Capital One Reports Fourth Quarter 2017 Net Loss of $971 million, or $2.17 per share

Excluding adjusting items, Fourth Quarter 2017 Net Income of $1.62 per share(1)

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Jan 23, 2018, 04:19 ET

MCLEAN, Va., Jan. 23, 2018 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net loss for the fourth quarter of 2017 of $971 million, or $2.17 per diluted common share, compared with net income of $1.1 billion, or $2.14 per diluted common share in the third quarter of 2017, and with net income of $791 million, or $1.45 per diluted common share in the fourth quarter of 2016. Excluding adjusting items, net income for the fourth quarter of 2017 was $1.62 per diluted common share⁽¹⁾.

"In 2017, we continued to grow loans and revenue. We improved our efficiency. Our digital and technology transformation continued to gain momentum. And, we delivered 7.4% EPS growth, net of adjustments," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "Our 2017 results put us in a strong position to continue to deliver attractive growth and returns over the long-term."

Adjusting items in the fourth quarter of 2017, which are excluded from diluted EPS and the efficiency ratio (see Table 15 in our Financial Supplement for additional information):

	Pre-Tax		Diluted EPS
(Dollars in millions, except per share data)	Impact		Impact
Impacts of the Tax Act⁽²⁾	$	(1,769)	$	(3.61)
Restructuring charges	(76)		(0.10)
Build in the U.K. Payment Protection Insurance customer refund reserve ("U.K. PPI Reserve")	(31)		(0.07)

Notable items in the fourth quarter of 2017 included:

	Pre-Tax		Diluted EPS
(Dollars in millions, except per share data)	Impact		Impact
Mortgage representation and warranty settlement (included in discontinued operations)	$	(169)	$	(0.22)
Charges related to our Commercial Taxi Medallion Lending portfolio	(113)		(0.15)

⁽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⁾	Tax Act refers to the Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 enacted on December 22, 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.

All comparisons below are for the fourth quarter of 2017 compared with the third quarter of 2017 unless otherwise noted.

Fourth Quarter 2017 Income Statement Summary:

Total net revenue remained substantially flat at $7.0 billion.
Total non-interest expense increased 6 percent to $3.8 billion:

4 percent increase in operating expenses.
21 percent increase in marketing.

Pre-provision earnings decreased 5 percent to $3.2 billion(2).
Provision for credit losses increased 5 percent to $1.9 billion:

Net charge-offs of $1.8 billion.
$98 million reserve build.

Net interest margin of 7.03 percent, down 5 basis points.
Efficiency ratio of 53.89 percent.

Efficiency ratio excluding adjusting items was 52.50 percent(1).

Fourth Quarter 2017 Balance Sheet Summary:

Common equity Tier 1 capital ratio under Basel III Standardized Approach of 10.3 percent at December 31, 2017.
Period-end loans held for investment in the quarter increased $2.1 billion, or 1 percent, to $254.5 billion.

Domestic Card period-end loans increased $5.3 billion, or 5 percent, to $105.3 billion.
Consumer Banking period-end loans decreased $486 million, or 1 percent, to $75.1 billion:

Auto period-end loans increased $701 million, or 1 percent, to $54.0 billion.
Home loans period-end loans decreased $1.2 billion, or 6 percent, to $17.6 billion, primarily driven by run-off of acquired portfolios.

Commercial Banking period-end loans decreased $3.1 billion, or 5 percent, to $64.6 billion.

Average loans held for investment in the quarter increased $6.7 billion, or 3 percent, to $252.6 billion.

Domestic Card average loans increased $7.4 billion, or 8 percent, to $101.1 billion.
Consumer Banking average loans decreased $74 million, or less than 1 percent, to $75.3 billion:

Auto average loans increased $1.1 billion, or 2 percent, to $53.7 billion.
Home loans average loans decreased $1.2 billion, or 6 percent, to $18.1 billion, primarily driven by run-off of acquired portfolios.

Commercial Banking average loans decreased $659 million, or 1 percent, to $67.2 billion.

⁽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.

Period-end total deposits increased $4.6 billion, or 2 percent, to $243.7 billion, while average deposits increased $2.7 billion, or 1 percent, to $241.6 billion.
Interest-bearing deposits rate paid increased 8 basis points to 0.85 percent.

All comparisons below are for the full year of 2017 compared with the full year of 2016 unless otherwise noted.

2017 Full Year Income Statement Summary:

Total net revenue increased 7 percent to $27.2 billion.
Total non-interest expense increased 5 percent to $14.2 billion:

8 percent decrease in marketing.
7 percent increase in operating expenses.

Pre-provision earnings increased 9 percent to $13.0 billion(2).
Provision for credit losses increased 17 percent to $7.6 billion.
Efficiency ratio of 52.11 percent.

Efficiency ratio excluding adjusting items was 51.02 percent(1).

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on January 23, 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 February 6, 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, 2016.

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 $243.7 billion in deposits and $365.7 billion in total assets as of December 31, 2017. 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⁾


⁽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⁾
Fourth Quarter 2017
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:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP 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, 2017 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

											2017 Q4 vs.				Year Ended December 31,
(Dollars in millions, except per share data and as noted)	2017		2017		2017		2017		2016		2017		2016						2017 vs.
(Dollars in millions, except per share data and as noted)	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2017		2016		2016
Income Statement
Net interest income	$	5,813	$	5,700	$	5,473	$	5,474	$	5,447	2	%	7	%	$	22,460	$	20,873	8	%
Non-interest income	1,200		1,285		1,231		1,061		1,119		(7)		7		4,777		4,628		3
Total net revenue⁽¹⁾	7,013		6,985		6,704		6,535		6,566		—		7		27,237		25,501		7
Provision for credit losses	1,926		1,833		1,800		1,992		1,752		5		10		7,551		6,459		17
Non-interest expense:
Marketing	460		379		435		396		575		21		(20)		1,670		1,811		(8)
Operating expenses	3,319		3,188		2,979		3,038		3,104		4		7		12,524		11,747		7
Total non-interest expense	3,779		3,567		3,414		3,434		3,679		6		3		14,194		13,558		5
Income from continuing operations before income taxes	1,308		1,585		1,490		1,109		1,135		(17)		15		5,492		5,484		—
Income tax provision	2,170		448		443		314		342		**		**		3,375		1,714		97
Income (loss) from continuing operations, net of tax	(862)		1,137		1,047		795		793		**		**		2,117		3,770		(44)
Income (loss) from discontinued operations, net of tax⁽²⁾	(109)		(30)		(11)		15		(2)		**		**		(135)		(19)		**
Net income (loss)	(971)		1,107		1,036		810		791		**		**		1,982		3,751		(47)
Dividends and undistributed earnings allocated to participating securities⁽³⁾	(1)		(8)		(8)		(5)		(6)		(88)		(83)		(13)		(24)		(46)
Preferred stock dividends	(80)		(52)		(80)		(53)		(75)		54		7		(265)		(214)		24
Net income (loss) available to common stockholders	$	(1,052)	$	1,047	$	948	$	752	$	710	**		**		$	1,704	$	3,513	(51)
Common Share Statistics
Basic earnings per common share:⁽³⁾
Net income (loss) from continuing operations	$	(1.95)	$	2.22	$	1.98	$	1.53	$	1.47	**		**		$	3.80	$	7.00	(46)	%
Income (loss) from discontinued operations	(0.22)		(0.06)		(0.02)		0.03		—		**		**		(0.28)		(0.04)		**
Net income (loss) per basic common share	$	(2.17)	$	2.16	$	1.96	$	1.56	$	1.47	**		**		$	3.52	$	6.96	(49)
Diluted earnings per common share:⁽³⁾
Net income (loss) from continuing operations	$	(1.95)	$	2.20	$	1.96	$	1.51	$	1.45	**		**		$	3.76	$	6.93	(46)
Income (loss) from discontinued operations	(0.22)		(0.06)		(0.02)		0.03		—		**		**		(0.27)		(0.04)		**
Net income (loss) per diluted common share	$	(2.17)	$	2.14	$	1.94	$	1.54	$	1.45	**		**		$	3.49	$	6.89	(49)
Weighted-average common shares outstanding (in millions):
Basic	485.7		484.9		484.0		482.3		483.5		—		—		484.2		504.9		(4)
Diluted	485.7		489.0		488.1		487.9		489.2		(1)	%	(1)	%	488.6		509.8		(4)
Common shares outstanding (period-end, in millions)	485.5		484.4		483.7		482.8		480.2		—		1		485.5		480.2		1
Dividends paid per common share	$	0.40	$	0.40	$	0.40	$	0.40	$	0.40	—		—		$	1.60	$	1.60	—
Tangible book value per common share (period-end)⁽⁴⁾	60.28		63.06		60.94		58.66		57.76		(4)		4		60.28		57.76		4

