MCLEAN, Va., July 21, 2016 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the second quarter of 2016 of $942 million, or $1.69 per diluted common share, compared to the first quarter of 2016 with net income of $1.0 billion, or $1.84 per diluted common share, and the second quarter of 2015 with net income of $863 million, or $1.50 per diluted common share. Excluding Adjusting items, net income for the second quarter of 2016 was $979 million or $1.76 per share.
"In the second quarter, Capital One sustained top-line growth, delivered successful 2016 CCAR results, and affirmed our guidance for domestic card credit and total company efficiency ratio," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "We remain well positioned to deliver growth and returns at the higher end of banks and distribute significant capital to shareholders, subject to regulatory approval."
All comparisons below are for the second quarter of 2016 compared with the first quarter of 2016 unless otherwise noted.
Second Quarter 2016 Income Statement Summary:
-- Total net revenue increased 1 percent to $6.3 billion. -- Total non-interest expense increased 2 percent to $3.3 billion. -- 3 percent decrease in marketing. -- 3 percent increase in operating expenses. -- Pre-provision earnings decreased 1 percent to $3.0 billion. -- Provision for credit losses increased 4 percent to $1.6 billion. -- Net charge-offs of $1.2 billion. -- $465 million allowance build. -- Net interest margin of 6.73 percent, down 2 basis points. -- Efficiency ratio of 52.69 percent. -- Efficiency ratio net of adjustments of 52.32 percent.
Second Quarter 2016 Balance Sheet Summary:
-- Common equity Tier 1 capital ratio under Basel III Standardized Approach of 10.9 percent at June 30, 2016. -- Period-end loans held for investment in the quarter increased $7.0 billion, or 3 percent, to $234.6 billion. -- Domestic Card period-end loans increased $4.0 billion, or 5 percent, to $88.6 billion. -- Consumer Banking period-end loans increased $824 million, or 1 percent, to $71.4 billion. -- Auto period-end loans increased $1.8 billion, or 4 percent, to $44.5 billion. -- Home loans period-end loans decreased $985 million, or 4 percent, to $23.4 billion, driven by planned run-off of acquired portfolios. -- Commercial Banking period-end loans increased $2.0 billion, or 3 percent, to $66.2 billion. -- Average loans held for investment in the quarter increased $3.6 billion, or 2 percent, to $230.4 billion. -- Domestic Card average loans increased $833 million, or 1 percent, to $86.0 billion. -- Consumer Banking average loans increased $692 million, or 1 percent, to $71.0 billion: -- Auto average loans increased $1.6 billion, or 4 percent, to $43.6 billion. -- Home loans average loans decreased $946 million, or 4 percent, to $23.8 billion, driven by planned run-off of acquired portfolios. -- Commercial Banking average loans increased $1.6 billion, or 2 percent, to $64.9 billion. -- Period-end total deposits decreased $720 million, or less than 1 percent, to $221.1 billion, while average deposits increased $2.0 billion, or 1 percent, to $221.1 billion. -- Interest-bearing deposits rate paid increased by 2 basis points to 0.60 percent.
Earnings Conference Call Webcast Information
The company will hold an earnings conference call on July 21, 2016 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page (www.capitalone.com). Choose "About Us," then choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through August 4, 2016 at 5:00 PM Eastern Time.
Forward-Looking Statements
Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2015.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $221.1 billion in deposits and $339.1 billion in total assets as of June 30, 2016. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
Exhibit 99.2 Capital One Financial Corporation Financial Supplement Second Quarter 2016(1) Table of Contents Capital One Financial Corporation Consolidated Results Page Table 1: Financial Summary-Consolidated 1 Table 2: Selected Metrics-Consolidated 4 Table 3: Consolidated Statements of Income 5 Table 4: Consolidated Balance Sheets 7 Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1-4) 9 Table 6: Average Balances, Net Interest Income and Net Interest Margin 11 Table 7: Loan Information and Performance Statistics 12 Table 8: Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity 14 Business Segment Results Table 9: Financial Summary-Business Segment Results 15 Table 10: Financial & Statistical Summary-Credit Card Business 16 Table 11: Financial & Statistical Summary-Consumer Banking Business 18 Table 12: Financial & Statistical Summary-Commercial Banking Business 19 Table 13: Financial & Statistical Summary-Other and Total 20 Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7-13) 21 Other Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures 22 (1) The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended June 30, 2016 once it is filed with the Securities and Exchange Commission.
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 1: Financial Summary-Consolidated 2016 Q2 vs. Six Months Ended June 30, ----------- ------------------------- (Dollars in millions, except per share data and as noted) (unaudited) 2016 2016 2015 2015 2015 2016 2015 2016 vs. Q2 Q1 Q4 Q3 Q2 Q1 Q2 2016 2015 2015 --- --- --- --- --- --- --- ---- ---- ---- Income Statement ---------------- Net interest income $5,093 $5,056 $4,961 $4,760 $4,537 1% 12% $10,149 $9,113 11% Non-interest income 1,161 1,164 1,233 1,140 1,135 - 2 2,325 2,206 5 ----- ----- ----- ----- Total net revenue(1) 6,254 6,220 6,194 5,900 5,672 1 10 12,474 11,319 10 Provision for credit losses 1,592 1,527 1,380 1,092 1,129 4 41 3,119 2,064 51 Non-interest expense: Marketing 415 428 564 418 387 (3) 7 843 762 11 Amortization of intangibles 95 101 103 106 111 (6) (14) 196 221 (11) Operating expenses 2,785 2,694 2,813 2,636 2,809 3 (1) 5,479 5,373 2 ----- ----- ----- ----- ----- ----- Total non-interest expense 3,295 3,223 3,480 3,160 3,307 2 - 6,518 6,356 3 ----- ----- ----- ----- ----- ----- ----- Income from continuing operations before income taxes 1,367 1,470 1,334 1,648 1,236 (7) 11 2,837 2,899 (2) Income tax provision 424 452 426 530 384 (6) 10 876 913 (4) --- --- --- --- --- --- --- Income from continuing operations, net of tax 943 1,018 908 1,118 852 (7) 11 1,961 1,986 (1) Income (loss) from discontinued operations, net of tax(2) (1) (5) 12 (4) 11 (80) ** (6) 30 ** --- --- --- --- --- --- --- Net income 942 1,013 920 1,114 863 (7) 9 1,955 2,016 (3) Dividends and undistributed earnings allocated to participating securities(3) (6) (6) (4) (6) (4) - 50 (12) (10) 20 Preferred stock dividends (65) (37) (68) (29) (29) 76 124 (102) (61) 67 Net income available to common stockholders $871 $970 $848 $1,079 $830 (10) 5 $1,841 $1,945 (5) ==== ==== ==== ====== ==== ====== ====== Common Share Statistics ----------------------- Basic earnings per common share:(3) Net income from continuing operations $1.70 $1.86 $1.58 $2.01 $1.50 (9)% 13% $3.57 $3.49 2% Income (loss) from discontinued operations - (0.01) 0.02 (0.01) 0.02 ** ** (0.01) 0.06 ** ---- Net income per basic common share $1.70 $1.85 $1.60 $2.00 $1.52 (8) 12 $3.56 $3.55 - ===== ===== ===== ===== ===== ===== ===== Diluted earnings per common share:(3) Net income from continuing operations $1.69 $1.85 $1.56 $1.99 $1.48 (9) 14 $3.53 $3.45 2 Income (loss) from discontinued operations - (0.01) 0.02 (0.01) 0.02 ** ** (0.01) 0.06 ** Net income per diluted common share(4) $1.69 $1.84 $1.58 $1.98 $1.50 (8) 13 $3.52 $3.51 - ===== ===== ===== ===== ===== ===== ===== Weighted-average common shares outstanding (in millions): Basic 511.7 523.5 530.8 540.6 545.6 (2) (6) 517.6 548.0 (6) Diluted 516.5 528.0 536.3 546.3 552.0 (2) (6) 522.3 554.7 (6) Common shares outstanding (period end, in millions) 505.9 514.5 527.3 534.9 542.5 (2) (7) 505.9 542.5 (7) Dividends paid per common share $0.40 $0.40 $0.40 $0.40 $0.40 - - $0.80 $0.70 14 Tangible book value per common share (period end)(5) 57.84 55.94 53.65 54.66 52.74 3 10 57.84 52.74 10 2016 Q2 vs. Six Months Ended June 30, ----------- ------------------------- (Dollars in millions) (unaudited) 2016 2016 2015 2015 2015 2016 2015 2016 