Attached files
| file | filename |
|---|---|
| EX-99.3 - EXHIBIT 99.3 - CAPITAL ONE FINANCIAL CORP | ex99_3.htm |
| EX-99.2 - EXHIBIT 99.2 - CAPITAL ONE FINANCIAL CORP | ex99_2.htm |
| 8-K - CAPITAL ONE FINANCIAL CORPORATION 8-K 1-20-2011 - CAPITAL ONE FINANCIAL CORP | form8k.htm |
Exhibit 99.1
Capital One Financial Corporation
Earnings Release Fourth Quarter 2010 — Financial Supplement
Table of Contents
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Page
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Table 1:
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Financial & Statistical Summary ― Reported Basis
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1
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Table 2:
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Financial & Statistical Summary ― Managed Basis
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2
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Table 3:
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Notes to Financial & Statistical Summaries (Tables 1 and 2)
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3
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Table 4:
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Impact from Adoption of New Consolidation Accounting Guidance
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4
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Table 5:
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Consolidated Statements of Income
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5
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Table 6:
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Consolidated Balance Sheets
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6
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Table 7:
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Average Balances, Net Interest Income and Net Interest Margin — Reported and Managed Basis
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7
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Table 8:
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Lending Information and Statistics
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8
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Table 9:
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Credit Card Segment Financial & Statistical Summary
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9
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Table 10:
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Consumer Banking Segment Financial & Statistical Summary
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10
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Table 11:
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Commercial Banking Segment Financial & Statistical Summary
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11
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Table 12:
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Other and Total Segment Financial & Statistical Summary
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12
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Table 13:
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Notes to Loan and Segment Disclosures (Tables 8 — 12)
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13
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CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 1: Financial & Statistical Summary—Reported Basis*
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(dollars in millions, except per share data and as noted) (unaudited)
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2010
Q4
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2010
Q3
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2010
Q2
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2010
Q1
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2009
Q4
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|||||||||||||||
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Earnings
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||||||||||||||||||||
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Net interest income
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$ | 3,023 | $ | 3,109 | $ | 3,097 | $ | 3,228 | $ | 1,954 | ||||||||||
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Non-interest income (1)(2)
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939 | 907 | 807 | 1,061 | (10) | 1,412 | ||||||||||||||
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Total revenue (3)
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$ | 3,962 | $ | 4,016 | $ | 3,904 | $ | 4,289 | $ | 3,366 | ||||||||||
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Provision for loan and lease losses
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839 | 867 | 723 | 1,478 | 844 | |||||||||||||||
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Marketing expenses
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308 | 250 | 219 | 180 | 188 | |||||||||||||||
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Restructuring expenses (4)
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- | - | - | - | 32 | |||||||||||||||
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Operating expenses (5)
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1,783 | 1,746 | 1,781 | 1,667 | 1,728 | |||||||||||||||
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Income from continuing operations before income taxes
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$ | 1,032 | $ | 1,153 | $ | 1,181 | $ | 964 | $ | 574 | ||||||||||
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Income tax provision
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331 | 335 | 369 | 244 | 170 | |||||||||||||||
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Income from continuing operations, net of tax
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701 | 818 | 812 | 720 | 404 | |||||||||||||||
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Loss from discontinued operations, net of tax (2)
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(4 | ) | (15 | ) | (204 | ) | (84 | ) | (28 | ) | ||||||||||
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Net income
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$ | 697 | $ | 803 | $ | 608 | $ | 636 | $ | 376 | ||||||||||
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Net income available to common shareholders
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$ | 697 | $ | 803 | $ | 608 | $ | 636 | $ | 376 | ||||||||||
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Common Share Statistics
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Basic EPS: (A)
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Income from continuing operations
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$ | 1.55 | $ | 1.81 | $ | 1.79 | $ | 1.59 | $ | 0.90 | ||||||||||
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Loss from discontinued operations
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(0.01 | ) | (0.03 | ) | (0.45 | ) | (0.18 | ) | (0.07 | ) | ||||||||||
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Net income per basic common share
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$ | 1.54 | $ | 1.78 | $ | 1.34 | $ | 1.41 | $ | 0.83 | ||||||||||
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Diluted EPS: (A)
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Income from continuing operations
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$ | 1.53 | $ | 1.79 | $ | 1.78 | $ | 1.58 | $ | 0.89 | ||||||||||
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Loss from discontinued operations
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(0.01 | ) | (0.03 | ) | (0.45 | ) | (0.18 | ) | (0.06 | ) | ||||||||||
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Net income per diluted common share
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$ | 1.52 | $ | 1.76 | $ | 1.33 | $ | 1.40 | $ | 0.83 | ||||||||||
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Weighted average common shares outstanding:
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Basic EPS
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452.7 | 452.5 | 452.1 | 451.0 | 450.0 | |||||||||||||||
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Diluted EPS
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457.2 | 456.6 | 456.4 | 455.4 | 454.9 | |||||||||||||||
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Common shares outstanding (period end)
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452.8 | 452.6 | 452.3 | 451.9 | 450.4 | |||||||||||||||
