UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
April 22, 2010
Date of Report (Date of earliest event reported)
CAPITAL ONE FINANCIAL CORPORATION
(Exact name of registrant as specified in its chapter)
| Delaware | 1-13300 | 54-1719854 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 1680 Capital One Drive, McLean, Virginia |
22102 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (703) 720-1000
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | Results of Operations and Financial Condition |
On April 22, 2010, the Company issued a press release announcing its financial results for the first quarter ended March 31, 2010. A copy of the Company’s press release is attached and filed herewith as Exhibit 99.1 and 99.3 to this Form 8-K and is incorporated herein by reference.
| Item 7.01. | Regulation FD Disclosure. |
The Company hereby furnishes the information in Exhibit 99.2 hereto, First Quarter Earnings Presentation for the quarter ended March 31, 2010.
Note: Information in Exhibit 99.2 furnished pursuant to Item 7.01 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD. Furthermore, the information provided in Exhibit 99.2 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.
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| Item 8.01. | Other Events. |
| (a) | See attached press release, at Exhibit 99.1. |
| (b) | Cautionary Factors. |
The attached press release and information provided pursuant to Items 2.02, 7.01 and 9.01 contain forward-looking statements, which involve a number of risks and uncertainties. The Company cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information as a result of various factors including, but not limited to, the following:
| • | general economic and business conditions in the U.S., the UK, or the Company’s local markets, including conditions affecting employment levels, interest rates, consumer income and confidence, spending and savings that may affect consumer bankruptcies, defaults, charge-offs, and deposit activity; |
| • | an increase or decrease in credit losses (including increases due to a worsening of general economic conditions in the credit environment); |
| • | financial, legal, regulatory, tax or accounting changes or actions, including with respect to any litigation matter involving the Company; |
| • | increases or decreases in interest rates; |
| • | the success of the Company’s marketing efforts in attracting and retaining customers; |
| • | the ability of the Company to continue to securitize its credit cards and consumer loans and to otherwise access the capital markets at attractive rates and terms to capitalize and fund its operations and future growth; |
| • | with respect to financial and other products, increases or decreases in the Company’s aggregate loan balances and/or number of customers and the growth rate and composition thereof, including increases or decreases resulting from factors such as shifting product mix, amount of actual marketing expenses made by the Company and attrition of loan balances; |
| • | the amount and rate of deposit growth; |
| • | the Company’s ability to control costs; |
| • | changes in the reputation of or expectations regarding the financial services industry and/or the Company with respect to practices, products or financial condition; |
| • | any significant disruption in the Company’s operations or technology platform; |
| • | the Company’s ability to maintain a compliance infrastructure suitable for its size and complexity; |
| • | the amount of, and rate of growth in, the Company’s expenses as the Company’s business develops or changes or as it expands into new market areas; |
| • | the Company’s ability to execute on its strategic and operational plans; |
| • | any significant disruption of, or loss of public confidence in, the United States Mail service affecting our response rates and consumer payments; |
| • | the ability of the Company to recruit and retain experienced personnel to assist in the management and operations of new products and services; |
| • | changes in the labor and employment market; |
| • | the risk that the cost savings and any other synergies from the Company’s acquisitions may not be fully realized or may take longer to realize than expected; |
| • | disruption from the acquisitions negatively impacting the Company’s ability to maintain relationships with customers, employees or suppliers; |
| • | competition from providers of products and services that compete with the Company’s businesses; and |
| • | other risk factors listed from time to time in the Company’s SEC reports including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2009. |
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| Item 9.01. | Financial Statements, Pro Forma Financial Information and Exhibits. |
| (c) | Exhibits. |
| Exhibit No. |
Description of Exhibit | |
| 99.1 | Press release, dated April 22, 2010. | |
| 99.2 | First Quarter Earnings Presentation. | |
| 99.3 | Reconciliation to GAAP Financial Measures. |
Earnings Conference Call Webcast Information.
Capital One will hold an earnings conference call on April 22, 2010, 5:00 PM Eastern Daylight time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via Capital One’s home page (http://www.capitalone.com). Choose “Investors” to access the Investor Center and view and/or download the earnings press release, a reconciliation to GAAP financial measures and other relevant financial information. The replay of the webcast will be archived on Capital One’s website through June 30, 2010.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned, hereunto duly authorized.
| CAPITAL ONE FINANCIAL CORPORATION | ||||
| Dated: April 22, 2010 | By: | /s/ Gary L. Perlin | ||
| Gary L. Perlin Chief Financial Officer | ||||
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Exhibit 99.1
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
GAAP BASIS *
| (in millions, except per share data and as noted) |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 (8) |
|||||||||||||||
| Earnings |
||||||||||||||||||||
| Net Interest Income |
$ | 3,228.2 | $ | 1,954.2 | $ | 2,005.2 | $ | 1,944.7 | $ | 1,793.0 | ||||||||||
| Non-Interest Income (1) |
1,061.5 | (10)(13) | 1,411.7 | 1,552.4 | 1,232.2 | (5) | 1,089.8 | |||||||||||||
| Total Revenue (2) |
4,289.7 | 3,365.9 | 3,557.6 | 3,176.9 | 2,882.8 | |||||||||||||||
| Provision for Loan Losses |
1,478.2 | 843.7 | 1,173.2 | 934.0 | 1,279.1 | |||||||||||||||
| Marketing Expenses |
180.5 | 188.0 | 103.7 | 134.0 | 162.7 | |||||||||||||||
| Restructuring Expenses |
— | 32.0 | 26.4 | 43.4 | 17.6 | |||||||||||||||
| Operating Expenses (3) |
1,667.2 | 1,728.0 | 1,672.0 | 1,744.3 | (9) | 1,565.0 | ||||||||||||||
| Income (Loss) Before Taxes |
963.8 | 574.2 | 582.3 | 321.2 | (141.6 | ) | ||||||||||||||
| Effective Tax Rate |
25.3 | % | 29.7 | % | 24.9 | % | 28.8 | % | 41.3 | % | ||||||||||
| Income (Loss) From Continuing Operations, Net of Tax |
$ | 719.5 | $ | 403.9 | $ | 437.1 | $ | 228.8 | $ | (83.1 | ) | |||||||||
| Loss From Discontinued Operations, Net of Tax |
(83.2 | )(10) | (28.3 | ) | (43.6 | ) | (6.0 | ) | (25.0 | ) | ||||||||||
| Net Income (Loss) |
$ | 636.3 | $ | 375.6 | $ | 393.5 | $ | 222.8 | $ | (108.1 | ) | |||||||||
| Net Income (Loss) Available to Common Shareholders (F) |
$ | 636.3 | $ | 375.6 | $ | 393.5 | $ | (276.9 | )(11) | $ | (172.3 | ) | ||||||||
| Common Share Statistics |
||||||||||||||||||||
| Basic EPS: (G) |
||||||||||||||||||||
| Income (Loss) From Continuing Operations |
$ | 1.59 | $ | 0.90 | $ | 0.97 | $ | (0.64 | ) | $ | (0.38 | ) | ||||||||
| Loss From Discontinued Operations |
$ | (0.18 | ) | $ | (0.07 | ) | $ | (0.09 | ) | $ | (0.02 | ) | $ | (0.06 | ) | |||||
| Net Income (Loss) |
$ | 1.41 | $ | 0.83 | $ | 0.88 | $ | (0.66 | ) | $ | (0.44 | ) | ||||||||
| Diluted EPS: (G) |
||||||||||||||||||||
| Income (Loss) From Continuing Operations |
$ | 1.58 | $ | 0.89 | $ | 0.96 | $ | (0.64 | ) | $ | (0.38 | ) | ||||||||
| Loss From Discontinued Operations |
$ | (0.18 | ) | $ | (0.06 | ) | $ | (0.09 | ) | $ | (0.02 | ) | $ | (0.06 | ) | |||||
| Net Income (Loss) |
$ | 1.40 | $ | 0.83 | $ | 0.87 | $ | (0.66 | ) | $ | (0.44 | ) | ||||||||
| Dividends Per Common Share |
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.38 | ||||||||||
| Tangible Book Value Per Common Share (period end) (I) |
$ | 22.86 | $ | 27.72 | $ | 26.86 | $ | 24.94 | $ | 23.91 | ||||||||||
| Stock Price Per Common Share (period end) |
$ | 41.41 | $ | 38.34 | $ | 35.73 | $ | 21.88 | $ | 12.24 | ||||||||||
| Total Market Capitalization (period end) |
$ | 18,713.2 | $ | 17,268.3 | $ | 16,064.2 | $ | 9,826.3 | $ | 4,806.6 | ||||||||||
| Common Shares Outstanding (period end) |
451.9 | 450.4 | 449.6 | 449.1 | 392.7 | |||||||||||||||
| Shares Used to Compute Basic EPS |
451.0 | 450.0 | 449.4 | 421.9 | 390.5 | |||||||||||||||
| Shares Used to Compute Diluted EPS |
455.4 | 454.9 | 453.7 | 421.9 | 390.5 | |||||||||||||||
| Reported Balance Sheet Statistics (period average) (A) |
||||||||||||||||||||
| Average Loans Held for Investment |
$ | 134,206 | $ | 94,732 | $ | 99,354 | $ | 104,682 | $ | 103,242 | ||||||||||
| Average Earning Assets |
$ | 181,881 | $ | 143,663 | $ | 145,280 | $ | 150,804 | $ | 145,172 | ||||||||||
| Total Average Assets |
$ | 207,207 | $ | 169,856 | $ | 173,428 | $ | 177,628 | $ | 168,489 | ||||||||||
| Average Interest Bearing Deposits |
$ | 104,017 | $ | 101,144 | $ | 103,105 | $ | 107,033 | $ | 100,886 | ||||||||||
| Total Average Deposits |
$ | 117,530 | $ | 114,597 | $ | 115,883 | $ | 119,604 | $ | 112,137 | ||||||||||
| Average Equity |
$ | 23,681 | $ | 26,518 | $ | 26,002 | $ | 27,668 | (7),(6) | $ | 27,004 | |||||||||
| Return on Average Assets (ROA) |
1.39 | % | 0.95 | % | 1.01 | % | 0.52 | % | (0.20 | )% | ||||||||||
| Return on Average Equity (ROE) |
12.15 | % | 6.09 | % | 6.72 | % | 3.31 | % | (1.23 | )% | ||||||||||
| Return on Average Tangible Common Equity (J) |
29.96 | % | 13.02 | % | 14.75 | % | 6.74 | % | (3.06 | )% | ||||||||||
| Reported Balance Sheet Statistics (period end) (A) |
||||||||||||||||||||
| Loans Held for Investment |
$ | 130,115 | $ | 90,619 | $ | 96,714 | $ | 100,940 | $ | 104,921 | ||||||||||
| Total Assets |
$ | 200,691 | $ | 169,376 | $ | 168,432 | $ | 171,944 | $ | 177,431 | ||||||||||
| Interest Bearing Deposits |
$ | 104,013 | $ | 102,370 | $ | 101,769 | $ | 104,121 | $ | 108,792 | ||||||||||
| Total Deposits |
$ | 117,787 | $ | 115,809 | $ | 114,503 | $ | 116,724 | $ | 121,116 | ||||||||||
| Tangible Assets (D) |
$ | 186,647 | $ | 155,516 | $ | 154,315 | $ | 157,778 | $ | 163,230 | ||||||||||
| Tangible Common Equity (TCE) (E) |
$ | 10,330 | $ | 12,483 | $ | 12,075 | $ | 11,200 | $ | 9,388 | ||||||||||
| Tangible Common Equity to Tangible Assets Ratio (H) |
5.53 | % | 8.03 | % | 7.82 | % | 7.10 | %(6) | 5.75 | % | ||||||||||
| Performance Statistics (Reported) Quarter over Quarter (A) |
||||||||||||||||||||
| Net Interest Income Growth (12) |
65 | % | (3 | )% | 3 | % | 8 | % | (1 | )% | ||||||||||
| Non Interest Income Growth (12) |
(25 | )% | (9 | )% | 26 | % | 13 | % | (20 | )% | ||||||||||
| Revenue Growth (12) |
27 | % | (5 | )% | 12 | % | 10 | % | (9 | )% | ||||||||||
| Net Interest Margin |
7.10 | % | 5.44 | % | 5.52 | % | 5.16 | % | 4.94 | % | ||||||||||
| Revenue Margin |
9.43 | % | 9.37 | % | 9.80 | % | 8.43 | % | 7.94 | % | ||||||||||
| Risk-Adjusted Margin (B) |
5.00 | % | 6.07 | % | 6.69 | % | 5.46 | % | 4.81 | % | ||||||||||
| Non-Interest Expense as a % of Average Loans Held for Investment (annualized) |
5.51 | % | 8.23 | % | 7.26 | % | 7.34 | % | 6.76 | % | ||||||||||
| Efficiency Ratio (C) |
43.07 | % | 56.92 | % | 49.91 | % | 59.12 | % | 59.93 | % | ||||||||||
| Asset Quality Statistics (Reported) (A) |
||||||||||||||||||||
| Allowance (4) |
$ | 7,752 | $ | 4,127 | $ | 4,513 | $ | 4,482 | $ | 4,648 | ||||||||||
| Allowance as a % of Reported Loans Held for Investment (4) |
5.96 | % | 4.55 | % | 4.67 | % | 4.44 | % | 4.43 | % | ||||||||||
| Net Charge-Offs (4) |
$ | 2,018 | $ | 1,185 | $ | 1,128 | $ | 1,117 | $ | 1,138 | ||||||||||
| Net Charge-Off Rate (4) |
6.01 | % | 5.00 | % | 4.54 | % | 4.28 | % | 4.41 | % | ||||||||||
| 30+ day performing delinquency rate (4) |
4.22 | % | 4.13 | % | 4.12 | % | 3.71 | % | 3.65 | % | ||||||||||
| Full-time equivalent employees (in thousands) |
25.9 | 25.9 | 26.0 | 26.6 | 27.5 | |||||||||||||||
| * | Effective January 1, 2010, Capital One adopted two new accounting standards that resulted in the consolidation of the majority of the Company’s credit card securitization trusts. The adoption of these new accounting standards resulted in the addition of approximately $41.9 billion of assets, consisting primarily of credit card loan receivables, and a reduction of $2.9 billion in stockholders’ equity as of January 1, 2010. Prior periods have not been adjusted as the impacts of the new standard are on a prospective basis. See the accompanying schedule “Impact of Adopting New Accounting Guidance”. While the adoption of these new accounting standards has a significant impact on the comparability of the Company’s GAAP financial results subsequent to adoption, it is now comparable to the Company’s results on a “managed” basis. |
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CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
MANAGED BASIS * (for 2009 data)
| (in millions) |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 (8) |
|||||||||||||||
| Earnings |
||||||||||||||||||||
| Net Interest Income |
$ | 3,228.2 | $ | 3,170.1 | $ | 3,212.0 | $ | 2,957.4 | $ | 2,750.0 | ||||||||||
| Non-Interest Income (1) |
1,061.5 | (10)(13) | 1,198.9 | 1,372.7 | 1,189.5 | (5) | 985.7 | |||||||||||||
