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Capital One Reports Earnings for 2003

January 21, 2004 at 4:08 PM EST
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                       23% EPS Increase Year Over Year

                   Company Increases 2004 Earnings Guidance

MCLEAN, Va., Jan. 21 /PRNewswire-FirstCall/ -- Capital One Financial Corporation (NYSE: COF) today announced 23 percent earnings per share growth for 2003. The company also announced that it began expensing all stock based compensation, including stock options, in 2003 and will continue to do so moving forward. Additionally, the company increased its 2004 earnings guidance to be between $5.30 and $5.60 per share (fully diluted).

Earnings were $1.1 billion, or $4.85 per share (fully diluted), in 2003 compared with $0.9 billion, or $3.93 per share, in 2002. Earnings for the fourth quarter of 2003 were $265.7 million, or $1.11 per share (fully diluted), compared with earnings of $239.7 million, or $1.05 per share, for the comparable quarter of the prior year and $275.5 million, or $1.17 per share, in the previous quarter.

"2003 was another strong year for Capital One. Earnings per share grew 23 percent, managed loans increased 19 percent, our charge-off rate improved dramatically throughout the year, and our diversification efforts generated meaningful profits," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "Capital One is well positioned for continued success in 2004."

During the fourth quarter of 2003, Capital One grew its managed loan portfolio by $4.0 billion to $71.2 billion. The managed charge-off rate declined to 5.32 percent in the fourth quarter of 2003, from 5.44 percent in the previous quarter and 6.21 percent in the comparable quarter of the prior year. The managed delinquency rate (30+ days) declined to 4.46 percent as of December 31, 2003 from 4.65 percent as of the end of the previous quarter and 5.60 percent as of December 31, 2002.

The company continues to diversify its portfolio beyond U.S. credit cards and shift its product mix upmarket. As a result, Capital One's managed revenue margin declined to 13.89 percent in the fourth quarter of 2003 from 14.36 percent in the previous quarter. Management expects revenue margins and its charge-off rate to be somewhat lower in 2004 than in 2003.

"In view of the projected improvement in our credit performance and somewhat lower growth, our allowance for loan losses in 2004 is expected to continue to decline," said Gary L. Perlin, Capital One's Chief Financial Officer. "In addition," Perlin said, "Capital One will now expense stock options. This accounting policy was implemented starting in the first quarter of 2003. The impact in 2003 was $6.3 million. The impact moving forward is expected to be substantially higher and has been included in the company's earnings guidance for 2004."

The expensing of stock options is being implemented in line with the Statement of Financial Accounting Standard No. 123, "Accounting for Stock Based Compensations" ("SFAS 123"), under the prospective method for all awards granted, modified or settled on or after January 1, 2003. Under the expense recognition provisions of SFAS 123 the calculated fair value of stock based compensation is amortized into expense over the options' vesting period. The financial results for previous quarters in 2003 have been adjusted to reflect this change.

The company generates earnings from its managed loan portfolio, which includes both on-balance sheet loans and securitized 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). Please see the schedule titled "Reconciliation to GAAP Financial Measures" attached to this release for more information.

The company cautions that its current expectations in this release, in the presentation slides available on the company's website (www.capitalone.com), and on its Form 8-K dated January 21, 2004, for 2004 earnings, charge-off rates, margins, and allowance for loan losses, and loan growth and composition are forward-looking statements and actual results could differ materially from current expectations due to a number of factors, including: continued intense competition from numerous providers of products and services which compete with our businesses; changes in our aggregate accounts and balances and the actual growth rate and composition thereof; the company's ability to access the capital markets at attractive rates and terms to fund its operations and future growth; and general economic conditions affecting consumer income and spending, which may affect consumer bankruptcies, defaults, and charge-offs. A discussion of these and other factors can be found in Capital One's annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, Capital One's report on Form 10-Q for the quarter ended September 30, 2003.

About Capital One

Headquartered in McLean, Virginia, Capital One Financial Corporation (www.capitalone.com) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products and Capital One Auto Finance, Inc., which offers auto loan products. Capital One's subsidiaries collectively had 47.0 million managed accounts and $71.2 billion in managed loans outstanding as of December 31, 2003. Capital One, a Fortune 500 company, is one of the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 500 index.

NOTE: Fourth quarter 2003 financial results, SEC Filings, and fourth quarter earnings conference call slides are accessible on Capital One's home page (www.capitalone.com). Choose "Investors" under "Company Information" on the left side of the page to view and download the earnings press release, slides, and other financial information. Additionally, a webcast of today's 5:00pm (EDT) earnings conference call is accessible through the same link.



