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	q42017earningsrelease-ex991.htm
8-K - 8-K - CAPITAL ONE FINANCIAL CORP	q42017earningsrelease8-k.htm

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement⁽¹⁾⁽²⁾

Fourth 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	5
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	7
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	9
	Table 7:	Loan Information and Performance Statistics	10
	Table 8:	Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity	12
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	13
	Table 10:	Financial & Statistical Summary—Credit Card Business	14
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	16
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	17
	Table 13:	Financial & Statistical Summary—Other and Total	18
	Table 14:	Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)	19
Other
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	20

__________


⁽¹⁾	The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Annual Report on Form 10-K for the period ended December 31, 2017 once it is filed with the Securities and Exchange Commission.

⁽²⁾

This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated



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



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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated



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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income



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

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets



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



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

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)


⁽¹⁾	Total net revenue was reduced by $377 million in Q4 2017, $356 million in Q3 2017, $313 million in Q2 2017 and $321 million in both Q1 2017 and Q4 2016 for the estimated uncollectible amount of billed finance charges and fees and related losses.


⁽²⁾	The provision (benefit) for mortgage representation and warranty losses included the following activity:



	2017		2017			2017		2017			2016
(Dollars in millions)	Q4		Q3			Q2		Q1			Q4
Provision (benefit) for mortgage representation and warranty losses before income taxes:
Recorded in continuing operations	—		$	(1	)	—		$	(25	)	—
Recorded in discontinued operations	$	169	13			$	6	(67		)	$	(2	)
Total provision (benefit) for mortgage representation and warranty losses before income taxes	$	169	$	12		$	6	$	(92	)	$	(2	)

⁽³⁾

Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.


⁽⁴⁾	Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

⁽⁵⁾

Included in loans held for investment are purchased credit-impaired loans (“PCI loans”) recorded at fair value at acquisition and subsequently accounted for based on estimated cash flows expected to be collected over the life of the loans (under the accounting standard formerly known as “SOP 03-3,” or Accounting Standards Codification 310-30). These include certain of our consumer and commercial loans that were acquired through business combinations. The table below presents amounts related to PCI loans:



	2017		2017		2017		2017		2016
(Dollars in millions)	Q4		Q3		Q2		Q1		Q4
PCI loans:
Period-end unpaid principal balance	$	11,399	$	12,658	$	13,599	$	14,838	$	15,896
Period-end loans held for investment	10,775		11,985		12,895		14,102		15,071
Average loans held for investment	11,060		12,270		13,305		14,433		15,443


⁽⁶⁾	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.


⁽⁷⁾	Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.


⁽⁸⁾	Return on average tangible assets is a non-GAAP measure calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

⁽⁹⁾

Return on average common equity is calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.

⁽¹⁰⁾

Return on average tangible common equity (“ROTCE”) is a non-GAAP measure calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Our calculation of ROTCE may not be comparable to similarly-titled measures reported by other companies. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.


⁽¹¹⁾	Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.


⁽¹²⁾	Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

⁽¹³⁾

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


⁽¹⁴⁾	Capital ratios as of the end of Q4 2017 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.


⁽¹⁵⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.


^**	Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 6: Average Balances, Net Interest Income and Net Interest Margin



	2017 Q4						2017 Q3						2016 Q4
	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾		Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾		Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾
(Dollars in millions, except as noted)	Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾		Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾		Average Balance		Interest Income/Expense⁽¹⁾		Yield/Rate⁽¹⁾
Interest-earning assets:
Loans, including loans held for sale	$	254,080	$	6,133	9.66	%	$	247,022	$	5,960	9.65	%	$	241,110	$	5,587	9.27	%
Investment securities	68,992		431		2.50		69,302		431		2.49		67,827		393		2.32
Cash equivalents and other	7,670		40		2.09		5,691		29		2.04		8,916		29		1.30
Total interest-earning assets	$	330,742	$	6,604	7.99		$	322,015	$	6,420	7.97		$	317,853	$	6,009	7.56
Interest-bearing liabilities:
Interest-bearing deposits	$	215,258	$	457	0.85		$	213,137	$	410	0.77		$	206,464	$	332	0.64
Securitized debt obligations	19,751		91		1.84		17,598		85		1.93		18,300		65		1.42
Senior and subordinated notes	30,020		209		2.78		28,753		194		2.70		23,605		138		2.34
Other borrowings and liabilities	10,355		34		1.31		9,320		31		1.33		17,654		27		0.61
Total interest-bearing liabilities	$	275,384	$	791	1.15		$	268,808	$	720	1.07		$	266,023	$	562	0.85
Net interest income/spread			$	5,813	6.84				$	5,700	6.90				$	5,447	6.71
Impact of non-interest-bearing funding					0.19						0.18						0.14
Net interest margin					7.03	%					7.08	%					6.85	%



