Capital One Reports Third Quarter 2016 Net Income of $1.0 billion, or $1.90 per share

Excluding adjusting items, Third Quarter 2016 Net Income of $1.1 billion or $2.03 per share

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Oct 25, 2016, 04:05 ET

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

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

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

Third Quarter 2016 Income Statement Summary:

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

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

Third Quarter 2016 Balance Sheet Summary:

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

Earnings Conference Call Webcast Information

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

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2015.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $226.0 billion in deposits and $345.1 billion in total assets as of September 30, 2016. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

Exhibit 99.2
Capital One Financial Corporation
Financial Supplement
Third Quarter 2016⁽¹⁾
Table of Contents

Capital One Financial Corporation Consolidated Results			Page
	Table 1:	Financial Summary—Consolidated	1
	Table 2:	Selected Metrics—Consolidated	3
	Table 3:	Consolidated Statements of Income	4
	Table 4:	Consolidated Balance Sheets	6
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	8
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	10
	Table 7:	Loan Information and Performance Statistics	11
	Table 8:	Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity	13
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	14
	Table 10:	Financial & Statistical Summary—Credit Card Business	15
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	18
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	19
	Table 13:	Financial & Statistical Summary—Other and Total	20
	Table 14:	Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)	21
Other
	Table 15:	Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures	22

⁽¹⁾	The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended September 30, 2016 once it is filed with the Securities and Exchange Commission.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 1: Financial Summary—Consolidated

											2016 Q3 vs.				Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted) (unaudited)	2016		2016		2016		2015		2015		2016		2015						2016 vs.
	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2016		2015		2015
Income Statement
Net interest income	$	5,277	$	5,093	$	5,056	$	4,961	$	4,760	4	%	11	%	$	15,426	$	13,873	11	%
Non-interest income	1,184		1,161		1,164		1,233		1,140		2		4		3,509		3,346		5
Total net revenue⁽¹⁾	6,461		6,254		6,220		6,194		5,900		3		10		18,935		17,219		10
Provision for credit losses	1,588		1,592		1,527		1,380		1,092		—		45		4,707		3,156		49
Non-interest expense:
Marketing	393		415		428		564		418		(5)		(6)		1,236		1,180		5
Amortization of intangibles	89		95		101		103		106		(6)		(16)		285		327		(13)
Operating expenses	2,879		2,785		2,694		2,813		2,636		3		9		8,358		8,009		4
Total non-interest expense	3,361		3,295		3,223		3,480		3,160		2		6		9,879		9,516		4
Income from continuing operations before income taxes	1,512		1,367		1,470		1,334		1,648		11		(8)		4,349		4,547		(4)
Income tax provision	496		424		452		426		530		17		(6)		1,372		1,443		(5)
Income from continuing operations, net of tax	1,016		943		1,018		908		1,118		8		(9)		2,977		3,104		(4)
Income (loss) from discontinued operations, net of tax⁽²⁾	(11)		(1)		(5)		12		(4)		**		175		(17)		26		**
Net income	1,005		942		1,013		920		1,114		7		(10)		2,960		3,130		(5)
Dividends and undistributed earnings allocated to participating securities⁽³⁾	(6)		(6)		(6)		(4)		(6)		—		—		(18)		(16)		13
Preferred stock dividends	(37)		(65)		(37)		(68)		(29)		(43)		28		(139)		(90)		54
Net income available to common stockholders	$	962	$	871	$	970	$	848	$	1,079	10		(11)		$	2,803	$	3,024	(7)
Common Share Statistics
Basic earnings per common share:⁽³⁾
Net income from continuing operations	$	1.94	$	1.70	$	1.86	$	1.58	$	2.01	14	%	(3)	%	$	5.50	$	5.49	—
Income (loss) from discontinued operations	(0.02)		—		(0.01)		0.02		(0.01)		**		**		(0.03)		0.05		**
Net income per basic common share	$	1.92	$	1.70	$	1.85	$	1.60	$	2.00	13		(4)		$	5.47	$	5.54	(1)	%
Diluted earnings per common share:⁽³⁾
Net income from continuing operations	$	1.92	$	1.69	$	1.85	$	1.56	$	1.99	14		(4)		$	5.45	$	5.43	—
Income (loss) from discontinued operations	(0.02)		—		(0.01)		0.02		(0.01)		**		**		(0.03)		0.05		**
Net income per diluted common share⁽⁴⁾	$	1.90	$	1.69	$	1.84	$	1.58	$	1.98	12		(4)		$	5.42	$	5.48	(1)
Weighted-average common shares outstanding (in millions):
Basic	501.1		511.7		523.5		530.8		540.6		(2)		(7)		512.0		545.5		(6)
Diluted	505.9		516.5		528.0		536.3		546.3		(2)		(7)		516.8		551.9		(6)
Common shares outstanding (period-end, in millions)	489.2		505.9		514.5		527.3		534.9		(3)		(9)		489.2		534.9		(9)
Dividends paid per common share	$	0.40	$	0.40	$	0.40	$	0.40	$	0.40	—		—		$	1.20	$	1.10	9
Tangible book value per common share (period-end)⁽⁵⁾	59.00		57.84		55.94		53.65		54.66		2		8		59.00		54.66		8

											2016 Q3 vs				Nine Months Ended September 30,
(Dollars in millions) (unaudited)	2016		2016		2016		2015		2015		2016		2015						2016 vs
(Dollars in millions) (unaudited)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2016		2015		2015
Balance Sheet (Period-End)
Loans held for investment⁽⁶⁾	$	238,019	$	234,603	$	227,613	$	229,851	$	213,329	1	%	12	%	$	238,019	$	213,329	12	%
Interest-earning assets	313,431		307,163		298,348		302,007		283,073		2		11		313,431		283,073		11
Total assets	345,061		339,117		330,346		334,048		313,700		2		10		345,061		313,700		10
Interest-bearing deposits	200,416		195,635		196,597		191,874		187,848		2		7		200,416		187,848		7
Total deposits	225,981		221,059		221,779		217,721		212,903		2		6		225,981		212,903		6
Borrowings	59,820		59,181		50,497		59,115		42,778		1		40		59,820		42,778		40
Common equity	44,336		44,813		44,411		43,990		44,391		(1)		—		44,336		44,391		—
Total stockholders' equity	48,213		48,108		47,707		47,284		47,685		—		1		48,213		47,685		1
Balance Sheet (Average Balances)
Loans held for investment⁽⁶⁾	$	235,843	$	230,379	$	226,736	$	220,052	$	211,227	2	%	12	%	$	231,004	$	207,608	11	%
Interest-earning assets	310,987		302,764		299,456		292,054		283,082		3		10		304,423		279,388		9
Total assets	343,153		334,479		331,919		323,354		313,822		3		9		336,539		310,146		9
Interest-bearing deposits	196,913		195,641		194,125		189,885		185,800		1		6		195,565		184,258		6
Total deposits	222,251		221,146		219,180		215,899		210,974		—		5		220,864		209,334		6
Borrowings	60,708		54,359		53,761		48,850		45,070		12		35		56,292		44,264		27
Common equity	45,314		45,640		45,782		45,418		45,407		(1)		—		45,578		44,956		1
Total stockholders' equity	49,033		48,934		49,078		48,712		48,456		—		1		49,015		47,376		3