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Dividends per common share
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$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||||||
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Tangible book value per common share (period end) (B)
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$ | 27.73 | $ | 26.60 | $ | 24.89 | $ | 22.86 | $ | 27.72 | ||||||||||
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Stock price per common share (period end)
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$ | 42.56 | $ | 39.55 | $ | 40.30 | $ | 41.41 | $ | 38.34 | ||||||||||
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Total market capitalization (period end)
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$ | 19,271 | $ | 17,900 | $ | 18,228 | $ | 18,713 | $ | 17,268 | ||||||||||
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Reported Balance Sheet Statistics (Quarterly Averages)
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Average loans held for investment
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$ | 125,441 | $ | 126,307 | $ | 128,203 | $ | 134,206 | $ | 94,732 | ||||||||||
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Average interest-earning assets
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$ | 173,991 | $ | 172,473 | $ | 174,650 | $ | 181,881 | $ | 143,663 | ||||||||||
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Total average assets
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$ | 197,597 | $ | 196,598 | $ | 199,329 | $ | 207,207 | $ | 169,856 | ||||||||||
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Average interest-bearing deposits
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$ | 106,597 | $ | 104,186 | $ | 104,163 | $ | 104,018 | $ | 101,144 | ||||||||||
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Total average deposits
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$ | 121,736 | $ | 118,255 | $ | 118,484 | $ | 117,530 | $ | 114,598 | ||||||||||
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Average equity (D)
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$ | 26,255 | $ | 25,307 | $ | 24,526 | $ | 23,681 | $ | 26,518 | ||||||||||
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Return on average assets (ROA)
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1.42 | % | 1.66 | % | 1.63 | % | 1.39 | % | 0.95 | % | ||||||||||
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Return on average equity (ROE) (D)
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10.68 | % | 12.93 | % | 13.24 | % | 12.16 | % | 6.09 | % | ||||||||||
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Return on average tangible common equity (C)
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22.90 | % | 28.95 | % | 30.97 | % | 29.98 | % | 13.02 | % | ||||||||||
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Reported Balance Sheet Statistics (Period End)
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Loans held for investment
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$ | 125,947 | $ | 126,334 | $ | 127,140 | $ | 130,115 | $ | 90,619 | ||||||||||
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Total assets (D)
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$ | 197,503 | $ | 196,933 | $ | 197,485 | $ | 200,691 | $ | 169,646 | ||||||||||
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Interest-bearing deposits
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$ | 107,162 | $ | 104,741 | $ | 103,172 | $ | 104,013 | $ | 102,370 | ||||||||||
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Total deposits
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$ | 122,210 | $ | 119,212 | $ | 117,331 | $ | 117,787 | $ | 115,809 | ||||||||||
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Tangible assets(D) (E)
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$ | 183,158 | $ | 182,904 | $ | 183,474 | $ | 186,647 | $ | 155,516 | ||||||||||
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Tangible common equity (TCE) (D) (F)
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$ | 12,558 | $ | 12,037 | $ | 11,259 | $ | 10,330 | $ | 12,483 | ||||||||||
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Tier 1 risk-based capital ratio (6)
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11.64 | % | 11.13 | % | 9.93 | % | 9.57 | % | 13.75 | % | ||||||||||
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Tangible common equity (TCE) ratio (D) (G)
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6.86 | % | 6.58 | % | 6.14 | % | 5.53 | % | 8.03 | % | ||||||||||
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Tier 1 common equity ratio (7)
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8.78 | % | 8.21 | % | 7.00 | % | 6.54 | % | 10.62 | % | ||||||||||
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Performance Statistics (Reported)
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Net interest income growth (quarter over quarter) (8)
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(3 | )% | 0 | % | (4 | )% | 65 | % | (3 | )% (5) | ||||||||||
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Non-interest income growth (quarter over quarter) (8)
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4 | % | 12 | % | (24 | )% | (25 | )% | (9 | )% (5) | ||||||||||
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Revenue growth (quarter over quarter) (8)
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(1 | )% | 3 | % | (9 | )% | 27 | % | (5 | )% (5) | ||||||||||
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Net interest margin
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6.95 | % | 7.21 | % | 7.09 | % | 7.10 | % | 5.44 | % | ||||||||||
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Revenue margin
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9.11 | % | 9.31 | % | 8.94 | % | 9.43 | % | 9.37 | % | ||||||||||
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Risk-adjusted margin (H)
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5.90 | % | 5.78 | 5.01 | % | 4.99 | % | 6.07 | % | |||||||||||
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Non-interest expense as a % of average loans held for investment (annualized)
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6.67 | % | 6.32 | % | 6.24 | % | 5.50 | % | 8.23 | % | ||||||||||
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Efficiency ratio (I)
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52.78 | % | 49.70 | % | 51.23 | % | 43.06 | % | 56.92 | % | ||||||||||
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Effective income tax rate
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32.1 | % | 29.1 | % | 31.2 | % | 25.3 | % | 29.6 | % | ||||||||||
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Full-time equivalent employees (in thousands)
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25.7 | 25.7 | 25.7 | 25.9 | 25.9 | |||||||||||||||
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Credit Quality Statistics (Reported) (9)
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Allowance for loan and lease losses
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$ | 5,628 | $ | 6,175 | $ | 6,799 | $ | 7,752 | $ | 4,127 | ||||||||||
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Allowance as a % of reported loans held for investment
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4.47 | % | 4.89 | % | 5.35 | % | 5.96 | % | 4.55 | % | ||||||||||
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Net charge-offs
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$ | 1,394 | $ | 1,522 | $ | 1,717 | $ | 2,018 | $ | 1,185 | ||||||||||
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Net charge-off rate
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4.45 | % | 4.82 | % | 5.36 | % | 6.02 | % | 5.00 | % | ||||||||||
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30+ day performing delinquency rate
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3.60 | % | 3.71 | % | 3.81 | % | 4.22 | % | 4.13 | % | ||||||||||
___________________
* Effective January 1, 2010, Capital One prospectively 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 $2.9 billion in stockholders' equity as of January 1, 2010. As the new accounting standards were adopted prospectively, prior period results have not been adjusted. See "Table 4: Impact from Adoption of New Consolidation Accounting Guidance January 1, 2010." While the adoption of these new accounting standards had a significant impact on the comparability of the Company's GAAP financial results prior to and subsequent to adoption, the Company's reported GAAP results after adoption are now comparable to the prior "managed" results.
