Capital One Reports Third Quarter 2017 Net Income of $1.1 billion, or $2.14 per share

Excluding adjusting items, Third Quarter 2017 Net Income of $2.42 per share(1)

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Oct 24, 2017, 16:05 ET

MCLEAN, Va., Oct. 24, 2017 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2017 of $1.1 billion, or $2.14 per diluted common share, compared with net income of $1.0 billion, or $1.94 per diluted common share in the second quarter of 2017, and with net income of $1.0 billion, or $1.90 per diluted common share in the third quarter of 2016. Excluding adjusting items, net income for the third quarter of 2017 was $2.42 per diluted common share⁽¹⁾.

"We posted another quarter of resilient and responsible growth," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "We continue to carefully manage risk across our businesses. And, we're driving improving efficiency even as we invest to grow and to transform our company as banking goes digital."

Adjusting items in the third quarter of 2017 included:


	Pre-Tax		Diluted EPS
(Dollars in millions, except per share data)	Impact		Impact
Deal-specific impacts of the Cabela's acquisition	$	(105)	$	(0.14)
Restructuring charges	(108)		(0.14)

Notable items in the third quarter of 2017 included:


	Pre-Tax		Diluted EPS
(Dollars in millions, except per share data)	Impact		Impact
Impact of hurricanes Harvey and Irma	$	(114)	$	(0.15)
Gains on investment portfolio repositioning	69		0.09

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

Third Quarter 2017 Income Statement Summary:

Total net revenue increased 4 percent to $7.0 billion.
Total non-interest expense increased 4 percent to $3.6 billion:

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

Pre-provision earnings increased 4 percent to $3.4 billion⁽²⁾.
Provision for credit losses increased 2 percent to $1.8 billion:

Net charge-offs of $1.6 billion.
$227 million reserve build.

Net interest margin of 7.08 percent, up 20 basis points.
Efficiency ratio of 51.07 percent:

Efficiency ratio excluding adjusting items was 49.28 percent⁽¹⁾.

Third Quarter 2017 Balance Sheet Summary:

Common equity Tier 1 capital ratio under Basel III Standardized Approach of 10.7 percent at September 30, 2017.
Period-end loans held for investment in the quarter increased $8.1 billion, or 3 percent, to $252.4 billion.

Domestic Card period-end loans increased $7.1 billion, or 8 percent, to $100.0 billion.
Consumer Banking period-end loans increased $591 million, or 1 percent, to $75.6 billion:

Auto period-end loans increased $1.5 billion, or 3 percent, to $53.3 billion.
Home loans period-end loans decreased $904 million, or 5 percent, to $18.8 billion, driven by run-off of acquired portfolios.

Commercial Banking period-end loans decreased $2 million, or less than 1 percent, to $67.7 billion.

Average loans held for investment in the quarter increased $3.6 billion, or 1 percent, to $245.8 billion.

Domestic Card average loans increased $2.0 billion, or 2 percent, to $93.7 billion.
Consumer Banking average loans increased $894 million, or 1 percent, to $75.4 billion:

Auto average loans increased $1.8 billion, or 4 percent, to $52.6 billion.
Home loans average loans decreased $901 million, or 4 percent, to $19.3 billion, driven by run-off of acquired portfolios.

Commercial Banking average loans increased $190 million, or less than 1 percent, to $67.9 billion.

Period-end total deposits decreased $701 million, or less than 1 percent, to $239.1 billion, while average deposits decreased $1.7 billion, or 1 percent, to $238.8 billion.
Interest-bearing deposits rate paid increased 6 basis points to 0.77 percent.

⁽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.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on October 24, 2017 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page (www.capitalone.com). Choose "About Us," then choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through November 7, 2017 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 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 $239.1 billion in deposits and $361.4 billion in total assets as of September 30, 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.

Exhibit 99.2

Capital One Financial Corporation
Financial Supplement⁽¹⁾⁽²⁾
Third 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 Quarterly Report on Form 10-Q for the period ended September 30, 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 Q3 vs				Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted)	2017		2017		2017		2016		2016		2017		2016						2017 vs
(Dollars in millions, except per share data and as noted)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2017		2016		2016
Income Statement
Net interest income	$	5,700	$	5,473	$	5,474	$	5,447	$	5,277	4	%	8	%	$	16,647	$	15,426	8	%
Non-interest income	1,285		1,231		1,061		1,119		1,184		4		9		3,577		3,509		2
Total net revenue⁽¹⁾	6,985		6,704		6,535		6,566		6,461		4		8		20,224		18,935		7
Provision for credit losses	1,833		1,800		1,992		1,752		1,588		2		15		5,625		4,707		20
Non-interest expense:
Marketing	379		435		396		575		393		(13)		(4)		1,210		1,236		(2)
Amortization of intangibles	61		61		62		101		89		—		(31)		184		285		(35)
Operating expenses	3,127		2,918		2,976		3,003		2,879		7		9		9,021		8,358		8
Total non-interest expense	3,567		3,414		3,434		3,679		3,361		4		6		10,415		9,879		5
Income from continuing operations before income taxes	1,585		1,490		1,109		1,135		1,512		6		5		4,184		4,349		(4)
Income tax provision	448		443		314		342		496		1		(10)		1,205		1,372		(12)
Income from continuing operations, net of tax	1,137		1,047		795		793		1,016		9		12		2,979		2,977		—
Income (loss) from discontinued operations, net of tax⁽²⁾	(30)		(11)		15		(2)		(11)		173		173		(26)		(17)		53
Net income	1,107		1,036		810		791		1,005		7		10		2,953		2,960		—
Dividends and undistributed earnings allocated to participating securities⁽³⁾	(8)		(8)		(5)		(6)		(6)		—		33		(21)		(18)		17
Preferred stock dividends	(52)		(80)		(53)		(75)		(37)		(35)		41		(185)		(139)		33
Net income available to common stockholders	$	1,047	$	948	$	752	$	710	$	962	10		9		$	2,747	$	2,803	(2)
Common Share Statistics
Basic earnings per common share:⁽³⁾
Net income from continuing operations	$	2.22	$	1.98	$	1.53	$	1.47	$	1.94	12	%	14	%	$	5.73	$	5.50	4	%
Income (loss) from discontinued operations	(0.06)		(0.02)		0.03		—		(0.02)		200		200		(0.05)		(0.03)		67
Net income per basic common share	$	2.16	$	1.96	$	1.56	$	1.47	$	1.92	10		13		$	5.68	$	5.47	4
Diluted earnings per common share:⁽³⁾
Net income from continuing operations	$	2.20	$	1.96	$	1.51	$	1.45	$	1.92	12		15		$	5.68	$	5.45	4
Income (loss) from discontinued operations	(0.06)		(0.02)		0.03		—		(0.02)		200		200		(0.05)		(0.03)		67
Net income per diluted common share	$	2.14	$	1.94	$	1.54	$	1.45	$	1.90	10		13		$	5.63	$	5.42	4
Weighted-average common shares outstanding (in millions):
Basic	484.9		484.0		482.3		483.5		501.1		—		(3)		483.7		512.0		(6)
Diluted	489.0		488.1		487.9		489.2		505.9		—		(3)		488.1		516.8		(6)
Common shares outstanding (period-end, in millions)	484.4		483.7		482.8		480.2		489.2		—		(1)		484.4		489.2		(1)
Dividends paid per common share	$	0.40	$	0.40	$	0.40	$	0.40	$	0.40	—		—		$	1.20	$	1.20	—
Tangible book value per common share (period-end)⁽⁴⁾	63.06		60.94		58.66		57.76		59.00		3		7		63.06		59.00		7