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

																2016 Q3 vs				Nine Months Ended September 30,
(Dollars in millions except as noted) (unaudited)	2016			2016			2016			2015			2015			2016		2015								2016 vs
(Dollars in millions except as noted) (unaudited)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2016			2015			2015
Performance Metrics
Net interest income growth (period over period)	4		%	1		%	2		%	4		%	5		%	**		**		11		%	5		%	**
Non-interest income growth (period over period)	2			—			(6)			8			—			**		**		5			1			**
Total net revenue growth (period over period)	3			1			—			5			4			**		**		10			5			**
Total net revenue margin⁽⁷⁾	8.31			8.26			8.31			8.48			8.34			5	bps	(3)	bps	8.29			8.22			7	bps
Net interest margin⁽⁸⁾	6.79			6.73			6.75			6.79			6.73			6		6		6.76			6.62			14
Return on average assets	1.18			1.13			1.23			1.12			1.43			5		(25)		1.18			1.33			(15)
Return on average tangible assets⁽⁹⁾	1.24			1.18			1.29			1.18			1.50			6		(26)		1.24			1.40			(16)
Return on average common equity⁽¹⁰⁾	8.59			7.64			8.52			7.36			9.54			95		(95)		8.25			8.89			(64)
Return on average tangible common equity⁽¹¹⁾	13.06			11.61			12.94			11.11			14.33			145		(127)		12.54			13.46			(92)
Non-interest expense as a percentage of average loans held for investment	5.70			5.72			5.69			6.33			5.98			(2)		(28)		5.70			6.11			(41)
Efficiency ratio⁽¹²⁾	52.02			52.69			51.82			56.18			53.56			(67)		(154)		52.17			55.26			(309)
Effective income tax rate for continuing operations	32.8			31.0			30.7			31.9			32.2			180		60		31.5			31.7			(20)
Employees (in thousands), period-end	46.5			46.1			45.8			45.4			46.9			1	%	(1)	%	46.5			46.9			(1)	%
Credit Quality Metrics
Allowance for loan and lease losses	$	6,258		$	5,881		$	5,416		$	5,130		$	4,847		6	%	29	%	$	6,258		$	4,847		29	%
Allowance as a percentage of loans held for investment	2.63		%	2.51		%	2.38		%	2.23		%	2.27		%	12	bps	36	bps	2.63		%	2.27		%	36	bps
Net charge-offs	$	1,240		$	1,155		$	1,178		$	1,078		$	890		7	%	39	%	$	3,573		$	2,617		37	%
Net charge-off rate⁽¹³⁾	2.10		%	2.01		%	2.08		%	1.96		%	1.69		%	9	bps	41	bps	2.06		%	1.68		%	38	bps
30+ day performing delinquency rate	2.71			2.47			2.33			2.69			2.63			24		8		2.71			2.63			8
30+ day delinquency rate	3.04			2.79			2.64			3.00			2.95			25		9		3.04			2.95			9
Capital Ratios⁽¹⁴⁾
Common equity Tier 1 capital	10.6		%	10.9		%	11.1		%	11.1		%	12.1		%	(30)	bps	(150)	bps	10.6		%	12.1		%	(150)	bps
Tier 1 capital	12.0			12.2			12.4			12.4			13.4			(20)		(140)		12.0			13.4			(140)
Total capital	14.7			14.4			14.6			14.6			15.1			30		(40)		14.7			15.1			(40)
Tier 1 leverage	10.1			10.2			10.2			10.6			11.1			(10)		(100)		10.1			11.1			(100)
Tangible common equity ("TCE")⁽¹⁵⁾	8.8			9.0			9.1			8.9			9.8			(20)		(100)		8.8			9.8			(100)

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

	Three Months Ended						2016 Q3 vs				Nine Months Ended September 30,
	2016		2016		2015		2016		2015						2016 vs
(Dollars in millions, except per share data and as noted) (unaudited)	Q3		Q2		Q3		Q2		Q3		2016		2015		2015
Interest income:
Loans, including loans held for sale	$	5,383	$	5,148	$	4,753	5	%	13	%	$	15,616	$	13,824	13	%
Investment securities	386		405		386		(5)		—		1,206		1,174		3
Other	25		18		25		39		—		60		77		(22)
Total interest income	5,794		5,571		5,164		4		12		16,882		15,075		12
Interest expense:
Deposits	306		292		271		5		13		881		814		8
Securitized debt obligations	56		47		39		19		44		151		108		40
Senior and subordinated notes	121		111		82		9		48		338		241		40
Other borrowings	34		28		12		21		183		86		39		121
Total interest expense	517		478		404		8		28		1,456		1,202		21
Net interest income	5,277		5,093		4,760		4		11		15,426		13,873		11
Provision for credit losses	1,588		1,592		1,092		—		45		4,707		3,156		49
Net interest income after provision for credit losses	3,689		3,501		3,668		5		1		10,719		10,717		—
Non-interest income:
Service charges and other customer-related fees	387		371		423		4		(9)		1,162		1,289		(10)
Interchange fees, net	603		616		555		(2)		9		1,815		1,618		12
Net other-than-temporary impairment recognized in earnings	—		(2)		(5)		**		**		(10)		(27)		(63)
Other	194		176		167		10		16		542		466		16
Total non-interest income	1,184		1,161		1,140		2		4		3,509		3,346		5
Non-interest expense:
Salaries and associate benefits	1,317		1,279		1,189		3		11		3,866		3,760		3
Occupancy and equipment	499		465		444		7		12		1,422		1,318		8
Marketing	393		415		418		(5)		(6)		1,236		1,180		5
Professional services	296		304		313		(3)		(5)		878		943		(7)
Communications and data processing	252		262		226		(4)		12		757		636		19
Amortization of intangibles	89		95		106		(6)		(16)		285		327		(13)
Other	515		475		464		8		11		1,435		1,352		6
Total non-interest expense	3,361		3,295		3,160		2		6		9,879		9,516		4
Income from continuing operations before income taxes	1,512		1,367		1,648		11		(8)		4,349		4,547		(4)
Income tax provision	496		424		530		17		(6)		1,372		1,443		(5)
Income from continuing operations, net of tax	1,016		943		1,118		8		(9)		2,977		3,104		(4)
Income (loss) from discontinued operations, net of tax⁽²⁾	(11)		(1)		(4)		**		175		(17)		26		**
Net income	1,005		942		1,114		7		(10)		2,960		3,130		(5)
Dividends and undistributed earnings allocated to participating securities⁽³⁾	(6)		(6)		(6)		—		—		(18)		(16)		13
Preferred stock dividends	(37)		(65)		(29)		(43)		28		(139)		(90)		54
Net income available to common stockholders	$	962	$	871	$	1,079	10		(11)		$	2,803	$	3,024	(7)

	Three Months Ended						2016 Q3 vs				Nine Months Ended September 30,
	2016		2016		2015		2016		2015						2016 vs
(Dollars in millions, except per share data and as noted) (unaudited)	Q3		Q2		Q3		Q2		Q3		2016		2015		2015
Basic earnings per common share:⁽³⁾
Net income from continuing operations	$	1.94	$	1.70	$	2.01	14	%	(3)	%	$	5.50	$	5.49	—
Income (loss) from discontinued operations	(0.02)		—		(0.01)		**		**		(0.03)		0.05		**
Net income per basic common share	$	1.92	$	1.70	$	2.00	13		(4)		$	5.47	$	5.54	(1)	%
Diluted earnings per common share:⁽³⁾
Net income from continuing operations	$	1.92	$	1.69	$	1.99	14		(4)		$	5.45	$	5.43	—
Income (loss) from discontinued operations	(0.02)		—		(0.01)		**		**		(0.03)		0.05		**
Net income per diluted common share⁽⁴⁾	$	1.90	$	1.69	$	1.98	12		(4)		$	5.42	$	5.48	(1)
Weighted-average common shares outstanding (in millions):
Basic common shares	501.1		511.7		540.6		(2)		(7)		512.0		545.5		(6)
Diluted common shares	505.9		516.5		546.3		(2)		(7)		516.8		551.9		(6)
Dividends paid per common share	$	0.40	$	0.40	$	0.40	—		—		$	1.20	$	1.10	9