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

__________


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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics



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



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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 8: Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity



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



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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results



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

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

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business



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



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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business



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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business



																2017 Q4 vs.				Year Ended December 31,
	2017			2017			2017			2017			2016			2017		2016								2017 vs.
(Dollars in millions, except as noted)	Q4			Q3			Q2			Q1			Q4			Q3		Q4		2017			2016			2016
Commercial Banking
Earnings:
Net interest income	$	566		$	560		$	569		$	566		$	565		1	%	—		$	2,261		$	2,216		2	%
Non-interest income	188			179			183			158			175			5		7	%	708			578			22
Total net revenue⁽⁷⁾	754			739			752			724			740			2		2		2,969			2,794			6
Provision (benefit) for credit losses	100			63			140			(2		)	66			59		52		301			483			(38	)
Non-interest expense	437			394			381			391			393			11		11		1,603			1,407			14
Income from continuing operations before income taxes	217			282			231			335			281			(23	)	(23	)	1,065			904			18
Income tax provision	79			103			85			122			102			(23	)	(23	)	389			329			18
Income from continuing operations, net of tax	$	138		$	179		$	146		$	213		$	179		(23	)	(23	)	$	676		$	575		18
Selected performance metrics:
Period-end loans held for investment	$	64,575		$	67,670		$	67,672		$	67,320		$	66,916		(5	)	(3	)	$	64,575		$	66,916		(3	)
Average loans held for investment	67,200			67,859			67,669			66,938			66,515			(1	)	1		67,418			65,221			3
Average yield on loans held for investment⁽⁷⁾⁽⁸⁾	4.03		%	3.98		%	3.81		%	3.65		%	3.55		%	5	bps	48	bps	3.87		%	3.47		%	40	bps
Period-end deposits	$	33,938		$	32,783		$	33,153		$	33,735		$	33,866		4	%	—		$	33,938		$	33,866		—
Average deposits	34,117			33,197			34,263			34,219			34,029			3		—		33,947			33,841			—
Average deposits interest rate	0.46		%	0.42		%	0.36		%	0.31		%	0.30		%	4	bps	16	bps	0.39		%	0.28		%	11	bps
Net charge-off rate	0.85			0.96			0.80			0.14			0.47			(11	)	38		0.69			0.45			24
Nonperforming loan rate⁽²⁾	0.44			1.16			1.01			1.25			1.53			(72	)	(109	)	0.44			1.53			(109	)
Nonperforming asset rate⁽³⁾	0.52			1.22			1.04			1.27			1.54			(70	)	(102	)	0.52			1.54			(102	)
Risk category:⁽¹³⁾
Noncriticized	$	61,162		$	63,501		$	63,802		$	63,390		$	62,828		(4	)%	(3	)%	$	61,162		$	62,828		(3	)%
Criticized performing	2,649			2,878			2,660			2,492			2,453			(8	)	8		2,649			2,453			8
Criticized nonperforming	284			788			686			844			1,022			(64	)	(72	)	284			1,022			(72	)
PCI loans	480			503			524			594			613			(5	)	(22	)	480			613			(22	)
Total commercial loans	$	64,575		$	67,670		$	67,672		$	67,320		$	66,916		(5	)	(3	)	$	64,575		$	66,916		(3	)
Risk category as a percentage of period-end loans held for investment:⁽¹³⁾
Noncriticized	94.7		%	93.8		%	94.3		%	94.2		%	93.9		%	90	bps	80	bps	94.7		%	93.9		%	80	bps
Criticized performing	4.1			4.3			3.9			3.7			3.7			(20	)	40		4.1			3.7			40
Criticized nonperforming	0.4			1.2			1.0			1.2			1.5			(80	)	(110	)	0.4			1.5			(110	)
PCI loans	0.8			0.7			0.8			0.9			0.9			10		(10	)	0.8			0.9			(10	)
Total commercial loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%					100.0		%	100.0		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total



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

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

⁽¹⁾

On September 25, 2017, we completed the Cabela’s acquisition. The total credit card and domestic credit card metrics as of and for the three months and year ended December 31, 2017 include the impact of this acquisition. Excluding this impact (i) the total credit card and domestic credit card net charge-off rates for the three months ended December 31, 2017 would have been 5.24% and 5.36%, respectively; (ii) the total credit card and domestic credit card net charge-off rates for the year ended December 31, 2017 would have been 4.95% and 5.07%, respectively; and (iii) the total credit card and domestic credit card 30+ day performing delinquency rates as of December 31, 2017 would have been 4.14% and 4.18%, respectively.