											2017 Q3 vs				Nine Months Ended September 30,
(Dollars in millions)	2017		2017		2017		2016		2016		2017		2016						2017 vs
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2017		2016		2016
Balance Sheet (Period-End)
Loans held for investment⁽⁵⁾	$	252,422	$	244,302	$	240,588	$	245,586	$	238,019	3	%	6	%	$	252,422	$	238,019	6	%
Interest-earning assets	329,002		319,286		316,712		321,807		313,431		3		5		329,002		313,431		5
Total assets	361,402		350,593		348,549		357,033		345,061		3		5		361,402		345,061		5
Interest-bearing deposits	212,956		213,810		214,818		211,266		200,416		—		6		212,956		200,416		6
Total deposits	239,062		239,763		241,182		236,768		225,981		—		6		239,062		225,981		6
Borrowings	59,458		49,954		48,439		60,460		59,820		19		(1)		59,458		59,820		(1)
Common equity	45,794		44,777		43,680		43,154		44,336		2		3		45,794		44,336		3
Total stockholders' equity	50,154		49,137		48,040		47,514		48,213		2		4		50,154		48,213		4
Balance Sheet (Average Balances)
Loans held for investment⁽⁵⁾	$	245,822	$	242,241	$	241,505	$	240,027	$	235,843	1	%	4	%	$	243,205	$	231,004	5	%
Interest-earning assets	322,015		318,078		318,358		317,853		310,987		1		4		319,497		304,423		5
Total assets	355,191		349,891		351,641		350,225		343,153		2		4		352,216		336,539		5
Interest-bearing deposits	213,137		214,412		212,973		206,464		196,913		(1)		8		213,508		195,565		9
Total deposits	238,843		240,550		238,550		232,204		222,251		(1)		7		239,316		220,864		8
Borrowings	54,271		48,838		53,357		58,624		60,708		11		(11)		52,159		56,292		(7)
Common equity	45,816		44,645		43,833		43,921		45,314		3		1		44,772		45,578		(2)
Total stockholders' equity	50,176		49,005		48,193		47,972		49,033		2		2		49,132		49,015		—

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

																2017 Q3 vs				Nine Months Ended September 30,
(Dollars in millions, except as noted)	2017			2017			2017			2016			2016			2017		2016								2017 vs
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2017			2016			2016
Performance Metrics
Net interest income growth (period over period)	4		%	—			—			3		%	4		%	**		**		8		%	11		%	**
Non-interest income growth (period over period)	4			16		%	(5)		%	(5)			2			**		**		2			5			**
Total net revenue growth (period over period)	4			3			—			2			3			**		**		7			10			**
Total net revenue margin⁽⁶⁾	8.68			8.43			8.21			8.26			8.31			25	bps	37	bps	8.44			8.29			15	bps
Net interest margin⁽⁷⁾	7.08			6.88			6.88			6.85			6.79			20		29		6.95			6.76			19
Return on average assets	1.28			1.20			0.90			0.91			1.18			8		10		1.13			1.18			(5)
Return on average tangible assets⁽⁸⁾	1.34			1.25			0.95			0.95			1.24			9		10		1.18			1.24			(6)
Return on average common equity⁽⁹⁾	9.40			8.59			6.73			6.48			8.59			81		81		8.26			8.25			1
Return on average tangible common equity⁽¹⁰⁾	14.11			13.09			10.37			10.00			13.06			102		105		12.56			12.54			2
Non-interest expense as a percentage of average loans held for investment	5.80			5.64			5.69			6.13			5.70			16		10		5.71			5.70			1
Efficiency ratio⁽¹¹⁾	51.07			50.92			52.55			56.03			52.02			15		(95)		51.50			52.17			(67)
Effective income tax rate for continuing operations	28.3			29.7			28.3			30.1			32.8			(140)		(450)		28.8			31.5			(270)
Employees (in thousands), period-end	50.4			49.9			48.4			47.3			46.5			1	%	8	%	50.4			46.5			8	%
Credit Quality Metrics
Allowance for loan and lease losses	$	7,418		$	7,170		$	6,984		$	6,503		$	6,258		3	%	19	%	$	7,418		$	6,258		19	%
Allowance as a percentage of loans held for investment	2.94		%	2.93		%	2.90		%	2.65		%	2.63		%	1	bps	31	bps	2.94		%	2.63		%	31	bps
Net charge-offs	$	1,606		$	1,618		$	1,510		$	1,489		$	1,240		(1)	%	30	%	$	4,734		$	3,573		32	%
Net charge-off rate⁽¹²⁾	2.61		%	2.67		%	2.50		%	2.48		%	2.10		%	(6)	bps	51	bps	2.60		%	2.06		%	54	bps
30+ day performing delinquency rate⁽¹³⁾	2.93			2.69			2.61			2.93			2.71			24		22		2.93			2.71			22
30+ day delinquency rate	3.24			2.99			2.92			3.27			3.04			25		20		3.24			3.04			20
Capital Ratios⁽¹⁴⁾
Common equity Tier 1 capital	10.7		%	10.7		%	10.4		%	10.1		%	10.6		%	—		10	bps	10.7		%	10.6		%	10	bps
Tier 1 capital	12.2			12.2			12.0			11.6			12.0			—		20		12.2			12.0			20
Total capital	14.8			14.9			14.7			14.3			14.7			(10)	bps	10		14.8			14.7			10
Tier 1 leverage	10.5			10.3			9.9			9.9			10.1			20		40		10.5			10.1			40
Tangible common equity ("TCE")⁽¹⁵⁾	8.8			8.8			8.5			8.1			8.8			—		—		8.8			8.8			—

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

											2017 Q3 vs				Nine Months Ended September 30,
	2017		2017		2017		2016		2016		2017		2016						2017 vs
(Dollars in millions, except per share data and as noted)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2017		2016		2016
Interest income:
Loans, including loans held for sale	$	5,960	$	5,669	$	5,626	$	5,587	$	5,383	5	%	11	%	$	17,255	$	15,616	10	%
Investment securities	431		433		416		393		386		—		12		1,280		1,206		6
Other	29		26		28		29		25		12		16		83		60		38
Total interest income	6,420		6,128		6,070		6,009		5,794		5		11		18,618		16,882		10
Interest expense:
Deposits	410		382		353		332		306		7		34		1,145		881		30
Securitized debt obligations	85		82		69		65		56		4		52		236		151		56
Senior and subordinated notes	194		179		149		138		121		8		60		522		338		54
Other borrowings	31		12		25		27		34		158		(9)		68		86		(21)
Total interest expense	720		655		596		562		517		10		39		1,971		1,456		35
Net interest income	5,700		5,473		5,474		5,447		5,277		4		8		16,647		15,426		8
Provision for credit losses	1,833		1,800		1,992		1,752		1,588		2		15		5,625		4,707		20
Net interest income after provision for credit losses	3,867		3,673		3,482		3,695		3,689		5		5		11,022		10,719		3
Non-interest income:^(16)(17)
Service charges and other customer-related fees	414		418		371		412		417		(1)		(1)		1,203		1,233		(2)
Interchange fees, net	662		676		570		624		603		(2)		10		1,908		1,828		4
Net securities gains (losses)	68		(4)		—		(4)		1		**		**		64		(7)		**
Other	141		141		120		87		163		—		(13)		402		455		(12)
Total non-interest income	1,285		1,231		1,061		1,119		1,184		4		9		3,577		3,509		2
Non-interest expense:^(16)(17)
Salaries and associate benefits	1,524		1,383		1,471		1,336		1,317		10		16		4,378		3,866		13
Occupancy and equipment	471		474		471		522		499		(1)		(6)		1,416		1,422		—
Marketing	379		435		396		575		393		(13)		(4)		1,210		1,236		(2)
Professional services	297		279		247		312		257		6		16		823		762		8
Communications and data processing	294		289		288		297		291		2		1		871		873		—
Amortization of intangibles	61		61		62		101		89		—		(31)		184		285		(35)
Other	541		493		499		536		515		10		5		1,533		1,435		7
Total non-interest expense	3,567		3,414		3,434		3,679		3,361		4		6		10,415		9,879		5
Income from continuing operations before income taxes	1,585		1,490		1,109		1,135		1,512		6		5		4,184		4,349		(4)
Income tax provision	448		443		314		342		496		1		(10)		1,205		1,372		(12)
Income from continuing operations, net of tax	1,137		1,047		795		793		1,016		9		12		2,979		2,977		—
Income (loss) from discontinued operations, net of tax⁽²⁾	(30)		(11)		15		(2)		(11)		173		173		(26)		(17)		53
Net income	1,107		1,036		810		791		1,005		7		10		2,953		2,960		—
Dividends and undistributed earnings allocated to participating securities⁽³⁾	(8)		(8)		(5)		(6)		(6)		—		33		(21)		(18)		17
Preferred stock dividends	(52)		(80)		(53)		(75)		(37)		(35)		41		(185)		(139)		33
Net income available to common stockholders	$	1,047	$	948	$	752	$	710	$	962	10		9		$	2,747	$	2,803	(2)

