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Capital One Financial (NYSE:COF)
Q4 2017 Earnings Conference Call
Jan. 23, 2018 5:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Welcome to the Capital One Q4 2017 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. If you'd like to ask a question during this time, simply press the * key, then the number 1 on your telephone keypad.

If you'd like to withdraw your question, please press the * key, then the number 2. Thank you. I would now like to turn the call over to Mr. Jeff Norris, senior vice president of global finance.

Sir, you may begin.

Jeff Norris -- Senior Vice President of Global Finance

Thanks very much, Leanne, and welcome, everybody, to Capital One's Fourth-Quarter 2017 Earnings Conference Call. As usual, we are webcasting live over the internet. To access the call on the internet, please log on to Capital One's website at capitalone.com and follow the links from there. In addition to the press release and financials, we've included a presentation summarizing our fourth-quarter 2017 results.

With me this evening are Mr. Richard Fairbank, Capital One's chairman and chief executive officer, and Mr. Scott Blackley, Capital One's chief financial officer. Rich and Scott will walk you through this presentation.

To access a copy of the presentation and the press release, please go to Capital One's website, click on "Investors," then click on "Quarterly Earnings Release." Please note that this presentation may contain forward-looking statements. Information regarding Capital One's financial performance and any forward-looking statements contained in today's discussion and the materials speak only as of the particular date or dates indicated in the materials. Capital One does not undertake any obligation to update or revise any of this information, whether as a result of new information, future events or otherwise. Numerous factors could cause our actual results to differ materially from those described in forward-looking statements.

And for more information on these factors, please see the section titled 'Forward-Looking Information' in the earnings release presentation and the 'Risk Factors' section in our annual and quarterly reports accessible at the Capital One website and filed with the SEC. With that, I'll turn over the call over to Mr. Blackley. Scott.

Scott Blackley -- Chief Financial Officer

Thanks, Jeff. Turn to Slide 3, I will cover results for the quarter. In the fourth quarter, Capital One posted a net loss of $971 million or a loss of $2.17 per share. Excluding adjusting items, we earned $1.62 per share in the fourth quarter and $7.74 for the full year of 2017.

Adjusting items in the quarter, which can be seen on Slide 14 in the appendix of tonight's slide deck, included the following: $1.77 billion, or $3.61 per share, of tax expense related to the impact of the tax act; $76 million, or $0.10 per share, of restructuring expenses largely related to the shutdown of our mortgage originations business; and $31 million or $0.07 per share from the build in our UK payment protection insurance customer refund reserve. In addition to the adjusting items in the quarter, I'd also like to highlight a few notable items that also impacted the quarter: $169 million, or $0.22 per share, of charges for a mortgage rep and warranty settlement, which is included in our discontinued operations; $113 million, or $0.15 per share, of charges related to our commercial taxi medallion lending portfolio. Before I go into our results for the quarter, I'd like to spend a minute on a few tax reform items which are highlighted on Slide 4. The total net impact of tax reform on Q4 earnings was $1.8 billion, of which the biggest piece was the DTA writedown, reflecting the change in the federal corporate tax rate from 35% to 21%.

For 2018 we expect our annual effective tax rate to be around 19% plus or minus. I'll caution that since tax reform was only recently passed, there's still the potential for adjustments to all of our current tax-related estimates. Pre-provision GAAP earnings decreased 5% on a linked-quarter basis. Provision for credit losses increased 5% on a linked-quarter basis as the smaller allowance build compared to the third quarter was more than offset by higher charge-offs.

We have provided an allowance roll-forward by business segment, which can be found on Table 8 of our earnings supplement.Let me take a moment to explain the movements in our allowance across our businesses. In our domestic card business, we built $118 million of allowance in the quarter driven by seasonally adjusted growth and the effects of the small tail of growth math on credit losses in 2018. Allowance in our consumer banking segment increased $29 million in the quarter. The allowance in the quarter was driven by a planned accounting change to accelerate timing of charge-offs for repossessed vehicles, which was partially offset by an allowance release as hurricane-related losses came in lower than our prior estimate.

Net reserves in our commercial banking segment were impacted by our move of a significant portion of our taxi medallion business to held for sale. We've marked that portfolio to our estimate of a reasonable market-clearing price and coupled with other tax-related judgments, this drove provision expense of $113 million in the quarter. In the quarter we settled on a mortgage rep and warranty litigation matter which drove a loss of $169 million in discontinued operations. With this settlement, we have closed all of the material active litigation from our legacy rep and warranty-related exposures.

Turning to full-year 2017 results, Capital One earned $4.1 billion, or $7.74 per share, on an adjusted basis. Adjusted pre-provision earnings of $13.4 billion were up 11% year over year, as higher revenue more than offset higher non-interest expense. Net income for 2017 on an adjusted basis was up 4%, as higher pre-provision earnings more than offset higher provision for credit losses. Full-year efficiency ratio was 51% excluding adjusting items, down from 53% in 2016.Turning to Slide 5, you can see that reported net-interest margin was down 5 basis points from the third quarter, primarily driven by lower domestic card deals from the full-quarter impact of the Cabela's portfolio as well as slightly higher rate paid on consumer deposits.

The net-interest margin was up 18 basis points on a year-over-year basis, primarily driven by higher mix of card assets on the balance sheet and the benefits from higher short-term interest rates.Turning to Slide 6 on common equity Tier 1 capital ratio, on Basel III standardized basis was 10.3%, which reflects current phase-ins. On a standardized fully phased-in basis it was 10.2%. We continue to believe that CET1 under stress is our binding constraint. After digesting the effects of tax reform and adjusting our capital plan, we believe our CET1 ratio on a fully phased-in basis will trend back toward the mid-10% range.

Lastly, we submitted our capital plan to the Federal Reserve at the end of December. While we cannot comment on any aspect of our regulatory feedback, we're committed to addressing Federal Reserve's concerns with our capital planning process. And with that, I'll turn the call over to Rich. Rich.

Richard Fairbank -- Chairman and Chief Executive Officer

Thanks, Scott. I'll begin on Slide 10 with fourth-quarter results for our domestic card business, which include a full quarter of impacts from the addition of the Cabela's portfolio. The run rate Cabela's impact on charge-off rate, delinquency rate, and revenue margin played out as expected in the fourth quarter. Ending loan balances were up $8.2 billion, or about 8%, compared to the fourth quarter of last year.

Excluding Cabela's, ending loans grew about 2%. Fourth-quarter purchase volume increased 15% from the prior year. Excluding Cabela's, purchase volume increased about 8%. Revenue for the quarter increased 4% from the prior year.

