Capital One Reports First Quarter Earnings Per Share
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36% EPS Increase Over Year Ago Period 2004 Earnings Guidance Unchanged
MCLEAN, Va., Apr 21, 2004 /PRNewswire-FirstCall via COMTEX/ -- Capital One Financial Corporation (NYSE: COF) today announced that its fully diluted earnings per share for the first quarter of 2004 increased by 36 percent over the first quarter of 2003. The company has left unchanged its 2004 earnings guidance of $5.30 to $5.60 per share (fully diluted).
Earnings for the first quarter of 2004 were $450.8 million, or $1.84 per share (fully diluted), compared with earnings of $308.5 million, or $1.35 per share, for the first quarter of 2003 and $265.7 million, or $1.11 per share, in the previous quarter.
"We are pleased to report record earnings in the first quarter, which reflects strong credit performance and increased profitability of our diversified businesses," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "We expect that the pattern of earnings reported this year will be similar to that of last year, starting with the highest earnings in the first quarter and moderating earnings as the year progresses."
During the first quarter of 2004, Capital One grew its managed loan portfolio by $572.1 million to $71.8 billion. The managed charge-off rate declined to 4.83 percent in the first quarter of 2004, from 5.32 percent in the previous quarter and 6.47 percent in the first quarter of 2003. The managed delinquency rate (30+ days) declined to 3.80 percent as of March 31, 2004 from 4.46 percent as of the end of the previous quarter and 4.97 percent as of March 31, 2003.
The company continues to diversify its portfolio and earnings beyond U.S. credit cards and shift its product mix upmarket. As a result, Capital One's managed revenue margin declined to 13.38 percent in the first quarter of 2004 from 13.89 percent in the previous quarter and 15.70 percent in the first quarter of 2003. As the company continues its asset diversification and its shift upmarket, management expects revenue margins to continue to trend somewhat lower in 2004. At the same time, declining credit losses and other expenses are expected to leave the company's return on managed assets relatively stable for the full year of 2004 as compared with 2003. The company expects its charge-off rate for the remaining three quarters of 2004 to be between four and five percent.
"The decline in the managed delinquency rate (30+ days) to 3.80 percent at the end of the first quarter from 4.46 percent the end of the previous quarter is a key driver of our reduced provisioning expense," said Gary L. Perlin, Capital One's Chief Financial Officer. "This decline, along with our expectation of little to no growth in the subprime portion of the company's credit card portfolio, leads us to expect that our allowance for loan losses will continue to move somewhat lower in the near term."
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" below 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 10-K for the fiscal year ended December 31, 2003, for 2004 earnings, charge-off rates, revenue margins, allowance for loan losses, loan growth, and the composition of loan growth 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 growth rate and composition thereof; the company's ability to continue to diversify its assets; 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-K for the fiscal year ended December 31, 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., offers automobile and other motor vehicle financing products. Capital One's subsidiaries collectively had 46.7 million managed accounts and $71.8 billion in managed loans outstanding as of March 31, 2004. 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: First quarter 2004 financial results, SEC Filings, and first 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 5:00 p.m. (EDT) earnings conference call is accessible through the same link.