| Total Revenue (2) |
$ | 4,289.7 | $ | 4,369.0 | $ | 4,584.7 | $ | 4,146.9 | $ | 3,735.7 | ||||||||||
| Provision for Loan Losses |
1,478.2 | 1,846.8 | 2,200.3 | 1,904.0 | 2,132.0 | |||||||||||||||
| Marketing Expenses |
180.5 | 188.0 | 103.7 | 134.0 | 162.7 | |||||||||||||||
| Restructuring Expenses |
— | 32.0 | 26.4 | 43.4 | 17.6 | |||||||||||||||
| Operating Expenses (3) |
1,667.2 | 1,728.0 | 1,672.0 | 1,744.3 | (9) | 1,565.0 | ||||||||||||||
| Income (Loss) Before Taxes |
963.8 | 574.2 | 582.3 | 321.2 | (141.6 | ) | ||||||||||||||
| Effective Tax Rate |
25.3 | % | 29.7 | % | 24.9 | % | 28.8 | % | 41.3 | % | ||||||||||
| Income (Loss) From Continuing Operations, Net of Tax |
$ | 719.5 | $ | 403.9 | $ | 437.1 | $ | 228.8 | $ | (83.1 | ) | |||||||||
| Loss From Discontinued Operations, Net of Tax |
(83.2 | )(10) | (28.3 | ) | (43.6 | ) | (6.0 | ) | (25.0 | ) | ||||||||||
| Net Income (Loss) |
$ | 636.3 | $ | 375.6 | $ | 393.5 | $ | 222.8 | $ | (108.1 | ) | |||||||||
| Net Income (Loss) Available to Common Shareholders (F) |
$ | 636.3 | $ | 375.6 | $ | 393.5 | $ | (276.9 | )(11) | $ | (172.3 | ) | ||||||||
| Common Share Statistics |
||||||||||||||||||||
| Basic EPS: (G) |
||||||||||||||||||||
| Income (Loss) From Continuing Operations |
$ | 1.59 | $ | 0.90 | $ | 0.97 | $ | (0.64 | ) | $ | (0.38 | ) | ||||||||
| Loss From Discontinued Operations |
$ | (0.18 | ) | $ | (0.07 | ) | $ | (0.09 | ) | $ | (0.02 | ) | $ | (0.06 | ) | |||||
| Net Income (Loss) |
$ | 1.41 | $ | 0.83 | $ | 0.88 | $ | (0.66 | ) | $ | (0.44 | ) | ||||||||
| Diluted EPS: (G) |
||||||||||||||||||||
| Income (Loss) From Continuing Operations |
$ | 1.58 | $ | 0.89 | $ | 0.96 | $ | (0.64 | ) | $ | (0.38 | ) | ||||||||
| Loss From Discontinued Operations |
$ | (0.18 | ) | $ | (0.06 | ) | $ | (0.09 | ) | $ | (0.02 | ) | $ | (0.06 | ) | |||||
| Net Income (Loss) |
$ | 1.40 | $ | 0.83 | $ | 0.87 | $ | (0.66 | ) | $ | (0.44 | ) | ||||||||
| Dividends Per Common Share |
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.38 | ||||||||||
| Tangible Book Value Per Common Share (period end) (I) |
$ | 22.86 | $ | 27.72 | $ | 26.86 | $ | 24.94 | $ | 23.91 | ||||||||||
| Stock Price Per Common Share (period end) |
$ | 41.41 | $ | 38.34 | $ | 35.73 | $ | 21.88 | $ | 12.24 | ||||||||||
| Total Market Capitalization (period end) |
$ | 18,713.2 | $ | 17,268.3 | $ | 16,064.2 | $ | 9,826.3 | $ | 4,806.6 | ||||||||||
| Common Shares Outstanding (period end) |
451.9 | 450.4 | 449.6 | 449.1 | 392.7 | |||||||||||||||
| Shares Used to Compute Basic EPS |
451.0 | 450.0 | 449.4 | 421.9 | 390.5 | |||||||||||||||
| Shares Used to Compute Diluted EPS |
455.4 | 454.9 | 453.7 | 421.9 | 390.5 | |||||||||||||||
| Managed Balance Sheet Statistics (period average) (A) |
||||||||||||||||||||
| Average Loans Held for Investment |
$ | 134,206 | $ | 138,184 | $ | 143,540 | $ | 148,013 | $ | 147,182 | ||||||||||
| Average Earning Assets |
$ | 181,881 | $ | 183,899 | $ | 185,874 | $ | 191,208 | $ | 186,614 | ||||||||||
| Total Average Assets |
$ | 207,207 | $ | 210,425 | $ | 214,655 | $ | 218,402 | $ | 210,169 | ||||||||||
| Average Interest Bearing Deposits |
$ | 104,017 | $ | 101,144 | $ | 103,105 | $ | 107,033 | $ | 100,886 | ||||||||||
| Total Average Deposits |
$ | 117,530 | $ | 114,597 | $ | 115,883 | $ | 119,604 | $ | 112,137 | ||||||||||
| Average Equity |
$ | 23,681 | $ | 26,518 | $ | 26,002 | $ | 27,668 | (7),(6) | $ | 27,004 | |||||||||
| Return on Average Assets (ROA) |
1.39 | % | 0.77 | % | 0.81 | % | 0.42 | % | (0.16 | )% | ||||||||||
| Return on Average Equity (ROE) |
12.15 | % | 6.09 | % | 6.72 | % | 3.31 | % | (1.23 | )% | ||||||||||
| Return on Average Tangible Common Equity (J) |
29.96 | % | 13.02 | % | 14.75 | % | 6.74 | % | (3.06 | )% | ||||||||||
| Managed Balance Sheet Statistics (period end) (A) |
||||||||||||||||||||
| Loans Held for Investment |
$ | 130,115 | $ | 136,803 | $ | 140,990 | $ | 146,117 | $ | 149,730 | ||||||||||
| Total Assets |
$ | 200,691 | $ | 212,143 | $ | 209,683 | $ | 214,174 | $ | 219,958 | ||||||||||
| Interest Bearing Deposits |
$ | 104,013 | $ | 102,370 | $ | 101,769 | $ | 104,121 | $ | 108,792 | ||||||||||
| Total Deposits |
$ | 117,787 | $ | 115,809 | $ | 114,503 | $ | 116,724 | $ | 121,116 | ||||||||||
| Tangible Assets(D) |
$ | 186,647 | $ | 198,283 | $ | 195,566 | $ | 200,008 | $ | 205,756 | ||||||||||
| Tangible Common Equity (TCE) (E) |
$ | 10,330 | $ | 12,483 | $ | 12,075 | $ | 11,200 | $ | 9,388 | ||||||||||
| Tangible Common Equity to Tangible Assets Ratio (H) |
5.53 | % | 6.30 | % | 6.17 | % | 5.60 | %(6) | 4.56 | % | ||||||||||
| Performance Statistics (Managed) Quarter over Quarter (A) |
||||||||||||||||||||
| Net Interest Income Growth (12) |
2 | % | (1 | )% | 9 | % | 8 | % | (1 | )% | ||||||||||
| Non Interest Income Growth (12) |
(11 | )% | (13 | )% | 15 | % | 21 | % | (17 | )% | ||||||||||
| Revenue Growth (12) |
(2 | )% | (5 | )% | 11 | % | 11 | % | (5 | )% | ||||||||||
| Net Interest Margin |
7.10 | % | 6.90 | % | 6.91 | % | 6.19 | % | 5.89 | % | ||||||||||
| Revenue Margin |
9.43 | % | 9.50 | % | 9.87 | % | 8.68 | % | 8.01 | % | ||||||||||
| Risk-Adjusted Margin (B) |
5.00 | % | 4.74 | % | 5.23 | % | 4.31 | % | 3.74 | % | ||||||||||
| Non-Interest Expense as a % of Average Loans Held for Investment (annualized) |
5.51 | % | 5.64 | % | 5.02 | % | 5.19 | % | 4.74 | % | ||||||||||
| Efficiency Ratio (C) |
43.07 | % | 43.85 | % | 38.73 | % | 45.29 | % | 46.25 | % | ||||||||||
| Asset Quality Statistics (Managed) (A) |
||||||||||||||||||||
| Net Charge-Offs (4) |
$ | 2,018 | $ | 2,188 | $ | 2,155 | $ | 2,087 | $ | 1,991 | ||||||||||
| Net Charge-Off Rate (4) |
6.01 | % | 6.33 | % | 6.00 | % | 5.64 | % | 5.41 | % | ||||||||||
| 30+ day performing delinquency rate (4) |
4.22 | % | 4.73 | % | 4.55 | % | 4.10 | % | 4.10 | % | ||||||||||
| Full-time equivalent employees (in thousands) |
25.9 | 25.9 | 26.0 | 26.6 | 27.5 | |||||||||||||||
| * | In addition to analyzing the Company’s results on a reported basis, management evaluates Capital One’s results on a “managed” basis, which is a non-GAAP financial measure. Capital One also analyzes the results of each of its lines of business on a “managed” basis. Capital One’s managed results reflect the Company’s reported results, adjusted to reflect the consolidation of the majority of the Company’s credit securitization trusts. Because of the January 1, 2010, adoption of the new consolidation accounting standards, the Company’s consolidated reported results subsequent to January 1, 2010 will be comparable to its consolidated results on a “managed” basis. The accompanying Exhibit “Reconciliation to GAAP Financial Measures” presents a reconciliation of the Company’s non-GAAP “managed” results to its GAAP results for periods prior to January 1, 2010. See the accompanying schedule “Impact of Adopting New Accounting Guidance” for additional information on the impact of new accounting standards. |
Page 2
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY NOTES
| (1) | Includes the impact from the change in fair value of retained interests, including the interest-only strips, which totaled $(35.7) million in Q1 2010, $55.3 million in Q4 2009, $37.3 million in Q3 2009, $(114.5) million in Q2 2009 and $(128.0) million in Q1 2009. For Q1 2010, the amounts relate solely to the deconsolidation of certain mortgage related investments as all other retained interests and interest only strips were eliminated with the adoption of the new accounting standards. |
| (2) | In accordance with the Company’s finance charge and fee revenue recognition policy, amounts billed to customers but not recorded as revenue totaled: $354.4 million in Q1 2010, $490.4 million in Q4 2009, $517.0 million in Q3 2009, $571.9 million in Q2 2009 and $544.4 million in Q1 2009. |
| (3) | Includes core deposit intangible amortization expense of $52.1 million in Q1 2010, $53.8 million in Q4 2009, $55.5 million in Q3 2009, $57.2 million in Q2 2009, $49.4 million in Q1 2009, and integration costs of $16.7 million in Q1 2010, $22.1 million in Q4 2009, $10.7 million in Q3 2009, $8.8 million in Q2 2009, $23.6 million in Q1 2009. |
| (4) | Allowance as a % of Loans Held for Investment, Net Charge-off Rate and 30+ Day Performing Delinquency Rate include period end loans held for investment and average loans held for investment acquired as part of the Chevy Chase Bank, FSB (CCB) acquisition. The metrics excluding such loans are as follows. The net charge-off dollars were unchanged. |
| Q1 2010 | Q4 2009 | Q3 2009 | Q2 2009 | Q1 2009 | ||||||||||||||||
| CCB period end acquired loan portfolio (in millions) |
$ | 6,799.4 | $ | 7,250.5 | $ | 7,885.0 | $ | 8,643.5 | $ | 8,858.9 | ||||||||||
| CCB average acquired loan portfolio (in millions) |
$ | 7,037.3 | $ | 7,511.9 | $ | 8,028.8 | $ | 8,498.9 | $ | 3,072.8 | ||||||||||
| Allowance as a % of loans held for investment |
6.29 | % | 4.95 | % | 5.08 | % | 4.86 | % | 4.84 | % | ||||||||||
| Net charge-off rate (GAAP) |
6.35 | % | 5.44 | % | 4.94 | % | 4.65 | % | 4.54 | % | ||||||||||
| Net charge-off rate (Managed) |
6.35 | % | 6.70 | % | 6.36 | % | 5.98 | % | 5.53 | % | ||||||||||
| 30+ day performing delinquency rate (GAAP) |
4.46 | % | 4.49 | % | 4.48 | % | 4.06 | % | 3.99 | % | ||||||||||
| 30+ day performing delinquency rate (Managed) |
4.46 | % | 4.99 | % | 4.82 | % | 4.36 | % | 4.36 | % | ||||||||||
| (5) | In Q2 2009, the Company elected to convert and sell 404,508 shares of MasterCard class B common stock, which resulted in a gain of $65.5 million that is included in non-interest income. |
| (6) | Includes the impact of the issuance of 56,000,000 common shares at $27.75 per share on May 14, 2009. |
| (7) | Average equity includes the impact of the Company’s participation in the U.S. Treasury’s Capital Purchase Program. On June 17, 2009, the Company repurchased from the U.S. Treasury for approximately $3.57 billion all 3,555,199 preferred shares issued in Q4 2008, including accrued dividends. The warrants to purchase common shares were sold by the U.S. Treasury on December 11, 2009 at a price of $11.75 per warrant. The sale by the US Treasury had no impact on the Company’s equity. The warrants remain outstanding and are included in paid-in capital on the balance sheet. |
| (8) | Effective February 27, 2009, the Company acquired Chevy Chase Bank, FSB for $475.9 million, which included $9.8 billion in loans and $13.6 billion in deposits. The Company paid cash of $445.0 million and issued 2.6 million common shares valued at $30.9 million. |
| (9) | Includes the FDIC Special Assessment of $80.5 million. |
| (10) | During Q1 2010, the Company recorded charges of $224.4 million related to representation and warranty matters. A portion of this expense is recorded in Discontinued Operations and the remainder is in Non-Interest Income. |
| (11) | Includes the impact from dividends of $38.0 million on preferred shares and from the accretion of $461.7 million of the discount on preferred shares. With the repayment of the preferred shares to the U.S. Treasury, the recognition of the remaining accretion was accelerated to Q2 2009 and accounted for as a dividend. Subsequent to this transaction, there is no difference between net income (loss) and net income (loss) available to common shareholders. |
| (12) | Prior period amounts have been recalculated to conform with current period presentation. |
| (13) | During Q1 2010, certain mortgage trusts were deconsolidated based on the sale of interest-only bonds associated with the trusts. The net effect of the deconsolidation of $127 million of income is included in non interest income. |
STATISTICS / METRIC CALCULATIONS
| (A) | Calculated based on continuing operations, except for Average equity and Return on Average Equity (ROE), which are based on the Company’s average stockholders’ equity. |
| (B) | Calculated based on total revenue less net charge-offs divided by average earning assets, expressed as a percentage. |
| (C) | Calculated based on non-interest expense less restructuring expense divided by total revenue. |
| (D) | Consists of reported or managed assets less intangible assets, which is considered a non-GAAP measure. See page 4, Reconciliation To GAAP Financial Measures for a reconciliation of this measure to the reported common equity ratio. |
| (E) | Consists of stockholders’ equity less preferred shares and intangible assets and the related deferred tax liabilities. |
| (F) | Consists of net income (loss) less dividends on preferred shares. |
| (G) | Calculated based on net income (loss) available to common shareholders. |
| (H) | Tangible Common Equity to Tangible Assets Ratio (“TCE Ratio”) is considered a non-GAAP measure. See page 4, Reconciliation To GAAP Financial Measures for a reconciliation of this measure to the reported common equity ratio. |
| (I) | Calculated based on tangible common equity divided by common shares outstanding. |
| (J) | Calculated based on income from continuing operations divided by average tangible common equity. See page 4, Reconciliation To GAAP Financial Measures for a reconciliation of average equity to average tangible common equity. |
Page 3
CAPITAL ONE FINANCIAL CORPORATION
Reconciliation to GAAP Financial Measures
(dollars in millions)(unaudited)
The table below presents a reconciliation of tangible common equity and tangible assets, which are the components used to calculate the reconciliation of the non-GAAP tangible common equity “TCE” ratio, to the comparable GAAP measures. The Company believes the non-GAAP TCE ratio is an important measure for investors to use in assessing the Company’s capital strength. This measure may not be comparable to similarly titled measures used by other companies.
