CAPITAL ONE FINANCIAL CORPORATION MCLEAN, Va., Jan. 24, 2017 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2016 of $791 million, or $1.45 per diluted common share, compared to the third quarter of 2016 with net income of $1.0 billion, or $1.90 per diluted common share, and the fourth quarter of 2015 with net income of $920 million, or $1.58 per diluted common share.
"In 2016, Capital One posted a second consecutive year of double-digit growth in domestic card loans and purchase volume, as well as strong growth in auto and commercial loans," said Richard D. Fairbank, Chairman and Chief Executive Officer. "Assuming no substantial change in the broader credit and economic cycles, our strong growth over the last two years and actions to reduce share count put us in a position to deliver solid EPS growth in 2017."
All comparisons below are for the fourth quarter of 2016 compared with the third quarter of 2016 unless otherwise noted.
Fourth Quarter 2016 Income Statement Summary:
-- Total net revenue increased 2 percent to $6.6 billion.
-- Total non-interest expense increased 9 percent to $3.7 billion:
-- 46 percent increase in marketing.
-- 4 percent increase in operating expenses.
-- Pre-provision earnings decreased 7 percent to $2.9 billion.
-- Provision for credit losses increased 10 percent to $1.8 billion:
-- Net charge-offs of $1.5 billion.
-- $263 million reserve build.
-- Net interest margin of 6.85 percent, up 6 basis points.
-- Efficiency ratio of 56.03 percent:
-- Efficiency ratio excluding the U.K. PPI Reserve build of $44 million
and acquired intangible and software assets impairment charge of $28
million was 55.12 percent((1)).
Fourth Quarter 2016 Balance Sheet Summary:
-- Common equity Tier 1 capital ratio under Basel III Standardized Approach
of 10.1 percent at December 31, 2016.
-- Period-end loans held for investment in the quarter increased $7.6
billion, or 3 percent, to $245.6 billion.
-- Domestic Card period-end loans increased $6.2 billion, or 7 percent,
to $97.1 billion.
-- Consumer Banking period-end loans increased $769 million, or 1
percent, to $73.1 billion:
-- Auto period-end loans increased $1.6 billion, or 3 percent, to
$47.9 billion.
-- Home loans period-end loans decreased $864 million, or 4
percent, to $21.6 billion, driven by planned run-off of acquired
portfolios.
-- Commercial Banking period-end loans increased $459 million, or 1
percent, to $66.9 billion.
-- Average loans held for investment in the quarter increased $4.2 billion,
or 2 percent, to $240.0 billion.
-- Domestic Card average loans increased $2.9 billion, or 3 percent, to
$92.6 billion.
-- Consumer Banking average loans increased $932 million, or 1 percent,
to $72.7 billion:
-- Auto average loans increased $1.8 billion, or 4 percent, to
$47.1 billion.
-- Home loans average loans decreased $868 million, or 4 percent,
to $22.0 billion, driven by planned run-off of acquired
portfolios.
-- Commercial Banking average loans increased $481 million, or 1
percent, to $66.5 billion.
-- Period-end total deposits increased $10.8 billion, or 5 percent, to
$236.8 billion, while average deposits increased $10.0 billion, or 4
percent, to $232.2 billion.
-- Interest-bearing deposits rate paid increased 2 basis points to 0.64
percent.
Fourth Quarter 2016 Notable Items:
Pre-Tax Diluted EPS
(Dollars in millions, except
per share data) Impact Impact
Build in the U.K. Payment
Protection Insurance customer
refund reserve ("U.K. PPI
Reserve") $44 $0.09
Impairment charge associated
with certain acquired
intangible and software
assets 28 0.04
Allowance build in our Auto
business regarding the
treatment of certain bankrupt
accounts 62 0.08
All comparisons below are for the full year of 2016 compared with the full year of 2015 unless otherwise noted.
2016 Full Year Income Statement Summary:
-- Total net revenue increased 9 percent to $25.5 billion.
-- Total non-interest expense increased 4 percent to $13.6 billion:
-- 4 percent increase in marketing.
-- 5 percent increase in operating expenses, including approximately
$160 million in bank optimization charges.
-- Pre-provision earnings increased 15 percent to $11.9 billion.
-- Provision for credit losses increased 42 percent to $6.5 billion.
-- Efficiency ratio of 53.17 percent:
-- Efficiency ratio excluding $161 million from builds in the U.K. PPI
Reserve, the $28 million impairment charge associated with certain
acquired intangible and software assets and the $24 million gain related
to the exchange of our ownership interest in Visa Europe with Visa Inc.,
was 52.68 percent((1)).
((1)) The efficiency ratio excluding adjusting items is a non-GAAP measure that we believe helps investors and users of our financial information understand the effect of the adjusting items on our selected reported results and provides an alternate measurement of our performance. See Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to this non-GAAP measure.
Earnings Conference Call Webcast Information
The company will hold an earnings conference call on January 24, 2017 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page (www.capitalone.com). Choose "About Us," then choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through February 7, 2017 at 5:00 PM Eastern Time.
Forward-Looking Statements
Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2015.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $236.8 billion in deposits and $357.0 billion in total assets as of December 31, 2016. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
Exhibit 99.2
Capital One Financial Corporation
Financial Supplement
Fourth Quarter 2016(1)(2)
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: Reconciliation of Non-GAAP Measures
and Calculation of Regulatory
Capital Measures 21
__________
(1) The information contained in this
Financial Supplement is preliminary
and based on data available at the
time of the earnings presentation.
Investors should refer to our
Annual Report on Form 10-K for the
period ended December 31, 2016 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 accounting
principles generally accepted 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
2016 Q4 vs Year Ended December 31,
(Dollars in millions, except per share data and as noted) 2016 2016 2016 2016 2015 2016 2015 2016 vs
Q4 Q3 Q2 Q1 Q4 Q3 Q4 2016 2015 2015
--- --- --- --- --- --- --- ---- ---- ----
Income Statement
----------------
Net interest income $5,447 $5,277 $5,093 $5,056 $4,961 3% 10% $20,873 $18,834 11%
Non-interest income 1,119 1,184 1,161 1,164 1,233 (5) (9) 4,628 4,579 1
----- ----- ----- -----
Total net revenue(1) 6,566 6,461 6,254 6,220 6,194 2 6 25,501 23,413 9
Provision for credit losses 1,752 1,588 1,592 1,527 1,380 10 27 6,459 4,536 42
Non-interest expense:
Marketing 575 393 415 428 564 46 2 1,811 1,744 4
Amortization of intangibles 101 89 95 101 103 13 (2) 386 430 (10)
Operating expenses 3,003 2,879 2,785 2,694 2,813 4 7 11,361 10,822 5
----- ----- ----- ----- ----- ------
Total non-interest expense 3,679 3,361 3,295 3,223 3,480 9 6 13,558 12,996 4
----- ----- ----- ----- ----- ------ ------
Income from continuing operations before income taxes 1,135 1,512 1,367 1,470 1,334 (25) (15) 5,484 5,881 (7)
Income tax provision 342 496 424 452 426 (31) (20) 1,714 1,869 (8)