											2017 Q4 vs.				Year Ended December 31,
(Dollars in millions)	2017		2017		2017		2017		2016		2017		2016						2017 vs.
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2017		2016		2016
Balance Sheet (Period-End)
Loans held for investment⁽⁵⁾	$	254,473	$	252,422	$	244,302	$	240,588	$	245,586	1	%	4	%	$	254,473	$	245,586	4	%
Interest-earning assets	334,124		329,002		319,286		316,712		321,807		2		4		334,124		321,807		4
Total assets	365,693		361,402		350,593		348,549		357,033		1		2		365,693		357,033		2
Interest-bearing deposits	217,298		212,956		213,810		214,818		211,266		2		3		217,298		211,266		3
Total deposits	243,702		239,062		239,763		241,182		236,768		2		3		243,702		236,768		3
Borrowings	60,281		59,458		49,954		48,439		60,460		1		—		60,281		60,460		—
Common equity	44,370		45,794		44,777		43,680		43,154		(3)		3		44,370		43,154		3
Total stockholders' equity	48,730		50,154		49,137		48,040		47,514		(3)		3		48,730		47,514		3
Balance Sheet (Average Balances)
Loans held for investment⁽⁵⁾	$	252,566	$	245,822	$	242,241	$	241,505	$	240,027	3	%	5	%	$	245,565	$	233,272	5	%
Interest-earning assets	330,742		322,015		318,078		318,358		317,853		3		4		322,330		307,796		5
Total assets	363,045		355,191		349,891		351,641		350,225		2		4		354,924		339,974		4
Interest-bearing deposits	215,258		213,137		214,412		212,973		206,464		1		4		213,949		198,304		8
Total deposits	241,562		238,843		240,550		238,550		232,204		1		4		239,882		223,714		7
Borrowings	58,109		54,271		48,838		53,357		58,624		7		(1)		53,659		56,878		(6)
Common equity	46,350		45,816		44,645		43,833		43,921		1		6		45,170		45,162		—
Total stockholders' equity	50,710		50,176		49,005		48,193		47,972		1		6		49,530		48,753		2

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

																2017 Q4 vs.				Year Ended December 31,
(Dollars in millions, except as noted)	2017			2017			2017			2017			2016			2017		2016								2017 vs.
(Dollars in millions, except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2017			2016			2016
Performance Metrics
Net interest income growth (period over period)	2		%	4		%	—			—			3		%	**		**		8		%	11		%	**
Non-interest income growth (period over period)	(7)			4			16		%	(5)		%	(5)			**		**		3			1			**
Total net revenue growth (period over period)	—			4			3			—			2			**		**		7			9			**
Total net revenue margin⁽⁶⁾	8.48			8.68			8.43			8.21			8.26			(20)	bps	22	bps	8.45			8.29			16	bps
Net interest margin⁽⁷⁾	7.03			7.08			6.88			6.88			6.85			(5)		18		6.97			6.78			19
Return on average assets	(0.95)			1.28			1.20			0.90			0.91			(223)		(186)		0.60			1.11			(51)
Return on average tangible assets⁽⁸⁾	(0.99)			1.34			1.25			0.95			0.95			(233)		(194)		0.62			1.16			(54)
Return on average common equity⁽⁹⁾	(8.14)			9.40			8.59			6.73			6.48			(18)	%	(15)	%	4.07			7.82			(4)	%
Return on average tangible common equity⁽¹⁰⁾	(12.12)			14.11			13.09			10.37			10.00			(26)		(22)		6.16			11.93			(6)
Non-interest expense as a percentage of average loans held for investment	5.98			5.80			5.64			5.69			6.13			18	bps	(15)	bps	5.78			5.81			(3)	bps
Efficiency ratio⁽¹¹⁾	53.89			51.07			50.92			52.55			56.03			282		(214)		52.11			53.17			(106)
Effective income tax rate for continuing operations	165.9			28.3			29.7			28.3			30.1			138	%	136	%	61.5			31.3			30	%
Employees (in thousands), period-end	49.3			50.4			49.9			48.4			47.3			(2)		4		49.3			47.3			4
Credit Quality Metrics
Allowance for loan and lease losses	$	7,502		$	7,418		$	7,170		$	6,984		$	6,503		1	%	15	%	$	7,502		$	6,503		15	%
Allowance as a percentage of loans held for investment	2.95		%	2.94		%	2.93		%	2.90		%	2.65		%	1	bps	30	bps	2.95		%	2.65		%	30	bps
Net charge-offs	$	1,828		$	1,606		$	1,618		$	1,510		$	1,489		14	%	23	%	$	6,562		$	5,062		30	%
Net charge-off rate⁽¹²⁾	2.89		%	2.61		%	2.67		%	2.50		%	2.48		%	28	bps	41	bps	2.67		%	2.17		%	50	bps
30+ day performing delinquency rate⁽¹³⁾	3.23			2.93			2.69			2.61			2.93			30		30		3.23			2.93			30
30+ day delinquency rate	3.48			3.24			2.99			2.92			3.27			24		21		3.48			3.27			21
Capital Ratios⁽¹⁴⁾
Common equity Tier 1 capital	10.3		%	10.7		%	10.7		%	10.4		%	10.1		%	(40)	bps	20	bps	10.3		%	10.1		%	20	bps
Tier 1 capital	11.8			12.2			12.2			12.0			11.6			(40)		20		11.8			11.6			20
Total capital	14.4			14.8			14.9			14.7			14.3			(40)		10		14.4			14.3			10
Tier 1 leverage	9.9			10.5			10.3			9.9			9.9			(60)		—		9.9			9.9			—
Tangible common equity ("TCE")⁽¹⁵⁾	8.3			8.8			8.8			8.5			8.1			(50)		20		8.3			8.1			20