CAPITAL ONE FINANCIAL CORPORATION (COF) FINANCIAL & STATISTICAL SUMMARY REPORTED BASIS 2004 2003 2003 (in millions, except per share data and as noted) Q1 Q4 Q1 Earnings (Reported Basis) Net Interest Income $732.0 $664.1 $734.8 Non-Interest Income 1,443.1 1,437.5 1,304.6 Total Revenue(1) 2,175.1 2,101.6 2,039.4 Provision for Loan Losses 243.7 390.4 375.9 Marketing Expenses 255.1 290.1 241.7 Operating Expenses 969.7 999.3 932.2 Income Before Taxes and Accounting Change 706.6 421.7 489.6 Tax Rate 36.2 % 37.0 % 37.0 % Cumulative Effect of Accounting Change, net of tax(2) - - - Net Income $450.8 $265.7 $308.5 Common Share Statistics Basic EPS $1.94 $1.16 $1.38 Diluted EPS $1.84 $1.11 $1.35 Dividends Per Share $0.03 $0.03 $0.03 Book Value Per Share (period end) $28.54 $25.75 $21.78 Stock Price Per Share (period end) $75.43 $61.29 $30.01 Total Market Capitalization (period end) $18,084.9 $14,405.7 $6,791.8 Shares Outstanding (period end) 239.8 235.0 226.3 Shares Used to Compute Basic EPS 232.0 228.1 223.0 Shares Used to Compute Diluted EPS 245.4 239.2 228.4 Reported Balance Sheet Statistics (period avg.) Average Loans $32,878 $31,297 $27,316 Average Earning Assets $44,112 $40,792 $34,144 Average Assets $47,699 $45,002 $38,318 Average Equity $6,443 $5,887 $4,823 Return on Average Assets (ROA) 3.78 % 2.36 % 3.22 % Return on Average Equity (ROE) 27.99 % 18.05 % 25.59 % Reported Balance Sheet Statistics (period end) Loans $33,172 $32,850 $27,634 Total Assets $49,146 $46,284 $37,911 Capital(3) $7,675 $6,882 $5,749 Loan growth $321 $2,232 $290 % Loan Growth Q Over Q (annualized) 4 % 29 % 4 % % Loan Growth Y Over Y 20 % 20 % 15 % Capital to Assets Ratio 15.62 % 14.87 % 15.16 % Capital plus Allowance to Assets Ratio 18.66 % 18.31 % 19.48 % Revenue & Expense Statistics (Reported) Net Interest Income Growth (annualized) 41 % (23)% 2 % Non Interest Income Growth (annualized) 2 % 22 % (5)% Revenue Growth (annualized) 14 % 7 % (2)% Net Interest Margin 6.64 % 6.51 % 8.61 % Revenue Margin 19.72 % 20.61 % 23.89 % Risk Adjusted Margin(4) 16.62 % 17.02 % 18.49 % Loan Revenue Margin(5) 26.44 % 26.78 % 29.73 % Loan Risk Adjusted Margin(6) 22.27 % 22.10 % 22.97 % Operating Expense as a % of Revenues 44.58 % 47.55 % 45.71 % Operating Expense as a % of Avg Loans (annualized) 11.80 % 12.77 % 13.65 % Asset Quality Statistics (Reported) Allowance $1,495 $1,595 $1,635 30+ Day Delinquencies $1,266 $1,573 $1,490 Net Charge-Offs $342 $366 $462 Allowance as a % of Reported Loans 4.51 % 4.86 % 5.92 % Delinquency Rate (30+ days) 3.82 % 4.79 % 5.39 % Net Charge-Off Rate 4.17 % 4.68 % 6.76 % (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: Q1 2004 - $258.9 million, Q4 2003 - $454.8 million, Q3 2003 - $481.0 million, Q2 2003 - $497.3 million, and Q1 2003 - $519.7 million. (2) Net charge from the adoption of FASB Interpretation No. 46, Consolidation of Variable Interest Entities. (3) Includes preferred interests and mandatory convertible securities. (4) Risk adjusted margin is total revenue less net charge-offs as a percentage of average earning assets. (5) 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. (6) 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. Note: Additional historical financial and statistical information can be found on Capital One's home page (http://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) 2004 2003 2003 (in millions, except per share data and as noted) Q1 Q4 Q1 Earnings (Managed Basis) Net Interest Income $1,677.1 $1,571.7 $1,508.0 Non-Interest Income 1,014.5 