                     CAPITAL ONE FINANCIAL CORPORATION (COF)
                  FINANCIAL & STATISTICAL SUMMARY REPORTED BASIS

                                              2003         2003       2002
    (in millions, except per share
     data as noted)                           Q4(5)        Q3(5)      Q4
    Earnings (Reported Basis)
    Net Interest Income                    $   664.1    $   703.9   $  731.0
    Non-Interest Income                      1,437.5      1,363.2    1,320.3
    Total Revenue(1)                         2,101.6      2,067.1    2,051.4
    Provision for Loan Losses                  390.4        364.1      543.8
    Marketing Expenses                         290.1        316.0      210.8
    Operating Expenses                         999.3        925.8      910.2
    Income Before Taxes and Accounting
     Change                                    421.7        461.2      386.6
    Tax Rate                                    37.0 %       37.0       38.0 %
    Cumulative Effect of Accounting
     Change, net of tax(2)                       -           15.0    -
    Net Income                             $   265.7    $   275.5   $  239.7
    Common Share Statistics
    Basic EPS                              $    1.16    $    1.23   $   1.08
    Diluted EPS                            $    1.11    $    1.17   $   1.05
    Dividends Per Share                    $    0.03    $    0.03   $   0.03
    Book Value Per Share (period end)      $   25.75    $   24.53   $  20.44
    Stock Price Per Share (period end)     $   61.29    $   57.04   $  29.72
    Total Market Capitalization
     (period end)                          $14,405.7    $13,073.6   $6,722.5
    Shares Outstanding (period end)            235.0        229.2      226.2
    Shares Used to Compute Basic EPS           228.1        224.6      221.8
    Shares Used to Compute Diluted EPS         239.2        236.3      228.2
    Reported Balance Sheet Statistics
     (period avg.)
    Average Loans                          $  31,297    $  28,949   $ 27,260
    Average Earning Assets                 $  40,792    $  38,133   $ 34,075
    Average Assets                         $  45,002    $  41,704   $ 37,208
    Average Equity                         $   5,887    $   5,424   $  4,568
    Net Interest Margin                         6.51 %       7.38 %     8.58 %
    Revenue Margin                             20.61 %      21.68 %    24.08 %
    Risk Adjusted Margin (3)                   17.02 %      17.66 %    19.18 %
    Return on Average Assets (ROA)              2.36 %       2.64 %     2.58 %
    Return on Average Equity (ROE)             18.05 %      20.32 %    20.99 %
    Net Charge-Off Rate                         4.68 %       5.30 %     6.13 %
    Net Charge-Offs                        $   366.0    $   383.2   $  417.7
    Reported Balance Sheet Statistics
     (period end)
    Loans                                  $  32,850    $  30,618   $ 27,344
    Delinquency Rate (30+ days)                 4.79 %       5.03 %     6.12 %
    Total Assets                           $  46,284    $  43,446   $ 37,382
    Allowance as a % of reported loans          4.86 %       5.13 %     6.29 %
    Capital (4)                            $ 6,881.6    $ 6,449.8   $5,440.4
    Capital to Assets Ratio                    14.87 %      14.85 %    14.55 %
    Capital plus Allowance to Assets Ratio     18.31 %      18.46 %    19.15 %

    (1) In accordance with the Company's finance charge and fee revenue
        recognition policy, the amounts billed to customers but not recognized
        as revenue were as follows:  Q4 2003 - $454.8 million, Q3 2003 -
        $481.0 million, Q2 2003 - $497.3 million, Q1 2003 - $519.7 million,
        and Q4 2002 - $675.7 million.
    (2) Net charge from the adoption of FASB Interpretation No. 46,
        Consolidation of Variable Interest Entities.
    (3) Risk adjusted margin is total revenue less net charge-offs as a
        percentage of average earning assets.
    (4) Includes preferred interests and mandatory convertible securities.
    (5) In the fourth quarter 2003, the Company adopted the expense
        recognition provisions of Statement of Financial Accounting Standard
        No. 123, ("SFAS 123") Accounting for Stock Based Compensation, under
        the prospective method for all awards granted, modified or settled
        after January 1, 2003.  Certain prior period amounts and statistics
        have been restated in accordance with SFAS 123.

    NOTE:  Additional historical financial and statistical information can be
           found on Capital One's home page (www.capitalone.com).
           Choose "Investors" under "Company Information" on the left side of
           the page to view and download the earnings press release.