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

											2017 Q4 vs.				Year Ended December 31,
	2017		2017		2017		2017		2016		2017		2016						2017 vs.
(Dollars in millions, except per share data and as noted)	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2017		2016		2016
Interest income:
Loans, including loans held for sale	$	6,133	$	5,960	$	5,669	$	5,626	$	5,587	3	%	10	%	$	23,388	$	21,203	10	%
Investment securities	431		431		433		416		393		—		10		1,711		1,599		7
Other	40		29		26		28		29		38		38		123		89		38
Total interest income	6,604		6,420		6,128		6,070		6,009		3		10		25,222		22,891		10
Interest expense:
Deposits	457		410		382		353		332		11		38		1,602		1,213		32
Securitized debt obligations	91		85		82		69		65		7		40		327		216		51
Senior and subordinated notes	209		194		179		149		138		8		51		731		476		54
Other borrowings	34		31		12		25		27		10		26		102		113		(10)
Total interest expense	791		720		655		596		562		10		41		2,762		2,018		37
Net interest income	5,813		5,700		5,473		5,474		5,447		2		7		22,460		20,873		8
Provision for credit losses	1,926		1,833		1,800		1,992		1,752		5		10		7,551		6,459		17
Net interest income after provision for credit losses	3,887		3,867		3,673		3,482		3,695		1		5		14,909		14,414		3
Non-interest income:
Interchange fees, net	665		662		676		570		624		—		7		2,573		2,452		5
Service charges and other customer-related fees	394		414		418		371		412		(5)		(4)		1,597		1,646		(3)
Net securities gains (losses)	1		68		(4)		—		(4)		(99)		**		65		(11)		**
Other	140		141		141		120		87		(1)		61		542		541		—
Total non-interest income	1,200		1,285		1,231		1,061		1,119		(7)		7		4,777		4,628		3
Non-interest expense:
Salaries and associate benefits	1,521		1,524		1,383		1,471		1,336		—		14		5,899		5,202		13
Occupancy and equipment	523		471		474		471		522		11		—		1,939		1,944		—
Marketing	460		379		435		396		575		21		(20)		1,670		1,811		(8)
Professional services	274		297		279		247		312		(8)		(12)		1,097		1,075		2
Communications and data processing	306		294		289		288		297		4		3		1,177		1,169		1
Amortization of intangibles	61		61		61		62		101		—		(40)		245		386		(37)
Other	634		541		493		499		536		17		18		2,167		1,971		10
Total non-interest expense	3,779		3,567		3,414		3,434		3,679		6		3		14,194		13,558		5
Income from continuing operations before income taxes	1,308		1,585		1,490		1,109		1,135		(17)		15		5,492		5,484		—
Income tax provision	2,170		448		443		314		342		**		**		3,375		1,714		97
Income (loss) from continuing operations, net of tax	(862)		1,137		1,047		795		793		**		**		2,117		3,770		(44)
Income (loss) from discontinued operations, net of tax⁽²⁾	(109)		(30)		(11)		15		(2)		**		**		(135)		(19)		**
Net income (loss)	(971)		1,107		1,036		810		791		**		**		1,982		3,751		(47)
Dividends and undistributed earnings allocated to participating securities⁽³⁾	(1)		(8)		(8)		(5)		(6)		(88)		(83)		(13)		(24)		(46)
Preferred stock dividends	(80)		(52)		(80)		(53)		(75)		54		7		(265)		(214)		24
Net income (loss) available to common stockholders	$	(1,052)	$	1,047	$	948	$	752	$	710	**		**		$	1,704	$	3,513	(51)

											2017 Q4 vs.				Year Ended December 31,
	2017		2017		2017		2017		2016		2017		2016						2017 vs.
(Dollars in millions, except per share data and as noted)	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2017		2016		2016
Basic earnings per common share:⁽³⁾
Net income (loss) from continuing operations	$	(1.95)	$	2.22	$	1.98	$	1.53	$	1.47	**		**		$	3.80	$	7.00	(46)	%
Income (loss) from discontinued operations	(0.22)		(0.06)		(0.02)		0.03		—		**		**		(0.28)		(0.04)		**
Net income (loss) per basic common share	$	(2.17)	$	2.16	$	1.96	$	1.56	$	1.47	**		**		$	3.52	$	6.96	(49)
Diluted earnings per common share:⁽³⁾
Net income (loss) from continuing operations	$	(1.95)	$	2.20	$	1.96	$	1.51	$	1.45	**		**		$	3.76	$	6.93	(46)
Income (loss) from discontinued operations	(0.22)		(0.06)		(0.02)		0.03		—		**		**		(0.27)		(0.04)		**
Net income (loss) per diluted common share	$	(2.17)	$	2.14	$	1.94	$	1.54	$	1.45	**		**		$	3.49	$	6.89	(49)
Weighted-average common shares outstanding (in millions):
Basic common shares	485.7		484.9		484.0		482.3		483.5		—		—		484.2		504.9		(4)
Diluted common shares	485.7		489.0		488.1		487.9		489.2		(1)	%	(1)	%	488.6		509.8		(4)
Dividends paid per common share	$	0.40	$	0.40	$	0.40	$	0.40	$	0.40	—		—		$	1.60	$	1.60	—

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

											2017 Q4 vs.
	2017		2017		2017		2017		2016		2017		2016
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3		Q4
Assets:
Cash and cash equivalents:
Cash and due from banks	$	4,458	$	4,154	$	3,352	$	3,489	$	4,185	7	%	7	%
Interest-bearing deposits and other short-term investments	9,582		4,330		3,363		5,826		5,791		121		65
Total cash and cash equivalents	14,040		8,484		6,715		9,315		9,976		65		41
Restricted cash for securitization investors	312		304		300		486		2,517		3		(88)
Securities available for sale, at fair value	37,655		39,742		41,120		41,260		40,737		(5)		(8)
Securities held to maturity, at carrying value	28,984		28,650		27,720		26,170		25,712		1		13
Loans held for investment:⁽⁵⁾
Unsecuritized loans held for investment	218,806		217,659		214,864		211,038		213,824		1		2
Loans held in consolidated trusts	35,667		34,763		29,438		29,550		31,762		3		12
Total loans held for investment	254,473		252,422		244,302		240,588		245,586		1		4
Allowance for loan and lease losses	(7,502)		(7,418)		(7,170)		(6,984)		(6,503)		1		15
Net loans held for investment	246,971		245,004		237,132		233,604		239,083		1		3
Loans held for sale, at lower of cost or fair value	971		1,566		777		735		1,043		(38)		(7)
Premises and equipment, net	4,033		3,955		3,825		3,727		3,675		2		10
Interest receivable	1,536		1,426		1,346		1,368		1,351		8		14
Goodwill	14,533		14,532		14,524		14,521		14,519		—		—
Other assets	16,658		17,739		17,134		17,363		18,420		(6)		(10)
Total assets	$	365,693	$	361,402	$	350,593	$	348,549	$	357,033	1		2

											2017 Q4 vs.
	2017		2017		2017		2017		2016		2017		2016
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3		Q4
Liabilities:
Interest payable	$	413	$	301	$	376	$	260	$	327	37	%	26	%
Deposits:
Non-interest-bearing deposits	26,404		26,106		25,953		26,364		25,502		1		4
Interest-bearing deposits	217,298		212,956		213,810		214,818		211,266		2		3
Total deposits	243,702		239,062		239,763		241,182		236,768		2		3
Securitized debt obligations	20,010		17,087		18,358		18,528		18,826		17		6
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	576		767		958		1,046		992		(25)		(42)
Senior and subordinated notes	30,755		28,420		28,478		26,405		23,431		8		31
Other borrowings	8,940		13,184		2,160		2,460		17,211		(32)		(48)
Total other debt	40,271		42,371		31,596		29,911		41,634		(5)		(3)
Other liabilities	12,567		12,427		11,363		10,628		11,964		1		5
Total liabilities	316,963		311,248		301,456		300,509		309,519		2		2

Stockholders' equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	31,656		31,526		31,413		31,326		31,157		—		2
Retained earnings	30,700		31,946		31,086		30,326		29,766		(4)		3
Accumulated other comprehensive loss	(926)		(622)		(683)		(934)		(949)		49		(2)
Treasury stock, at cost	(12,707)		(12,703)		(12,686)		(12,685)		(12,467)		—		2
Total stockholders' equity	48,730		50,154		49,137		48,040		47,514		(3)		3
Total liabilities and stockholders' equity	$	365,693	$	361,402	$	350,593	$	348,549	$	357,033	1		2

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 $377 million in Q4 2017, $356 million in Q3 2017, $313 million in Q2 2017 and $321 million in both Q1 2017 and Q4 2016 for the estimated uncollectible amount of billed finance charges and fees and related losses.

⁽²⁾

The provision (benefit) for mortgage representation and warranty losses included the following activity:

2017

2016

(Dollars in millions)

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

Recorded in continuing operations

—

(1)

—

(25)

—

Recorded in discontinued operations

169

(67)

(2)

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

169

(92)

(2)

⁽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. 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.

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

2017

2016

(Dollars in millions)

PCI loans:

Period-end unpaid principal balance

11,399

12,658

13,599

14,838

15,896

Period-end loans held for investment

10,775

11,985

12,895

14,102

15,071

Average loans held for investment

11,060

12,270

13,305

14,433

15,443

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

On September 25, 2017, we completed the acquisition from Synovus Bank of the credit card assets and related liabilities of Cabela's wholly-owned subsidiary, World's Foremost Bank, which added approximately $5.7 billion to our loans held for investment portfolio as of the acquisition date ("Cabela's acquisition"). The credit quality metrics as of December 31, 2017 include the impact of this acquisition. Excluding this impact, the 30+ day performing delinquency rate as of December 31, 2017 would have been 3.28%.