Revenue margin for the quarter was 16%, down 73 basis points from the fourth quarter of 2016, driven by the expected 65-basis-point impact from Cabela's. Non-interest expense increased 1% compared to the prior-year quarter. The efficiency of our domestic card business continues to improve. The charge-off rate for the quarter was 5.08% and the 30-plus delinquency rate at quarter-end was 4.01%.

Excluding Cabela's, the charge-off rate was 5.36% and the 30-plus delinquency rate was 4.18%. The full-year 2017 charge-off rate was 4.99%. Excluding Cabela's, the charge-off rate was 5.07%. In the second half of 2017, we've seen the effects of growth math moderate and we continue to expect a small tail in 2018.

As growth math runs its course, we expect that our delinquency and charge-off rate trend will be driven more by broader industry and economic factors.Slide 11 summarizes fourth-quarter results for our consumer banking business. Ending loans grew about $2 billion, or 3% compared to the prior year. Average loans were up $2.6 billion, or 4%. Growth in auto loans was partially offset by planned mortgage run-off.

Ending deposits were up $3.9 billion, or 2% versus the prior year, with a 12-basis-point increase in deposit rate paid compared to the fourth quarter of 2016. In the quarter, we exited the mortgage originations business. We determined that our originations business did not have sufficient scale to be competitive in a market where scale really matters. Scott discussed the adjusting item related to our exit, which runs through the other category.

While fourth-quarter auto originations were down 5% compared to the prior-year quarter, the auto business continues to grow, with ending loans up 13% year over year. Competitive intensity in auto is increasing, but we still see attractive opportunities to grow. We remain cautious about used-car prices and our underwriting assumes that prices decline. As the cycle plays out, we continue to expect the charge-off rate will increase gradually and loan growth will moderate.

Consumer banking revenue for the quarter increased about 9% from the fourth quarter of last year, driven by growth in auto loans as well as deposit spread and volumes. Non-interest expense for the quarter decreased 3% compared to the prior-year quarter, driven by our ongoing efforts to tightly manage cost. Provision for credit losses was down from the fourth quarter of 2016, primarily as a result of a smaller allowance build. Compared to the sequential quarter, provision for credit losses increased, driven by additions to the allowance that Scott discussed.Moving to Slide 12, I'll discuss our commercial banking business.

Fourth-quarter ending loan balances decreased $2.3 billion, or 3% year over year, driven by our choice to streamline and pull back in several less attractive business segments, late-year pay-downs on agency multifamily loans, and the writedown of taxi medallion loans. Compared to the fourth quarter of 2016, average loans increased 1% and revenue was up 2%. Non-interest expense was up 11%, primarily as a result of technology investments, foreclosed asset expense related to the taxi portfolio, and other business initiatives. Provision for credit losses was $100 million, up $34 million from the fourth quarter of last year.

Scott already discussed the fourth-quarter impacts from the decision to move most of the taxi medallion portfolio to held-for-sale. The charge-off rate for the quarter was 85 basis points. The commercial bank criticized performing loan rate for the quarter was 4.1%, down 20 basis points from the third quarter. The criticized non-performing loan rate was 0.4%, down 80 basis points from the third quarter.

The ongoing recovery in oil and gas markets has improved the credit performance of our oil and gas business. We've seen our E&P portfolio return to health but we continue to see credit pressure in oilfield services. We've provided summaries of loans, exposures, reserves, and other metrics for the oil and gas portfolios on Slide 17.Capital One continued to post year-over-year growth in loans, deposits, revenues, and pre-provision earnings. We continue to tightly manage costs even as we invest to grow and drive our digital transformation, and we continue to carefully manage risk across all our consumer and commercial banking businesses.

We met our guidance for 2017, coming in at the high end of our domestic card charge-off rate guidance, the low end of our total company efficiency ratio guidance, and delivering 7.4% growth in EPS net of adjustments. Our 2017 results put us in a strong position as we enter the new year. Loan growth decelerated in 2017 but we still see opportunities to book attractive and resilient loans in our card, auto, and commercial banking businesses. Marketing was down a bit in 2017.

We expect marketing in 2018 will be higher than 2017. On the credit front, the impact of growth math on our overall charge-off rate began to moderate in the second half of 2017 and we expect a small tail of growth math in 2018. As growth math runs its course, we expect that our domestic card charge-off rate trends will be driven more by broader industry and economic factors. Our efficiency ratio improved significantly in 2017.

Over the long term, we continue to believe we will be able to achieve gradual efficiency improvement driven by growth and digital productivity gains. We expect the new tax law will also give us a significant boost. In the near term, we expect a majority of the tax benefits will fall to the bottom line. Why only a majority? I believe markets behave in predictable ways, passing some of the benefit from companies to consumers and the economy.

A surge in tax benefits has a way of working its way into the marketplace through increasing competition, including higher levels of marketing, lower prices, and higher wages. Responding to these actions will likely consume some of the tax benefits in 2018 and these competitive effects will likely increase over time. As all these effects play out, we will continue to lean into our long-standing investments in talent, technology, innovation, and growth. We are bullish about the long-term benefits of our investment.

Taking all of this into account, we expect that our current trajectory coupled with the new tax law will enable us to accelerate 2018 EPS growth net of adjustments and assuming no substantial adverse change in the broader economic or credit cycles.Pulling up, in 2017 we advanced our quest to building an enduringly great franchise with the scale, brand, capabilities, and infrastructure to succeed as the digital revolution transforms our industry and our society. We made strategic moves to position our businesses for long-term success. We continue to grow and serve customers with ingenuity and humanity. Our digital and technology transformation is accelerating and we delivered solid near-term financial results for shareholders while investing in our future.

We continue to be in a strong position to deliver attractive growth in returns as well as significant capital distribution subject to regulatory approval and market conditions.Now, Scott and I will be happy to answer your questions.

Jeff Norris --

Thank you, Rich. We'll now start the Q&A session. As a courtesy to other investors and analysts who may wish to ask a question, please limit yourself to one question plus a single follow-up. If you have any follow-up questions after the Q&A session, the Investor Relations team will be available after the call.Leanne, please start the Q&A.

Questions and Answers:

Operator

Thank you. If you would like to ask a question, please signal by pressing *1 on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, please press *1 to ask a question.

And our first question comes from Ryan Nash with Goldman Sachs.

