Capital One Financial Corporation · NYSE:COF

Capital One Financial — Q1 2017 Earnings Presentation

16 slides from Capital One Financial's earnings presentation, Apr 25, 2017

  1. Slide 1: First Quarter 2017 Results

    First Quarter 2017 Results April 25, 2017 1

  2. 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

  3. Slide 3: Company Highlights

    Company Highlights • Net income for the first quarter of 2017 of $810 million, or $1.54 per diluted common share. ◦ Excluding adjusting items, net income per diluted common share was $1.75(1). • Pre-provision earnings increased 7% to $3.1 billion for the first quarter of 2017(2). • Efficiency ratio

  4. 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 6.85% 6.88% 6.75% 6.73% 6.79% $5,447 $5,474 $5,277 $5,056 $5,093 1Q16 2Q16 3Q16 4Q16 1Q17 First Quarter 2017 Highlights • Net interest margin increased 3 basis points q

  5. Slide 5: Capital and Liquidity

    Capital and Liquidity Ending Common Shares Outstanding (M) Common Equity Tier 1 Capital Ratio 6% Y/Y Decrease 514.5 505.9 11.1% 10.9% 489.2 10.6% 10.4% 10.1% 480.2 482.8 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 First Quarter 2017 Highlights • Common equity Tier 1 capital ratio under Basel I

  6. Slide 6: Credit Quality

    Credit Quality Provision ($M) Net Charge-Offs ($M) $1,992 $1,752 $1,592 $1,588 $1,527 $1,489 $1,510 $1,240 $1,178 $1,155 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 First Quarter 2017 Highlights • Net charge-off rate of 2.50%. • Allowance increased to $7.0 billion. • Allowance as a percentage

  7. Slide 7: Financial Summary—Business Segment Results

    Financial Summary—Business Segment Results Three Months Ended March 31, 2017 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income $ 3,346 $ 1,517 $ 566 $ 45 $ 5,474 Non-interest income 738 195 158 (30) 1,061 Total net revenue 4,084 1,712 724 15 6,535

  8. Slide 8: Credit Card

    Credit Card 2017 Q1 vs. First Quarter 2017 Highlights 2017 2016 2016 2016 2016 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans up $6.5 billion, or 7%, year- over-year; average loans up $8.2 billion, or Net interest income $ 3,346 $ 3,353 $ 3,033 — 10% 9%, year-over-yea

  9. Slide 9: Domestic Card

    Domestic Card 2017 Q1 vs. First Quarter 2017 Highlights 2017 2016 2016 2016 2016 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans up $6.5 billion, or 8%, year- over-year; average loans up $7.9 billion, or Net interest income $ 3,093 $ 3,090 $ 2,756 — 12% 9%, year-over-y

  10. Slide 10: Consumer Banking

    Consumer Banking 2017 Q1 vs. First Quarter 2017 Highlights 2017 2016 2016 2016 2016 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans up $3.4 billion, or 5%, year- Net interest income $ 1,517 $ 1,498 $ 1,420 1% 7% over-year; average loans up $3.0 billion, or 4%, year-ove

  11. Slide 11: Commercial Banking

    Commercial Banking 2017 Q1 vs. First Quarter 2017 Highlights 2017 2016 2016 2016 2016 (Dollars in millions, except as noted) Q1 Q4 Q1 Q4 Q1 Earnings: • Ending loans up $3.1 billion, or 5%, year- Net interest income $ 566 $ 565 $ 537 — 5% over-year. Non-interest income 158 175 118 (10)% 34 • Average

  12. Slide 12: Appendix

    Appendix 12

  13. Slide 13: Non-GAAP Measures

    Non-GAAP Measures 2017 2016 2016 2016 Year Ended December 31, Q1 Q4 Q3 Q2 2016 (Dollars in millions, except per share data Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted (1) (1) (1) (1) and as noted) Results Adj. Results Results Adj. Results Results Adj. Re

  14. Slide 14: Credit Score Distribution

    Credit Score Distribution March 31, December 31, September 30, June 30, March 31, (Percentage of portfolio) 2017 2016 2016 2016 2016 Domestic credit card—Refreshed FICO scores:(1) Greater than 660 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63% 64% 64% 6

  15. Slide 15: Commercial Oil and Gas Portfolio

    Commercial Oil and Gas Portfolio 2017 2016 2016 2016 2016 (Dollars in millions, except as noted) Q1 Q4 Q3 Q2 Q1 Commercial oil and gas portfolio: Loans held for investment:(1) Exploration and production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  16. Slide 16: Commercial Taxi Medallion Lending Portfolio

    Commercial Taxi Medallion Lending Portfolio 2017 2016 2016 2016 2016 (Dollars in millions, except as noted) Q1 Q4 Q3 Q2 Q1 Commercial taxi medallion lending portfolio: Total loans held for investment(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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