1,077.5 1,027.9 Total Revenue(2) 2,691.6 2,649.2 2,535.9 Provision for Loan Losses 760.1 938.0 872.3 Marketing Expenses 255.1 290.1 241.7 Operating Expenses 969.7 999.3 932.2 Income Before Taxes and Accounting Change 706.6 421.7 489.6 Tax Rate 36.2 % 37.0 % 37.0 % Cumulative Effect of Accounting Change, net of tax(3) - - - Net Income $450.8 $265.7 $308.5 Managed Balance Sheet Statistics (period avg.) Average Loans $71,148 $68,679 $59,250 Average Earning Assets $80,495 $76,277 $64,602 Average Assets $85,324 $81,733 $69,670 Return on Average Assets (ROA) 2.11 % 1.30 % 1.77 % Managed Balance Sheet Statistics (period end) Loans $71,817 $71,245 $59,214 Total Assets $87,197 $83,999 $68,927 Loan Growth $572 $3,985 $(533) % Loan Growth Q over Q (annualized) 3 % 24 % (4)% % Loan Growth Y over Y 21 % 19 % 22 % Capital to Assets Ratio 8.80 % 8.19 % 8.34 % Capital plus Allowance to Assets Ratio 10.52 % 10.09 % 10.71 % Number of Accounts (000's) 46,712 47,038 46,423 % Off-Balance Sheet Securitizations 53 % 53 % 53 % % at Introductory Rate 8 % 10 % 9 % Revenue & Expense Statistics (Managed) Net Interest Income Growth (annualized) 27 % 19 % 18 % Non Interest Income Growth (annualized) (23)% 11 % (22)% Revenue Growth (annualized) 6 % 16 % 1 % Net Interest Margin 8.33 % 8.24 % 9.34 % Revenue Margin 13.38 % 13.89 % 15.70 % Risk Adjusted Margin(4) 9.11 % 9.10 % 9.77 % Loan Revenue Margin(5) 15.26 % 15.54 % 17.20 % Loan Risk Adjusted Margin(6) 10.43 % 10.22 % 10.73 % Operating Expense as a % of Revenues 36.03 % 37.72 % 36.76 % Operating Expense as a % of Avg Loans (annualized) 5.45 % 5.82 % 6.29 % Asset Quality Statistics (Managed) 30+ Day Delinquencies $2,731 $3,178 $2,942 Net Charge-Offs $859 $914 $958 Delinquency Rate (30+ days) 3.80 % 4.46 % 4.97 % Net Charge-Off Rate 4.83 % 5.32 % 6.47 % (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: Q1 2004 - $258.9 million, Q4 2003 - $454.8 million, Q3 2003 - $481.0 million, Q2 2003 - $497.3 million, and Q1 2003 - $519.7 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) 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. (6) 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. Note: Additional historical financial and statistical information can be found on Capital One's home page (http://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) SEGMENT FINANCIAL & STATISTICAL SUMMARY - MANAGED BASIS(1) 2004 2003 2003 (in millions, except per share data and as noted) Q1 Q4 Q1 Segment Statistics US Card: Loans receivable $45,298 $46,279 $38,737 Net income (loss) $386.8 $322.7 $308.1 Net charge-off rate 5.41 % 6.16 % 7.72 % Delinquency Rate (30+ days) 3.99 % 4.60 % 5.55 % Auto Finance: Loans receivable $8,834 $8,467 $7,742 Net income (loss) $30.7 $34.4 $(6.5) Net charge-off rate 4.13 % 4.30 % 4.91 % Delinquency Rate (30+ days) 5.44 % 7.55 % 5.37 % Global Financial Services: Loans receivable $17,643 $16,508 $12,726 Net income (loss) $50.9 $3.3 $14.9 Net charge-off rate 3.60 % 3.69 % 3.95 % Delinquency Rate (30+ days) 2.63 % 2.70 % 2.98 % (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". Note: Additional historical financial and statistical information can be found on Capital One's home page (http://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 March 31, 2004 (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 Adjustments(1) Total Reported Managed(2) Income Statement Measures Net interest income $732,022 $945,056 $1,677,078 Non-interest income $1,443,134 $(428,598) $1,014,536 Total revenue $2,175,156 $516,458 $2,691,614 