--- --- --- --- --- ----- -----
Income from continuing operations, net of tax 793 1,016 943 1,018 908 (22) (13) 3,770 4,012 (6)
Income (loss) from discontinued operations, net of tax(2) (2) (11) (1) (5) 12 (82) ** (19) 38 **
--- --- --- --- --- --- ---
Net income 791 1,005 942 1,013 920 (21) (14) 3,751 4,050 (7)
Dividends and undistributed earnings allocated to participating securities(3) (6) (6) (6) (6) (4) - 50 (24) (20) 20
Preferred stock dividends (75) (37) (65) (37) (68) 103 10 (214) (158) 35
Net income available to common stockholders $710 $962 $871 $970 $848 (26) (16) $3,513 $3,872 (9)
==== ==== ==== ==== ==== ====== ======
Common Share Statistics
-----------------------
Basic earnings per common share:(3)
Net income from continuing operations $1.47 $1.94 $1.70 $1.86 $1.58 (24)% (7)% $7.00 $7.08 (1)%
Income (loss) from discontinued operations - (0.02) - (0.01) 0.02 ** ** (0.04) 0.07 **
----
Net income per basic common share $1.47 $1.92 $1.70 $1.85 $1.60 (23) (8) $6.96 $7.15 (3)
===== ===== ===== ===== ===== ===== =====
Diluted earnings per common share:(3)
Net income from continuing operations $1.45 $1.92 $1.69 $1.85 $1.56 (24) (7) $6.93 $7.00 (1)
Income (loss) from discontinued operations - (0.02) - (0.01) 0.02 ** ** (0.04) 0.07 **
Net income per diluted common share $1.45 $1.90 $1.69 $1.84 $1.58 (24) (8) $6.89 $7.07 (3)
===== ===== ===== ===== ===== ===== =====
Weighted-average common shares outstanding (in millions):
Basic 483.5 501.1 511.7 523.5 530.8 (4) (9) 504.9 541.8 (7)
Diluted 489.2 505.9 516.5 528.0 536.3 (3) (9) 509.8 548.0 (7)
Common shares outstanding (period-end, in millions) 480.2 489.2 505.9 514.5 527.3 (2) (9) 480.2 527.3 (9)
Dividends paid per common share $0.40 $0.40 $0.40 $0.40 $0.40 - - $1.60 $1.50 7
Tangible book value per common share (period-end)(4) 57.76 59.00 57.84 55.94 53.65 (2) 8 57.76 53.65 8
2016 Q4 vs Year Ended December 31,
(Dollars in millions) 2016 2016 2016 2016 2015 2016 2015 2016 vs
--------------------
Q4 Q3 Q2 Q1 Q4 Q3 Q4 2016 2015 2015
--- --- --- --- --- --- --- ---- ---- ----
Balance Sheet (Period-End)
-------------------------
Loans held for investment(5) $245,586 $238,019 $234,603 $227,613 $229,851 3% 7% $245,586 $229,851 7%
Interest-earning assets 321,807 313,431 307,163 298,348 302,007 3 7 321,807 302,007 7
Total assets 357,033 345,061 339,117 330,346 334,048 3 7 357,033 334,048 7
Interest-bearing deposits 211,266 200,416 195,635 196,597 191,874 5 10 211,266 191,874 10
Total deposits 236,768 225,981 221,059 221,779 217,721 5 9 236,768 217,721 9
Borrowings 60,460 59,820 59,181 50,497 59,115 1 2 60,460 59,115 2
Common equity 43,154 44,336 44,813 44,411 43,990 (3) (2) 43,154 43,990 (2)
Total stockholders' equity 47,514 48,213 48,108 47,707 47,284 (1) - 47,514 47,284 -
--------------------------
Balance Sheet (Average Balances)
-------------------------------
Loans held for investment(5) $240,027 $235,843 $230,379 $226,736 $220,052 2% 9% $233,272 $210,745 11%
Interest-earning assets 317,853 310,987 302,764 299,456 292,054 2 9 307,796 282,581 9
Total assets 350,225 343,153 334,479 331,919 323,354 2 8 339,974 313,474 8
Interest-bearing deposits 206,464 196,913 195,641 194,125 189,885 5 9 198,304 185,677 7
Total deposits 232,204 222,251 221,146 219,180 215,899 4 8 223,714 210,989 6
Borrowings 58,624 60,708 54,359 53,761 48,850 (3) 20 56,878 45,420 25
Common equity 43,921 45,314 45,640 45,782 45,418 (3) (3) 45,162 45,072 -
Total stockholders' equity 47,972 49,033 48,934 49,078 48,712 (2) (2) 48,753 47,713 2
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Selected Metrics-Consolidated
2016 Q4 vs Year Ended December 31,
(Dollars in millions except as noted) 2016 2016 2016 2016 2015 2016 2015 2016 vs
Q4 Q3 Q2 Q1 Q4 Q3 Q4 2016 2015 2015
--- --- --- --- --- --- --- ---- ---- ----
Performance Metrics
-------------------
Net interest income growth (period over period) 3% 4% 1% 2% 4% ** ** 11% 6% **
Non-interest income growth (period over period) (5) 2 - (6) 8 ** ** 1 2 **
Total net revenue growth (period over period) 2 3 1 - 5 ** ** 9 5 **
Total net revenue margin(6) 8.26 8.31 8.26 8.31 8.48 (5) bps (22) bps 8.29 8.29 -
Net interest margin(7) 6.85 6.79 6.73 6.75 6.79 6 6 6.78 6.66 12 bps
Return on average assets 0.91 1.18 1.13 1.23 1.12 (27) (21) 1.11 1.28 (17)
Return on average tangible assets(8) 0.95 1.24 1.18 1.29 1.18 (29) (23) 1.16 1.35 (19)
Return on average common equity(9) 6.48 8.59 7.64 8.52 7.36 (211) (88) 7.82 8.51 (69)
Return on average tangible common equity(10) 10.00 13.06 11.61 12.94 11.11 (306) (111) 11.93 12.87 (94)
Non-interest expense as a percentage of average loans held for investment 6.13 5.70 5.72 5.69 6.33 43 (20) 5.81 6.17 (36)
Efficiency ratio(11) 56.03 52.02 52.69 51.82 56.18 401 (15) 53.17 55.51 (234)
Effective income tax rate for continuing operations 30.1 32.8 31.0 30.7 31.9 (270) (180) 31.3 31.8 (50)
Employees (in thousands), period-end 47.3 46.5 46.1 45.8 45.4 2% 4% 47.3 45.4 4%
Credit Quality Metrics
----------------------
Allowance for loan and lease losses $6,503 $6,258 $5,881 $5,416 $5,130 4% 27% $6,503 $5,130 27%
Allowance as a percentage of loans held for investment 2.65% 2.63% 2.51% 2.38% 2.23% 2 bps 42 bps 2.65% 2.23% 42 bps
Net charge-offs $1,489 $1,240 $1,155 $1,178 $1,078 20% 38% $5,062 $3,695 37%
Net charge-off rate(12) 2.48% 2.10% 2.01% 2.08% 1.96% 38 bps 52 bps 2.17% 1.75% 42 bps
30+ day performing delinquency rate 2.93 2.71 2.47 2.33 2.69 22 24 2.93 2.69 24
30+ day delinquency rate 3.27 3.04 2.79 2.64 3.00 23 27 3.27 3.00 27
Capital Ratios(13)
-----------------
Common equity Tier 1 capital 10.1% 10.6% 10.9% 11.1% 11.1% (50) bps (100) bps 10.1% 11.1% (100) bps
Tier 1 capital 11.6 12.0 12.2 12.4 12.4 (40) (80) 11.6 12.4 (80)
Total capital 14.3 14.7 14.4 14.6 14.6 (40) (30) 14.3 14.6 (30)
Tier 1 leverage 9.9 10.1 10.2 10.2 10.6 (20) (70) 9.9 10.6 (70)
Tangible common equity ("TCE")(14) 8.1 8.8 9.0 9.1 8.9 (70) (80) 8.1 8.9 (80)
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3: Consolidated Statements of Income
Three Months Ended 2016 Q4 vs Year Ended December 31,
2016 2016 2015 2016 2015 2016 vs
(Dollars in millions, except per share data and as noted) Q4 Q3 Q4 Q3 Q4 2016 2015 2015
-------------------------------------------------------- --- --- --- --- --- ---- ---- ----
Interest income:
Loans, including loans held for sale $5,587 $5,383 $4,961 4% 13% $21,203 $18,785 13%
Investment securities 393 386 401 2 (2) 1,599 1,575 2
Other 29 25 22 16 32 89 99 (10)
Total interest income 6,009 5,794 5,384 4 12 22,891 20,459 12
----- ----- ----- ------ ------
Interest expense:
Deposits 332 306 277 8 20 1,213 1,091 11
Securitized debt obligations 65 56 43 16 51 216 151 43
Senior and subordinated notes 138 121 89 14 55 476 330 44
Other borrowings 27 34 14 (21) 93 113 53 113
Total interest expense 562 517 423 9 33 2,018 1,625 24
--- --- --- ----- -----
Net interest income 5,447 5,277 4,961 3 10 20,873 18,834 11
Provision for credit losses 1,752 1,588 1,380 10 27 6,459 4,536 42
Net interest income after provision for credit losses 3,695 3,689 3,581 - 3 14,414 14,298 1
----- ----- ----- ------ ------
Non-interest income:(15)(16)
Service charges and other customer-related fees 412 417 463 (1) (11) 1,646 1,856 (11)
Interchange fees, net 624 603 625 3 - 2,452 2,264 8
Net securities gains (losses) (4) 1 (9) ** (56) (11) (32) (66)
