision (benefit) for credit losses	1,322			1,272			1,261			1,071			1,022			4		29		4,926			3,417			44
Non-interest expense	2,073			1,884			1,883			1,863			2,021			10		3		7,703			7,502			3
Income (loss) from continuing operations before income taxes	807			873			760			946			855			(8)		(6)		3,386			3,663			(8)
Income tax provision (benefit)	295			318			276			337			302			(7)		(2)		1,226			1,309			(6)
Income (loss) from continuing operations, net of tax	$	512		$	555		$	484		$	609		$	553		(8)		(7)		$	2,160		$	2,354		(8)
Selected performance metrics:
Period-end loans held for investment	$	105,552		$	99,201		$	96,904		$	92,699		$	96,125		6		10		$	105,552		$	96,125		10
Average loans held for investment	100,791			98,016			94,382			92,987			91,887			3		10		96,560			86,735			11
Average yield on loans held for investment⁽⁶⁾	14.93		%	14.68		%	14.49		%	14.60		%	14.45		%	25	bps	48	bps	14.68		%	14.28		%	40	bps
Total net revenue margin⁽⁷⁾	16.68			16.44			16.55			16.69			16.97			24		(29)		16.59			16.81			(22)
Net charge-off rate	4.56			3.70			4.02			4.09			3.66			86		90		4.09			3.36			73
30+ day performing delinquency rate	3.91			3.65			3.15			3.11			3.36			26		55		3.91			3.36			55
30+ day delinquency rate	3.94			3.69			3.18			3.15			3.40			25		54		3.94			3.40			54
Nonperforming loan rate⁽¹⁾	0.04			0.04			0.05			0.05			0.06			—		(2)		0.04			0.06			(2)
PCCR intangible amortization	$	58		$	62		$	67		$	70		$	74		(6)	%	(22)	%	$	257		$	316		(19)	%
Purchase volume⁽⁸⁾	82,824			78,106			78,019			68,189			75,350			6		10		307,138			271,167			13

																2016 Q4 vs				Year Ended December 31,
	2016			2016			2016			2016			2015			2016		2015								2016 vs
(Dollars in millions)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2016			2015			2015
Domestic Card
Earnings:
Net interest income	$	3,090		$	2,956		$	2,769		$	2,756		$	2,718		5	%	14	%	$	11,571		$	10,147		14	%
Non-interest income	791			759			792			774			830			4		(5)		3,116			3,183			(2)
Total net revenue	3,881			3,715			3,561			3,530			3,548			4		9		14,687			13,330			10
Provision (benefit) for credit losses	1,229			1,190			1,164			972			945			3		30		4,555			3,204			42
Non-interest expense	1,859			1,696			1,669			1,671			1,796			10		4		6,895			6,627			4
Income (loss) from continuing operations before income taxes	793			829			728			887			807			(4)		(2)		3,237			3,499			(7)
Income tax provision (benefit)	288			302			265			323			293			(5)		(2)		1,178			1,267			(7)
Income (loss) from continuing operations, net of tax	$	505		$	527		$	463		$	564		$	514		(4)		(2)		$	2,059		$	2,232		(8)
Selected performance metrics:
Period-end loans held for investment	$	97,120		$	90,955		$	88,581		$	84,561		$	87,939		7		10		$	97,120		$	87,939		10
Average loans held for investment	92,623			89,763			85,981			85,148			83,760			3		11		88,394			78,743			12
Average yield on loans held for investment⁽⁶⁾	14.91		%	14.71		%	14.40		%	14.43		%	14.31		%	20	bps	60	bps	14.62		%	14.21		%	41	bps
Total net revenue margin⁽⁷⁾	16.76			16.55			16.57			16.58			16.95			21		(19)		16.62			16.93			(31)
Net charge-off rate	4.66			3.74			4.07			4.16			3.75			92		91		4.16			3.45			71
30+ day delinquency rate	3.95			3.68			3.14			3.09			3.39			27		56		3.95			3.39			56
Purchase volume⁽⁸⁾	$	75,639		$	71,331		$	71,050		$	62,617		$	68,740		6	%	10	%	$	280,637		$	246,740		14	%
Refreshed FICO scores:⁽⁹⁾
Greater than 660	64		%	64		%	65		%	65		%	66		%	—		(2)		64		%	66		%	(2)
660 or below	36			36			35			35			34			—		2		36			34			2
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Financial & Statistical Summary—Consumer Banking Business

