Exhibit

EX-99.2 3 q12019earningsrelease-ex992.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement⁽¹⁾⁽²⁾

First Quarter2019

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	5
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	7
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	8
	Table 7:	Loan Information and Performance Statistics	9
	Table 8:	Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity	11
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	12
	Table 10:	Financial & Statistical Summary—Credit Card Business	13
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	15
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	16
	Table 13:	Financial & Statistical Summary—Other and Total	17
Other
	Table 14:	Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)	18
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	19

__________


⁽¹⁾	The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended March 31, 2019 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 generally accepted accounting principles 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



																2019 Q1 vs.
(Dollars in millions, except per share data and as noted)	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions, except per share data and as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Income Statement
Net interest income	$	5,791		$	5,820		$	5,786		$	5,551		$	5,718		—		1	%
Non-interest income	1,292			1,193			1,176			1,641			1,191			8	%	8
Total net revenue⁽¹⁾	7,083			7,013			6,962			7,192			6,909			1		3
Provision for credit losses	1,693			1,638			1,268			1,276			1,674			3		1
Non-interest expense:
Marketing	517			831			504			425			414			(38	)	25
Operating expenses	3,154			3,301			3,269			2,999			3,159			(4	)	—
Total non-interest expense	3,671			4,132			3,773			3,424			3,573			(11	)	3
Income from continuing operations before income taxes	1,719			1,243			1,921			2,492			1,662			38		3
Income tax provision (benefit)	309			(21		)	420			575			319			**		(3	)
Income from continuing operations, net of tax	1,410			1,264			1,501			1,917			1,343			12		5
Income (loss) from discontinued operations, net of tax	2			(3		)	1			(11		)	3			**		(33	)
Net income	1,412			1,261			1,502			1,906			1,346			12		5
Dividends and undistributed earnings allocated to participating securities⁽²⁾	(12		)	(9		)	(9		)	(12		)	(10		)	33		20
Preferred stock dividends	(52		)	(80		)	(53		)	(80		)	(52		)	(35	)	—
Net income available to common stockholders	$	1,348		$	1,172		$	1,440		$	1,814		$	1,284		15		5
Common Share Statistics
Basic earnings per common share:⁽²⁾
Net income from continuing operations	$	2.87		$	2.50		$	3.01		$	3.76		$	2.63		15	%	9	%
Income (loss) from discontinued operations	—			(0.01		)	—			(0.02		)	0.01			**		**
Net income per basic common share	$	2.87		$	2.49		$	3.01		$	3.74		$	2.64		15		9
Diluted earnings per common share:⁽²⁾
Net income from continuing operations	$	2.86		$	2.49		$	2.99		$	3.73		$	2.61		15		10
Income (loss) from discontinued operations	—			(0.01		)	—			(0.02		)	0.01			**		**
Net income per diluted common share	$	2.86		$	2.48		$	2.99		$	3.71		$	2.62		15		9
Weighted-average common shares outstanding (in millions):
Basic	469.4			470.0			477.8			485.1			486.9			—		(4	)
Diluted	471.6			472.7			480.9			488.3			490.8			—		(4	)
Common shares outstanding (period-end, in millions)	469.6			467.7			473.7			478.4			485.9			—		(3	)
Dividends declared and paid per common share	$	0.40		$	0.40		$	0.40		$	0.40		$	0.40		—		—
Tangible book value per common share (period-end)⁽³⁾	72.86			69.20			66.15			63.86			61.29			5		19



											2019 Q1 vs.
(Dollars in millions)	2019		2018		2018		2018		2018		2018		2018
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Balance Sheet (Period-End)
Loans held for investment	$	240,273	$	245,899	$	238,761	$	236,124	$	248,256	(2	)%	(3	)%
Interest-earning assets	340,071		341,293		331,293		332,167		332,251		—		2
Total assets	373,191		372,538		362,909		363,989		362,857		—		3
Interest-bearing deposits	230,199		226,281		222,356		222,605		224,671		2		2
Total deposits	255,107		249,764		247,195		248,225		250,847		2		2
Borrowings	50,358		58,905		52,205		53,310		50,693		(15	)	(1	)
Common equity	49,120		47,307		46,277		45,566		44,842		4		10
Total stockholders’ equity	53,481		51,668		50,638		49,926		49,203		4		9
Balance Sheet (Average Balances)
Loans held for investment	$	241,959	$	241,371	$	236,766	$	240,758	$	249,726	—		(3	)%
Interest-earning assets	337,793		334,714		330,272		333,495		330,183		1	%	2
Total assets	370,394		365,243		360,937		363,929		362,049		1		2
Interest-bearing deposits	227,572		222,827		221,431		223,079		219,670		2		4
Total deposits	251,410		247,663		246,720		248,790		245,270		2		3
Borrowings	53,055		53,994		51,684		52,333		54,588		(2	)	(3	)
Common equity	48,359		46,753		46,407		45,466		44,670		3		8
Total stockholders’ equity	52,720		51,114		50,768		49,827		49,031		3		8