| 2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 |
||||||||||||||||
| Reconciliation of Average Equity to Average Tangible Common Equity |
||||||||||||||||||||
| Average equity |
$ | 23,681 | $ | 26,518 | $ | 26,003 | $ | 27,668 | $ | 27,004 | ||||||||||
| Less: preferred stock |
— | — | — | 41 | (3,154 | ) | ||||||||||||||
| Less: intangible assets (1) |
(14,075 | ) | (14,105 | ) | (14,151 | ) | (14,129 | ) | (13,001 | ) | ||||||||||
| Average Tangible Common Equity |
$ | 9,606 | $ | 12,413 | $ | 11,852 | $ | 13,580 | $ | 10,849 | ||||||||||
| Reconciliation of Period End Equity to Tangible Common Equity |
||||||||||||||||||||
| Equity |
$ | 24,374 | $ | 26,589 | $ | 26,192 | $ | 25,328 | $ | 26,748 | ||||||||||
| Less: preferred stock |
— | — | — | 38 | (3,159 | ) | ||||||||||||||
| Less: intangible assets (1) |
(14,044 | ) | (14,106 | ) | (14,117 | ) | (14,166 | ) | (14,201 | ) | ||||||||||
| Period End Tangible Common Equity |
$ | 10,330 | $ | 12,483 | $ | 12,075 | $ | 11,200 | $ | 9,388 | ||||||||||
| Reconciliation of Period End Assets to Tangible Assets |
||||||||||||||||||||
| Total assets |
200,707 | 169,646 | 168,463 | 171,990 | 177,462 | |||||||||||||||
| Less: discontinued ops assets |
(16 | ) | (24 | ) | (31 | ) | (46 | ) | (31 | ) | ||||||||||
| Total assets- continuing ops |
200,691 | 169,622 | 168,432 | 171,944 | 177,431 | |||||||||||||||
| Less: intangible assets (1) |
(14,044 | ) | (14,106 | ) | (14,117 | ) | (14,166 | ) | (14,201 | ) | ||||||||||
| Period End Tangible Assets |
$ | 186,647 | $ | 155,516 | $ | 154,315 | $ | 157,778 | $ | 163,230 | ||||||||||
| TCE ratio (2) |
5.53 | % | 8.03 | % | 7.82 | % | 7.10 | % | 5.75 | % | ||||||||||
| Reconciliation of Period End Assets to Tangible Assets on a Managed Basis (for 2009) * |
||||||||||||||||||||
| Total assets |
200,707 | 169,646 | 168,463 | 171,990 | 177,462 | |||||||||||||||
| Securitization adjustment |
— | 42,767 | 41,251 | 42,230 | 42,526 | |||||||||||||||
| Total assets on a managed basis (for 2009) |
200,707 | 212,413 | 209,714 | 214,220 | 219,988 | |||||||||||||||
| Less: Assets-discontinued operations |
(16 | ) | (24 | ) | (31 | ) | (46 | ) | (31 | ) | ||||||||||
| Total assets- continuing ops |
200,691 | 212,389 | 209,683 | 214,174 | 219,957 | |||||||||||||||
| Less: Intangible assets (1) |
(14,044 | ) | (14,106 | ) | (14,117 | ) | (14,166 | ) | (14,201 | ) | ||||||||||
| Period End Tangible Assets |
$ | 186,647 | $ | 198,283 | $ | 195,566 | $ | 200,008 | $ | 205,756 | ||||||||||
| TCE ratio (2) |
5.53 | % | 6.30 | % | 6.17 | % | 5.60 | % | 4.56 | % | ||||||||||
| (1) | Includes impact from related deferred taxes. |
| (2) | Calculated based on tangible common equity divided by respective tangible assets. |
| ** | In addition to analyzing the Company’s results on a reported basis, management evaluates Capital One’s results on a “managed” basis, which is a non-GAAP financial measure. Capital One also analyzes the results of each of its lines of business on a “managed” basis. Capital One’s managed results reflect the Company’s reported results, adjusted to reflect the consolidation of the majority of the Company’s credit securitization trusts. Because of the January 1, 2010, adoption of the new consolidation accounting standards, the Company’s consolidated reported results subsequent to January 1, 2010 will be comparable to its consolidated results on a “managed” basis. The accompanying Exhibit “Reconciliation to GAAP Financial Measures” presents a reconciliation of the Company’s non-GAAP “managed” results to its GAAP results for periods prior to January 1, 2010. |
Page 4
Capital One Financial Corporation
Impact of Adopting New Accounting Guidance
Consolidation of VIEs
| (dollars in millions) (unaudited) |
Opening Balance Sheet January 1, 2010 |
VIE Consolidation Impact |
Ending Balance Sheet December 31, 2009 |
|||||||||
| Assets: |
||||||||||||
| Cash and due from banks |
$ | 12,683 | $ | 3,998 | $ | 8,685 | ||||||
| Loans held for investment |
138,184 | 47,565 | 90,619 | |||||||||
| Allowance for loan and lease losses |
(8,391 | ) | (4,264 | ) | (4,127 | ) | ||||||
| Net loans held for investment |
129,793 | 43,301 | 86,492 | |||||||||
| Accounts receivable from securitizations |
166 | (7,463 | ) | 7,629 | ||||||||
| Other assets |
68,869 | (1) | 2,029 | 66,840 | ||||||||
| Total assets |
211,511 | 41,865 | 169,646 | |||||||||
| Liabilities: |
||||||||||||
| Securitization liability |
48,300 | 44,346 | 3,954 | |||||||||
| Other liabilities |
139,561 | 458 | 139,103 | |||||||||
| Total liabilities |
187,861 | 44,804 | 143,057 | |||||||||
| Stockholders’ equity |
23,650 | (2,939 | ) | 26,589 | ||||||||
| Total liabilities and stockholders’ equity |
$ | 211,511 | $ | 41,865 | $ | 169,646 | ||||||
Allocation of the Allowance by Segment
| (dollars in millions) (unaudited) |
March 31, 2010 | January 1, 2010 | Consolidation Impact | December 31, 2009 | |||||||||
| Domestic credit card |
$ | 5,162 | $ | 5,590 | $ | 3,663 | $ | 1,927 | |||||
| International credit card |
612 | 727 | 528 | 199 | |||||||||
| Total credit card |
5,774 | 6,317 | 4,191 | 2,126 | |||||||||
| Commercial and multi-family real estate |
537 | 471 | — | 471 | |||||||||
| Middle market |
172 | 131 | — | 131 | |||||||||
| Specialty lending |
108 | 90 | — | 90 | |||||||||
| Total commercial lending |
817 | 692 | — | 692 | |||||||||
| Small ticket commercial real estate |
98 | 93 | — | 93 | |||||||||
| Total commercial banking |
915 | 785 | — | 785 | |||||||||
| Automobile |
523 | 665 | — | 665 | |||||||||
| Mortgage (inc all new CCB originations) |
153 | (2) | 248 | 73 | 175 | ||||||||
| Other retail |
259 | 236 | — | 236 | |||||||||
| Total consumer banking |
935 | 1,149 | 73 | 1,076 | |||||||||
| Other |
128 | 140 | — | 140 | |||||||||
| Total company |
$ | 7,752 | $ | 8,391 | $ | 4,264 | $ | 4,127 | |||||
| (1) | Included within the “Other assets” line item is a deferred tax asset of $3.9 billion, of which $1.6 billion related to the adoption of ASU 2009-17 (SFAS 167). |
| (2) | $73 million of the reduction in the allowance for the first quarter is associated with the deconsolidation of certain mortgage trusts. This reduction in the allowance is recorded in non-interest income. |
Page 5
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)
| As
of March 31 2010 |
As of December 31 2009 (1) |
As
of March 31 2009 (1) |
||||||||||
| Assets: |
||||||||||||
| Cash and due from banks |
$ | 2,931,943 | $ | 3,100,110 | $ | 3,076,926 | ||||||
| Restricted cash for securitization investors |
3,286,002 | 501,113 | 716,224 | |||||||||
| Federal funds sold and resale agreements |
477,108 | 541,570 | 663,721 | |||||||||
| Interest-bearing deposits at other banks |
4,089,315 | 5,042,944 | 4,013,678 | |||||||||
| Cash and cash equivalents |
10,784,368 | 9,185,737 | 8,470,549 | |||||||||
| Securities available for sale |
38,251,017 | 38,829,562 | 36,326,951 | |||||||||
| Securities held to maturity |
— | 80,577 | 90,990 | |||||||||
| Loans held for sale |
247,445 | 268,307 | 289,337 | |||||||||
| Loans held for investment |
72,591,272 | 75,097,329 | 87,133,282 | |||||||||
| Restricted loans for securitization investors |
57,523,249 | 15,521,670 | 17,788,154 | |||||||||
| Less: Allowance for loan and lease losses |
(7,751,745 | ) | (4,127,395 | ) | (4,648,031 | ) | ||||||
| Net loans held for investment |
122,362,776 | 86,491,604 | 100,273,405 | |||||||||
| Accounts receivable from securitizations |
205,960 | 7,128,484 | 4,134,284 | |||||||||
| Premises and equipment, net |
2,735,192 | 2,735,623 | 2,823,364 | |||||||||
| Interest receivable |
1,134,751 | 936,146 | 815,738 | |||||||||
| Goodwill |
13,589,339 | 13,596,368 | 13,554,580 | |||||||||
| Other |
11,396,739 | 10,393,955 | 10,682,889 | |||||||||
| Total assets |
$ | 200,707,587 | $ | 169,646,363 | $ | 177,462,087 | ||||||
| Liabilities: |
||||||||||||
| Non-interest-bearing deposits |
$ | 13,773,082 | $ | 13,438,659 | $ | 12,324,224 | ||||||
| Interest-bearing deposits |
104,013,477 | 102,370,437 | 108,792,100 | |||||||||
| Senior and subordinated notes |
9,134,292 | 9,045,470 | 8,258,212 | |||||||||
| Other borrowings |
5,708,279 | 8,014,969 | 8,064,605 | |||||||||
| Borrowings owed to securitization investors |
37,829,527 | 3,953,492 | 6,545,487 | |||||||||
| Interest payable |
521,875 | 509,105 | 656,769 | |||||||||
| Other |
5,352,673 | 5,724,821 | 6,072,714 | |||||||||
| Total liabilities |
176,333,205 | 143,056,953 | 150,714,111 | |||||||||
| Stockholders’ Equity: |
||||||||||||
| Preferred stock |
— | — | 3,115,722 | |||||||||
| Common stock |
5,041 | 5,024 | 4,425 | |||||||||
| Paid-in capital, net |
18,990,863 | 18,954,823 | 17,348,217 | |||||||||
| Retained earnings and cumulative other comprehensive income |
8,576,735 | 10,810,022 | 9,448,454 | |||||||||
| Less: Treasury stock, at cost |
(3,198,257 | ) | (3,180,459 | ) | (3,168,842 | ) | ||||||
| Total stockholders’ equity |
24,374,382 | 26,589,410 | 26,747,976 | |||||||||
| Total liabilities and stockholders’ equity |
$ | 200,707,587 | $ | 169,646,363 | $ | 177,462,087 | ||||||
| (1) | Certain prior period amounts have been revised to confirm to the current period presentation. |
Page 6
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
| Three Months Ended | ||||||||||||
| March 31, 2010 |
December 31, 2009 (1) |
March 31, 2009 (1) |
||||||||||
| Interest Income: |
||||||||||||
| Loans held for investment, including past-due fees |
$ | 3,657,735 | $ | 2,108,325 | $ | 2,191,618 | ||||||
| Investment securities |
348,715 | 403,750 | 395,274 | |||||||||
| Other |
23,379 | 83,013 | 63,117 | |||||||||
| Total interest income |
4,029,829 | 2,595,088 | 2,650,009 | |||||||||
| Interest Expense: |
||||||||||||
| Deposits |
398,730 | 426,415 | 627,392 | |||||||||
| Securitized debt |
232,078 | 51,423 | 86,141 | |||||||||
| Senior and subordinated notes |
68,224 | 71,093 | 58,044 | |||||||||
| Other borrowings |
102,644 | 91,944 | 85,444 | |||||||||
| Total interest expense |
801,676 | 640,875 | 857,021 | |||||||||
| Net interest income |
3,228,153 | 1,954,213 | 1,792,988 | |||||||||
| Provision for loan and lease losses |
1,478,200 | 843,728 | 1,279,137 | |||||||||
| Net interest income after provision for loan and lease losses |
1,749,953 | 1,110,485 | 513,851 | |||||||||
| Non-Interest Income: |
||||||||||||
| Servicing and securitizations |
(36,368 | ) | 743,075 | 453,144 | ||||||||
| Service charges and other customer-related fees |
584,973 | 502,721 | 506,129 | |||||||||
| Interchange |
311,407 | 112,421 | 140,090 | |||||||||
| Net other-than-temporary impairment losses recognized in earnings(2) |
(31,256 | ) | (10,384 | ) | (363 | ) | ||||||
| Other |
232,702 | 63,919 | (9,156 | ) | ||||||||
| Total non-interest income |
1,061,458 | 1,411,752 | 1,089,844 | |||||||||
| Non-Interest Expense: |
||||||||||||
| Salaries and associate benefits |
646,436 | 641,225 | 554,431 | |||||||||
| Marketing |
180,459 | 187,958 | 162,712 | |||||||||
| Communications and data processing |
169,327 | 171,286 | 199,104 | |||||||||
| Supplies and equipment |
123,624 | 129,422 | 118,900 | |||||||||
| Occupancy |
119,779 | 121,822 | 100,185 | |||||||||
| Restructuring expense (3) |
— | 32,037 | 17,627 | |||||||||
| Other |
607,976 | 664,243 | 592,330 | |||||||||
| Total non-interest expense |
1,847,601 | 1,947,993 | 1,745,289 | |||||||||
| Income (loss) from continuing operations before income taxes |
963,810 | 574,244 | (141,594 | ) | ||||||||
| Income taxes (benefit) |
244,359 | 170,359 | (58,490 | ) | ||||||||
| Income from continuing operations, net of tax |
719,451 | 403,885 | (83,104 | ) | ||||||||
| Loss from discontinued operations, net of tax |
(83,188 | ) | (28,293 | ) | (24,958 | ) | ||||||
| Net income (loss) |
$ | 636,263 | $ | 375,592 | $ | (108,062 | ) | |||||
| Net income (loss) available to common shareholders |
$ | 636,263 | $ | 375,592 | $ | (172,252 | ) | |||||
| Basic earnings per common share |
||||||||||||
| Income (loss) from continuing operations |
$ | 1.59 | $ | 0.90 | $ | (0.38 | ) | |||||
| Loss from discontinued operations |
(0.18 | ) | (0.07 | ) | (0.06 | ) | ||||||
| Net Income (loss) per common share |
$ | 1.41 | $ | 0.83 | $ | (0.44 | ) | |||||
| Diluted earnings per common share |
||||||||||||
| Income (loss) from continuing operations |
$ | 1.58 | $ | 0.89 | $ | (0.38 | ) | |||||
| Loss from discontinued operations |
(0.18 | ) | (0.06 | ) | (0.06 | ) | ||||||
| Net Income (loss) per common share |
$ | 1.40 | $ | 0.83 | $ | (0.44 | ) | |||||
| Dividends paid per common share |
$ | 0.05 | $ | 0.05 | $ | 0.38 | ||||||
| (1) | Certain prior period amounts have been revised to confirm to the current period presentation. |
| (2) | For the three months ended March 31, 2010, the Company recorded other-than-temporary impairment losses of $31.3 million. Additional unrealized losses of $106.3 million on these securities was recognized in other comprehensive income as a component of stockholders’ equity at March 31, 2010. |
| (3) | The Company completed its 2007 restructuring initiative during 2009. |
Page 7
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates (1)
(dollars in thousands)(unaudited)
| Quarter Ended 03/31/10 (3) | Quarter Ended 12/31/09 (4) | Quarter Ended 03/31/09 (4) | |||||||||||||||||||||||||
| Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
|||||||||||||||||||
| GAAP Basis |
|||||||||||||||||||||||||||
| Interest-earning assets: |
|||||||||||||||||||||||||||
| Loans held for investment |
$ | 134,206,161 | $ | 3,657,734 | 10.90 | % | $ | 94,731,990 | $ | 2,108,325 | 8.90 | % | $ | 103,242,406 | $ | 2,191,618 | 8.49 | % | |||||||||
| Investment securities (2) |
38,086,936 | 348,715 | 3.66 | % | 38,486,624 | 403,750 | 4.20 | % | 34,209,102 | 395,274 | 4.62 | % | |||||||||||||||
| Other |
9,587,759 | 23,379 | 0.98 | % | 10,444,494 | 83,013 | 3.18 | % | 7,720,249 | 63,117 | 3.27 | % | |||||||||||||||
| Total interest-earning assets |
$ | 181,880,856 | $ | 4,029,828 | 8.86 | % | $ | 143,663,108 | $ | 2,595,088 | 7.23 | % | $ | 145,171,757 | $ | 2,650,009 | 7.30 | % | |||||||||
| Interest-bearing liabilities: |
|||||||||||||||||||||||||||
| Interest-bearing deposits |
|||||||||||||||||||||||||||
| NOW accounts |
$ | 12,276,325 | $ | 16,420 | 0.54 | % | $ | 10,587,851 | $ | 13,696 | 0.52 | % | $ | 10,842,552 | $ | 19,440 | 0.72 | % | |||||||||
| Money market deposit accounts |
39,364,028 | 95,966 | 0.98 | % | 37,460,109 | 96,583 | 1.03 | % | 30,839,817 | 115,017 | 1.49 | % | |||||||||||||||
| Savings accounts |
18,627,038 | 41,454 | 0.89 | % | 15,416,242 | 35,326 | 0.92 | % | 7,631,999 | 7,210 | 0.38 | % | |||||||||||||||
| Other consumer time deposits |
24,252,934 | 173,938 | 2.87 | % | 27,273,129 | 200,499 | 2.94 | % | 37,132,194 | 358,852 | 3.87 | % | |||||||||||||||
| Public fund CD’s of $100,000 or more |
399,703 | 1,627 | 1.63 | % | 753,764 | 2,201 | 1.17 | % | 1,209,348 | 5,146 | 1.70 | % | |||||||||||||||
| CD’s of $100,000 or more |
8,179,641 | 68,061 | 3.33 | % | 8,633,998 | 76,692 | 3.55 | % | 10,673,089 | 107,215 | 4.02 | % | |||||||||||||||
| Foreign time deposits |
917,656 | 1,264 | 0.55 | % | 1,019,090 | 1,418 | 0.56 | % | 2,557,479 | 14,512 | 2.27 | % | |||||||||||||||
| Total interest-bearing deposits |
$ | 104,017,325 | $ | 398,730 | 1.53 | % | $ | 101,144,183 | $ | 426,415 | 1.69 | % | $ | 100,886,478 | $ | 627,392 | 2.49 | % | |||||||||
| Senior and subordinated notes |
8,757,477 | 68,224 | 3.12 | % | 8,759,304 | 71,093 | 3.25 | % | 7,771,343 | 58,044 | 2.99 | % | |||||||||||||||