vs. -------------------------------- Q2 Q1 Q4 Q3 Q2 Q1 Q2 2016 2015 2015 --- --- --- --- --- --- --- ---- ---- ---- Balance Sheet (Period End) ------------------------- Loans held for investment(6) $234,603 $227,613 $229,851 $213,329 $209,705 3% 12% $234,603 $209,705 12% Interest-earning assets 307,163 298,348 302,007 283,073 280,137 3 10 307,163 280,137 10 Total assets 339,117 330,346 334,048 313,700 310,510 3 9 339,117 310,510 9 Interest-bearing deposits 195,635 196,597 191,874 187,848 183,657 - 7 195,635 183,657 7 Total deposits 221,059 221,779 217,721 212,903 208,780 - 6 221,059 208,780 6 Borrowings 59,181 50,497 59,115 42,778 45,766 17 29 59,181 45,766 29 Common equity 44,813 44,411 43,990 44,391 43,849 1 2 44,813 43,849 2 Total stockholders' equity 48,108 47,707 47,284 47,685 46,659 1 3 48,108 46,659 3 -------------------------- Balance Sheet (Average Balances) ------------------------------- Loans held for investment(6) $230,379 $226,736 $220,052 $211,227 $206,337 2% 12% $228,557 $205,768 11% Interest-earning assets 302,764 299,456 292,054 283,082 276,585 1 9 301,106 277,501 9 Total assets 334,479 331,919 323,354 313,822 307,206 1 9 333,197 308,295 8 Interest-bearing deposits 195,641 194,125 189,885 185,800 183,946 1 6 194,883 183,475 6 Total deposits 221,146 219,180 215,899 210,974 209,143 1 6 220,163 208,501 6 Borrowings 54,359 53,761 48,850 45,070 41,650 1 31 54,060 43,854 23 Common equity 45,640 45,782 45,418 45,407 44,878 - 2 45,711 44,727 2 Total stockholders' equity 48,934 49,078 48,712 48,456 47,255 - 4 49,007 46,828 5
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 2: Selected Metrics-Consolidated 2016 Q2 vs. Six Months Ended June 30, ----------- ------------------------- (Dollars in millions except as noted) (unaudited) 2016 2016 2015 2015 2015 2016 2015 2016 vs. Q2 Q1 Q4 Q3 Q2 Q1 Q2 2016 2015 2015 --- --- --- --- --- --- --- ---- ---- ---- Performance Metrics ------------------- Net interest income growth (period over period) 1% 2% 4% 5% (1)% ** ** 11% 5% ** Non-interest income growth (period over period) - (6) 8 - 6 ** ** 5 2 ** Total net revenue growth (period over period) 1 - 5 4 - ** ** 10 4 ** Total net revenue margin(7) 8.26 8.31 8.48 8.34 8.20 (5) bps 6 bps 8.29 8.16 13 bps Net interest margin(8) 6.73 6.75 6.79 6.73 6.56 (2) 17 6.74 6.57 17 Return on average assets 1.13 1.23 1.12 1.43 1.11 (10) 2 1.18 1.29 (11) Return on average tangible assets(9) 1.18 1.29 1.18 1.50 1.17 (11) 1 1.24 1.36 (12) Return on average common equity(10) 7.64 8.52 7.36 9.54 7.30 (88) 34 8.08 8.56 (48) Return on average tangible common equity(11) 11.61 12.94 11.11 14.33 11.06 (133) 55 12.28 13.01 (73) Non-interest expense as a percentage of average loans held for investment 5.72 5.69 6.33 5.98 6.41 3 (69) 5.70 6.18 (48) Efficiency ratio(12) 52.69 51.82 56.18 53.56 58.30 87 (561) 52.25 56.15 (390) Effective income tax rate for continuing operations 31.0 30.7 31.9 32.2 31.1 30 (10) 30.9 31.5 (60) Employees (in thousands), period end 46.1 45.8 45.4 46.9 47.5 1% (3)% 46.1 47.5 (3)% Credit Quality Metrics ---------------------- Allowance for loan and lease losses $5,881 $5,416 $5,130 $4,847 $4,676 9% 26% $5,881 $4,676 26% Allowance as a percentage of loans held for investment 2.51% 2.38% 2.23% 2.27% 2.23% 13 bps 28 bps 2.51% 2.23% 28 bps Net charge-offs $1,155 $1,178 $1,078 $890 $846 (2)% 37% $2,333 $1,727 35% Net charge-off rate(13) 2.01% 2.08% 1.96% 1.69% 1.64% (7) bps 37 bps 2.04% 1.68% 36 bps 30+ day performing delinquency rate 2.47 2.33 2.69 2.63 2.33 14 14 2.47 2.33 14 30+ day delinquency rate 2.79 2.64 3.00 2.95 2.65 15 14 2.79 2.65 14 Capital Ratios(14) ----------------- Common equity Tier 1 capital 10.9% 11.1% 11.1% 12.1% 12.1% (20) bps (120) bps 10.9% 12.1% (120) bps Tier 1 capital 12.2 12.4 12.4 13.4 13.3 (20) (110) 12.2 13.3 (110) Total capital 14.4 14.6 14.6 15.1 15.1 (20) (70) 14.4 15.1 (70) Tier 1 leverage 10.2 10.2 10.6 11.1 11.1 - (90) 10.2 11.1 (90) Tangible common equity ("TCE")(15) 9.0 9.1 8.9 9.8 9.7 (10) (70) 9.0 9.7 (70)
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 3: Consolidated Statements of Income Three Months Ended 2016 Q2 vs. Six Months Ended June 30, ------------------ ----------- ------------------------- (Dollars in millions, except per share data and as noted) (unaudited) 2016 2016 2015 2016 2015 2016 vs. -------------------------------------------------------------------- Q2 Q1 Q2 Q1 Q2 2016 2015 2015 --- --- --- --- --- ---- ---- ---- Interest income: Loans, including loans held for sale $5,148 $5,085 $4,531 1% 14% $10,233 $9,071 13% Investment securities 405 415 382 (2) 6 820 788 4 Other 18 17 24 6 (25) 35 52 (33) Total interest income 5,571 5,517 4,937 1 13 11,088 9,911 12 ----- ----- ----- ------ ----- Interest expense: Deposits 292 283 272 3 7 575 543 6 Securitized debt obligations 47 48 36 (2) 31 95 69 38 Senior and subordinated notes 111 106 80 5 39 217 159 36 Other borrowings 28 24 12 17 133 52 27 93 Total interest expense 478 461 400 4 20 939 798 18 --- --- --- --- --- Net interest income 5,093 5,056 4,537 1 12 10,149 9,113 11 Provision for credit losses 1,592 1,527 1,129 4 41 3,119 2,064 51 Net interest income after provision for credit losses 3,501 3,529 3,408 (1) 3 7,030 7,049 - ----- ----- ----- ----- ----- Non-interest income: Service charges and other customer-related fees 371 404 429 (8) (14) 775 866 (11) Interchange fees, net 616 596 567 3 9 1,212 1,063 14 Net other-than-temporary impairment recognized in earnings (2) (8) (7) (75) (71) (10) (22) (55) Other 176 172 146 2 21 348 299 16 Total non-interest income 1,161 1,164 1,135 - 2 2,325 2,206 5 ----- ----- ----- ----- ----- Non-interest expense: Salaries and associate benefits 1,279 1,270 1,360 1 (6) 2,549 2,571 (1) Occupancy and equipment 465 458 439 2 6 923 874 6 Marketing 415 428 387 (3) 7 843 762 11 Professional services 304 278 334 9 (9) 582 630 (8) Communications and data processing 262 243 208 8 26 505 410 23 Amortization of intangibles 95 101 111 (6) (14) 196 221 (11) Other 475 445 468 7 1 920 888 4 --- --- --- --- --- Total non-interest expense 3,295 3,223 3,307 2 - 6,518 6,356 3 ----- ----- ----- ----- ----- Income from continuing operations before income taxes 1,367 1,470 1,236 (7) 11 2,837 2,899 (2) Income tax provision 424 452 384 (6) 10 876 913 (4) --- --- --- --- --- Income from continuing operations, net of tax 943 1,018 852 (7) 11 1,961 1,986 (1) Income (loss) from discontinued operations, net of tax(2) (1) (5) 11 (80) ** (6) 30 ** --- --- --- --- --- Net income 942 1,013 863 (7) 9 1,955 2,016 (3) Dividends and undistributed earnings allocated to participating securities(3) (6) (6) (4) - 50 (12) (10) 20 Preferred stock dividends (65) (37) (29) 76 124 (102) (61) 67 Net income available to common stockholders $871 $970 $830 (10) 5 $1,841 $1,945 (5) ==== ==== ==== ====== ====== Three Months Ended 2016 Q2 vs. Six Months Ended June 30, ----------- ------------------------- (Dollars in millions, except per share data and as noted) (unaudited) 2016 2016 2015 2016 2015 2016 vs. -------------------------------------------------------------------- Q2 Q1 Q2 Q1 Q2 2016 2015 2015 --- --- --- --- --- ---- ---- ---- Basic earnings per common share:(3) Net income from continuing operations $1.70 $1.86 $1.50 (9)% 13% $3.57 $3.49 2% Income (loss) from discontinued operations - (0.01) 0.02 ** ** (0.01) 0.06 ** Net income per basic common share(4) $1.70 $1.85 $1.52 (8) 12 $3.56 $3.55 - ===== ===== ===== ===== ===== Diluted earnings per common share:(3) Net income from continuing operations $1.69 $1.85 $1.48 (9) 14 $3.53 $3.45 2 Income (loss) from discontinued operations - (0.01) 0.02 ** ** (0.01) 0.06 ** Net income per diluted common share(4) $1.69 $1.84 $1.50 (8) 13 $3.52 $3.51 - ===== ===== ===== ===== ===== Weighted-average common shares outstanding (in millions): Basic common shares 511.7 523.5 545.6 (2) (6) 517.6 548.0 (6) Diluted common shares 516.5 528.0 552.0 (2) (6) 522.3 554.7 (6) Dividends paid per common share $0.40 $0.40 $0.40 - - $0.80 $0.70 14