Page 1
Table 2: Financial & Statistical Summary—Managed Basis*
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(dollars in millions, except per share data and as noted) (unaudited)
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2010
Q4
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2010
Q3
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2010
Q2
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2010
Q1
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2009
Q4
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Earnings
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Net interest income
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$ | 3,023 | $ | 3,109 | $ | 3,097 | $ | 3,228 | $ | 3,170 | ||||||||||
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Non-interest income (1)(2)
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939 | 907 | 807 | 1,061 | (10) | 1,199 | ||||||||||||||
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Total revenue (3)
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$ | 3,962 | $ | 4,016 | $ | 3,904 | $ | 4,289 | $ | 4,369 | ||||||||||
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Provision for loan and lease losses
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839 | 867 | 723 | 1,478 | 1,847 | |||||||||||||||
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Marketing expenses
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308 | 250 | 219 | 180 | 188 | |||||||||||||||
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Restructuring expenses (4)
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- | - | - | - | 32 | |||||||||||||||
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Operating expenses (5)
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1,783 | 1,746 | 1,781 | 1,667 | 1,728 | |||||||||||||||
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Income from continuing operations before income taxes
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$ | 1,032 | $ | 1,153 | $ | 1,181 | $ | 964 | $ | 574 | ||||||||||
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Income tax provision
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331 | 335 | 369 | 244 | 170 | |||||||||||||||
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Income from continuing operations, net of tax
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$ | 701 | $ | 818 | $ | 812 | $ | 720 | $ | 404 | ||||||||||
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Loss from discontinued operations, net of tax (2)
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$ | (4 | ) | $ | (15 | ) | $ | (204 | ) | $ | (84 | ) | $ | (28 | ) | |||||
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Net income
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$ | 697 | $ | 803 | $ | 608 | $ | 636 | $ | 376 | ||||||||||
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Net income available to common shareholders
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$ | 697 | $ | 803 | $ | 608 | $ | 636 | $ | 376 | ||||||||||
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Common Share Statistics
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Basic EPS: (A)
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Income from continuing operations
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$ | 1.55 | $ | 1.81 | $ | 1.79 | $ | 1.59 | $ | 0.90 | ||||||||||
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Loss from discontinued operations
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(0.01 | ) | (0.03 | ) | (0.45 | ) | (0.18 | ) | (0.07 | ) | ||||||||||
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Net income per basic common share
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$ | 1.54 | $ | 1.78 | $ | 1.34 | $ | 1.41 | $ | 0.83 | ||||||||||
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Diluted EPS:(A)
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Income from continuing operations
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$ | 1.53 | $ | 1.79 | $ | 1.78 | $ | 1.58 | $ | 0.89 | ||||||||||
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Loss from discontinued operations
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(0.01 | ) | (0.03 | ) | (0.45 | ) | (0.18 | ) | (0.06 | ) | ||||||||||
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Net income per diluted common share
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$ | 1.52 | $ | 1.76 | $ | 1.33 | $ | 1.40 | $ | 0.83 | ||||||||||
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Weighted average common shares outstanding:
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Basic EPS
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452.7 | 452.5 | 452.1 | 451.0 | 450.0 | |||||||||||||||
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Diluted EPS
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457.2 | 456.6 | 456.4 | 455.4 | 454.9 | |||||||||||||||
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Common shares outstanding (period end)
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452.8 | 452.6 | 452.3 | 451.9 | 450.4 | |||||||||||||||
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Dividends per common share
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$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||||||
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Tangible book value per common share (period end) (B)
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$ | 27.73 | $ | 26.60 | $ | 24.89 | $ | 22.86 | $ | 27.72 | ||||||||||
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Stock price per common share (period end)
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$ | 42.56 | $ | 39.55 | $ | 40.30 | $ | 41.41 | $ | 38.34 | ||||||||||
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Total market capitalization (period end)
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$ | 19,271 | $ | 17,900 | $ | 18,228 | $ | 18,713 | $ | 17,268 | ||||||||||
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Managed Balance Sheet Statistics (Quarterly Averages)
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Average loans held for investment
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$ | 125,441 | $ | 126,391 | $ | 128,335 | $ | 134,379 | $ | 138,184 | ||||||||||
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Average interest-earning assets
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$ | 173,991 | $ | 172,557 | $ | 174,782 | $ | 182,054 | $ | 183,899 | ||||||||||
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Total average assets
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$ | 197,597 | $ | 196,598 | $ | 199,329 | $ | 207,207 | $ | 210,425 | ||||||||||
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Average interest-bearing deposits
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$ | 106,597 | $ | 104,186 | $ | 104,163 | $ | 104,018 | $ | 101,144 | ||||||||||
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Total average deposits
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$ | 121,736 | $ | 118,255 | $ | 118,484 | $ | 117,530 | $ | 114,598 | ||||||||||
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Average equity (D)
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$ | 26,255 | $ | 25,307 | $ | 24,526 | $ | 23,681 | $ | 26,518 | ||||||||||
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Return on average assets (ROA)
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1.42 | % | 1.66 | % | 1.63 | % | 1.39 | % | 0.77 | % | ||||||||||
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Return on average equity (ROE) (D)
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10.68 | % | 12.93 | % | 13.24 | % | 12.16 | % | 6.09 | % | ||||||||||
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Return on average tangible common equity (C)
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22.90 | % | 28.95 | % | 30.97 | % | 29.98 | % | 13.02 | % | ||||||||||
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Managed Balance Sheet Statistics (Period End)
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Loans held for investment
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$ | 125,947 | $ | 126,334 | $ | 127,255 | $ | 130,265 | $ | 136,803 | ||||||||||
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Total assets (D)
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$ | 197,503 | $ | 196,933 | $ | 197,485 | $ | 200,691 | $ | 212,389 | ||||||||||
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Interest-bearing deposits
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$ | 107,162 | $ | 104,741 | $ | 103,172 | $ | 104,013 | $ | 102,370 | ||||||||||
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Total deposits
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$ | 122,210 | $ | 119,212 | $ | 117,331 | $ | 117,787 | $ | 115,809 | ||||||||||
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Tangible assets(D) (E)
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$ | 183,158 | $ | 182,904 | $ | 183,474 | $ | 186,647 | $ | 198,283 | ||||||||||