																2016 Q4 vs				Year Ended December 31,
	2016			2016			2016			2016			2015			2016		2015								2016 vs
(Dollars in millions)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2016			2015			2015
Consumer Banking
Earnings:
Net interest income	$	1,498		$	1,472		$	1,439		$	1,420		$	1,434		2	%	4	%	$	5,829		$	5,755		1	%
Non-interest income	166			201			175			191			182			(17)		(9)		733			710			3
Total net revenue	1,664			1,673			1,614			1,611			1,616			(1)		3		6,562			6,465			2
Provision (benefit) for credit losses	365			256			204			230			240			43		52		1,055			819			29
Non-interest expense	1,109			1,034			1,006			990			1,057			7		5		4,139			4,026			3
Income (loss) from continuing operations before income taxes	190			383			404			391			319			(50)		(40)		1,368			1,620			(16)
Income tax provision (benefit)	70			139			147			142			115			(50)		(39)		498			586			(15)
Income (loss) from continuing operations, net of tax	$	120		$	244		$	257		$	249		$	204		(51)		(41)		$	870		$	1,034		(16)
Selected performance metrics:
Period-end loans held for investment	$	73,054		$	72,285		$	71,415		$	70,591		$	70,372		1		4		$	73,054		$	70,372		4
Average loans held for investment	72,659			71,727			70,988			70,296			70,704			1		3		71,422			71,150			—
Average yield on loans held for investment⁽⁶⁾	6.50		%	6.41		%	6.28		%	6.18		%	6.25		%	9	bps	25	bps	6.34		%	6.26		%	8	bps
Auto loan originations	$	6,542		$	6,804		$	6,529		$	5,844		$	4,977		(4)	%	31	%	$	25,719		$	21,185		21	%
Period-end deposits	181,917			178,793			176,340			177,803			172,702			2		5		181,917			172,702			5
Average deposits	180,019			177,402			176,808			174,254			171,521			1		5		177,129			170,757			4
Average deposit interest rate	0.57		%	0.56		%	0.55		%	0.54		%	0.54		%	1	bps	3	bps	0.56		%	0.56		%	—
Net charge-off rate	1.45			1.26			0.83			1.04			1.32			19		13		1.15			1.03			12	bps
30+ day performing delinquency rate	4.10			3.72			3.56			3.19			4.05			38		5		4.10			4.05			5
30+ day delinquency rate	4.67			4.26			4.07			3.67			4.67			41		—		4.67			4.67			—
Nonperforming loan rate⁽¹⁾	0.72			0.71			0.69			0.66			0.79			1		(7)		0.72			0.79			(7)
Nonperforming asset rate⁽²⁾	1.09			0.98			0.96			0.95			1.10			11		(1)		1.09			1.10			(1)
Auto—At origination FICO scores:⁽¹⁰⁾
Greater than 660	52		%	51		%	51		%	51		%	51		%	1	%	1	%	52		%	51		%	1	%
621 - 660	17			17			17			17			17			—		—		17			17			—
620 or below	31			32			32			32			32			(1)		(1)		31			32			(1)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12: Financial & Statistical Summary—Commercial Banking Business