Other 87 163 154 (47) (44) 541 491 10
---
Total non-interest income 1,119 1,184 1,233 (5) (9) 4,628 4,579 1
----- ----- ----- ----- -----
Non-interest expense:(15)(16)
Salaries and associate benefits 1,336 1,317 1,215 1 10 5,202 4,975 5
Occupancy and equipment 522 499 511 5 2 1,944 1,829 6
Marketing 575 393 564 46 2 1,811 1,744 4
Professional services 312 257 307 21 2 1,075 1,120 (4)
Communications and data processing 297 291 289 2 3 1,169 1,055 11
Amortization of intangibles 101 89 103 13 (2) 386 430 (10)
Other 536 515 491 4 9 1,971 1,843 7
--- --- --- ----- -----
Total non-interest expense 3,679 3,361 3,480 9 6 13,558 12,996 4
----- ----- ----- ------ ------
Income from continuing operations before income taxes 1,135 1,512 1,334 (25) (15) 5,484 5,881 (7)
Income tax provision 342 496 426 (31) (20) 1,714 1,869 (8)
--- --- --- ----- -----
Income from continuing operations, net of tax 793 1,016 908 (22) (13) 3,770 4,012 (6)
Income (loss) from discontinued operations, net of tax(2) (2) (11) 12 (82) ** (19) 38 **
--- --- --- --- ---
Net income 791 1,005 920 (21) (14) 3,751 4,050 (7)
Dividends and undistributed earnings allocated to participating securities(3) (6) (6) (4) - 50 (24) (20) 20
Preferred stock dividends (75) (37) (68) 103 10 (214) (158) 35
Net income available to common stockholders $710 $962 $848 (26) (16) $3,513 $3,872 (9)
==== ==== ==== ====== ======
Three Months Ended 2016 Q4 vs Year Ended December 31,
2016 2016 2015 2016 2015 2016 vs
(Dollars in millions, except per share data and as noted) Q4 Q3 Q4 Q3 Q4 2016 2015 2015
-------------------------------------------------------- --- --- --- --- --- ---- ---- ----
Basic earnings per common share:(3)
Net income from continuing operations $1.47 $1.94 $1.58 (24)% (7)% $7.00 $7.08 (1)%
Income (loss) from discontinued operations - (0.02) 0.02 ** ** (0.04) 0.07 **
----
Net income per basic common share $1.47 $1.92 $1.60 (23) (8) $6.96 $7.15 (3)
===== ===== ===== ===== =====
Diluted earnings per common share:(3)
Net income from continuing operations $1.45 $1.92 $1.56 (24) (7) $6.93 $7.00 (1)
Income (loss) from discontinued operations - (0.02) 0.02 ** ** (0.04) 0.07 **
Net income per diluted common share $1.45 $1.90 $1.58 (24) (8) $6.89 $7.07 (3)
===== ===== ===== ===== =====
Weighted-average common shares outstanding (in millions):
Basic common shares 483.5 501.1 530.8 (4) (9) 504.9 541.8 (7)
Diluted common shares 489.2 505.9 536.3 (3) (9) 509.8 548.0 (7)
Dividends paid per common share $0.40 $0.40 $0.40 - - $1.60 $1.50 7
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets
2016 Q4 vs
2016 2016 2016 2016 2015 2016 2015
(Dollars in millions) Q4 Q3 Q2 Q1 Q4 Q3 Q4
-------------------- --- --- --- --- --- --- ---
Assets:
Cash and cash equivalents:
Cash and due from banks $4,185 $3,350 $3,253 $3,241 $3,407 25% 23%
Interest-bearing deposits and other short-term investments 5,791 5,744 3,896 1,994 4,616 1 25
----- -----
Total cash and cash equivalents 9,976 9,094 7,149 5,235 8,023 10 24
Restricted cash for securitization investors 2,517 287 265 960 1,017 ** 147
Securities available for sale, at fair value 40,737 41,511 39,960 40,092 39,061 (2) 4
Securities held to maturity, at carrying value 25,712 25,019 25,120 25,080 24,619 3 4
Loans held for investment:(5)
Unsecuritized loans held for investment 213,824 206,763 202,778 195,705 196,068 3 9
Loans held in consolidated trusts 31,762 31,256 31,825 31,908 33,783 2 (6)
------ ------ ------ ------ ------
Total loans held for investment 245,586 238,019 234,603 227,613 229,851 3 7
Allowance for loan and lease losses (6,503) (6,258) (5,881) (5,416) (5,130) 4 27
------ ------ ------ ------ ------
Net loans held for investment 239,083 231,761 228,722 222,197 224,721 3 6
Loans held for sale, at lower of cost or fair value 1,043 994 1,220 1,251 904 5 15
Premises and equipment, net 3,675 3,561 3,556 3,542 3,584 3 3
Interest receivable 1,351 1,251 1,236 1,221 1,189 8 14
Goodwill 14,519 14,493 14,495 14,492 14,480 - -
Other assets 18,420 17,090 17,394 16,276 16,450 8 12
------ ------ ------ ------ ------
Total assets $357,033 $345,061 $339,117 $330,346 $334,048 3 7
======== ======== ======== ======== ========
2016 Q4 vs
2016 2016 2016 2016 2015 2016 2015
(Dollars in millions) Q4 Q3 Q2 Q1 Q4 Q3 Q4
-------------------- --- --- --- --- --- --- ---
Liabilities:
Interest payable $327 $237 $301 $217 $299 38% 9%
Deposits:
Non-interest-bearing deposits 25,502 25,565 25,424 25,182 25,847 - (1)
Interest-bearing deposits 211,266 200,416 195,635 196,597 191,874 5 10
------- ------- ------- ------- -------
Total deposits 236,768 225,981 221,059 221,779 217,721 5 9
Securitized debt obligations 18,826 18,411 16,130 14,913 16,166 2 16
Other debt:
Federal funds purchased and securities loaned or sold under agreements to
repurchase 992 1,079 999 917 981 (8) 1
Senior and subordinated notes 23,431 24,001 21,872 21,736 21,837 (2) 7
Other borrowings 17,211 16,329 20,180 12,931 20,131 5 (15)
------ ------ ------ ------ ------
Total other debt 41,634 41,409 43,051 35,584 42,949 1 (3)
Other liabilities 11,964 10,810 10,468 10,146 9,629 11 24
------ ------ ------ ------ -----
Total liabilities 309,519 296,848 291,009 282,639 286,764 4 8
------- ------- ------- ------- -------
Stockholders' equity:
Preferred stock 0 0 0 0 0 - -
Common stock 7 7 7 7 6 - 17
Additional paid-in capital, net 31,157 30,439 29,786 29,709 29,655 2 5
Retained earnings 29,766 29,245 28,479 27,808 27,045 2 10
Accumulated other comprehensive income (loss) (949) 121 241 (41) (616) ** 54
Treasury stock, at cost (12,467) (11,599) (10,405) (9,776) (8,806) 7 42
------- ------- ------- ------ ------
Total stockholders' equity 47,514 48,213 48,108 47,707 47,284 (1) -
------ ------ ------ ------ ------
Total liabilities and stockholders' equity $357,033 $345,061 $339,117 $330,346 $334,048 3 7
======== ======== ======== ======== ========
( )
( )
( )
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 $321 million in Q4 2016, $289 million in Q3 2016, $244 million in Q2 2016, $228 million in Q1 2016 and
$222 million in Q4 2015 for the estimated uncollectible amount of billed finance charges and fees and related losses.
(2) Historically, the majority of the provision (benefit) for representation and warranty losses has been included, net of tax, in
discontinued operations. The provision (benefit) for mortgage representation and warranty losses included the following activity:
2016 2016 2016 2016 2015
(Dollars in millions) Q4 Q3 Q2 Q1 Q4
-------------------- --- --- --- --- ---
Provision (benefit) for mortgage representation and warranty losses before income taxes:
Recorded in continuing operations $ - $ - $(1) $(1) $(1)
Recorded in discontinued operations (2) 18 2 3 (21)
Total provision (benefit) for mortgage representation and warranty losses before income
taxes $(2) $18 $1 $2 $(22)
=== === === === ====
The mortgage representation and warranty reserve was $630 million as of December 31, 2016, $632 million as of September 30, 2016 and $610
million as of December 31, 2015.
(3) Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each
period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total.
(4) Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares
outstanding. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional
information on non-GAAP measures.