											2017 Q3 vs				Nine Months Ended September 30,
	2017		2017		2017		2016		2016		2017		2016						2017 vs
(Dollars in millions, except per share data and as noted)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2017		2016		2016
Basic earnings per common share:⁽³⁾
Net income from continuing operations	$	2.22	$	1.98	$	1.53	$	1.47	$	1.94	12	%	14	%	$	5.73	$	5.50	4	%
Income (loss) from discontinued operations	(0.06)		(0.02)		0.03		—		(0.02)		200		200		(0.05)		(0.03)		67
Net income per basic common share	$	2.16	$	1.96	$	1.56	$	1.47	$	1.92	10		13		$	5.68	$	5.47	4
Diluted earnings per common share:⁽³⁾
Net income from continuing operations	$	2.20	$	1.96	$	1.51	$	1.45	$	1.92	12		15		$	5.68	$	5.45	4
Income (loss) from discontinued operations	(0.06)		(0.02)		0.03		—		(0.02)		200		200		(0.05)		(0.03)		67
Net income per diluted common share	$	2.14	$	1.94	$	1.54	$	1.45	$	1.90	10		13		$	5.63	$	5.42	4
Weighted-average common shares outstanding (in millions):
Basic common shares	484.9		484.0		482.3		483.5		501.1		—		(3)		483.7		512.0		(6)
Diluted common shares	489.0		488.1		487.9		489.2		505.9		—		(3)		488.1		516.8		(6)
Dividends paid per common share	$	0.40	$	0.40	$	0.40	$	0.40	$	0.40	—		—		$	1.20	$	1.20	—

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

											2017 Q3 vs
	2017		2017		2017		2016		2016		2017		2016
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3		Q2		Q3
Assets:
Cash and cash equivalents:
Cash and due from banks	$	4,154	$	3,352	$	3,489	$	4,185	$	3,350	24	%	24	%
Interest-bearing deposits and other short-term investments	4,330		3,363		5,826		5,791		5,744		29		(25)
Total cash and cash equivalents	8,484		6,715		9,315		9,976		9,094		26		(7)
Restricted cash for securitization investors	304		300		486		2,517		287		1		6
Securities available for sale, at fair value	39,742		41,120		41,260		40,737		41,511		(3)		(4)
Securities held to maturity, at carrying value	28,650		27,720		26,170		25,712		25,019		3		15
Loans held for investment:⁽⁵⁾
Unsecuritized loans held for investment	217,659		214,864		211,038		213,824		206,763		1		5
Loans held in consolidated trusts	34,763		29,438		29,550		31,762		31,256		18		11
Total loans held for investment	252,422		244,302		240,588		245,586		238,019		3		6
Allowance for loan and lease losses	(7,418)		(7,170)		(6,984)		(6,503)		(6,258)		3		19
Net loans held for investment	245,004		237,132		233,604		239,083		231,761		3		6
Loans held for sale, at lower of cost or fair value	1,566		777		735		1,043		994		102		58
Premises and equipment, net	3,955		3,825		3,727		3,675		3,561		3		11
Interest receivable	1,426		1,346		1,368		1,351		1,251		6		14
Goodwill	14,532		14,524		14,521		14,519		14,493		—		—
Other assets	17,739		17,134		17,363		18,420		17,090		4		4
Total assets	$	361,402	$	350,593	$	348,549	$	357,033	$	345,061	3		5

											2017 Q3 vs
	2017		2017		2017		2016		2016		2017		2016
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3		Q2		Q3
Liabilities:
Interest payable	$	301	$	376	$	260	$	327	$	237	(20)	%	27	%
Deposits:
Non-interest-bearing deposits	26,106		25,953		26,364		25,502		25,565		1		2
Interest-bearing deposits	212,956		213,810		214,818		211,266		200,416		—		6
Total deposits	239,062		239,763		241,182		236,768		225,981		—		6
Securitized debt obligations	17,087		18,358		18,528		18,826		18,411		(7)		(7)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	767		958		1,046		992		1,079		(20)		(29)
Senior and subordinated notes	28,420		28,478		26,405		23,431		24,001		—		18
Other borrowings	13,184		2,160		2,460		17,211		16,329		**		(19)
Total other debt	42,371		31,596		29,911		41,634		41,409		34		2
Other liabilities	12,427		11,363		10,628		11,964		10,810		9		15
Total liabilities	311,248		301,456		300,509		309,519		296,848		3		5

Stockholders' equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	31,526		31,413		31,326		31,157		30,439		—		4
Retained earnings	31,946		31,086		30,326		29,766		29,245		3		9
Accumulated other comprehensive income (loss)	(622)		(683)		(934)		(949)		121		(9)		**
Treasury stock, at cost	(12,703)		(12,686)		(12,685)		(12,467)		(11,599)		—		10
Total stockholders' equity	50,154		49,137		48,040		47,514		48,213		2		4
Total liabilities and stockholders' equity	$	361,402	$	350,593	$	348,549	$	357,033	$	345,061	3		5

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 $356 million in Q3 2017, $313 million in Q2 2017, $321 million in both Q1 2017 and Q4 2016 and $289 million in Q3 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

(67)

(2)

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

(92)

(2)

The mortgage representation and warranty reserve was $401 million as of September 30, 2017, $521 million as of June 30, 2017, $516 million as of March 31, 2017, $630 million as of December 31, 2016 and $632
million as of September 30, 2016.

⁽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

12,658

13,599

14,838

15,896

17,011

Period-end loans held for investment

11,985

12,895

14,102

15,071

16,149

Average loans held for investment

12,270

13,305

14,433

15,443

16,529

⁽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 September 30, 2017 include the impact of this acquisition. Excluding this impact, the 30+ day performing delinquency rate as of September 30, 2017 would have been 2.98%.

⁽¹⁴⁾

Capital ratios as of the end of Q3 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.

⁽¹⁶⁾

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

⁽¹⁷⁾

The primary net effects of the reclassifications discussed in footnote 16 above for Q3 2016 and the nine months ended September 30, 2016, compared to previously reported results were (i) an increase to Service charges and other customer-related fees of $30 million and $71 million, respectively; (ii) a decrease to Other non-interest income of $31 million and $87 million, respectively; and (iii) increase to Communications and data processing expense of $39 million and $116 million, respectively, with corresponding decreases to Professional services.