Ryan Nash -- Goldman Sachs -- Analyst

Hey, good evening, guys. Rich, maybe you could expand a little bit on the last comment regarding accelerating of EPS. I guess, one, would that exclude the benefits of tax? And when I look back on 2017, you made $7.74, there was almost $0.50 of notable items, you had business exists like mortgage, parts of wealth. So could you maybe discuss or give us a little bit more color on the components of the accelerating EPS? And I have one follow-up.

Scott Blackley -- Chief Financial Officer

Ryan, this is Scott. I'm going to start and talk about kind of some of the items that were in 2017. If you think about it, in this business we always have a few things that come and go. We make decisions about trade-offs along the way.

So we feel like $7.74 is a good benchmark to start our guidance for 2018. Beyond that, I would just say that we called those items out as notable because I think they're important for you to understand kind of the trends but, as I mentioned, I think there's trade-offs that we make along the way when we look at those kinds of things. Rich.

Richard Fairbank -- Chairman and Chief Executive Officer

So, Ryan, as you know, we typically do not give EPS guidance and we're not giving a specific 2018 EPS forecast. In the prior quarter we told you that we expected solid EPS growth and then tax reform passed, which is clearly a good guy for EPS growth. Although we expect the benefit to make its way into the marketplace over time, the timing of how that plays out is hard to predict. So, all said, we expect that our current trajectory coupled with the new tax law will enable us to accelerate 2018 EPS growth net of adjustments and assuming no substantial adverse change in the broader economic or credit cycles.

Ryan Nash -- Goldman Sachs -- Analyst

Got it. Maybe I could -- on a different point, so when I think about some of the comments that you made on credit, we have growth math fading, last quarter there was mention of back-book normalization, you have Cabela's plus the impact of tax reform should be positive. So we heard from another issuer that some of their recent vintages have been getting better. So, while I understand that you don't want to give credit guidance or EPS guidance, can you maybe just talk about how you're thinking in terms of credit going forward? And, I guess, a small piece for Scott.

You talked about a small piece in growth math and seasonal growth. How should we think about reserves going forward? Thanks.

Richard Fairbank -- Chairman and Chief Executive Officer

Yeah, we've said that in 2018 growth math still has a small upward tail and then eventually it becomes actually a good guy in the long run. The earlier advantages of our front-book vintage 2014 and 2015 has stabilized and eventually they'll start coming down gradually and I think that would be our expectation. Now, of course, losses on the newer vintages of our front-book 2016 and after, which are earlier in their seasoning process, are still increasing. So, when we take the blend of all that, the risk of the overall front book is still increasing modestly in 2018, but we're getting pretty close to the point when maturation on earlier vintages of growth fully offsets the impact of newer growth and this is all, again, kind of what we call growth math.

Scott Blackley -- Chief Financial Officer

Ryan, just to come to your last question on reserves, from here going forward, I think that the biggest drivers of what's going to impact the allowance, as Rich said, really are the things that are going to be impacting our overall loss rate, which are broader industry events and trends, economic factors, and the growth that we have during each period.

Richard Fairbank -- Chairman and Chief Executive Officer

Next question, please.

Operator

And our next question comes from Sanjay Sakhrani with KBW.

Sanjay Sakhrani -- KBW -- Analyst

Thank you. Good evening. Maybe to approach Ryan's question a little bit differently, when we think about expenses in 2018, I think, Rich, you talked about the efficiency ratio at 51% and the fact that marketing might go higher. Could you talk about how that efficiency ratio might trend through 2018 as you're reinvesting a little bit of the upside from tax?

Richard Fairbank -- Chairman and Chief Executive Officer

Well, my primary comment about the tax effect was how we think over time and I think there are some parallels that I've seen in the past of how these things have a way of making their way into the marketplace. So, again, that one we'll have to see over time. With respect to the efficiency ratio, we've been working so hard on this and it's kind of a blend of what I might call old-school and new-school progress, old school being the classic really work hard and drive every penny of savings, and new school of course really is leveraging the benefits of the extraordinary technology transformation that is literally going to change everything about how the industry works, it's certainly going to change everything about how Capital One works and change how the business works, how the customer interaction model works, and it will affect how we work and the nature of our underlying operating model. Now, that takes many, many years.

That's a continuous, evolving process but we've seen 300 basis points over the last couple of years of benefits, and that's a blend of the old-school and new-school kind of thing. We are not making any specific guidance about 2018 and frankly, efficiency ratio can vary in any given year, but I think over the long run we continue to believe that we can achieve gradual efficiency improvements driven by growth and the many types of productivity gains that come from technology transformation.

Sanjay Sakhrani -- KBW -- Analyst

OK. And maybe on credit quality specifically, when we think about where the opportunities might arise going forward, I mean, is there a greater opportunity to go a little bit more down-market as a result of some of the tax benefits in terms of profitability? I mean, can that impact credit quality as we look ahead? And then just to clarify on taxi medallion, I mean, should we expect that that portfolio will be sold and there wouldn't be any major impacts going forward?

Richard Fairbank -- Chairman and Chief Executive Officer

Yeah, why don't I start with the taxi medallion? So, as I mentioned in my prepared remarks, we put the majority of that book in held-for-sale. That means that I've got an expectation that we're going to be able to sell that within a reasonable period of time. We marked it at a price that we thought was a reasonable estimate of where that would clear the market. So, while we'll have to see where that settles out, we feel pretty good that we've put that risk principally behind us and that we won't be talking about that any further but, again, that's a portfolio that at this point's going to be carried at the lower cost to market.

So, if we did see any adjustments, we would make those along the way.

Scott Blackley -- Chief Financial Officer

With respect to the tax reform, the impact on the U.S. consumer and maybe specifically the subprime consumer, I'll give you just a few thoughts on that. I think it's hard to predict how this will play out. It's likely there will be positive effects both to the consumer and to the broader economy.

While there is some direct benefits to the consumer, I think with respect to this particular tax reform, the primary benefits of this are indirect and they're going to play out over time and in many ways it's a little bit flipside of the same coin of what I was saying with respect to what happens to the tax windfall relative to company, and I believe firmly that it just over time makes its way into the marketplace in terms of more competition, lower pricing, higher wages, more investment, and these things do have an impact on consumers. Now, with respect to the subprime consumer, it's possible that this might have a stronger impact. More subprime borrowers struggle with day-to-day expenses and a modest increase in wages and take-home pay will likely have somewhat differential impact, but I think we shouldn't exaggerate this impact because many subprime borrowers are doing well in the current economy with relatively solid incomes. So we are not baking any impacts into our outlooks for subprime credit, although we're certainly hopeful that tax reform will have a benefit.