| Other borrowings |
7,430,999 | 92,987 | 5.01 | % | 9,907,611 | 89,892 | 3.63 | % | 8,650,535 | 80,852 | 3.74 | % | |||||||||||||||
| Securitization liability |
43,764,248 | 241,735 | 2.21 | % | 4,248,892 | 53,475 | 5.03 | % | 7,046,543 | 90,733 | 5.15 | % | |||||||||||||||
| Total interest-bearing liabilities |
$ | 163,970,049 | $ | 801,676 | 1.96 | % | $ | 124,059,990 | $ | 640,875 | 2.07 | % | $ | 124,354,899 | $ | 857,021 | 2.76 | % | |||||||||
| Net interest spread |
6.90 | % | 5.16 | % | 4.54 | % | |||||||||||||||||||||
| Interest income to average interest-earning assets |
8.86 | % | 7.23 | % | 7.30 | % | |||||||||||||||||||||
| Interest expense to average interest-earning assets |
1.76 | % | 1.79 | % | 2.36 | % | |||||||||||||||||||||
| Net interest margin |
7.10 | % | 5.44 | % | 4.94 | % | |||||||||||||||||||||
| Managed Basis * |
|||||||||||||||||||||||||||
| Interest-earning assets: |
|||||||||||||||||||||||||||
| Loans held for investment |
$ | 134,206,161 | $ | 3,657,734 | 10.90 | % | $ | 138,184,181 | $ | 3,638,071 | 10.53 | % | $ | 147,182,092 | $ | 3,479,649 | 9.46 | % | |||||||||
| Investment securities (2) |
38,086,936 | 348,715 | 3.66 | % | 38,486,624 | 403,750 | 4.20 | % | 34,209,102 | 395,274 | 4.62 | % | |||||||||||||||
| Other |
9,587,759 | 23,379 | 0.98 | % | 7,228,402 | 16,832 | 0.93 | % | 5,222,716 | 15,743 | 1.21 | % | |||||||||||||||
| Total interest-earning assets |
$ | 181,880,856 | $ | 4,029,828 | 8.86 | % | $ | 183,899,207 | $ | 4,058,653 | 8.83 | % | $ | 186,613,910 | $ | 3,890,666 | 8.34 | % | |||||||||
| Interest-bearing liabilities: |
|||||||||||||||||||||||||||
| Interest-bearing deposits |
|||||||||||||||||||||||||||
| NOW accounts |
$ | 12,276,325 | $ | 16,420 | 0.54 | % | $ | 10,587,851 | $ | 13,696 | 0.52 | % | $ | 10,842,552 | $ | 19,440 | 0.72 | % | |||||||||
| Money market deposit accounts |
39,364,028 | 95,966 | 0.98 | % | 37,460,109 | 96,583 | 1.03 | % | 30,839,817 | 115,017 | 1.49 | % | |||||||||||||||
| Savings accounts |
18,627,038 | 41,454 | 0.89 | % | 15,416,242 | 35,326 | 0.92 | % | 7,631,999 | 7,210 | 0.38 | % | |||||||||||||||
| Other consumer time deposits |
24,252,934 | 173,938 | 2.87 | % | 27,273,129 | 200,499 | 2.94 | % | 37,132,194 | 358,852 | 3.87 | % | |||||||||||||||
| Public fund CD’s of $100,000 or more |
399,703 | 1,627 | 1.63 | % | 753,764 | 2,201 | 1.17 | % | 1,209,348 | 5,146 | 1.70 | % | |||||||||||||||
| CD’s of $100,000 or more |
8,179,641 | 68,061 | 3.33 | % | 8,633,998 | 76,692 | 3.55 | % | 10,673,089 | 107,215 | 4.02 | % | |||||||||||||||
| Foreign time deposits |
917,656 | 1,264 | 0.55 | % | 1,019,090 | 1,418 | 0.56 | % | 2,557,479 | 14,512 | 2.27 | % | |||||||||||||||
| Total interest-bearing deposits |
$ | 104,017,325 | $ | 398,730 | 1.53 | % | $ | 101,144,183 | $ | 426,415 | 1.69 | % | $ | 100,886,478 | $ | 627,392 | 2.49 | % | |||||||||
| Senior and subordinated notes |
8,757,477 | 68,224 | 3.12 | % | 8,759,304 | 71,093 | 3.25 | % | 7,771,343 | 58,044 | 2.99 | % | |||||||||||||||
| Other borrowings |
7,430,999 | 92,987 | 5.01 | % | 9,907,611 | 89,892 | 3.63 | % | 8,650,535 | 80,852 | 3.74 | % | |||||||||||||||
| Securitization liability |
43,764,248 | 241,735 | 2.21 | % | 44,836,907 | 301,139 | 2.69 | % | 48,813,159 | 374,388 | 3.07 | % | |||||||||||||||
| Total interest-bearing liabilities |
$ | 163,970,049 | $ | 801,676 | 1.96 | % | $ | 164,648,005 | $ | 888,539 | 2.16 | % | $ | 166,121,515 | $ | 1,140,676 | 2.75 | % | |||||||||
| Net interest spread |
6.90 | % | 6.67 | % | 5.59 | % | |||||||||||||||||||||
| Interest income to average interest-earning assets |
8.86 | % | 8.83 | % | 8.34 | % | |||||||||||||||||||||
| Interest expense to average interest-earning assets |
1.76 | % | 1.93 | % | 2.45 | % | |||||||||||||||||||||
| Net interest margin |
7.10 | % | 6.90 | % | 5.89 | % | |||||||||||||||||||||
| (1) | Reflects amounts based on continuing operations. |
| (2) | Consists of available-for-sale and held to maturity securities. |
| (3) | Reflects the impact of adopting the new consolidation accounting standard on January 1, 2010, which was not retroactively applied. This presentation is consistent with what was previously reported as managed. |
| (4) | Certain prior period amounts have been revised to confirm to the current period presentation. |
| * | In addition to analyzing the Company’s results on a reported basis, management evaluates Capital One’s results on a “managed” basis, which is a non-GAAP financial measure. Because of the January 1, 2010, adoption of the new consolidation accounting standards. The Company’s reported or GAAP results subsequent to January 1, 2010 will be comparable to its results on a “managed” basis. The accompanying Exhibit “Reconciliation to GAAP Financial Measures” presents a reconciliation of the Company’s non-GAAP “managed” results to its reported results for periods prior to January 1, 2010. |
Page 8
CAPITAL ONE FINANCIAL CORPORATION (COF)
LENDING INFORMATION AND STATISTICS
MANAGED BASIS (1)
| 2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 (2) |
||||||||||||||||
| Period end loans held for investment |
||||||||||||||||||||
| (in thousands) |
||||||||||||||||||||
| Domestic credit card |
$ | 56,228,012 | $ | 60,299,827 | $ | 61,891,573 | $ | 64,760,128 | $ | 67,015,166 | ||||||||||
| International credit card |
7,578,110 | 8,223,835 | 8,477,236 | 8,638,441 | 8,069,961 | |||||||||||||||
| Total Credit Card |
$ | 63,806,122 | $ | 68,523,662 | $ | 70,368,809 | $ | 73,398,569 | $ | 75,085,127 | ||||||||||
| Commercial and multi family real estate |
$ | 13,617,900 | $ | 13,843,158 | $ | 13,977,873 | $ | 14,224,950 | $ | 13,522,154 | ||||||||||
| Middle market |
10,310,156 | 10,061,819 | 10,022,822 | 10,219,728 | 9,850,735 | |||||||||||||||
| Specialty lending |
3,618,987 | 3,554,563 | 3,399,432 | 3,227,772 | 3,489,813 | |||||||||||||||
| Total Commercial Lending |
$ | 27,547,043 | $ | 27,459,540 | $ | 27,400,127 | $ | 27,672,450 | $ | 26,862,702 | ||||||||||
| Small-ticket commercial real estate |
2,065,095 | 2,153,510 | (8) | 2,412,400 | 2,503,035 | 2,568,395 | ||||||||||||||
| Total Commercial Banking |
$ | 29,612,138 | $ | 29,613,050 | $ | 29,812,527 | $ | 30,175,485 | $ | 29,431,097 | ||||||||||
| Automobile |
$ | 17,446,430 | $ | 18,186,064 | $ | 19,295,218 | $ | 19,902,401 | $ | 20,795,291 | ||||||||||
| Mortgages |
13,966,471 | 14,893,187 | 15,638,974 | 16,579,176 | 9,648,271 | |||||||||||||||
| Retail banking |
4,969,775 | 5,135,242 | 5,215,155 | 5,366,597 | 5,499,070 | |||||||||||||||
| Total Consumer Banking |
$ | 36,382,676 | $ | 38,214,493 | $ | 40,149,347 | $ | 41,848,174 | $ | 35,942,632 | ||||||||||
| Other loans (3) |
$ | 464,347 | $ | 451,697 | $ | 659,008 | $ | 694,750 | $ | 9,270,663 | ||||||||||
| Total |
$ | 130,265,283 | $ | 136,802,902 | $ | 140,989,691 | $ | 146,116,978 | $ | 149,729,519 | ||||||||||
| Average loans held for investment |
||||||||||||||||||||
| (in thousands) |
||||||||||||||||||||
| Domestic credit card |
$ | 58,107,647 | $ | 60,443,441 | $ | 63,298,525 | $ | 65,862,569 | $ | 69,187,704 | ||||||||||
| International credit card |
7,814,411 | 8,299,895 | 8,609,235 | 8,327,859 | 8,382,679 | |||||||||||||||
| Total Credit Card |
$ | 65,922,058 | $ | 68,743,336 | $ | 71,907,760 | $ | 74,190,428 | $ | 77,570,383 | ||||||||||
| Commercial and multi-family real estate |
$ | 13,716,376 | $ | 13,926,098 | $ | 13,938,037 | $ | 14,122,348 | $ | 13,437,351 | ||||||||||
| Middle market |
10,323,528 | 10,052,406 | 9,911,314 | 10,428,398 | 10,003,213 | |||||||||||||||
| Specialty lending |
3,609,231 | 3,534,537 | 3,753,054 | 3,472,258 | 3,504,544 | |||||||||||||||
| Total Commercial Lending |
$ | 27,649,135 | $ | 27,513,041 | $ | 27,602,405 | $ | 28,023,004 | $ | 26,945,108 | ||||||||||
| Small-ticket commercial real estate |
2,073,539 | 2,354,204 | 2,470,961 | 2,542,082 | 2,600,169 | |||||||||||||||
| Total Commercial Banking |
$ | 29,722,674 | $ | 29,867,245 | $ | 30,073,366 | $ | 30,565,086 | $ | 29,545,277 | ||||||||||
| Automobile |
$ | 17,768,721 | $ | 18,767,555 | $ | 19,635,979 | $ | 20,303,296 | $ | 21,123,000 | ||||||||||
| Mortgages |
15,433,825 | 15,169,985 | 15,925,076 | 16,706,689 | 9,860,646 | |||||||||||||||
| Retail banking |
5,042,814 | 5,176,583 | 5,514,816 | 5,711,646 | 5,559,451 | |||||||||||||||
| Total Consumer Banking |
$ | 38,245,360 | $ | 39,114,123 | $ | 41,075,871 | $ | 42,721,631 | $ | 36,543,097 | ||||||||||
| Other loans (3) |
$ | 488,594 | $ | 459,477 | $ | 482,905 | $ | 535,681 | $ | 3,523,335 | ||||||||||
| Total |
$ | 134,378,686 | $ | 138,184,181 | $ | 143,539,902 | $ | 148,012,826 | $ | 147,182,092 | ||||||||||
| Net Charge-off Rates |
||||||||||||||||||||
| Domestic credit card |
10.48 | % | 9.59 | % | 9.64 | % | 9.23 | % | 8.39 | % | ||||||||||
| International credit card |
8.83 | % | 9.52 | % | 9.19 | % | 9.32 | % | 7.30 | % | ||||||||||
| Total Credit Card |
10.29 | % | 9.58 | % | 9.59 | % | 9.24 | % | 8.27 | % | ||||||||||
| Commercial and multi family real estate (4) |
1.45 | % | 3.02 | % | 1.37 | % | 0.92 | % | 0.63 | % | ||||||||||
| Middle market (4) |
0.82 | % | 0.75 | % | 0.56 | % | 0.58 | % | 0.07 | % | ||||||||||
| Specialty lending |
0.90 | % | 1.85 | % | 1.39 | % | 0.99 | % | 0.86 | % | ||||||||||
| Total Commercial Lending (4) |
1.14 | % | 2.04 | % | 1.08 | % | 0.80 | % | 0.45 | % | ||||||||||
| Small-ticket commercial real estate |
4.43 | % | 13.08 | %(8) | 5.19 | % | 1.86 | % | 1.74 | % | ||||||||||
| Total Commercial Banking (4) |
1.37 | % | 2.91 | % | 1.42 | % | 0.89 | % | 0.56 | % | ||||||||||
| Automobile |
2.97 | % | 4.55 | % | 4.38 | % | 3.65 | % | 4.88 | % | ||||||||||
|
Mortgages (4) |
0.94 | % | 0.72 | % | 0.69 | % | 0.43 | % | 0.45 | % | ||||||||||
| Retail banking (4) |
2.11 | % | 2.93 | % | 2.44 | % | 2.42 | % | 2.35 | % | ||||||||||
| Total Consumer Banking (4) |
2.03 | % | 2.85 | % | 2.69 | % | 2.23 | % | 3.30 | % | ||||||||||
| Other loans |
18.82 | % | 28.25 | % | 28.53 | % | 37.00 | % | 4.58 | % | ||||||||||
| Total |
6.02 | % | 6.33 | % | 6.00 | % | 5.64 | % | 5.41 | % | ||||||||||
| 30+ day performing delinquency rate |
||||||||||||||||||||
| Domestic credit card |
5.30 | % | 5.78 | % | 5.38 | % | 4.77 | % | 5.08 | % | ||||||||||
| International credit card |
6.39 | % | 6.55 | % | 6.63 | % | 6.69 | % | 6.25 | % | ||||||||||
| Total Credit Card |
5.43 | % | 5.88 | % | 5.53 | % | 4.99 | % | 5.20 | % | ||||||||||
| Automobile (5) |
7.58 | % | 10.03 | % | 9.52 | % | 8.89 | % | 7.48 | % | ||||||||||
|
Mortgages (4) |
0.93 | % | 1.26 | % | 1.17 | % | 0.97 | % | 1.91 | % | ||||||||||
| Retail banking (4) |
1.02 | % | 1.23 | % | 1.26 | % | 0.91 | % | 1.16 | % | ||||||||||
| Total Consumer Banking (4) |
4.13 | % | 5.43 | % | 5.19 | % | 4.73 | % | 5.01 | % | ||||||||||
| Nonperforming Asset Rates (6) (7) |
||||||||||||||||||||
| Commercial and multi family real estate (4) |
3.65 | % | 3.25 | % | 2.66 | % | 2.15 | % | 2.00 | % | ||||||||||
| Middle market (4) |
1.15 | % | 1.09 | % | 1.25 | % | 1.15 | % | 0.57 | % | ||||||||||
| Specialty lending |
2.18 | % | 2.25 | % | 2.12 | % | 2.11 | % | 1.16 | % | ||||||||||
| Total Commercial Lending (4) |
2.52 | % | 2.33 | % | 2.08 | % | 1.78 | % | 1.37 | % | ||||||||||
| Small-ticket commercial real estate |
4.18 | % | 4.87 | %(8) | 11.39 | % | 10.08 | % | 8.00 | % | ||||||||||
| Total Commercial Banking (4) |
2.64 | % | 2.52 | % | 2.84 | % | 2.47 | % | 1.95 | % | ||||||||||
| Automobile (5) |
0.55 | % | 0.92 | % | 0.87 | % | 0.78 | % | 0.69 | % | ||||||||||
|
Mortgages (4) |
3.17 | % | 2.24 | % | 1.83 | % | 1.51 | % | 1.89 | % | ||||||||||
| Retail banking (4) |
2.07 | % | 2.11 | % | 1.98 | % | 1.88 | % | 1.68 | % | ||||||||||
| Total Consumer Banking (4) |
1.76 | % | 1.60 | % | 1.39 | % | 1.21 | % | 1.16 | % | ||||||||||
Page 9
CAPITAL ONE FINANCIAL CORPORATION (COF)
CREDIT CARD SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
MANAGED BASIS (1)
| (in thousands) |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 |
|||||||||||||||
| Credit Card: |
||||||||||||||||||||
| Earnings |
||||||||||||||||||||
| Net interest income |
$ | 2,113,075 | $ | 2,029,221 | $ | 2,024,250 | $ | 1,797,303 | $ | 1,691,688 | ||||||||||
| Non-interest income |
718,632 | 897,006 | 966,862 | 897,440 | 985,481 | |||||||||||||||
| Total revenue |
$ | 2,831,707 | $ | 2,926,227 | $ | 2,991,112 | $ | 2,694,743 | $ | 2,677,169 | ||||||||||
| Provision for loan and lease losses |
1,175,217 | 1,204,693 | 1,643,721 | 1,520,292 | 1,682,786 | |||||||||||||||
| Non-interest expenses |
914,052 | 942,428 | 897,578 | 909,572 | 988,652 | |||||||||||||||
| Income (loss) before taxes |
742,438 | 779,106 | 449,813 | 264,879 | 5,731 | |||||||||||||||
| Income taxes (benefit) |
252,853 | 269,182 | 158,074 | 92,251 | 2,402 | |||||||||||||||
| Net income (loss) |
$ | 489,585 | $ | 509,924 | $ | 291,739 | $ | 172,628 | $ | 3,329 | ||||||||||
| Selected Metrics |
||||||||||||||||||||
| Period end loans held for investment |
$ | 63,806,122 | $ | 68,523,662 | $ | 70,368,809 | $ | 73,398,569 | $ | 75,085,127 | ||||||||||
| Average loans held for investment |
$ | 65,922,058 | $ | 68,743,336 | $ | 71,907,760 | $ | 74,190,428 | $ | 77,570,383 | ||||||||||
| Loans held for investment yield |
14.88 | % | 14.21 | % | 13.75 | % | 12.31 | % | 11.51 | % | ||||||||||
| Revenue margin |
17.18 | % | 17.03 | % | 16.64 | % | 14.53 | % | 13.81 | % | ||||||||||
| Net charge-off rate |
10.29 | % | 9.58 | % | 9.59 | % | 9.24 | % | 8.27 | % | ||||||||||
| 30+ day performing delinquency rate |
5.43 | % | 5.88 | % | 5.53 | % | 4.99 | % | 5.20 | % | ||||||||||
| Purchase volume (9) |
$ | 23,923,514 | $ | 26,865,498 | $ | 25,982,259 | $ | 25,746,799 | $ | 23,473,560 | ||||||||||
| Domestic Card Sub-segment Earnings |
||||||||||||||||||||
| Net interest income |
$ | 1,865,280 | $ | 1,781,573 | $ | 1,797,173 | $ | 1,586,686 | $ | 1,504,695 | ||||||||||
| Non-interest income |
618,507 | 793,934 | 855,571 | 794,440 | 883,891 | |||||||||||||||
| Total revenue |
$ | 2,483,787 | $ | 2,575,507 | $ | 2,652,744 | $ | 2,381,126 | $ | 2,388,586 | ||||||||||
| Provision for loan and lease losses |
1,096,215 | 1,033,341 | 1,436,959 | 1,336,736 | 1,521,997 | |||||||||||||||
| Non-interest expenses |
809,423 | 832,878 | 769,995 | 787,624 | 865,460 | |||||||||||||||
| Income (loss) before taxes |
578,149 | 709,288 | 445,790 | 256,766 | 1,129 | |||||||||||||||
| Income taxes (benefit) |
205,937 | 248,251 | 156,027 | 89,868 | 396 | |||||||||||||||
| Net income (loss) |
$ | 372,212 | $ | 461,037 | $ | 289,763 | $ | 166,898 | $ | 733 | ||||||||||
| Selected Metrics |
||||||||||||||||||||
| Period end loans held for investment |
$ | 56,228,012 | $ | 60,299,827 | $ | 61,891,573 | $ | 64,760,128 | $ | 67,015,166 | ||||||||||
| Average loans held for investment |
$ | 58,107,647 | $ | 60,443,441 | $ | 63,298,525 | $ | 65,862,569 | $ | 69,187,704 | ||||||||||
| Loans held for investment yield |
14.78 | % | 14.08 | % | 13.74 | % | 12.17 | % | 11.40 | % | ||||||||||
| Revenue margin |
17.10 | % | 17.04 | % | 16.76 | % | 14.46 | % | 13.81 | % | ||||||||||
| Net charge-off rate |
10.48 | % | 9.59 | % | 9.64 | % | 9.23 | % | 8.39 | % | ||||||||||
| 30+ day performing delinquency rate |
5.30 | % | 5.78 | % | 5.38 | % | 4.77 | % | 5.08 | % | ||||||||||
| Purchase volume (9) |
$ | 21,987,661 | $ | 24,592,679 | $ | 23,760,963 | $ | 23,610,760 | $ | 21,601,837 | ||||||||||
| International Card Sub-segment Earnings |
||||||||||||||||||||
| Net interest income |
$ | 247,795 | $ | 247,648 | $ | 227,077 | $ | 210,617 | $ | 186,993 | ||||||||||