^**

Not meaningful.

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

	2017 Q3						2017 Q2						2016 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, 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	$	247,022	$	5,960	9.65	%	$	242,967	$	5,669	9.33	%	$	237,067	$	5,383	9.08	%
Investment securities	69,302		431		2.49		68,857		433		2.52		66,291		386		2.33
Cash equivalents and other	5,691		29		2.04		6,254		26		1.66		7,629		25		1.31
Total interest-earning assets	$	322,015	$	6,420	7.97		$	318,078	$	6,128	7.71		$	310,987	$	5,794	7.45
Interest-bearing liabilities:
Interest-bearing deposits	$	213,137	$	410	0.77		$	214,412	$	382	0.71		$	196,913	$	306	0.62
Securitized debt obligations	17,598		85		1.93		18,400		82		1.78		17,389		56		1.29
Senior and subordinated notes	28,753		194		2.70		27,821		179		2.57		22,342		121		2.17
Other borrowings and liabilities	9,320		31		1.33		3,656		12		1.31		21,840		34		0.62
Total interest-bearing liabilities	$	268,808	$	720	1.07		$	264,289	$	655	0.99		$	258,484	$	517	0.80
Net interest income/spread			$	5,700	6.90				$	5,473	6.72				$	5,277	6.65
Impact of non-interest-bearing funding					0.18						0.16						0.14
Net interest margin					7.08	%					6.88	%					6.79	%

							Nine Months Ended September 30,
							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							$	244,097	$	17,255	9.43	%	$	232,064	$	15,616	8.97	%
Investment securities							68,862		1,280		2.48		65,735		1,206		2.45
Cash equivalents and other							6,538		83		1.69		6,624		60		1.21
Total interest-earning assets							$	319,497	$	18,618	7.77		$	304,423	$	16,882	7.39
Interest-bearing liabilities:
Interest-bearing deposits							$	213,508	$	1,145	0.72		$	195,565	$	881	0.60
Securitized debt obligations							17,726		236		1.78		15,997		151		1.26
Senior and subordinated notes							27,140		522		2.56		22,019		338		2.05
Other borrowings and liabilities							8,434		68		1.08		19,099		86		0.60
Total interest-bearing liabilities							$	266,808	$	1,971	0.98		$	252,680	$	1,456	0.77
Net interest income/spread									$	16,647	6.79				$	15,426	6.62
Impact of non-interest-bearing funding											0.16						0.14
Net interest margin											6.95	%					6.76	%
__________
⁽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 Q3 vs				Nine Months Ended September 30,
(Dollars in millions, except as noted)	2017 Q3			2017 Q2			2017 Q1			2016 Q4			2016 Q3			2017 Q2		2016 Q3		2017			2016			2017 vs. 2016
Loans Held For Investment (Period-End)
Credit card:
Domestic credit card	$	99,981		$	92,866		$	91,092		$	97,120		$	90,955		8	%	10	%	$	99,981		$	90,955		10	%
International card businesses	9,149			8,724			8,121			8,432			8,246			5		11		9,149			8,246			11
Total credit card	109,130			101,590			99,213			105,552			99,201			7		10		109,130			99,201			10
Consumer banking:
Auto	53,290			51,765			49,771			47,916			46,311			3		15		53,290			46,311			15
Home loan	18,820			19,724			20,738			21,584			22,448			(5)		(16)		18,820			22,448			(16)
Retail banking	3,454			3,484			3,473			3,554			3,526			(1)		(2)		3,454			3,526			(2)
Total consumer banking	75,564			74,973			73,982			73,054			72,285			1		5		75,564			72,285			5
Commercial banking:
Commercial and multifamily real estate	27,944			27,428			27,218			26,609			26,507			2		5		27,944			26,507			5
Commercial and industrial	39,306			39,801			39,638			39,824			39,432			(1)		—		39,306			39,432			—
Total commercial lending	67,250			67,229			66,856			66,433			65,939			—		2		67,250			65,939			2
Small-ticket commercial real estate	420			443			464			483			518			(5)		(19)		420			518			(19)
Total commercial banking	67,670			67,672			67,320			66,916			66,457			—		2		67,670			66,457			2
Other loans	58			67			73			64			76			(13)		(24)		58			76			(24)
Total loans held for investment	$	252,422		$	244,302		$	240,588		$	245,586		$	238,019		3		6		$	252,422		$	238,019		6
Loans Held For Investment (Average)
Credit card:
Domestic credit card	$	93,729		$	91,769		$	93,034		$	92,623		$	89,763		2	%	4	%	$	92,847		$	86,974		7	%
International card businesses	8,816			8,274			8,135			8,168			8,253			7		7		8,411			8,165			3
Total credit card	102,545			100,043			101,169			100,791			98,016			3		5		101,258			95,139			6
Consumer banking:
Auto	52,615			50,803			48,673			47,126			45,355			4		16		50,711			43,647			16
Home loan	19,302			20,203			21,149			21,984			22,852			(4)		(16)		20,211			23,819			(15)
Retail banking	3,446			3,463			3,509			3,549			3,520			—		(2)		3,473			3,540			(2)
Total consumer banking	75,363			74,469			73,331			72,659			71,727			1		5		74,395			71,006			5
Commercial banking:
Commercial and multifamily real estate	27,703			27,401			26,587			26,445			26,154			1		6		27,235			25,612			6
Commercial and industrial	39,723			39,815			39,877			39,573			39,346			—		1		39,804			38,610			3
Total commercial lending	67,426			67,216			66,464			66,018			65,500			—		3		67,039			64,222			4
Small-ticket commercial real estate	433			453			474			497			534			(4)		(19)		453			565			(20)
Total commercial banking	67,859			67,669			66,938			66,515			66,034			—		3		67,492			64,787			4
Other loans	55			60			67			62			66			(8)		(17)		60			72			(17)
Total average loans held for investment	$	245,822		$	242,241		$	241,505		$	240,027		$	235,843		1		4		$	243,205		$	231,004		5