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 4: Consolidated Balance Sheets June 30, 2016 vs. ----------------- (Dollars in millions) (unaudited) June 30, December 31, June 30, December 31, June 30, 2015 2015 2015 2016 2015 --- ---- ---- Assets: Cash and cash equivalents: Cash and due from banks $3,253 $3,407 $2,879 (5)% 13% Interest-bearing deposits with banks 3,840 4,577 4,275 (16) (10) Federal funds sold and securities purchased under agreements to resell 56 39 2 44 ** --- --- --- Total cash and cash equivalents 7,149 8,023 7,156 (11) - Restricted cash for securitization investors 265 1,017 253 (74) 5 Securities available for sale, at fair value 39,960 39,061 39,136 2 2 Securities held to maturity, at carrying value 25,120 24,619 23,668 2 6 Loans held for investment:(6) Unsecuritized loans held for investment 202,778 196,068 175,407 3 16 Loans held in consolidated trusts 31,825 33,783 34,298 (6) (7) ------ ------ ------ Total loans held for investment 234,603 229,851 209,705 2 12 Allowance for loan and lease losses (5,881) (5,130) (4,676) 15 26 ------ ------ ------ Net loans held for investment 228,722 224,721 205,029 2 12 Loans held for sale, at lower of cost or fair value 1,220 904 1,066 35 14 Premises and equipment, net 3,556 3,584 3,602 (1) (1) Interest receivable 1,236 1,189 1,056 4 17 Goodwill 14,495 14,480 13,984 - 4 Other assets 17,394 16,450 15,560 6 12 ------ ------ ------ Total assets $339,117 $334,048 $310,510 2 9 ======== ======== ======== June 30, 2016 vs. ----------------- (Dollars in millions) (unaudited) June 30, December 31, June 30, December 31, June 30, 2016 2015 2015 2015 2015 --- ---- ---- ---- ---- ---- Liabilities: Interest payable $301 $299 $262 1% 15% Deposits: Non-interest-bearing deposits 25,424 25,847 25,123 (2) 1 Interest-bearing deposits 195,635 191,874 183,657 2 7 ------- ------- ------- Total deposits 221,059 217,721 208,780 2 6 Securitized debt obligations 16,130 16,166 13,785 - 17 Other debt: Federal funds purchased and securities loaned or sold under agreements to repurchase 999 981 1,888 2 (47) Senior and subordinated notes 21,872 21,837 19,987 - 9 Other borrowings 20,180 20,131 10,106 - 100 ------ ------ ------ Total other debt 43,051 42,949 31,981 - 35 Other liabilities 10,468 9,629 9,043 9 16 ------ ----- ----- Total liabilities 291,009 286,764 263,851 1 10 ------- ------- ------- Stockholders' equity: Preferred stock 0 0 0 - - Common stock 7 6 6 17 17 Additional paid-in capital, net 29,786 29,655 29,063 - 2 Retained earnings 28,479 27,045 25,540 5 12 Accumulated other comprehensive income (loss) 241 (616) (397) ** ** Treasury stock, at cost (10,405) (8,806) (7,553) 18 38 ------- ------ ------ Total stockholders' equity 48,108 47,284 46,659 2 3 ------ ------ ------ Total liabilities and stockholders' equity $339,117 $334,048 $310,510 2 9 ======== ======== ========
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CAPITAL ONE FINANCIAL CORPORATION (COF) Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1-4) ** Not meaningful. (1) Total net revenue was reduced by $244 million in Q2 2016, $228 million in Q1 2016, $222 million in Q4 2015, $195 million in Q3 2015 and $168 million in Q2 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 2015 2015 2015 (Dollars in millions) (unaudited) Q2 Q1 Q4 Q3 Q2 -------------------------------- --- --- --- --- --- Provision (benefit) for mortgage representation and warranty losses before income taxes: Recorded in continuing operations $(1) $(1) $(1) $(7) $(9) Recorded in discontinued operations 2 3 (21) 3 (27) Total provision (benefit) for mortgage representation and warranty losses before income taxes $1 $2 $(22) $(4) $(36) The mortgage representation and warranty reserve was $614 million as of June 30, 2016, $610 million as of December 31, 2015 and $636 million as of June 30, 2015. (3) Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarter may not agree to the year-to-date total. (4) In Q2 2016, we recorded charges totaling $30 million associated with (i) a build of $54 million in the U.K. Payment Protection Insurance customer refund reserve ("U.K. PPI Reserve"); offset by (ii) a gain of $24 million related to the exchange of our ownership interest in Visa Europe with Visa Inc. as a result of Visa Inc's acquisition of Visa Europe. In Q4 2015, we recorded charges totaling $72 million associated with (i) closing the GE Healthcare Financial Services ("HFS") acquisition and establishing an initial allowance and reserve related to the loans acquired; (ii) certain planned site closures; and (iii) revisions to the restructuring charges recorded in Q2 2015 to reflect updated information. In Q3 2015, we recorded a build in the U.K. PPI Reserve of $69 million. In Q2 2015, we recorded charges totaling $225 million associated with (i) a restructuring charge of $147 million for severance and related benefits pursuant to our ongoing benefit programs as a result of the realignment of our workforce; and (ii) a build in the U.K. PPI Reserve of $78 million. We report the following non- GAAP financial measures that we believe are helpful for investors and users of our financial information to understand the effect of these items on our reported results. The table below presents a reconciliation of our reported results to these non-GAAP financial measures. Period not presented had no adjustments. 2016 Q2 2015 Q4 2015 Q3 2015 Q2 ------- ------- ------- ------- (Dollars in millions, except per share data) (unaudited) Pre-Tax Income Net Income Diluted EPS Pre-Tax Income Net Income Diluted EPS Pre-Tax Income Net Income Diluted EPS Pre-Tax Income Net Income Diluted EPS ------------------------------------------------------- -------------- ---------- ----------- -------------- ---------- ----------- -------------- ---------- ----------- -------------- ---------- ----------- Reported results $1,367 $942 $1.69 $1,334 $920 $1.58 $1,648 $1,114 $1.98 $1,236 $863 $1.50 Adjustments 30 37 0.07 72 46 0.09 69 69 0.12 225 155 0.28 Results excluding adjustments $1,397 $979 $1.76 $1,406 $966 $1.67 $1,717 $1,183 $2.10 $1,461 $1,018 $1.78 (5) Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non- GAAP measures. (6) Included in loans held for investment are purchased credit-impaired loans ("PCI loans") recorded at fair value at acquisition and subsequently accounted for based on estimated cash flows expected to be collected over the life of the loans (under the accounting standard formerly known as "SOP 03-3," or Accounting Standards Codification 310-30). These include certain of our consumer and commercial loans that were acquired through business combinations. The table below presents amounts related to PCI loans: 2016 2016 2015 2015 2015 (Dollars in millions) (unaudited) Q2 Q1 Q4 Q3 Q2 -------------------------------- --- --- --- --- --- PCI loans: Period-end unpaid principal balance $18,256 $19,492 $20,434 $20,585 $21,841 Period-end loans held for investment 17,358 18,568 19,518 19,743 20,970 Average loans held for investment 17,783 18,894 19,319 20,116 21,440 (7) Calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period. (8) Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period. (9) Return on average tangible assets is a non-GAAP measure calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures. (10) Calculated based on the annualized sum of (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly titled measures reported by other companies. (11) Return on average tangible common equity ("ROTCE") is a non-GAAP measure calculated based on the annualized sum of (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Our calculation of ROTCE may not be comparable to similarly titled measures reported by other companies. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures. (12) Calculated based on total non-interest expense for the period divided by total net revenue for the period. The efficiency ratio, excluding the adjustments discussed above in Footnote 4, was 52.32% for Q2 2016, 55.82% for Q4 2015, 52.78% for Q3 2015 and 54.63% for Q2 2015. The adjusted efficiency ratios are non-GAAP measures that we believe would provide useful information to investors and users of our financial information. (13) Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period. (14) Ratios as of the end of Q2 2016 are preliminary and therefore subject to change. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios. (15) TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information on non-GAAP measures.