(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:
2016 2016 2016 2016 2015
(Dollars in millions) Q4 Q3 Q2 Q1 Q4
-------------------- --- --- --- --- ---
PCI loans:
Period-end unpaid principal balance $15,896 $17,011 $18,256 $19,492 $20,434
Period-end loans held for investment 15,071 16,149 17,358 18,568 19,518
Average loans held for investment 15,443 16,529 17,783 18,894 19,319
(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: Reconciliation of Non-GAAP Measures and Calculation of
Regulatory Capital 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: Reconciliation of Non-GAAP Measures and Calculation of Regulatory
Capital 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: Reconciliation of Non-GAAP Measures and Calculation
of Regulatory Capital 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) Capital ratios as of the end of Q4 2016 are preliminary and therefore subject to change. See "Table 15: Reconciliation of Non-GAAP
Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.
(14) TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 15: Reconciliation of Non-GAAP Measures
and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures.
(15) 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 have 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.
(16) The primary net effects of the reclassifications discussed in footnote 15 above for Q3 2016, Q4 2015, and the years ended December 31,
2016 and 2015 were (i) increases to Service charges and other customer-related fees of $30 million, $37 million, $71 million and $141
million, respectively; (ii) decreases to Other non-interest income of $31 million, $39 million, $84 million and $168 million,
respectively; and (iii) increases to Communications and data processing expense of $39 million, $43 million, $115 million and $172
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
2016 Q4 2016 Q3 2015 Q4
Average Balance Interest Income/ Yield/ Average Balance Interest Income/ Yield/ Average Balance Interest Income/ Yield/
Expense(1) Rate(1) Expense(1) Rate(1) Expense(1) Rate(1)
--------------- ---------------- ------- --------------- ---------------- ------- --------------- ----------------- -------
(Dollars in millions)
--------------------
Interest-earning assets:
Loans, including loans held for sale $241,110 $5,587 9.27% $237,067 $5,383 9.08% $220,760 $4,961 8.99%
Investment securities 67,827 393 2.32 66,291 386 2.33 64,444 401 2.49
Cash equivalents and other 8,916 29 1.30 7,629 25 1.31 6,850 22 1.28
Total interest-earning assets $317,853 $6,009 7.56 $310,987 $5,794 7.45 $292,054 $5,384 7.37
-------- ------ -------- ------ -------- ------
Interest-bearing liabilities:
Interest-bearing deposits $206,464 $332 0.64 $196,913 $306 0.62 $189,885 $277 0.58
Securitized debt obligations 18,300 65 1.42 17,389 56 1.29 15,993 43 1.08
Senior and subordinated notes 23,605 138 2.34 22,342 121 2.17 21,987 89 1.62
Other borrowings and liabilities 17,654 27 0.61 21,840 34 0.62 11,542 14 0.49
------ ------
Total interest-bearing liabilities $266,023 $562 0.85 $258,484 $517 0.80 $239,407 $423 0.71
-------- ---- ---- -------- ---- ---- -------- ---- ----
Net interest income/spread $5,447 6.71 $5,277 6.65 $4,961 6.66
====== ====== ======
Impact of non-interest-bearing funding 0.14 0.14 0.13
----
Net interest margin 6.85% 6.79% 6.79%
==== ==== ====
Year Ended December 31,
2016 2015
Average Balance Interest Income/ Yield/ Average Balance Interest Income/ Yield/
Expense(1) Rate(1) Expense(1) Rate(1)
--------------- ---------------- ------- --------------- ---------------- -------
(Dollars in millions)
--------------------
Interest-earning assets:
Loans, including loans held for sale $234,338 $21,203 9.05% $211,549 $18,785 8.88%
Investment securities 66,260 1,599 2.41 63,738 1,575 2.47
Cash equivalents and other 7,198 89 1.24 7,294 99 1.36
Total interest-earning assets $307,796 $22,891 7.44 $282,581 $20,459 7.24
-------- ------- -------- -------
Interest-bearing liabilities:
Interest-bearing deposits $198,304 $1,213 0.61 $185,677 $1,091 0.59
Securitized debt obligations 16,576 216 1.30 13,929 151 1.08
Senior and subordinated notes 22,417 476 2.12 20,935 330 1.58
Other borrowings and liabilities 18,736 113 0.60 11,297 53 0.47
---
Total interest-bearing liabilities $256,033 $2,018 0.79 $231,838 $1,625 0.70
-------- ------ ---- -------- ------ ----
Net interest income/spread $20,873 6.65 $18,834 6.54
======= =======
Impact of non-interest-bearing funding 0.13 0.12
---- ----
Net interest margin 6.78% 6.66%
==== ====
__________
(1) Interest income and interest
expense and the calculation
of average yields on
interest-earning assets and
average rates on interest-
bearing liabilities include
the impact of hedge
accounting.
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics
2016 Q4 vs Year Ended December 31,
(Dollars in millions) 2016 2016 2016 2016 2015 2016 2015 2016 2015 2016 vs.
Q4 Q3 Q2 Q1 Q4 Q3 Q4 2015
--- --- --- --- --- --- --- --- ----
Loans Held For Investment (Period-End)
-------------------------------------
Credit card:
Domestic credit card $97,120 $90,955 $88,581 $84,561 $87,939 7% 10% $97,120 $87,939 10%
International credit card 8,432 8,246 8,323 8,138 8,186 2 3 8,432 8,186 3
----- ----- ----- ----- ----- ----- -----
Total credit card 105,552 99,201 96,904 92,699 96,125 6 10 105,552 96,125 10
------- ------ ------ ------ ------ ------- ------
Consumer banking:
Auto 47,916 46,311 44,502 42,714 41,549 3 15 47,916 41,549 15
Home loan 21,584 22,448 23,358 24,343 25,227 (4) (14) 21,584 25,227 (14)
Retail banking 3,554 3,526 3,555 3,534 3,596 1 (1) 3,554 3,596 (1)
----- ----- ----- ----- ----- ----- -----
Total consumer banking 73,054 72,285 71,415 70,591 70,372 1 4 73,054 70,372 4
------ ------ ------ ------ ------ ------ ------
Commercial banking:
Commercial and multifamily real estate 26,609 26,507 26,341 25,559 25,518 - 4 26,609 25,518 4
Commercial and industrial 39,824 39,432 39,313 38,102 37,135 1 7 39,824 37,135 7
------ ------ ------ ------ ------ ------ ------
Total commercial lending 66,433 65,939 65,654 63,661 62,653 1 6 66,433 62,653 6
Small-ticket commercial real estate 483 518 548 580 613 (7) (21) 483 613 (21)
--- --- --- --- --- --- ---
Total commercial banking 66,916 66,457 66,202 64,241 63,266 1 6 66,916 63,266 6
------ ------ ------ ------ ------ ------ ------
Other loans 64 76 82 82 88 (16) (27) 64 88 (27)
Total loans held for investment $245,586 $238,019 $234,603 $227,613 $229,851 3 7 $245,586 $229,851 7
======== ======== ======== ======== ======== ======== ========
Loans Held For Investment (Average)
----------------------------------
Credit card:
Domestic credit card $92,623 $89,763 $85,981 $85,148 $83,760 3% 11% $88,394 $78,743 12%
International credit card 8,168 8,253 8,401 7,839 8,127 (1) 1 8,166 7,992 2
----- ----- ----- ----- ----- ----- -----
Total credit card 100,791 98,016 94,382 92,987 91,887 3 10 96,560 86,735 11
------- ------ ------ ------ ------ ------ ------
Consumer banking:
Auto 47,126 45,355 43,605 41,962 41,333 4 14 44,521 39,967 11
Home loan 21,984 22,852 23,835 24,781 25,776 (4) (15) 23,358 27,601 (15)
Retail banking 3,549 3,520 3,548 3,553 3,595 1 (1) 3,543 3,582 (1)
----- ----- ----- ----- ----- ----- -----
Total consumer banking 72,659 71,727 70,988 70,296 70,704 1 3 71,422 71,150 -
------ ------ ------ ------ ------ ------ ------
Commercial banking:
Commercial and multifamily real estate 26,445 26,154 25,661 25,015 25,613 1 3 25,821 23,728 9
Commercial and industrial 39,573 39,346 38,713 37,762 31,132 1 27 38,852 28,349 37
------ ------ ------ ------ ------ ------ ------
Total commercial lending 66,018 65,500 64,374 62,777 56,745 1 16 64,673 52,077 24
Small-ticket commercial real estate 497 534 564 598 634 (7) (22) 548 692 (21)
--- --- --- --- --- --- ---
Total commercial banking 66,515 66,034 64,938 63,375 57,379 1 16 65,221 52,769 24
------ ------ ------ ------ ------ ------ ------
Other loans 62 66 71 78 82 (6) (24) 69 91 (24)
Total average loans held for investment $240,027 $235,843 $230,379 $226,736 $220,052 2 9 $233,272 $210,745 11
======== ======== ======== ======== ======== ======== ========
2016 Q4 vs Year Ended December 31,
2016 2016 2016 2016 2015 2016 2015 2016 vs.