I do want to put a cautionary note relative to the credit opportunity and that is because my primary point about tax reform and trying to predict how it plays out is one of predicting competitive effects and the way things move into the marketplace, as you know, I think the biggest driver, I mean, other than very big changes in the economy, the biggest driver of our appetite to grow credit and particularly in this segment is really driven by the supply and demand that we see in the credit marketplace. I think there's an interesting lesson -- I myself want to go back and dust it off a little bit from the '05 bankruptcy reform -- the 2005 bankruptcy reform created somewhat of a windfall in the marketplace and in that period of time. Now, of course, there were a lot of factors going on but we saw that windfall make its way into the marketplace in the form of more marketing, more aggressive pricing, and frankly, in that particular case also and, again there are other things going on, more aggressive underwriting. So, at the end of the day, the competitive intensity became problematic.

So I think -- we're going to have to see how this thing plays out but we are not putting into our credit forecast or really our business growth forecast the direct impact of this because we're going to watch as it plays out but if I pull up, I'm hopeful that we can find some more growth opportunities in the near term by overall how the marketplace appears to us and one factor would be this one.

Richard Fairbank -- Chairman and Chief Executive Officer

Next question, please.

Operator

And our next question comes from Don Fandetti with Wells Fargo.

Don Fandetti -- Wells Fargo -- Analyst

Rich, if you look at the December domestic card delinquencies on a year-over-year basis, it actually improved a little bit again in December. Can you talk a little bit about how you see that trending? And then I think in the past on the charge-off rate in cards you sort of had called it out when you expected the move. So is no news good news, meaning that maybe you could kind of hang out around the sort of low 5% range?

Richard Fairbank -- Chairman and Chief Executive Officer

Don, I think our domestic card charge-off rate increased on a month-over-month basis by 21 basis points between November and December and that's kind of in line with what we would expect from normal seasonality. Now, when things come in just consistent with seasonality, that's a good thing because there's also other effects, growth math and things going on. We certainly saw that as a good month. On a year-over-year basis, the increase in our December losses was a few basis points more than November, but the underlying trend of moderating year-over-year increases is clear.

So it's another month of performance that's consistent with our own expectations of how growth math works, but with every month that plays out, we like the confirmation of that. So we view it as a good thing but, again, notice our guidance about a small tail of growth math, etc. Our commentary on this is really unchanged from the last quarter and frankly, several quarters but this is certainly playing out consistent with how we would have expected.

Don Fandetti -- Wells Fargo -- Analyst

Got it. And we were sort of looking ex Cabela's on the delinquencies, but quickly on the auto delinquencies, it looks like they were up a good bit year over year. Was there some time type of one-time adjustment?

Richard Fairbank -- Chairman and Chief Executive Officer

On the auto non-performing loan side, we made an accounting adjustment to include some of the repossessed assets as loans [Inaudible]. That's impacting that. I can't recall anything otherwise that would impact DQs particularly in the quarter. I think the monthly data we've seen this quarter is consistent with our view that we've been talking about, that I think the auto business is really performing quite well and probably the industry right at this moment is performing quite well from a credit point of view.

We worry about the risks that are out there like used car prices in particular and possibly an increase in competitive activity, but for right now my observation is the auto marketplace is in a pretty good place competitively. The competitive intensity stepped up a bit in the fourth quarter, which is why our origination volume was down off the kind of unusually high levels a year ago where the competition has backed off quite a bit but I think we're still seeing generally performance that's consistent with the middle of the cycle and something that confirms our own confidence and happiness about our own our choices and our performance.

Scott Blackley -- Chief Financial Officer

Now, next question, please.

Operator

And we'll take our next question from Betsy Graseck with Morgan Stanley.

Betsy Graseck -- Morgan Stanley -- Analyst

Hi, good evening. How are you? I have two questions. One, just on the growth math, how much growth math do you think was in this quarter versus the prior quarter? I was just trying to understand if we saw some deceleration already that you're looking for.

Richard Fairbank -- Chairman and Chief Executive Officer

We are seeing a deceleration but my point is, I mean, yes we've seen it in the second half, we saw the deceleration in the third quarter, I'm speaking of our growth math itself, and that's the impact on the year-over-year loss rate driven by our front book. So we saw deceleration in the third quarter and again in the fourth quarter. I mean, every quarter there's a small effect but it's all part of the natural phenomenon here and I think that's why we expect a small tail in 2018.

Betsy Graseck -- Morgan Stanley -- Analyst

OK. And then just a follow-up on the use of the tax benefit. You're in a position where you could have a pretty important impact on your earnings if you ratchet up the marketing, and I get your point that in prior periods when you had one-time changes, there was a lot of heavy competition that might not have had a long-tail benefit to it, but we're in a different spot now with a pretty permanent decline in the tax rate. So, I'm just wondering if you think that given that more permanent tax rate change, does it make sense to wait and see what others do or take a leader position in trying to get that incremental customer in the door with the stepped-up marketing program? Why wait to see what competitors do?

Richard Fairbank -- Chairman and Chief Executive Officer

Well, Betsy, I think that we have a hypothesis about how this thing plays out over time. In Capital One we carry an investment agenda that we believe very much in and that we will continue to invest in. I think we feel pretty good about the growth opportunities better there. We're going to take advantage of them but I think we're going to continue doing the kind of things that we've been doing.

And my kind of two points about the tax law is one, we're reluctant to give guidance to investors about how much this is going to drop to the bottom line because I think it will have a way over time to make its way into the marketplace and of course we're going to need to respond to that. And my other point is that I think there will be an impact that it has on the consumer, and I think in the near term particularly some of those may be good but I think we feel pretty good about our growth opportunities. Marketing is going to be a little up over last year and we're going to just watch very carefully how this plays out. I'm struck by others who are so confident about what percent of the tax impact is going to fall to the bottom line because I don't feel that we have that particular ability to predict this because I think it's a marketplace thing.

Scott Blackley -- Chief Financial Officer

Next question, please.

Operator

And we'll take our next question from Chris Brendler with Buckingham.

Chris Brendler -- Buckingham Research -- Analyst

Hi, thanks. Good evening. I just wanted to talk about the domestic card business for a second. The growth ex Cabela's has slowed down to low single digits.

It's obviously a competitive market, but you're still out there with pretty aggressive marketing on both Quicksilver and Venture products. Is that something that you expect to rebound in '18 or is this the new normal?