Provision for loan losses $243,668 $516,458 $760,126 Net charge-offs $342,391 $516,458 $858,849 Balance Sheet Measures Consumer loans $33,171,516 $38,645,386 $71,816,902 Total assets $49,146,425 $38,050,487 $87,196,912 Average consumer loans $32,877,525 $38,270,762 $71,148,287 Average earning assets $44,111,541 $36,383,693 $80,495,234 Average total assets $47,699,012 $37,625,031 $85,324,043 Delinquencies $1,266,425 $1,464,913 $2,731,338 (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 (in thousands)(unaudited) March 31 December 31 March 31 2004 2003 2003 Assets: Cash and due from banks $323,346 $382,212 $328,791 Federal funds sold and resale agreements 1,257,666 1,010,319 864,036 Interest-bearing deposits at other banks 188,237 587,751 247,560 Cash and cash equivalents 1,769,249 1,980,282 1,440,387 Securities available for sale 9,149,440 5,866,628 4,817,322 Consumer loans 33,171,516 32,850,269 27,634,440 Less: Allowance for loan losses (1,495,000) (1,595,000) (1,635,000) Net loans 31,676,516 31,255,269 25,999,440 Accounts receivable from securitizations 4,008,809 4,748,962 3,378,593 Premises and equipment, net 898,802 902,600 769,112 Interest receivable 236,852 214,295 208,998 Other 1,406,757 1,315,670 1,297,115 Total assets $49,146,425 $46,283,706 $37,910,967 Liabilities: Interest-bearing deposits $23,610,851 $22,416,332 $18,489,388 Senior and subordinated notes 7,224,798 7,016,020 5,116,591 Other borrowings 8,254,383 7,796,613 6,576,876 Interest payable 245,172 256,015 194,629 Other 2,968,993 2,746,915 2,604,818 Total liabilities 42,304,197 40,231,895 32,982,302 Stockholders' Equity: Common stock 2,411 2,364 2,275 Paid-in capital, net 2,218,861 1,937,302 1,730,883 Retained earnings and cumulative other comprehensive income 4,670,384 4,161,666 3,244,673 Less: Treasury stock, at cost (49,428) (49,521) (49,166) Total stockholders' equity 6,842,228 6,051,811 4,928,665 Total liabilities and stockholders' equity $49,146,425 $46,283,706 $37,910,967 CAPITAL ONE FINANCIAL CORPORATION Consolidated Statements of Income (in thousands, except per share data)(unaudited) Three months ended March 31 December 31 March 31 2004 2003 2003 Interest Income: Consumer loans, including past-due fees $1,035,017 $969,571 $1,013,282 Securities available for sale 63,716 52,328 42,931 Other 65,998 65,884 50,353 Total interest income 1,164,731 1,087,783 1,106,566 Interest Expense: Deposits 239,512 237,624 209,308 Senior and subordinated notes 130,515 123,409 104,097 Other borrowings 62,682 62,649 58,357 Total interest expense 432,709 423,682 371,762 Net interest income 732,022 664,101 734,804 Provision for loan losses 243,668 390,405 375,851 Net interest income after provision for loan losses 488,354 273,696 358,953 Non-Interest Income: Servicing and securitizations 917,669 918,762 729,689 Service charges and other customer- related fees 354,493 380,925 441,226 Interchange 105,595 106,414 85,351 Other 65,377 31,390 48,337 Total non-interest income 1,443,134 1,437,491 1,304,603 Non-Interest Expense: Salaries and associate benefits 424,392 408,884 398,467 Marketing 255,147 290,145 241,696 Communications and data processing 117,106 116,217 112,052 Supplies and equipment 88,321 83,804 83,812 Occupancy 38,719 51,645 43,574 Other 301,211 338,777 294,331 Total non-interest expense 1,224,896 1,289,472 1,173,932 Income before income taxes 706,592 421,715 489,624 Income taxes 255,786 156,034 181,161 Net income $450,806 $265,681 $308,463 Basic earnings per share $1.94 $1.16 $1.38 Diluted earnings per