Q4 Q3 Q2 Q1 Q4 Q3 Q4 2015
2016 2015
---- ----
Net Charge-Off (Recovery) Rates
-------------------------------
Credit card:
Domestic credit card 4.66% 3.74% 4.07% 4.16% 3.75% 92 bps 91 bps 4.16% 3.45% 71 bps
International credit card 3.35 3.18 3.54 3.24 2.76 17 59 3.33 2.50 83
Total credit card 4.56 3.70 4.02 4.09 3.66 86 90 4.09 3.36 73
Consumer banking:
Auto 2.07 1.85 1.20 1.60 2.10 22 (3) 1.69 1.69 -
Home loan 0.08 0.03 0.09 0.05 0.05 5 3 0.06 0.03 3
Retail banking 1.73 1.75 1.26 1.36 1.43 (2) 30 1.53 1.33 20
Total consumer banking 1.45 1.26 0.83 1.04 1.32 19 13 1.15 1.03 12
Commercial banking:
Commercial and multifamily real estate (0.02) 0.01 (0.02) (0.01) (0.03) (3) 1 (0.01) (0.06) 5
Commercial and industrial 0.80 1.09 0.62 0.49 0.07 (29) 73 0.75 0.21 54
Total commercial lending 0.47 0.66 0.37 0.29 0.02 (19) 45 0.45 0.09 36
Small-ticket commercial real estate (0.02) 0.74 0.33 0.13 0.34 (76) (36) 0.30 0.36 (6)
Total commercial banking 0.47 0.66 0.37 0.29 0.03 (19) 44 0.45 0.09 36
Total net charge-offs 2.48 2.10 2.01 2.08 1.96 38 52 2.17 1.75 42
---------------------
30+ Day Performing Delinquency Rates
------------------------------------
Credit card:
Domestic credit card 3.95% 3.68% 3.14% 3.09% 3.39% 27 bps 56 bps 3.95% 3.39% 56 bps
International credit card 3.36 3.33 3.24 3.32 2.98 3 38 3.36 2.98 38
Total credit card 3.91 3.65 3.15 3.11 3.36 26 55 3.91 3.36 55
Consumer banking:
Auto 6.12 5.67 5.59 5.14 6.69 45 (57) 6.12 6.69 (57)
Home loan 0.20 0.19 0.14 0.14 0.16 1 4 0.20 0.16 4
Retail banking 0.70 0.59 0.62 0.61 0.76 11 (6) 0.70 0.76 (6)
Total consumer banking 4.10 3.72 3.56 3.19 4.05 38 5 4.10 4.05 5
----------------------
Nonperforming Loans and Nonperforming Assets Rates(1)(2)
-------------------------------------------------------
Credit card:
International credit card 0.50% 0.53% 0.53% 0.59% 0.65% (3) bps (15) bps 0.50% 0.65% (15) bps
Total credit card 0.04 0.04 0.05 0.05 0.06 - (2) 0.04 0.06 (2)
Consumer banking:
Auto 0.47 0.43 0.38 0.31 0.53 4 (6) 0.47 0.53 (6)
Home loan 1.26 1.23 1.24 1.26 1.23 3 3 1.26 1.23 3
Retail banking 0.86 1.05 0.89 0.83 0.77 (19) 9 0.86 0.77 9
Total consumer banking 0.72 0.71 0.69 0.66 0.79 1 (7) 0.72 0.79 (7)
Commercial banking:
Commercial and multifamily real estate 0.11 0.08 0.10 0.12 0.03 3 8 0.11 0.03 8
Commercial and industrial 2.48 2.44 2.58 2.66 1.45 4 103 2.48 1.45 103
Total commercial lending 1.53 1.49 1.59 1.64 0.87 4 66 1.53 0.87 66
Small-ticket commercial real estate 0.85 2.13 1.59 1.11 0.83 (128) 2 0.85 0.83 2
Total commercial banking 1.53 1.50 1.59 1.63 0.87 3 66 1.53 0.87 66
Total nonperforming loans 0.65 0.66 0.68 0.69 0.51 (1) 14 0.65 0.51 14
Total nonperforming assets 0.76 0.77 0.80 0.83 0.65 (1) 11 0.76 0.65 11
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, 2016
Credit Card Consumer Banking
(Dollars in millions) Domestic Card International Total Credit Auto Home Retail Total Commercial
Card Card Banking Other(3) Total
Loan Banking Consumer
Banking
--- -------
Allowance for loan and lease losses:
Balance as of September 30, 2016 $4,079 $366 $4,445 $862 $62 $79 $1,003 $808 $2 $6,258
Provision (benefit) for loan and lease losses 1,229 93 1,322 339 8 17 364 63 (1) 1,748
Charge-offs (1,299) (112) (1,411) (339) (7) (18) (364) (83) (1) (1,859)
Recoveries 220 43 263 95 2 3 100 5 2 370
--- --- --- --- --- --- --- --- --- ---
Net charge-offs (1,079) (69) (1,148) (244) (5) (15) (264) (78) 1 (1,489)
Other changes(4) - (13) (13) - - (1) (1) - - (14)
Balance as of December 31, 2016 4,229 377 4,606 957 65 80 1,102 793 2 6,503
----- --- ----- --- --- --- ----- --- --- -----
Reserve for unfunded lending commitments:
Balance as of September 30, 2016 - - - - - 6 6 126 - 132
Provision (benefit) for losses on unfunded lending commitments - - - - - 1 1 3 - 4
Balance as of December 31, 2016 - - - - - 7 7 129 - 136
--- --- --- --- --- --- --- --- --- ---
Combined allowance and reserve as of December 31, 2016 $4,229 $377 $4,606 $957 $65 $87 $1,109 $922 $2 $6,639
====== ==== ====== ==== === === ====== ==== === ======
Year Ended December 31, 2016
Credit Card Consumer Banking
(Dollars in millions) Domestic Card International Total Credit Auto Home Retail Total Commercial
Card Card Banking Other(3) Total
Loan Banking Consumer
Banking
--- -------
Allowance for loan and lease losses:
Balance as of December 31, 2015 $3,355 $299 $3,654 $726 $70 $72 $868 $604 $4 $5,130
Provision (benefit) for loan and lease losses 4,555 371 4,926 983 9 63 1,055 515 (5) 6,491
Charge-offs (4,586) (433) (5,019) (1,135) (22) (69) (1,226) (307) (3) (6,555)
Recoveries 905 161 1,066 383 8 15 406 15 6 1,493
--- --- ----- --- --- --- --- --- --- -----
Net charge-offs (3,681) (272) (3,953) (752) (14) (54) (820) (292) 3 (5,062)
Other changes(4) - (21) (21) - - (1) (1) (34) - (56)
Balance as of December 31, 2016 4,229 377 4,606 957 65 80 1,102 793 2 6,503
----- --- ----- --- --- --- ----- --- --- -----
Reserve for unfunded lending commitments:
Balance as of December 31, 2015 - - - - - 7 7 161 - 168
Provision (benefit) for losses on unfunded lending commitments - - - - - - - (32) - (32)
Balance as of December 31, 2016 - - - - - 7 7 129 - 136
--- --- --- --- --- --- --- --- --- ---
Combined allowance and reserve as of December 31, 2016 $4,229 $377 $4,606 $957 $65 $87 $1,109 $922 $2 $6,639
====== ==== ====== ==== === === ====== ==== === ======
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial Summary-Business Segment Results
Three Months Ended December 31, 2016 Year Ended December 31, 2016
(Dollars in millions) Credit Card Consumer Commercial Other Total Credit Card Consumer Commercial
Banking Banking Banking 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(5) 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
==== ==== ==== ==== ==== ====== ==== ==== ==== ======
Three Months Ended September 30, 2016
(Dollars in millions) Credit Card Consumer Commercial
Banking Banking Other Total
-------------------- ----------- --------- ----------- ----- -----
Net interest income $3,204 $1,472 $555 $46 $5,277
Non-interest income 825 201 156 2 1,184
--- --- --- ---
Total net revenue(5) 4,029 1,673 711 48 6,461
Provision (benefit) for credit losses 1,272 256 61 (1) 1,588
Non-interest expense 1,884 1,034 349 94 3,361
----- ----- --- ---
Income (loss) from continuing operations before income taxes 873 383 301 (45) 1,512
Income tax provision (benefit) 318 139 110 (71) 496
Income (loss) from continuing operations, net of tax $555 $244 $191 $26 $1,016
==== ==== ==== === ======
Three Months Ended December 31, 2015 Year Ended December 31, 2015