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Tangible common equity (TCE) (D) (F)
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$ | 12,558 | $ | 12,037 | $ | 11,259 | $ | 10,330 | $ | 12,483 | ||||||||||
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Tangible common equity (TCE) ratio (D) (G)
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6.86 | % | 6.58 | % | 6.14 | % | 5.53 | % | 6.30 | % | ||||||||||
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Performance Statistics (Managed)
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Net interest income growth (quarter over quarter) (8)
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(3 | )% | 0 | % | (4 | )% | 2 | % | (1 | )% (5) | ||||||||||
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Non-interest income growth (quarter over quarter) (8)
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4 | % | 12 | % | (24 | )% | (12 | )% | (13 | )% (5) | ||||||||||
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Revenue growth (quarter over quarter) (8)
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(1 | )% | 3 | % | (9 | )% | (2 | )% | (5 | )% (5) | ||||||||||
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Net interest margin
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6.95 | % | 7.21 | % | 7.09 | % | 7.09 | % | 6.90 | % | ||||||||||
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Revenue margin
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9.11 | % | 9.31 | % | 8.93 | % | 9.42 | % | 9.50 | % | ||||||||||
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Risk-adjusted margin (H)
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5.90 | % | 5.78 | % | 5.01 | % | 4.99 | % | 4.74 | % | ||||||||||
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Non-interest expense as a % of average loans held for investment (annualized)
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6.67 | % | 6.32 | % | 6.23 | % | 5.50 | % | 5.64 | % | ||||||||||
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Efficiency ratio (I)
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52.78 | % | 49.70 | % | 51.23 | % | 43.06 | % | 43.85 | % | ||||||||||
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Effective income tax rate
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32.1 | % | 29.1 | % | 31.2 | % | 25.3 | % | 29.6 | % | ||||||||||
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Full-time equivalent employees (in thousands)
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25.7 | 25.7 | 25.7 | 25.9 | 25.9 | |||||||||||||||
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Credit Quality Statistics (Managed) (9)
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||||||||||||||||||||
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Net charge-offs
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$ | 1,394 | $ | 1,522 | $ | 1,717 | $ | 2,018 | $ | 2,188 | ||||||||||
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Net charge-off rate
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4.45 | % | 4.82 | % | 5.35 | % | 6.01 | % | 6.33 | % | ||||||||||
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30+ day performing delinquency rate
|
3.60 | % | 3.71 | % | 3.81 | % | 4.22 | % | 4.73 | % | ||||||||||
___________________
*Prior to the January 1, 2010 adoption of the new consolidation accounting standards, management evaluated the Company and each of its lines of business results on a "managed" basis, which is a non-GAAP measure. With the adoption of the new consolidation accounting standards, the Company's reported results are comparable to the "managed" basis, which reflect the consolidation of the majority of the Company's credit card securitization trusts. The accompanying "Exhibit 99.3—Reconciliation of Non-GAAP Measures and Regulatory Capital Measures" presents a reconciliation of the Company's non-GAAP "managed" results to its reported GAAP results for periods prior to January 1, 2010. See the accompanying schedule "Table 4: Impact from Adoption of New Consolidation Accounting Guidance January 1, 2010" for additional information on the impact from the new accounting standards.
Page 2
Table 3: Notes to Financial & Statistical Summaries (Tables 1 and 2)
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(1)
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Includes the impact from the change in fair value of retained interests, including the interest-only strips, which totaled $8 million in Q4 2010, $6 million in Q3 2010, $17 million in Q2 2010, $(36) million in Q1 2010 and $55 million in Q4 2009.
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(2)
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The Company's mortgage representation and warranty reserve decreased to $816 million as of December 31, 2010, from $836 million as of September 30, 2010. The decrease in the reserve reflected a negative provision for repurchase losses of $(7) million in Q4 2010, compared with a provision for repurchase losses of $16 million, $404 million, $224 million and $47 million in Q3 2010, Q2 2010, Q1 2010 and Q4 2009, respectively. The majority of the provision for repurchase losses is recorded in discontinued operations, with the remaining portion recorded in non-interest income.
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(3)
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In accordance with the Company's finance charge and fee revenue recognition policy, amounts billed but not included in revenue totaled: $144 million in Q4 2010, $190 million in Q3 2010, $261 million in Q2 2010, $354 million in Q1 2010 and $490 million in Q4 2009.
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(4)
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In 2009, the Company completed its restructuring initiative that was initiated in 2007.
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(5)
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Includes core deposit intangible amortization expense of $51 million in Q4 2010, $50 million in Q3 2010, $50 million in Q2 2010, $52 million in Q1 2010 and $54 million in Q4 2009 and integration costs of $15 million in Q4 2010, $27 million in Q3 2010, $22 million in Q2 2010, $17 million in Q1 2010 and $22 million in Q4 2009.
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(6)
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Tier 1 risk-based capital ratio is a regulatory measure calculated based on Tier 1 capital divided by risk-weighted assets. See "Exhibit 99.3—Reconciliation of Non-GAAP Measures and Regulatory Capital Measures" for the calculation components.
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(7)
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Tier 1 common equity ratio is a non-GAAP measure calculated based on Tier 1 common equity divided by risk-weighted assets. See "Exhibit 99.3—Reconciliation of Non-GAAP Measures and Regulatory Capital Measures" for the calculation components.
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(8)
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Prior period amounts have been reclassified to conform with the current period presentation and adjusted to reflect purchase accounting refinements related to the acquisition of Chevy Chase Bank, FSB ("CCB").
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(9)
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The credit quality statistics excluding the impact of loans acquired from Chevy Chase Bank (CCB) are as follows.
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2010
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2010
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2010
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2010
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2009
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||||||||||||||||
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(dollars in millions) (unaudited)
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Q4 | Q3 | Q2 | Q1 | Q4 | |||||||||||||||
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CCB period end acquired loan portfolio
|
$ | 5,532 | $ | 5,891 | $ | 6,381 | $ | 6,799 | $ | 7,251 | ||||||||||
|
CCB average acquired loan portfolio
|
$ | 5,633 | $ | 6,014 | $ | 6,541 | $ | 7,037 | $ | 7,512 | ||||||||||
|
Allowance as a % of loans held for investment, excluding CCB
|
4.67 | % | 5.12 | % | 5.63 | % | 6.29 | % | 4.95 | % | ||||||||||
|
Net charge-off rate (Reported), excluding CCB
|
4.65 | % | 5.06 | % | 5.64 | % | 6.35 | % | 5.44 | % | ||||||||||
|
Net charge-off rate (Managed), excluding CCB
|
4.65 | % | 5.06 | % | 5.64 | % | 6.35 | % | 6.70 | % | ||||||||||
|
30+ day performing delinquency rate (Reported), excluding CCB
|
3.76 | % | 3.89 | % | 4.01 | % | 4.46 | % | 4.49 | % | ||||||||||
|
30+ day performing delinquency rate (Managed), excluding CCB
|
3.76 | % | 3.89 | % | 4.01 | % | 4.46 | % | 4.99 | % | ||||||||||
|
(10)
|
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 resulted in $128 million of income which is included in non-interest income.
|
Statistical/Metric Calculations
|
|
(A)
|
Calculated based on net income (loss) available to common shareholders.