																2016 Q4 vs				Year Ended December 31,
	2016			2016			2016			2016			2015			2016		2015								2016 vs
(Dollars in millions)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2016			2015			2015
Commercial Banking
Earnings:
Net interest income	$	565		$	555		$	559		$	537		$	484		2	%	17	%	$	2,216		$	1,865		19	%
Non-interest income	175			156			129			118			142			12		23		578			487			19
Total net revenue⁽⁵⁾	740			711			688			655			626			4		18		2,794			2,352			19
Provision (benefit) for credit losses	66			61			128			228			118			8		(44)		483			302			60
Non-interest expense	393			349			343			322			342			13		15		1,407			1,156			22
Income (loss) from continuing operations before income taxes	281			301			217			105			166			(7)		69		904			894			1
Income tax provision (benefit)	102			110			79			38			60			(7)		70		329			324			2
Income (loss) from continuing operations, net of tax	$	179		$	191		$	138		$	67		$	106		(6)		69		$	575		$	570		1
Selected performance metrics:
Period-end loans held for investment	$	66,916		$	66,457		$	66,202		$	64,241		$	63,266		1		6		$	66,916		$	63,266		6
Average loans held for investment	66,515			66,034			64,938			63,375			57,379			1		16		65,221			52,769			24
Average yield on loans held for investment⁽⁵⁾⁽⁶⁾	3.55		%	3.50		%	3.45		%	3.38		%	3.18		%	5	bps	37	bps	3.47		%	3.21		%	26	bps
Period-end deposits	$	33,866		$	33,611		$	34,281		$	33,383		$	34,257		1	%	(1)	%	$	33,866		$	34,257		(1)	%
Average deposits	34,029			33,498			33,764			34,076			33,797			2		1		33,841			33,058			2
Average deposit interest rate	0.30		%	0.30		%	0.27		%	0.27		%	0.26		%	—		4	bps	0.28		%	0.25		%	3	bps
Net charge-off rate	0.47			0.66			0.37			0.29			0.03			(19)	bps	44		0.45			0.09			36
Nonperforming loan rate^(1)(11)	1.53			1.50			1.59			1.63			0.87			3		66		1.53			0.87			66
Nonperforming asset rate^(2)(11)	1.54			1.51			1.60			1.64			0.87			3		67		1.54			0.87			67
Risk category:^(11)(12)
Noncriticized	$	62,828		$	62,336		$	61,926		$	59,663		$	59,743		1	%	5	%	$	62,828		$	59,743		5	%
Criticized performing	2,453			2,473			2,456			2,595			2,015			(1)		22		2,453			2,015			22
Criticized nonperforming	1,022			994			1,050			1,050			550			3		86		1,022			550			86
PCI loans⁽¹¹⁾	613			654			770			933			958			(6)		(36)		613			958			(36)
Total commercial loans	$	66,916		$	66,457		$	66,202		$	64,241		$	63,266		1		6		$	66,916		$	63,266		6
Risk category as a percentage of period-end loans held for investment:^(11)(12)
Noncriticized	93.9		%	93.8		%	93.5		%	92.9		%	94.4		%	10	bps	(50)	bps	93.9		%	94.4		%	(50)	bps
Criticized performing	3.7			3.7			3.7			4.0			3.2			—		50		3.7			3.2			50
Criticized nonperforming	1.5			1.5			1.6			1.6			0.9			—		60		1.5			0.9			60
PCI loans⁽¹¹⁾	0.9			1.0			1.2			1.5			1.5			(10)		(60)		0.9			1.5			(60)
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 Q4 vs				Year Ended December 31,
	2016		2016		2016		2016		2015		2016		2015						2016 vs
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2016		2015		2015
Other
Earnings:
Net interest income (expense)	$	31	$	46	$	50	$	66	$	47	(33)	%	(34)	%	$	193	$	53	**
Non-interest income	(71)		2		(2)		8		7		**		**		(63)		(39)		62	%
Total net revenue (loss)⁽⁵⁾	(40)		48		48		74		54		**		**		130		14		**
Provision (benefit) for credit losses	(1)		(1)		(1)		(2)		—		—		**		(5)		(2)		150
Non-interest expense	104		94		63		48		60		11		73		309		312		(1)
Income (loss) from continuing operations before income taxes	(143)		(45)		(14)		28		(6)		**		**		(174)		(296)		(41)
Income tax provision (benefit)	(125)		(71)		(78)		(65)		(51)		76		145		(339)		(350)		(3)
Income (loss) from continuing operations, net of tax	$	(18)	$	26	$	64	$	93	$	45	**		**		$	165	$	54	**
Selected performance metrics:
Period-end loans held for investment	$	64	$	76	$	82	$	82	$	88	(16)		(27)		$	64	$	88	(27)
Average loans held for investment	62		66		71		78		82		(6)		(24)		69		91		(24)
Period-end deposits	20,985		13,577		10,438		10,593		10,762		55		95		20,985		10,762		95
Average deposits	18,156		11,351		10,574		10,850		10,581		60		72		12,744		7,174		78
Total
Earnings:
Net interest income	$	5,447	$	5,277	$	5,093	$	5,056	$	4,961	3	%	10	%	$	20,873	$	18,834	11	%
Non-interest income	1,119		1,184		1,161		1,164		1,233		(5)		(9)		4,628		4,579		1
Total net revenue	6,566		6,461		6,254		6,220		6,194		2		6		25,501		23,413		9
Provision (benefit) for credit losses	1,752		1,588		1,592		1,527		1,380		10		27		6,459		4,536		42
Non-interest expense	3,679		3,361		3,295		3,223		3,480		9		6		13,558		12,996		4
Income (loss) from continuing operations before income taxes	1,135		1,512		1,367		1,470		1,334		(25)		(15)		5,484		5,881		(7)
Income tax provision (benefit)	342		496		424		452		426		(31)		(20)		1,714		1,869		(8)
Income (loss) from continuing operations, net of tax	$	793	$	1,016	$	943	$	1,018	$	908	(22)		(13)		$	3,770	$	4,012	(6)
Selected performance metrics:
Period-end loans held for investment	$	245,586	$	238,019	$	234,603	$	227,613	$	229,851	3		7		$	245,586	$	229,851	7
Average loans held for investment	240,027		235,843		230,379		226,736		220,052		2		9		233,272		210,745		11
Period-end deposits	236,768		225,981		221,059		221,779		217,721		5		9		236,768		217,721		9
Average deposits	232,204		222,251		221,146		219,180		215,899		4		8		223,714		210,989		6