																2017 Q3 vs				Nine Months Ended September 30,
	2017 Q3			2017 Q2			2017 Q1			2016 Q4			2016 Q3			2017 Q2		2016 Q3		2017			2016			2017 vs. 2016
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card⁽¹⁾		4.64	%		5.11	%		5.14	%		4.66	%		3.74	%	(47)	bps	90	bps		4.96	%		3.99	%	97	bps
International card businesses		3.08			4.08			3.69			3.35			3.18		(100)		(10)			3.60			3.32		28
Total credit card⁽¹⁾		4.51			5.02			5.02			4.56			3.70		(51)		81			4.85			3.93		92
Consumer banking:
Auto		1.96			1.70			1.64			2.07			1.85		26		11			1.77			1.55		22
Home loan		0.02			0.04			0.03			0.08			0.03		(2)		(1)			0.03			0.05		(2)
Retail banking		2.10			1.71			1.92			1.73			1.75		39		35			1.91			1.46		45
Total consumer banking		1.47			1.25			1.19			1.45			1.26		22		21			1.30			1.04		26
Commercial banking:
Commercial and multifamily real estate		(0.01)			0.03			—			(0.02)			0.01		(4)		(2)			0.01			(0.01)		2
Commercial and industrial		1.64			1.34			0.22			0.80			1.09		30		55			1.07			0.74		33
Total commercial lending		0.97			0.81			0.13			0.47			0.66		16		31			0.64			0.44		20
Small-ticket commercial real estate		0.12			(0.22)			1.05			(0.02)			0.74		34		(62)			0.33			0.39		(6)
Total commercial banking		0.96			0.80			0.14			0.47			0.66		16		30			0.64			0.44		20
Total net charge-offs		2.61			2.67			2.50			2.48			2.10		(6)		51			2.60			2.06		54
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card⁽¹⁾		3.94	%		3.63	%		3.71	%		3.95	%		3.68	%	31	bps	26	bps		3.94	%		3.68	%	26	bps
International card businesses		3.54			3.28			3.39			3.36			3.33		26		21			3.54			3.33		21
Total credit card⁽¹⁾		3.91			3.60			3.68			3.91			3.65		31		26			3.91			3.65		26
Consumer banking:
Auto		5.71			5.40			5.03			6.12			5.67		31		4			5.71			5.67		4
Home loan		0.17			0.14			0.15			0.20			0.19		3		(2)			0.17			0.19		(2)
Retail banking		0.73			0.54			0.59			0.70			0.59		19		14			0.73			0.59		14
Total consumer banking		4.10			3.79			3.45			4.10			3.72		31		38			4.10			3.72		38
Nonperforming Loans and Nonperforming Assets Rates⁽²⁾⁽³⁾
Credit card:
International card businesses		0.28	%		0.37	%		0.47	%		0.50	%		0.53	%	(9)	bps	(25)	bps		0.28	%		0.53	%	(25)	bps
Total credit card		0.02			0.03			0.04			0.04			0.04		(1)		(2)			0.02			0.04		(2)
Consumer banking:
Auto		0.65			0.53			0.36			0.47			0.43		12		22			0.65			0.43		22
Home loan		0.84			1.31			1.27			1.26			1.23		(47)		(39)			0.84			1.23		(39)
Retail banking		0.97			0.96			0.82			0.86			1.05		1		(8)			0.97			1.05		(8)
Total consumer banking		0.71			0.75			0.64			0.72			0.71		(4)		—			0.71			0.71		—
Commercial banking:
Commercial and multifamily real estate		0.23			0.13			0.13			0.11			0.08		10		15			0.23			0.08		15
Commercial and industrial		1.82			1.62			2.02			2.48			2.44		20		(62)			1.82			2.44		(62)
Total commercial lending		1.16			1.01			1.25			1.53			1.49		15		(33)			1.16			1.49		(33)
Small-ticket commercial real estate		1.59			1.89			1.65			0.85			2.13		(30)		(54)			1.59			2.13		(54)
Total commercial banking		1.16			1.01			1.25			1.53			1.50		15		(34)			1.16			1.50		(34)
Total nonperforming loans		0.54			0.53			0.57			0.65			0.66		1		(12)			0.54			0.66		(12)
Total nonperforming assets		0.60			0.60			0.66			0.76			0.77		—		(17)			0.60			0.77		(17)

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, 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 June 30, 2017	$	4,825	$	385	$	5,210	$	1,066	$	59	$	74	$	1,199	$	758	$	3	$	7,170
Charge-offs	(1,351)		(120)		(1,471)		(411)		(2)		(22)		(435)		(168)		(36)		(2,110)
Recoveries	264		52		316		154		1		4		159		5		24		504
Net charge-offs	(1,087)		(68)		(1,155)		(257)		(1)		(18)		(276)		(163)		(12)		(1,606)
Provision for loan and lease losses	1,417		49		1,466		274		3		15		292		75		11		1,844
Allowance build (release) for loan and lease losses	330		(19)		311		17		2		(3)		16		(88)		(1)		238
Other changes⁽⁵⁾	—		13		13		—		(2)		—		(2)		(1)		—		10
Balance as of September 30, 2017	5,155		379		5,534		1,083		59		71		1,213		669		2		7,418
Reserve for unfunded lending commitments:
Balance as of June 30, 2017	—		—		—		—		—		7		7		132		—		139
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		1		1		(12)		—		(11)
Balance as of September 30, 2017	—		—		—		—		—		8		8		120		—		128
Combined allowance and reserve as of September 30, 2017	$	5,155	$	379	$	5,534	$	1,083	$	59	$	79	$	1,221	$	789	$	2	$	7,546

	Nine Months Ended September 30, 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	(4,289)		(355)		(4,644)		(1,119)		(9)		(61)		(1,189)		(334)		(36)		(6,203)
Recoveries	834		128		962		448		4		11		463		12		32		1,469
Net charge-offs	(3,455)		(227)		(3,682)		(671)		(5)		(50)		(726)		(322)		(4)		(4,734)
Provision for loan and lease losses	4,381		199		4,580		797		1		41		839		210		4		5,633
Allowance build (release) for loan and lease losses	926		(28)		898		126		(4)		(9)		113		(112)		—		899
Other changes⁽⁵⁾	—		30		30		—		(2)		—		(2)		(12)		—		16
Balance as of September 30, 2017	5,155		379		5,534		1,083		59		71		1,213		669		2		7,418
Reserve for unfunded lending commitments:
Balance as of December 31, 2016	—		—		—		—		—		7		7		129		—		136
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		1		1		(9)		—		(8)
Balance as of September 30, 2017	—		—		—		—		—		8		8		120		—		128
Combined allowance and reserve as of September 30, 2017	$	5,155	$	379	$	5,534	$	1,083	$	59	$	79	$	1,221	$	789	$	2	$	7,546

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

	Three Months Ended September 30, 2017										Nine Months Ended September 30, 2017
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Other		Total		Credit Card		Consumer Banking		Commercial Banking		Other		Total
Net interest income	$	3,440	$	1,649	$	560	$	51	$	5,700	$	10,080	$	4,744	$	1,695	$	128	$	16,647
Non-interest income	865		192		179		49		1,285		2,478		570		520		9		3,577
Total net revenue⁽⁶⁾	4,305		1,841		739		100		6,985		12,558		5,314		2,215		137		20,224
Provision for credit losses	1,466		293		63		11		1,833		4,580		840		201		4		5,625
Non-interest expense	1,961		1,051		394		161		3,567		5,808		3,152		1,166		289		10,415
Income (loss) from continuing operations before income taxes	878		497		282		(72)		1,585		2,170		1,322		848		(156)		4,184
Income tax provision (benefit)	306		181		103		(142)		448		774		482		310		(361)		1,205
Income from continuing operations, net of tax	$	572	$	316	$	179	$	70	$	1,137	$	1,396	$	840	$	538	$	205	$	2,979

	Three Months Ended June 30, 2017
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Other		Total
Net interest income	$	3,294	$	1,578	$	569	$	32	$	5,473
Non-interest income	875		183		183		(10)		1,231
Total net revenue⁽⁶⁾	4,169		1,761		752		22		6,704
Provision (benefit) for credit losses	1,397		268		140		(5)		1,800
Non-interest expense	1,918		1,059		381		56		3,414
Income (loss) from continuing operations before income taxes	854		434		231		(29)		1,490
Income tax provision (benefit)	301		158		85		(101)		443
Income from continuing operations, net of tax	$	553	$	276	$	146	$	72	$	1,047

	Three Months Ended September 30, 2016										Nine Months Ended September 30, 2016
(Dollars in millions)	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⁽⁶⁾	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 from continuing operations, net of tax	$	555	$	244	$	191	$	26	$	1,016	$	1,648	$	750	$	396	$	183	$	2,977