|
|
|
(B)
|
Calculated based on tangible common equity divided by common shares outstanding, which is a non-GAAP measure. See "Exhibit 99.3—Reconciliation of Non-GAAP Measures and Regulatory Capital Measures" for the calculation components.
|
|
(C)
|
Calculated based on income from continuing operations divided by average tangible common equity, which is a non-GAAP measure. See "Exhibit 99.3—Reconciliation of Non-GAAP Measures and Regulatory Capital Measures" for the calculation components.
|
|
(D)
|
Calculated based on continuing operations, except for average equity and return on average equity (ROE), which are based on average stockholders' equity.
|
|
|
(E)
|
Non-GAAP measure consisting of reported or managed assets less intangible assets. See "Exhibit 99.3—Reconciliation of Non-GAAP Measures and Regulatory Capital Measures" for the calculation components.
|
|
|
(F)
|
See "Exhibit 99.3—Reconciliation of Non-GAAP Measures and Regulatory Capital Measures" for the calculation components.
|
|
(G)
|
Tangible common equity ratio ("TCE ratio") is a non-GAAP measure calculated based on tangible common equity divided by tangible assets. See "Exhibit 99.3—Reconciliation of Non-GAAP Measures and Regulatory Capital Measures" for the calculation components.
|
|
(H)
|
Calculated based on total revenue less net charge-offs divided by average earning assets.
|
|
|
(I)
|
Calculated based on non-interest expense less restructuring expense divided by total revenue.
|
Page 3
Table 4: Impact from Adoption of New Consolidation Accounting Guidance January 1, 2010
Consolidation Impact
|
(dollars in millions)(unaudited)
|
January 1, 2010
|
Consolidation Impact
|
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 | ) (2) | (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:
|
||||||||||||
|
Securitized debt
|
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 | ) (2) | 26,589 | ||||||||
|
Total liabilities and stockholders' equity
|
$ | 211,511 | $ | 41,865 | $ | 169,646 | ||||||
Allocation of the Allowance by Segment
|
(dollars in millions)(unaudited)
|
January 1, 2010
|
Consolidation Impact
|
December 31, 2009
|
|||||||||
|
Credit card:
|
||||||||||||
|
Domestic credit card
|
$ | 5,590 | $ | 3,663 | (2) | $ | 1,927 | |||||
|
International credit card
|
727 | 528 | 199 | |||||||||
|
Total credit card
|
6,317 | 4,191 | 2,126 | |||||||||
|
Consumer banking:
|
||||||||||||
|
Automobile
|
665 | - | 665 | |||||||||
|
Home loan (includes all new CCB originations)
|
248 | 73 | (3) | 175 | ||||||||
|
Other retail
|
236 | - | 236 | |||||||||
|
Total consumer banking
|
1,149 | 73 | 1,076 | |||||||||
|
Commercial banking:
|
||||||||||||
|
Commercial and multi-family real estate
|
471 | - | 471 | |||||||||
|
Middle market
|
131 | - | 131 | |||||||||
|
Specialty lending
|
90 | - | 90 | |||||||||
|
Total commercial lending
|
692 | - | 692 | |||||||||
|
Small-ticket commercial real estate
|
93 | - | 93 | |||||||||
|
Total commercial banking
|
785 | - | 785 | |||||||||
|
Other
|
140 | - | 140 | |||||||||
|
Total company
|
$ | 8,391 | $ | 4,264 | $ | 4,127 | ||||||
___________________
|
(1)
|
Other assets includes a deferred tax asset of $3.9 billion as of January 1, 2010. Of this amount, $1.6 billion relates to the impact from the January 1, 2010 adoption of the new consolidation accounting standards.
|
|
(2)
|
In the second quarter of 2010, an adjustment was made to reduce retained earnings and the allowance for loan and lease losses by $34 million. These adjustments, which related to the impairment of consolidated loans accounted for as troubled debt restructurings, are not reflected in the above table.
|
|
(3)
|
$73 million of the reduction in the allowance in the first quarter of 2010 was related to the deconsolidation of certain mortgage trusts. The offset to the reduction in the allowance was recorded in non-interest income.
|
Page 4
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 5: Consolidated Statements of Income
|
Three Months Ended
|
||||||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
Year Ended December 31,
|
|||||||||||||||||
|
(dollars in millions, except per share data) (unaudited)
|
2010
|
2010
|
2009 (1)
|
2010
|
2009 (1)
|
|||||||||||||||
|
Interest income:
|
||||||||||||||||||||
|
Loans held for investment, including past-due fees
|
$ | 3,352 | $ | 3,447 | $ | 2,108 | $ | 13,934 | $ | 8,757 | ||||||||||
|
Investment securities
|
305 | 347 | 404 | 1,342 | 1,610 | |||||||||||||||
|
Other
|
17 | 21 | 83 | 77 | 297 | |||||||||||||||
|
Total interest income
|
3,674 | 3,815 | 2,595 | 15,353 | 10,664 | |||||||||||||||
|
Interest expense:
|
||||||||||||||||||||
|
Deposits
|
340 | 358 | 427 | 1,465 | 2,093 | |||||||||||||||
|
Securitized debt
|
165 | 191 | 54 | 809 | 282 | |||||||||||||||
|
Senior and subordinated notes
|
65 | 72 | 71 | 276 | 260 | |||||||||||||||
|
Other borrowings
|
81 | 85 | 89 | 346 | 332 | |||||||||||||||
|
Total interest expense
|
651 | 706 | 641 | 2,896 | 2,967 | |||||||||||||||
|
Net interest income
|
3,023 | 3,109 | 1,954 | 12,457 | 7,697 | |||||||||||||||
|
Provision for loan and lease losses
|
839 | 867 | 844 | 3,907 | 4,230 | |||||||||||||||
|
Net interest income after provision for loan and lease losses
|
2,184 | 2,242 | 1,110 | 8,550 | 3,467 | |||||||||||||||
|
Non-interest income:
|
||||||||||||||||||||
|
Servicing and securitizations
|
12 | 13 | 743 | 7 | 2,280 | |||||||||||||||
|
Service charges and other customer-related fees
|
496 | 496 | 503 | 2,073 | 1,997 | |||||||||||||||
|
Interchange
|
350 | 346 | 112 | 1,340 | 502 | |||||||||||||||
|
Net other-than-temporary impairment losses recognized in earnings
|
(3 | ) | (5 | ) | (10 | ) | (62 | ) | (32 | ) | ||||||||||
|
Other
|
84 | 57 | 64 | 356 | 539 | |||||||||||||||
|
Total non-interest income
|