⁽¹⁴⁾

Capital ratios as of the end of Q4 2017 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.

⁽¹⁵⁾

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

	2017 Q4						2017 Q3						2016 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, except as noted)	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	$	254,080	$	6,133	9.66	%	$	247,022	$	5,960	9.65	%	$	241,110	$	5,587	9.27	%
Investment securities	68,992		431		2.50		69,302		431		2.49		67,827		393		2.32
Cash equivalents and other	7,670		40		2.09		5,691		29		2.04		8,916		29		1.30
Total interest-earning assets	$	330,742	$	6,604	7.99		$	322,015	$	6,420	7.97		$	317,853	$	6,009	7.56
Interest-bearing liabilities:
Interest-bearing deposits	$	215,258	$	457	0.85		$	213,137	$	410	0.77		$	206,464	$	332	0.64
Securitized debt obligations	19,751		91		1.84		17,598		85		1.93		18,300		65		1.42
Senior and subordinated notes	30,020		209		2.78		28,753		194		2.70		23,605		138		2.34
Other borrowings and liabilities	10,355		34		1.31		9,320		31		1.33		17,654		27		0.61
Total interest-bearing liabilities	$	275,384	$	791	1.15		$	268,808	$	720	1.07		$	266,023	$	562	0.85
Net interest income/spread			$	5,813	6.84				$	5,700	6.90				$	5,447	6.71
Impact of non-interest-bearing funding					0.19						0.18						0.14
Net interest margin					7.03	%					7.08	%					6.85	%

							Year Ended December 31,
							2017						2016
							Average Balance		Interest Income/ Expense⁽¹⁾		Yield/ Rate⁽¹⁾		Average Balance		Interest Income/ Expense⁽¹⁾		Yield/ Rate⁽¹⁾
(Dollars in millions, except as noted)							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							$	246,613	$	23,388	9.48	%	$	234,338	$	21,203	9.05	%
Investment securities							68,896		1,711		2.48		66,260		1,599		2.41
Cash equivalents and other							6,821		123		1.80		7,198		89		1.24
Total interest-earning assets							$	322,330	$	25,222	7.82		$	307,796	$	22,891	7.44
Interest-bearing liabilities:
Interest-bearing deposits							$	213,949	$	1,602	0.75		$	198,304	$	1,213	0.61
Securitized debt obligations							18,237		327		1.79		16,576		216		1.30
Senior and subordinated notes							27,866		731		2.62		22,417		476		2.12
Other borrowings and liabilities							8,917		102		1.14		18,736		113		0.60
Total interest-bearing liabilities							$	268,969	$	2,762	1.03		$	256,033	$	2,018	0.79
Net interest income/spread									$	22,460	6.79				$	20,873	6.65
Impact of non-interest-bearing funding											0.18						0.13
Net interest margin											6.97	%					6.78	%


__________
⁽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

																2017 Q4 vs.				Year Ended December 31,
(Dollars in millions, except as noted)	2017 Q4			2017 Q3			2017 Q2			2017 Q1			2016 Q4			2017 Q3		2016 Q4		2017			2016			2017 vs. 2016
Loans Held For Investment (Period-End)
Credit card:
Domestic credit card	$	105,293		$	99,981		$	92,866		$	91,092		$	97,120		5	%	8	%	$	105,293		$	97,120		8	%
International card businesses	9,469			9,149			8,724			8,121			8,432			3		12		9,469			8,432			12
Total credit card	114,762			109,130			101,590			99,213			105,552			5		9		114,762			105,552			9
Consumer banking:
Auto	53,991			53,290			51,765			49,771			47,916			1		13		53,991			47,916			13
Home loan	17,633			18,820			19,724			20,738			21,584			(6)		(18)		17,633			21,584			(18)
Retail banking	3,454			3,454			3,484			3,473			3,554			—		(3)		3,454			3,554			(3)
Total consumer banking	75,078			75,564			74,973			73,982			73,054			(1)		3		75,078			73,054			3
Commercial banking:
Commercial and multifamily real estate	26,150			27,944			27,428			27,218			26,609			(6)		(2)		26,150			26,609			(2)
Commercial and industrial	38,025			39,306			39,801			39,638			39,824			(3)		(5)		38,025			39,824			(5)
Total commercial lending	64,175			67,250			67,229			66,856			66,433			(5)		(3)		64,175			66,433			(3)
Small-ticket commercial real estate	400			420			443			464			483			(5)		(17)		400			483			(17)
Total commercial banking	64,575			67,670			67,672			67,320			66,916			(5)		(3)		64,575			66,916			(3)
Other loans	58			58			67			73			64			—		(9)		58			64			(9)
Total loans held for investment	$	254,473		$	252,422		$	244,302		$	240,588		$	245,586		1		4		$	254,473		$	245,586		4
Loans Held For Investment (Average)
Credit card:
Domestic credit card	$	101,087		$	93,729		$	91,769		$	93,034		$	92,623		8	%	9	%	$	94,923		$	88,394		7	%
International card businesses	8,942			8,816			8,274			8,135			8,168			1		9		8,545			8,166			5
Total credit card	110,029			102,545			100,043			101,169			100,791			7		9		103,468			96,560			7
Consumer banking:
Auto	53,747			52,615			50,803			48,673			47,126			2		14		51,477			44,521			16
Home loan	18,109			19,302			20,203			21,149			21,984			(6)		(18)		19,681			23,358			(16)
Retail banking	3,433			3,446			3,463			3,509			3,549			—		(3)		3,463			3,543			(2)
Total consumer banking	75,289			75,363			74,469			73,331			72,659			—		4		74,621			71,422			4
Commercial banking:
Commercial and multifamily real estate	27,770			27,703			27,401			26,587			26,445			—		5		27,370			25,821			6
Commercial and industrial	39,020			39,723			39,815			39,877			39,573			(2)		(1)		39,606			38,852			2
Total commercial lending	66,790			67,426			67,216			66,464			66,018			(1)		1		66,976			64,673			4
Small-ticket commercial real estate	410			433			453			474			497			(5)		(18)		442			548			(19)
Total commercial banking	67,200			67,859			67,669			66,938			66,515			(1)		1		67,418			65,221			3
Other loans	48			55			60			67			62			(13)		(23)		58			69			(16)
Total average loans held for investment	$	252,566		$	245,822		$	242,241		$	241,505		$	240,027		3		5		$	245,565		$	233,272		5



