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 Capital One Reports Fourth Quarter 2016 Net Income of $791 million, or $1.45 per share
   Tuesday, January 24, 2017 4:05:00 PM ET

Capital One Financial Corporation (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-TaxDiluted 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/Expense(1)  Yield/Rate(1)  Average Balance Interest Income/Expense(1)  Yield/Rate(1)  Average Balance Interest Income/Expense(1)  Yield/Rate(1)
(Dollars in millions)
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/Expense(1)  Yield/Rate(1)  Average Balance Interest Income/Expense(1)  Yield/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            2015            2016 vs.
                                                                Q4               Q3             Q2              Q1              Q4          Q3         Q4                                        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 Card  Total Credit Card  Auto      Home    Retail  Total       Commercial 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 Card  Total Credit Card  Auto      Home    Retail  Total       Commercial 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 Banking  Commercial Banking  Other     Total      Credit Card  Consumer Banking  Commercial Banking  Other    Total
Net interest income                                           $   3,353   $     1,498       $      565          $  31     $  5,447   $   12,635   $     5,829       $      2,216        $  193   $   20,873
Non-interest income                                           849         166               175                 (71)      1,119      3,380        733               578                 (63)     4,628
Total net revenue(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 Banking  Commercial 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 Banking  Commercial Banking  Other     Total      Credit Card  Consumer Banking  Commercial 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

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