939 | 907 | 1,412 | 3,714 | 5,286 | |||||||||||||||
|
Non-interest expense:
|
||||||||||||||||||||
|
Salaries and associate benefits
|
657 | 641 | 641 | 2,594 | 2,478 | |||||||||||||||
|
Marketing
|
308 | 250 | 188 | 958 | 588 | |||||||||||||||
|
Communications and data processing
|
182 | 178 | 171 | 693 | 740 | |||||||||||||||
|
Supplies and equipment
|
139 | 129 | 130 | 520 | 500 | |||||||||||||||
|
Occupancy
|
114 | 135 | 122 | 486 | 451 | |||||||||||||||
|
Restructuring expense (2)
|
- | - | 32 | - | 119 | |||||||||||||||
|
Other
|
691 | 663 | 664 | 2,683 | 2,541 | |||||||||||||||
|
Total non-interest expense
|
2,091 | 1,996 | 1,948 | 7,934 | 7,417 | |||||||||||||||
|
Income from continuing operations before income taxes
|
1,032 | 1,153 | 574 | 4,330 | 1,336 | |||||||||||||||
|
Income tax provision
|
331 | 335 | 170 | 1,280 | 349 | |||||||||||||||
|
Income from continuing operations, net of tax
|
701 | 818 | 404 | 3,050 | 987 | |||||||||||||||
|
Loss from discontinued operations, net of tax
|
(4 | ) | (15 | ) | (28 | ) | (307 | ) | (103 | ) | ||||||||||
|
Net income
|
$ | 697 | $ | 803 | $ | 376 | $ | 2,743 | $ | 884 | ||||||||||
|
Preferred stock dividends
|
- | - | - | - | (564 | ) | ||||||||||||||
|
Net income available to common shareholders
|
$ | 697 | $ | 803 | $ | 376 | $ | 2,743 | $ | 320 | ||||||||||
|
Basic earnings per common share:
|
||||||||||||||||||||
|
Income from continuing operations
|
$ | 1.55 | $ | 1.81 | $ | 0.90 | $ | 6.74 | $ | 0.99 | ||||||||||
|
Loss from discontinued operations
|
(0.01 | ) | (0.03 | ) | (0.07 | ) | (0.67 | ) | (0.24 | ) | ||||||||||
|
Net income per common share
|
$ | 1.54 | $ | 1.78 | $ | 0.83 | $ | 6.07 | $ | 0.75 | ||||||||||
|
Diluted earnings per common share:
|
||||||||||||||||||||
|
Income from continuing operations
|
$ | 1.53 | $ | 1.79 | $ | 0.89 | $ | 6.68 | $ | 0.98 | ||||||||||
|
Loss from discontinued operations
|
(0.01 | ) | (0.03 | ) | (0.06 | ) | (0.67 | ) | (0.24 | ) | ||||||||||
|
Net income per common share
|
$ | 1.52 | $ | 1.76 | $ | 0.83 | $ | 6.01 | $ | 0.74 | ||||||||||
|
Weighted average common shares outstanding (in millions):
|
||||||||||||||||||||
|
Basic EPS
|
452.7 | 452.5 | 450.0 | 452.1 | 428.1 | |||||||||||||||
|
Diluted EPS
|
457.2 | 456.6 | 454.9 | 456.4 | 431.4 | |||||||||||||||
|
Dividends per common share
|
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.20 | $ | 0.53 | ||||||||||
___________________
|
(1)
|
Certain prior period amounts have been reclassified to conform to the current period presentation.
|
|
(2)
|
In 2009, the Company completed its restructuring initiative that was initiated in 2007.
|
Page 5
Table 6: Consolidated Balance Sheets
|
December 31,
|
September 30,
|
December 31,
|
||||||||||
|
(dollars in millions)(unaudited)
|
2010
|
2010
|
2009 (1)
|
|||||||||
|
Assets:
|
||||||||||||
|
Cash and due from banks
|
$ | 2,067 | $ | 2,015 | $ | 3,100 | ||||||
|
Interest-bearing deposits with banks
|
2,776 | 2,391 | 5,043 | |||||||||
|
Federal funds sold and repurchase agreements
|
406 | 536 | 542 | |||||||||
|
Cash and cash equivalents
|
5,249 | 4,942 | 8,685 | |||||||||
|
Restricted cash for securitization investors
|
1,602 | 2,686 | 501 | |||||||||
|
Investment in securities:
|
||||||||||||
|
Available for sale, at fair value
|
41,537 | 39,926 | 38,830 | |||||||||
|
Held to maturity, at amortized cost
|
- | - | 80 | |||||||||
|
Total investment in securities
|
41,537 | 39,926 | 38,910 | |||||||||
|
Loans held for investment:
|
||||||||||||
|
Unsecuritized loans held for investment, at amortized cost
|
71,921 | 74,719 | 75,097 | |||||||||
|
Restricted loans for securitization investors
|
54,026 | 51,615 | 15,522 | |||||||||
|
Total loans held for investment
|
125,947 | 126,334 | 90,619 | |||||||||
|
Less: Allowance for loan and lease losses
|
(5,628 | ) | (6,175 | ) | (4,127 | ) | ||||||
|
Net loans held for investment
|
120,319 | 120,159 | 86,492 | |||||||||
|
Loans held for sale, at lower-of-cost-or-fair-value
|
228 | 197 | 268 | |||||||||
|
Accounts receivable from securitizations
|
118 | 127 | 7,128 | |||||||||
|
Premises and equipment, net
|
2,749 | 2,722 | 2,736 | |||||||||
|
Interest receivable
|
1,070 | 1,025 | 936 | |||||||||
|
Goodwill
|
13,591 | 13,593 | 13,596 | |||||||||
|
Other
|
11,040 | 11,556 | 10,394 | |||||||||
|
Total assets
|
$ | 197,503 | $ | 196,933 | $ | 169,646 | ||||||
|
Liabilities:
|
||||||||||||
|
Interest payable
|
$ | 488 | $ | 464 | $ | 509 | ||||||
|
Customer deposits:
|
||||||||||||
|
Non-interest bearing deposits
|
15,048 | 14,471 | 13,439 | |||||||||
|
Interest-bearing deposits
|
107,162 | 104,741 | 102,370 | |||||||||
|
Total customer deposits
|
122,210 | 119,212 | 115,809 | |||||||||
|
Securitized debt obligations
|
26,915 | 29,504 | 3,954 | |||||||||
|
Other debt:
|
||||||||||||
|
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
1,517 | 947 | 1,140 | |||||||||
|
Senior and subordinated notes
|
8,650 | 9,083 | 9,045 | |||||||||
|
Other borrowings
|
4,714 | 4,799 | 6,875 | |||||||||
|
Total other debt
|
14,881 | 14,829 | 17,060 | |||||||||
|
Other liabilities
|
6,468 | 6,863 | 5,725 | |||||||||
|
Total liabilities
|
170,962 | 170,872 | 143,057 | |||||||||
|
Stockholders' equity:
|
||||||||||||
|
Common stock
|
5 | 5 | 5 | |||||||||
|
Paid-in capital, net
|
19,084 | 19,059 | 18,955 | |||||||||
|
Retained earnings and accumulated other comprehensive income
|
10,654 | 10,199 | 10,809 | |||||||||
|
Less: Treasury stock, at cost
|
(3,202 | ) | (3,202 | ) | (3,180 | ) | ||||||
|
Total stockholders' equity
|
26,541 | 26,061 | 26,589 | |||||||||
|
Total liabilities and stockholders' equity
|
$ | 197,503 | $ | 196,933 | $ | 169,646 | ||||||
___________________
|
(1)
|
Certain prior period amounts have been reclassified to conform to the current period presentation.