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CAPITAL ONE FINANCIAL CORPORATION (COF) Table 6: Average Balances, Net Interest Income and Net Interest Margin 2016 Q2 2016 Q1 2015 Q2 ------- ------- ------- 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) (unaudited) -------------------------------- Interest-earning assets: Loans, including loans held for sale $231,496 $5,148 8.90% $227,573 $5,085 8.94% $207,335 $4,531 8.74% Investment securities 65,754 405 2.46 65,156 415 2.55 63,771 382 2.40 Cash equivalents and other 5,514 18 1.31 6,727 17 1.01 5,479 24 1.75 Total interest-earning assets $302,764 $5,571 7.36 $299,456 $5,517 7.37 $276,585 $4,937 7.14 -------- ------ -------- ------ -------- ------ Interest-bearing liabilities: Interest-bearing deposits $195,641 $292 0.60 $194,125 $283 0.58 $183,946 $272 0.59 Securitized debt obligations 15,226 47 1.23 15,361 48 1.25 13,219 36 1.09 Senior and subordinated notes 21,717 111 2.04 21,993 106 1.93 20,336 80 1.57 Other borrowings and liabilities 18,255 28 0.61 17,176 24 0.56 8,857 12 0.54 ------ ------ ----- Total interest-bearing liabilities $250,839 $478 0.76 $248,655 $461 0.74 $226,358 $400 0.71 -------- ---- ---- -------- ---- ---- -------- ---- ---- Net interest income/spread $5,093 6.60 $5,056 6.63 $4,537 6.43 ====== ====== ====== Impact of non-interest-bearing funding 0.13 0.12 0.13 ---- Net interest margin 6.73% 6.75% 6.56% ==== ==== ==== Six Months Ended June 30, ------------------------- 2016 2015 ---- ---- Average Balance Interest Income/ Yield/ Average Balance Interest Income/ Yield/ Expense(1) Rate(1) Expense(1) Rate(1) --------------- ----------------- ------- --------------- ---------------- ------- (Dollars in millions) (unaudited) -------------------------------- Interest-earning assets: Loans, including loans held for sale $229,534 $10,233 8.92% $206,598 $9,071 8.78% Investment securities 65,455 820 2.51 63,477 788 2.48 Cash equivalents and other 6,117 35 1.14 7,426 52 1.40 Total interest-earning assets $301,106 $11,088 7.36 $277,501 $9,911 7.14 -------- ------- -------- ------ Interest-bearing liabilities: Interest-bearing deposits $194,883 $575 0.59 $183,475 $543 0.59 Securitized debt obligations 15,293 95 1.24 12,396 69 1.11 Senior and subordinated notes 21,855 217 1.99 20,465 159 1.55 Other borrowings and liabilities 17,716 52 0.59 11,771 27 0.46 Total interest-bearing liabilities $249,747 $939 0.75 $228,107 $798 0.70 -------- ---- ---- -------- ---- ---- Net interest income/spread $10,149 6.61 $9,113 6.44 ======= ====== Impact of non-interest-bearing funding 0.13 0.13 ---- ---- Net interest margin 6.74% 6.57% ==== ====
__________ (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 Q2 vs. Six Months Ended June 30, ----------- ------------------------- (Dollars in millions) (unaudited) 2016 2016 2015 2015 2015 2016 2015 2016 2015 2016 vs. Q2 Q1 Q4 Q3 Q2 Q1 Q2 2015 --- --- --- --- --- --- --- --- ---- Loans Held For Investment (Period End) ------------------------------------- Credit card: Domestic credit card $88,581 $84,561 $87,939 $82,178 $78,984 5% 12% $88,581 $78,984 12% International credit card 8,323 8,138 8,186 7,957 8,219 2 1 8,323 8,219 1 ----- ----- ----- ----- ----- ----- ----- Total credit card 96,904 92,699 96,125 90,135 87,203 5 11 96,904 87,203 11 ------ ------ ------ ------ ------ ------ ------ Consumer banking: Auto 44,502 42,714 41,549 41,052 39,991 4 11 44,502 39,991 11 Home loan 23,358 24,343 25,227 26,340 27,595 (4) (15) 23,358 27,595 (15) Retail banking 3,555 3,534 3,596 3,598 3,590 1 (1) 3,555 3,590 (1) ----- ----- ----- ----- ----- ----- ----- Total consumer banking 71,415 70,591 70,372 70,990 71,176 1 - 71,415 71,176 - ------ ------ ------ ------ ------ ------ ------ Commercial banking: Commercial and multifamily real estate 26,341 25,559 25,518 23,585 22,886 3 15 26,341 22,886 15 Commercial and industrial 39,313 38,102 37,135 27,873 27,660 3 42 39,313 27,660 42 ------ ------ ------ ------ ------ ------ ------ Total commercial lending 65,654 63,661 62,653 51,458 50,546 3 30 65,654 50,546 30 Small-ticket commercial real estate 548 580 613 654 685 (6) (20) 548 685 (20) --- --- --- --- --- --- --- Total commercial banking 66,202 64,241 63,266 52,112 51,231 3 29 66,202 51,231 29 ------ ------ ------ ------ ------ ------ ------ Other loans 82 82 88 92 95 - (14) 82 95 (14) Total loans held for investment $234,603 $227,613 $229,851 $213,329 $209,705 3 12 $234,603 $209,705 12 ======== ======== ======== ======== ======== ======== ======== Loans Held For Investment (Average) ---------------------------------- Credit card: Domestic credit card $85,981 $85,148 $83,760 $80,402 $75,924 1% 13% $85,564 $75,349 14% International credit card 8,401 7,839 8,127 8,048 7,977 7 5 8,120 7,895 3 ----- ----- ----- ----- ----- ----- ----- Total credit card 94,382 92,987 91,887 88,450 83,901 2 12 93,684 83,244 13 ------ ------ ------ ------ ------ ------ ------ Consumer banking: Auto 43,605 41,962 41,333 40,560 39,546 4 10 42,784 38,970 10 Home loan 23,835 24,781 25,776 26,934 28,251 (4) (16) 24,308 28,869 (16) Retail banking 3,548 3,553 3,595 3,603 3,570 - (1) 3,550 3,565 - ----- ----- ----- ----- ----- ----- ----- Total consumer banking 70,988 70,296 70,704 71,097 71,367 1 (1) 70,642 71,404 (1) ------ ------ ------ ------ ------ ------ ------ Commercial banking: Commercial and multifamily real estate 25,661 25,015 25,613 23,305 22,853 3 12 25,338 22,985 10 Commercial and industrial 38,713 37,762 31,132 27,620 27,414 3 41 38,237 27,303 40 ------ ------ ------ ------ ------ ------ ------ Total commercial lending 64,374 62,777 56,745 50,925 50,267 3 28 63,575 50,288 26 Small-ticket commercial real estate 564 598 634 667 709 (6) (20) 581 735 (21) --- --- --- --- --- --- --- Total commercial banking 64,938 63,375 57,379 51,592 50,976 2 27 64,156 51,023 26 ------ ------ ------ ------ ------ ------ ------ Other loans 71 78 82 88 93 (9) (24) 75 97 (23) Total average loans held for investment $230,379 $226,736 $220,052 $211,227 $206,337 2 12 $228,557 $205,768 11 ======== ======== ======== ======== ======== ======== ======== Net Charge-Off (Recovery) Rates ------------------------------- Credit card: Domestic credit card 4.07% 4.16% 3.75% 3.08% 3.42% (9) bps 65 bps 4.12% 3.49% 63 bps International credit card 3.54 3.24 2.76 1.80 2.65 30 89 3.39 2.73 66 Total credit card 4.02 4.09 3.66 2.96 3.35 (7) 67 4.05 3.42 63 2016 Q2 vs. Six Months Ended June 30, ----------- ------------------------- (Dollars in millions) (unaudited) 2016 2016 2015 2015 2015 2016 2015 2016 2015 2016 vs. Q2 Q1 Q4 Q3 Q2 Q1 Q2 2015 --- --- --- --- --- --- --- --- ---- Consumer banking: Auto 1.20% 1.60% 2.10% 1.85% 1.22% (40) bps (2) bps 1.39% 1.38% 1 bps Home loan 0.09 0.05 0.05 0.01 0.04 4 5 0.07 0.03 4 Retail banking 1.26 1.36 1.43 1.53 1.39 (10) (13) 1.31 1.18 13 Total consumer banking 0.83 1.04 1.32 1.14 0.76 (21) 