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

											2016 Q3 vs
	2016		2016		2016		2015		2015		2015		2015
(Dollars in millions) (unaudited)	Q3		Q2		Q1		Q4		Q3		Q4		Q3
Assets:
Cash and cash equivalents:
Cash and due from banks	$	3,350	$	3,253	$	3,241	$	3,407	$	2,701	(2)	%	24	%
Interest-bearing deposits with banks	5,744		3,896		1,994		4,616		4,136		24		39
Total cash and cash equivalents	9,094		7,149		5,235		8,023		6,837		13		33
Restricted cash for securitization investors	287		265		960		1,017		586		(72)		(51)
Securities available for sale, at fair value	41,511		39,960		40,092		39,061		39,431		6		5
Securities held to maturity, at carrying value	25,019		25,120		25,080		24,619		23,711		2		6
Loans held for investment:⁽⁶⁾
Unsecuritized loans held for investment	206,763		202,778		195,705		196,068		179,748		5		15
Loans held in consolidated trusts	31,256		31,825		31,908		33,783		33,581		(7)		(7)
Total loans held for investment	238,019		234,603		227,613		229,851		213,329		4		12
Allowance for loan and lease losses	(6,258)		(5,881)		(5,416)		(5,130)		(4,847)		22		29
Net loans held for investment	231,761		228,722		222,197		224,721		208,482		3		11
Loans held for sale, at lower of cost or fair value	994		1,220		1,251		904		566		10		76
Premises and equipment, net	3,561		3,556		3,542		3,584		3,629		(1)		(2)
Interest receivable	1,251		1,236		1,221		1,189		1,101		5		14
Goodwill	14,493		14,495		14,492		14,480		13,983		—		4
Other assets	17,090		17,394		16,276		16,450		15,374		4		11
Total assets	$	345,061	$	339,117	$	330,346	$	334,048	$	313,700	3		10

											2016 Q3 vs
	2016		2016		2016		2015		2015		2015		2015
(Dollars in millions) (unaudited)	Q3		Q2		Q1		Q4		Q3		Q4		Q3
Liabilities:
Interest payable	$	237	$	301	$	217	$	299	$	198	(21)	%	20	%
Deposits:
Non-interest-bearing deposits	25,565		25,424		25,182		25,847		25,055		(1)		2
Interest-bearing deposits	200,416		195,635		196,597		191,874		187,848		4		7
Total deposits	225,981		221,059		221,779		217,721		212,903		4		6
Securitized debt obligations	18,411		16,130		14,913		16,166		15,656		14		18
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	1,079		999		917		981		1,021		10		6
Senior and subordinated notes	24,001		21,872		21,736		21,837		21,773		10		10
Other borrowings	16,329		20,180		12,931		20,131		4,328		(19)		277
Total other debt	41,409		43,051		35,584		42,949		27,122		(4)		53
Other liabilities	10,810		10,468		10,146		9,629		10,136		12		7
Total liabilities	296,848		291,009		282,639		286,764		266,015		4		12

Stockholders' equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		6		6		17		17
Additional paid-in capital, net	30,439		29,786		29,709		29,655		29,594		3		3
Retained earnings	29,245		28,479		27,808		27,045		26,407		8		11
Accumulated other comprehensive income (loss)	121		241		(41)		(616)		(142)		**		**
Treasury stock, at cost	(11,599)		(10,405)		(9,776)		(8,806)		(8,180)		32		42
Total stockholders' equity	48,213		48,108		47,707		47,284		47,685		2		1
Total liabilities and stockholders' equity	$	345,061	$	339,117	$	330,346	$	334,048	$	313,700	3		10


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

⁽¹⁾	Total net revenue was reduced by $289 million in Q3 2016, $244 million in Q2 2016, $228 million in Q1 2016, $222 million in Q4 2015 and $195 million in Q3 2015 for the estimated uncollectible amount of billed finance charges and fees and related losses.
⁽²⁾	Historically, the majority of the provision (benefit) for representation and warranty losses has been included, net of tax, in discontinued operations. The provision (benefit) for mortgage representation and warranty losses included the following activity:

																2016		2016		2016		2015		2015
	(Dollars in millions) (unaudited)															Q3		Q2		Q1		Q4		Q3
	Provision (benefit) for mortgage representation and warranty losses before income taxes:
	Recorded in continuing operations															$	—	$	(1)	$	(1)	$	(1)	$	(7)
	Recorded in discontinued operations															18		2		3		(21)		3
	Total provision (benefit) for mortgage representation and warranty losses before income taxes															$	18	$	1	$	2	$	(22)	$	(4)

	The mortgage representation and warranty reserve was $632 million as of September 30, 2016, $610 million as of December 31, 2015 and $632 million as of September 30, 2015.
⁽³⁾	Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total.
⁽⁴⁾	In Q3 2016, we recorded a build in the U.K. Payment Protection Insurance customer refund reserve ("U.K. PPI Reserve") of $63 million. In Q2 2016, we recorded charges totaling $30 million associated with a build of $54 million in the U.K. PPI Reserve, partially offset by a gain of $24 million related to the exchange of our ownership interest in Visa Europe with Visa Inc. as a result of Visa Inc.'s acquisition of Visa Europe. In Q4 2015, we recorded charges totaling $72 million associated with (i) closing the GE Healthcare Financial Services ("HFS") acquisition and establishing an initial allowance and reserve related to the loans acquired; (ii) certain planned site closures; and (iii) revisions to the restructuring charges recorded in Q2 2015 to reflect updated information. In Q3 2015, we recorded a build in the U.K. PPI Reserve of $69 million. We report the following non-GAAP financial measures that we believe are helpful for investors and users of our financial information to understand the effect of these items on our reported results. The table below presents a reconciliation of our reported results to these non-GAAP financial measures. The period not presented had no adjustments.

		2016 Q3						2016 Q2						2015 Q4						2015 Q3
	(Dollars in millions, except per share data) (unaudited)	Pre-Tax Income		Net Income		Diluted EPS		Pre-Tax Income		Net Income		Diluted EPS		Pre-Tax Income		Net Income		Diluted EPS		Pre-Tax Income		Net Income		Diluted EPS
	Reported results	$	1,512	$	1,005	$	1.90	$	1,367	$	942	$	1.69	$	1,334	$	920	$	1.58	$	1,648	$	1,114	$	1.98
	Adjustments	63		63		0.13		30		37		0.07		72		46		0.09		69		69		0.12
	Results excluding adjustments	$	1,575	$	1,068	$	2.03	$	1,397	$	979	$	1.76	$	1,406	$	966	$	1.67	$	1,717	$	1,183	$	2.10

⁽⁵⁾	Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures.
⁽⁶⁾	Included in loans held for investment are purchased credit-impaired loans ("PCI loans") recorded at fair value at acquisition and subsequently accounted for based on estimated cash flows expected to be collected over the life of the loans (under the accounting standard formerly known as "SOP 03-3," or Accounting Standards Codification 310-30). These include certain of our consumer and commercial loans that were acquired through business combinations. The table below presents amounts related to PCI loans:

																2016		2016		2016		2015		2015
	(Dollars in millions) (unaudited)															Q3		Q2		Q1		Q4		Q3
	PCI loans:
	Period-end unpaid principal balance															$	17,011	$	18,256	$	19,492	$	20,434	$	20,585
	Period-end loans held for investment															16,149		17,358		18,568		19,518		19,743
	Average loans held for investment															16,529		17,783		18,894		19,319		20,116

⁽⁷⁾	Calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.
⁽⁸⁾	Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
⁽⁹⁾	Return on average tangible assets is a non-GAAP measure calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures.
⁽¹⁰⁾	Calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly titled measures reported by other companies.
⁽¹¹⁾	Return on average tangible common equity ("ROTCE") is a non-GAAP measure calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Our calculation of ROTCE may not be comparable to similarly titled measures reported by other companies. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures.
⁽¹²⁾	Calculated based on total non-interest expense for the period divided by total net revenue for the period. The efficiency ratio, excluding the adjustments discussed above in Footnote 4, was 51.40% for Q3 2016, 52.32% for Q2 2016, 55.82% for Q4 2015 and 52.78% for Q3 2015 . The adjusted efficiency ratios are non-GAAP measures that we believe would provide useful information to investors and users of our financial information.
⁽¹³⁾	Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
⁽¹⁴⁾	Ratios as of the end of Q3 2016 are preliminary and therefore subject to change. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.
⁽¹⁵⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures.
^**	Not meaningful.