Richard Fairbank -- Chairman and Chief Executive Officer

I think you've seen our purchase volume metrics there and the purchase volume growth continues to be pretty strong. The slower growth of Capital One outstandings is probably partly a comment on the marketplace a little bit, the direct impact of the marketplace but I think it's more so a comment about the choices that we have made. So, I want to kind of think back to the last, really back to 2014. In sort of early to mid-2014 we said that we anticipate an outside growth benefit and told the marketplace we expected to grow significantly.

And in the second half of 2014 all through 2015 and into 2016 we grew pretty much at the top of the lead tables. Around that time we started flagging that we are concerned about certain competitive supply issues out there, we're very carefully monitoring what's going on in our own metrics and we started to dial back a bit, not a huge dial-back, but dial back progressively around the edges in 2016. In early 2017, if you remember when we said that we saw in our own data and in industry data a GAAPing out of vintage curves a bit in the second quarter 2016 vintage and we said it's striking that it happened but it's not surprising because this is sort of a natural effect. So, over this period of time, as the marketplace has been increasing in supply, we have dialed back and want to be sure that we can get confirmation about exactly where that read is with respect to the consumer and the impact of competition.

Over the course of this year, competitive intensity has settled out a little bit, the growth of revolving credit has slowed down, it's still above GDP growth, of course, but I think there are a number of signs that things are settling out a little bit and that's a good sign. What we worry about is whether things rapidly go toward a bad place competitively and I don't think that is happening. So, hopefully, there will be a little more growth opportunity next year than there was this year but I think mostly the numbers on the outstanding side that you see from Capital One are really a reflection of choices on our part and the marketing that we're doing and the products that we are selling we feel very good about and, I think, are generating nice results.

Chris Brendler -- Buckingham Research -- Analyst

Great, thanks. And then in follow-up, I'll ask about deposits. The consumer deposit costs picked up a little bit this quarter. You also saw some decent growth in the consumer deposits.

I get the question all the time about your online deposit business and how robust that business is and how susceptible it is to rising rates. My sense is it's doing pretty well. It's just hard to see with your [Inaudible] disclosures. Can you just talk about the deposit pricing environment and what you see going forward, maybe a little bit of focus on online versus offline? Thanks.

Richard Fairbank -- Chairman and Chief Executive Officer

Yeah, I think if you want to understand Capital One on the deposit side, the first thing I would say is just study direct banking and study local banking because we're a blend of the two and our deposit pricing will reflect that blend over time. For example, at the end of last year we made some pricing moves and a little bit at the beginning of this year that will make their way into our numbers as we make sure on the direct side of the business that we stay in a reasonably competitive place. The other thing to understand about Capital One as you think about our deposit businesses is that we over time are working to build a national business. We have grown a lot.

Our outstandings have grown a lot both from organic growth but also from acquisitions like the GE Healthcare acquisition and Cabela's acquisition. So if you look at the deposit-to-loan ratio, it's on the low end of sort of our norms and over time we would expect that to grow because our assets have grown, they will be growing and we're building a national banking capability. The reason I mention that is that pretty much any bank who is looking to grow its deposits quite a bit will end up paying up more for deposits than a bank who's at the high end of the deposit-to-loan ratio. So, it's really not just an issue of what somebody's beta is.

It's the double strategic question of what the beta of a business is and what is the growth appetite and needs of that particular business.

Scott Blackley -- Chief Financial Officer

Next question, please.

Operator

And we'll take our next question from Rick Shane with JP Morgan.

Rick Shane -- JP Morgan -- Analyst

Thanks, guys, for taking my question. Hey, Scott, one of the things that jumped out to me is the tax rate that you're suggesting for 2018 is substantially lower than many of the other companies we've spoken with. I assume that this is a reflection of differences between GAAP and tax accounting and I'm specifically wondering if this is another signal that charge-offs, which drive tax, are going to potentially [Inaudible] provision, which drives GAAP.

Scott Blackley -- Chief Financial Officer

Rick, I think actually the answer is a bit simpler than that. If you think about Capital One, virtually the lion's share of our income is from U.S. sources. So, taking down the domestic tax rate from 35% to 21% was a huge tailwind for us because that impacts the lion's share of our income.

And then on top of that, if you think about it, we do have some tax-advantaged assets that we own that generates some credits and that's what takes the fully loaded rate inclusive of kind of the estate cost down to the 19% level. So, I don't think there's more to it than that simple explanation.

Rick Shane -- JP Morgan -- Analyst

Got it. It's interesting because historically your tax rate's been a little bit lower but this is substantially lower. Just one quick follow-up question. The $1.62 adjusted number, does that include or exclude the discontinued operations?

Scott Blackley -- Chief Financial Officer

The $1.62 excludes discontinued operations and you can see we've got a slide there in the appendix that gives you the specifics of what we adjusted out.

Richard Fairbank -- Chairman and Chief Executive Officer

Next question, please.

Operator

And we'll take our next question from Bill Carcache with Nomura Instinet.

Bill Carcache -- Nomura Instinet -- Analyst

Thank you. Good evening. Rich, if we see that year-over-year change in delinquencies that you talked about earlier actually turn negative, which doesn't seem that far-fetched given that we were at 70 basis points year over year change back in February down to kind of like around 6 now, and I wonder if you could maybe help us think about whether that could actually provide a basis for releasing reserves, all else equal.

Richard Fairbank -- Chairman and Chief Executive Officer

So, one thing I want to say as you look at the year-over-year change in delinquencies, of course, think about the Cabela's impact that will be in the new numbers and not in the year-ago's numbers. So, all the way up until the fall basically, the fall of next year, there will sort of be that effect. So, we will have to keep that one in mind. So, the year-over-year change in delinquencies or charge-offs or any of these are going to be driven really by a combination of growth math and industry factors.

The good news is the growth math is reaching the latter stages of being a bad guy, if you will. Long run we think it's going to be a gradual good guy but of course, we have the industry effects that I want to make sure we shine a little bit of light on that. We've talked about in the last couple of quarters' earnings calls about back books. If you want to get probably the purest look at sort of industry effects, just go to the securitization trust and just look at everybody's back books and what you will see is for many years everybody's back books were a good guy.

They were improving year over year. And what's striking if you graph the year-over-year change in people's back-book delinquencies and also charge-offs, you just see that packed kind of set of lines that goes from the negative below the horizontal axis, which is a good thing, and it just moves over time to the horizontal axis and even in the last year has been above that, which is a nerdy way to say it's gone from being a good guy to a little bit of a bad guy. So, there are industry effects. It's very natural that at this stage of the cycle there would be industry effects.