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

																2017 Q3 vs				Nine Months Ended September 30,
	2017			2017			2017			2016			2016			2017		2016								2017 vs
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2017			2016			2016
Credit Card
Earnings:
Net interest income	$	3,440		$	3,294		$	3,346		$	3,353		$	3,204		4	%	7	%	$	10,080		$	9,282		9	%
Non-interest income	865			875			738			849			825			(1)		5		2,478			2,531			(2)
Total net revenue	4,305			4,169			4,084			4,202			4,029			3		7		12,558			11,813			6
Provision for credit losses	1,466			1,397			1,717			1,322			1,272			5		15		4,580			3,604			27
Non-interest expense	1,961			1,918			1,929			2,073			1,884			2		4		5,808			5,630			3
Income from continuing operations before income taxes	878			854			438			807			873			3		1		2,170			2,579			(16)
Income tax provision	306			301			167			295			318			2		(4)		774			931			(17)
Income from continuing operations, net of tax	$	572		$	553		$	271		$	512		$	555		3		3		$	1,396		$	1,648		(15)
Selected performance metrics:
Period-end loans held for investment	$	109,130		$	101,590		$	99,213		$	105,552		$	99,201		7		10		$	109,130		$	99,201		10
Average loans held for investment	102,545			100,043			101,169			100,791			98,016			3		5		101,258			95,139			6
Average yield on loans held for investment⁽⁷⁾	15.58		%	15.14		%	14.99		%	14.93		%	14.68		%	44	bps	90	bps	15.24		%	14.59		%	65	bps
Total net revenue margin⁽⁸⁾	16.79			16.67			16.14			16.68			16.44			12		35		16.54			16.56			(2)
Net charge-off rate⁽¹⁾	4.51			5.02			5.02			4.56			3.70			(51)		81		4.85			3.93			92
30+ day performing delinquency rate⁽¹⁾	3.91			3.60			3.68			3.91			3.65			31		26		3.91			3.65			26
30+ day delinquency rate	3.92			3.62			3.71			3.94			3.69			30		23		3.92			3.69			23
Nonperforming loan rate⁽²⁾	0.02			0.03			0.04			0.04			0.04			(1)		(2)		0.02			0.04			(2)
PCCR intangible amortization	$	43		$	44		$	44		$	58		$	62		(2)	%	(31)	%	$	131		$	199		(34)	%
Purchase volume⁽⁹⁾	84,505			83,079			73,197			82,824			78,106			2		8		240,781			224,314			7

																2017 Q3 vs				Nine Months Ended September 30,
	2017			2017			2017			2016			2016			2017		2016								2017 vs
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2017			2016			2016
Domestic Card
Earnings:
Net interest income	$	3,132		$	3,011		$	3,093		$	3,090		$	2,956		4	%	6	%	$	9,236		$	8,481		9	%
Non-interest income	787			802			699			791			759			(2)		4		2,288			2,325			(2)
Total net revenue	3,919			3,813			3,792			3,881			3,715			3		5		11,524			10,806			7
Provision for credit losses	1,417			1,327			1,637			1,229			1,190			7		19		4,381			3,326			32
Non-interest expense	1,754			1,727			1,717			1,859			1,696			2		3		5,198			5,036			3
Income from continuing operations before income taxes	748			759			438			793			829			(1)		(10)		1,945			2,444			(20)
Income tax provision	273			277			160			288			302			(1)		(10)		710			890			(20)
Income from continuing operations, net of tax	$	475		$	482		$	278		$	505		$	527		(1)		(10)		$	1,235		$	1,554		(21)
Selected performance metrics:
Period-end loans held for investment	$	99,981		$	92,866		$	91,092		$	97,120		$	90,955		8		10		$	99,981		$	90,955		10
Average loans held for investment	93,729			91,769			93,034			92,623			89,763			2		4		92,847			86,974			7
Average yield on loans held for investment⁽⁷⁾	15.51		%	15.07		%	15.01		%	14.91		%	14.71		%	44	bps	80	bps	15.20		%	14.51		%	69	bps
Total net revenue margin⁽⁸⁾	16.72			16.62			16.30			16.76			16.55			10		17		16.55			16.57			(2)
Net charge-off rate⁽¹⁾	4.64			5.11			5.14			4.66			3.74			(47)		90		4.96			3.99			97
30+ day delinquency rate	3.94			3.63			3.71			3.95			3.68			31		26		3.94			3.68			26
Purchase volume⁽⁹⁾	$	76,806		$	75,781		$	66,950		$	75,639		$	71,331		1	%	8	%	$	219,537		$	204,998		7	%
Refreshed FICO scores:⁽¹⁰⁾
Greater than 660	65		%	64		%	63		%	64		%	64		%	1		1		65		%	64		%	1
660 or below	35			36			37			36			36			(1)		(1)		35			36			(1)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

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

																2017 Q3 vs				Nine Months Ended September 30,
	2017			2017			2017			2016			2016			2017		2016								2017 vs
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2017			2016			2016
Consumer Banking
Earnings:
Net interest income	$	1,649		$	1,578		$	1,517		$	1,498		$	1,472		4	%	12	%	$	4,744		$	4,331		10	%
Non-interest income	192			183			195			166			201			5		(4)		570			567			1
Total net revenue	1,841			1,761			1,712			1,664			1,673			5		10		5,314			4,898			8
Provision for credit losses	293			268			279			365			256			9		14		840			690			22
Non-interest expense	1,051			1,059			1,042			1,109			1,034			(1)		2		3,152			3,030			4
Income from continuing operations before income taxes	497			434			391			190			383			15		30		1,322			1,178			12
Income tax provision	181			158			143			70			139			15		30		482			428			13
Income from continuing operations, net of tax	$	316		$	276		$	248		$	120		$	244		14		30		$	840		$	750		12
Selected performance metrics:
Period-end loans held for investment	$	75,564		$	74,973		$	73,982		$	73,054		$	72,285		1		5		$	75,564		$	72,285		5
Average loans held for investment	75,363			74,469			73,331			72,659			71,727			1		5		74,395			71,006			5
Average yield on loans held for investment⁽⁷⁾	6.79		%	6.56		%	6.48		%	6.50		%	6.41		%	23	bps	38	bps	6.61		%	6.29		%	32	bps
Auto loan originations	$	7,043		$	7,453		$	7,025		$	6,542		$	6,804		(6)	%	4	%	$	21,521		$	19,177		12	%
Period-end deposits	184,719			186,607			188,216			181,917			178,793			(1)		3		184,719			178,793			3
Average deposits	185,072			186,989			183,936			180,019			177,402			(1)		4		185,336			176,159			5
Average deposits interest rate	0.62		%	0.59		%	0.57		%	0.57		%	0.56		%	3	bps	6	bps	0.60		%	0.55		%	5	bps
Net charge-off rate	1.47			1.25			1.19			1.45			1.26			22		21		1.30			1.04			26
30+ day performing delinquency rate	4.10			3.79			3.45			4.10			3.72			31		38		4.10			3.72			38
30+ day delinquency rate	4.61			4.33			3.93			4.67			4.26			28		35		4.61			4.26			35
Nonperforming loan rate⁽²⁾	0.71			0.75			0.64			0.72			0.71			(4)		—		0.71			0.71			—
Nonperforming asset rate⁽³⁾	0.88			0.96			0.92			1.09			0.98			(8)		(10)		0.88			0.98			(10)
Auto—At origination FICO scores:⁽¹¹⁾
Greater than 660	51		%	51		%	51		%	52		%	51		%	—		—		51		%	51		%	—
621 - 660	18			18			18			17			17			—		1	%	18			17			1	%
620 or below	31			31			31			31			32			—		(1)		31			32			(1)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