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

	2016 Q3						2016 Q2						2015 Q3
	Average Balance		Interest Income/ Expense⁽¹⁾		Yield/ Rate⁽¹⁾		Average Balance		Interest Income/ Expense⁽¹⁾		Yield/ Rate⁽¹⁾		Average Balance		Interest Income/ Expense⁽¹⁾		Yield/ Rate⁽¹⁾
(Dollars in millions) (unaudited)	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	$	237,067	$	5,383	9.08	%	$	231,496	$	5,148	8.90	%	$	212,076	$	4,753	8.96	%
Investment securities	66,291		386		2.33		65,754		405		2.46		63,541		386		2.43
Cash equivalents and other	7,629		25		1.31		5,514		18		1.31		7,465		25		1.34
Total interest-earning assets	$	310,987	$	5,794	7.45		$	302,764	$	5,571	7.36		$	283,082	$	5,164	7.30
Interest-bearing liabilities:
Interest-bearing deposits	$	196,913	$	306	0.62		$	195,641	$	292	0.60		$	185,800	$	271	0.58
Securitized debt obligations	17,389		56		1.29		15,226		47		1.23		14,881		39		1.05
Senior and subordinated notes	22,342		121		2.17		21,717		111		2.04		20,806		82		1.58
Other borrowings and liabilities	21,840		34		0.62		18,255		28		0.61		10,114		12		0.47
Total interest-bearing liabilities	$	258,484	$	517	0.80		$	250,839	$	478	0.76		$	231,601	$	404	0.70
Net interest income/spread			$	5,277	6.65				$	5,093	6.60				$	4,760	6.60
Impact of non-interest-bearing funding					0.14						0.13						0.13
Net interest margin					6.79	%					6.73	%					6.73	%

							Nine Months Ended September 30,
							2016						2015
							Average Balance		Interest Income/ Expense⁽¹⁾		Yield/ Rate⁽¹⁾		Average Balance		Interest Income/ Expense⁽¹⁾		Yield/ Rate⁽¹⁾
(Dollars in millions) (unaudited)							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							$	232,064	$	15,616	8.97	%	$	208,444	$	13,824	8.84	%
Investment securities							65,735		1,206		2.45		63,500		1,174		2.47
Cash equivalents and other							6,624		60		1.21		7,444		77		1.38
Total interest-earning assets							$	304,423	$	16,882	7.39		$	279,388	$	15,075	7.19
Interest-bearing liabilities:
Interest-bearing deposits							$	195,565	$	881	0.60		$	184,258	$	814	0.59
Securitized debt obligations							15,997		151		1.26		13,233		108		1.09
Senior and subordinated notes							22,019		338		2.05		20,580		241		1.56
Other borrowings and liabilities							19,099		86		0.60		11,214		39		0.46
Total interest-bearing liabilities							$	252,680	$	1,456	0.77		$	229,285	$	1,202	0.70
Net interest income/spread									$	15,426	6.62				$	13,873	6.49
Impact of non-interest-bearing funding											0.14						0.13
Net interest margin											6.76	%					6.62	%

__________
⁽¹⁾	Interest income and interest expense and the calculation of average yields on interest-earning assets and average rates on interest-bearing liabilities include the impact of hedge accounting.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics

																2016 Q3 vs				Nine Months Ended September 30,
(Dollars in millions) (unaudited)	2016 Q3			2016 Q2			2016 Q1			2015 Q4			2015 Q3			2016 Q2		2015 Q3		2016			2015			2016 vs. 2015
Loans Held For Investment (Period-End)
Credit card:
Domestic credit card	$	90,955		$	88,581		$	84,561		$	87,939		$	82,178		3	%	11	%	$	90,955		$	82,178		11	%
International credit card	8,246			8,323			8,138			8,186			7,957			(1)		4		8,246			7,957			4
Total credit card	99,201			96,904			92,699			96,125			90,135			2		10		99,201			90,135			10
Consumer banking:
Auto	46,311			44,502			42,714			41,549			41,052			4		13		46,311			41,052			13
Home loan	22,448			23,358			24,343			25,227			26,340			(4)		(15)		22,448			26,340			(15)
Retail banking	3,526			3,555			3,534			3,596			3,598			(1)		(2)		3,526			3,598			(2)
Total consumer banking	72,285			71,415			70,591			70,372			70,990			1		2		72,285			70,990			2
Commercial banking:
Commercial and multifamily real estate	26,507			26,341			25,559			25,518			23,585			1		12		26,507			23,585			12
Commercial and industrial	39,432			39,313			38,102			37,135			27,873			—		41		39,432			27,873			41
Total commercial lending	65,939			65,654			63,661			62,653			51,458			—		28		65,939			51,458			28
Small-ticket commercial real estate	518			548			580			613			654			(5)		(21)		518			654			(21)
Total commercial banking	66,457			66,202			64,241			63,266			52,112			—		28		66,457			52,112			28
Other loans	76			82			82			88			92			(7)		(17)		76			92			(17)
Total loans held for investment	$	238,019		$	234,603		$	227,613		$	229,851		$	213,329		1		12		$	238,019		$	213,329		12
Loans Held For Investment (Average)
Credit card:
Domestic credit card	$	89,763		$	85,981		$	85,148		$	83,760		$	80,402		4	%	12	%	$	86,974		$	77,053		13	%
International credit card	8,253			8,401			7,839			8,127			8,048			(2)		3		8,165			7,946			3
Total credit card	98,016			94,382			92,987			91,887			88,450			4		11		95,139			84,999			12
Consumer banking:
Auto	45,355			43,605			41,962			41,333			40,560			4		12		43,647			39,505			10
Home loan	22,852			23,835			24,781			25,776			26,934			(4)		(15)		23,819			28,217			(16)
Retail banking	3,520			3,548			3,553			3,595			3,603			(1)		(2)		3,540			3,578			(1)
Total consumer banking	71,727			70,988			70,296			70,704			71,097			1		1		71,006			71,300			—
Commercial banking:
Commercial and multifamily real estate	26,154			25,661			25,015			25,613			23,305			2		12		25,612			23,092			11
Commercial and industrial	39,346			38,713			37,762			31,132			27,620			2		42		38,610			27,411			41
Total commercial lending	65,500			64,374			62,777			56,745			50,925			2		29		64,222			50,503			27
Small-ticket commercial real estate	534			564			598			634			667			(5)		(20)		565			712			(21)
Total commercial banking	66,034			64,938			63,375			57,379			51,592			2		28		64,787			51,215			27
Other loans	66			71			78			82			88			(7)		(25)		72			94			(23)
Total average loans held for investment	$	235,843		$	230,379		$	226,736		$	220,052		$	211,227		2		12		$	231,004		$	207,608		11