                     CAPITAL ONE FINANCIAL CORPORATION (COF)
                FINANCIAL & STATISTICAL SUPPLEMENT REPORTED BASIS

                                             2003        2003         2002
    (in millions, except per share
     data and as noted)                      Q4(3)       Q3(3)         Q4
    Revenue & Expense Statistics
     (Reported)
    Net interest income growth
     (annualized)                              (23)%        13 %         5 %
    Non interest income growth
     (annualized)                               22 %        16 %       (53)%
    Revenue growth (annualized)                  7 %        15 %       (34)%
    Loan revenue margin(1)                   26.78 %     28.51 %     29.95 %
    Loan risk adjusted margin(2)             22.10 %     23.22 %     23.82 %
    Operating expense as a % of revenues     47.55 %     44.79 %     44.37 %
    Operating expense as a % of average
     loans (annualized)                      12.77 %     12.79 %     13.36 %
    Per Account Statistics (Reported)
    Net interest income per account
     (annualized)                         $  56.86    $  61.08    $  61.22
    Non interest income per account
     (annualized)                         $ 123.07    $ 118.28    $ 110.57
    Revenue per account (annualized)      $ 179.92    $ 179.38    $ 171.78
    Growth Statistics (Reported)
    Consumer loan growth                  $  2,232    $  3,769    $   (254)
    % loan growth Q over Q (annualized)         29 %        56 %        (4)%
    % loan growth Y over Y                      20 %        11 %        31 %

    (1) Loan revenue margin is total loan revenue, loan interest income less
        interest expense plus non-interest income, as a percent of average
        loans outstanding for the period.  Loan interest expense is calculated
        using the cost of funds rate applied to the average consumer loan
        balance.
    (2) Loan risk adjusted margin is total loan revenue, loan net interest
        income and non-interest income, less net charge-offs as a percentage
        of average loans outstanding for the period.
    (3) In the fourth quarter 2003, the Company adopted the expense
        recognition provisions of Statement of Financial Accounting Standard
        No. 123, ("SFAS 123") Accounting for Stock Based Compensation, under
        the prospective method for all awards granted, modified or settled
        after January 1, 2003.  Certain prior period amounts and statistics
        have been restated in accordance with SFAS 123.

    NOTE:  Additional historical financial and statistical information can be
           found on Capital One's home page (www.capitalone.com).
           Choose "Investors" under "Company Information" on the left side of
           the page to view and download the earnings press release.



                     CAPITAL ONE FINANCIAL CORPORATION (COF)
                 FINANCIAL & STATISTICAL SUMMARY MANAGED BASIS(1)

                                             2003        2003        2002
    (in millions, except per share
     data s noted)                           Q4(5)       Q3(5)        Q4
    Earnings (Managed Basis)
    Net Interest Income                   $ 1,571.7   $ 1,500.8   $ 1,442.2
    Non-Interest Income                     1,077.5     1,049.2     1,086.9
    Total Revenue(2)                        2,649.2     2,550.0     2,529.1
    Provision for Loan Losses                 938.0       847.0     1,021.5
    Marketing Expenses                        290.1       316.0       210.8
    Operating Expenses                        999.3       925.8       910.2
    Income Before Taxes and Accounting
     Change                                   421.7       461.2       386.6
    Tax Rate                                   37.0 %      37.0 %      38.0 %
    Cumulative Effect of Accounting
     Change, net of tax(3)                      -          15.0         -
    Net Income                               $265.7   $   275.5   $   239.7
    Managed Balance Sheet Statistics
     (period avg.)
    Average Loans                         $  68,679   $  63,691   $  57,669
    Average Earning Assets                $  76,277   $  71,022   $  62,789
    Average Assets                        $  81,733   $  75,831   $  67,037
    Net Interest Margin                        8.24 %      8.45 %      9.19 %
    Revenue Margin                            13.89 %     14.36 %     16.11 %
    Risk Adjusted Margin (4)                   9.10 %      9.48 %     10.41 %
    Return on Average Assets (ROA)             1.30 %      1.45 %      1.43 %
    Net Charge-Off Rate                        5.32 %      5.44 %      6.21 %
    Net Charge-Offs                       $   913.6   $   866.1   $   895.5
    Cost Per Account (in dollars)         $   85.55   $   80.34   $   76.22
    Managed Balance Sheet Statistics
     (period end)
    Loans                                 $  71,245   $  67,260   $  59,747
    Delinquency Rate (30+ days)                4.46 %      4.65 %      5.60 %
    Number of Accounts (000's)               47,038      46,406      47,369
    Total Assets                          $  83,999   $  79,465   $  69,205
    Capital to Assets Ratio                    8.19 %      8.12 %      7.86 %
    Capital plus Allowance to
     Assets Ratio                             10.09 %     10.09 %     10.35 %