| Non-interest income |
100,125 | 103,072 | 111,291 | 103,000 | 101,590 | |||||||||||||||
| Total revenue |
$ | 347,920 | $ | 350,720 | $ | 338,368 | $ | 313,617 | $ | 288,583 | ||||||||||
| Provision for loan and lease losses |
79,002 | 171,352 | 206,762 | 183,556 | 160,789 | |||||||||||||||
| Non-interest expenses |
104,629 | 109,550 | 127,583 | 121,948 | 123,192 | |||||||||||||||
| Income (loss) before taxes |
164,289 | 69,818 | 4,023 | 8,113 | 4,602 | |||||||||||||||
| Income taxes (benefit) |
46,916 | 20,931 | 2,047 | 2,383 | 2,006 | |||||||||||||||
| Net income (loss) |
$ | 117,373 | $ | 48,887 | $ | 1,976 | $ | 5,730 | $ | 2,596 | ||||||||||
| Selected Metrics |
||||||||||||||||||||
| Period end loans held for investment |
$ | 7,578,110 | $ | 8,223,835 | $ | 8,477,236 | $ | 8,638,441 | $ | 8,069,961 | ||||||||||
| Average loans held for investment |
$ | 7,814,411 | $ | 8,299,895 | $ | 8,609,235 | $ | 8,327,859 | $ | 8,382,679 | ||||||||||
| Loans held for investment yield |
15.65 | % | 15.19 | % | 13.81 | % | 13.42 | % | 12.41 | % | ||||||||||
| Revenue margin |
17.81 | % | 16.90 | % | 15.72 | % | 15.06 | % | 13.77 | % | ||||||||||
| Net charge-off rate |
8.83 | % | 9.52 | % | 9.19 | % | 9.32 | % | 7.30 | % | ||||||||||
| 30+ day performing delinquency rate |
6.39 | % | 6.55 | % | 6.63 | % | 6.69 | % | 6.25 | % | ||||||||||
| Purchase volume (9) |
$ | 1,935,853 | $ | 2,272,819 | $ | 2,221,296 | $ | 2,136,039 | $ | 1,871,723 | ||||||||||
Page 10
CAPITAL ONE FINANCIAL CORPORATION (COF)
COMMERCIAL BANKING SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
MANAGED BASIS (1)
| (in thousands) |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 |
|||||||||||||||
| Commercial Banking: |
||||||||||||||||||||
| Earnings |
||||||||||||||||||||
| Net interest income |
$ | 311,401 | $ | 318,576 | $ | 301,308 | $ | 279,045 | $ | 245,459 | ||||||||||
| Non-interest income |
42,375 | 37,992 | 43,299 | 49,043 | 41,214 | |||||||||||||||
| Total revenue |
$ | 353,776 | $ | 356,568 | $ | 344,607 | $ | 328,088 | $ | 286,673 | ||||||||||
| Provision for loan and lease losses |
238,209 | 368,493 | 375,095 | 122,497 | 117,304 | |||||||||||||||
| Non-interest expenses |
192,420 | 197,355 | 166,043 | 155,574 | 141,805 | |||||||||||||||
| Income (loss) before taxes |
(76,853 | ) | (209,280 | ) | (196,531 | ) | 50,017 | 27,564 | ||||||||||||
| Income taxes (benefit) |
(27,375 | ) | (73,248 | ) | (68,786 | ) | 17,506 | 9,647 | ||||||||||||
| Net income (loss) |
$ | (49,478 | ) | $ | (136,032 | ) | $ | (127,745 | ) | $ | 32,511 | $ | 17,917 | |||||||
| Selected Metrics |
||||||||||||||||||||
| Period end loans held for investment |
$ | 29,612,138 | $ | 29,613,050 | $ | 29,812,527 | $ | 30,175,485 | $ | 29,431,097 | ||||||||||
| Average loans held for investment |
$ | 29,722,674 | $ | 29,867,245 | $ | 30,073,366 | $ | 30,565,086 | $ | 29,545,277 | ||||||||||
| Loans held for investment yield |
5.03 | % | 5.11 | % | 5.06 | % | 5.01 | % | 4.92 | % | ||||||||||
| Period end deposits |
$ | 21,605,482 | $ | 20,480,297 | $ | 18,617,112 | $ | 16,897,441 | $ | 15,691,679 | ||||||||||
| Average deposits |
$ | 21,858,792 | $ | 19,420,005 | $ | 17,760,860 | $ | 17,020,998 | $ | 16,045,943 | ||||||||||
| Deposit interest expense rate |
0.72 | % | 0.80 | % | 0.75 | % | 0.77 | % | 0.92 | % | ||||||||||
| Core deposit intangible amortization |
$ | 14,389 | $ | 13,847 | $ | 9,664 | $ | 9,959 | $ | 9,092 | ||||||||||
| Net charge-off rate (4) |
1.37 | % | 2.91 | % | 1.42 | % | 0.89 | % | 0.56 | % | ||||||||||
| Nonperforming loans as a percentage of loans held for investment (4) |
2.48 | % | 2.37 | % | 2.65 | % | 2.33 | % | 1.85 | % | ||||||||||
| Nonperforming asset rate (4) |
2.64 | % | 2.52 | % | 2.84 | % | 2.47 | % | 1.95 | % | ||||||||||
Page 11
CAPITAL ONE FINANCIAL CORPORATION (COF)
CONSUMER BANKING SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
MANAGED BASIS (1)
| (in thousands) |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 |
|||||||||||||||
| Consumer Banking: |
||||||||||||||||||||
| Earnings |
||||||||||||||||||||
| Net interest income |
$ | 896,588 | $ | 833,369 | $ | 847,651 | $ | 825,923 | $ | 723,654 | ||||||||||
| Non-interest income |
315,612 | 153,099 | 212,704 | 226,128 | 163,257 | |||||||||||||||
| Total revenue |
$ | 1,212,200 | $ | 986,468 | $ | 1,060,355 | $ | 1,052,051 | $ | 886,911 | ||||||||||
| Provision for loan and lease losses |
49,526 | 249,309 | 156,052 | 202,055 | 268,233 | |||||||||||||||
| Non-interest expenses |
688,381 | 749,021 | 680,970 | 724,735 | 579,724 | |||||||||||||||
| Income (loss) before taxes |
474,293 | (11,862 | ) | 223,333 | 125,261 | 38,954 | ||||||||||||||
| Income taxes (benefit) |
168,943 | (4,152 | ) | 78,166 | 43,842 | 13,634 | ||||||||||||||
| Net income (loss) |
$ | 305,350 | $ | (7,710 | ) | $ | 145,167 | $ | 81,419 | $ | 25,320 | |||||||||
| Selected Metrics |
||||||||||||||||||||
| Period end loans held for investment |
$ | 36,382,676 | $ | 38,214,493 | $ | 40,149,347 | $ | 41,848,174 | $ | 35,942,632 | ||||||||||
| Average loans held for investment |
$ | 38,245,360 | $ | 39,114,123 | $ | 41,075,871 | $ | 42,721,631 | $ | 36,543,097 | ||||||||||
| Loans held for investment yield |
8.96 | % | 8.83 | % | 8.89 | % | 8.69 | % | 9.43 | % | ||||||||||
| Auto loan originations |
1,343,463 | 1,018,125 | 1,512,707 | 1,341,583 | 1,463,402 | |||||||||||||||
| Period end deposits |
$ | 76,883,450 | $ | 74,144,805 | $ | 72,252,596 | $ | 73,882,639 | $ | 63,422,760 | ||||||||||
| Average deposits |
$ | 75,115,342 | $ | 72,975,666 | $ | 73,284,397 | $ | 74,320,889 | $ | 62,730,380 | ||||||||||
| Deposit interest expense rate |
1.27 | % | 1.41 | % | 1.58 | % | 1.76 | % | 2.04 | % | ||||||||||
| Core deposit intangible amortization |
$ | 37,735 | $ | 39,974 | $ | 45,856 | $ | 47,259 | $ | 35,593 | ||||||||||
| Net charge-off rate (4) |
2.03 | % | 2.85 | % | 2.69 | % | 2.23 | % | 3.30 | % | ||||||||||
| Nonperforming loans as a percentage of loans held for investment (4) (5) |
1.62 | % | 1.45 | % | 1.26 | % | 1.08 | % | 0.98 | % | ||||||||||
| Nonperforming asset rate (4) (5) |
1.76 | % | 1.60 | % | 1.39 | % | 1.21 | % | 1.16 | % | ||||||||||
| 30+ day performing delinquency |
4.13 | % | 5.43 | % | 5.19 | % | 4.73 | % | 5.01 | % | ||||||||||
| Period end loans serviced for others |
$ | 26,777,607 | $ | 30,283,326 | $ | 30,659,074 | $ | 31,491,554 | $ | 22,270,797 | ||||||||||
Page 12
CAPITAL ONE FINANCIAL CORPORATION (COF)
OTHER AND TOTAL SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
MANAGED BASIS (1)
| (in thousands) |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 (2) |
|||||||||||||||
| Other: |
||||||||||||||||||||
| Earnings |
||||||||||||||||||||
| Net interest income |
$ | (90,933 | ) | $ | (11,051 | ) | $ | 38,828 | $ | 55,083 | $ | 89,189 | ||||||||
| Non-interest income |
(13,935 | ) | 110,829 | 149,802 | 16,905 | (204,290 | ) | |||||||||||||
| Total revenue |
$ | (104,868 | ) | $ | 99,778 | $ | 188,630 | $ | 71,988 | $ | (115,101 | ) | ||||||||
| Provision for loan and lease losses |
18,452 | 24,309 | 25,508 | 59,129 | 63,634 | |||||||||||||||
| Restructuring expenses (10) |
— | 32,036 | 26,356 | 43,374 | 17,627 | |||||||||||||||
| Non-interest expenses |
52,748 | 27,152 | 31,111 | 88,457 | 17,481 | |||||||||||||||
| Income (loss) before taxes |
(176,068 | ) | 16,281 | 105,655 | (118,972 | ) | (213,843 | ) | ||||||||||||
| Income taxes (benefit) |
(150,062 | ) | (21,423 | ) | (22,242 | ) | (61,194 | ) | (84,173 | ) | ||||||||||
| Net income (loss) |
$ | (26,006 | ) | $ | 37,704 | $ | 127,897 | $ | (57,778 | ) | $ | (129,670 | ) | |||||||
| Selected Metrics |
||||||||||||||||||||
| Period end loans held for investment (3) |
$ | 464,347 | $ | 451,697 | $ | 659,008 | $ | 694,750 | $ | 9,270,663 | ||||||||||
| Average loans held for investment (3) |
$ | 488,594 | $ | 459,477 | $ | 482,905 | $ | 535,681 | $ | 3,523,335 | ||||||||||
| Period end deposits |
$ | 19,297,627 | $ | 21,183,994 | $ | 23,633,403 | $ | 25,944,110 | $ | 42,001,885 | ||||||||||
| Average deposits |
$ | 20,556,290 | $ | 22,201,746 | $ | 24,837,483 | $ | 28,262,122 | $ | 33,360,422 | ||||||||||
| Total: |
||||||||||||||||||||
| Earnings |
||||||||||||||||||||
| Net interest income |
$ | 3,230,131 | $ | 3,170,115 | $ | 3,212,037 | $ | 2,957,354 | $ | 2,749,990 | ||||||||||
| Non-interest income |
1,062,684 | 1,198,926 | 1,372,667 | 1,189,516 | 985,662 | |||||||||||||||
| Total revenue |
$ | 4,292,815 | $ | 4,369,041 | $ | 4,584,704 | $ | 4,146,870 | $ | 3,735,652 | ||||||||||
| Provision for loan and lease losses |
1,481,404 | 1,846,804 | 2,200,376 | 1,903,973 | 2,131,957 | |||||||||||||||
| Restructuring expenses(10) |
— | 32,036 | 26,356 | 43,374 | 17,627 | |||||||||||||||
| Non-interest expenses |
1,847,601 | 1,915,956 | 1,775,702 | 1,878,338 | 1,727,662 | |||||||||||||||
| Income (loss) before taxes |
963,810 | 574,245 | 582,270 | 321,185 | (141,594 | ) | ||||||||||||||
| Income taxes (benefit) |
244,359 | 170,359 | 145,212 | 92,405 | (58,490 | ) | ||||||||||||||
| Net income (loss) |
$ | 719,451 | $ | 403,886 | $ | 437,058 | $ | 228,780 | $ | (83,104 | ) | |||||||||
| Selected Metrics |
||||||||||||||||||||
| Period end loans held for investment |
$ | 130,265,283 | $ | 136,802,902 | $ | 140,989,691 | $ | 146,116,978 | $ | 149,729,519 | ||||||||||
| Average loans held for investment |
$ | 134,378,686 | $ | 138,184,181 | $ | 143,539,902 | $ | 148,012,826 | $ | 147,182,092 | ||||||||||
| Period end deposits |
$ | 117,786,559 | $ | 115,809,096 | $ | 114,503,111 | $ | 116,724,190 | $ | 121,116,324 | ||||||||||
| Average deposits |
$ | 117,530,424 | $ | 114,597,417 | $ | 115,882,740 | $ | 119,604,009 | $ | 112,136,745 | ||||||||||
Page 13
CAPITAL ONE FINANCIAL CORPORATION (COF)
LOAN DISCLOSURES AND SEGMENT
FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS NOTES
| (1) | In addition to analyzing the Company’s results on a reported basis, management evaluates Capital One’s results on a “managed” basis, which is a non-GAAP financial measure. Capital One also analyzes the results of each of its lines of business on a “managed” basis. Capital One’s managed results reflect the Company’s reported results, adjusted to reflect the consolidation of the majority of the Company’s credit card securitization trusts. Because of the January 1, 2010, adoption of the new consolidation accounting standards, the Company’s consolidated reported results subsequent to January 1, 2010 will be comparable to its consolidated results on a “managed” basis. However, the Company’s total segment results differs from its reported consolidated results because our segment results include the loans underlying one of our securitization trusts that remains unconsolidated. The outstanding balance of the loans in this off-balance sheet trust are reflected in our segment results was $150.8 million as of March 31, 2010. The accompanying Exhibit “Reconciliation to GAAP Financial Measures” presents a reconciliation of the Company’s non-GAAP “managed” results to its GAAP results for periods prior to January 1, 2010. |
| (2) | The impact and balances from the Chevy Chase Bank acquisition are included in the Other category for the first quarter of 2009. |
| (3) | Other loans held for investment includes unamortized premiums and discounts on loans acquired as part of North Fork and Hibernia acquisitions. |
| (4) | Loans acquired as part of the Chevy Chase Bank, FSB (CCB) acquisition are included in the total period end and average loans held for investment used in calculating the net charge-off and the 30+ day performing delinquency ratios. The loan balances and ratios excluding these loans are presented below. |
| Q1 2010 | Q4 2009 | Q3 2009 | Q2 2009 | |||||||||||||
| CCB period end acquired loan portfolio (in millions) |
$ | 6,799.4 | $ | 7,250.5 | $ | 7,885.0 | $ | 8,643.5 | ||||||||
| CCB average acquired loan portfolio (in millions) |
$ | 7,037.3 | $ | 7,511.9 | $ | 8,028.8 | $ | 8,498.9 | ||||||||
| Net charge-off rate |
||||||||||||||||
| Commercial and Multi-Family Real Estate |
1.48 | % | 3.05 | % | 1.38 | % | 0.95 | % | ||||||||
| Middle Market |
0.87 | % | 0.75 | % | 0.56 | % | 0.61 | % | ||||||||
| Total Commercial Lending |
1.48 | % | 2.05 | % | 1.08 | % | 0.83 | % | ||||||||
| Total Commercial Banking |
1.41 | % | 2.93 | % | 1.43 | % | 0.92 | % | ||||||||
| Mortgage |
1.02 | % | 1.24 | % | 1.24 | % | 0.77 | % | ||||||||
| Retail Banking |
2.22 | % | 3.20 | % | 2.57 | % | 2.56 | % | ||||||||
| Total Consumer Banking |
2.28 | % | 3.45 | % | 3.28 | % | 2.72 | % | ||||||||
| 30+ day performing delinquency rate |
||||||||||||||||
| Mortgage |
1.58 | % | 2.18 | % | 2.06 | % | 1.76 | % | ||||||||
| Retail Banking |
1.07 | % | 1.30 | % | 1.33 | % | 0.96 | % | ||||||||
| Total Consumer Banking |
4.95 | % | 6.56 | % | 6.27 | % | 5.61 | % | ||||||||
| Nonperforming asset rate |
||||||||||||||||
| Commercial and Multi-Family Real Estate |
3.71 | % | 3.34 | % | 2.79 | % | 2.25 | % | ||||||||
| Middle Market |
1.23 | % | 1.13 | % | 1.30 | % | 1.21 | % | ||||||||
| Total Commercial Lending |
2.60 | % | 2.39 | % | 2.15 | % | 1.85 | % | ||||||||
| Total Commercial Banking |
2.72 | % | 2.62 | % | 2.95 | % | 2.54 | % | ||||||||
| Mortgage |
5.36 | % | 3.88 | % | 3.24 | % | 2.73 | % | ||||||||
| Retail Banking |
2.17 | % | 2.23 | % | 2.09 | % | 1.88 | % | ||||||||
| Total Consumer Banking |
2.11 | % | 1.93 | % | 1.68 | % | 1.47 | % | ||||||||
| Nonperforming loans as a percentage of loans held for investment |
||||||||||||||||
| Commercial Banking |
2.55 | % | 2.43 | % | 2.73 | % | 2.40 | % | ||||||||
| Consumer Banking |
1.93 | % | 1.75 | % | 1.53 | % | 1.32 | % | ||||||||
| (5) | Includes non accrual consumer auto loans 90+ days past due. |
| (6) | Nonperforming assets is comprised of nonperforming loans and other real estate owned (OREO). The nonperforming asset ratios are calculated based on nonperforming assets divided by the combined total of loans held for investment and OREO. |
| (7) | The Company’s policy is not to reclassify credit card loans as nonperforming loans. Credit card loans continue to accrue finance charges and fees until charged off. The amount of finance charges and fees considered uncollectible are suppressed and are not recognized in income. |
| (8) | During Q4 2009, the Company reclassified $127.5 million of small ticket commercial real estate from loans held for investment to loans held for sale and recognized charge-offs of $79.5 million. |
| (9) | Includes all purchase transactions net of returns and excludes cash advance transactions. |
| (10) | The Company completed its 2007 restructuring initiative during 2009. |
Page 14
FOR IMMEDIATE RELEASE: April 22, 2010
| Contacts: | Jeff Norris | Danielle Dietz | Tatiana Stead | Julie Rakes | ||||
| Investor Relations | Investor Relations | Media Relations | Media Relations | |||||
| 703-720-2455 | 703-720-2455 | 703-720-2352 | 804-284-5800 |
Capital One Reports First Quarter 2010 Net Income of $636.3 million, or
$1.40 per share (diluted), up from a loss of $(0.44) in the first quarter of 2009
Revenues of $4.3 billion were up $554.0 million, or 14.8 percent, as compared to same quarter a year ago
McLean, Va. (April 22, 2010) – Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2010 of $636.3 million, or $1.40 per common share (diluted), versus fourth quarter 2009 net income of $375.6 million, or $0.83 per common share (diluted). This compares with a loss in the first quarter of 2009 of $(172.3) million, or $(0.44) per share (diluted).