																2016 Q3 vs				Nine Months Ended September 30,
(unaudited)	2016 Q3			2016 Q2			2016 Q1			2015 Q4			2015 Q3			2016 Q2		2015 Q3		2016			2015			2016 vs. 2015
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card		3.74	%		4.07	%		4.16	%		3.75	%		3.08	%	(33)	bps	66	bps		3.99	%	3.35		%	64	bps
International credit card		3.18			3.54			3.24			2.76			1.80		(36)		138			3.32		2.41			91
Total credit card		3.70			4.02			4.09			3.66			2.96		(32)		74			3.93		3.26			67
Consumer banking:
Auto		1.85			1.20			1.60			2.10			1.85		65		—			1.55		1.54			1
Home loan		0.03			0.09			0.05			0.05			0.01		(6)		2			0.05		0.03			2
Retail banking		1.75			1.26			1.36			1.43			1.53		49		22			1.46		1.30			16
Total consumer banking		1.26			0.83			1.04			1.32			1.14		43		12			1.04		0.93			11
Commercial banking:
Commercial and multifamily real estate		0.01			(0.02)			(0.01)			(0.03)			(0.15)		3		16			(0.01)		(0.07)			6
Commercial and industrial		1.09			0.62			0.49			0.07			0.61		47		48			0.74		0.26			48
Total commercial lending		0.66			0.37			0.29			0.02			0.26		29		40			0.44		0.11			33
Small-ticket commercial real estate		0.74			0.33			0.13			0.34			0.50		41		24			0.39		0.37			2
Total commercial banking		0.66			0.37			0.29			0.03			0.26		29		40			0.44		0.11			33
Total net charge-offs		2.10			2.01			2.08			1.96			1.69		9		41			2.06		1.68			38
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card		3.68	%		3.14	%		3.09	%		3.39	%		3.28	%	54	bps	40	bps		3.68	%	3.28		%	40	bps
International credit card		3.33			3.24			3.32			2.98			2.81		9		52			3.33		2.81			52
Total credit card		3.65			3.15			3.11			3.36			3.24		50		41			3.65		3.24			41
Consumer banking:
Auto		5.67			5.59			5.14			6.69			6.10		8		(43)			5.67		6.10			(43)
Home loan		0.19			0.14			0.14			0.16			0.18		5		1			0.19		0.18			1
Retail banking		0.59			0.62			0.61			0.76			0.62		(3)		(3)			0.59		0.62			(3)
Total consumer banking		3.72			3.56			3.19			4.05			3.62		16		10			3.72		3.62			10
Nonperforming Loans and Nonperforming Assets Rates⁽¹⁾⁽²⁾
Credit card:
International credit card		0.53	%		0.53	%		0.59	%		0.65	%		0.77	%	—		(24)	bps		0.53	%	0.77		%	(24)	bps
Total credit card		0.04			0.05			0.05			0.06			0.07		(1)	bps	(3)			0.04		0.07			(3)
Consumer banking:
Auto		0.43			0.38			0.31			0.53			0.49		5		(6)			0.43		0.49			(6)
Home loan		1.23			1.24			1.26			1.23			1.18		(1)		5			1.23		1.18			5
Retail banking		1.05			0.89			0.83			0.77			0.74		16		31			1.05		0.74			31
Total consumer banking		0.71			0.69			0.66			0.79			0.76		2		(5)			0.71		0.76			(5)
Commercial banking:
Commercial and multifamily real estate		0.08			0.10			0.12			0.03			0.03		(2)		5			0.08		0.03			5
Commercial and industrial		2.44			2.58			2.66			1.45			1.58		(14)		86			2.44		1.58			86
Total commercial lending		1.49			1.59			1.64			0.87			0.87		(10)		62			1.49		0.87			62
Small-ticket commercial real estate		2.13			1.59			1.11			0.83			0.65		54		148			2.13		0.65			148
Total commercial banking		1.50			1.59			1.63			0.87			0.87		(9)		63			1.50		0.87			63
Total nonperforming loans		0.66			0.68			0.69			0.51			0.50		(2)		16			0.66		0.50			16
Total nonperforming assets		0.77			0.80			0.83			0.65			0.64		(3)		13			0.77		0.64			13

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

	Three Months Ended September 30, 2016
	Credit Card						Consumer Banking
(Dollars in millions) (unaudited)	Domestic Card		International Card		Total Credit Card		Auto		Home Loan		Retail Banking		Total Consumer Banking		Commercial Banking		Other⁽³⁾		Total
Allowance for loan and lease losses:
Balance as of June 30, 2016	$	3,730	$	356	$	4,086	$	833	$	58	$	81	$	972	$	821	$	2	$	5,881
Provision (benefit) for loan and lease losses	1,190		82		1,272		239		5		14		258		96		(1)		1,625
Charge-offs	(1,062)		(109)		(1,171)		(300)		(3)		(20)		(323)		(112)		—		(1,606)
Recoveries	221		44		265		90		2		4		96		4		1		366
Net charge-offs	(841)		(65)		(906)		(210)		(1)		(16)		(227)		(108)		1		(1,240)
Other changes⁽⁴⁾	—		(7)		(7)		—		—		—		—		(1)		—		(8)
Balance as of September 30, 2016	4,079		366		4,445		862		62		79		1,003		808		2		6,258
Reserve for unfunded lending commitments:
Balance as of June 30, 2016	—		—		—		—		—		8		8		161		—		169
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		(2)		(2)		(35)		—		(37)
Balance as of September 30, 2016	—		—		—		—		—		6		6		126		—		132
Combined allowance and reserve as of September 30, 2016	$	4,079	$	366	$	4,445	$	862	$	62	$	85	$	1,009	$	934	$	2	$	6,390

	Nine Months Ended September 30, 2016
	Credit Card						Consumer Banking
(Dollars in millions) (unaudited)	Domestic Card		International Card		Total Credit Card		Auto		Home Loan		Retail Banking		Total Consumer Banking		Commercial Banking		Other⁽³⁾		Total
Allowance for loan and lease losses:
Balance as of December 31, 2015	$	3,355	$	299	$	3,654	$	726	$	70	$	72	$	868	$	604	$	4	$	5,130
Provision (benefit) for loan and lease losses	3,326		278		3,604		644		1		46		691		452		(4)		4,743
Charge-offs	(3,287)		(321)		(3,608)		(796)		(15)		(51)		(862)		(224)		(2)		(4,696)
Recoveries	685		118		803		288		6		12		306		10		4		1,123
Net charge-offs	(2,602)		(203)		(2,805)		(508)		(9)		(39)		(556)		(214)		2		(3,573)
Other changes⁽⁴⁾	—		(8)		(8)		—		—		—		—		(34)		—		(42)
Balance as of September 30, 2016	4,079		366		4,445		862		62		79		1,003		808		2		6,258
Reserve for unfunded lending commitments:
Balance as of December 31, 2015	—		—		—		—		—		7		7		161		—		168
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		(1)		(1)		(35)		—		(36)
Balance as of September 30, 2016	—		—		—		—		—		6		6		126		—		132
Combined allowance and reserve as of September 30, 2016	$	4,079	$	366	$	4,445	$	862	$	62	$	85	$	1,009	$	934	$	2	$	6,390

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

	Three Months Ended September 30, 2016										Nine Months Ended September 30, 2016
(Dollars in millions) (unaudited)	Credit Card		Consumer Banking		Commercial Banking		Other		Total		Credit Card		Consumer Banking		Commercial Banking		Other		Total
Net interest income	$	3,204	$	1,472	$	555	$	46	$	5,277	$	9,282	$	4,331	$	1,651	$	162	$	15,426
Non-interest income	825		201		156		2		1,184		2,531		567		403		8		3,509
Total net revenue⁽⁵⁾	4,029		1,673		711		48		6,461		11,813		4,898		2,054		170		18,935
Provision (benefit) for credit losses	1,272		256		61		(1)		1,588		3,604		690		417		(4)		4,707
Non-interest expense	1,884		1,034		349		94		3,361		5,630		3,030		1,014		205		9,879
Income (loss) from continuing operations before income taxes	873		383		301		(45)		1,512		2,579		1,178		623		(31)		4,349
Income tax provision (benefit)	318		139		110		(71)		496		931		428		227		(214)		1,372
Income (loss) from continuing operations, net of tax	$	555	$	244	$	191	$	26	$	1,016	$	1,648	$	750	$	396	$	183	$	2,977

	Three Months Ended June 30, 2016
(Dollars in millions) (unaudited)	Credit Card		Consumer Banking		Commercial Banking		Other		Total
Net interest income	$	3,045	$	1,439	$	559	$	50	$	5,093
Non-interest income	859		175		129		(2)		1,161
Total net revenue⁽⁵⁾	3,904		1,614		688		48		6,254
Provision (benefit) for credit losses	1,261		204		128		(1)		1,592
Non-interest expense	1,883		1,006		343		63		3,295
Income (loss) from continuing operations before income taxes	760		404		217		(14)		1,367
Income tax provision (benefit)	276		147		79		(78)		424
Income (loss) from continuing operations, net of tax	$	484	$	257	$	138	$	64	$	943