    (1) The information in this statistical summary reflects the adjustment to
        add back the effect of securitization transactions qualifying as sales
        under generally accepted accounting principles.  See accompanying
        schedule - "Reconciliation to GAAP Financial Measures."
    (2) In accordance with the Company's finance charge and fee revenue
        recognition policy, the amounts billed to customers but not recognized
        as revenue were as follows:  Q4 2003 - $454.8 million, Q3 2003 -
        $481.0 million, Q2 2003 - $497.3 million, Q1 2003 - $519.7 million,
        and Q4 2002 - $675.7 million.
    (3) Net charge from the adoption of FASB Interpretation No. 46,
        Consolidation of Variable Interest Entities.
    (4) Risk adjusted margin is total revenue less net charge-offs as a
        percentage of average earning assets.
    (5) In the fourth quarter 2003, the Company adopted the expense
        recognition provisions of Statement of Financial Accounting Standard
        No. 123, ("SFAS 123") Accounting for Stock Based Compensation, under
        the prospective method for all awards granted, modified or settled
        after January 1, 2003.  Certain prior period amounts and statistics
        have been restated in accordance with SFAS 123.

    NOTE:  Additional historical financial and statistical information can be
           found on Capital One's home page (www.capitalone.com).
           Choose "Investors" under "Company Information" on the left side of
           the page to view and download the earnings press release.



                     CAPITAL ONE FINANCIAL CORPORATION (COF)
               FINANCIAL & STATISTICAL SUPPLEMENT MANAGED BASIS(1)

                                            2003        2003        2002
    (in millions, except per share
     data and as noted)                     Q4(4)       Q3(4)         Q4
    Revenue & Expense Statistics
     (Managed)
    Net interest income growth
     (annualized)                               19 %        12 %         2 %
    Non interest income growth
     (annualized)                               11 %         1 %       (34)%
    Revenue growth (annualized)                 16 %         7 %       (15)%
    Loan revenue margin(2)                   15.54 %     16.15 %     17.58 %
    Loan risk adjusted margin(3)             10.22 %     10.71 %     11.37 %
    Operating expense as a % of revenues     37.72 %     36.31 %     35.99 %
    Operating expense as a % of average
     loans (annualized)                       5.82 %      5.81 %      6.31 %
    Per Account Statistics (Managed)
    Net interest income per account
     (annualized)                        $  134.56   $  130.23   $  120.77
    Non interest income per account
     (annualized)                        $   92.25      $91.05      $91.02
    Revenue per account (annualized)     $  226.81   $  221.28   $  211.79
    Net income per account (annualized)     $22.75      $23.91      $20.07
    Growth Statistics (Managed)
    Average accounts (000's)                46,722      46,096      47,766
    Net new accounts per quarter (000's)       632         621        (794)
    % account growth Q over Q
     (annualized)                                5 %         5 %        (7)%
    % account growth Y over Y                   (1)%        (4)%         8 %
    Consumer loan growth                 $   3,985   $   6,524   $   2,864
    % loan growth Q over Q (annualized)         24 %        43 %        20 %
    % loan growth Y over Y                      19 %        18 %        32 %
    Balance Sheet Measures
    % off-balance sheet securitizations         53 %        54 %        53 %
    % at introductory rate                      10 %        11 %        10 %
    Segment Statistics
    US Card:
      Loans receivable                   $  46,279   $  44,300   $  40,862
      Net income (loss)                  $   322.7      $276.2      $112.5
      Net charge-off rate                     6.16 %      6.16 %      6.90 %
      Delinquency rate                        4.60 %      4.88 %      6.07 %
    Auto Finance:
      Loans receivable                   $   8,467   $   8,008   $   6,992
      Net income (loss)                  $    34.4       $27.3        $8.8
      Net charge-off rate                     4.30 %      5.10 %      4.83 %
      Delinquency rate                        7.55 %      7.07 %      7.15 %
    Global Financial Services:
      Loans receivable                   $  16,508   $  14,960   $  11,868
      Net income (loss)                       $3.3       $21.0       $58.8
      Net charge-off rate                     3.69 %      3.78 %      3.79 %
      Delinquency rate                        2.70 %      2.87 %      3.08 %

