Capital One Reports First Quarter 2017 Net Income of $810 million, or $1.54 per share

MCLEAN, Va., April 25, 2017

"In the first quarter, we continued to deliver resilient growth," said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer.  "As banking is being revolutionized by digital, we are investing to lead the transformation and drive growth opportunities.  We are improving efficiency.  And we are building an enduring customer franchise.  We remain well positioned to deliver attractive growth and returns, as well as significant capital distribution, subject to regulatory approval."

All comparisons below are for the first quarter of 2017 compared with the fourth quarter of 2016 unless otherwise noted.

First Quarter 2017 Income Statement Summary:

• Total net revenue remained flat at $6.5 billion.
• Total non-interest expense decreased 7 percent to $3.4 billion:
• 31 percent decrease in marketing.
• 1 percent decrease in operating expenses.
• Pre-provision earnings increased 7 percent to $3.1 billion⁽²⁾.
• Provision for credit losses increased 14 percent to $2.0 billion:
• Net charge-offs of $1.5 billion.
• $482 million reserve build.
• Net interest margin of 6.88 percent, up 3 basis points.
• Efficiency ratio of 52.55 percent:
• Efficiency ratio excluding the U.K. PPI Reserve build of $99 million was 51.55 percent⁽¹⁾.

First Quarter 2017 Balance Sheet Summary:

• Common equity Tier 1 capital ratio under Basel III Standardized Approach of 10.4 percent at March 31, 2017.
• Period-end loans held for investment in the quarter decreased $5.0 billion, or 2 percent, to $240.6 billion.
• Domestic Card period-end loans decreased $6.0 billion, or 6 percent, to $91.1 billion.
• Consumer Banking period-end loans increased $928 million, or 1 percent, to $74.0 billion:
• Auto period-end loans increased $1.9 billion, or 4 percent, to $49.8 billion.
• Home loans period-end loans decreased $846 million, or 4 percent, to $20.7 billion, driven by run-off of acquired portfolios.
• Commercial Banking period-end loans increased $404 million, or 1 percent, to $67.3 billion.
• Average loans held for investment in the quarter increased $1.5 billion, or less than 1 percent, to $241.5 billion.
• Domestic Card average loans increased $411 million, or less than 1 percent, to $93.0 billion.
• Consumer Banking average loans increased $672 million, or 1 percent, to $73.3 billion:
• Auto average loans increased $1.5 billion, or 3 percent, to $48.7 billion.
• Home loans average loans decreased $835 million, or 4 percent, to $21.1 billion, driven by run-off of acquired portfolios.
• Commercial Banking average loans increased $423 million, or 1 percent, to $66.9 billion.
• Period-end total deposits increased $4.4 billion, or 2 percent, to $241.2 billion, while average deposits increased $6.3 billion, or 3 percent, to $238.6 billion.
• Interest-bearing deposits rate paid increased 2 basis points to 0.66 percent.

⁽¹⁾ Amounts excluding adjusting items are non-GAAP measures that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance. See Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to these non-GAAP measures.