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated



																2019 Q1 vs.
(Dollars in millions, except as noted)	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Performance Metrics
Net interest income growth (period over period)	—			1		%	4		%	(3		)%	(2		)%	**		**
Non-interest income growth (period over period)	8		%	1			(28		)	38			(1		)	**		**
Total net revenue growth (period over period)	1			1			(3		)	4			(1		)	**		**
Total net revenue margin⁽⁴⁾	8.39			8.38			8.43			8.63			8.37			1	bps	2	bps
Net interest margin⁽⁵⁾	6.86			6.96			7.01			6.66			6.93			(10	)	(7	)
Return on average assets	1.52			1.38			1.66			2.11			1.48			14		4
Return on average tangible assets⁽⁶⁾	1.59			1.44			1.74			2.20			1.55			15		4
Return on average common equity⁽⁷⁾	11.13			10.05			12.40			16.06			11.47			108		(34	)
Return on average tangible common equity⁽⁸⁾	16.11			14.78			18.32			23.99			17.32			133		(121	)
Non-interest expense as a percentage of average loans held for investment	6.07			6.85			6.37			5.69			5.72			(78	)	35
Efficiency ratio⁽⁹⁾	51.83			58.92			54.19			47.61			51.72			(7	)%	—
Operating efficiency ratio⁽¹⁰⁾	44.53			47.07			46.95			41.70			45.72			(3	)	(1	)%
Effective income tax rate for continuing operations	18.0			(1.7		)	21.9			23.1			19.2			20		(1	)
Employees (in thousands), period-end	48.8			47.6			47.6			47.8			47.9			3		2
Credit Quality Metrics
Allowance for loan and lease losses	$	7,313		$	7,220		$	7,219		$	7,368		$	7,567		1	%	(3	)%
Allowance as a percentage of loans held for investment	3.04		%	2.94		%	3.02		%	3.12		%	3.05		%	10	bps	(1	)bps
Net charge-offs	$	1,599		$	1,610		$	1,425		$	1,459		$	1,618		(1	)%	(1	)%
Net charge-off rate⁽¹¹⁾	2.64		%	2.67		%	2.41		%	2.42		%	2.59		%	(3	)bps	5	bps
30+ day performing delinquency rate	3.23			3.62			3.28			2.88			2.72			(39	)	51
30+ day delinquency rate	3.40			3.84			3.48			3.05			2.91			(44	)	49
Capital Ratios⁽¹²⁾
Common equity Tier 1 capital	11.9		%	11.2		%	11.2		%	11.1		%	10.5		%	70	bps	140	bps
Tier 1 capital	13.4			12.7			12.8			12.6			12.0			70		140
Total capital	15.8			15.1			15.2			15.1			14.5			70		130
Tier 1 leverage	11.0			10.7			10.6			10.3			10.1			30		90
Tangible common equity (“TCE”)⁽¹³⁾	9.6			9.1			9.0			8.8			8.6			50		100

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income



																2019 Q1 vs.
	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions, except per share data and as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Interest income:
Loans, including loans held for sale	$	6,368		$	6,358		$	6,247		$	5,989		$	6,134		—		4	%
Investment securities	655			627			593			539			452			4	%	45
Other	69			63			55			68			51			10		35
Total interest income	7,092			7,048			6,895			6,596			6,637			1		7
Interest expense:
Deposits	817			756			681			622			539			8		52
Securitized debt obligations	143			138			127			124			107			4		34
Senior and subordinated notes	314			297			288			289			251			6		25
Other borrowings	27			37			13			10			22			(27	)	23
Total interest expense	1,301			1,228			1,109			1,045			919			6		42
Net interest income	5,791			5,820			5,786			5,551			5,718			—		1
Provision for credit losses	1,693			1,638			1,268			1,276			1,674			3		1
Net interest income after provision for credit losses	4,098			4,182			4,518			4,275			4,044			(2	)	1
Non-interest income:
Interchange fees, net	758			743			714			723			643			2		18
Service charges and other customer-related fees	353			352			410			391			432			—		(18	)
Net securities gains (losses)	24			(20		)	(196		)	(1		)	8			**		200
Other	157			118			248			528			108			33		45
Total non-interest income	1,292			1,193			1,176			1,641			1,191			8		8
Non-interest expense:
Salaries and associate benefits	1,573			1,345			1,432			1,430			1,520			17		3
Occupancy and equipment	493			610			515			503			490			(19	)	1
Marketing	517			831			504			425			414			(38	)	25
Professional services	291			426			275			234			210			(32	)	39
Communications and data processing	303			326			311			317			306			(7	)	(1	)
Amortization of intangibles	30			43			44			43			44			(30	)	(32	)
Other	464			551			692			472			589			(16	)	(21	)
Total non-interest expense	3,671			4,132			3,773			3,424			3,573			(11	)	3
Income from continuing operations before income taxes	1,719			1,243			1,921			2,492			1,662			38		3
Income tax provision (benefit)	309			(21		)	420			575			319			**		(3	)
Income from continuing operations, net of tax	1,410			1,264			1,501			1,917			1,343			12		5
Income (loss) from discontinued operations, net of tax	2			(3		)	1			(11		)	3			**		(33	)
Net income	1,412			1,261			1,502			1,906			1,346			12		5
Dividends and undistributed earnings allocated to participating securities⁽²⁾	(12		)	(9		)	(9		)	(12		)	(10		)	33		20
Preferred stock dividends	(52		)	(80		)	(53		)	(80		)	(52		)	(35	)	—
Net income available to common stockholders	$	1,348		$	1,172		$	1,440		$	1,814		$	1,284		15		5

																2019 Q1 vs.
	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions, except per share data and as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Basic earnings per common share:⁽²⁾
Net income from continuing operations	$	2.87		$	2.50		$	3.01		$	3.76		$	2.63		15	%	9	%
Income (loss) from discontinued operations	—			(0.01		)	—			(0.02		)	0.01			**		**
Net income per basic common share	$	2.87		$	2.49		$	3.01		$	3.74		$	2.64		15		9
Diluted earnings per common share:⁽²⁾
Net income from continuing operations	$	2.86		$	2.49		$	2.99		$	3.73		$	2.61		15		10
Income (loss) from discontinued operations	—			(0.01		)	—			(0.02		)	0.01			**		**
Net income per diluted common share	$	2.86		$	2.48		$	2.99		$	3.71		$	2.62		15		9
Weighted-average common shares outstanding (in millions):
Basic common shares	469.4			470.0			477.8			485.1			486.9			—		(4	)
Diluted common shares	471.6			472.7			480.9			488.3			490.8			—		(4	)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets



																2019 Q1 vs.
	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Assets:
Cash and cash equivalents:
Cash and due from banks	$	4,572		$	4,768		$	4,547		$	4,499		$	4,220		(4	)%	8	%
Interest-bearing deposits and other short-term investments	12,897			8,418			6,335			7,774			9,788			53		32
Total cash and cash equivalents	17,469			13,186			10,882			12,273			14,008			32		25
Restricted cash for securitization investors	1,969			303			746			1,023			309			**		**
Investment securities:
Securities available for sale	45,888			46,150			47,384			50,691			47,155			(1	)	(3	)
Securities held to maturity	36,503			36,771			34,631			33,464			23,075			(1	)	58
Total investment securities	82,391			82,921			82,015			84,155			70,230			(1	)	17
Loans held for investment:
Unsecuritized loans held for investment	208,591			211,702			204,796			201,222			213,313			(1	)	(2	)
Loans held in consolidated trusts	31,682			34,197			33,965			34,902			34,943			(7	)	(9	)
Total loans held for investment	240,273			245,899			238,761			236,124			248,256			(2	)	(3	)
Allowance for loan and lease losses	(7,313		)	(7,220		)	(7,219		)	(7,368		)	(7,567		)	1		(3	)
Net loans held for investment	232,960			238,679			231,542			228,756			240,689			(2	)	(3	)
Loans held for sale, at lower of cost or fair value	905			1,192			1,402			1,480			1,498			(24	)	(40	)
Premises and equipment, net	4,205			4,191			4,149			4,095			4,055			—		4
Interest receivable	1,615			1,614			1,518			1,493			1,496			—		8
Goodwill	14,546			14,544			14,513			14,531			14,536			—		—
Other assets	17,131			15,908			16,142			16,183			16,036			8		7
Total assets	$	373,191		$	372,538		$	362,909		$	363,989		$	362,857		—		3



																2019 Q1 vs.
	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Liabilities:
Interest payable	$	382		$	458		$	391		$	450		$	353		(17	)%	8	%
Deposits:
Non-interest-bearing deposits	24,908			23,483			24,839			25,620			26,176			6		(5	)
Interest-bearing deposits	230,199			226,281			222,356			222,605			224,671			2		2
Total deposits	255,107			249,764			247,195			248,225			250,847			2		2
Securitized debt obligations	19,273			18,307			18,649			19,649			18,665			5		3
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	335			352			384			553			656			(5	)	(49	)
Senior and subordinated notes	30,645			30,826			31,291			32,920			31,051			(1	)	(1	)
Other borrowings	105			9,420			1,881			188			321			(99	)	(67	)
Total other debt	31,085			40,598			33,556			33,661			32,028			(23	)	(3	)
Other liabilities	13,863			11,743			12,480			12,078			11,761			18		18
Total liabilities	319,710			320,870			312,271			314,063			313,654			—		2

Stockholders’ equity:
Preferred stock	0			0			0			0			0			—		—
Common stock	7			7			7			7			7			—		—
Additional paid-in capital, net	32,160			32,040			31,978			31,868			31,779			—		1
Retained earnings	37,030			35,875			34,883			33,626			31,996			3		16
Accumulated other comprehensive loss	(660		)	(1,263		)	(1,877		)	(1,793		)	(1,599		)	(48	)	(59	)
Treasury stock, at cost	(15,056		)	(14,991		)	(14,353		)	(13,782		)	(12,980		)	—		16
Total stockholders’ equity	53,481			51,668			50,638			49,926			49,203			4		9
Total liabilities and stockholders’ equity	$	373,191		$	372,538		$	362,909		$	363,989		$	362,857		—		3

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 $376 million in Q1 2019, $391 million in Q4 2018, $305 million in Q3 2018, $309 million in Q2 2018 and $335 million in Q1 2018 for the estimated uncollectible amount of billed finance charges and fees and related losses.

⁽²⁾

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. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.


⁽³⁾	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: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.


⁽⁴⁾	Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.


⁽⁵⁾	Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.


⁽⁶⁾	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: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

⁽⁷⁾

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.

⁽⁸⁾

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: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.


⁽⁹⁾	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: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.


⁽¹⁰⁾	Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.


⁽¹¹⁾	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.


⁽¹²⁾	Capital ratios as of the end of Q1 2019 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.


⁽¹³⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.


**	Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 6: Average Balances, Net Interest Income and Net Interest Margin



	2019 Q1						2018 Q4						2018 Q1
	Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate
(Dollars in millions, except as noted)	Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale	$	242,929	$	6,368	10.49	%	$	242,534	$	6,358	10.49	%	$	250,906	$	6,134	9.78	%
Investment securities	83,679		655		3.13		83,391		627		3.01		69,576		452		2.60
Cash equivalents and other	11,185		69		2.47		8,789		63		2.87		9,701		51		2.10
Total interest-earning assets	$	337,793	$	7,092	8.40		$	334,714	$	7,048	8.42		$	330,183	$	6,637	8.04
Interest-bearing liabilities:
Interest-bearing deposits	$	227,572	$	817	1.44		$	222,827	$	756	1.36		$	219,670	$	539	0.98
Securitized debt obligations	18,747		143		3.05		18,312		138		2.99		19,698		107		2.17
Senior and subordinated notes	30,836		314		4.07		30,831		297		3.86		30,430		251		3.30
Other borrowings and liabilities	4,684		27		2.34		6,123		37		2.43		6,849		22		1.28
Total interest-bearing liabilities	$	281,839	$	1,301	1.85		$	278,093	$	1,228	1.77		$	276,647	$	919	1.33
Net interest income/spread			$	5,791	6.55				$	5,820	6.65				$	5,718	6.71
Impact of non-interest-bearing funding					0.31						0.31						0.22
Net interest margin					6.86	%					6.96	%					6.93	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics



											2019 Q1 vs.
(Dollars in millions, except as noted)	2019 Q1		2018 Q4		2018 Q3		2018 Q2		2018 Q1		2018 Q4		2018 Q1
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	101,052	$	107,350	$	101,564	$	100,714	$	98,535	(6	)%	3	%
International card businesses	8,784		9,011		9,121		9,063		9,041		(3	)	(3	)
Total credit card	109,836		116,361		110,685		109,777		107,576		(6	)	2
Consumer banking:
Auto	56,444		56,341		56,422		55,781		54,811		—		3
Home loan⁽¹⁾	—		—		—		—		16,630		**		**
Retail banking	2,804		2,864		2,907		2,946		3,233		(2	)	(13	)
Total consumer banking	59,248		59,205		59,329		58,727		74,674		—		(21	)
Commercial banking:
Commercial and multifamily real estate	28,984		28,899		29,064		28,292		27,360		—		6
Commercial and industrial	42,197		41,091		39,325		38,948		38,208		3		10
Total commercial lending	71,181		69,990		68,389		67,240		65,568		2		9
Small-ticket commercial real estate	8		343		358		369		385		(98	)	(98	)
Total commercial banking	71,189		70,333		68,747		67,609		65,953		1		8
Other loans	—		—		—		11		53		**		**
Total loans held for investment	$	240,273	$	245,899	$	238,761	$	236,124	$	248,256	(2	)	(3	)
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	102,667	$	103,391	$	100,566	$	98,895	$	100,450	(1	)%	2	%
International card businesses	8,789		8,958		8,944		8,998		9,052		(2	)	(3	)
Total credit card	111,456		112,349		109,510		107,893		109,502		(1	)	2
Consumer banking:
Auto	56,234		56,469		56,297		55,298		54,344		—		3
Home loan⁽¹⁾	—		—		—		8,098		17,224		**		**
Retail banking	2,831		2,873		2,923		3,084		3,429		(1	)	(17	)
Total consumer banking	59,065		59,342		59,220		66,480		74,997		—		(21	)
Commercial banking:
Commercial and multifamily real estate	29,034		28,855		28,354		27,302		26,542		1		9
Commercial and industrial	42,132		40,476		39,318		38,686		38,246		4		10
Total commercial lending	71,166		69,331		67,672		65,988		64,788		3		10
Small-ticket commercial real estate	272		349		364		376		393		(22	)	(31	)
Total commercial banking	71,438		69,680		68,036		66,364		65,181		3		10
Other loans	—		—		—		21		46		**		**
Total average loans held for investment	$	241,959	$	241,371	$	236,766	$	240,758	$	249,726	—		(3	)



											2019 Q1 vs.
	2019 Q1		2018 Q4		2018 Q3		2018 Q2		2018 Q1		2018 Q4		2018 Q1
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card⁽²⁾	5.04	%	4.64	%	4.35	%	4.72	%	5.26	%	40	bps	(22	)bps
International card businesses	3.20		4.22		1.92		4.14		2.49		(102	)	71
Total credit card⁽²⁾	4.90		4.61		4.15		4.67		5.03		29		(13	)
Consumer banking:
Auto	1.44		1.98		1.73		1.32		1.53		(54	)	(9	)
Home loan⁽¹⁾	—		—		—		—		(0.03	)	**		**
Retail banking	2.56		2.56		2.62		2.07		1.89		—		67
Total consumer banking	1.49		2.01		1.77		1.19		1.19		(52	)	30
Commercial banking:
Commercial and multifamily real estate	—		(0.01	)	0.04		—		—		1		—
Commercial and industrial	0.13		0.17		0.25		(0.07	)	0.20		(4	)	(7	)
Total commercial lending	0.08		0.10		0.16		(0.04	)	0.12		(2	)	(4	)
Small-ticket commercial real estate	0.23		0.13		0.56		(0.40	)	(0.18	)	10		41
Total commercial banking	0.08		0.10		0.16		(0.04	)	0.11		(2	)	(3	)
Total net charge-offs	2.64		2.67		2.41		2.42		2.59		(3	)	5
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	3.72	%	4.04	%	3.80	%	3.32	%	3.57	%	(32	)bps	15	bps
International card businesses	3.61		3.52		3.55		3.39		3.62		9		(1	)
Total credit card	3.71		4.00		3.78		3.32		3.58		(29	)	13
Consumer banking:
Auto	5.78		6.95		6.27		5.57		5.15		(117	)	63
Home loan⁽¹⁾	—		—		—		—		0.20		**		**
Retail banking	0.84		1.01		0.80		0.84		0.75		(17	)	9
Total consumer banking	5.55		6.67		6.01		5.33		3.86		(112	)	169
Nonperforming Loans and Nonperforming Assets Rates⁽³⁾⁽⁴⁾
Credit card:
International card businesses	0.26	%	0.25	%	0.22	%	0.22	%	0.25	%	1	bps	1	bps
Total credit card	0.02		0.02		0.02		0.02		0.02		—		—
Consumer banking:
Auto	0.57		0.80		0.70		0.55		0.50		(23	)	7
Home loan⁽¹⁾	—		—		—		—		0.86		**		**
Retail banking	1.10		1.04		1.13		1.15		1.04		6		6
Total consumer banking	0.59		0.81		0.72		0.58		0.61		(22	)	(2	)
Commercial banking:
Commercial and multifamily real estate	0.24		0.29		0.13		0.01		0.01		(5	)	23
Commercial and industrial	0.71		0.54		0.55		0.57		0.78		17		(7	)
Total commercial lending	0.52		0.44		0.37		0.33		0.46		8		6
Small-ticket commercial real estate	**		1.80		1.65		1.18		1.46		**		**
Total commercial banking	0.53		0.44		0.38		0.34		0.47		9		6
Total nonperforming loans	0.31		0.33		0.30		0.25		0.32		(2	)	(1	)
Total nonperforming assets	0.33		0.35		0.33		0.30		0.35		(2	)	(2	)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 8: Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity



	Three Months Ended March 31, 2019
	Credit Card									Consumer Banking
(Dollars in millions)	Domestic Card			International Card Businesses			Total Credit Card			Auto			Retail Banking			Total Consumer Banking			Commercial Banking			Total
Allowance for loan and lease losses:
Balance as of December 31, 2018	$	5,144		$	391		$	5,535		$	990		$	58		$	1,048		$	637		$	7,220
Charge-offs	(1,652		)	(130		)	(1,782		)	(449		)	(22		)	(471		)	(20		)	(2,273		)
Recoveries	358			60			418			246			4			250			6			674
Net charge-offs	(1,294		)	(70		)	(1,364		)	(203		)	(18		)	(221		)	(14		)	(1,599		)
Provision for loan and lease losses	1,291			98			1,389			215			20			235			60			1,684
Allowance build (release) for loan and lease losses	(3		)	28			25			12			2			14			46			85
Other changes⁽⁵⁾	—			8			8			—			—			—			—			8
Balance as of March 31, 2019	5,141			427			5,568			1,002			60			1,062			683			7,313
Reserve for unfunded lending commitments:
Balance as of December 31, 2018	—			—			—			—			4			4			118			122
Provision for losses on unfunded lending commitments	—			—			—			—			—			—			9			9
Balance as of March 31, 2019	—			—			—			—			4			4			127			131
Combined allowance and reserve as of March 31, 2019	$	5,141		$	427		$	5,568		$	1,002		$	64		$	1,066		$	810		$	7,444

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results



	Three Months Ended March 31, 2019
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾			Other⁽⁶⁾⁽⁷⁾			Total
Net interest income	$	3,590	$	1,679	$	489		$	33		$	5,791
Non-interest income (loss)	950		160		187			(5		)	1,292
Total net revenue	4,540		1,839		676			28			7,083
Provision for credit losses	1,389		235		69			—			1,693
Non-interest expense	2,171		994		417			89			3,671
Income (loss) from continuing operations before income taxes	980		610		190			(61		)	1,719
Income tax provision (benefit)	229		142		44			(106		)	309
Income from continuing operations, net of tax	$	751	$	468	$	146		$	45		$	1,410

	Three Months Ended December 31, 2018
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾			Other⁽⁶⁾⁽⁷⁾			Total
Net interest income	$	3,617	$	1,689	$	508		$	6		$	5,820
Non-interest income (loss)	886		159		159			(11		)	1,193
Total net revenue (loss)	4,503		1,848		667			(5		)	7,013
Provision for credit losses	1,326		303		9			—			1,638
Non-interest expense	2,496		1,085		434			117			4,132
Income (loss) from continuing operations before income taxes	681		460		224			(122		)	1,243
Income tax provision (benefit)	160		107		52			(340		)	(21		)
Income from continuing operations, net of tax	$	521	$	353	$	172		$	218		$	1,264

	Three Months Ended March 31, 2018
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽⁶⁾⁽⁷⁾			Other⁽⁶⁾⁽⁷⁾			Total
Net interest income	$	3,558	$	1,615	$	506		$	39		$	5,718
Non-interest income (loss)	857		174		187			(27		)	1,191
Total net revenue	4,415		1,789		693			12			6,909
Provision (benefit) for credit losses	1,456		233		(14		)	(1		)	1,674
Non-interest expense	2,039		1,000		403			131			3,573
Income (loss) from continuing operations before income taxes	920		556		304			(118		)	1,662
Income tax provision (benefit)	213		130		71			(95		)	319
Income (loss) from continuing operations, net of tax	$	707	$	426	$	233		$	(23	)	$	1,343

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business



																2019 Q1 vs.
	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Credit Card
Earnings:
Net interest income	$	3,590		$	3,617		$	3,596		$	3,396		$	3,558		(1	)%	1	%
Non-interest income	950			886			893			884			857			7		11
Total net revenue	4,540			4,503			4,489			4,280			4,415			1		3
Provision for credit losses	1,389			1,326			1,031			1,171			1,456			5		(5	)
Non-interest expense	2,171			2,496			2,103			1,904			2,039			(13	)	6
Income from continuing operations before income taxes	980			681			1,355			1,205			920			44		7
Income tax provision	229			160			315			282			213			43		8
Income from continuing operations, net of tax	$	751		$	521		$	1,040		$	923		$	707		44		6
Selected performance metrics:
Period-end loans held for investment	$	109,836		$	116,361		$	110,685		$	109,777		$	107,576		(6	)	2
Average loans held for investment	111,456			112,349			109,510			107,893			109,502			(1	)	2
Average yield on loans held for investment⁽⁸⁾	15.77		%	15.63		%	15.79		%	15.06		%	15.24		%	14	bps	53	bps
Total net revenue margin⁽⁹⁾	16.29			16.03			16.40			15.87			16.13			26		16
Net charge-off rate⁽²⁾	4.90			4.61			4.15			4.67			5.03			29		(13	)
30+ day performing delinquency rate	3.71			4.00			3.78			3.32			3.58			(29	)	13
30+ day delinquency rate	3.72			4.01			3.80			3.33			3.59			(29	)	13
Nonperforming loan rate⁽³⁾	0.02			0.02			0.02			0.02			0.02			—		—
Purchase volume⁽¹⁰⁾	$	93,197		$	105,696		$	97,469		$	97,392		$	86,545		(12	)%	8	%