And the other thing for each issuer then on top of whatever happens with each of our back books is to think about what's happening to everybody's front books. Capital One is, I think, a little benefited by the fact that we're farther along in that particular journey than some of the other players but it is through everybody's front book that most of the industry normalization happens because it is the credit-hungry people that get the new accounts and that tends to be right there at the frontier of how normalization happens. So, we believe there is an industry effect that is happening, we expect it will continue and how that thing plays out relative to the growth math going over time for us from a bad guy to a neutral guy to a good guy, that's going to, in the end, drive our overall credit numbers.

Bill Carcache -- Nomura Instinet -- Analyst

Thanks, Rich. And if I could just follow up, I think that all the discussion around the things we're talking about with delinquencies bode well for revenue suppression. Can you talk a little bit about how we should think about the trajectory, I guess, on revenue margin? I think there's a lot of focus on slowing growth and the impact that that's having on the top line, but I wonder just if there's some offsetting benefits that we should also be thinking about kind of along those lines. Any thoughts would be helpful.

Thanks.

Scott Blackley -- Chief Financial Officer

Yeah, Bill, it's Scott. So certainly suppression has been driven by the same set of factors that have been impacting the credit metrics and the allowance. So, as those start to moderate, I think that we would certainly expect that suppression will also be driven by broader industry factors and the things that are impacting our overall loss rate.

Richard Fairbank -- Chairman and Chief Executive Officer

Next question, please.

Operator

And we'll take our next question from Ashish [Inaudible] with Deutsche Bank.

Ashish -- Deutsche Bank -- Analyst

Thanks. My question was about when I look at the portfolio, the subprime portfolio has continued to come down from 37% earlier in the year to 34% to end the year in the fourth quarter. Given the underwriting refinements that you've done, should we continue to see that trend continue going forward? And then just as we think about when the growth is coming from higher credit score, does that change the shift between transactors and revolvers and any implications of those on the loan yield? Thanks.

Richard Fairbank -- Chairman and Chief Executive Officer

Yeah, Ashish, I don't think there's any big news with respect to what's happening to the subprime mix at Capital One. I mean, gosh, for how many years has it been that we've been generally around a third. That number did rise during the growth surge of 2014 through 2016, that number rose and I think it's headed back to a little bit more normal level. So, inside Capital One and the conversations we're having, we don't see a big mix conversation happening in every segment and sub-segment.

We look at the market and see what it has to give us and there was a little bit more a few years ago and I think now it's probably more just a kind of normal mix. With respect to transactor versus revolver, that is not much about subprime mix. That is really most driven by the growth in heavy spenders and the success of our efforts to drive purchase volume. And when you look at that growth rate and for many years now it's been outstripping the growth rate of outstandings, it's a manifestation that the transactor component, pending how you define it, the mix of transactor and basically spender inside our portfolio is growing over time.

Ashish -- Deutsche Bank -- Analyst

That's helpful. And then just regarding the window of opportunity, and my understanding is you sounded cautious looking at the competitive environment there, but what are the metrics that you're watching for in particular? You called out a couple of them. So given that competitors have been burnt in the second half of 2016 with aggressive promotions, do you think the large issuers will be a lot more cautious this time around or will they take the benefit of the windfall? So, just any more color on that front. Thanks.

Richard Fairbank -- Chairman and Chief Executive Officer

Yeah. Well, I tend to simplistically look at the marketplace as the revolver marketplace and the spender marketplace and they are two different marketplaces. Certainly the most intense one competitively is the spender marketplace, and we have just seen the sort of steady ratcheting up of rewards and other forms of giveaways, very striking what has happened over the last few years with respect to upfront bonuses. Also, by the way, some of the co-brand products and little bit of an arms race there with respect to some of their offerings, all of this has happened on a pretty gradually intensifying basis over the last several years.

To your point, though, I think it has moderated a bit. Certainly the early spender bonus is moderated a little bit. I mean, this is with a small "b" but a bit of settling out with respect to the spender competitive marketplace but it's settling out at a very intense level and I would guess, from my years of experience in this thing, only the players that have really built a branded franchise-based position in this marketplace are going to be able to continue to grow profitably, and we are one of those and we continue to like our chances, but we certainly watch very carefully that marketplace. And one thing that we are focused on is, because the value of this franchise is primarily driven by how long your customers stay with you -- it's nothing but expensive to get them and they tend to over the long term be an amazing franchise of low attrition and tremendous credit performance and heavy spending and all that nice stuff.

So we tend to be on the low side with respect to going after all the promotional near-term kind of stuff. It's a little -- makes it a harder way to make a living but I think that we like the long-term performance with that philosophy. Certainly the best news in the revolver marketplace has been the stability of pricing over many years. APRs have been stable and actually increasing a little bit over time, and while it's hard to exactly get a really good metric on the industry's APR in this marketplace, I would say I think it has increased a little bit more of that interest rates have.

So, relative to say the middle of the 00s, when things were going crazy, I think that's a good sign relative to the marketplace. To your question, what we worry most about is just the amount of supply and how aggressive people are in expanding credit boxes and going out there. And while I think pricing has been stable, there was some aggressiveness in that revolver marketplace that we were uncomfortable with in 2016 in particular and somewhat in 2017. I think people have dialed back a little bit.

I think things have settled out a little bit and that might be a good sign. So, all in all, I've said this for many years, relative to a lot of markets I've seen, I think the credit card market is intensely competitive but really pretty darn rational and I think there's an opportunity to grow successfully, profitably, and resiliently and we believe that we see that opportunity in front of us.

Scott Blackley -- Chief Financial Officer

Next question, please.

Operator

And our next question comes from Chris Donat with Sandler O'Neill.

Chris Donat -- Sandler O'Neill -- Analyst

Hi. Thanks for taking my question. I wanted to revisit from a little different angle the question of deposit pricing and, Rich, I'm wondering if, with some of the investments you've made in technology over the last few years, if you're in more of a place with deposit pricing where you were decades ago with the other side of the balance sheet on loan pricing and being better able to target or at least market on a more direct basis the competitive advantage that other traditional brick-and-mortar banks don't have. Anyway, I'm just wondering where you think you stand kind of competitively on the technology-related deposit pricing.