																2017 Q4 vs.				Year Ended December 31,
	2017			2017			2017			2017			2016			2017		2016								2017 vs.
	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2017			2016			2016
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card⁽¹⁾		5.08	%		4.64	%		5.11	%		5.14	%		4.66	%	44	bps	42	bps		4.99	%		4.16	%	83	bps
International card businesses		3.92			3.08			4.08			3.69			3.35		84		57			3.69			3.33		36
Total credit card⁽¹⁾		4.99			4.51			5.02			5.02			4.56		48		43			4.88			4.09		79
Consumer banking:
Auto		2.12			1.96			1.70			1.64			2.07		16		5			1.86			1.69		17
Home loan		0.23			0.02			0.04			0.03			0.08		21		15			0.08			0.06		2
Retail banking		1.94			2.10			1.71			1.92			1.73		(16)		21			1.92			1.53		39
Total consumer banking		1.66			1.47			1.25			1.19			1.45		19		21			1.39			1.15		24
Commercial banking:
Commercial and multifamily real estate		(0.01)			(0.01)			0.03			—			(0.02)		—		1			—			(0.01)		1
Commercial and industrial		1.47			1.64			1.34			0.22			0.80		(17)		67			1.17			0.75		42
Total commercial lending		0.86			0.97			0.81			0.13			0.47		(11)		39			0.69			0.45		24
Small-ticket commercial real estate		(0.05)			0.12			(0.22)			1.05			(0.02)		(17)		(3)			0.24			0.30		(6)
Total commercial banking		0.85			0.96			0.80			0.14			0.47		(11)		38			0.69			0.45		24
Total net charge-offs		2.89			2.61			2.67			2.50			2.48		28		41			2.67			2.17		50
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card⁽¹⁾		4.01	%		3.94	%		3.63	%		3.71	%		3.95	%	7	bps	6	bps		4.01	%		3.95	%	6	bps
International card businesses		3.64			3.54			3.28			3.39			3.36		10		28			3.64			3.36		28
Total credit card⁽¹⁾		3.98			3.91			3.60			3.68			3.91		7		7			3.98			3.91		7
Consumer banking:
Auto		6.51			5.71			5.40			5.03			6.12		80		39			6.51			6.12		39
Home loan		0.20			0.17			0.14			0.15			0.20		3		—			0.20			0.20		—
Retail banking		0.76			0.73			0.54			0.59			0.70		3		6			0.76			0.70		6
Total consumer banking		4.76			4.10			3.79			3.45			4.10		66		66			4.76			4.10		66
Nonperforming Loans and Nonperforming Assets Rates⁽²⁾⁽³⁾
Credit card:
International card businesses		0.25	%		0.28	%		0.37	%		0.47	%		0.50	%	(3)	bps	(25)	bps		0.25	%		0.50	%	(25)	bps
Total credit card		0.02			0.02			0.03			0.04			0.04		—		(2)			0.02			0.04		(2)
Consumer banking:
Auto		0.70			0.65			0.53			0.36			0.47		5		23			0.70			0.47		23
Home loan		1.00			0.84			1.31			1.27			1.26		16		(26)			1.00			1.26		(26)
Retail banking		1.00			0.97			0.96			0.82			0.86		3		14			1.00			0.86		14
Total consumer banking		0.78			0.71			0.75			0.64			0.72		7		6			0.78			0.72		6
Commercial banking:
Commercial and multifamily real estate		0.15			0.23			0.13			0.13			0.11		(8)		4			0.15			0.11		4
Commercial and industrial		0.63			1.82			1.62			2.02			2.48		(119)		(185)			0.63			2.48		(185)
Total commercial lending		0.43			1.16			1.01			1.25			1.53		(73)		(110)			0.43			1.53		(110)
Small-ticket commercial real estate		1.65			1.59			1.89			1.65			0.85		6		80			1.65			0.85		80
Total commercial banking		0.44			1.16			1.01			1.25			1.53		(72)		(109)			0.44			1.53		(109)
Total nonperforming loans		0.35			0.54			0.53			0.57			0.65		(19)		(30)			0.35			0.65		(30)
Total nonperforming assets		0.41			0.60			0.60			0.66			0.76		(19)		(35)			0.41			0.76		(35)

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, 2017
	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⁽⁴⁾		Total
Allowance for loan and lease losses:
Balance as of September 30, 2017	$	5,155	$	379	$	5,534	$	1,083	$	59	$	71	$	1,213	$	669	$	2	$	7,418
Charge-offs	(1,555)		(122)		(1,677)		(454)		(13)		(21)		(488)		(147)		2		(2,310)
Recoveries	271		34		305		168		3		5		176		4		(3)		482
Net charge-offs	(1,284)		(88)		(1,372)		(286)		(10)		(16)		(312)		(143)		(1)		(1,828)
Provision for loan and lease losses	1,402		84		1,486		322		9		10		341		103		—		1,930
Allowance build (release) for loan and lease losses	118		(4)		114		36		(1)		(6)		29		(40)		(1)		102
Other changes⁽⁵⁾	—		—		—		—		—		—		—		(18)		—		(18)
Balance as of December 31, 2017	5,273		375		5,648		1,119		58		65		1,242		611		1		7,502
Reserve for unfunded lending commitments:
Balance as of September 30, 2017	—		—		—		—		—		8		8		120		—		128
Benefit for losses on unfunded lending commitments	—		—		—		—		—		(1)		(1)		(3)		—		(4)
Balance as of December 31, 2017	—		—		—		—		—		7		7		117		—		124
Combined allowance and reserve as of December 31, 2017	$	5,273	$	375	$	5,648	$	1,119	$	58	$	72	$	1,249	$	728	$	1	$	7,626

	Year Ended December 31, 2017
	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⁽⁴⁾		Total
Allowance for loan and lease losses:
Balance as of December 31, 2016	$	4,229	$	377	$	4,606	$	957	$	65	$	80	$	1,102	$	793	$	2	$	6,503
Charge-offs	(5,844)		(477)		(6,321)		(1,573)		(22)		(82)		(1,677)		(481)		(34)		(8,513)
Recoveries	1,105		162		1,267		616		7		16		639		16		29		1,951
Net charge-offs	(4,739)		(315)		(5,054)		(957)		(15)		(66)		(1,038)		(465)		(5)		(6,562)
Provision for loan and lease losses	5,783		283		6,066		1,119		10		51		1,180		313		4		7,563
Allowance build (release) for loan and lease losses	1,044		(32)		1,012		162		(5)		(15)		142		(152)		(1)		1,001
Other changes⁽⁵⁾	—		30		30		—		(2)		—		(2)		(30)		—		(2)
Balance as of December 31, 2017	5,273		375		5,648		1,119		58		65		1,242		611		1		7,502
Reserve for unfunded lending commitments:
Balance as of December 31, 2016	—		—		—		—		—		7		7		129		—		136
Benefit for losses on unfunded lending commitments	—		—		—		—		—		—		—		(12)		—		(12)
Balance as of December 31, 2017	—		—		—		—		—		7		7		117		—		124
Combined allowance and reserve as of December 31, 2017	$	5,273	$	375	$	5,648	$	1,119	$	58	$	72	$	1,249	$	728	$	1	$	7,626

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

	Three Months Ended December 31, 2017										Year Ended December 31, 2017
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Other⁽⁶⁾		Total		Credit Card		Consumer Banking		Commercial Banking		Other⁽⁶⁾		Total
Net interest income	$	3,568	$	1,636	$	566	$	43	$	5,813	$	13,648	$	6,380	$	2,261	$	171	$	22,460
Non-interest income	847		179		188		(14)		1,200		3,325		749		708		(5)		4,777
Total net revenue⁽⁷⁾	4,415		1,815		754		29		7,013		16,973		7,129		2,969		166		27,237
Provision for credit losses	1,486		340		100		—		1,926		6,066		1,180		301		4		7,551
Non-interest expense	2,108		1,081		437		153		3,779		7,916		4,233		1,603		442		14,194
Income (loss) from continuing operations before income taxes	821		394		217		(124)		1,308		2,991		1,716		1,065		(280)		5,492
Income tax provision	297		144		79		1,650		2,170		1,071		626		389		1,289		3,375
Income (loss) from continuing operations, net of tax	$	524	$	250	$	138	$	(1,774)	$	(862)	$	1,920	$	1,090	$	676	$	(1,569)	$	2,117

	Three Months Ended September 30, 2017
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Other		Total
Net interest income	$	3,440	$	1,649	$	560	$	51	$	5,700
Non-interest income	865		192		179		49		1,285
Total net revenue⁽⁷⁾	4,305		1,841		739		100		6,985
Provision for credit losses	1,466		293		63		11		1,833
Non-interest expense	1,961		1,051		394		161		3,567
Income (loss) from continuing operations before income taxes	878		497		282		(72)		1,585
Income tax provision (benefit)	306		181		103		(142)		448
Income from continuing operations, net of tax	$	572	$	316	$	179	$	70	$	1,137

	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 (loss)⁽⁷⁾	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

