CAPITAL ONE FINANCIAL CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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EX-99.1 - EXHIBIT 99.1 - CAPITAL ONE FINANCIAL CORP	q32017earningsrelease-ex991.htm
8-K - 8-K - CAPITAL ONE FINANCIAL CORP	q32017earningsrelease8-k.htm

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement⁽¹⁾⁽²⁾

Third Quarter2017

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			2017		2017			2016			2016
(Dollars in millions)	Q3			Q2		Q1			Q4			Q3
Provision (benefit) for mortgage representation and warranty losses before income taxes:
Recorded in continuing operations	$	(1	)	$	—	$	(25	)	$	—		$	—
Recorded in discontinued operations	13			6		(67		)	(2		)	18
Total provision (benefit) for mortgage representation and warranty losses before income taxes	$	12		$	6	$	(92	)	$	(2	)	$	18

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		2017		2017		2016		2016
(Dollars in millions)	Q3		Q2		Q1		Q4		Q3
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.

CAPITAL ONE FINANCIAL CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - October 24, 2017

Attached files