⁽²⁾	Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category.


⁽³⁾	Nonperforming assets consist of nonperforming loans, real estate owned (“REO”) and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, REO and other foreclosed assets.


⁽⁴⁾	Primarily consists of the legacy loan portfolio of our discontinued GreenPoint mortgage operations.


⁽⁵⁾	Represents foreign currency translation adjustments and the net impact of loan transfers and sales.

⁽⁶⁾

Charges for the impacts of the Tax Act of $1.77 billion are reflected in the Other category of our business segment results for Q4 2017 and the year ended December 31, 2017. This amount is a reasonable estimate as of December 31, 2017, which may be adjusted during the measurement period ending no later than December 2018. The Tax Act refers to the Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on budget for fiscal year 2018 enacted on December 22, 2017.

⁽⁷⁾

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


⁽⁸⁾	Average yield on loans held for investment is calculated based on annualized interest income for the period divided by average loans held for investment during the period for the respective loan category. Annualized interest income is computed based on the effective yield of the respective loan category and does not include any allocations, such as funds transfer pricing.


⁽⁹⁾	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average loans held for investment during the period for the respective loan category.


⁽¹⁰⁾	Purchase volume consists of purchase transactions, net of returns, for the period for loans both classified as held for investment and held for sale, and excludes cash advance and balance transfer transactions.

⁽¹¹⁾

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


⁽¹²⁾	Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.


⁽¹³⁾	Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.


⁽¹⁴⁾	Includes charges incurred as a result of restructuring activities.


^**	Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures⁽¹⁾



	Basel III Standardized Approach
(Dollars in millions, except as noted)	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Regulatory Capital Metrics
Common equity excluding AOCI	$	45,296		$	46,415		$	45,459		$	44,614		$	44,103
Adjustments:
AOCI⁽²⁾⁽³⁾	(808		)	(538		)	(593		)	(807		)	(674		)
Goodwill, net of related deferred tax liabilities	(14,380		)	(14,300		)	(14,299		)	(14,302		)	(14,307		)
Intangible assets, net of related deferred tax liabilities⁽³⁾	(330		)	(372		)	(419		)	(465		)	(384		)
Other	258			93			78			121			65
Common equity Tier 1 capital	$	30,036		$	31,298		$	30,226		$	29,161		$	28,803
Tier 1 capital	$	34,396		$	35,657		$	34,585		$	33,519		$	33,162
Total capital⁽⁴⁾	41,963			43,272			42,101			40,979			40,817
Risk-weighted assets	292,256			292,041			283,231			279,302			285,756
Adjusted average assets⁽⁵⁾	348,424			340,579			335,248			336,990			335,835
Capital Ratios
Common equity Tier 1 capital⁽⁶⁾	10.3		%	10.7		%	10.7		%	10.4		%	10.1		%
Tier 1 capital⁽⁷⁾	11.8			12.2			12.2			12.0			11.6
Total capital⁽⁸⁾	14.4			14.8			14.9			14.7			14.3
Tier 1 leverage⁽⁵⁾	9.9			10.5			10.3			9.9			9.9
Tangible common equity (“TCE”)⁽⁹⁾	8.3			8.8			8.8			8.5			8.1

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.



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



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

Reconciliation of Non-GAAP Measures

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



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

__________


⁽¹⁾	Regulatory capital metrics and capital ratios as of December 31, 2017 are preliminary and therefore subject to change.


⁽²⁾	Amounts presented are net of tax.


⁽³⁾	Amounts based on transition provisions for regulatory capital deductions and adjustments of 60% for 2016 and 80% for 2017.


⁽⁴⁾	Total capital equals the sum of Tier 1 capital and Tier 2 capital.


⁽⁵⁾	Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.


⁽⁶⁾	Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.


⁽⁷⁾	Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.


⁽⁸⁾	Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.


⁽⁹⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.


⁽¹⁰⁾	The adjustments in 2017 consist of:



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

⁽¹¹⁾ The adjustments in 2016 consist of:



	Three Months Ended		Nine Months Ended			Year Ended
(Dollars in millions)	December 31, 2016		September 30, 2016			December 31, 2016
U.K. PPI Reserve	$	44	$	117		$	161
Impairment associated with certain acquired intangible and software assets	28		—			28
Gain related to the exchange of our ownership interest in Visa Europe with Visa Inc. as a result of Visa Inc’s acquisition of Visa Europe	—		(24		)	(24		)
Total	72		93			165
Income tax provision (benefit)	10		(7		)	3
Net income (loss)	$	62	$	100		$	162


⁽¹²⁾	Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total.


⁽¹³⁾	Includes impact of related deferred taxes.

CAPITAL ONE FINANCIAL CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - January 23, 2018

Attached files