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

																2017 Q4 vs.				Year Ended December 31,
	2017			2017			2017			2017			2016			2017		2016								2017 vs.
(Dollars in millions, except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2017			2016			2016
Credit Card
Earnings:
Net interest income	$	3,568		$	3,440		$	3,294		$	3,346		$	3,353		4	%	6	%	$	13,648		$	12,635		8	%
Non-interest income	847			865			875			738			849			(2)		—		3,325			3,380			(2)
Total net revenue	4,415			4,305			4,169			4,084			4,202			3		5		16,973			16,015			6
Provision for credit losses	1,486			1,466			1,397			1,717			1,322			1		12		6,066			4,926			23
Non-interest expense	2,108			1,961			1,918			1,929			2,073			7		2		7,916			7,703			3
Income from continuing operations before income taxes	821			878			854			438			807			(6)		2		2,991			3,386			(12)
Income tax provision	297			306			301			167			295			(3)		1		1,071			1,226			(13)
Income from continuing operations, net of tax	$	524		$	572		$	553		$	271		$	512		(8)		2		$	1,920		$	2,160		(11)
Selected performance metrics:
Period-end loans held for investment	$	114,762		$	109,130		$	101,590		$	99,213		$	105,552		5		9		$	114,762		$	105,552		9
Average loans held for investment	110,029			102,545			100,043			101,169			100,791			7		9		103,468			96,560			7
Average yield on loans held for investment⁽⁸⁾	15.13		%	15.58		%	15.14		%	14.99		%	14.93		%	(45)	bps	20	bps	15.21		%	14.68		%	53	bps
Total net revenue margin⁽⁹⁾	16.05			16.79			16.67			16.14			16.68			(74)		(63)		16.40			16.59			(19)
Net charge-off rate⁽¹⁾	4.99			4.51			5.02			5.02			4.56			48		43		4.88			4.09			79
30+ day performing delinquency rate⁽¹⁾	3.98			3.91			3.60			3.68			3.91			7		7		3.98			3.91			7
30+ day delinquency rate	3.99			3.92			3.62			3.71			3.94			7		5		3.99			3.94			5
Nonperforming loan rate⁽²⁾	0.02			0.02			0.03			0.04			0.04			—		(2)		0.02			0.04			(2)
Purchase volume⁽¹⁰⁾	$	95,659		$	84,505		$	83,079		$	73,197		$	82,824		13	%	15	%	$	336,440		$	307,138		10	%

																2017 Q4 vs.				Year Ended December 31,
	2017			2017			2017			2017			2016			2017		2016								2017 vs.
(Dollars in millions, except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2017			2016			2016
Domestic Card
Earnings:
Net interest income	$	3,268		$	3,132		$	3,011		$	3,093		$	3,090		4	%	6	%	$	12,504		$	11,571		8	%
Non-interest income	781			787			802			699			791			(1)		(1)		3,069			3,116			(2)
Total net revenue	4,049			3,919			3,813			3,792			3,881			3		4		15,573			14,687			6
Provision for credit losses	1,402			1,417			1,327			1,637			1,229			(1)		14		5,783			4,555			27
Non-interest expense	1,880			1,754			1,727			1,717			1,859			7		1		7,078			6,895			3
Income from continuing operations before income taxes	767			748			759			438			793			3		(3)		2,712			3,237			(16)
Income tax provision	280			273			277			160			288			3		(3)		990			1,178			(16)
Income from continuing operations, net of tax	$	487		$	475		$	482		$	278		$	505		3		(4)		$	1,722		$	2,059		(16)
Selected performance metrics:
Period-end loans held for investment	$	105,293		$	99,981		$	92,866		$	91,092		$	97,120		5		8		$	105,293		$	97,120		8
Average loans held for investment	101,087			93,729			91,769			93,034			92,623			8		9		94,923			88,394			7
Average yield on loans held for investment⁽⁸⁾	15.08		%	15.51		%	15.07		%	15.01		%	14.91		%	(43)	bps	17	bps	15.16		%	14.62		%	54	bps
Total net revenue margin⁽⁹⁾	16.03			16.72			16.62			16.30			16.76			(69)		(73)		16.41			16.62			(21)
Net charge-off rate⁽¹⁾	5.08			4.64			5.11			5.14			4.66			44		42		4.99			4.16			83
30+ day delinquency rate	4.01			3.94			3.63			3.71			3.95			7		6		4.01			3.95			6
Purchase volume⁽¹⁰⁾	$	87,287		$	76,806		$	75,781		$	66,950		$	75,639		14	%	15	%	$	306,824		$	280,637		9	%
Refreshed FICO scores:⁽¹¹⁾
Greater than 660	66		%	65		%	64		%	63		%	64		%	1		2		66		%	64		%	2
660 or below	34			35			36			37			36			(1)		(2)		34			36			(2)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

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

																2017 Q4 vs.				Year Ended December 31,
	2017			2017			2017			2017			2016			2017		2016								2017 vs.
(Dollars in millions, except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2017			2016			2016
Consumer Banking
Earnings:
Net interest income	$	1,636		$	1,649		$	1,578		$	1,517		$	1,498		(1)	%	9	%	$	6,380		$	5,829		9	%
Non-interest income	179			192			183			195			166			(7)		8		749			733			2
Total net revenue	1,815			1,841			1,761			1,712			1,664			(1)		9		7,129			6,562			9
Provision for credit losses	340			293			268			279			365			16		(7)		1,180			1,055			12
Non-interest expense	1,081			1,051			1,059			1,042			1,109			3		(3)		4,233			4,139			2
Income from continuing operations before income taxes	394			497			434			391			190			(21)		107		1,716			1,368			25
Income tax provision	144			181			158			143			70			(20)		106		626			498			26
Income from continuing operations, net of tax	$	250		$	316		$	276		$	248		$	120		(21)		108		$	1,090		$	870		25
Selected performance metrics:
Period-end loans held for investment	$	75,078		$	75,564		$	74,973		$	73,982		$	73,054		(1)		3		$	75,078		$	73,054		3
Average loans held for investment	75,289			75,363			74,469			73,331			72,659			—		4		74,621			71,422			4
Average yield on loans held for investment⁽⁸⁾	6.84		%	6.79		%	6.56		%	6.48		%	6.50		%	5	bps	34	bps	6.67		%	6.34		%	33	bps
Auto loan originations	$	6,215		$	7,043		$	7,453		$	7,025		$	6,542		(12)	%	(5)	%	$	27,737		$	25,719		8	%
Period-end deposits	185,842			184,719			186,607			188,216			181,917			1		2		185,842			181,917			2
Average deposits	184,799			185,072			186,989			183,936			180,019			—		3		185,201			177,129			5
Average deposits interest rate	0.69		%	0.62		%	0.59		%	0.57		%	0.57		%	7	bps	12	bps	0.62		%	0.56		%	6	bps
Net charge-off rate	1.66			1.47			1.25			1.19			1.45			19		21		1.39			1.15			24
30+ day performing delinquency rate	4.76			4.10			3.79			3.45			4.10			66		66		4.76			4.10			66
30+ day delinquency rate	5.34			4.61			4.33			3.93			4.67			73		67		5.34			4.67			67
Nonperforming loan rate⁽²⁾	0.78			0.71			0.75			0.64			0.72			7		6		0.78			0.72			6
Nonperforming asset rate⁽³⁾	0.91			0.88			0.96			0.92			1.09			3		(18)		0.91			1.09			(18)
Auto—At origination FICO scores:⁽¹²⁾
Greater than 660	51		%	51		%	51		%	51		%	52		%	—		(1)	%	51		%	52		%	(1)	%
621 - 660	18			18			18			18			17			—		1		18			17			1
620 or below	31			31			31			31			31			—		—		31			31			—
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