share $1.84 $1.11 $1.35 Dividends paid per share $0.03 $0.03 $0.03 CAPITAL ONE FINANCIAL CORPORATION Statements of Average Balances, Income and Expense, Yields and Rates (dollars in thousands)(unaudited) Reported Quarter Ended 3/31/04 Average Income Yield/ Balance Expense Rate Earning assets: Consumer loans $32,877,525 $1,035,017 12.59% Securities available for sale 7,098,951 63,716 3.59% Other 4,135,065 65,998 6.38% Total earning assets $44,111,541 $1,164,731 10.56% Interest-bearing liabilities: Deposits $22,992,712 $239,512 4.17% Senior and subordinated notes 7,270,889 130,515 7.18% Other borrowings 7,834,046 62,682 3.20% Total interest-bearing liabilities $38,097,647 $432,709 4.54% Net interest spread 6.02% Interest income to average earning assets 10.56% Interest expense to average earning assets 3.92% Net interest margin 6.64% 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 and subordinated 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 3/31/03 Average Income Yield/ Balance Expense Rate Earning assets: Consumer loans $27,316,194 $1,013,282 14.84% Securities available for sale 4,417,538 42,931 3.89% Other 2,410,750 50,353 8.35% Total earning assets $34,144,482 $1,106,566 12.96% Interest-bearing liabilities: Deposits $17,940,058 $209,308 4.67% Senior and subordinated notes 5,309,690 104,097 7.84% Other borrowings 7,009,915 58,357 3.33% Total interest-bearing liabilities $30,259,663 $371,762 4.91% Net interest spread 8.05% Interest income to average earning assets 12.96% Interest expense to average earning assets 4.35% Net interest margin 8.61% CAPITAL ONE FINANCIAL CORPORATION Statements of Average Balances, Income and Expense, Yields and Rates (dollars in thousands)(unaudited) Managed(1) Quarter Ended 3/31/04 Average Income Yield/ Balance Expense Rate Earning assets: Consumer loans $71,148,287 $2,405,738 13.53% Securities available for sale 7,098,951 63,716 3.59% Other 2,247,996 13,056 2.32% Total earning assets $80,495,234 $2,482,510 12.34% Interest-bearing liabilities: Deposits $22,992,712 $239,512 4.17% Senior and subordinated notes 7,270,889 130,515 7.18% Other borrowings 7,834,046 62,682 3.20% Securitization liability 37,669,211 372,723 3.96% Total interest-bearing liabilities $75,766,858 $805,432 4.25% Net interest spread 8.09% Interest income to average earning assets 12.34% Interest expense to average earning assets 4.01% Net interest margin 8.33% 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 and subordinated 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 3/31/03 Average Income Yield/ Balance Expense Rate Earning assets: Consumer loans $59,249,698 $2,148,419 14.50% Securities available for sale 4,417,538 42,931 3.89% Other 934,382 5,323 2.28% Total earning assets $64,601,618 $2,196,673 13.60% Interest-bearing liabilities: Deposits $17,940,058 $209,308 4.67% Senior and subordinated notes 5,309,690 104,097 7.84% Other borrowings 7,009,915 58,357 3.33% Securitization liability 31,361,051 316,960 4.04% Total interest-bearing liabilities $61,620,714 $688,722 4.47% Net interest spread 9.13% Interest income to average earning assets 13.60% Interest expense to average earning assets 4.26% Net interest margin 9.34% (1) The information in this table reflects the adjustment to add back the effect of securitized loans.
SOURCE Capital One Financial Corporation
Paul Paquin, V.P., Investor Relations, +1-703-720-2456, orTatiana Stead, Director, Corporate Media, +1-703-720-2352, both of Capital One
Financial Corporation
http://www.capitalone.com