|
Page 6
Table 7: Average Balances, Net Interest Income and Net Interest Margin — Reported and Managed Basis(1)
|
Reported Basis
|
||||||||||||||||||||||||||||||||||||
|
Quarter Ended 12/31/10
|
Quarter Ended 09/30/10
|
Quarter Ended 12/31/09 (3)
|
||||||||||||||||||||||||||||||||||
|
(dollars in millions)(unaudited)
|
Average Balance
|
Interest Income/
Expense
|
Yield/
Rate
|
Average Balance
|
Interest Income/
Expense
|
Yield/
Rate
|
Average Balance
|
Interest Income/
Expense
|
Yield/
Rate
|
|||||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||
|
Loans held for investment
|
$ | 125,441 | $ | 3,352 | 10.69 | % | $ | 126,307 | $ | 3,447 | 10.92 | % | $ | 94,732 | $ | 2,108 | 8.90 | % | ||||||||||||||||||
|
Investment securities (2)
|
41,004 | 305 | 2.98 | % | 39,872 | 347 | 3.48 | % | 38,487 | 404 | 4.20 | % | ||||||||||||||||||||||||
|
Other
|
7,546 | 17 | 0.90 | % | 6,294 | 21 | 1.33 | % | 10,444 | 83 | 3.18 | % | ||||||||||||||||||||||||
|
Total interest-earning assets
|
$ | 173,991 | $ | 3,674 | 8.45 | % | $ | 172,473 | $ | 3,815 | 8.85 | % | $ | 143,663 | $ | 2,595 | 7.23 | % | ||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
|
Interest-bearing deposits
|
||||||||||||||||||||||||||||||||||||
|
NOW accounts
|
$ | 12,918 | $ | 8 | 0.25 | % | $ | 11,333 | $ | 10 | 0.35 | % | $ | 10,588 | $ | 14 | 0.53 | % | ||||||||||||||||||
|
Money market deposit accounts
|
43,822 | 110 | 1.00 | % | 43,260 | 104 | 0.96 | % | 37,460 | 97 | 1.04 | % | ||||||||||||||||||||||||
|
Savings accounts
|
25,121 | 54 | 0.86 | % | 22,572 | 49 | 0.87 | % | 15,416 | 35 | 0.91 | % | ||||||||||||||||||||||||
|
Other consumer time deposits
|
16,941 | 112 | 2.64 | % | 18,726 | 133 | 2.84 | % | 27,273 | 201 | 2.95 | % | ||||||||||||||||||||||||
|
Public fund CD's of $100,000 or more
|
204 | 1 | 1.96 | % | 220 | 1 | 1.82 | % | 754 | 2 | 1.06 | % | ||||||||||||||||||||||||
|
CD's of $100,000 or more
|
6,696 | 54 | 3.23 | % | 7,256 | 59 | 3.25 | % | 8,634 | 77 | 3.57 | % | ||||||||||||||||||||||||
|
Foreign time deposits
|
895 | 1 | 0.45 | % | 819 | 2 | 0.98 | % | 1,019 | 1 | 0.39 | % | ||||||||||||||||||||||||
|
Total interest-bearing deposits
|
$ | 106,597 | $ | 340 | 1.28 | % | $ | 104,186 | $ | 358 | 1.37 | % | $ | 101,144 | $ | 427 | 1.69 | % | ||||||||||||||||||
|
Senior and subordinated notes
|
8,096 | 65 | 3.21 | % | 8,677 | 72 | 3.32 | % | 8,759 | 71 | 3.24 | % | ||||||||||||||||||||||||
|
Other borrowings
|
6,622 | 81 | 4.89 | % | 6,483 | 85 | 5.24 | % | 9,908 | 89 | 3.59 | % | ||||||||||||||||||||||||
|
Securitization debt obligations
|
27,708 | 165 | 2.38 | % | 30,750 | 191 | 2.48 | % | 4,249 | 54 | 5.08 | % | ||||||||||||||||||||||||
|
Total interest-bearing liabilities
|
$ | 149,023 | $ | 651 | 1.75 | % | $ | 150,096 | $ | 706 | 1.88 | % | $ | 124,060 | $ | 641 | 2.07 | % | ||||||||||||||||||
|
Net interest income/spread
|
$ | 3,023 | 6.70 | % | $ | 3,109 | 6.97 | % | $ | 1,954 | 5.16 | % | ||||||||||||||||||||||||
|
Interest income to average interest-earning assets
|
8.45 | % | 8.85 | % | 7.23 | % | ||||||||||||||||||||||||||||||
|
Interest expense to average interest-earning assets
|
1.50 | % | 1.64 | % | 1.79 | % | ||||||||||||||||||||||||||||||
|
Net interest margin
|
6.95 | % | 7.21 | % | 5.44 | % | ||||||||||||||||||||||||||||||
|
Managed Basis
|
||||||||||||||||||||||||||||||||||||
|
Quarter Ended 12/31/10
|
Quarter Ended 09/30/10
|
Quarter Ended 12/31/09
|
||||||||||||||||||||||||||||||||||
|
Average Balance
|
Interest Income/
Expense
|
Yield/
Rate
|
Average Balance
|
Interest Income/
Expense
|
Yield/
Rate
|
Average Balance
|
Interest Income/
Expense
|
Yield/
Rate
|
||||||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||
|
Loans held for investment
|
$ | 125,441 | $ | 3,352 | 10.69 | % | $ | 126,391 | $ | 3,447 | 10.91 | % | $ | 138,184 | $ | 3,637 | 10.53 | % | ||||||||||||||||||
|
Investment securities (2)
|