    (1) The information in this statistical summary reflects the adjustment
        to add back the effect of securitization transactions qualifying as
        sales under generally accepted accounting principles.  See
        accompanying schedule - "Reconciliation to GAAP Financial Measures."
    (2) Loan revenue margin is total loan revenue, loan interest income less
        interest expense plus non-interest income, as a percent of average
        loans outstanding for the period.  Loan interest expense is calculated
        using the cost of funds rate applied to the average consumer loan
        balance.
    (3) Loan risk adjusted margin is total loan revenue, loan net interest
        income and non-interest income, less net charge-offs as a percentage
        of average loans outstanding for the period.
    (4) In the fourth quarter 2003, the Company adopted the expense
        recognition provisions of Statement of Financial Accounting Standard
        No. 123, ("SFAS 123") Accounting for Stock Based Compensation, under
        the prospective method for all awards granted, modified or settled
        after January 1, 2003.  Certain prior period amounts and statistics
        have been restated in accordance with SFAS 123.

    NOTE:  Additional historical financial and statistical information can be
           found on Capital One's home page (www.capitalone.com).
           Choose "Investors" under "Company Information" on the left side of
           the page to view and download the earnings press release.



     CAPITAL ONE FINANCIAL CORPORATION
     Reconciliation to GAAP Financial Measures
     For the Three Months Ended December 31, 2003
     (dollars in thousands)(unaudited)

     The Company's consolidated financial statements prepared in accordance
     with generally accepted accounting principles ("GAAP") are referred to as
     its "reported" financial statements. Loans included in securitization
     transactions which qualified as sales under GAAP have been removed from
     the Company's "reported" balance sheet.  However, interest income,
     interchange, fees and recoveries generated from the securitized loan
     portfolio net of charge-offs in excess of the interest paid to investors
     of asset-backed securitizations are recognized as non-interest income on
     the "reported" income statement.

     The Company's "managed" consolidated financial statements add back the
     effects 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.
     The Company's "managed" income statement takes the components of the non-
     interest income generated from the securitized portfolio and distributes
     the revenue to appropriate income statement line items from which it
     originated. For this reason the Company believes the "managed"
     consolidated financial statements and related managed metrics to be
     useful to stakeholders.

                                   Total                            Total
                                  Reported      Adjustments(1)     Managed(2)
    Income Statement Measures
    Net interest income         $    664,101    $    907,581    $  1,571,682
    Non-interest income         $  1,437,491    $   (360,021)   $  1,077,470
    Total revenue               $  2,101,592    $    547,560    $  2,649,152
    Provision for loan losses   $    390,405    $    547,560    $    937,965
    Balance Sheet Measures
    Consumer loans              $ 32,850,269    $ 38,394,527    $ 71,244,796
    Total assets                $ 46,283,706    $ 37,715,556    $ 83,999,262
    Average consumer loans      $ 31,297,123    $ 37,381,754    $ 68,678,877
    Average earning assets      $ 40,792,212    $ 35,484,929    $ 76,277,141
    Average total assets        $ 45,002,097    $ 36,730,742    $ 81,732,839
    Delinquencies               $ 1,573,459     $  1,604,470    $  3,177,929

    (1) Includes adjustments made related to the effects of securitization
        transactions qualifying as sales under GAAP and adjustments made to
        reclassify to "managed" loans outstanding the collectible portion of
        billed finance charge and fee income on the investors' interest in
        securitized loans excluded from loans outstanding on the "reported"
        balance sheet in accordance with Financial Accounting Standards Board
        Staff Position, "Accounting for Accrued Interest Receivable Related to
        Securitized and Sold Receivables under FASB Statement 140, Accounting
        for Transfers and Servicing of Financial Assets and Extinguishments of
        Liabilities", issued April 2003.

    (2) The Managed loan portfolio does not include auto loans which have been
        sold in whole loan sale transactions where the Company has retained
        servicing rights.