Richard Fairbank -- Chairman and Chief Executive Officer

So, I wouldn't say that I think the big advantage that we hope to obtain is the technology for really micro-targeting deposit pricing. There's a lot of investment in that across the industry. I think that technology that I am bullish about being very helpful to us is actually the consumer-facing technology of online banking and being able to have a great online experience combined and built on the shoulders of an infrastructure that we spent years investing from our direct bank and our local bank to modernize and integrate and in a sense rebuild the full technology stack to be able to really credibly offer online banking backed by a thin physical distribution and be able to compete against some of the really great established players. So my bullishness is really more about that technology than necessarily a real advantage in terms of a micro pricing at the margin.

Chris Donat -- Sandler O'Neill -- Analyst

OK, thanks for that. And just one question on your expectations for used-vehicle pricing. You said you're looking for them to be down and that seems appropriately cautious and conservative. Were these expectations that before factoring in the tax act or does that not really factor into how you expect the vehicle prices to play out this year?

Richard Fairbank -- Chairman and Chief Executive Officer

We have not yet ruled any particular assumptions about a tax impact making its way into the used-car pricing. I think if you just look historically at used-car pricing, it is not a lot of science and amazing analysis behind -- honestly, if you just eyeball used-car pricing, it's set for a long, long time at very high levels and while cars, I think, are lasting longer and so on, I think this thing had only one way to go and it has gone down. Interestingly, Manheim does not reflect this, but we have a Capital One Index, our own index, which has a little bit more of a mix of used cars, I mean in older cars, that certainly has gone down. Locally it's been lately stable and even probably rising a bit over the last few months but I think that the way I look at this from an underwriting point of view, it doesn't matter where used-car prices are.

What really matters is where they end up relative to where they were when people underwrote them. So when an industry is sitting near all-time highs, while Capital One puts in our own underwriting, quite a significant decline in used-car pricing, my intuition is the industry just gets too comfortable with the recent history of high used-car prices. So, again, it's not about where you are whether they're high or low. It's just where they are on underwriting versus going forward and I think there is a way higher chance that they're going down from here than that they're going up, and that's concerning from an underwriting point of view.

Scott Blackley -- Chief Financial Officer

Next question, please.

Operator

And we'll take our next question from Moshe Orenbuch with Credit Suisse.

Moshe Orenbuch -- Credit Suisse -- Analyst

Great, thanks. Rich, you had mentioned the prospects of strong growth opportunities and it's been referenced a couple of times in the call that you had some fairly significant deceleration in credit card and a little bit of deceleration in auto and the fact that you think that competitors could get a little more aggressive seeing those big tax benefits. So, maybe if you could just tell us where we should be expecting that growth to come from?

Richard Fairbank -- Chairman and Chief Executive Officer

Yeah. So, first of all, your list is a compelling of things to be concerned about and when I say that I'm hopeful for some enhanced growth opportunity, this is off the base of where we came in, not counting Cabela's and 2% year-over-year growth in the card business. So, it's a bit of a low bar of competition when we're talking about up or down from here but not being flippant about that. So, the negative side the potential impact of competitors getting more aggressive from this windfall and empirically some of the things that we've seen competitively, particularly last year, and also the fairly high levels of growth, of credit, of indebtedness, of revolving credit, for example.

On the positive side is over the last number of quarters a little bit of a reduction in supply, you can feel people trimming in their underwriting a little bit. We also have the benefit of more and more months of watching vintage curves settle out, and no matter how many years I've been in this business, you can believe these things go up and settle out and someday they go down but it's comforting to see them move in the way that we would expect. So, as we get more of our own experience watching these curves settle out and then retro-analyzing on every micro segment and so on, it tends to lend itself to a little bit more of a growth opportunity, but we'll have to see how this plays out. I'm not sitting here saying I really think there is big dramatic growth play here.

I just feel pretty good about the opportunity in card. I think if I could comment on auto, the experience over the last number of years has been the impacts of competition gets amplified in auto because there's an auction, there's an auctioneer sitting in the middle of our lending. So we have seen the value of some competitors backing off in the auto business. You've seen such significant growth from Capital One.

Lately, it's a little bit more competitive than before. I think if I pull way up and calibrate relative to all times in the cycle, I think the growth opportunity is still pretty good in the auto business and the industry dynamics for an industry that is so hypersensitive to supply, I think, are pretty good. Moshe, on the commercial side, we really haven't talked much about that. I think probably for all players, certainly Capital One, at the latter part of the year growth was kind of slow.

Overall though in the commercial space I think that there is a lot of supply out there. I think investors have been pushed out on the risk curve a little bit to seek returns and the impact of non-banks in the lending space is becoming more significant. So, I think our view is pretty moderate there but we'll have to see.

Moshe Orenbuch -- Credit Suisse -- Analyst

Just maybe a quick follow-up on capital. Your capital levels right now are actually just above where they were at the beginning of the CCAR cycle last year. So, how do we think about when you said significant capital distribution, I mean, should we think about comparable amounts to what had been in the plan for '17? As we go forward, recognizing you should have higher levels of earnings in '18.

Richard Fairbank -- Chairman and Chief Executive Officer

Moshe, when you think about capital distribution, I mentioned that we want to see our CET1 kind of drip back to what we think of destination levels as kind of in the mid-10s So, in the near term I think some of the positive effects of tax reform are going to help us to get there while still having room for growth and for capital distribution. And then over time, we'll see exactly how earnings play out and how much competition we see but if there's a windfall from tax reform that is enduring, that certainly gives us more opportunity for growth and for capital distribution.

Scott Blackley -- Chief Financial Officer

Next question, please.

Operator

And we'll take our next question from John Pancari with Evercore.

John Pancari -- Evercore ISI -- Analyst

Good evening. Just another way to ask the vintage question. If I'm looking at the domestic card charge-offs and the current charge-off rate ex Cabela's 5.36, that's up from the 4.64 last quarter. And I know there's seasonality there, but can you tell us how much of that 70-basis-point change was from the front-book growth math versus back-book deterioration? Thanks.

Richard Fairbank -- Chairman and Chief Executive Officer

John, I'm not really going to precisely break those two things out but they were both factors in that and in 2017 the back-book effect grew and the front-book effect over progressive quarters declined consistent with our growth math, but both factors were meaningful in the year-over-year delta but the bigger of the two was the growth math.

John Pancari -- Evercore ISI -- Analyst

OK, all right, that's helpful. Thanks. And then lastly on the auto originations, I heard what you said about it, that it still represents an opportunity for you, the growth in the auto business, but also flagging that it's still somewhat competitive. As we look at originations, I know they were down 5% year over year.