Highlights compared to Fourth Quarter 2009
| • | Revenue declined $79.3 million, or 1.8 percent, due to a $4.0 billion, or 2.9 percent, decline in average loans |
| • | Provision expense declined $368.6 million driven by improving charge-offs and an allowance release |
| • | Tangible common equity to tangible managed assets, or “TCE ratio,” increased to 5.5 percent, up 78 basis points from the pro-forma December 31, 2009 ratio of 4.8 percent. |
“We’ve demonstrated our resilience through the most challenging economic cycle we’ve seen in generations, and we believe that charge-offs in our consumer lending businesses likely peaked in the first quarter,” said Richard D. Fairbank, Capital One’s Chairman and Chief Executive Officer. “While legislative and regulatory uncertainty remains, we believe that we are well-positioned to ramp up our businesses as we emerge from the recession, and to deliver strong and sustainable returns over the long term.”
Capital One – First Quarter 2010 Results
Page 2
Total Company Managed Results
| • | Total revenue in the first quarter of 2010 declined $79.3 million, or 1.8 percent, from the fourth quarter of 2009 to $4.3 billion as an improvement in margin partially offset a 2.9 percent decline in average loans. Non-interest income decreased $137.4 million in the first quarter, or 11.5 percent relative to the prior quarter, while net interest income increased $58.1 million, or 1.8 percent. |
| • | Net interest margin increased 20 basis points in the quarter to 7.1 percent, driven by a 17 basis point decrease in the cost of funds and a 3 basis point increase in loan yields. |
| • | Provision expense decreased $368.6 million from the prior quarter, or 20.0 percent, driven by lower charge-offs and an allowance release of $566 million. Total charge-offs in the quarter fell as improvements in the company’s commercial, auto finance, and retail banking businesses more than offset a slight increase in domestic card charge-offs. |
| • | The company released $566 million of allowance through provision expense in the first quarter of 2010. On January 1, 2010, the company built its allowance by $4.3 billion resulting in a $2.9 billion after-tax impact to retained earnings and the creation of a $1.6 billion deferred tax asset as a result of the adoption of FAS 167. This compares to a release of $386 million in the fourth quarter of 2009. The allowance as a percentage of outstanding loans was 5.96 percent at the end of the first quarter of 2010 as compared with 4.55 percent at the end of the prior quarter. |
| • | Average total deposits during the quarter were $117.5 billion, an increase of $2.9 billion, or 2.6 percent, over the prior quarter. Period-end total deposits increased by $2.0 billion to $117.8 billion. |
| • | The cost of interest-bearing liabilities decreased to 1.96 percent in the first quarter from 2.16 percent in the prior quarter. The overall cost of funds declined 17 basis points to 1.76 percent in the first quarter. |
| • | Period-end total managed assets decreased by 5.4 percent from the fourth quarter of 2009 to $200.7 billion at the end of the first quarter of 2010. The decline was driven primarily by reductions in loans held for investment. Loans declined $6.7 billion, or 4.9 percent, during the first quarter primarily as a result of charge-offs and the expected run-off of loans in businesses the company exited or repositioned earlier in the recession. Run-off businesses include Installment Loans in the Credit Card segment and Mortgages in the Consumer Banking segment. |
Capital One – First Quarter 2010 Results
Page 3
| • | Non-interest expenses of $1.8 billion decreased $100.3 million in the first quarter of 2010 from the prior quarter, driven primarily by reduced operating expenses across the business. |
| • | The company’s TCE ratio increased to 5.5 percent, up 78 basis points from the fourth quarter 2009 pro forma ratio of 4.8 percent after consolidation for FAS 167. The Tier 1 risk-based capital ratio of approximately 9.6 percent decreased 300 basis points relative to the pro forma FAS 167 ratio of 9.9 percent, and remains comfortably above the regulatory well-capitalized minimum. |
“Capital One posted strong bottom-line results in the quarter, as modestly improved pre-provision earnings were bolstered by lower provision expenses,” said Gary L. Perlin, Capital One’s Chief Financial Officer. “As we begin to emerge from the challenging economic environment, our strong and flexible balance sheet continues to position us well to take advantage of profitable growth opportunities.”
Impacts from Consolidation on Reported Balance Sheet
Effective January 1, 2010, Capital One adopted two new accounting standards (FAS 166 and 167) that resulted in the consolidation of the company’s credit card securitization trusts. The adoption of these new accounting standards resulted in the addition of approximately $41.9 billion of assets, consisting primarily of credit card loan receivables, and a reduction of $2.9 billion in stockholders’ equity as of January 1, 2010.
The adoption of these new accounting standards does not have a significant impact on the ability to compare the company’s results to prior periods on a “managed” basis; however, it does limit the comparability of the company’s reported financial results subsequent to January 1, 2010 with its reported financial results prior to January 1, 2010. Because of the January 1, 2010, adoption of the new consolidation accounting standards, the company’s reported results subsequent to January 1, 2010 will be comparable with its results on a “managed” basis.
Capital One – First Quarter 2010 Results
Page 4
Segment Results
The company reports the results of its business through three operating segments: Credit Card, Commercial Banking, and Consumer Banking. Please refer to the Financial Supplement for additional details.
Credit Card Highlights
For details on the sub-segments’ results, please refer to the Financial Supplement.
| • | Revenues relative to the prior quarter: |
| • | Domestic Card – down $91.7 million, or 3.6 percent |
| • | International Card – down $2.8 million, or 0.8 percent |
| • | Revenue margin in the Domestic Card sub-segment was 17.1 percent in the first quarter, compared to 17.0 percent in the prior quarter. The company expects quarterly Domestic Card revenue margin to decline over the next several quarters to around 15 percent by early 2011. |
| • | Period-end loans in the Domestic Card segment were $56.2 billion in the first quarter, a decline of $4.1 billion, or 6.8 percent, from the prior quarter. |
| • | International credit card loans declined in the quarter by $645.7 million, or 7.9 percent, to $7.6 billion. |
| • | Domestic Card provision expense increased $62.9 million in the first quarter, or 6.1 percent, relative to the prior quarter. Net charge-offs increased $74.0 million relative to the prior quarter, partially offset by an increase in allowance release of $11 million. International card provision expense decreased $92.4 million, or 53.9 percent. |
| • | Net charge-off rates relative to the prior quarter: |
| • | Domestic Card – increased 89 basis points to 10.48 percent from 9.59 percent |
| • | International Card – decreased 69 basis points to 8.83 percent from 9.52 percent |
| • | Delinquency rates relative to the prior quarter: |
| • | Domestic Card – decreased 48 basis points to 5.30 percent from 5.78 percent |
| • | International Card – decreased 16 basis points to 6.39 percent from 6.55 percent |
Commercial Banking Highlights
For more lending information and statistics on the segment results, please refer to the Financial Supplement.
The Commercial Banking segment consists of commercial and multi-family real-estate, middle market lending, and specialty lending, which are summarized under Commercial Lending, and small ticket commercial real estate.
| • | Period-end loans in Commercial Banking were $29.6 billion, essentially even with the prior quarter |
Capital One – First Quarter 2010 Results
Page 5
| • | Average deposits increased $2.4 billion, or 12.6 percent, to $21.9 billion during the first quarter from $19.4 billion during the prior quarter, while the deposit interest expense rate declined to 72 basis points. |
| • | Provision expense decreased $130.3 million relative to the prior quarter. Net charge-offs decreased $115.7 million in the first quarter, and the level of allowance build relative to the prior quarter was reduced by $11.9 million. |
| • | Non-performing asset rate relative to the prior quarter: |
| • | Total Commercial Banking – 2.64 percent, an increase of 12 basis points |
| • | Commercial lending – 2.52 percent, an increase of 19 basis points |
| • | Small ticket commercial real estate – 4.18 percent, a decrease of 69 basis points |
Consumer Banking highlights
For more lending information and statistics on the segment’s results, please refer to the Financial Supplement.
| • | Period-end loans relative to the prior quarter: |
| • | Auto – declined $739.6 million, or 4.1 percent, to $17.4 billion. The decline reflects continued impact of repositioning the business earlier in the recession. |
| • | Mortgage – declined $926.7 million, or 6.2 percent, to $14.0 billion. Mortgage loans continued to reflect expected run off in the portfolio. |
| • | Retail banking – declined $165.5 million, or 3.2 percent, to $5.0 billion. |
| • | Average deposits in Consumer Banking increased $2.1 billion, or 2.9 percent, to 75.1 billion during the first quarter from $73.0 billion in the prior quarter. Improved deposit mix, disciplined deposit pricing and favorable interest rates drove a 14 basis point improvement in the deposit interest expense rate in the fourth quarter. |
| • | Net charge-off rates relative to the prior quarter: |
| • | Auto – 2.97 percent, a decrease of 1.58 basis points |
| • | Mortgage – 0.94 percent, an increase of 22 basis points |
| • | Retail banking – 2.11 percent, a decrease of 82 basis points |
The company generates earnings from its managed loan portfolio, which includes both on-balance sheet loans and securitized (off-balance sheet) loans. For this reason, the company believes managed financial measures to be useful to stakeholders. In compliance with Regulation G of the Securities and Exchange Commission, the company is providing a numerical reconciliation of managed financial measures to comparable measures calculated on a reported basis using generally accepted accounting principles (GAAP). The reconciliation of such measures to the comparable GAAP figures are included in the Company’s Form 10-K for the fiscal year ended December 31, 2009, and in its current report on Form 8-K filed April 22, 2010, which are available on Capital One’s homepage, www.capitalone.com
Capital One – First Quarter 2010 Results
Page 6
Forward looking statements
The company cautions that its current expectations in this release dated April 22, 2010; and the company’s plans, objectives, expectations, and intentions, are forward-looking statements. Actual results could differ materially from current expectations due to a number of factors, including: general economic conditions in the U.S., the UK, or the company’s local markets, including conditions affecting consumer income, confidence, spending, and savings which may affect consumer bankruptcies, defaults, charge-offs, deposit activity, and interest rates; changes in the labor and employment market; changes in the credit environment; the company’s ability to execute on its strategic and operational plans; competition from providers of products and services that compete with the company’s businesses; increases or decreases in the company’s aggregate accounts and balances, or the growth rate and/or composition thereof; changes in the reputation of or expectations regarding the financial services industry or the company with respect to practices, products or financial condition; financial, legal, regulatory, tax or accounting changes or actions, including with respect to any litigation matter involving the company; and the success of the company’s marketing efforts in attracting or retaining customers. A discussion of these and other factors can be found in the company’s annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, the company’s report on Form 10-K for the fiscal year ended December 31, 2009.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A. and Capital One Bank (USA), N. A., had $117.8 billion in deposits and $200.7 billion in total managed assets outstanding as of March 31, 2010. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.
Capital One – First Quarter 2010 Results
Page 7
###
NOTE: First quarter 2010 financial results, SEC Filings, and earnings conference call slides are accessible on Capital One’s home page (www.capitalone.com). Choose “Investors” on the bottom of the home page to view and download the earnings press release, slides, and other financial information. Additionally, a podcast and webcast of today’s 5:00 pm (ET) earnings conference call is accessible through the same link.
 First Quarter 2010
Results April 22, 2010
Exhibit 99.2 |
 2
April 22, 2010
Forward looking statements
April
22,
2010,
available
on
Capital
One’s
website
at
www.capitalone.com
under
“Investors”.
Please note that the following materials containing information regarding Capital One’s financial
performance speak only as of the particular date or dates indicated in these materials. Capital
One does not undertake any obligation to update or revise any of the information contained herein whether as a result of
new information, future events or otherwise.