     CAPITAL ONE FINANCIAL CORPORATION
     Consolidated Balance Sheets(1)
     (in thousands)(unaudited)

                                       December 31   September 30  December 31
                                          2003          2003          2002

    Assets:
    Cash and due from banks           $   382,212   $   250,514   $   277,509
    Federal funds sold and resale
     agreements                         1,010,319       889,106       373,828
    Interest-bearing deposits at
     other banks                          587,751       163,025       267,441
      Cash and cash equivalents         1,980,282     1,302,645       918,778
    Securities available for sale       5,866,628     5,408,671     4,423,677
    Consumer loans                     32,850,269    30,617,843    27,343,930
      Less: Allowance for
       loan losses                     (1,595,000)   (1,570,000)   (1,720,000)
    Net loans                          31,255,269    29,047,843    25,623,930
    Accounts receivable from
     securitizations                    4,748,962     5,204,170     3,606,549
    Premises and equipment, net           902,600       898,997       770,326
    Interest receivable                   214,295       201,783       217,512
    Other                               1,315,670     1,382,228     1,821,608
      Total assets                    $46,283,706   $43,446,337   $37,382,380

    Liabilities:
    Interest-bearing deposits         $22,416,332   $20,936,517   $17,325,965
    Senior notes                        7,016,020     6,338,772     5,565,615
    Other borrowings                    7,796,613     7,519,770     6,365,075
    Interest payable                      256,015       231,365       236,081
    Other                               2,746,915     2,796,719     3,266,473
      Total liabilities                40,231,895    37,823,143    32,759,209

    Stockholders' Equity:
    Common stock                            2,364         2,305         2,271
    Paid-in capital, net                1,937,302     1,833,520     1,704,470
    Retained earnings and cumulative
     other comprehensive income         4,161,666     3,836,535     2,951,382
      Less: Treasury stock, at cost       (49,521)      (49,166)      (34,952)
      Total stockholders' equity        6,051,811     5,623,194     4,623,171
      Total liabilities and
       stockholders' equity           $46,283,706   $43,446,337   $37,382,380


    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accounting for Accrued Interest Receivable
        Related to Securitized and Sold Receivables under FASB Statement No.
        140, Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities," that was issued in April 2003.



     CAPITAL ONE FINANCIAL CORPORATION
     Consolidated Statements of Income(1)
     (in thousands, except per share data)(unaudited)


                                                 Three Months Ended

                                       December 31  September 30  December 31
                                          2003(2)      2003(2)       2002

    Interest Income:
    Consumer loans, including
     past-due fees                     $   969,571  $   989,318   $ 1,013,181
    Securities available for sale           52,328       49,440        50,283
    Other                                   65,884       64,267        50,200
      Total interest income              1,087,783    1,103,025     1,113,664

    Interest Expense:
    Deposits                               237,624      224,078       215,144
    Senior notes                           123,409      114,989       108,474
    Other borrowings                        62,649       60,037        59,014
      Total interest expense               423,682      399,104       382,632
    Net interest income                    664,101      703,921       731,032
    Provision for loan losses              390,405      364,144       543,758
    Net interest income after
     provision for loan losses             273,696      339,777       187,274

    Non-Interest Income:
    Servicing and securitizations          918,762      820,515       645,740
    Service charges and other
     customer-related fees                 380,925      405,063       475,384
    Interchange                            106,414       95,879        94,095
    Other                                   31,390       41,751       105,103
      Total non-interest income          1,437,491    1,363,208     1,320,322

    Non-Interest Expense:
    Salaries and associate benefits        408,884      388,819       380,600
    Marketing                              290,145      316,026       210,847
    Communications and data processing     116,217      107,385       106,149
    Supplies and equipment                  83,804       88,753        95,963
    Occupancy                               51,645       47,205        46,933
    Other                                  338,777      293,575       280,528
      Total non-interest expense         1,289,472    1,241,763     1,121,020
    Income before income taxes and
     cumulative effect of accounting
     change                                421,715      461,222       386,576
    Income taxes                           156,034      170,653       146,899
    Income before cumulative effect
     of accounting change                  265,681      290,569       239,677
    Cumulative effect of accounting
     change, net of taxes of $8,832                      15,037             -
    Net income                         $   265,681  $   275,532   $   239,677


    Basic earnings per share before
     cumulative effect of
     accounting change                 $      1.16  $      1.29   $      1.08
    Basic earnings per share after
     cumulative effect of
     accounting change                 $      1.16  $      1.23   $      1.08

    Diluted earnings per share before
     cumulative effect of
     accounting change                 $      1.11  $      1.23   $      1.05
    Diluted earnings per share after
     cumulative effect of
     accounting change                 $      1.11  $      1.17   $      1.05

    Dividends paid per share           $      0.03  $      0.03   $      0.03


                                                         Year Ended
                                                 December          December
                                                  2003(2)             2002

    Interest Income:
    Consumer loans, including
     past-due fees                             $ 3,932,295       $ 3,792,461
    Securities available for sale                  192,594           184,407
    Other                                          242,765           203,898
      Total interest income                      4,367,654         4,180,766