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. Prior to Q4 2016, the nonperforming asset rate for our Consumer Banking business excluded the impact of REOs related to our acquired home loan portfolio which, if included, would increase the nonperforming asset rate by approximately 10 basis points in each of the prior periods presented.
⁽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⁾	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.
⁽⁷⁾	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.
⁽⁸⁾	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.
⁽⁹⁾	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.
⁽¹⁰⁾	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.
⁽¹¹⁾	The loans held for investment acquired in the HFS acquisition included $518 million, $556 million, $667 million, $825 million and $835 million of PCI loans as of December 31, 2016, 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			2016			2015
	(Dollars in millions)	Q4			Q3			Q2			Q1			Q4
	Selected performance metrics:
	Nonperforming loan rate	1.56		%	1.53		%	1.63		%	1.69		%	0.93		%
	Nonperforming asset rate	1.57			1.54			1.64			1.70			0.93
	Risk category:
	Noncriticized	$	63,078		$	62,575		$	62,058		$	59,729		$	59,743
	Criticized performing	2,700			2,766			2,961			3,321			2,814
	Criticized nonperforming	1,042			1,018			1,080			1,083			586
	Risk category as a percentage of period-end loans held for investment:
	Noncriticized	94.3		%	94.2		%	93.7		%	93.0		%	94.4		%
	Criticized performing	4.0			4.2			4.5			5.2			4.5
	Criticized nonperforming	1.6			1.5			1.6			1.7			0.9

⁽¹²⁾	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)																						December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Regulatory Capital Metrics
Common equity excluding AOCI																						$	44,103		$	44,214		$	44,572		$	44,452		$	44,606
Adjustments:
AOCI⁽²⁾⁽³⁾																						(674)			199			332			117			(254)
Goodwill⁽⁴⁾																						(14,307)			(14,288)			(14,296)			(14,301)			(14,296)
Intangible assets⁽³⁾⁽⁴⁾																						(384)			(435)			(483)			(532)			(393)
Other																						65			(498)			(639)			(505)			(119)
Common equity Tier 1 capital																						$	28,803		$	29,192		$	29,486		$	29,231		$	29,544
Tier 1 capital																						$	33,162		$	33,069		$	32,780		$	32,525		$	32,838
Total capital⁽⁵⁾																						40,816			40,564			38,767			38,399			38,838
Risk-weighted assets																						285,654			275,198			269,667			262,368			265,739
Adjusted average assets⁽⁶⁾																						335,835			328,627			319,968			317,403			309,037
Capital Ratios
Common equity Tier 1 capital⁽⁷⁾																						10.1		%	10.6		%	10.9		%	11.1		%	11.1		%
Tier 1 capital⁽⁸⁾																						11.6			12.0			12.2			12.4			12.4
Total capital⁽⁹⁾																						14.3			14.7			14.4			14.6			14.6
Tier 1 leverage⁽⁶⁾																						9.9			10.1			10.2			10.2			10.6
Tangible common equity ("TCE")⁽¹⁰⁾																						8.1			8.8			9.0			9.1			8.9


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 selected adjusted results, 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 key financial performance measures. 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. The tables below present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.