Certain statements in this presentation and other oral and written statements made by Capital One from
time to time are forward-looking statements, including those that discuss, among other
things, strategies, goals, outlook or other non-historical matters; projections, revenues, income, returns, earnings per share or
other financial measures for Capital One; future financial and operating results; and Capital
One’s plans, objectives, expectations and intentions; and the assumptions that underlie
these matters. To the extent that any such information is forward-looking, it is intended to fit within the safe harbor for forward-
looking information provided by the Private Securities Litigation Reform Act of 1995. Numerous factors
could cause our actual results to differ materially from those described in such
forward-looking statements, including, among other things: general economic and business conditions in the U.S., the UK, or Capital
One’s local markets, including conditions affecting employment levels, interest rates, consumer
income and confidence, spending and savings that may affect consumer bankruptcies, defaults,
charge-offs and deposit activity; an increase or decrease in credit losses (including increases due to a worsening of general
economic conditions in the credit environment); financial, legal, regulatory, tax or accounting
changes or actions, including with respect to any litigation matter involving Capital One;
increases or decreases in interest rates; the success of Capital One’s marketing efforts in attracting and retaining customers; the ability
of the company to continue to securitize its credit cards and consumer loans and to otherwise access
the capital markets at attractive rates and terms to capitalize and fund its operations and
future growth; with respect to financial and other products, increases or decreases in Capital One’s aggregate loan
balances and/or the number of customers and the growth rate and composition thereof, including
increases or decreases resulting from factors such as a shifting product mix, the amount of
actual marketing expenses made by Capital One and attrition of loan balances; the amount and rate of deposit growth;
Capital One’s ability to control costs; changes in the reputation of or expectations regarding
the financial services industry and/or Capital One with respect to practices, products or
financial condition; any significant disruption in Capital One’s operations or technology platform; Capital One’s ability to maintain a
compliance infrastructure suitable for its size and complexity; the amount of, and rate of growth in,
Capital One’s expenses as Capital One’s business develops or changes or as it expands
into new market areas; Capital One’s ability to execute on its strategic and operational plans; any significant disruption
of, or loss of public confidence in, the United States Mail service affecting our response rates and
consumer payments; Capital One’s ability to recruit and retain experienced personnel to
assist in the management and operations of new products and services; changes in the labor and employment markets; the
risk that cost savings and any other synergies from Capital One’s acquisitions may not be fully
realized or may take longer to realize than expected; disruptions from Capital One’s
acquisitions negatively impacting Capital One’s ability to maintain relationships with customers, employees or suppliers;
competition from providers of products and services that compete with Capital One’s businesses;
and other risk factors listed from time to time in reports that Capital One files with the
Securities and Exchange Commission (the “SEC”), including, but not limited to, the Annual Report on Form 10-K for the year ended
December 31, 2009. You should carefully consider the factors discussed above in evaluating these
forward-looking statements. All information in these slides is based on the consolidated
results of Capital One Financial Corporation, unless otherwise noted. A reconciliation of any non-GAAP financial measures
included in this presentation can be found in Capital One’s most recent Form 10-K concerning
annual financial results and in our most recent Form 8-K filed |
 3
April 22, 2010
Net Interest Income
Non Interest Income
Revenue
Marketing Expense
Operating Expense
Non-Interest Expense
Pre-Provision Earnings (before tax)
Net Charge-offs
Other
Allowance Build (Release)
Provision Expense
Discontinued Operations, net of tax
Total Company (after tax)
EPS Available to Common Shareholders
Tax Expense
Change
Q110
Pretax Income
$MM
3,170
1,199
4,369
188
1,760
1,948
2,421
2,188
45
(386)
1,847
376
404
(28)
$0.83
574
170
Q409
Operating Earnings (after tax)
3,228
1,062
4,290
181
1,667
1,848
2,442
2,018
26
(566)
1,478
636
720
(83)
$1.40
964
244
58
(137)
(79)
(7)
(93)
(100)
21
(170)
(19)
(180)
(369)
260
316
(55)
$0.57
390
74
Quarterly earnings were up $260MM to $636MM, or $1.40 per share
Highlights
•
Pre-provision
earnings up $21MM, or 1%,
as modest decline in revenue more than
offset by decline in non-interest expense
–
Revenue declined $79MM, or 1.8%,
despite a 2.9% decline in average
loans
o
Lower cost of funds
o
Improved collectability of finance
charges and fees
–
Non-Interest expenses down $100MM
•
Provision expense
declined $369MM
driven by lower charge-offs and allowance
release
–
Allowance build of $4.3B on January 1
through retained earnings per FAS 167
•
Other Items:
$MM
Net Gain on Securities
65
Mortgage I/O Bond Sale
127
Tax Settlement
50
Rep & Warranty
(224) |
 4
April 22, 2010
Loan balances fell in line with expectations as deposits continue to drive
lower funding costs
End
of
Period
Assets
1
End
of
Period
Liabilities
1
Liability Highlights
Asset Highlights
–
Loans down $6.7B or 4.9% driven by
•
$2.0B of charge-offs
•
$1.9B of run-off in Installment Lending
(Domestic Card) and Mortgage (Consumer
Banking)
•
Seasonal decline in card balances
•
Slower pace of decline in auto loans
–
Cost of funds decreased to 1.76% in first quarter
from 1.93% in Q409 and 2.45% in Q109
–
Continue to leverage the flexibility of our
Commercial and Consumer Banking platforms
–
Steep decline in securitization liability as a result of
pay-down of securitization conduits and scheduled
maturities
64.8
61.9
60.3
8.6
8.5
8.2
30.2
29.8
29.6
41.8
40.1
38.2
25.7
26.9
27.7
37.8
37.8
38.9
56.2
7.6
29.6
36.4
21.8
38.3
10.8
5.3
4.7
9.2
0
20
40
60
80
100
120
140
160
180
200
220
Q209
Q309
Q409
Q110
Domestic
Card
Commercial
Int’l Card
Consumer
$B
Other
Cash & Cash
Equivalents
Securities
1
Managed portfolio data Q2-Q409
Securitization
Interest Bearing
Deposits
Other Borrowings
Non-Interest
Bearing Deposits
Other Liabilities
$B
104.1
101.8
102.4
104.0
13.4
13.8
47.5
45.9
46.7
38.0
18.1
16.7
17.1
14.8
6.4
5.5
12.6
12.7
6.6
6.0
0
20
40
60
80
100
120
140
160
180
200
Q209
Q309
Q409
Q110
Cost of Interest
Bearing Liabilities
2.40%
2.28%
2.16%
1.96%
Total Cost
of Funds
2.16%
2.05%
1.93%
1.76% |
 5
April 22, 2010
FAS 167
12/31/2009
Adjustments
1/1/2010
Assets:
Cash and cash equivalents
8.7
4.0
12.7
Loans held for investment
90.6
47.6
138.2
Less: Allowance for loan and lease losses
(4.1)
(4.3)
(8.4)
Net loans held for investment
86.5
43.3
129.8
Accounts receivable from securitizations
7.6
(7.5)
0.1
Other
66.8
2.1
68.9
Total assets
169.6
41.9
211.5
Liabilities:
Securitization liability
4.0
44.3
48.3
Other liabilities
139.1
0.5
139.6
Total liabilities
143.1
44.8
187.9
Stockholders' Equity:
26.5
(2.9)
23.6
Total liabilities and stockholders' equity
169.6
41.9
211.5
$B
Impacts from Consolidation on Reported Balance Sheet |
 6
April 22, 2010
Allowance to loans ratio increased to 6% in Q1 2010 as a result of the
consolidation of $48B of credit card loans
Allowance Balance
Allowance as % of
Reported 30+ Delinquencies
Commercial Lending Allowance as % of
Non-Performing Loans
Allowance as % of Loans
Q4 '09
Jan 1 2010
Q1 '10
Build/(Release)
Credit Card
Domestic
1,927
$
5,590
$
5,162
$
(428)
$
International
199
727
612
(115)
$
Total Credit Card
2,126
$
6,317
$
5,774
$
(543)
$
Consumer Banking
Auto
665
$
665
$
523
$
(142)
$
Other Consumer Banking
411
484
412
1
$
Total Consumer Banking
1,076
$
1,149
$
935
$
(141)
$
Commercial Banking
785
$
785
$
915
$
130
$
Other
140
$
140
$
128
$
(12)
$
Total Allowance
4,127
$
8,391
$
7,752
$
(566)
$
$MM
1
1
$73MM Q110 reduction in ALLL associated with deconsolidation upon mortgage I/O sale
recorded in non-interest income
9.4%
9.7%
9.3%
3.2%
2.7%
1.2%
3.6%
3.4%
3.3%
0%
2%
4%
6%
8%
10%
12%
Q109
Q209
Q309
Q409
Q110
Consumer Banking
Credit Card
Commercial Banking
185%
181%
200%
39%
36%
65%
135%
147%
142%
0%
40%
80%
120%
160%
200%
240%
Q109
Q209
Q309
Q409
Q110
Domestic Card
Int’l Card
Auto Finance
112%
67%
122%
0%
50%
100%
150%
200%
Q109
Q209
Q309
Q409
Q110
Commercial
Total Company:
4.43% 4.44% 4.67%
4.55%
5.96% |
 7
April 22, 2010
Tier 1 Capital to
Risk Weighted Assets
0%
2%
4%
6%
8%
10%
12%
14%
Q209
Q309
Q409
Q409 Pro-
Forma for
FAS 167
Q110
Our capacity to absorb risk remains high
Other
Tier 1
Common
11.9%
13.8%
9.7%
Tangible Common Equity + Allowance to
Tangible Managed Assets
0%
2%
4%
6%
8%
10%
12%
Q209
Q309
Q409
Q409 Pro-
Forma for
FAS 167
Q110
5.6%
6.3%
Allowance
TCE
4.8%
5.5%
6.2%
7.8%
8.4%
9.1%
9.7%
8.5%
9.9%
9.6% |
 8
April 22, 2010
Margins as % of Managed Assets
Domestic Card Revenue Margin
8.68%
9.87%
9.50%
9.43%
6.91%
6.90%
6.19%
7.10%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Q209
Q309
Q409
Q110
Lower funding costs and strong Domestic Card revenue margin drove stable
to improving margins in the quarter
Revenue Margin
Net Interest Margin
13.81%
14.46%
16.76%
17.04%
17.10%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Q109
Q209
Q309
Q409
Q110
Funding costs improved 17 basis points
•
Mix shift from wholesale funding to bank deposits
•
Favorable mix shift within the deposit portfolio
•
Favorable interest rates and disciplined pricing
Loan yields improved 3 basis points
•
Strong revenue margin in Domestic Card business
Partially offset by:
•
Greater mix of investment securities vs. loans
Revenue margin remained elevated in Q1
•
Impact of better-then-expected credit, and strong loan
yields
Partially offset by:
•
Decline in overlimit fees in non-interest income
•
Expect quarterly Domestic Card revenue margin to
decline to around 15% by early 2011
Revenue Margin |
 9
April 22, 2010
Our Domestic Card business has delivered solid “pre-provision”
and
bottom-line ROA
Return on Managed Assets -
Domestic Card
17.1%
15.5%
15.5%
15.6%
14.5%
15.7%
15.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2004
2005
2006
2007
2008
2009
Q1'10
Provision
Taxes
ROA
Non-interest
Expense
Revenue Margin |
 10
April 22, 2010
The first quarter of 2010 is likely the peak of consumer credit charge-offs
10.48%
8.39%
9.59%
9.64%
9.23%
5.30%
5.78%
5.38%
5.08%
4.77%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
Q109
Q209
Q309
Q409
Q110
Domestic Credit Card ($58.1B*)
Net Charge-off Rate
30+ Delinquency Rate
Mortgage Credit ($15.4B*)
0.94%
0.43%
0.72%
0.45%
0.69%
0.93%
1.91%
0.97%
1.26%
1.17%
0%
1%
2%
3%
4%
5%
Auto Credit($17.8B*)
Q109
Q209
Q309
Q409 Q110
9.32%
9.19%
9.52%
7.30%
8.83%
6.69%
6.25%
6.63%
6.55%
6.39%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Q109
Q209
Q309
Q409
Q110
International Credit Card ($7.8B*)
2.97%
3.65%
4.55%
4.88%
4.38%
7.58%
7.48%
8.89%
10.03%
9.52%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
Q109
Q209 Q309
Q409 Q110 Net
Charge-off Rate 30+ Delinquency Rate
Net Charge-off Rate
30+ Delinquency Rate
Net Charge-off Rate
30+ Delinquency Rate
* Average assets for Q1 |
 11
April 22, 2010
Commercial Banking non-performing asset rates increased in the first
quarter of 2010
1.37%
0.56%
2.91%
1.42%
0.89%
2.64%
2.52%
2.84%
1.95%
2.47%
0%
1%
2%
3%
4%
5%
Q109
Q209
Q309
Q409
Q110
Total Commercial Banking ($29.7B*)
Non Performing
Asset Rate
Charge-off Rate
Commercial & Multi Family ($13.7B*)
1.45%
0.92%
3.02%
0.63%
1.37%
3.65%
2.00%
2.15%
3.25%
2.66%
0%
1%
2%
3%
4%
5%
Middle Market ($10.3B*)
Q109
Q209
Q309
Q409 Q110
Non Performing
Asset Rate
Charge-off Rate
0.80%
1.08%
2.04%
0.45%
1.14%
1.78%
1.37%
2.08%
2.33%
2.52%
0%
1%
2%
3%
4%
5%
Q109
Q209
Q309
Q409
Q110
Total Commercial Lending
Excluding Small Ticket CRE ($27.6B*)
Non Performing
Asset Rate
Charge-off Rate
0.82%
0.58%
0.75%
0.07%
0.56%
1.15%
0.57%
1.15%
1.09%
1.25%
0%
1%
2%
3%
4%
5%
Q109
Q209 Q309
Q409 Q110 Non
Performing Asset Rate
Charge-off Rate
* Period end assets for Q1 |
 12
April 22, 2010
•
Delivered resilient
profitability
•
Maintained strong balance
sheet
–
Solid liquidity and growing
deposits
–
Healthy coverage ratios and
capital
We remain well positioned to deliver significant shareholder value over the
long term
•
Businesses with sustainable,
above-hurdle returns
•
Positioned to grow as credit
normalizes
•
Strong and resilient balance
sheet
•
Lower pre-provision
earnings into 2011
–
Margins decline to more
normal levels
–
Elevated charge-offs and
runoff portfolios reduce loan
balances
–
Marketing and infrastructure
investments
•
Bottom line cushioned by
lower provision expense
–
Improving charge-offs
–
Potential for significant
allowance release
Weathered
the Storm
Path to
“Normalized”
Earnings
Delivering
Long-Term Value |
 13
April 22, 2010
Appendix |
 14
April 22, 2010
Q1 2009
Q1 2010
Q4 2009
Domestic Card delivered another quarter of strong pre-provision earnings and
net income
Highlights
Domestic Card
•
Revenues declined modestly from Q409,
but were up modestly from Q109
Declining loan balances partially
offset by modest increase in revenue
margin in the quarter
Redistribution between non-interest
income and net interest income
continued
•
Seasonal decline in non-interest expenses
•
Provision expense increased
Peaking charge-off dollars partially
offset by allowance release
•
Delinquency rate improved nearly 40 basis
points from Q409
•
Loans declined $4.1 billion in the quarter
Charge-off dollars peaking
ILs continue to run off
•
Purchase volumes declined seasonally,
but were up modestly vs. Q109
Net interest income
Non-interest income
Total revenue
Provision for loan and lease losses
Non-interest expenses
Income (loss) before taxes
Income taxes (benefit)
Net income (loss)
Selected Metrics
Period end loans held for investment
Average loans held for investment
Loans held for investment yield
Revenue Margin
Net charge-off rate
30+ day performing delinquency rate
Purchase Volume
618,507
1,096,215
809,423
2,483,787
578,149
205,937
372,212
56,228,012
58,107,647
14.78%
17.10%
5.30%
21,987,661
1,865,280
10.48%
793,934
1,033,341
832,878
2,575,507
709,288
248,251
461,037
60,299,827
60,443,441
14.08%
17.04%
24,592,679
1,781,573
9.59%
Earnings
5.78%
883,891
1,521,997
865,460
1,129
396
733
67,015,166
11.40%
13.81%
21,601,837
8.39%
5.08%
1,504,695
2,388,586
69,187,704
(in thousands) |
 15
April 22, 2010
Q1 2009
Q1 2010
Q4 2009
The International Card business posted increased net income as credit results
and provision expense improved
Highlights
International Card
•
Revenues relatively stable compared to
Q409, and up from Q109
•
Seasonal decline in non-interest expenses
•
Significant improvement in provision
expense, resulting from:
{
Significant pull backs and
management actions in the UK and
Canada
{
Stabilizing to improving economic
conditions in the UK and Canada
•
Delinquency rate improved 16 basis points
from Q409
•
Loans declined $646 million in the quarter
•
Purchase volumes declined seasonally, but
were up modestly vs. Q109
Net interest income
Non-interest income
Total revenue
Provision for loan and lease losses
Non-interest expenses
Income (loss) before taxes
Net income (loss)
Selected Metrics
Period end loans held for investment
Average loans held for investment
Loans held for investment yield
Revenue Margin
Net charge-off rate
30+ day performing delinquency rate
Purchase Volume
100,125
79,002
104,629
347,920
164,289
46,916
117,373
7,578,110
7,814,411
15.65%
17.81%
6.39%
1,935,853
247,795
8.83%
103,072
171,352
109,550
350,720
69,818
20,931
48,887
8,223,835
8,299,895
15.19%
16.90%
2,272,819
247,648
9.52%
Earnings
6.55%
101,590
160,789
123,192
4,602
2,006
2,596
8,069,961
12.41%
13.77%
1,871,723
7.30%
6.25%
186,993
288,583
8,382,679
(in thousands)
Income taxes (benefit) |
 16
April 22, 2010
Q1 2009
Q1 2010
Q4 2009
Commercial Banking pre-provision earnings were relatively stable, with
elevated credit costs driving a net loss in the quarter
Highlights
Commercial Banking
•
Revenues declined modestly from Q4
•
Relatively stable loan balances, modest
decline in loan yields
•
13% sequential growth in average
deposits, modest improvement in deposit
expense rate
•
Provision expense declined from Q409,
but remains elevated
•
Non-performing asset rate continued to
increase
Net interest income
Non-interest income
Total revenue
Provision for loan and lease losses
Non-interest expenses
Income (loss) before taxes
Net income (loss)
Selected Metrics
Period end loans held for investment
Average loans held for investment
Loans held for investment yield
Period end deposits
Average deposits
Deposit interest expense rate
Core deposit intangible amortization
Net charge-off rate
42,375
238,209
192,420
353,776
(76,853)
(27,375)
(49,478)
29,612,138
29,722,674
5.03%
21,605,482
21,858,792
14,389
1.37%
311,401
0.72%
37,992
368,493
197,355
356,568
(209,280)
(73,248)
(136,032)
29,613,050
29,867,245
5.11%
20,480,297
19,420,005
2.91%
318,576
0.80%
Earnings
13,847
41,214
117,304
141,805
27,564
9,647
17,917
29,431,097
4.92%
15,691,679
16,045,943
0.56%
0.92%
9,092
245,459
286,673
29,545,277
Non-performing loans as a % of
loans HFI
Non-performing asset rate
2.64%
2.48%
2.52%
2.37%
1.95%
1.85%
(in thousands)
Income taxes (benefit) |
 17
April 22, 2010
Q1 2009
Q1 2010
Q4 2009
Consumer Banking profits increased in the quarter, driven by strong deposit
results and improving credit
Highlights
Consumer Banking
•
Revenue improvement from Q409 driven
by sale of I/O bonds and deconsolidation
of certain mortgage trusts
•
Significant improvement in provision
expense, driven by Improving credit
performance and outlook in Auto Finance
business
•
Loans declined as a result of:
Continuing impact of repositioning
the Auto Finance business earlier in
the recession
Continuing run off of mortgage
portfolio
•
Auto originations increased 32% from
Q409, but down modestly from Q109
•
Average deposit growth of $2.1 billion, or
3%, with disciplined pricing and improving
interest expense rate
Net interest income
Non-interest income
Total revenue
Provision for loan and lease losses
Non-interest expenses
Income (loss) before taxes
Net income (loss)
Selected Metrics
Period end loans held for investment
Average loans held for investment
Loans held for investment yield
Auto loan originations
Period end deposits
Average deposits
Deposit interest expense rate
Core deposit intangible amortization
315,612
49,526
688,381
1,212,200
474,293
168,943
305,350
36,382,676
38,245,360
8.96%
1,343,463
76,883,450
1.27%
37,735
896,588
75,115,342
153,099
249,309
749,021
986,468
(11,862)
(4,152)
(7,710)
38,214,493
39,114,123
8.83%
1,018,125
74,144,805
39,974
833,369
72,975,666
Earnings
1.41%
163,257
268,233
579,724
38,954
13,634
25,320
35,942,632
9.43%
1,463,402
63,422,760
35,593
62,730,380
2.04%
723,654
886,911
36,543,097
Non-performing loans as a % of
loans HFI
Non-performing asset rate
1.75%
1.62%
1.60%
1.45%
1.16%
0.98%
Net charge-off rate
2.03%
2.85%
3.30%
30+ day performing delinquency rate
4.13%
5.43%
5.01%
Period end loans serviced for others
27,777,607
30,283,326
22,270,797
(in thousands)
Income taxes (benefit) |
 |
Exhibit 99.3
Capital One Financial Corporation
Reconciliation to GAAP Financial Measures
The Company’s consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) are referred to as its “reported” or GAAP financial statements. Loans included in securitization transactions which qualified as sales under GAAP have been removed from the Company’s “reported” balance sheet prior to January 1, 2010. However, servicing fees, finance charges, and other fees, net of charge-offs, and interest paid to investors of securitizations were recognized as servicing and securitization income on the “reported” income statement.
The Company’s “managed” consolidated financial statements reflect adjustments made to eliminate the effect of securitization transactions qualifying as sales under GAAP. The Company generates earnings from its “managed” loan portfolio which includes both the on-balance sheet loans and off-balance sheet loans. Prior to January 1, 2010, the Company reclassified the servicing and securitizations income from our off-balance sheet securitizations and presented the results of the securitized loans in the same manner as our own loans. The Company believes our previous “managed” financial presentation and related metrics are useful to investors because it is consistent with how management views and manages the business. The Company believes the managed presentation is more reflective of the economics of our aggregate business, and it is useful to investors in understanding the credit risk and performance of both on and off-balance sheet loans. As a result of the consolidation occurring on January 1, 2010, “reported” or GAAP is equivalent to “managed”. The following tables present the reconciliation of “reported” to “managed” prior to January 1, 2010.