    Interest Expense:
    Deposits                                       891,650           811,889
    Senior notes                                   448,646           422,529
    Other borrowings                               242,269           227,236
      Total interest expense                     1,582,565         1,461,654
    Net interest income                          2,785,089         2,719,112
    Provision for loan losses                    1,517,497         2,149,328
    Net interest income after provision
     for loan losses                             1,267,592           569,784

    Non-Interest Income:
    Servicing and securitizations                3,211,662         2,805,501
    Service charges and other
     customer-related fees                       1,630,185         1,937,735
    Interchange                                    376,785           447,747
    Other                                          197,292           275,853
      Total non-interest income                  5,415,924         5,466,836

    Non-Interest Expense:
    Salaries and associate benefits              1,570,415         1,557,887
    Marketing                                    1,118,422         1,070,624
    Communications and data processing             448,110           406,071
    Supplies and equipment                         344,049           357,953
    Occupancy                                      185,179           205,531
    Other                                        1,190,548           987,515
      Total non-interest expense                 4,856,723         4,585,581
    Income before income taxes and
     cumulative effect of accounting change      1,826,793         1,451,039
    Income taxes                                   675,914           551,395
    Income before cumulative effect of
     accounting change                           1,150,879           899,644
    Cumulative effect of accounting
     change, net of
      taxes of $8,832                               15,037                 -
    Net income                                 $ 1,135,842       $   899,644


    Basic earnings per share before
     cumulative effect
      of accounting change                     $      5.12       $      4.09
    Basic earnings per share after
     cumulative effect
      of accounting change                     $      5.05       $      4.09

    Diluted earnings per share before
     cumulative effect
      of accounting change                     $      4.92       $      3.93
    Diluted earnings per share after
     cumulative effect
      of accounting change                     $      4.85       $      3.93

    Dividends paid per share                   $      0.11       $      0.11

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accounting for Accrued Interest Receivable
        Related to Securitized and Sold Receivables under FASB Statement No.
        140, Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities," that was issued April 2003.
    2)  In the fourth quarter 2003, the Company adopted the expense
        recognition provisions of Statement of Financial Accounting Standard
        No. 123, ("SFAS 123") Accounting for Stock Based Compensation, under
        the prospective method for all awards granted, modified or settled
        after January 1, 2003.  Certain prior period amounts have been
        restated in accordance with SFAS 123.



     CAPITAL ONE FINANCIAL CORPORATION
     Statements of Average Balances, Income and Expense, Yields and Rates(1)
     (dollars in thousands)(unaudited)

    Reported                                   Quarter Ended 12/31/03
                                            Average      Income/     Yield/
                                            Balance      Expense      Rate
    Earning assets:
     Consumer loans                       $31,297,123  $   969,571   12.39%
     Securities available for sale          5,816,001       52,328    3.60%
     Other                                  3,679,088       65,884    7.16%
    Total earning assets                  $40,792,212  $ 1,087,783   10.67%

    Interest-bearing liabilities:
     Deposits                             $21,604,968  $   237,624    4.40%
     Senior notes                           6,734,569      123,409    7.33%
     Other borrowings                       7,661,016       62,649    3.27%
    Total interest-bearing liabilities    $36,000,553  $   423,682    4.71%

    Net interest spread                                               5.96%

    Interest income to average
     earning assets                                                  10.67%
    Interest expense to average
     earning assets                                                   4.16%
    Net interest margin                                               6.51%


    Reported                                   Quarter Ended 9/30/03
                                            Average      Income/     Yield/
                                            Balance      Expense      Rate
    Earning assets:
     Consumer loans                       $28,949,372  $   989,318   13.67%
     Securities available for sale          5,702,955       49,440    3.47%
     Other                                  3,480,727       64,267    7.39%
    Total earning assets                  $38,133,054  $ 1,103,025   11.57%

    Interest-bearing liabilities:
     Deposits                             $20,302,524  $   224,078    4.41%
     Senior notes                           6,065,935      114,989    7.58%
     Other borrowings                       6,891,889       60,037    3.48%
    Total interest-bearing liabilities    $33,260,348  $   399,104    4.80%

    Net interest spread                                               6.77%

    Interest income to average
     earning assets                                                  11.57%
    Interest expense to average
     earning assets                                                   4.19%
    Net interest margin                                               7.38%