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

																2017 Q3 vs				Nine Months Ended September 30,
	2017			2017			2017			2016			2016			2017		2016								2017 vs
(Dollars in millions, except as noted)	Q3			Q2			Q1			Q4			Q3			Q2		Q3		2017			2016			2016
Commercial Banking
Earnings:
Net interest income	$	560		$	569		$	566		$	565		$	555		(2)%		1	%	$	1,695		$	1,651		3	%
Non-interest income	179			183			158			175			156			(2)		15		520			403			29
Total net revenue⁽⁶⁾	739			752			724			740			711			(2)		4		2,215			2,054			8
Provision (benefit) for credit losses	63			140			(2)			66			61			(55)		3		201			417			(52)
Non-interest expense	394			381			391			393			349			3		13		1,166			1,014			15
Income from continuing operations before income taxes	282			231			335			281			301			22		(6)		848			623			36
Income tax provision	103			85			122			102			110			21		(6)		310			227			37
Income from continuing operations, net of tax	$	179		$	146		$	213		$	179		$	191		23		(6)		$	538		$	396		36
Selected performance metrics:
Period-end loans held for investment	$	67,670		$	67,672		$	67,320		$	66,916		$	66,457		—		2		$	67,670		$	66,457		2
Average loans held for investment	67,859			67,669			66,938			66,515			66,034			—		3		67,492			64,787			4
Average yield on loans held for investment⁽⁶⁾⁽⁷⁾	3.98		%	3.81		%	3.65		%	3.55		%	3.50		%	17	bps	48	bps	3.81		%	3.45		%	36	bps
Period-end deposits	$	32,783		$	33,153		$	33,735		$	33,866		$	33,611		(1)	%	(2)	%	$	32,783		$	33,611		(2)	%
Average deposits	33,197			34,263			34,219			34,029			33,498			(3)		(1)		33,890			33,778			—
Average deposits interest rate	0.42		%	0.36		%	0.31		%	0.30		%	0.30		%	6	bps	12	bps	0.37		%	0.28		%	9	bps
Net charge-off rate	0.96			0.80			0.14			0.47			0.66			16		30		0.64			0.44			20
Nonperforming loan rate⁽²⁾	1.16			1.01			1.25			1.53			1.50			15		(34)		1.16			1.50			(34)
Nonperforming asset rate⁽³⁾	1.22			1.04			1.27			1.54			1.51			18		(29)		1.22			1.51			(29)
Risk category:⁽¹²⁾
Noncriticized	$	63,501		$	63,802		$	63,390		$	62,828		$	62,336		—		2	%	$	63,501		$	62,336		2	%
Criticized performing	2,878			2,660			2,492			2,453			2,473			8	%	16		2,878			2,473			16
Criticized nonperforming	788			686			844			1,022			994			15		(21)		788			994			(21)
PCI loans	503			524			594			613			654			(4)		(23)		503			654			(23)
Total commercial loans	$	67,670		$	67,672		$	67,320		$	66,916		$	66,457		—		2		$	67,670		$	66,457		2
Risk category as a percentage of period-end loans held for investment:⁽¹²⁾
Noncriticized	93.8		%	94.3		%	94.2		%	93.9		%	93.8		%	(50)	bps	—		93.8		%	93.8		%	—
Criticized performing	4.3			3.9			3.7			3.7			3.7			40		60	bps	4.3			3.7			60	bps
Criticized nonperforming	1.2			1.0			1.2			1.5			1.5			20		(30)		1.2			1.5			(30)
PCI loans	0.7			0.8			0.9			0.9			1.0			(10)		(30)		0.7			1.0			(30)
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 Q3 vs				Nine Months Ended September 30,
	2017		2017		2017		2016		2016		2017		2016						2017 vs
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3		Q2		Q3		2017		2016		2016
Other
Earnings:
Net interest income	$	51	$	32	$	45	$	31	$	46	59	%	11	%	$	128	$	162	(21)	%
Non-interest income	49		(10)		(30)		(71)		2		**		**		9		8		13
Total net revenue (loss)⁽⁶⁾	100		22		15		(40)		48		**		108		137		170		(19)
Provision (benefit) for credit losses	11		(5)		(2)		(1)		(1)		**		**		4		(4)		**
Non-interest expense⁽¹³⁾	161		56		72		104		94		188		71		289		205		41
Loss from continuing operations before income taxes	(72)		(29)		(55)		(143)		(45)		148		60		(156)		(31)		**
Income tax benefit	(142)		(101)		(118)		(125)		(71)		41		100		(361)		(214)		69
Income (loss) from continuing operations, net of tax	$	70	$	72	$	63	$	(18)	$	26	(3)		169		$	205	$	183	12
Selected performance metrics:
Period-end loans held for investment	$	58	$	67	$	73	$	64	$	76	(13)		(24)		$	58	$	76	(24)
Average loans held for investment	55		60		67		62		66		(8)		(17)		60		72		(17)
Period-end deposits	21,560		20,003		19,231		20,985		13,577		8		59		21,560		13,577		59
Average deposits	20,574		19,298		20,395		18,156		11,351		7		81		20,090		10,927		84
Total
Earnings:
Net interest income	$	5,700	$	5,473	$	5,474	$	5,447	$	5,277	4	%	8	%	$	16,647	$	15,426	8	%
Non-interest income	1,285		1,231		1,061		1,119		1,184		4		9		3,577		3,509		2
Total net revenue	6,985		6,704		6,535		6,566		6,461		4		8		20,224		18,935		7
Provision for credit losses	1,833		1,800		1,992		1,752		1,588		2		15		5,625		4,707		20
Non-interest expense	3,567		3,414		3,434		3,679		3,361		4		6		10,415		9,879		5
Income from continuing operations before income taxes	1,585		1,490		1,109		1,135		1,512		6		5		4,184		4,349		(4)
Income tax provision	448		443		314		342		496		1		(10)		1,205		1,372		(12)
Income from continuing operations, net of tax	$	1,137	$	1,047	$	795	$	793	$	1,016	9		12		$	2,979	$	2,977	—
Selected performance metrics:
Period-end loans held for investment	$	252,422	$	244,302	$	240,588	$	245,586	$	238,019	3		6		$	252,422	$	238,019	6
Average loans held for investment	245,822		242,241		241,505		240,027		235,843		1		4		243,205		231,004		5
Period-end deposits	239,062		239,763		241,182		236,768		225,981		—		6		239,062		225,981		6
Average deposits	238,843		240,550		238,550		232,204		222,251		(1)		7		239,316		220,864		8

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 and nine months ended September 30, 2017 include the impact of this acquisition. Excluding this impact (i) the total credit card and domestic credit card net charge-off rate for the three months ended September 30, 2017 would have been 4.52% and 4.66%, respectively; (ii) the total credit card and domestic credit card net charge-off rate for the nine months ended September 30, 2017 would have been 4.85% and 4.97%, respectively; and (iii) the total credit card and domestic credit card 30+ day performing delinquency rate as of September 30, 2017 would have been 4.10% and 4.15%, 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. Prior to Q4 2016, the nonperforming asset rate for our Consumer Banking business excluded the impact of REOs related to our acquired home loan portfolio which, if included, would increase the nonperforming asset rate by approximately 10 basis points in each of the prior periods presented.
⁽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⁾	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.
⁽⁷⁾	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.
⁽⁸⁾	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.
⁽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. 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.
⁽¹¹⁾	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.
⁽¹²⁾	Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.
⁽¹³⁾	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)																						September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Regulatory Capital Metrics
Common equity excluding AOCI																						$	46,415		$	45,459		$	44,614		$	44,103		$	44,214
Adjustments:
AOCI⁽²⁾⁽³⁾																						(538)			(593)			(807)			(674)			199
Goodwill, net of related deferred tax liabilities																						(14,300)			(14,299)			(14,302)			(14,307)			(14,288)
Intangible assets, net of related deferred tax liabilities⁽³⁾																						(372)			(419)			(465)			(384)			(435)
Other																						93			78			121			65			(498)
Common equity Tier 1 capital																						$	31,298		$	30,226		$	29,161		$	28,803		$	29,192
Tier 1 capital																						$	35,657		$	34,585		$	33,519		$	33,162		$	33,069
Total capital⁽⁴⁾																						43,272			42,101			40,979			40,817			40,564
Risk-weighted assets																						292,041			283,231			279,302			285,756			275,198
Adjusted average assets⁽⁵⁾																						340,579			335,248			336,990			335,835			328,627
Capital Ratios
Common equity Tier 1 capital⁽⁶⁾																						10.7		%	10.7		%	10.4		%	10.1		%	10.6		%
Tier 1 capital⁽⁷⁾																						12.2			12.2			12.0			11.6			12.0
Total capital⁽⁸⁾																						14.8			14.9			14.7			14.3			14.7
Tier 1 leverage⁽⁵⁾																						10.5			10.3			9.9			9.9			10.1
Tangible common equity ("TCE")⁽⁹⁾																						8.8			8.8			8.5			8.1			8.8

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. The following non-GAAP measures consist of selected adjusted results, tangible common equity ("TCE"), tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. We consider these metrics key financial performance measures. While our non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.