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
GAAP BASIS
| (in millions, except per share data and as noted) |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 (6) |
||||||||||||
| Earnings (Reported Basis) |
||||||||||||||||
| Net Interest Income |
$ | 1,954.2 | $ | 2,005.2 | $ | 1,944.7 | $ | 1,793.0 | ||||||||
| Non-Interest Income (1) |
1,411.7 | 1,552.4 | 1,232.2 | (4) | 1,089.8 | |||||||||||
| Total Revenue (2) |
3,365.9 | 3,557.6 | 3,176.9 | 2,882.8 | ||||||||||||
| Provision for Loan Losses |
843.7 | 1,173.2 | 934.0 | 1,279.1 | ||||||||||||
| Reported Balance Sheet Statistics (period average) (A) |
||||||||||||||||
| Average Loans Held for Investment |
$ | 94,732 | $ | 99,354 | $ | 104,682 | $ | 103,242 | ||||||||
| Average Earning Assets |
$ | 143,663 | $ | 145,280 | $ | 150,804 | $ | 145,172 | ||||||||
| Average Assets |
$ | 169,856 | $ | 173,428 | $ | 177,628 | $ | 168,489 | ||||||||
| Return on Average Assets (ROA) |
0.95 | % | 1.01 | % | 0.52 | % | (0.20 | )% | ||||||||
| Reported Balance Sheet Statistics (period end) (A) |
||||||||||||||||
| Loans Held for Investment |
$ | 90,619 | $ | 96,714 | $ | 100,940 | $ | 104,921 | ||||||||
| Total Assets |
$ | 169,376 | $ | 168,432 | $ | 171,944 | $ | 177,431 | ||||||||
| Tangible Assets (D) |
$ | 155,516 | $ | 154,315 | $ | 157,778 | $ | 163,230 | ||||||||
| Tangible Common Equity to Tangible Assets Ratio (E) |
8.03 | % | 7.82 | % | 7.10 | %(5) | 5.75 | % | ||||||||
| Performance Statistics (Reported) Quarter over Quarter (A) |
||||||||||||||||
| Net Interest Income Growth (7) |
(3 | )% | 3 | % | 8 | % | (1 | )% | ||||||||
| Non Interest Income Growth (7) |
(9 | )% | 26 | % | 13 | % | (20 | )% | ||||||||
| Revenue Growth |
(5 | )% | 12 | % | 10 | % | (9 | )% | ||||||||
| Net Interest Margin |
5.44 | % | 5.52 | % | 5.16 | % | 4.94 | % | ||||||||
| Revenue Margin |
9.37 | % | 9.80 | % | 8.43 | % | 7.94 | % | ||||||||
| Risk Adjusted Margin (B) |
6.07 | % | 6.69 | % | 5.46 | % | 4.81 | % | ||||||||
| Non Interest Expense as a % of Average Loans Held for Investment (annualized) |
8.23 | % | 7.26 | % | 7.34 | % | 6.76 | % | ||||||||
| Efficiency Ratio (C) |
56.92 | % | 49.91 | % | 59.12 | % | 59.93 | % | ||||||||
| Asset Quality Statistics (Reported) (A) |
||||||||||||||||
| Allowance |
$ | 4,127 | $ | 4,513 | $ | 4,482 | $ | 4,648 | ||||||||
| Allowance as a % of Reported Loans Held for Investment (3) |
4.55 | % | 4.67 | % | 4.44 | % | 4.43 | % | ||||||||
| Net Charge-Offs (3) |
$ | 1,185 | $ | 1,128 | $ | 1,117 | $ | 1,138 | ||||||||
| Net Charge-Off Rate (3) |
5.00 | % | 4.54 | % | 4.28 | % | 4.41 | % | ||||||||
| 30+ day performing delinquency rate (3) |
4.13 | % | 4.12 | % | 3.71 | % | 3.65 | % | ||||||||
1
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
Adjustments
| (in millions, except per share data and as noted) |
2009 Q4 |
2009 Q3 (14) |
2009 Q2 (14) |
2009 Q1 (10)(14) |
||||||||||||
| Earnings |
||||||||||||||||
| Net Interest Income |
$ | 1,215.9 | $ | 1,206.8 | $ | 1,012.7 | $ | 957.0 | ||||||||
| Non-Interest Income (2) |
(212.8 | ) | (179.7 | ) | (42.7 | )(5) | (104.1 | ) | ||||||||
| Total Revenue (1) |
1,003.1 | 1,027.1 | 970.0 | 852.9 | ||||||||||||
| Provision for Loan Losses |
1,003.1 | 1,027.1 | 970.0 | 852.9 | ||||||||||||
| Balance Sheet Statistics (period average) (A) |
||||||||||||||||
| Average Loans Held for Investment |
$ | 43,452 | $ | 44,186 | $ | 43,331 | $ | 43,940 | ||||||||
| Average Earning Assets |
$ | 40,236 | $ | 40,594 | $ | 40,404 | $ | 41,442 | ||||||||
| Average Assets |
$ | 40,569 | $ | 41,227 | $ | 40,774 | $ | 41,680 | ||||||||
| Return on Average Assets (ROA) |
(0.18 | )% | (0.20 | )% | (0.10 | )% | 0.04 | % | ||||||||
| Balance Sheet Statistics (period end) (A) |
||||||||||||||||
| Loans Held for Investment |
$ | 46,184 | $ | 44,275 | $ | 45,177 | $ | 44,809 | ||||||||
| Total Assets |
$ | 42,767 | $ | 41,251 | $ | 42,230 | $ | 42,527 | ||||||||
| Tangible Assets (D) |
$ | 42,767 | $ | 41,251 | $ | 42,230 | $ | 42,526 | ||||||||
| Tangible Common Equity to Tangible Assets Ratio (H) |
(1.73 | )% | (1.65 | )% | (1.50 | )%(6) | (1.19 | )% | ||||||||
| Performance Statistics (A) |
||||||||||||||||
| Net Interest Income Growth |
2 | % | 6 | % | — | % | — | % | ||||||||
| Non Interest Income Growth |
(4 | )% | (11 | )% | 8 | % | 3 | % | ||||||||
| Revenue Growth |
— | % | (1 | )% | 1 | % | 4 | % | ||||||||
| Net Interest Margin |
1.46 | % | 1.39 | % | 1.03 | % | 0.95 | % | ||||||||
| Revenue Margin |
0.13 | % | 0.07 | % | 0.25 | % | 0.07 | % | ||||||||
| Risk Adjusted Margin (B) |
(1.33 | )% | (1.46 | )% | (1.15 | )% | (1.07 | )% | ||||||||
| Investment |
(2.59 | )% | (2.24 | )% | (2.15 | )% | (2.02 | )% | ||||||||
| Efficiency Ratio (C) |
(13.07 | )% | (11.18 | )% | (13.83 | )% | (13.68 | )% | ||||||||
| Asset Quality Statistics (A) |
||||||||||||||||
| Net Charge-Offs (3) |
$ | 1,003 | $ | 1,027 | $ | 970 | $ | 853 | ||||||||
| Net Charge-Off Rate (3) |
1.33 | % | 1.46 | % | 1.36 | % | 1.00 | % | ||||||||
| 30+ day performing delinquency rate (3) |
0.60 | % | 0.43 | % | 0.39 | % | 0.45 | % | ||||||||
2
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
MANAGED BASIS
| (in millions) |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 (6) |
|||||||||||||||
| Earnings (Managed Basis) |
|||||||||||||||||||
| Net Interest Income |
$ | 3,170.1 | $ | 3,212.0 | $ | 2,957.4 | $ | 2,750.0 | |||||||||||
| Non-Interest Income (1) |
1,198.9 | 1,372.7 | 1,189.5 | (4) | 985.7 | ||||||||||||||
| Total Revenue (2) |
4,369.0 | 4,584.7 | 4,146.9 | 3,735.7 | |||||||||||||||
| Provision for Loan Losses |
1,846.8 | 2,200.3 | 1,904.0 | 2,132.0 | |||||||||||||||
| Managed Balance Sheet Statistics (period average) (A) |
|||||||||||||||||||
| Average Loans Held for Investment |
$ | 138,184 | $ | 143,540 | $ | 148,013 | $ | 147,182 | |||||||||||
| Average Earning Assets |
$ | 183,899 | $ | 185,874 | $ | 191,208 | $ | 186,614 | |||||||||||
| Average Assets |
$ | 210,425 | $ | 214,655 | $ | 218,402 | $ | 210,169 | |||||||||||
| Return on Average Assets (ROA) |
% | 0.77 | % | 0.81 | % | 0.42 | % | (0.16 | )% | ||||||||||
| Managed Balance Sheet Statistics (period end) (A) |
|||||||||||||||||||
| Loans Held for Investment |
$ | 136,803 | $ | 140,990 | $ | 146,117 | $ | 149,730 | |||||||||||
| Total Assets |
$ | 212,143 | $ | 209,683 | $ | 214,174 | $ | 219,958 | |||||||||||
| Tangible Assets (D) |
$ | 198,283 | $ | 195,566 | $ | 200,008 | $ | 205,756 | |||||||||||
| Tangible Common Equity to Tangible Assets Ratio (E) |
% |
|
6.30 | % | 6.17 | % | 5.60 | %(5) | 4.56 | % | |||||||||
| Performance Statistics (Managed) Quarter over Quarter (A) |
|||||||||||||||||||
| Net Interest Income Growth (7) |
% | (1 | )% | 9 | % | 8 | % | (1 | )% | ||||||||||
| Non Interest Income Growth (7) |
% | (13 | )% | 15 | % | 21 | % | (17 | )% | ||||||||||
| Revenue Growth |
% | (5 | )% | 11 | % | 11 | % | (5 | )% | ||||||||||
| Net Interest Margin |
% | 6.90 | % | 6.91 | % | 6.19 | % | 5.89 | % | ||||||||||
| Revenue Margin |
% | 9.50 | % | 9.87 | % | 8.68 | % | 8.01 | % | ||||||||||
| Risk Adjusted Margin (B) |
% | 4.74 | % | 5.23 | % | 4.31 | % | 3.74 | % | ||||||||||
| Non Interest Expense as a % of Average Loans Held for Investment (annualized) |
% | 5.64 | % | 5.02 | % | 5.19 | % | 4.74 | % | ||||||||||
| Efficiency Ratio (C) |
% | 43.85 | % | 38.73 | % | 45.29 | % | 46.25 | % | ||||||||||
| Asset Quality Statistics (Managed) (A) |
|||||||||||||||||||
| Net Charge-Offs (3) |
(4 | ) | $ | 2,188 | $ | 2,155 | $ | 2,087 | $ | 1,991 | |||||||||
| Net Charge-Off Rate (3) |
% | (4) | 6.33 | % | 6.00 | % | 5.64 | % | 5.41 | % | |||||||||
| 30+ day performing delinquency rate (3) |
% | (4) | 4.73 | % | 4.55 | % | 4.10 | % | 4.10 | % | |||||||||
| (1) | Includes the impact from the change in fair value of retained interests, including the interest-only strips, which totaled $55.3 million in Q4 2009, $37.3 million in Q3 2009, $(114.5) million in Q2 2009 and $(128.0) million in Q1 2009. |
3
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY NOTES
| (2) | In accordance with the Company’s finance charge and fee revenue recognition policy, amounts billed to customers but not recorded as revenue totaled: $490.4 million in Q4 2009, $517.0 million in Q3 2009, $571.9 million in Q2 2009 and 544.4 million in Q1 2009. |
| (3) | Allowance as a % of Loans Held for Investment, Net Charge-off Rate and 30+ Day Performing Delinquency Rate include period end loans held for investment and average loans held for investment acquired as part of the Chevy Chase Bank, FSB (CCB) acquisition. |
| Q4 2009 | Q3 2009 | Q2 2009 | Q1 2009 | |||||||||||||
| CCB period end acquired loan portfolio (in millions) |
$ | 7,250.5 | $ | 7,885.0 | $ | 8,643.5 | $ | 8,858.9 | ||||||||
| CCB average acquired loan portfolio (in millions) |
$ | 7,511.9 | $ | 8,028.8 | $ | 8,498.9 | $ | 3,072.8 | ||||||||
| Allowance as a % of loans held for investment |
4.95 | % | 5.08 | % | 4.86 | % | 4.84 | % | ||||||||
| Net charge-off rate (GAAP) |
5.44 | % | 4.94 | % | 4.65 | % | 4.54 | % | ||||||||
| Net charge-off rate (Managed) |
6.70 | % | 6.36 | % | 5.98 | % | 5.53 | % | ||||||||
| 30+ day performing delinquency rate (GAAP) |
4.49 | % | 4.48 | % | 4.06 | % | 3.99 | % | ||||||||
| 30+ day performing delinquency rate (Managed) |
4.99 | % | 4.82 | % | 4.36 | % | 4.36 | % | ||||||||
| (4) | In Q2 2009 the Company elected to convert and sell 404,508 shares of MasterCard class B common stock, which resulted in a gain of $65.5 million that is included in non-interest income. |
| (5) | Includes the impact of the issuance of 56,000,000 common shares at $27.75 per share on May 14, 2009. |
| (6) | Effective February 27, 2009 the Company acquired Chevy Chase Bank, FSB for $475.9 million, which included $9.8 billion in loans and $13.6 billion in deposits. The Company paid cash of $445.0 million and issued 2.6 million common shares valued at $30.9 mi |
| (7) | Prior period amounts have been recalculated to conform with current period presentation. |
STATISTICS / METRIC CALCULATIONS
| (A) | Calculated based on continuing operations, except for Average equity and Return on Average Equity (ROE), which are based on the Company’s average stockholders’ equity. |
| (B) | Calculated based on total revenue less net charge-offs divided by average earning assets, expressed as a percentage. |
| (C) | Calculated based on non-interest expense less restructuring expense divided by total revenue. |
| (D) | Consists of reported and managed assets less intangible assets, which is considered a non-GAAP measure. |
| (E) | Tangible Common Equity to Tangible Assets Ratio (“TCE Ratio”) is considered a non-GAAP measure. |
4
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates (1)
(dollars in thousands) (unaudited)
| Quarter Ended 12/31/09 | Quarter Ended 03/31/09 | |||||||||||||||||||||
| Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
|||||||||||||||||
| GAAP Basis |
||||||||||||||||||||||
| Interest-earning assets: |
||||||||||||||||||||||
| Loans held for investment |
$ | 94,731,990 | $ | 2,108,325 | 8.90 | % | $ | 103,242,406 | $ | 2,191,618 | 8.49 | % | ||||||||||
| Other |
10,444,494 | 83,013 | 3.18 | % | 7,720,249 | 63,117 | 3.27 | % | ||||||||||||||
| Total interest-earning assets |
$ | 143,663,108 | $ | 2,595,088 | 7.23 | % | $ | 145,171,757 | $ | 2,650,009 | 7.30 | % | ||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||
| Securitization liability |
4,248,892 | 53,475 | 5.03 | % | 7,046,543 | 90,733 | 5.15 | % | ||||||||||||||
| Total interest-bearing liabilities |
$ | 124,059,990 | $ | 640,875 | 2.07 | % | $ | 124,354,899 | $ | 857,021 | 2.76 | % | ||||||||||
| Net interest spread |
5.16 | % | 4.54 | % | ||||||||||||||||||
| Interest income to average interest-earning assets |
7.23 | % | 7.30 | % | ||||||||||||||||||
| Interest expense to average interest-earning assets |
1.79 | % | 2.36 | % | ||||||||||||||||||
| Net interest margin |
5.44 | % | 4.94 | % | ||||||||||||||||||
| Adjustments |
||||||||||||||||||||||
| Interest-earning assets: |
||||||||||||||||||||||
| Loans held for investment |
$ | 43,452,191 | $ | 1,529,746 | 1.63 | % | $ | 43,939,686 | $ | 1,288,031 | 0.97 | % | ||||||||||
| Other |
(3,216,092 | ) | (66,181 | ) | (2.25 | )% | (2,497,533 | ) | (47,374 | ) | (2.06 | )% | ||||||||||
| Total interest-earning assets |
$ | 40,236,099 | $ | 1,463,565 | 1.60 | % | $ | 41,442,153 | $ | 1,240,657 | 1.04 | % | ||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||
| Securitization liability |
40,588,015 | 247,664 | (2.34 | )% | 41,766,616 | 283,655 | (2.08 | )% | ||||||||||||||
| Total interest-bearing liabilities |
$ | 40,588,015 | $ | 247,664 | 0.09 | % | $ | 41,766,616 | $ | 283,655 | (0.01 | )% | ||||||||||
| Net interest spread |
1.51 | % | 1.05 | % | ||||||||||||||||||
| Interest income to average interest-earning assets |
1.60 | % | 1.04 | % | ||||||||||||||||||
| Interest expense to average interest-earning assets |
0.14 | % | 0.09 | % | ||||||||||||||||||
| Net interest margin |
1.46 | % | 0.95 | % | ||||||||||||||||||
| Managed Basis |
||||||||||||||||||||||
| Interest-earning assets: |
||||||||||||||||||||||
| Loans held for investment |
$ | 138,184,181 | $ | 3,638,071 | 10.53 | % | $ | 147,182,092 | $ | 3,479,649 | 9.46 | % | ||||||||||
| Other |
7,228,402 | 16,832 | 0.93 | % | 5,222,716 | 15,743 | 1.21 | % | ||||||||||||||
| Total interest-earning assets |
$ | 183,899,207 | $ | 4,058,653 | 8.83 | % | $ | 186,613,910 | $ | 3,890,666 | 8.34 | % | ||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||
| Securitization liability |
44,836,907 | 301,139 | 2.69 | % | 48,813,159 | 374,388 | 3.07 | % | ||||||||||||||
| Total interest-bearing liabilities |
$ | 164,648,005 | $ | 888,539 | 2.16 | % | $ | 166,121,515 | $ | 1,140,676 | 2.75 | % | ||||||||||
| Net interest spread |
6.67 | % | 5.59 | % | ||||||||||||||||||
| Interest income to average interest-earning assets |
8.83 | % | 8.34 | % | ||||||||||||||||||
| Interest expense to average interest-earning assets |
1.93 | % | 2.45 | % | ||||||||||||||||||
| Net interest margin |
6.90 | % | 5.89 | % | ||||||||||||||||||
| (1) | Reflects amounts based on continuing operations. |
5
This document is not subject to legal hold