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

																2017 Q4 vs.				Year Ended December 31,
	2017			2017			2017			2017			2016			2017		2016								2017 vs.
(Dollars in millions, except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2017			2016			2016
Commercial Banking
Earnings:
Net interest income	$	566		$	560		$	569		$	566		$	565		1	%	—		$	2,261		$	2,216		2	%
Non-interest income	188			179			183			158			175			5		7	%	708			578			22
Total net revenue⁽⁷⁾	754			739			752			724			740			2		2		2,969			2,794			6
Provision (benefit) for credit losses	100			63			140			(2)			66			59		52		301			483			(38)
Non-interest expense	437			394			381			391			393			11		11		1,603			1,407			14
Income from continuing operations before income taxes	217			282			231			335			281			(23)		(23)		1,065			904			18
Income tax provision	79			103			85			122			102			(23)		(23)		389			329			18
Income from continuing operations, net of tax	$	138		$	179		$	146		$	213		$	179		(23)		(23)		$	676		$	575		18
Selected performance metrics:
Period-end loans held for investment	$	64,575		$	67,670		$	67,672		$	67,320		$	66,916		(5)		(3)		$	64,575		$	66,916		(3)
Average loans held for investment	67,200			67,859			67,669			66,938			66,515			(1)		1		67,418			65,221			3
Average yield on loans held for investment⁽⁷⁾⁽⁸⁾	4.03		%	3.98		%	3.81		%	3.65		%	3.55		%	5	bps	48	bps	3.87		%	3.47		%	40	bps
Period-end deposits	$	33,938		$	32,783		$	33,153		$	33,735		$	33,866		4	%	—		$	33,938		$	33,866		—
Average deposits	34,117			33,197			34,263			34,219			34,029			3		—		33,947			33,841			—
Average deposits interest rate	0.46		%	0.42		%	0.36		%	0.31		%	0.30		%	4	bps	16	bps	0.39		%	0.28		%	11	bps
Net charge-off rate	0.85			0.96			0.80			0.14			0.47			(11)		38		0.69			0.45			24
Nonperforming loan rate⁽²⁾	0.44			1.16			1.01			1.25			1.53			(72)		(109)		0.44			1.53			(109)
Nonperforming asset rate⁽³⁾	0.52			1.22			1.04			1.27			1.54			(70)		(102)		0.52			1.54			(102)
Risk category:⁽¹³⁾
Noncriticized	$	61,162		$	63,501		$	63,802		$	63,390		$	62,828		(4)	%	(3)	%	$	61,162		$	62,828		(3)	%
Criticized performing	2,649			2,878			2,660			2,492			2,453			(8)		8		2,649			2,453			8
Criticized nonperforming	284			788			686			844			1,022			(64)		(72)		284			1,022			(72)
PCI loans	480			503			524			594			613			(5)		(22)		480			613			(22)
Total commercial loans	$	64,575		$	67,670		$	67,672		$	67,320		$	66,916		(5)		(3)		$	64,575		$	66,916		(3)
Risk category as a percentage of period-end loans held for investment:⁽¹³⁾
Noncriticized	94.7		%	93.8		%	94.3		%	94.2		%	93.9		%	90	bps	80	bps	94.7		%	93.9		%	80	bps
Criticized performing	4.1			4.3			3.9			3.7			3.7			(20)		40		4.1			3.7			40
Criticized nonperforming	0.4			1.2			1.0			1.2			1.5			(80)		(110)		0.4			1.5			(110)
PCI loans	0.8			0.7			0.8			0.9			0.9			10		(10)		0.8			0.9			(10)
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

											2017 Q4 vs.				Year Ended December 31,
	2017		2017		2017		2017		2016		2017		2016						2017 vs.
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4		Q3		Q4		2017		2016		2016
Other⁽⁶⁾
Earnings:
Net interest income	$	43	$	51	$	32	$	45	$	31	(16)	%	39	%	$	171	$	193	(11)	%
Non-interest income	(14)		49		(10)		(30)		(71)		**		(80)		(5)		(63)		(92)
Total net revenue (loss)⁽⁷⁾	29		100		22		15		(40)		(71)		**		166		130		28
Provision (benefit) for credit losses	—		11		(5)		(2)		(1)		**		**		4		(5)		**
Non-interest expense⁽¹⁴⁾	153		161		56		72		104		(5)		47		442		309		43
Loss from continuing operations before income taxes	(124)		(72)		(29)		(55)		(143)		72		(13)		(280)		(174)		61
Income tax provision (benefit)	1,650		(142)		(101)		(118)		(125)		**		**		1,289		(339)		**
Income (loss) from continuing operations, net of tax	$	(1,774)	$	70	$	72	$	63	$	(18)	**		**		$	(1,569)	$	165	**
Selected performance metrics:
Period-end loans held for investment	$	58	$	58	$	67	$	73	$	64	—		(9)		$	58	$	64	(9)
Average loans held for investment	48		55		60		67		62		(13)		(23)		58		69		(16)
Period-end deposits	23,922		21,560		20,003		19,231		20,985		11		14		23,922		20,985		14
Average deposits	22,646		20,574		19,298		20,395		18,156		10		25		20,734		12,744		63
Total
Earnings:
Net interest income	$	5,813	$	5,700	$	5,473	$	5,474	$	5,447	2	%	7	%	$	22,460	$	20,873	8	%
Non-interest income	1,200		1,285		1,231		1,061		1,119		(7)		7		4,777		4,628		3
Total net revenue	7,013		6,985		6,704		6,535		6,566		—		7		27,237		25,501		7
Provision for credit losses	1,926		1,833		1,800		1,992		1,752		5		10		7,551		6,459		17
Non-interest expense	3,779		3,567		3,414		3,434		3,679		6		3		14,194		13,558		5
Income from continuing operations before income taxes	1,308		1,585		1,490		1,109		1,135		(17)		15		5,492		5,484		—
Income tax provision	2,170		448		443		314		342		**		**		3,375		1,714		97
Income (loss) from continuing operations, net of tax	$	(862)	$	1,137	$	1,047	$	795	$	793	**		**		$	2,117	$	3,770	(44)
Selected performance metrics:
Period-end loans held for investment	$	254,473	$	252,422	$	244,302	$	240,588	$	245,586	1		4		$	254,473	$	245,586	4
Average loans held for investment	252,566		245,822		242,241		241,505		240,027		3		5		245,565		233,272		5
Period-end deposits	243,702		239,062		239,763		241,182		236,768		2		3		243,702		236,768		3
Average deposits	241,562		238,843		240,550		238,550		232,204		1		4		239,882		223,714		7

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)

⁽¹⁾	On September 25, 2017, we completed the Cabela's acquisition. The total credit card and domestic credit card metrics as of and for the three months and year ended December 31, 2017 include the impact of this acquisition. Excluding this impact (i) the total credit card and domestic credit card net charge-off rates for the three months ended December 31, 2017 would have been 5.24% and 5.36%, respectively; (ii) the total credit card and domestic credit card net charge-off rates for the year ended December 31, 2017 would have been 4.95% and 5.07%, respectively; and (iii) the total credit card and domestic credit card 30+ day performing delinquency rates as of December 31, 2017 would have been 4.14% and 4.18%, respectively.
⁽²⁾	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.
⁽³⁾	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.
⁽⁴⁾	Primarily consists of the legacy loan portfolio of our discontinued GreenPoint mortgage operations.
⁽⁵⁾	Represents foreign currency translation adjustments and the net impact of loan transfers and sales.
⁽⁶⁾	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 and the year ended December 31, 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.
⁽⁷⁾	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 (35% for all periods presented) with offsetting reclassifications 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 for loans both classified as held for investment and held for sale, 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)													December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Regulatory Capital Metrics
Common equity excluding AOCI													$	45,296		$	46,415		$	45,459		$	44,614		$	44,103
Adjustments:
AOCI⁽²⁾⁽³⁾													(808)			(538)			(593)			(807)			(674)
Goodwill, net of related deferred tax liabilities													(14,380)			(14,300)			(14,299)			(14,302)			(14,307)
Intangible assets, net of related deferred tax liabilities⁽³⁾													(330)			(372)			(419)			(465)			(384)
Other													258			93			78			121			65
Common equity Tier 1 capital													$	30,036		$	31,298		$	30,226		$	29,161		$	28,803
Tier 1 capital													$	34,396		$	35,657		$	34,585		$	33,519		$	33,162
Total capital⁽⁴⁾													41,963			43,272			42,101			40,979			40,817
Risk-weighted assets													292,256			292,041			283,231			279,302			285,756
Adjusted average assets⁽⁵⁾													348,424			340,579			335,248			336,990			335,835
Capital Ratios
Common equity Tier 1 capital⁽⁶⁾													10.3		%	10.7		%	10.7		%	10.4		%	10.1		%
Tier 1 capital⁽⁷⁾													11.8			12.2			12.2			12.0			11.6
Total capital⁽⁸⁾													14.4			14.8			14.9			14.7			14.3
Tier 1 leverage⁽⁵⁾													9.9			10.5			10.3			9.9			9.9
Tangible common equity ("TCE")⁽⁹⁾													8.3			8.8			8.8			8.5			8.1

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.