(Dollars in millions) Credit Card Consumer Commercial Other Total Credit Card Consumer Commercial
Banking Banking Banking Banking Other Total
-------------------- ----------- --------- ----------- ----- ----- ----------- --------- ----------- ----- -----
Net interest income $2,996 $1,434 $484 $47 $4,961 $11,161 $5,755 $1,865 $53 $18,834
Non-interest income 902 182 142 7 1,233 3,421 710 487 (39) 4,579
--- --- --- --- ----- --- --- --- -----
Total net revenue(5) 3,898 1,616 626 54 6,194 14,582 6,465 2,352 14 23,413
Provision (benefit) for credit losses 1,022 240 118 - 1,380 3,417 819 302 (2) 4,536
Non-interest expense 2,021 1,057 342 60 3,480 7,502 4,026 1,156 312 12,996
----- ----- --- --- ----- ----- ----- ----- --- ------
Income (loss) from continuing operations before income taxes 855 319 166 (6) 1,334 3,663 1,620 894 (296) 5,881
Income tax provision (benefit) 302 115 60 (51) 426 1,309 586 324 (350) 1,869
--- -----
Income (loss) from continuing operations, net of tax $553 $204 $106 $45 $908 $2,354 $1,034 $570 $54 $4,012
==== ==== ==== === ==== ====== ====== ==== === ======
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary-Credit Card Business
2016 Q4 vs Year Ended December 31,
2016 2016 2016 2016 2015 2016 2015 2016 vs
(Dollars in millions) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2016 2015 2015
-------------------- --- --- --- --- --- --- --- ---- ---- ----
Credit Card
-----------
Earnings:
Net interest income $3,353 $3,204 $3,045 $3,033 $2,996 5% 12% $12,635 $11,161 13%
Non-interest income 849 825 859 847 902 3 (6) 3,380 3,421 (1)
--- --- --- --- --- ----- -----
Total net revenue 4,202 4,029 3,904 3,880 3,898 4 8 16,015 14,582 10
Provision (benefit) for credit losses 1,322 1,272 1,261 1,071 1,022 4 29 4,926 3,417 44
Non-interest expense 2,073 1,884 1,883 1,863 2,021 10 3 7,703 7,502 3
----- ----- ----- ----- ----- ----- -----
Income (loss) from continuing operations before income taxes 807 873 760 946 855 (8) (6) 3,386 3,663 (8)
Income tax provision (benefit) 295 318 276 337 302 (7) (2) 1,226 1,309 (6)
-----
Income (loss) from continuing operations, net of tax $512 $555 $484 $609 $553 (8) (7) $2,160 $2,354 (8)
==== ==== ==== ==== ==== ====== ======
Selected performance metrics:
Period-end loans held for investment $105,552 $99,201 $96,904 $92,699 $96,125 6 10 $105,552 $96,125 10
Average loans held for investment 100,791 98,016 94,382 92,987 91,887 3 10 96,560 86,735 11
Average yield on loans held for investment(6) 14.93% 14.68% 14.49% 14.60% 14.45% 25 bps 48 bps 14.68% 14.28% 40 bps
Total net revenue margin(7) 16.68 16.44 16.55 16.69 16.97 24 (29) 16.59 16.81 (22)
Net charge-off rate 4.56 3.70 4.02 4.09 3.66 86 90 4.09 3.36 73
30+ day performing delinquency rate 3.91 3.65 3.15 3.11 3.36 26 55 3.91 3.36 55
30+ day delinquency rate 3.94 3.69 3.18 3.15 3.40 25 54 3.94 3.40 54
Nonperforming loan rate(1) 0.04 0.04 0.05 0.05 0.06 - (2) 0.04 0.06 (2)
PCCR intangible amortization $58 $62 $67 $70 $74 (6)% (22)% $257 $316 (19)%
Purchase volume(8) 82,824 78,106 78,019 68,189 75,350 6 10 307,138 271,167 13
2016 Q4 vs Year Ended December 31,
2016 2016 2016 2016 2015 2016 2015 2016 vs
(Dollars in millions) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2016 2015 2015
-------------------- --- --- --- --- --- --- --- ---- ---- ----
Domestic Card
-------------
Earnings:
Net interest income $3,090 $2,956 $2,769 $2,756 $2,718 5% 14% $11,571 $10,147 14%
Non-interest income 791 759 792 774 830 4 (5) 3,116 3,183 (2)
----- -----
Total net revenue 3,881 3,715 3,561 3,530 3,548 4 9 14,687 13,330 10
Provision (benefit) for credit losses 1,229 1,190 1,164 972 945 3 30 4,555 3,204 42
Non-interest expense 1,859 1,696 1,669 1,671 1,796 10 4 6,895 6,627 4
----- -----
Income (loss) from continuing operations before income taxes 793 829 728 887 807 (4) (2) 3,237 3,499 (7)
Income tax provision (benefit) 288 302 265 323 293 (5) (2) 1,178 1,267 (7)
Income (loss) from continuing operations, net of tax $505 $527 $463 $564 $514 (4) (2) $2,059 $2,232 (8)
==== ==== ==== ==== ==== ====== ======
Selected performance metrics:
Period-end loans held for investment $97,120 $90,955 $88,581 $84,561 $87,939 7 10 $97,120 $87,939 10
Average loans held for investment 92,623 89,763 85,981 85,148 83,760 3 11 88,394 78,743 12
Average yield on loans held for investment(6) 14.91% 14.71% 14.40% 14.43% 14.31% 20 bps 60 bps 14.62% 14.21% 41 bps
Total net revenue margin(7) 16.76 16.55 16.57 16.58 16.95 21 (19) 16.62 16.93 (31)
Net charge-off rate 4.66 3.74 4.07 4.16 3.75 92 91 4.16 3.45 71
30+ day delinquency rate 3.95 3.68 3.14 3.09 3.39 27 56 3.95 3.39 56
Purchase volume(8) $75,639 $71,331 $71,050 $62,617 $68,740 6% 10% $280,637 $246,740 14%
Refreshed FICO scores:(9)
Greater than 660 64% 64% 65% 65% 66% - (2) 64% 66% (2)
660 or below 36 36 35 35 34 - 2 36 34 2
Total 100% 100% 100% 100% 100% 100% 100%
=== === === === === === ===
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Financial & Statistical Summary-Consumer Banking Business
2016 Q4 vs Year Ended December 31,
2016 2016 2016 2016 2015 2016 2015 2016 vs
(Dollars in millions) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2016 2015 2015
-------------------- --- --- --- --- --- --- --- ---- ---- ----
Consumer Banking
----------------
Earnings:
Net interest income $1,498 $1,472 $1,439 $1,420 $1,434 2% 4% $5,829 $5,755 1%
Non-interest income 166 201 175 191 182 (17) (9) 733 710 3
--- --- --- --- --- --- ---
Total net revenue 1,664 1,673 1,614 1,611 1,616 (1) 3 6,562 6,465 2
Provision (benefit) for credit losses 365 256 204 230 240 43 52 1,055 819 29
Non-interest expense 1,109 1,034 1,006 990 1,057 7 5 4,139 4,026 3
----- ----- ----- --- ----- ----- -----
Income (loss) from continuing operations before income taxes 190 383 404 391 319 (50) (40) 1,368 1,620 (16)
Income tax provision (benefit) 70 139 147 142 115 (50) (39) 498 586 (15)
--- --- --- --- --- --- ---
Income (loss) from continuing operations, net of tax $120 $244 $257 $249 $204 (51) (41) $870 $1,034 (16)
==== ==== ==== ==== ==== ==== ======
Selected performance metrics:
Period-end loans held for investment $73,054 $72,285 $71,415 $70,591 $70,372 1 4 $73,054 $70,372 4
Average loans held for investment 72,659 71,727 70,988 70,296 70,704 1 3 71,422 71,150 -
Average yield on loans held for investment(6) 6.50% 6.41% 6.28% 6.18% 6.25% 9 bps 25 bps 6.34% 6.26% 8 bps
Auto loan originations $6,542 $6,804 $6,529 $5,844 $4,977 (4)% 31% $25,719 $21,185 21%
Period-end deposits 181,917 178,793 176,340 177,803 172,702 2 5 181,917 172,702 5
Average deposits 180,019 177,402 176,808 174,254 171,521 1 5 177,129 170,757 4