	Three Months Ended September 30, 2015										Nine Months Ended September 30, 2015
(Dollars in millions) (unaudited)	Credit Card		Consumer Banking		Commercial Banking		Other		Total		Credit Card		Consumer Banking		Commercial Banking		Other		Total
Net interest income	$	2,866	$	1,443	$	454	$	(3)	$	4,760	$	8,165	$	4,321	$	1,381	$	6	$	13,873
Non-interest income	858		174		108		—		1,140		2,519		528		345		(46)		3,346
Total net revenue⁽⁵⁾	3,724		1,617		562		(3)		5,900		10,684		4,849		1,726		(40)		17,219
Provision (benefit) for credit losses	831		188		75		(2)		1,092		2,395		579		184		(2)		3,156
Non-interest expense	1,848		1,001		272		39		3,160		5,481		2,969		814		252		9,516
Income (loss) from continuing operations before income taxes	1,045		428		215		(40)		1,648		2,808		1,301		728		(290)		4,547
Income tax provision (benefit)	375		155		78		(78)		530		1,007		471		264		(299)		1,443
Income (loss) from continuing operations, net of tax	$	670	$	273	$	137	$	38	$	1,118	$	1,801	$	830	$	464	$	9	$	3,104

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

																2016 Q3 vs				Nine Months Ended September 30,
	2016			2016			2016			2015			2015			2016		2015								2016 vs
(Dollars in millions) (unaudited)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2016			2015			2015
Credit Card⁽⁶⁾
Earnings:
Net interest income	$	3,204		$	3,045		$	3,033		$	2,996		$	2,866		5	%	12	%	$	9,282		$	8,165		14	%
Non-interest income	825			859			847			902			858			(4)		(4)		2,531			2,519			—
Total net revenue	4,029			3,904			3,880			3,898			3,724			3		8		11,813			10,684			11
Provision (benefit) for credit losses	1,272			1,261			1,071			1,022			831			1		53		3,604			2,395			50
Non-interest expense	1,884			1,883			1,863			2,021			1,848			—		2		5,630			5,481			3
Income (loss) from continuing operations before income taxes	873			760			946			855			1,045			15		(16)		2,579			2,808			(8)
Income tax provision (benefit)	318			276			337			302			375			15		(15)		931			1,007			(8)
Income (loss) from continuing operations, net of tax	$	555		$	484		$	609		$	553		$	670		15		(17)		$	1,648		$	1,801		(8)
Selected performance metrics:
Period-end loans held for investment	$	99,201		$	96,904		$	92,699		$	96,125		$	90,135		2		10		$	99,201		$	90,135		10
Average loans held for investment	98,016			94,382			92,987			91,887			88,450			4		11		95,139			84,999			12
Average yield on loans held for investment⁽⁷⁾	14.68		%	14.49		%	14.60		%	14.45		%	14.39		%	19	bps	29	bps	14.59		%	14.22		%	37	bps
Total net revenue margin⁽⁸⁾	16.44			16.55			16.69			16.97			16.84			(11)		(40)		16.56			16.76			(20)
Net charge-off rate	3.70			4.02			4.09			3.66			2.96			(32)		74		3.93			3.26			67
30+ day performing delinquency rate	3.65			3.15			3.11			3.36			3.24			50		41		3.65			3.24			41
30+ day delinquency rate	3.69			3.18			3.15			3.40			3.29			51		40		3.69			3.29			40
Nonperforming loan rate⁽¹⁾	0.04			0.05			0.05			0.06			0.07			(1)		(3)		0.04			0.07			(3)
PCCR intangible amortization	$	62		$	67		$	70		$	74		$	78		(7)	%	(21)	%	$	199		$	242		(18)	%
Purchase volume⁽⁹⁾	78,106			78,019			68,189			75,350			69,875			—		12		224,314			195,817			15

																2016 Q3 vs				Nine Months Ended September 30,
	2016			2016			2016			2015			2015			2016		2015								2016 vs
(Dollars in millions) (unaudited)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2016			2015			2015
Domestic Card
Earnings:
Net interest income	$	2,956		$	2,769		$	2,756		$	2,718		$	2,613		7	%	13	%	$	8,481		$	7,429		14	%
Non-interest income	759			792			774			830			814			(4)		(7)		2,325			2,353			(1)
Total net revenue	3,715			3,561			3,530			3,548			3,427			4		8		10,806			9,782			10
Provision (benefit) for credit losses	1,190			1,164			972			945			796			2		49		3,326			2,259			47
Non-interest expense	1,696			1,669			1,671			1,796			1,630			2		4		5,036			4,831			4
Income (loss) from continuing operations before income taxes	829			728			887			807			1,001			14		(17)		2,444			2,692			(9)
Income tax provision (benefit)	302			265			323			293			362			14		(17)		890			974			(9)
Income (loss) from continuing operations, net of tax	$	527		$	463		$	564		$	514		$	639		14		(18)		$	1,554		$	1,718		(10)
Selected performance metrics:
Period-end loans held for investment	$	90,955		$	88,581		$	84,561		$	87,939		$	82,178		3		11		$	90,955		$	82,178		11
Average loans held for investment	89,763			85,981			85,148			83,760			80,402			4		12		86,974			77,053			13
Average yield on loans held for investment⁽⁷⁾	14.71		%	14.40		%	14.43		%	14.31		%	14.35		%	31	bps	36	bps	14.51		%	14.17		%	34	bps
Total net revenue margin⁽⁸⁾	16.55			16.57			16.58			16.95			17.05			(2)		(50)		16.57			16.93			(36)
Net charge-off rate	3.74			4.07			4.16			3.75			3.08			(33)		66		3.99			3.35			64
30+ day delinquency rate	3.68			3.14			3.09			3.39			3.28			54		40		3.68			3.28			40
Purchase volume⁽⁹⁾	$	71,331		$	71,050		$	62,617		$	68,740		$	63,777		—		12	%	$	204,998		$	178,000		15	%
Refreshed FICO scores:⁽¹⁰⁾
Greater than 660	64		%	65		%	65		%	66		%	66		%	(1)	%	(2)		64		%	66		%	(2)
660 or below	36			35			35			34			34			1		2		36			34			2
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

																2016 Q3 vs				Nine Months Ended September 30,
	2016			2016			2016			2015			2015			2016		2015								2016 vs
*(Dollars in millions) (unaudited)*	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2016			2015			2015
International Card⁽⁶⁾
Earnings:
Net interest income	$	248		$	276		$	277		$	278		$	253		(10)	%	(2)	%	$	801		$	736		9	%
Non-interest income	66			67			73			72			44			(1)		50		206			166			24
Total net revenue	314			343			350			350			297			(8)		6		1,007			902			12
Provision (benefit) for credit losses	82			97			99			77			35			(15)		134		278			136			104
Non-interest expense	188			214			192			225			218			(12)		(14)		594			650			(9)
Income (loss) from continuing operations before income taxes	44			32			59			48			44			38		—		135			116			16
Income tax provision (benefit)	16			11			14			9			13			45		23		41			33			24
Income (loss) from continuing operations, net of tax	$	28		$	21		$	45		$	39		$	31		33		(10)		$	94		$	83		13
Selected performance metrics:
Period-end loans held for investment	$	8,246		$	8,323		$	8,138		$	8,186		$	7,957		(1)		4		$	8,246		$	7,957		4	%
Average loans held for investment	8,253			8,401			7,839			8,127			8,048			(2)		3		8,165			7,946			3
Average yield on loans held for investment⁽⁷⁾	14.36		%	15.45		%	16.47		%	15.96		%	14.88		%	(109)	bps	(52)	bps	15.41		%	14.70		%	71	bps
Total net revenue margin⁽⁸⁾	15.24			16.32			17.85			17.21			14.77			(108)		47		16.45			15.14			131
Net charge-off rate	3.18			3.54			3.24			2.76			1.80			(36)		138		3.32			2.41			91
30+ day performing delinquency rate	3.33			3.24			3.32			2.98			2.81			9		52		3.33			2.81			52
30+ day delinquency rate	3.74			3.65			3.76			3.46			3.39			9		35		3.74			3.39			35
Nonperforming loan rate⁽¹⁾	0.53			0.53			0.59			0.65			0.77			—		(24)		0.53			0.77			(24)
Purchase volume⁽⁹⁾	$	6,775		$	6,969		$	5,572		$	6,610		$	6,098		(3)	%	11	%	$	19,316		$	17,817		8	%