	Three Months Ended									Nine Months Ended									Year Ended
	December 31, 2017									September 30, 2017									December 31, 2017
(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	$	5,813		$	11		$	5,824		$	16,647		$	33		$	16,680		$	22,460		$	44		$	22,504
Non-interest income	1,200			9			1,209			3,577			37			3,614			4,777			46			4,823
Total net revenue	7,013			20			7,033			20,224			70			20,294			27,237			90			27,327
Provision for credit losses	1,926			—			1,926			5,625			(88)			5,537			7,551			(88)			7,463
Non-interest expense	3,779			(87)			3,692			10,415			(166)			10,249			14,194			(253)			13,941
Income from continuing operations before income taxes	1,308			107			1,415			4,184			324			4,508			5,492			431			5,923
Income tax provision (benefit)	2,170			(1,742)			428			1,205			82			1,287			3,375			(1,660)			1,715
Income (loss) from continuing operations, net of tax	(862)			1,849			987			2,979			242			3,221			2,117			2,091			4,208
Income (loss) from discontinued operations, net of tax	(109)			—			(109)			(26)			—			(26)			(135)			—			(135)
Net income (loss)	(971)			1,849			878			2,953			242			3,195			1,982			2,091			4,073
Dividends and undistributed earnings allocated to participating securities⁽¹²⁾	(1)			(5)			(6)			(21)			—			(21)			(13)			(15)			(28)
Preferred stock dividends	(80)			—			(80)			(185)			—			(185)			(265)			—			(265)
Net income (loss) available to common stockholders	$	(1,052)		$	1,844		$	792		$	2,747		$	242		$	2,989		$	1,704		$	2,076		$	3,780
Selected performance metrics:
Diluted EPS⁽¹²⁾	$	(2.17)		$	3.79		$	1.62		$	5.63		$	0.49		$	6.12		$	3.49		$	4.25		$	7.74
Efficiency ratio	53.89		%	(139)		bps	52.50		%	51.50		%	(100)		bps	50.50		%	52.11		%	(109)		bps	51.02		%

	Three Months Ended									Nine Months Ended									Year Ended
	December 31, 2016									September 30, 2016									December 31, 2016
(Dollars in millions, except per share data and as noted)	Reported Results			Adj.⁽¹¹⁾			Adjusted Results			Reported Results			Adj.⁽¹¹⁾			Adjusted Results			Reported Results			Adj.⁽¹¹⁾			Adjusted Results
Selected income statement data:
Net interest income	$	5,447		$	13		$	5,460		$	15,426		$	41		$	15,467		$	20,873		$	54		$	20,927
Non-interest income	1,119			14			1,133			3,509			21			3,530			4,628			35			4,663
Total net revenue	6,566			27			6,593			18,935			62			18,997			25,501			89			25,590
Provision for credit losses	1,752			—			1,752			4,707			—			4,707			6,459			—			6,459
Non-interest expense	3,679			(45)			3,634			9,879			(31)			9,848			13,558			(76)			13,482
Income from continuing operations before income taxes	1,135			72			1,207			4,349			93			4,442			5,484			165			5,649
Income tax provision (benefit)	342			10			352			1,372			(7)			1,365			1,714			3			1,717
Income from continuing operations, net of tax	793			62			855			2,977			100			3,077			3,770			162			3,932
Income (loss) from discontinued operations, net of tax	(2)			—			(2)			(17)			—			(17)			(19)			—			(19)
Net income	791			62			853			2,960			100			3,060			3,751			162			3,913
Dividends and undistributed earnings allocated to participating securities⁽¹²⁾	(6)			—			(6)			(18)			—			(18)			(24)			—			(24)
Preferred stock dividends	(75)			—			(75)			(139)			—			(139)			(214)			—			(214)
Net income available to common stockholders	$	710		$	62		$	772		$	2,803		$	100		$	2,903		$	3,513		$	162		$	3,675
Selected performance metrics:
Diluted EPS⁽¹²⁾	$	1.45		$	0.13		$	1.58		$	5.42		$	0.20		$	5.62		$	6.89		$	0.32		$	7.21
Efficiency ratio	56.03		%	(91)		bps	55.12		%	52.17		%	(33)		bps	51.84		%	53.17		%	(49)		bps	52.68		%

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 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 following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.

													2017			2017			2017			2017			2016
(Dollars in millions)													Q4			Q3			Q2			Q1			Q4
Tangible Common Equity (Period-End)
Stockholders' equity													$	48,730		$	50,154		$	49,137		$	48,040		$	47,514
Goodwill and intangible assets⁽¹³⁾													(15,106)			(15,249)			(15,301)			(15,360)			(15,420)
Noncumulative perpetual preferred stock													(4,360)			(4,360)			(4,360)			(4,360)			(4,360)
Tangible common equity													$	29,264		$	30,545		$	29,476		$	28,320		$	27,734
Tangible Common Equity (Average)
Stockholders' equity													$	50,710		$	50,176		$	49,005		$	48,193		$	47,972
Goodwill and intangible assets⁽¹³⁾													(15,223)			(15,277)			(15,336)			(15,395)			(15,455)
Noncumulative perpetual preferred stock													(4,360)			(4,360)			(4,360)			(4,360)			(4,051)
Tangible common equity													$	31,127		$	30,539		$	29,309		$	28,438		$	28,466
Tangible Assets (Period-End)
Total assets													$	365,693		$	361,402		$	350,593		$	348,549		$	357,033
Goodwill and intangible assets⁽¹³⁾													(15,106)			(15,249)			(15,301)			(15,360)			(15,420)
Tangible assets													$	350,587		$	346,153		$	335,292		$	333,189		$	341,613
Tangible Assets (Average)
Total assets													$	363,045		$	355,191		$	349,891		$	351,641		$	350,225
Goodwill and intangible assets⁽¹³⁾													(15,223)			(15,277)			(15,336)			(15,395)			(15,455)
Tangible assets													$	347,822		$	339,914		$	334,555		$	336,246		$	334,770


^__________
⁽¹⁾	Regulatory capital metrics and capital ratios as of December 31, 2017 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 60% for 2016 and 80% for 2017.
⁽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⁾	The adjustments in 2017 consist of:

	Three Months Ended		Nine Months Ended		Year Ended
(Dollars in millions)	December 31, 2017		September 30, 2017		December 31, 2017
Impacts of the Tax Act	$	1,769	—		$	1,769
Restructuring charges	76		$	108	184
U.K. Payment Protection Insurance customer refund reserve ("U.K. PPI Reserve")	31		99		130
Charges related to the Cabela's acquisition	—		117		117
Total	1,876		324		2,200
Income tax provision (benefit)	27		82		109
Net income (loss)	$	1,849	$	242	$	2,091

⁽¹¹⁾ The adjustments in 2016 consist of:

	Three Months Ended		Nine Months Ended		Year Ended
(Dollars in millions)	December 31, 2016		September 30, 2016		December 31, 2016
U.K. PPI Reserve	$	44	$	117	$	161
Impairment associated with certain acquired intangible and software assets	28		—		28
Gain 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	—		(24)		(24)
Total	72		93		165
Income tax provision (benefit)	10		(7)		3
Net income (loss)	$	62	$	100	$	162

⁽¹²⁾ 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.
⁽¹³⁾ Includes impact of related deferred taxes.