	2017									2017									2017									Nine Months Ended
	Q3									Q2									Q1									September 30, 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			Reported Results			Adj.⁽¹⁰⁾			Adjusted Results
Selected income statement data:
Net interest income	$	5,700		—			$	5,700		$	5,473		—			$	5,473		$	5,474		$	33		$	5,507		$	16,647		$	33		$	16,680
Non-interest income	1,285			—			1,285			1,231			—			1,231			1,061			37			1,098			3,577			37			3,614
Total net revenue	6,985			—			6,985			6,704			—			6,704			6,535			70			6,605			20,224			70			20,294
Provision for credit losses	1,833			$	(88)		1,745			1,800			—			1,800			1,992			—			1,992			5,625			(88)			5,537
Non-interest expense	3,567			(125)			3,442			3,414			$	(12)		3,402			3,434			(29)			3,405			10,415			(166)			10,249
Income from continuing operations before income taxes	1,585			213			1,798			1,490			12			1,502			1,109			99			1,208			4,184			324			4,508
Income tax provision (benefit)	448			79			527			443			4			447			314			(1)			313			1,205			82			1,287
Income from continuing operations, net of tax	1,137			134			1,271			1,047			8			1,055			795			100			895			2,979			242			3,221
Income (loss) from discontinued operations, net of tax	(30)			—			(30)			(11)			—			(11)			15			—			15			(26)			—			(26)
Net income	1,107			134			1,241			1,036			8			1,044			810			100			910			2,953			242			3,195
Net income available to common stockholders	1,047			134			1,181			948			8			956			752			100			852			2,747			242			2,989
Selected performance metrics:
Diluted EPS⁽¹¹⁾	$	2.14		$	0.28		$	2.42		$	1.94		$	0.02		$	1.96		$	1.54		$	0.21		$	1.75		$	5.63		$	0.49		$	6.12
Efficiency ratio	51.07		%	(179)		bps	49.28		%	50.92		%	(17)		bps	50.75		%	52.55		%	(100)		bps	51.55		%	51.50		%	(100)		bps	50.50		%

										2016									2016									Year Ended
										Q4									Q3									December 31, 2016
(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										$	5,447		$	13		$	5,460		$	5,277		$	34		$	5,311		$	20,873		$	54		$	20,927
Non-interest income										1,119			14			1,133			1,184			13			1,197			4,628			35			4,663
Total net revenue										6,566			27			6,593			6,461			47			6,508			25,501			89			25,590
Provision for credit losses										1,752			—			1,752			1,588			—			1,588			6,459			—			6,459
Non-interest expense										3,679			(45)			3,634			3,361			(16)			3,345			13,558			(76)			13,482
Income from continuing operations before income taxes										1,135			72			1,207			1,512			63			1,575			5,484			165			5,649
Income tax provision (benefit)										342			10			352			496			—			496			1,714			3			1,717
Income from continuing operations, net of tax										793			62			855			1,016			63			1,079			3,770			162			3,932
Income (loss) from discontinued operations, net of tax										(2)			—			(2)			(11)			—			(11)			(19)			—			(19)
Net income										791			62			853			1,005			63			1,068			3,751			162			3,913
Net income available to common stockholders										710			62			772			962			63			1,025			3,513			162			3,675
Selected performance metrics:
Diluted EPS⁽¹¹⁾										$	1.45		$	0.13		$	1.58		$	1.90		$	0.13		$	2.03		$	6.89		$	0.32		$	7.21
Efficiency ratio										56.03		%	(91)		bps	55.12		%	52.02		%	(62)		bps	51.40		%	53.17		%	(49)		bps	52.68		%

																						2017			2017			2017			2016			2016
(Dollars in millions)																						Q3			Q2			Q1			Q4			Q3
Tangible Common Equity (Period-End)
Stockholders' equity																						$	50,154		$	49,137		$	48,040		$	47,514		$	48,213
Goodwill and intangible assets⁽¹²⁾																						(15,249)			(15,301)			(15,360)			(15,420)			(15,475)
Noncumulative perpetual preferred stock																						(4,360)			(4,360)			(4,360)			(4,360)			(3,877)
Tangible common equity																						$	30,545		$	29,476		$	28,320		$	27,734		$	28,861
Tangible Common Equity (Average)
Stockholders' equity																						$	50,176		$	49,005		$	48,193		$	47,972		$	49,033
Goodwill and intangible assets⁽¹²⁾																						(15,277)			(15,336)			(15,395)			(15,455)			(15,507)
Noncumulative perpetual preferred stock																						(4,360)			(4,360)			(4,360)			(4,051)			(3,719)
Tangible common equity																						$	30,539		$	29,309		$	28,438		$	28,466		$	29,807
Tangible Assets (Period-End)
Total assets																						$	361,402		$	350,593		$	348,549		$	357,033		$	345,061
Goodwill and intangible assets⁽¹²⁾																						(15,249)			(15,301)			(15,360)			(15,420)			(15,475)
Tangible assets																						$	346,153		$	335,292		$	333,189		$	341,613		$	329,586
Tangible Assets (Average)
Total assets																						$	355,191		$	349,891		$	351,641		$	350,225		$	343,153
Goodwill and intangible assets⁽¹²⁾																						(15,277)			(15,336)			(15,395)			(15,455)			(15,507)
Tangible assets																						$	339,914		$	334,555		$	336,246		$	334,770		$	327,646

__________

⁽¹⁾

Regulatory capital metrics and capital ratios as of September 30, 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⁾

On September 25, 2017, we completed the Cabela's acquisition. The primary Q3 2017 impacts of this acquisition were charges of $105 million which consisted of an initial quarterly allowance build related to the loans acquired and costs associated with closing the acquisition. In Q3 2017, we also incurred charges of $108 million as a result of restructuring activities. These restructuring activities primarily consisted of severance and related benefits pursuant to our ongoing benefit programs which were the result of exiting certain business locations and activities as well as the realignment of resources supporting our Credit Card and Consumer Banking businesses. In Q2 2017, we incurred $12 million of costs related to our anticipated close of the Cabela's acquisition. In Q1 2017, we recorded a build in the U.K. Payment Protection Insurance customer refund reserve ("U.K. PPI Reserve") of $99 million. In Q4 2016, we recorded charges totaling $72 million consisting of a build in the U.K. PPI Reserve of $44 million and an impairment associated with certain acquired intangible and software assets of $28 million. In Q3 2016, we recorded a build in the U.K. PPI Reserve of $63 million.

⁽¹¹⁾

Earnings per share is computed independently for each period. Accordingly, the sum of each quarter amount may not agree to the year-to-date total.

⁽¹²⁾

Includes impact of related deferred taxes.

SOURCE Capital One Financial Corporation