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

																2016 Q3 vs				Nine Months Ended September 30,
	2016			2016			2016			2015			2015			2016		2015								2016 vs
(Dollars in millions) (unaudited)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2016			2015			2015
Consumer Banking
Earnings:
Net interest income	$	1,472		$	1,439		$	1,420		$	1,434		$	1,443		2	%	2	%	$	4,331		$	4,321		—
Non-interest income	201			175			191			182			174			15		16		567			528			7	%
Total net revenue	1,673			1,614			1,611			1,616			1,617			4		3		4,898			4,849			1
Provision (benefit) for credit losses	256			204			230			240			188			25		36		690			579			19
Non-interest expense	1,034			1,006			990			1,057			1,001			3		3		3,030			2,969			2
Income (loss) from continuing operations before income taxes	383			404			391			319			428			(5)		(11)		1,178			1,301			(9)
Income tax provision (benefit)	139			147			142			115			155			(5)		(10)		428			471			(9)
Income (loss) from continuing operations, net of tax	$	244		$	257		$	249		$	204		$	273		(5)		(11)		$	750		$	830		(10)
Selected performance metrics:
Period-end loans held for investment	$	72,285		$	71,415		$	70,591		$	70,372		$	70,990		1		2		$	72,285		$	70,990		2
Average loans held for investment	71,727			70,988			70,296			70,704			71,097			1		1		71,006			71,300			—
Average yield on loans held for investment⁽⁷⁾	6.41		%	6.28		%	6.18		%	6.25		%	6.25		%	13	bps	16	bps	6.29		%	6.26		%	3	bps
Auto loan originations	$	6,804		$	6,529		$	5,844		$	4,977		$	5,590		4	%	22	%	$	19,177		$	16,208		18	%
Period-end deposits	178,793			176,340			177,803			172,702			170,866			1		5		178,793			170,866			5
Average deposits	177,402			176,808			174,254			171,521			170,816			—		4		176,159			170,500			3
Average deposit interest rate	0.56		%	0.55		%	0.54		%	0.54		%	0.56		%	1	bps	—		0.55		%	0.57		%	(2)	bps
Net charge-off rate	1.26			0.83			1.04			1.32			1.14			43		12	bps	1.04			0.93			11
30+ day performing delinquency rate	3.72			3.56			3.19			4.05			3.62			16		10		3.72			3.62			10
30+ day delinquency rate	4.26			4.07			3.67			4.67			4.22			19		4		4.26			4.22			4
Nonperforming loan rate⁽¹⁾	0.71			0.69			0.66			0.79			0.76			2		(5)		0.71			0.76			(5)
Nonperforming asset rate⁽²⁾	0.98			0.96			0.95			1.10			1.05			2		(7)		0.98			1.05			(7)
Auto—At origination FICO scores:⁽¹¹⁾
Greater than 660	51		%	51		%	51		%	51		%	50		%	—		1	%	51		%	50		%	1	%
621 - 660	17			17			17			17			17			—		—		17			17			—
620 or below	32			32			32			32			33			—		(1)		32			33			(1)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

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

																2016 Q3 vs				Nine Months Ended September 30,
	2016			2016			2016			2015			2015			2016		2015								2016 vs
(Dollars in millions) (unaudited)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2016			2015			2015
Commercial Banking
Earnings:
Net interest income	$	555		$	559		$	537		$	484		$	454		(1)	%	22	%	$	1,651		$	1,381		20	%
Non-interest income	156			129			118			142			108			21		44		403			345			17
Total net revenue⁽⁵⁾	711			688			655			626			562			3		27		2,054			1,726			19
Provision (benefit) for credit losses	61			128			228			118			75			(52)		(19)		417			184			127
Non-interest expense	349			343			322			342			272			2		28		1,014			814			25
Income (loss) from continuing operations before income taxes	301			217			105			166			215			39		40		623			728			(14)
Income tax provision (benefit)	110			79			38			60			78			39		41		227			264			(14)
Income (loss) from continuing operations, net of tax	$	191		$	138		$	67		$	106		$	137		38		39		$	396		$	464		(15)
Selected performance metrics:
Period-end loans held for investment	$	66,457		$	66,202		$	64,241		$	63,266		$	52,112		—		28		$	66,457		$	52,112		28
Average loans held for investment	66,034			64,938			63,375			57,379			51,592			2	%	28		64,787			51,215			27
Average yield on loans held for investment⁽⁵⁾⁽⁷⁾	3.50		%	3.45		%	3.38		%	3.18		%	3.21		%	5	bps	29	bps	3.45		%	3.23		%	22	bps
Period-end deposits	$	33,611		$	34,281		$	33,383		$	34,257		$	32,751		(2)	%	3	%	$	33,611		$	32,751		3	%
Average deposits	33,498			33,764			34,076			33,797			32,806			(1)		2		33,778			32,809			3
Average deposit interest rate	0.30		%	0.27		%	0.27		%	0.26		%	0.25		%	3	bps	5	bps	0.28		%	0.25		%	3	bps
Net charge-off rate	0.66			0.37			0.29			0.03			0.26			29		40		0.44			0.11			33
Nonperforming loan rate^(1)(12)	1.50			1.59			1.63			0.87			0.87			(9)		63		1.50			0.87			63
Nonperforming asset rate^(2)(12)	1.51			1.60			1.64			0.87			0.87			(9)		64		1.51			0.87			64
Risk category:^(12)(13)
Noncriticized	$	62,336		$	61,926		$	59,663		$	59,743		$	49,803		1	%	25	%	$	62,336		$	49,803		25	%
Criticized performing	2,473			2,456			2,595			2,015			1,725			1		43		2,473			1,725			43
Criticized nonperforming	994			1,050			1,050			550			453			(5)		119		994			453			119
PCI loans⁽¹²⁾	654			770			933			958			131			(15)		**		654			131			**
Total commercial loans	$	66,457		$	66,202		$	64,241		$	63,266		$	52,112		—		28		$	66,457		$	52,112		28
Risk category as a percentage of period-end loans held for investment:^(12)(13)
Noncriticized	93.8		%	93.5		%	92.9		%	94.4		%	95.6		%	30	bps	(180)	bps	93.8		%	95.6		%	(180)	bps
Criticized performing	3.7			3.7			4.0			3.2			3.3			—		40		3.7			3.3			40
Criticized nonperforming	1.5			1.6			1.6			0.9			0.9			(10)		60		1.5			0.9			60
PCI loans⁽¹²⁾	1.0			1.2			1.5			1.5			0.2			(20)		80		1.0			0.2			80
Total commercial loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%					100.0		%	100.0		%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Financial & Statistical Summary—Other and Total