7 0.93 0.83 10 Commercial banking: Commercial and multifamily real estate (0.02) (0.01) (0.03) (0.15) (0.04) (1) 2 (0.02) (0.03) 1 Commercial and industrial 0.62 0.49 0.07 0.61 0.13 13 49 0.56 0.09 47 Total commercial lending 0.37 0.29 0.02 0.26 0.05 8 32 0.33 0.03 30 Small-ticket commercial real estate 0.33 0.13 0.34 0.50 0.15 20 18 0.23 0.32 (9) Total commercial banking 0.37 0.29 0.03 0.26 0.05 8 32 0.33 0.04 29 Total net charge-offs 2.01 2.08 1.96 1.69 1.64 (7) 37 2.04 1.68 36 --------------------- 30+ Day Performing Delinquency Rates ------------------------------------ Credit card: Domestic credit card 3.14% 3.09% 3.39% 3.28% 2.84% 5 bps 30 bps 3.14% 2.84% 30 bps International credit card 3.24 3.32 2.98 2.81 2.65 (8) 59 3.24 2.65 59 Total credit card 3.15 3.11 3.36 3.24 2.82 4 33 3.15 2.82 33 Consumer banking: Auto 5.59 5.14 6.69 6.10 5.58 45 1 5.59 5.58 1 Home loan 0.14 0.14 0.16 0.18 0.17 - (3) 0.14 0.17 (3) Retail banking 0.62 0.61 0.76 0.62 0.66 1 (4) 0.62 0.66 (4) Total consumer banking 3.56 3.19 4.05 3.62 3.24 37 32 3.56 3.24 32 ---------------------- Nonperforming Loans and Nonperforming Assets Rates(1)(2) ------------------------------------------------------- Credit card: International credit card 0.53% 0.59% 0.65% 0.77% 0.83% (6) bps (30) bps 0.53% 0.83% (30) bps Total credit card 0.05 0.05 0.06 0.07 0.08 - (3) 0.05 0.08 (3) Consumer banking: Auto 0.38 0.31 0.53 0.49 0.40 7 (2) 0.38 0.40 (2) Home loan 1.24 1.26 1.23 1.18 1.13 (2) 11 1.24 1.13 11 Retail banking 0.89 0.83 0.77 0.74 0.79 6 10 0.89 0.79 10 Total consumer banking 0.69 0.66 0.79 0.76 0.70 3 (1) 0.69 0.70 (1) Commercial banking: Commercial and multifamily real estate 0.10 0.12 0.03 0.03 0.12 (2) (2) 0.10 0.12 (2) Commercial and industrial 2.58 2.66 1.45 1.58 1.56 (8) 102 2.58 1.56 102 Total commercial lending 1.59 1.64 0.87 0.87 0.91 (5) 68 1.59 0.91 68 Small-ticket commercial real estate 1.59 1.11 0.83 0.65 0.47 48 112 1.59 0.47 112 Total commercial banking 1.59 1.63 0.87 0.87 0.90 (4) 69 1.59 0.90 69 Total nonperforming loans 0.68 0.69 0.51 0.50 0.50 (1) 18 0.68 0.50 18 Total nonperforming assets 0.80 0.83 0.65 0.64 0.64 (3) 16 0.80 0.64 16
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 8: Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity Three Months Ended June 30, 2016 -------------------------------- Credit Card Consumer Banking ----------- ---------------- (Dollars in millions) (unaudited) Domestic Card International Total Credit Auto Home Retail Total Commercial Card Card Banking Other Total Loan Banking Consumer Banking --- ------- Allowance for loan and lease losses: Balance as of March 31, 2016 $3,440 $345 $3,785 $772 $64 $78 $914 $714 $3 $5,416 Provision (benefit) for loan and lease losses 1,164 97 1,261 191 (1) 14 204 185 (1) 1,649 Charge-offs (1,102) (113) (1,215) (227) (7) (14) (248) (64) (1) (1,528) Recoveries 228 38 266 97 2 3 102 4 1 373 --- --- --- --- --- --- --- --- --- --- Net charge-offs (874) (75) (949) (130) (5) (11) (146) (60) - (1,155) Other changes(3) - (11) (11) - - - - (18) - (29) Balance as of June 30, 2016 3,730 356 4,086 833 58 81 972 821 2 5,881 ----- --- ----- --- --- --- --- --- --- ----- Reserve for unfunded lending commitments: Balance as of March 31, 2016 - - - - - 8 8 218 - 226 Provision (benefit) for losses on unfunded lending commitments - - - - - - - (57) - (57) Balance as of June 30, 2016 - - - - - 8 8 161 - 169 --- --- --- --- --- --- --- --- --- --- Combined allowance and reserve as of June 30, 2016 $3,730 $356 $4,086 $833 $58 $89 $980 $982 $2 $6,050 ====== ==== ====== ==== === === ==== ==== === ====== Six Months Ended June 30, 2016 ------------------------------ Credit Card Consumer Banking ----------- ---------------- (Dollars in millions) (unaudited) Domestic Card International Total Credit Auto Home Retail Total Commercial Card Card Banking Other 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 2,136 196 2,332 405 (4) 32 433 356 (3) 3,118 Charge-offs (2,225) (212) (2,437) (496) (12) (31) (539) (112) (2) (3,090) Recoveries 464 74 538 198 4 8 210 6 3 757 --- --- --- --- --- --- --- --- --- --- Net charge-offs (1,761) (138) (1,899) (298) (8) (23) (329) (106) 1 (2,333) Other changes(3) - (1) (1) - - - - (33) - (34) Balance as of June 30, 2016 3,730 356 4,086 833 58 81 972 821 2 5,881 ----- --- ----- --- --- --- --- --- --- ----- Reserve for unfunded lending commitments: Balance as of December 31, 2015 - - - - - 7 7 161 - 168 Provision (benefit) for losses on unfunded lending commitments - - - - - 1 1 - - 1 Balance as of June 30, 2016 - - - - - 8 8 161 - 169 --- --- --- --- --- --- --- --- --- --- Combined allowance and reserve as of June 30, 2016 $3,730 $356 $4,086 $833 $58 $89 $980 $982 $2 $6,050 ====== ==== ====== ==== === === ==== ==== === ======
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 9: Financial Summary-Business Segment Results Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 -------------------------------- ------------------------------ (Dollars in millions) (unaudited) Total Credit Card Consumer Commercial Other Total Credit Card Consumer Commercial Banking Banking Banking Banking Other -------------------------------- ----- ----------- --------- ----------- ----- ----- ----------- --------- ----------- ----- Net interest income (expense) $5,093 $3,045 $1,439 $559 $50 $10,149 $6,078 $2,859 $1,096 $116 Non-interest income 1,161 859 175 129 (2) 2,325 1,706 366 247 6 --- --- --- --- ----- ----- --- --- --- Total net revenue (loss)(4) 6,254 3,904 1,614 688 48 12,474 7,784 3,225 1,343 122 Provision (benefit) for credit losses 1,592 1,261 204 128 (1) 3,119 2,332 434 356 (3) Non-interest expense 3,295 1,883 1,006 343 63 6,518 3,746 1,996 665 111 ----- ----- --- --- ----- ----- ----- --- --- Income (loss) from continuing operations before income taxes 1,367 760 404 217 (14) 2,837 1,706 795 322 14 Income tax provision (benefit) 424 276 147 79 (78) 876 613 289 117 (143) --- Income (loss) from continuing operations, net of tax $943 $484 $257 $138 $64 $1,961 $1,093 $506 $205 $157 ==== ==== ==== ==== === ====== ====== ==== ==== ==== Three Months Ended March 31, 2016 --------------------------------- (Dollars in millions) (unaudited) Total Credit Card Consumer Commercial Banking Banking Other -------------------------------- ----- ----------- --------- ----------- ----- Net interest income (expense) $5,056 $3,033 $1,420 $537 $66 Non-interest income 1,164 847 191 118 8 --- --- --- --- Total net revenue (loss)(4) 6,220 3,880 1,611 655 74 Provision (benefit) for credit losses 1,527 1,071 230 228 (2) Non-interest expense 3,223 1,863 990 322 48 ----- ----- --- --- --- Income (loss) from continuing operations before income taxes 1,470 946 391 105 28 Income tax provision (benefit) 452 337 142 38 (65) --- Income (loss) from continuing operations, net of tax $1,018 $609 $249 $67 $93 ====== ==== ==== === === Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 -------------------------------- ------------------------------ (Dollars in millions) (unaudited) Total Credit Card Consumer Commercial Other Total Credit Card Consumer Commercial Banking Banking Banking Banking Other -------------------------------- ----- ----------- --------- ----------- ----- ----- ----------- --------- ----------- ----- Net interest income (expense) $4,537 $2,633 $1,444 $466 $(6) $9,113 $5,299 $2,878 $927 $9 Non-interest income 1,135 845 196 123 (29) 2,206 1,661 354 237 (46) ----- --- --- --- --- ----- ----- --- --- --- Total net revenue (loss)(4) 5,672 3,478 1,640 589 (35) 11,319 6,960 3,232 1,164 (37) Provision (benefit) for credit losses 1,129 895 185 49 - 2,064 1,564 391 109 - Non-interest expense 3,307 1,857 998 270 182 6,356 3,633 1,968 542 213 ----- --- --- --- ----- ----- ----- --- --- Income (loss) from continuing operations before income taxes 1,236 726 457 270 (217) 2,899 1,763 873 513 (250) Income tax provision (benefit) 384 263 166 98 (143) 913 632 316 186 (221) --- Income (loss) from continuing operations, net of tax $852 $463 $291 $172 $(74) $1,986 $1,131 $557 $327 $(29) ==== ==== ==== ==== ==== ====== ====== ==== ==== ====
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 10: Financial & Statistical Summary-Credit Card Business 2016 Q2 vs. Six Months Ended June 30, ----------- ------------------------- 2016 2016 2015 2015 2015 2016 2015 2016 vs. (Dollars in millions) (unaudited) Q2 Q1 Q4 Q3 Q2 Q1 Q2 2016 2015 2015 -------------------------------- --- --- --- --- --- --- --- ---- ---- ---- Credit Card(5) ------------- Earnings: Net interest income $3,045 $3,033 $2,996 $2,866 $2,633 - 16% $6,078 $5,299 15% Non-interest income 859 847 902 858 845 1% 2 1,706 1,661 3 --- --- --- --- --- ----- ----- Total net revenue (loss) 3,904 3,880 3,898 3,724 3,478 1 12 7,784 6,960 12 Provision (benefit) for credit losses 1,261 1,071 1,022 831 895 18 41 2,332 1,564 49 Non-interest expense 1,883 1,863 2,021 1,848 1,857 1 1 3,746 3,633 3 ----- ----- ----- ----- ----- ----- ----- Income (loss) from continuing operations before income taxes 760 946 855 1,045 726 (20) 5 1,706 1,763 (3) Income tax provision (benefit) 276 337 302 375 263 (18) 5 613 632 (3) --- Income (loss) from continuing operations, net of tax $484 $609 $553 $670 $463 (21) 5 $1,093 $1,131 (3) ==== ==== ==== ==== ==== ====== ====== Selected performance metrics: Period-end loans held for investment $96,904 $92,699 $96,125 $90,135 $87,203 5% 11% $96,904 $87,203 11% Average loans held for investment 94,382 92,987 91,887 88,450 83,901 2 12 93,684 83,244 13 Average yield on loans held for investment(6) 14.49% 14.60% 14.45% 14.39% 13.98% (11) bps 51 bps 14.55% 14.14% 41 bps Total net revenue margin(7) 16.55 16.69 16.97 16.84 16.58 (14) (3) 16.62 16.72 (10) Net charge-off rate 4.02 4.09 3.66 2.96 3.35 (7) 67 4.05 3.42 63 30+ day performing delinquency rate 3.15 3.11 3.36 3.24 2.82 4 33 3.15 2.82 33 30+ day delinquency rate 3.18 3.15 3.40 3.29 2.88 3 30 3.18 2.88 30 Nonperforming loan rate(1) 0.05 0.05 0.06 0.07 0.08 - (3) 0.05 0.08 (3) PCCR intangible amortization $67 $70 $74 $78 $80 (4)% (16)% $137 $164 (16)% Purchase volume(8) 78,019 68,189 75,350 69,875 68,559 14 14 146,208 125,942 16 2016 Q2 vs. Six Months Ended June 30, ----------- ------------------------- 2016 2016 2015 2015 2015 2016 2015 2016 vs. (Dollars in millions) (unaudited) Q2 Q1 Q4 Q3 Q2 Q1 Q2 2016 2015 2015 -------------------------------- --- --- --- --- --- --- --- ---- ---- ---- Domestic Card ------------- Earnings: Net interest income $2,769 $2,756 $2,718 $2,613 $2,395 - 16% $5,525 $4,816 15% Non-interest income 792 774 830 814 796 2% (1) 1,566 1,539 2 ----- ----- Total net revenue (loss) 3,561 3,530 3,548 3,427 3,191 1 12 7,091 6,355 12 Provision (benefit) for credit losses 1,164 972 945 796 853 20 36 2,136 1,463 46 Non-interest expense 1,669 1,671 1,796 1,630 1,621 - 3 3,340 3,201 4 ----- ----- Income (loss) from continuing operations before income taxes 728 887 807 1,001 717 (18) 2 1,615 1,691 (4) Income tax provision (benefit) 265 323 293 362 259 (18) 2 588 612 (4) Income (loss) from continuing operations, net of tax $463 $564 $514 $639 $458 (18) 1 $1,027 $1,079 (5) ==== ==== ==== ==== ==== ====== ====== Selected performance metrics: Period-end loans held for investment $88,581 $84,561 $87,939 $82,178 $78,984 5% 12% $88,581 $78,984 12% Average loans held for investment 85,981 85,148 83,760 80,402 75,924 1 13 85,564 75,349 14 Average yield on loans held for investment(6) 14.40% 14.43% 14.31% 14.35% 13.95% (3) bps 45 bps 14.41% 14.09% 32 bps Total net revenue margin(7) 16.57 16.58 16.95 17.05 16.81 (1) (24) 16.58 16.87 (29) Net charge-off rate 4.07 4.16 3.75 3.08 3.42 (9) 65 4.12 3.49 63 30+ day delinquency rate 3.14 3.09 3.39 3.28 2.84 5 30 3.14 2.84 30 Purchase volume(8) $71,050 $62,617 $68,740 $63,777 $62,198 13% 14% $133,667 $114,223 17% ----------------- International Card(5) -------------------- Earnings: Net interest income $276 $277 $278 $253 $238 - 16% $553 $483 14% Non-interest income 67 73 72 44 49 (8)% 37 140 122 15 --- --- Total net revenue (loss) 343 350 350 297 287 (2) 20 693 605 15 Provision (benefit) for credit losses 97 99 77 35 42 (2) 131 196 101 94 Non-interest expense 214 192 225 218 236 11 (9) 406 432 (6) --- --- --- --- --- --- --- Income (loss) from continuing operations before income taxes 32 59 48 44 9 (46) ** 91 72 26 Income tax provision (benefit) 11 14 9 13 4 (21) 175 25 20 25 --- Income (loss) from continuing operations, net of tax $21 $45 $39 $31 $5 (53) ** $66 $52 27 === === === === === === === Selected performance metrics: Period-end loans held for investment $8,323 $8,138 $8,186 $7,957 $8,219 2% 1% $8,323 $8,219 1% Average loans held for investment 8,401 7,839 8,127 8,048 7,977 7 5 8,120 7,895 3 Average yield on loans held for investment(6) 15.45% 16.47% 15.96% 14.88% 14.29% (102) bps 116 bps 15.94% 14.60% 134 bps Total net revenue margin(7) 16.32 17.85 17.21 14.77 14.36 (153) 196 17.06 15.33 173 Net charge-off rate 3.54 3.24 2.76 1.80 2.65 30 89 3.39 2.73 66 30+ day performing delinquency rate 3.24 3.32 2.98 2.81 2.65 (8) 59 3.24 2.65 59 30+ day delinquency rate 3.65 3.76 3.46 3.39 3.29 (11) 36 3.65 3.29 36 Nonperforming loan rate(1) 0.53 0.59 0.65 0.77 0.83 (6) (30) 0.53 0.83 (30) Purchase volume(8) $6,969 $5,572 $6,610 $6,098 $6,361 25% 10% $12,541 $11,719 7%