																2019 Q1 vs.
	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Domestic Card
Earnings:
Net interest income	$	3,273		$	3,309		$	3,280		$	3,108		$	3,229		(1	)%	1	%
Non-interest income	873			828			819			818			774			5		13
Total net revenue	4,146			4,137			4,099			3,926			4,003			—		4
Provision for credit losses	1,291			1,229			950			1,094			1,380			5		(6	)
Non-interest expense	1,949			2,216			1,890			1,683			1,832			(12	)	6
Income from continuing operations before income taxes	906			692			1,259			1,149			791			31		15
Income tax provision	211			162			293			268			184			30		15
Income from continuing operations, net of tax	$	695		$	530		$	966		$	881		$	607		31		14
Selected performance metrics:
Period-end loans held for investment	$	101,052		$	107,350		$	101,564		$	100,714		$	98,535		(6	)	3
Average loans held for investment	102,667			103,391			100,566			98,895			100,450			(1	)	2
Average yield on loans held for investment⁽⁸⁾	15.69		%	15.58		%	15.73		%	15.05		%	15.10		%	11	bps	59	bps
Total net revenue margin⁽⁹⁾	16.15			16.01			16.30			15.88			15.94			14		21
Net charge-off rate⁽²⁾	5.04			4.64			4.35			4.72			5.26			40		(22	)
30+ day delinquency rate	3.72			4.04			3.80			3.32			3.57			(32	)	15
Purchase volume⁽¹⁰⁾	$	85,738		$	96,818		$	89,205		$	88,941		$	79,194		(11	)%	8	%
Refreshed FICO scores:⁽¹¹⁾
Greater than 660	66		%	67		%	67		%	68		%	66		%	(1	)	—
660 or below	34			33			33			32			34			1		—
Total	100		%	100		%	100		%	100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business



																2019 Q1 vs.
	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Consumer Banking
Earnings:
Net interest income	$	1,679		$	1,689		$	1,636		$	1,609		$	1,615		(1	)%	4	%
Non-interest income	160			159			155			175			174			1		(8	)
Total net revenue	1,839			1,848			1,791			1,784			1,789			—		3
Provision for credit losses	235			303			184			118			233			(22	)	1
Non-interest expense	994			1,085			979			963			1,000			(8	)	(1	)
Income from continuing operations before income taxes	610			460			628			703			556			33		10
Income tax provision	142			107			146			164			130			33		9
Income from continuing operations, net of tax	$	468		$	353		$	482		$	539		$	426		33		10
Selected performance metrics:
Period-end loans held for investment⁽¹⁾	$	59,248		$	59,205		$	59,329		$	58,727		$	74,674		—		(21	)
Average loans held for investment⁽¹⁾	59,065			59,342			59,220			66,480			74,997			—		(21	)
Average yield on loans held for investment⁽⁸⁾	8.15		%	8.14		%	8.03		%	7.32		%	6.86		%	1	bps	129	bps
Auto loan originations	$	6,222		$	5,932		$	6,643		$	6,994		$	6,707		5	%	(7	)%
Period-end deposits	205,439			198,607			196,635			194,962			193,073			3		6
Average deposits	201,072			196,348			194,687			193,278			187,785			2		7
Average deposits interest rate	1.18		%	1.10		%	1.00		%	0.88		%	0.80		%	8	bps	38	bps
Net charge-off rate	1.49			2.01			1.77			1.19			1.19			(52	)	30
30+ day performing delinquency rate	5.55			6.67			6.01			5.33			3.86			(112	)	169
30+ day delinquency rate	6.02			7.36			6.61			5.80			4.27			(134	)	175
Nonperforming loan rate⁽³⁾	0.59			0.81			0.72			0.58			0.61			(22	)	(2	)
Nonperforming asset rate⁽⁴⁾	0.68			0.90			0.82			0.73			0.70			(22	)	(2	)
Auto—At origination FICO scores:⁽¹²⁾
Greater than 660	49		%	50		%	50		%	50		%	51		%	(1	)%	(2	)%
621 - 660	19			19			19			19			18			—		1
620 or below	32			31			31			31			31			1		1
Total	100		%	100		%	100		%	100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business



																2019 Q1 vs.
	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Commercial Banking
Earnings:
Net interest income	$	489		$	508		$	513		$	517		$	506		(4	)%	(3	)%
Non-interest income	187			159			189			209			187			18		—
Total net revenue⁽⁶⁾⁽⁷⁾	676			667			702			726			693			1		(2	)
Provision (benefit) for credit losses	69			9			54			34			(14		)	**		**
Non-interest expense	417			434			408			409			403			(4	)	3
Income from continuing operations before income taxes	190			224			240			283			304			(15	)	(38	)
Income tax provision	44			52			56			66			71			(15	)	(38	)
Income from continuing operations, net of tax	$	146		$	172		$	184		$	217		$	233		(15	)	(37	)
Selected performance metrics:
Period-end loans held for investment	$	71,189		$	70,333		$	68,747		$	67,609		$	65,953		1		8
Average loans held for investment	71,438			69,680			68,036			66,364			65,181			3		10
Average yield on loans held for investment⁽⁶⁾⁽⁸⁾	4.62		%	4.67		%	4.55		%	4.43		%	4.16		%	(5	)bps	46	bps
Period-end deposits	$	31,248		$	29,480		$	30,474		$	31,078		$	34,449		6	%	(9	)%
Average deposits	30,816			30,680			31,061			32,951			34,057			—		(10	)
Average deposits interest rate	1.11		%	0.95		%	0.79		%	0.65		%	0.52		%	16	bps	59	bps
Net charge-off (recovery) rate	0.08			0.10			0.16			(0.04		)	0.11			(2	)	(3	)
Nonperforming loan rate⁽³⁾	0.53			0.44			0.38			0.34			0.47			9		6
Nonperforming asset rate⁽⁴⁾	0.53			0.45			0.41			0.37			0.49			8		4
Risk category:⁽¹³⁾
Noncriticized	$	68,594		$	68,043		$	65,926		$	64,923		$	62,773		1	%	9	%
Criticized performing	2,094			1,848			2,204			2,088			2,432			13		(14	)
Criticized nonperforming	378			312			259			229			309			21		22
PCI loans	123			130			358			369			439			(5	)	(72	)
Total commercial loans	$	71,189		$	70,333		$	68,747		$	67,609		$	65,953		1		8
Risk category as a percentage of period-end loans held for investment:⁽¹³⁾
Noncriticized	96.4		%	96.8		%	95.9		%	96.1		%	95.1		%	(40	)bps	130	bps
Criticized performing	2.9			2.6			3.2			3.1			3.7			30		(80	)
Criticized nonperforming	0.5			0.4			0.4			0.3			0.5			10		—
PCI loans	0.2			0.2			0.5			0.5			0.7			—		(50	)
Total commercial loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total