    Reported                                    Quarter Ended 12/31/02
                                            Average      Income/     Yield/
                                            Balance      Expense      Rate
    Earning assets:
     Consumer loans                       $27,259,764  $ 1,013,181   14.87%
     Securities available for sale          4,571,735       50,283    4.40%
     Other                                  2,243,012       50,200    8.95%
    Total earning assets                  $34,074,511  $ 1,113,664   13.07%

    Interest-bearing liabilities:
     Deposits                             $17,076,822  $   215,144    5.04%
     Senior notes                           5,563,574      108,474    7.80%
     Other borrowings                       6,332,192       59,014    3.73%
    Total interest-bearing liabilities    $28,972,588  $   382,632    5.28%

    Net interest spread                                               7.79%

    Interest income to average
     earning assets                                                  13.07%
    Interest expense to average
     earning assets                                                   4.49%
    Net interest margin                                               8.58%

    (1) Certain prior period amounts have been reclassified to conform to the
        current period presentation for the Financial Accounting Standards
        Board Staff Position, "Accounting for Accrued Interest Receivable
        Related to Securitized and Sold Receivables under FASB Statement No.
        140, Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities," that was issued April 2003.



    CAPITAL ONE FINANCIAL CORPORATION
    Statements of Average Balances, Income and Expense, Yields and Rates
    (dollars in thousands)(unaudited)

    Managed (1)                                Quarter Ended 12/31/03
                                            Average      Income/     Yield/
                                            Balance      Expense      Rate
    Earning assets:
     Consumer loans                       $68,678,877  $ 2,295,802   13.37%
     Securities available for sale          5,816,001       52,328    3.60%
     Other                                  1,782,263       11,326    2.54%
    Total earning assets                  $76,277,141  $ 2,359,456   12.37%

    Interest-bearing liabilities:
     Deposits                             $21,604,968  $   237,624    4.40%
     Senior notes                           6,734,569      123,409    7.33%
     Other borrowings                       7,661,016       62,649    3.27%
     Securitization liability              36,766,829      364,092    3.96%
    Total interest-bearing liabilities    $72,767,382  $   787,774    4.33%

    Net interest spread                                               8.04%

    Interest income to average
     earning assets                                                  12.37%
    Interest expense to average
     earning assets                                                   4.13%
    Net interest margin                                               8.24%


    Managed (1)                                Quarter Ended 9/30/03
                                            Average       Income/    Yield/
                                            Balance       Expense     Rate
    Earning assets:
     Consumer loans                       $63,691,261  $ 2,180,109   13.69%
     Securities available for sale          5,702,955       49,440    3.47%
     Other                                  1,627,898        9,501    2.33%
    Total earning assets                  $71,022,114  $ 2,239,050   12.61%

    Interest-bearing liabilities:
     Deposits                             $20,302,524  $   224,078    4.41%
     Senior notes                           6,065,935      114,989    7.58%
     Other borrowings                       6,891,889       60,037    3.48%
     Securitization liability              34,156,144      339,182    3.97%
    Total interest-bearing liabilities    $67,416,492  $   738,286    4.38%

    Net interest spread                                               8.23%

    Interest income to average
     earning assets                                                  12.61%
    Interest expense to average
     earning assets                                                   4.16%
    Net interest margin                                               8.45%


    Managed (1)                                Quarter Ended 12/31/02
                                            Average       Income/    Yield/
                                            Balance       Expense     Rate
    Earning assets:
     Consumer loans                       $57,669,078  $ 2,085,069   14.46%
     Securities available for sale          4,571,735       50,283    4.40%
     Other                                    548,443        5,470    3.99%
    Total earning assets                  $62,789,256  $ 2,140,822   13.64%

    Interest-bearing liabilities:
     Deposits                             $17,076,822  $   215,144    5.04%
     Senior notes                           5,563,574      108,474    7.80%
     Other borrowings                       6,332,192       59,014    3.73%
     Securitization liability              29,840,224      315,968    4.24%
    Total interest-bearing liabilities    $58,812,812  $   698,600    4.75%

    Net interest spread                                               8.89%

    Interest income to average
     earning assets                                                  13.64%
    Interest expense to average
     earning assets                                                   4.45%
    Net interest margin                                               9.19%


    (1) The information in this table reflects the adjustment to add back the
        effect of securitized loans.
SOURCE Capital One Financial Corporation

CONTACT: Paul Paquin, V.P., Investor Relations, +1-703-720-2456, or
Tatiana Stead, Director, Corporate Media, +1-703-720-2352, both of Capital One
Financial Corporation
Web site: http://www.capitalone.com
(COF)