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 11: Financial & Statistical Summary-Consumer Banking Business 2016 Q2 vs. Six Months Ended June 30, ----------- ------------------------- 2016 2016 2015 2015 2015 2016 2015 2016 vs. (Dollars in millions) (unaudited) Q2 Q1 Q4 Q3 Q2 Q1 Q2 2016 2015 2015 -------------------------------- --- --- --- --- --- --- --- ---- ---- ---- Consumer Banking ---------------- Earnings: Net interest income $1,439 $1,420 $1,434 $1,443 $1,444 1% - $2,859 $2,878 (1)% Non-interest income 175 191 182 174 196 (8) (11)% 366 354 3 --- --- --- --- --- --- --- Total net revenue (loss) 1,614 1,611 1,616 1,617 1,640 - (2) 3,225 3,232 - Provision (benefit) for credit losses 204 230 240 188 185 (11) 10 434 391 11 Non-interest expense 1,006 990 1,057 1,001 998 2 1 1,996 1,968 1 ----- --- ----- ----- --- ----- ----- Income (loss) from continuing operations before income taxes 404 391 319 428 457 3 (12) 795 873 (9) Income tax provision (benefit) 147 142 115 155 166 4 (11) 289 316 (9) --- --- --- --- --- --- --- Income (loss) from continuing operations, net of tax $257 $249 $204 $273 $291 3 (12) $506 $557 (9) ==== ==== ==== ==== ==== ==== ==== Selected performance metrics: Period-end loans held for investment $71,415 $70,591 $70,372 $70,990 $71,176 1% - $71,415 $71,176 - Average loans held for investment 70,988 70,296 70,704 71,097 71,367 1 (1)% 70,642 71,404 (1)% Average yield on loans held for investment(6) 6.28% 6.18% 6.25% 6.25% 6.27% 10 bps 1 bps 6.23% 6.27% (4) bps Auto loan originations $6,529 $5,844 $4,977 $5,590 $5,433 12% 20% $12,373 $10,618 17% Period-end deposits 176,340 177,803 172,702 170,866 170,321 (1) 4 176,340 170,321 4 Average deposits 176,808 174,254 171,521 170,816 171,076 1 3 175,531 170,339 3 Average deposit interest rate 0.55% 0.54% 0.54% 0.56% 0.57% 1 bps (2) bps 0.54% 0.57% (3) bps Net charge-off rate 0.83 1.04 1.32 1.14 0.76 (21) 7 0.93 0.83 10 30+ day performing delinquency rate 3.56 3.19 4.05 3.62 3.24 37 32 3.56 3.24 32 30+ day delinquency rate 4.07 3.67 4.67 4.22 3.80 40 27 4.07 3.80 27 Nonperforming loan rate(1) 0.69 0.66 0.79 0.76 0.70 3 (1) 0.69 0.70 (1) Nonperforming asset rate(2) 0.96 0.95 1.10 1.05 0.98 1 (2) 0.96 0.98 (2)
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 12: Financial & Statistical Summary-Commercial Banking Business 2016 Q2 vs. Six Months Ended June 30, ----------- ------------------------- 2016 2016 2015 2015 2015 2016 2015 2016 vs. (Dollars in millions) (unaudited) Q2 Q1 Q4 Q3 Q2 Q1 Q2 2016 2015 2015 -------------------------------- --- --- --- --- --- --- --- ---- ---- ---- Commercial Banking ------------------ Earnings: Net interest income $559 $537 $484 $454 $466 4% 20% $1,096 $927 18% Non-interest income 129 118 142 108 123 9 5 247 237 4 --- --- --- --- --- --- --- Total net revenue (loss)(4) 688 655 626 562 589 5 17 1,343 1,164 15 Provision (benefit) for credit losses 128 228 118 75 49 (44) 161 356 109 ** Non-interest expense 343 322 342 272 270 7 27 665 542 23 --- --- --- --- --- Income (loss) from continuing operations before income taxes 217 105 166 215 270 107 (20) 322 513 (37) Income tax provision (benefit) 79 38 60 78 98 108 (19) 117 186 (37) Income (loss) from continuing operations, net of tax $138 $67 $106 $137 $172 106 (20) $205 $327 (37) ==== === ==== ==== ==== ==== ==== Selected performance metrics: Period-end loans held for investment $66,202 $64,241 $63,266 $52,112 $51,231 3% 29% $66,202 $51,231 29% Average loans held for investment 64,938 63,375 57,379 51,592 50,976 2 27 64,156 51,023 26 Average yield on loans held for investment(4)(6) 3.45% 3.38% 3.18% 3.21% 3.26% 7 bps 19 bps 3.42% 3.24% 18 bps Period-end deposits $34,281 $33,383 $34,257 $32,751 $32,909 3% 4% $34,281 $32,909 4% Average deposits 33,764 34,076 33,797 32,806 32,778 (1) 3 33,920 32,811 3 Average deposit interest rate 0.27% 0.27% 0.26% 0.25% 0.25% - 2 bps 0.27% 0.24% 3 bps Net charge-off rate 0.37 0.29 0.03 0.26 0.05 8 bps 32 0.33 0.04 29 Nonperforming loan rate(1)(9) 1.59 1.63 0.87 0.87 0.90 (4) 69 1.59 0.90 69 Nonperforming asset rate(2)(9) 1.60 1.64 0.87 0.87 0.91 (4) 69 1.60 0.91 69 Risk category:(9)(10) Noncriticized $61,926 $59,663 $59,743 $49,803 $48,847 4% 27% $61,926 $48,847 27% Criticized performing 2,456 2,595 2,015 1,725 1,767 (5) 39 2,456 1,767 39 Criticized nonperforming 1,050 1,050 550 453 463 - 127 1,050 463 127 PCI loans(9) 770 933 958 131 154 (17) ** 770 154 ** --- --- Total commercial loans $66,202 $64,241 $63,266 $52,112 $51,231 3 29 $66,202 $51,231 29 ======= ======= ======= ======= ======= ======= ======= Risk category as a percentage of period-end loans held for investment:(9)(10) Noncriticized 93.5% 92.9% 94.4% 95.6% 95.4% 60 bps (190) bps 93.5% 95.4% (190) bps Criticized performing 3.7 4.0 3.2 3.3 3.4 (30) 30 3.7 3.4 30 Criticized nonperforming 1.6 1.6 0.9 0.9 0.9 - 70 1.6 0.9 70 PCI loans(9) 1.2 1.5 1.5 0.2 0.3 (30) 90 1.2 0.3 90 --- --- 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 Q2 vs. Six Months Ended June 30, ----------- ------------------------- 2016 2016 2015 2015 2015 2016 2015 2016 vs. (Dollars in millions) (unaudited) Q2 Q1 Q4 Q3 Q2 Q1 Q2 2016 2015 2015 --- --- --- --- --- --- --- ---- ---- ---- Other ----- Earnings: Net interest income (expense) $50 $66 $47 $(3) $(6) (24)% ** $116 $9 ** Non-interest income (2) 8 7 - (29) ** (93)% 6 (46) ** --- --- --- --- --- --- --- Total net revenue (loss)(4) 48 74 54 (3) (35) (35) ** 122 (37) ** Provision (benefit) for credit losses (1) (2) - (2) - (50) ** (3) - ** Non-interest expense(11) 63 48 60 39 182 31 (65) 111 213 (48)% --- --- --- --- --- --- --- Income (loss) from continuing operations before income taxes (14) 28 (6) (40) (217) ** (94) 14 (250) ** Income tax provision (benefit) (78) (65) (51) (78) (143) 20 (45) (143) (221) (35) --- --- --- --- ---- ---- ---- Income (loss) from continuing operations, net of tax $64 $93 $45 $38 $(74) (31) ** $157 $(29) ** === === === === ==== ==== ==== Selected performance metrics: Period-end loans held for investment $82 $82 $88 $92 $95 - (14)% $82 $95 (14)% Average loans held for investment 71 78 82 88 93 (9)% (24) 75 97 (23) Period-end deposits 10,438 10,593 10,762 9,286 5,550 (1) 88 10,438 5,550 88 Average deposits 10,574 10,850 10,581 7,352 5,289 (3) 100 10,712 5,351 100 Total ----- Earnings: Net interest income $5,093 $5,056 $4,961 $4,760 $4,537 1% 12% $10,149 $9,113 11% Non-interest income 1,161 1,164 1,233 1,140 1,135 - 2 2,325 2,206 5 ----- ----- ----- ----- ----- ----- ----- Total net revenue (loss) 6,254 6,220 6,194 5,900 5,672 1 10 12,474 11,319 10 Provision (benefit) for credit losses 1,592 1,527 1,380 1,092 1,129 4 41 3,119 2,064 51 Non-interest expense 3,295 3,223 3,480 3,160 3,307 2 - 6,518 6,356 3 ----- ----- ----- ----- ----- ----- ----- Income (loss) from continuing operations before income taxes 1,367 1,470 1,334 1,648 1,236 (7) 11 2,837 2,899 (2) Income tax provision (benefit) 424 452 426 530 384 (6) 10 876 913 (4) --- --- --- --- --- --- --- Income (loss) from continuing operations, net of tax $943 $1,018 $908 $1,118 $852 (7) 11 $1,961 $1,986 (1) ==== ====== ==== ====== ==== ====== ====== Selected performance metrics: Period-end loans held for investment $234,603 $227,613 $229,851 $213,329 $209,705 3% 12% $234,603 $209,705 12% Average loans held for investment 230,379 226,736 220,052 211,227 206,337 2 12 228,557 205,768 11 Period-end deposits 221,059 221,779 217,721 212,903 208,780 - 6 221,059 208,780 6 Average deposits 221,146 219,180 215,899 210,974 209,143 1 6 220,163 208,501 6