																2019 Q1 vs.
	2019			2018			2018			2018			2018			2018		2018
(Dollars in millions)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Other
Earnings:
Net interest income	$	33		$	6		$	41		$	29		$	39		**		(15	)%
Non-interest income (loss)⁽¹⁾	(5		)	(11		)	(61		)	373			(27		)	(55	)%	(81	)
Total net revenue (loss)⁽⁶⁾⁽⁷⁾	28			(5		)	(20		)	402			12			**		133
Benefit for credit losses	—			—			(1		)	(47		)	(1		)	—		**
Non-interest expense⁽¹⁴⁾	89			117			283			148			131			(24	)	(32	)
Income (loss) from continuing operations before income taxes	(61		)	(122		)	(302		)	301			(118		)	(50	)	(48	)
Income tax provision (benefit)	(106		)	(340		)	(97		)	63			(95		)	(69	)	12
Income (loss) from continuing operations, net of tax	$	45		$	218		$	(205	)	$	238		$	(23	)	(79	)	**
Selected performance metrics:
Period-end loans held for investment	—			—			—			$	11		$	53		—		**
Average loans held for investment	—			—			—			21			46			—		**
Period-end deposits	$	18,420		$	21,677		$	20,086		22,185			23,325			(15	)	(21	)
Average deposits	19,522			20,635			20,972			22,561			23,428			(5	)	(17	)
Total
Earnings:
Net interest income	$	5,791		$	5,820		$	5,786		$	5,551		$	5,718		—		1	%
Non-interest income	1,292			1,193			1,176			1,641			1,191			8	%	8
Total net revenue	7,083			7,013			6,962			7,192			6,909			1		3
Provision for credit losses	1,693			1,638			1,268			1,276			1,674			3		1
Non-interest expense	3,671			4,132			3,773			3,424			3,573			(11	)	3
Income from continuing operations before income taxes	1,719			1,243			1,921			2,492			1,662			38		3
Income tax provision (benefit)	309			(21		)	420			575			319			**		(3	)
Income from continuing operations, net of tax	$	1,410		$	1,264		$	1,501		$	1,917		$	1,343		12		5
Selected performance metrics:
Period-end loans held for investment	$	240,273		$	245,899		$	238,761		$	236,124		$	248,256		(2	)	(3	)
Average loans held for investment	241,959			241,371			236,766			240,758			249,726			—		(3	)
Period-end deposits	255,107			249,764			247,195			248,225			250,847			2		2
Average deposits	251,410			247,663			246,720			248,790			245,270			2		3

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)


⁽¹⁾	In 2018, we sold all of our consumer home loan portfolio and recognized a net gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million.

⁽²⁾

In August 2018, we accelerated charge-off recognition for certain domestic credit card accounts where the cardholder is deceased. This acceleration led to a one-time increase in net charge-offs of approximately $32 million, increasing the net charge-off rate for total credit card and domestic credit card by approximately 12 basis points and 13 basis points, respectively, for the third quarter of 2018.


⁽³⁾	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.


⁽⁴⁾	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.


⁽⁵⁾	Represents foreign currency translation adjustments and the net impact of loan transfers and sales where applicable.


⁽⁶⁾	Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

⁽⁷⁾

In the first quarter of 2019, we made a change in how revenue is measured in our Commercial Banking business by revising the allocation of tax benefits on certain tax-advantaged investments. As such, prior period results have been recast to conform with the current period presentation. The result of this measurement change reduced the previously reported total net revenue in our Commercial Banking business by $30 million in Q1 2018, $32 million in Q2 2018, $26 million in Q3 2018, and $20 million in Q4 2018, with an offsetting increase in the Other category.


⁽⁸⁾	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.


⁽⁹⁾	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.


⁽¹⁰⁾	Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.

⁽¹¹⁾

Percentages represent period-end loans held for investment in each credit score category. Domestic card 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.


⁽¹²⁾	Percentages represent period-end loans held for investment in each credit score category. Auto 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.


⁽¹³⁾	Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.


⁽¹⁴⁾	Includes charges incurred as a result of restructuring activities.


^**	Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures⁽¹⁾



	Basel III Standardized Approach
(Dollars in millions, except as noted)	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Regulatory Capital Metrics
Common equity excluding AOCI	$	49,781		$	48,570		$	48,154		$	47,359		$	46,441
Adjustments:
AOCI⁽²⁾	(660		)	(1,263		)	(1,877		)	(1,793		)	(1,599		)
Goodwill, net of related deferred tax liabilities	(14,369		)	(14,373		)	(14,345		)	(14,368		)	(14,379		)
Intangible assets, net of related deferred tax liabilities	(223		)	(254		)	(284		)	(328		)	(371		)
Other	113			391			817			735			620
Common equity Tier 1 capital	$	34,642		$	33,071		$	32,465		$	31,605		$	30,712
Tier 1 capital	$	39,002		$	37,431		$	36,826		$	35,965		$	35,073
Total capital⁽³⁾	46,042			44,645			43,947			43,082			42,259
Risk-weighted assets	291,476			294,950			288,694			285,223			291,346
Adjusted average assets⁽⁴⁾	355,781			350,606			346,297			349,222			347,287
Capital Ratios
Common equity Tier 1 capital⁽⁵⁾	11.9		%	11.2		%	11.2		%	11.1		%	10.5		%
Tier 1 capital⁽⁶⁾	13.4			12.7			12.8			12.6			12.0
Total capital⁽⁷⁾	15.8			15.1			15.2			15.1			14.5
Tier 1 leverage⁽⁴⁾	11.0			10.7			10.6			10.3			10.1
Tangible common equity (“TCE”)⁽⁸⁾	9.6			9.1			9.0			8.8			8.6

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.