How should we think about overall originations as you look at 2018? Is it fair to assume that we're up low single digits?

Richard Fairbank -- Chairman and Chief Executive Officer

Gosh, we are the company that sets no growth targets for any of our businesses because we believe so strongly that in a risk-management business and a business in which underwriting isn't just an actuarial science, it's very driven by adverse selection and the nature of supply and demand at the margin, we make predictions internally as we budget but if you just look at our prior behavior, in fact, I'll take you back to, I think, it was the last quarter of 2015 when we came in with a really big drop in originations and said that what we have been generally cautioning about really was quite a big deal competitively with respect to some bad practices and the nature of supply. So, we had much lower volumes there. By the time we had fully gotten our investors to internalize our concerns, we posted a very, almost like record origination growth in the following couple of quarters. So, I think what we do is we describe the conditions that we see in that marketplace but as a company that doesn't set growth targets, we work incredibly hard to create growth opportunities but at the end of the day, we take what the market will give us.

And, as I said before, the auto business relative to something like the card business is amplified in the impact of competitive effects. Therefore, we seize the opportunity for as long as we can. We generally like this part of the auto marketplace, where it is, but it is noteworthy that in the fourth quarter we posted a lower origination than we have for some time now and I think that's just because the competitive thing is, in fact, stepping up a little bit.

Scott Blackley -- Chief Financial Officer

Next question, please.

Operator

And our last question for the evening comes from Ken Bruce with Bank of America.

Ken Bruce -- Bank of America -- Analyst

Thanks. Good evening, guys. My question relates to the guidance that the earnings growth will accelerate in 2018 off the 774 benchmark. Most of us, I think, had expected that to occur anyway just with the coiled spring beginning to release some of the earnings growth potential, the tax rate going from high 20s to 19, should really put that on steroids.

I'm trying to kind of figure out if you're just being extremely cautious around or conservative around kind of what that acceleration can be or if you're seeing anything that, as you think about the competitive intensity and the potential for this to be competed away, that it's coming sooner than later. I mean, I think that that would take place over some period of time. This year bank peers are trying to rebuild capital after the other DTA writedown and the likes. So, if you could just maybe kind of give us some thoughts as to kind of where you're most concerned about repricing credit card and auto loans lower or other kind of really aggressive marketing activity that could significantly undermine your earnings growth potential because it seems to me it's going to be really good.

Richard Fairbank -- Chairman and Chief Executive Officer

So, first of all, how we feel about our business and its prospects is very similar to where we were the day before and in fact last quarter when we were talking to you. So, what happened this quarter? Well, along came the tax reform bill. So, first of all, we're the same company with the same kind of feeling about our prospects that we had prior to the tax effect and our point is in the near term the tax thing has to be, I mean, it it's hard to imagine that it couldn't be an important good guy relative to financial performance for ourselves and really everyone else and all we are saying is that we're very reluctant to get in the prediction business and, in fact, not only reluctant to get into the prediction of business but my own experience from just doing this business for over two decades now is I've seen windfalls and shortfalls that hit the industry. Over the next couple of years they have a striking way to make their way into the marketplace.

So, I mentioned the example of the bankruptcy reform in 2005. There was a tax act of 1986. I wasn't born yet, so I'm more [Inaudible] the history books there, but from our little kind of retro study of that not as experts, there was a lot of sort of making its way into the marketplace there. And then, conversely, I've been struck over the years how when the time to get tougher and tighter and there are credit pressures and things like that, that the credit card business in particular has a way of offsetting that with respect to the overall metrics.

So, for example, you know how volatile the credit card charge-offs are and it's a little bit of a scary exercise to take any P&L of the credit card business and then just project the wild volatility that can happen with respect to losses and then you say, "Well, gosh, if losses were that high and you just had all the same things, that would be terrible" or if losses got incredibly good, you would be printing money at a staggering kind of level but the offsetting effects that happen in the marketplace have been striking to me in both directions over the years. So, I look at this and my point is partly we certainly don't want to be in the guidance business about that number but you all can draw your own conclusions. By the way, I want to make it clear we're not going to try to be one that sets an arms race off at all with respect to this. This is more of just a prediction that things have a way of going into the marketplace and my caution to investors would be I wouldn't book this stuff before it totally happens.

The biggest question is not whether. It is when and the timing. And to your point, there is a good case to be made that this is a gradual thing. It's not an immediate thing.

And therefore, particularly in 2018, this, I think, stands to be quite a good guy.

Ken Bruce -- Bank of America -- Analyst

Thank you. And just lastly and hopefully quickly, in terms of the increased competitiveness in auto, are you seeing that in terms of expanding of credit box again or are you seeing in terms of pricing or something else?

Richard Fairbank -- Chairman and Chief Executive Officer

No, I think it's a little local locally thing. We go running down the street waving red flags when we see bad underwriting process and practices. We don't really have anything new to report there. I don't think there's anything dramatic.

I think what is happening is we've had an unusually benign, if you will, period of competition in the 2016 and 2017 period that I think we will look back at that and say it normalized from there and I think that it's just a natural thing. People move into those spaces a little bit more. Some of the folks that maybe had backed off a little bit, particularly one of them is stepping it up a bit and I think all this is natural. So, I think it's much more likely this thing will normalize competitively than that it will be as good as it was for these last couple of years for us.

Jeff Norris -- Senior Vice President of Global Finance

Thank you very much, everyone, for joining us on this conference call today and thank you for your continuing interest in Capital One. Remember the Investor Relations team will be here this evening to answer any further questions you may have. Have a great evening.

Operator

And this concludes today's conference. Thank you for your participation. You may now disconnect.

Duration: 86 minutes

Call Participants:

Jeff Norris -- Senior Vice President of Global Finance

Scott Blackley -- Chief Financial Officer

Richard Fairbank -- Chairman and Chief Executive Officer

Ryan Nash -- Goldman Sachs -- Analyst

Sanjay Sakhrani -- KBW -- Analyst

Don Fandetti -- Wells Fargo -- Analyst

Betsy Graseck -- Morgan Stanley -- Analyst

Chris Brendler -- Buckingham Research -- Analyst

Rick Shane -- JP Morgan -- Analyst

Bill Carcache -- Nomura Instinet -- Analyst

Ashish -- Deutsche Bank -- Analyst

Chris Donat -- Sandler O'Neill -- Analyst

Moshe Orenbuch -- Credit Suisse -- Analyst

John Pancari -- Evercore ISI -- Analyst

Ken Bruce -- Bank of America -- Analyst

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