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7-13) (1) The nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category. (2) Nonperforming assets consist of nonperforming loans, real estate owned ("REO") and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, REO and other foreclosed assets. Calculation of nonperforming asset rates for our Consumer Banking and Commercial Banking businesses do not include the impact of acquired REOs. (3) Represents foreign currency translation adjustments and the net impact of loan transfers and sales. (4) 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. (5) Includes a build in our U.K. PPI Reserve in Q2 2016, Q3 2015 and Q2 2015, which impacted both total net revenue and non-interest expense within our International Card business. (6) 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) 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) The loans held for investment acquired in the HFS acquisition included $667 million, $825 million and $835 million of PCI loans as of 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 2015 (Dollars in millions) (unaudited) Q2 Q1 Q4 -------------------------------- --- --- --- Selected performance metrics Nonperforming loan rate 1.63% 1.69% 0.93% Nonperforming asset rate 1.64 1.70 0.93 Risk category: Noncriticized $62,058 $59,729 $59,743 Criticized performing 2,961 3,321 2,814 Criticized nonperforming 1,080 1,083 586 Risk category as a percentage of period- end loans held for investment: Noncriticized 93.7% 93.0% 94.4% Criticized performing 4.5 5.2 4.5 Criticized nonperforming 1.6 1.7 0.9
(10) Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities. (11) Includes restructuring charges for employee severance and related benefits pursuant to our ongoing benefit programs. ** Not meaningful.
CAPITAL ONE FINANCIAL CORPORATION (COF) Table 15: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures(1) Basel III Standardized Approach ------------------------------- (Dollars in millions) (unaudited) June 30, March 31, December 31, September 30, June 30, 2016 2016 2015 2015 2015 --- ---- ---- ---- ---- ---- Regulatory Capital Metrics -------------------------- Common equity Tier 1 capital $29,486 $29,231 $29,544 $30,109 $29,804 Tier 1 capital 32,780 32,525 32,838 33,402 32,614 Total capital(2) 38,768 38,399 38,838 37,694 37,115 Risk-weighted assets 269,710 262,368 265,739 249,081 246,106 Average assets for the leverage ratio 319,969 317,403 309,037 300,010 293,291 ------------------------------------- Capital Ratios -------------- Common equity Tier 1 capital(3) 10.9% 11.1% 11.1% 12.1% 12.1% Tier 1 capital(4) 12.2 12.4 12.4 13.4 13.3 Total capital(5) 14.4 14.6 14.6 15.1 15.1 Tier 1 leverage(6) 10.2 10.2 10.6 11.1 11.1 Tangible common equity ("TCE")(7) 9.0 9.1 8.9 9.8 9.7 Reconciliation of Non-GAAP Measures We report certain non-GAAP measures that management uses in assessing its capital adequacy and the level of return generated. These non-GAAP measures consist of tangible common equity ("TCE"), tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. These metrics are considered key financial performance measures for the Company. The tables below provide the details of the calculation of our non-GAAP measures and regulatory capital. While our non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies. 2016 2016 2015 2015 2015 (Dollars in millions) (unaudited) Q2 Q1 Q4 Q3 Q2 --- --- --- --- --- Tangible Common Equity (Period End) ---------------------------------- Stockholders' equity $48,108 $47,707 $47,284 $47,685 $46,659 Goodwill and intangible assets(8) (15,553) (15,629) (15,701) (15,153) (15,240) Noncumulative perpetual preferred stock(9) (3,294) (3,296) (3,294) (3,294) (2,810) ------ ------ Tangible common equity $29,261 $28,782 $28,289 $29,238 $28,609 ======= ======= ======= ======= ======= Tangible Common Equity (Average) ------------------------------- Average stockholders' equity $48,934 $49,078 $48,712 $48,456 $47,255 Average goodwill and intangible assets(8) (15,585) (15,654) (15,316) (15,183) (15,256) Average noncumulative perpetual preferred stock(9) (3,294) (3,296) (3,294) (3,049) (2,377) Average tangible common equity $30,055 $30,128 $30,102 $30,224 $29,622 ======= ======= ======= ======= ======= 2016 2016 2015 2015 2015 (Dollars in millions) (unaudited) Q2 Q1 Q4 Q3 Q2 -------------------------------- --- --- --- --- --- Tangible Assets (Period End) --------------------------- Total assets $339,117 $330,346 $334,048 $313,700 $310,510 Goodwill and intangible assets(8) (15,553) (15,629) (15,701) (15,153) (15,240) ------- Tangible assets $323,564 $314,717 $318,347 $298,547 $295,270 ======== ======== ======== ======== ======== Tangible Assets (Average) ------------------------ Average total assets $334,479 $331,919 $323,354 $313,822 $307,206 Average goodwill and intangible assets(8) (15,585) (15,654) (15,316) (15,183) (15,256) ------- Average tangible assets $318,894 $316,265 $308,038 $298,639 $291,950 ======== ======== ======== ======== ======== Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach (Dollars in millions) (unaudited) June 30, March 31, December 31, September 30, June 30, 2016 2016 2015 2015 2015 --- ---- ---- ---- ---- ---- Common equity excluding AOCI $44,572 $44,452 $44,606 $44,533 $44,246 Adjustments: AOCI(10)(11) 332 117 (254) 75 (128) Goodwill(8) (14,296) (14,301) (14,296) (13,805) (13,809) Intangible assets(8)(11) (483) (532) (393) (374) (413) Other (639) (505) (119) (320) (92) Common equity Tier 1 capital $29,486 $29,231 $29,544 $30,109 $29,804 ======= ======= ======= ======= ======= Risk-weighted assets $269,710 $262,368 $265,739 $249,081 $246,106 Common equity Tier 1 capital ratio(3) 10.9% 11.1% 11.1% 12.1% 12.1%
__________ (1) Regulatory capital metrics and capital ratios as of June 30, 2016 are preliminary and therefore subject to change. (2) Total capital equals the sum of Tier 1 capital and Tier 2 capital. (3) Common equity Tier 1 capital ratio is a regulatory measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets. (4) Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk- weighted assets. (5) Total capital ratio is a regulatory capital measure calculated based on Total capital divided by risk- weighted assets. (6) Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments. (7) TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. (8) Includes impact of related deferred taxes. (9) Includes related surplus. (10) Amounts presented are net of tax. (11) Amounts based on transition provisions for regulatory capital deductions and adjustments of 40% for 2015 and 60% for 2016.
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SOURCE Capital One Financial Corporation