	2016									2016									2016									Year Ended December 31,
	Q4									Q3									Q2									2016
(Dollars in millions)	Reported Results			Adjustments⁽¹¹⁾			Adjusted Results			Reported Results			Adjustments⁽¹¹⁾			Adjusted Results			Reported Results			Adjustments⁽¹¹⁾			Adjusted Results			Reported Results			Adjustments⁽¹¹⁾			Adjusted Results
Selected income statement data:
Net interest income	$	5,447		$	13		$	5,460		$	5,277		$	34		$	5,311		$	5,093		$	7		$	5,100		$	20,873		$	54		$	20,927
Non-interest income	1,119			14			1,133			1,184			13			1,197			1,161			8			1,169			4,628			35			4,663
Total net revenue	6,566			27			6,593			6,461			47			6,508			6,254			15			6,269			25,501			89			25,590
Non-interest expense	3,679			(45)			3,634			3,361			(16)			3,345			3,295			(15)			3,280			13,558			(76)			13,482
Selected performance metrics:
Efficiency ratio	56.03		%	(91)		bps	55.12		%	52.02		%	(62)		bps	51.40		%	52.69		%	(37)		bps	52.32		%	53.17		%	(49)		bps	52.68		%


																						2016			2016			2016			2016			2015
(Dollars in millions)																						Q4			Q3			Q2			Q1			Q4
Tangible Common Equity (Period-End)
Stockholders' equity																						$	47,514		$	48,213		$	48,108		$	47,707		$	47,284
Goodwill and intangible assets⁽⁴⁾																						(15,420)			(15,475)			(15,553)			(15,629)			(15,701)
Noncumulative perpetual preferred stock⁽¹²⁾																						(4,360)			(3,877)			(3,294)			(3,296)			(3,294)
Tangible common equity																						$	27,734		$	28,861		$	29,261		$	28,782		$	28,289
Tangible Common Equity (Average)
Stockholders' equity																						$	47,972		$	49,033		$	48,934		$	49,078		$	48,712
Goodwill and intangible assets⁽⁴⁾																						(15,455)			(15,507)			(15,585)			(15,654)			(15,316)
Noncumulative perpetual preferred stock⁽¹²⁾																						(4,051)			(3,719)			(3,294)			(3,296)			(3,294)
Tangible common equity																						$	28,466		$	29,807		$	30,055		$	30,128		$	30,102
Tangible Assets (Period-End)
Total assets																						$	357,033		$	345,061		$	339,117		$	330,346		$	334,048
Goodwill and intangible assets⁽⁴⁾																						(15,420)			(15,475)			(15,553)			(15,629)			(15,701)
Tangible assets																						$	341,613		$	329,586		$	323,564		$	314,717		$	318,347
Tangible Assets (Average)
Total assets																						$	350,225		$	343,153		$	334,479		$	331,919		$	323,354
Goodwill and intangible assets⁽⁴⁾																						(15,455)			(15,507)			(15,585)			(15,654)			(15,316)
Tangible assets																						$	334,770		$	327,646		$	318,894		$	316,265		$	308,038


_________
⁽¹⁾	Regulatory capital metrics and capital ratios as of December 31, 2016 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 40% for 2015 and 60% for 2016.
⁽⁴⁾	Includes impact of related deferred taxes.
⁽⁵⁾	Total capital equals the sum of Tier 1 capital and Tier 2 capital.
⁽⁶⁾	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.
⁽⁷⁾	Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.
⁽⁸⁾	Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
⁽⁹⁾	Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.
⁽¹⁰⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.
⁽¹¹⁾	In Q4 2016, we recorded charges totaling $72 million consisting of a build in the U.K. Payment Protection Insurance customer refund reserve ("U.K. PPI Reserve") of $44 million and an impairment associated with certain acquired intangible and software assets of $28 million. In Q3 2016, we recorded a build in the 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.
⁽¹²⁾	Includes related surplus.