Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q3 2017 Earnings Presentation
18 slides from Capital One Financial's earnings presentation, Oct 24, 2017
Slide 1: Third Quarter 2017 Results
Third Quarter 2017 Results October 24, 2017 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Please note that the following materials containing information regarding Capital One’s financial performance speak only as of the particular date or dates indicated in these materials. Capital One does not undertake any obligation to update or revise any of the informatio
Slide 3: Company Highlights
Company Highlights • Net income for the third quarter of 2017 of $1.1 billion, or $2.14 per diluted common share. ◦ Excluding adjusting items, net income per diluted common share was $2.42(1). • Pre-provision earnings increased 4% to $3.4 billion for the third quarter of 2017(2). • Efficiency ratio
Slide 4: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Net Interest Income ($M) and Net Interest Margin 8% Y/Y Increase in Net Interest Income 7.08% 6.85% 6.88% 6.88% 6.79% $5,700 $5,447 $5,474 $5,473 $5,277 3Q16 4Q16 1Q17 2Q17 3Q17 Third Quarter 2017 Highlights • Net interest margin increased 20 basis points
Slide 5: Capital and Liquidity
Capital and Liquidity Ending Common Shares Outstanding (M) Common Equity Tier 1 Capital Ratio 1% Y/Y Decrease 10.6% 10.4% 10.7% 10.7% 489.2 10.1% 482.8 483.7 484.4 480.2 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 Third Quarter 2017 Highlights • Common equity Tier 1 capital ratio under Basel I
Slide 6: Credit Quality
Credit Quality Provision ($M) Net Charge-Offs ($M) $1,992 $1,800 $1,833 $1,752 $1,618 $1,606 $1,588 $1,489 $1,510 $1,240 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 Third Quarter 2017 Highlights • Net charge-off rate of 2.61%. • Allowance for loan and lease losses increased to $7.4 billion. •
Slide 7: Financial Summary—Business Segment Results
Financial Summary—Business Segment Results Three Months Ended September 30, 2017 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income $ 3,440 $ 1,649 $ 560 $ 51 $ 5,700 Non-interest income 865 192 179 49 1,285 Total net revenue 4,305 1,841 739 100 6,9
Slide 8: Credit Card
Credit Card 2017 Q3 vs. Third Quarter 2017 Highlights 2017 2017 2016 2017 2016 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans up $9.9 billion, or 10%, year- over-year; average loans up $4.5 billion, or Net interest income $ 3,440 $ 3,294 $ 3,204 4% 7% 5%, year-over-ye
Slide 9: Domestic Card
Domestic Card 2017 Q3 vs. Third Quarter 2017 Highlights 2017 2017 2016 2017 2016 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans up $9.0 billion, or 10%, year- over-year; average loans up $4.0 billion, or Net interest income $ 3,132 $ 3,011 $ 2,956 4% 6% 4%, year-over-
Slide 10: Consumer Banking
Consumer Banking 2017 Q3 vs. Third Quarter 2017 Highlights 2017 2017 2016 2017 2016 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans up $3.3 billion, or 5%, year- Net interest income $ 1,649 $ 1,578 $ 1,472 4% 12% over-year; average loans up $3.6 billion, or 5%, year-ov
Slide 11: Commercial Banking
Commercial Banking 2017 Q3 vs. Third Quarter 2017 Highlights 2017 2017 2016 2017 2016 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans up $1.2 billion, or 2%, year- Net interest income $ 560 $ 569 $ 555 (2)% 1% over-year; average loans up $1.8 billion, or 3%, year-over-
Slide 12: Appendix
Appendix 12
Slide 13: Non-GAAP Measures
Non-GAAP Measures 2017 2017 2017 Nine Months Ended Q3 Q2 Q1 September 30, 2017 Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted (Dollars in millions, except per share data and as noted) Results Adj.(1) Results Results Adj.(1) Results Results Adj.(1) Results Results Adj.(1) Res
Slide 14: Non-GAAP Measures
Non-GAAP Measures 2016 2016 Year Ended Q4 Q3 December 31, 2016 Reported Adjusted Reported Adjusted Reported Adjusted (Dollars in millions, except per share data and as noted) Results Adj.(1) Results Results Adj.(1) Results Results Adj.(1) Results Selected income statement data: Net interest income .
Slide 15: Credit Score Distribution
Credit Score Distribution September 30, June 30, March 31, December 31, September 30, (Percentage of portfolio) 2017 2017 2017 2016 2016 Domestic credit card—Refreshed FICO scores:(1) Greater than 660 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65% 64% 6
Slide 16: Commercial Oil and Gas Portfolio
Commercial Oil and Gas Portfolio 2017 2017 2017 2016 2016 (Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Commercial oil and gas portfolio: Loans held for investment:(1) Exploration and production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 17: Commercial Taxi Medallion Lending Portfolio
Commercial Taxi Medallion Lending Portfolio 2017 2017 2017 2016 2016 (Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Commercial taxi medallion lending portfolio: Total loans held for investment(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 18: Hurricane-Related Impacts
Hurricane-Related Impacts Pre-Tax Impact (Dollars in millions) Q3 2017 Net interest income $ 14 Non-interest income 2 Allowance for loan and lease losses build: Domestic card 35 Auto 23 Commercial banking 9 Other 4 Total allowance for loan and lease losses build 71 Net charge-offs 9 Non-interest exp
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