											2016 Q3 vs				Nine Months Ended September 30,
	2016		2016		2016		2015		2015		2016		2015						2016 vs
(Dollars in millions) (unaudited)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2016		2015		2015
Other
Earnings:
Net interest income (expense)	$	46	$	50	$	66	$	47	$	(3)	(8)	%	**		$	162	$	6	**
Non-interest income	2		(2)		8		7		—		**		**		8		(46)		**
Total net revenue (loss)⁽⁵⁾	48		48		74		54		(3)		—		**		170		(40)		**
Provision (benefit) for credit losses	(1)		(1)		(2)		—		(2)		—		(50)	%	(4)		(2)		100	%
Non-interest expense	94		63		48		60		39		49		141		205		252		(19)
Income (loss) from continuing operations before income taxes	(45)		(14)		28		(6)		(40)		**		13		(31)		(290)		(89)
Income tax provision (benefit)	(71)		(78)		(65)		(51)		(78)		(9)		(9)		(214)		(299)		(28)
Income (loss) from continuing operations, net of tax	$	26	$	64	$	93	$	45	$	38	(59)		(32)		$	183	$	9	**
Selected performance metrics:
Period-end loans held for investment	$	76	$	82	$	82	$	88	$	92	(7)		(17)		$	76	$	92	(17)	%
Average loans held for investment	66		71		78		82		88		(7)		(25)		72		94		(23)
Period-end deposits	13,577		10,438		10,593		10,762		9,286		30		46		13,577		9,286		46
Average deposits	11,351		10,574		10,850		10,581		7,352		7		54		10,927		6,025		81
Total
Earnings:
Net interest income	$	5,277	$	5,093	$	5,056	$	4,961	$	4,760	4	%	11	%	$	15,426	$	13,873	11	%
Non-interest income	1,184		1,161		1,164		1,233		1,140		2		4		3,509		3,346		5
Total net revenue	6,461		6,254		6,220		6,194		5,900		3		10		18,935		17,219		10
Provision (benefit) for credit losses	1,588		1,592		1,527		1,380		1,092		—		45		4,707		3,156		49
Non-interest expense	3,361		3,295		3,223		3,480		3,160		2		6		9,879		9,516		4
Income (loss) from continuing operations before income taxes	1,512		1,367		1,470		1,334		1,648		11		(8)		4,349		4,547		(4)
Income tax provision (benefit)	496		424		452		426		530		17		(6)		1,372		1,443		(5)
Income (loss) from continuing operations, net of tax	$	1,016	$	943	$	1,018	$	908	$	1,118	8		(9)		$	2,977	$	3,104	(4)
Selected performance metrics:
Period-end loans held for investment	$	238,019	$	234,603	$	227,613	$	229,851	$	213,329	1		12		$	238,019	$	213,329	12
Average loans held for investment	235,843		230,379		226,736		220,052		211,227		2		12		231,004		207,608		11
Period-end deposits	225,981		221,059		221,779		217,721		212,903		2		6		225,981		212,903		6
Average deposits	222,251		221,146		219,180		215,899		210,974		—		5		220,864		209,334		6

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

⁽¹⁾

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

⁽²⁾

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

⁽³⁾

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

⁽⁴⁾

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

⁽⁵⁾

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

⁽⁶⁾

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

⁽⁷⁾

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

⁽⁸⁾

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

⁽⁹⁾

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

⁽¹⁰⁾

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

⁽¹¹⁾

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

⁽¹²⁾

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

2016

2015

(Dollars in millions) (unaudited)

Selected performance metrics:

Nonperforming loan rate

1.53

1.63

1.69

0.93

Nonperforming asset rate

1.54

1.64

1.70

0.93

Risk category:

Noncriticized

62,575

62,058

59,729

59,743

Criticized performing

2,766

2,961

3,321

2,814

Criticized nonperforming

1,018

1,080

1,083

586

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

Noncriticized

94.2

93.7

93.0

94.4

Criticized performing

4.2

4.5

5.2

4.5

Criticized nonperforming

1.5

1.6

1.7

0.9

⁽¹³⁾

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

^**

Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures⁽¹⁾

	Basel III Standardized Approach
(Dollars in millions) (unaudited)	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Regulatory Capital Metrics
Common equity Tier 1 capital	$	29,192		$	29,486		$	29,231		$	29,544		$	30,109
Tier 1 capital	33,069			32,780			32,525			32,838			33,402
Total capital⁽²⁾	40,565			38,767			38,399			38,838			37,694
Risk-weighted assets	275,102			269,667			262,368			265,739			249,081
Adjusted average assets⁽³⁾	328,628			319,968			317,403			309,037			300,010
Capital Ratios
Common equity Tier 1 capital⁽⁴⁾	10.6		%	10.9		%	11.1		%	11.1		%	12.1		%
Tier 1 capital⁽⁵⁾	12.0			12.2			12.4			12.4			13.4
Total capital⁽⁶⁾	14.7			14.4			14.6			14.6			15.1
Tier 1 leverage⁽³⁾	10.1			10.2			10.2			10.6			11.1
Tangible common equity ("TCE")⁽⁷⁾	8.8			9.0			9.1			8.9			9.8

Reconciliation of Non-GAAP Measures

We report certain non-GAAP measures that management uses in assessing its capital adequacy and the level of return generated. These non-GAAP measures consist of tangible common equity ("TCE"), tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. These metrics are considered key financial performance measures for the Company. The tables below provide the details of the calculation of our non-GAAP measures and regulatory capital. While our non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.

	2016			2016			2016			2015			2015
(Dollars in millions) (unaudited)	Q3			Q2			Q1			Q4			Q3
Tangible Common Equity (Period-End)
Stockholders' equity	$	48,213		$	48,108		$	47,707		$	47,284		$	47,685
Goodwill and intangible assets⁽⁸⁾	(15,475)			(15,553)			(15,629)			(15,701)			(15,153)
Noncumulative perpetual preferred stock⁽⁹⁾	(3,877)			(3,294)			(3,296)			(3,294)			(3,294)
Tangible common equity	$	28,861		$	29,261		$	28,782		$	28,289		$	29,238
Tangible Common Equity (Average)
Average stockholders' equity	$	49,033		$	48,934		$	49,078		$	48,712		$	48,456
Average goodwill and intangible assets⁽⁸⁾	(15,507)			(15,585)			(15,654)			(15,316)			(15,183)
Average noncumulative perpetual preferred stock⁽⁹⁾	(3,719)			(3,294)			(3,296)			(3,294)			(3,049)
Average tangible common equity	$	29,807		$	30,055		$	30,128		$	30,102		$	30,224

	2016			2016			2016			2015			2015
(Dollars in millions) (unaudited)	Q3			Q2			Q1			Q4			Q3
Tangible Assets (Period-End)
Total assets	$	345,061		$	339,117		$	330,346		$	334,048		$	313,700
Goodwill and intangible assets⁽⁸⁾	(15,475)			(15,553)			(15,629)			(15,701)			(15,153)
Tangible assets	$	329,586		$	323,564		$	314,717		$	318,347		$	298,547
Tangible Assets (Average)
Average total assets	$	343,153		$	334,479		$	331,919		$	323,354		$	313,822
Average goodwill and intangible assets⁽⁸⁾	(15,507)			(15,585)			(15,654)			(15,316)			(15,183)
Average tangible assets	$	327,646		$	318,894		$	316,265		$	308,038		$	298,639

Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach

(Dollars in millions) (unaudited)	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Common equity excluding AOCI	$	44,214		$	44,572		$	44,452		$	44,606		$	44,533
Adjustments:
AOCI^(10)(11)	199			332			117			(254)			75
Goodwill⁽⁸⁾	(14,288)			(14,296)			(14,301)			(14,296)			(13,805)
Intangible assets^(8)(11)	(435)			(483)			(532)			(393)			(374)
Other	(498)			(639)			(505)			(119)			(320)
Common equity Tier 1 capital	$	29,192		$	29,486		$	29,231		$	29,544		$	30,109
Risk-weighted assets	$	275,102		$	269,667		$	262,368		$	265,739		$	249,081
Common equity Tier 1 capital ratio⁽⁴⁾	10.6		%	10.9		%	11.1		%	11.1		%	12.1		%

__________
⁽¹⁾	Regulatory capital metrics and capital ratios as of September 30, 2016 are preliminary and therefore subject to change.
⁽²⁾	Total capital equals the sum of Tier 1 capital and Tier 2 capital.
⁽³⁾	Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.
⁽⁴⁾	Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.
⁽⁵⁾	Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
⁽⁶⁾	Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.
⁽⁷⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.
⁽⁸⁾	Includes impact of related deferred taxes.
⁽⁹⁾	Includes related surplus.
⁽¹⁰⁾	Amounts presented are net of tax.
⁽¹¹⁾	Amounts based on transition provisions for regulatory capital deductions and adjustments of 40% for 2015 and 60% for 2016.