	2019									2018									2018
	Q1									Q4									Q1
(Dollars in millions, except per share data and as noted)	Reported Results			Adj.⁽⁹⁾			Adjusted Results			Reported Results			Adj.⁽⁹⁾			Adjusted Results			Reported Results			Adj.⁽⁹⁾			Adjusted Results
Selected income statement data:
Net interest income	$	5,791		—			$	5,791		$	5,820		$	6		$	5,826		$	5,718		—			$	5,718
Non-interest income	1,292			—			1,292			1,193			(64		)	1,129			1,191			$	2		1,193
Total net revenue	7,083			—			7,083			7,013			(58		)	6,955			6,909			2			6,911
Provision for credit losses	1,693			—			1,693			1,638			—			1,638			1,674			—			1,674
Non-interest expense	3,671			$	(25	)	3,646			4,132			(34		)	4,098			3,573			(17		)	3,556
Income from continuing operations before income taxes	1,719			25			1,744			1,243			(24		)	1,219			1,662			19			1,681
Income tax provision (benefit)	309			6			315			(21		)	266			245			319			4			323
Income from continuing operations, net of tax	1,410			19			1,429			1,264			(290		)	974			1,343			15			1,358
Income (loss) from discontinued operations, net of tax	2			—			2			(3		)	—			(3		)	3			—			3
Net income	1,412			19			1,431			1,261			(290		)	971			1,346			15			1,361
Dividends and undistributed earnings allocated to participating securities⁽¹⁰⁾	(12		)	—			(12		)	(9		)	2			(7		)	(10		)	—			(10		)
Preferred stock dividends	(52		)	—			(52		)	(80		)	—			(80		)	(52		)	—			(52		)
Net income available to common stockholders	$	1,348		$	19		$	1,367		$	1,172		$	(288	)	$	884		$	1,284		$	15		$	1,299
Selected performance metrics:
Diluted EPS⁽¹⁰⁾	$	2.86		$	0.04		$	2.90		$	2.48		$	(0.61	)	$	1.87		$	2.62		$	0.03		$	2.65
Efficiency ratio	51.83		%	(35		)bps	51.48		%	58.92		%	—			58.92		%	51.72		%	(27		)bps	51.45		%
Operating efficiency ratio	44.53			(35		)	44.18			47.07			(10		)bps	46.97			45.72			(26		)	45.46

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of 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 to be key financial performance measures that management uses in assessing capital adequacy and the level of returns generated. 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 following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.



	2019			2018			2018			2018			2018
(Dollars in millions)	Q1			Q4			Q3			Q2			Q1
Tangible Common Equity (Period-End)
Stockholders’ equity	$	53,481		$	51,668		$	50,638		$	49,926		$	49,203
Goodwill and intangible assets⁽¹¹⁾	(14,904		)	(14,941		)	(14,945		)	(15,013		)	(15,063		)
Noncumulative perpetual preferred stock	(4,360		)	(4,360		)	(4,360		)	(4,360		)	(4,360		)
Tangible common equity	$	34,217		$	32,367		$	31,333		$	30,553		$	29,780
Tangible Common Equity (Average)
Stockholders’ equity	$	52,720		$	51,114		$	50,768		$	49,827		$	49,031
Goodwill and intangible assets⁽¹¹⁾	(14,932		)	(14,953		)	(14,982		)	(15,043		)	(15,092		)
Noncumulative perpetual preferred stock	(4,360		)	(4,360		)	(4,360		)	(4,360		)	(4,360		)
Tangible common equity	$	33,428		$	31,801		$	31,426		$	30,424		$	29,579
Tangible Assets (Period-End)
Total assets	$	373,191		$	372,538		$	362,909		$	363,989		$	362,857
Goodwill and intangible assets⁽¹¹⁾	(14,904		)	(14,941		)	(14,945		)	(15,013		)	(15,063		)
Tangible assets	$	358,287		$	357,597		$	347,964		$	348,976		$	347,794
Tangible Assets (Average)
Total assets	$	370,394		$	365,243		$	360,937		$	363,929		$	362,049
Goodwill and intangible assets⁽¹¹⁾	(14,932		)	(14,953		)	(14,982		)	(15,043		)	(15,092		)
Tangible assets	$	355,462		$	350,290		$	345,955		$	348,886		$	346,957

__________


⁽¹⁾	Regulatory capital metrics and capital ratios as of March 31, 2019 are preliminary and therefore subject to change.


⁽²⁾	Amounts presented are net of tax.


⁽³⁾	Total capital equals the sum of Tier 1 capital and Tier 2 capital.


⁽⁴⁾	Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are 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.


⁽⁵⁾	Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.


⁽⁶⁾	Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.


⁽⁷⁾	Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.


⁽⁸⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.


⁽⁹⁾	The adjustments for the following periods consist of:



	2019		2018			2018
(Dollars in millions)	Q1		Q4			Q1
Walmart launch and related integration expenses	$	25	—			—
Net gains on the sales of exited businesses	—		$	(74	)	—
Benefit as a result of tax methodology change on rewards costs	—		(284		)	—
U.K. Payment Protection Insurance customer refund reserve build (“U.K. PPI Reserve”)	—		50			—
Restructuring charges	—		—			$	19
Total	25		(308		)	19
Income tax provision	6		18			4
Net income	$	19	$	(290	)	$	15


⁽¹⁰⁾	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.


⁽¹¹⁾	Includes impact of related deferred taxes.