Average deposit interest rate 0.57% 0.56% 0.55% 0.54% 0.54% 1 bps 3 bps 0.56% 0.56% -
Net charge-off rate 1.45 1.26 0.83 1.04 1.32 19 13 1.15 1.03 12 bps
30+ day performing delinquency rate 4.10 3.72 3.56 3.19 4.05 38 5 4.10 4.05 5
30+ day delinquency rate 4.67 4.26 4.07 3.67 4.67 41 - 4.67 4.67 -
Nonperforming loan rate(1) 0.72 0.71 0.69 0.66 0.79 1 (7) 0.72 0.79 (7)
Nonperforming asset rate(2) 1.09 0.98 0.96 0.95 1.10 11 (1) 1.09 1.10 (1)
Auto-At origination FICO scores:(10)
Greater than 660 52% 51% 51% 51% 51% 1% 1% 52% 51% 1%
621 - 660 17 17 17 17 17 - - 17 17 -
620 or below 31 32 32 32 32 (1) (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
2016 Q4 vs Year Ended December 31,
2016 2016 2016 2016 2015 2016 2015 2016 vs
(Dollars in millions) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2016 2015 2015
-------------------- --- --- --- --- --- --- --- ---- ---- ----
Commercial Banking
------------------
Earnings:
Net interest income $565 $555 $559 $537 $484 2% 17% $2,216 $1,865 19%
Non-interest income 175 156 129 118 142 12 23 578 487 19
--- --- --- --- --- --- ---
Total net revenue(5) 740 711 688 655 626 4 18 2,794 2,352 19
Provision (benefit) for credit losses 66 61 128 228 118 8 (44) 483 302 60
Non-interest expense 393 349 343 322 342 13 15 1,407 1,156 22
--- --- --- --- ---
Income (loss) from continuing operations before income taxes 281 301 217 105 166 (7) 69 904 894 1
Income tax provision (benefit) 102 110 79 38 60 (7) 70 329 324 2
Income (loss) from continuing operations, net of tax $179 $191 $138 $67 $106 (6) 69 $575 $570 1
==== ==== ==== === ==== ==== ====
Selected performance metrics:
Period-end loans held for investment $66,916 $66,457 $66,202 $64,241 $63,266 1 6 $66,916 $63,266 6
Average loans held for investment 66,515 66,034 64,938 63,375 57,379 1 16 65,221 52,769 24
Average yield on loans held for investment(5)(6) 3.55% 3.50% 3.45% 3.38% 3.18% 5 bps 37 bps 3.47% 3.21% 26 bps
Period-end deposits $33,866 $33,611 $34,281 $33,383 $34,257 1% (1)% $33,866 $34,257 (1)%
Average deposits 34,029 33,498 33,764 34,076 33,797 2 1 33,841 33,058 2
Average deposit interest rate 0.30% 0.30% 0.27% 0.27% 0.26% - 4 bps 0.28% 0.25% 3 bps
Net charge-off rate 0.47 0.66 0.37 0.29 0.03 (19) bps 44 0.45 0.09 36
Nonperforming loan rate(1)(11) 1.53 1.50 1.59 1.63 0.87 3 66 1.53 0.87 66
Nonperforming asset rate(2)(11) 1.54 1.51 1.60 1.64 0.87 3 67 1.54 0.87 67
Risk category:(11)(12)
Noncriticized $62,828 $62,336 $61,926 $59,663 $59,743 1% 5% $62,828 $59,743 5%
Criticized performing 2,453 2,473 2,456 2,595 2,015 (1) 22 2,453 2,015 22
Criticized nonperforming 1,022 994 1,050 1,050 550 3 86 1,022 550 86
PCI loans(11) 613 654 770 933 958 (6) (36) 613 958 (36)
--- ---
Total commercial loans $66,916 $66,457 $66,202 $64,241 $63,266 1 6 $66,916 $63,266 6
======= ======= ======= ======= ======= ======= =======
Risk category as a percentage of period-end loans held for investment:(11)(12)
Noncriticized 93.9% 93.8% 93.5% 92.9% 94.4% 10 bps (50) bps 93.9% 94.4% (50) bps
Criticized performing 3.7 3.7 3.7 4.0 3.2 - 50 3.7 3.2 50
Criticized nonperforming 1.5 1.5 1.6 1.6 0.9 - 60 1.5 0.9 60
PCI loans(11) 0.9 1.0 1.2 1.5 1.5 (10) (60) 0.9 1.5 (60)
--- ---
Total commercial loans 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
===== ===== ===== ===== ===== ===== =====
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Financial & Statistical Summary-Other and Total
2016 Q4 vs Year Ended December 31,
2016 2016 2016 2016 2015 2016 2015 2016 vs
(Dollars in millions) Q4 Q3 Q2 Q1 Q4 Q3 Q4 2016 2015 2015
--- --- --- --- --- --- --- ---- ---- ----
Other
-----
Earnings:
Net interest income (expense) $31 $46 $50 $66 $47 (33)% (34)% $193 $53 **
Non-interest income (71) 2 (2) 8 7 ** ** (63) (39) 62%
--- --- --- --- --- --- ---
Total net revenue (loss)(5) (40) 48 48 74 54 ** ** 130 14 **
Provision (benefit) for credit losses (1) (1) (1) (2) - - ** (5) (2) 150
Non-interest expense 104 94 63 48 60 11 73 309 312 (1)
--- --- --- --- --- --- ---
Income (loss) from continuing operations before income taxes (143) (45) (14) 28 (6) ** ** (174) (296) (41)
Income tax provision (benefit) (125) (71) (78) (65) (51) 76 145 (339) (350) (3)
---- --- --- --- --- ---- ----
Income (loss) from continuing operations, net of tax $(18) $26 $64 $93 $45 ** ** $165 $54 **
==== === === === === ==== ===
Selected performance metrics:
Period-end loans held for investment $64 $76 $82 $82 $88 (16) (27) $64 $88 (27)
Average loans held for investment 62 66 71 78 82 (6) (24) 69 91 (24)
Period-end deposits 20,985 13,577 10,438 10,593 10,762 55 95 20,985 10,762 95
Average deposits 18,156 11,351 10,574 10,850 10,581 60 72 12,744 7,174 78
Total
-----
Earnings:
Net interest income $5,447 $5,277 $5,093 $5,056 $4,961 3% 10% $20,873 $18,834 11%
Non-interest income 1,119 1,184 1,161 1,164 1,233 (5) (9) 4,628 4,579 1
----- ----- ----- ----- ----- ----- -----
Total net revenue 6,566 6,461 6,254 6,220 6,194 2 6 25,501 23,413 9
Provision (benefit) for credit losses 1,752 1,588 1,592 1,527 1,380 10 27 6,459 4,536 42
Non-interest expense 3,679 3,361 3,295 3,223 3,480 9 6 13,558 12,996 4
----- ----- ----- ----- ----- ------ ------
Income (loss) from continuing operations before income taxes 1,135 1,512 1,367 1,470 1,334 (25) (15) 5,484 5,881 (7)
Income tax provision (benefit) 342 496 424 452 426 (31) (20) 1,714 1,869 (8)
--- --- --- --- --- ----- -----
Income (loss) from continuing operations, net of tax $793 $1,016 $943 $1,018 $908 (22) (13) $3,770 $4,012 (6)
==== ====== ==== ====== ==== ====== ======
Selected performance metrics:
Period-end loans held for investment $245,586 $238,019 $234,603 $227,613 $229,851 3 7 $245,586 $229,851 7
Average loans held for investment 240,027 235,843 230,379 226,736 220,052 2 9 233,272 210,745 11
Period-end deposits 236,768 225,981 221,059 221,779 217,721 5 9 236,768 217,721 9
Average deposits 232,204 222,251 221,146 219,180 215,899 4 8 223,714 210,989 6
( ) ( )
(
)
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7-13)
(1) Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for
investment for each respective category.
(2) Nonperforming assets consist of nonperforming loans, real estate owned ("REO") and other foreclosed assets. The total nonperforming
asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, REO
and other foreclosed assets. 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.
(3) Primarily consists of the legacy loan portfolio of our discontinued GreenPoint mortgage operations.
(4) Represents foreign currency translation adjustments and the net impact of loan transfers and sales.
(5) Some of our tax-related commercial investments generate tax-exempt income or tax credits. Accordingly, we make certain
reclassifications within our Commercial Banking business results to present revenues and yields on a taxable-equivalent basis,
calculated assuming an effective tax rate approximately equal to our federal statutory tax rate of 35% with offsetting
reclassifications to the Other category.
(6) 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.
(7) 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.
(8) 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.
(9) Percentages represent period-end loans held for investment in each credit score category. Credit scores generally represent FICO
scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We
approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is
available or the credit score is invalid are included in the 660 or below category.
(10) Percentages represent period-end loans held for investment in each credit score category. Credit scores generally represent average
FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no
credit score is available or the credit score is invalid are included in the 620 or below category.
(11) The loans held for investment acquired in the HFS acquisition included $518 million, $556 million, $667 million, $825 million and $835
million of PCI loans as of December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, respectively,
that are being accounted for under ASC 310-30 (formerly "SOP 03-3") due to their deterioration in credit quality since origination.
From a managed perspective, we evaluate loans based on their actual risk ratings, and accordingly we are also including our
nonperforming and criticized ratios measured on that basis. The table below presents our nonperforming loan rate, nonperforming asset
rate and risk category information as if these PCI loans were classified based on their risk ratings in each of the periods impacted
by the HFS acquisition.
2016 2016 2016 2016 2015
(Dollars in millions) Q4 Q3 Q2 Q1 Q4
-------------------- --- --- --- --- ---
Selected performance metrics:
Nonperforming loan rate 1.56% 1.53% 1.63% 1.69% 0.93%
Nonperforming asset rate 1.57 1.54 1.64 1.70 0.93
Risk category:
Noncriticized $63,078 $62,575 $62,058 $59,729 $59,743
Criticized performing 2,700 2,766 2,961 3,321 2,814
Criticized nonperforming 1,042 1,018 1,080 1,083 586
Risk category as a percentage of period-end loans held for investment:
Noncriticized 94.3% 94.2% 93.7% 93.0% 94.4%
Criticized performing 4.0 4.2 4.5 5.2 4.5
Criticized nonperforming 1.6 1.5 1.6 1.7 0.9
(12) Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory
authorities.
** Not meaningful.
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures(1)
Basel III Standardized Approach
(Dollars in millions) December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---
Regulatory Capital Metrics
--------------------------
Common equity excluding AOCI $44,103 $44,214 $44,572 $44,452 $44,606
Adjustments:
AOCI(2)(3) (674) 199 332 117 (254)
Goodwill(4) (14,307) (14,288) (14,296) (14,301) (14,296)
Intangible assets(3)(4) (384) (435) (483) (532) (393)
Other 65 (498) (639) (505) (119)
Common equity Tier 1 capital $28,803 $29,192 $29,486 $29,231 $29,544
======= ======= ======= ======= =======
Tier 1 capital $33,162 $33,069 $32,780 $32,525 $32,838
Total capital(5) 40,816 40,564 38,767 38,399 38,838
Risk-weighted assets 285,654 275,198 269,667 262,368 265,739
Adjusted average assets(6) 335,835 328,627 319,968 317,403 309,037
-------------------------
Capital Ratios
--------------
Common equity Tier 1 capital(7) 10.1% 10.6% 10.9% 11.1% 11.1%
Tier 1 capital(8) 11.6 12.0 12.2 12.4 12.4
Total capital(9) 14.3 14.7 14.4 14.6 14.6
Tier 1 leverage(6) 9.9 10.1 10.2 10.2 10.6
Tangible common equity ("TCE")(10) 8.1 8.8 9.0 9.1 8.9
Reconciliation of Non-GAAP Measures
We report certain non-GAAP measures that management uses in assessing its capital adequacy and the level of return generated. These non-GAAP measures consist of 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 tables below present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.
2016 2016 2016 Year Ended December 31,
Q4 Q3 Q2 2016
(Dollars in millions) Reported Results Adjustments(11) Adjusted Results Reported Results Adjustments(11) Adjusted Results Reported Results Adjustments(11) Adjusted Results Reported Results Adjustments(11) Adjusted Results
---------------- -------------- ---------------- ---------------- --------------- ---------------- ---------------- -------------- ---------------- ---------------- -------------- ----------------
Selected income statement data:
Net interest income $5,447 $13 $5,460 $5,277 $34 $5,311 $5,093 $7 $5,100 $20,873 $54 $20,927
Non-interest income 1,119 14 1,133 1,184 13 1,197 1,161 8 1,169 4,628 35 4,663
----- --- ----- ----- --- ----- ----- --- ----- ----- --- -----
Total net revenue 6,566 27 6,593 6,461 47 6,508 6,254 15 6,269 25,501 89 25,590
Non-interest expense 3,679 (45) 3,634 3,361 (16) 3,345 3,295 (15) 3,280 13,558 (76) 13,482
Selected performance metrics:
Efficiency ratio 56.03% (91) bps 55.12% 52.02% (62) bps 51.40% 52.69% (37) bps 52.32% 53.17% (49) bps 52.68%
2016 2016 2016 2016 2015
(Dollars in millions) Q4 Q3 Q2 Q1 Q4
--- --- --- --- ---
Tangible Common Equity (Period-End)
----------------------------------
Stockholders' equity $47,514 $48,213 $48,108 $47,707 $47,284
Goodwill and intangible assets(4) (15,420) (15,475) (15,553) (15,629) (15,701)
Noncumulative perpetual preferred stock(12) (4,360) (3,877) (3,294) (3,296) (3,294)
------ ------
Tangible common equity $27,734 $28,861 $29,261 $28,782 $28,289
======= ======= ======= ======= =======
Tangible Common Equity (Average)
-------------------------------
Stockholders' equity $47,972 $49,033 $48,934 $49,078 $48,712
Goodwill and intangible assets(4) (15,455) (15,507) (15,585) (15,654) (15,316)
Noncumulative perpetual preferred stock(12) (4,051) (3,719) (3,294) (3,296) (3,294)
Tangible common equity $28,466 $29,807 $30,055 $30,128 $30,102
======= ======= ======= ======= =======
Tangible Assets (Period-End)
---------------------------
Total assets $357,033 $345,061 $339,117 $330,346 $334,048
Goodwill and intangible assets(4) (15,420) (15,475) (15,553) (15,629) (15,701)
-------
Tangible assets $341,613 $329,586 $323,564 $314,717 $318,347
======== ======== ======== ======== ========
Tangible Assets (Average)
------------------------
Total assets $350,225 $343,153 $334,479 $331,919 $323,354
Goodwill and intangible assets(4) (15,455) (15,507) (15,585) (15,654) (15,316)
-------
Tangible assets $334,770 $327,646 $318,894 $316,265 $308,038
======== ======== ======== ======== ========
_________
(1) Regulatory capital metrics and capital
ratios as of December 31, 2016 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 40% for 2015 and 60% for
2016.
(4) Includes impact of related deferred
taxes.
(5) Total capital equals the sum of Tier 1
capital and Tier 2 capital.
(6) Adjusted average assets for the purpose
of calculating our Tier 1 leverage
ratio represents total average assets
adjusted for amounts that deducted from
Tier 1 capital, predominately goodwill
and intangible assets. Tier 1 leverage
ratio is a regulatory capital measure
calculated based on Tier 1 capital
divided by adjusted average assets.
(7) Common equity Tier 1 capital ratio is a
regulatory capital measure calculated
based on common equity Tier 1 capital
divided by risk-weighted assets.
(8) Tier 1 capital ratio is a regulatory
capital measure calculated based on
Tier 1 capital divided by risk-
weighted assets.
(9) Total capital ratio is a regulatory
capital measure calculated based on
total capital divided by risk-weighted
assets.
(10) TCE ratio is a non-GAAP measure
calculated based on TCE divided by
tangible assets.
(11) In Q4 2016, we recorded charges totaling
$72 million consisting of a build in
the U.K. Payment Protection Insurance
customer refund reserve ("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. In Q2 2016, we recorded
charges totaling $30 million associated
with a build of $54 million in the U.K.
PPI Reserve, partially offset by a gain
of $24 million related to the exchange
of our ownership interest in Visa
Europe with Visa Inc. as a result of
Visa Inc.'s acquisition of Visa Europe.
(12) Includes related surplus.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/capital-one-reports-fourth-quarter-2016-net-income-of-791-million-or-145-per-share-300395896.html
SOURCE Capital One Financial Corporation