41,004 | 305 | 2.98 | % | 39,872 | 347 | 3.48 | % | 38,487 | 404 | 4.20 | % | ||||||||||||||||||||||||
|
Other
|
7,546 | 17 | 0.90 | % | 6,294 | 21 | 1.33 | % | 7,228 | 17 | 0.94 | % | ||||||||||||||||||||||||
|
Total interest-earning assets
|
$ | 173,991 | $ | 3,674 | 8.45 | % | $ | 172,557 | $ | 3,815 | 8.84 | % | $ | 183,899 | $ | 4,058 | 8.83 | % | ||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
|
Interest-bearing deposits
|
||||||||||||||||||||||||||||||||||||
|
NOW accounts
|
$ | 12,918 | $ | 8 | 0.25 | % | $ | 11,333 | $ | 10 | 0.35 | % | $ | 10,588 | $ | 14 | 0.53 | % | ||||||||||||||||||
|
Money market deposit accounts
|
43,822 | 110 | 1.00 | % | 43,260 | 104 | 0.96 | % | 37,460 | 97 | 1.04 | % | ||||||||||||||||||||||||
|
Savings accounts
|
25,121 | 54 | 0.86 | % | 22,572 | 49 | 0.87 | % | 15,416 | 35 | 0.91 | % | ||||||||||||||||||||||||
|
Other consumer time deposits
|
16,941 | 112 | 2.64 | % | 18,726 | 133 | 2.84 | % | 27,273 | 201 | 2.95 | % | ||||||||||||||||||||||||
|
Public fund CD's of $100,000 or more
|
204 | 1 | 1.96 | % | 220 | 1 | 1.82 | % | 754 | 2 | 1.06 | % | ||||||||||||||||||||||||
|
CD's of $100,000 or more
|
6,696 | 54 | 3.23 | % | 7,256 | 59 | 3.25 | % | 8,634 | 77 | 3.57 | % | ||||||||||||||||||||||||
|
Foreign time deposits
|
895 | 1 | 0.45 | % | 819 | 2 | 0.98 | % | 1,019 | 1 | 0.39 | % | ||||||||||||||||||||||||
|
Total interest-bearing deposits
|
$ | 106,597 | $ | 340 | 1.28 | % | $ | 104,186 | $ | 358 | 1.37 | % | $ | 101,144 | $ | 427 | 1.69 | % | ||||||||||||||||||
|
Senior and subordinated notes
|
8,096 | 65 | 3.21 | % | 8,677 | 72 | 3.32 | % | 8,759 | 71 | 3.24 | % | ||||||||||||||||||||||||
|
Other borrowings
|
6,622 | 81 | 4.89 | % | 6,483 | 85 | 5.24 | % | 9,908 | 89 | 3.59 | % | ||||||||||||||||||||||||
|
Securitization debt obligations
|
27,708 | 165 | 2.38 | % | 30,750 | 191 | 2.48 | % | 44,837 | 301 | 2.69 | % | ||||||||||||||||||||||||
|
Total interest-bearing liabilities
|
$ | 149,023 | $ | 651 | 1.75 | % | $ | 150,096 | $ | 706 | 1.88 | % | $ | 164,648 | $ | 888 | 2.16 | % | ||||||||||||||||||
|
Net interest income/spread
|
$ | 3,023 | 6.70 | % | $ | 3,109 | 6.96 | % | $ | 3,170 | 6.67 | % | ||||||||||||||||||||||||
|
Interest income to average interest-earning assets
|
8.45 | % | 8.84 | % | 8.83 | % | ||||||||||||||||||||||||||||||
|
Interest expense to average interest-earning assets
|
1.50 | % | 1.64 | % | 1.93 | % | ||||||||||||||||||||||||||||||
|
Net interest margin
|
6.95 | % | 7.21 | % | 6.90 | % | ||||||||||||||||||||||||||||||
___________________
|
(1)
|
Reflects amounts based on continuing operations.
|
|
(2)
|
Consists of available-for-sale and held-to-maturity securities.
|
|
(3)
|
Certain prior period amounts have been reclassified to conform to the current period presentation.
|
*Prior to the January 1, 2010 adoption of the new consolidation accounting standards, management evaluated the Company and each of its lines of business results on a "managed" basis, which is a non-GAAP measure. With the adoption of the new consolidation accounting standards, the Company's reported results are comparable to the "managed" basis, which reflect the consolidation of the majority of the Company's credit card securitization trusts. The accompanying "Exhibit 99.3—Reconciliation of Non-GAAP Measures and Regulatory Capital Measures" presents a reconciliation of the Company's non-GAAP "managed" results to its reported GAAP results for periods prior to January 1, 2010. See the accompanying schedule "Table 4: Impact from Adoption of New Consolidation Accounting Guidance January 1, 2010" for additional information on the impact from the new accounting standards.
Page 7
Table 8: Lending Information and Statistics(1)
|
(dollars in millions)(unaudited)
|
2010
Q4 |
2010
Q3 |
2010
Q2 |
2010
Q1 |
2009
Q4 |
|||||||||||||||
|
Period-end loans held for investment
|
||||||||||||||||||||
|
Credit card:
|
||||||||||||||||||||
|
Domestic credit card
|
$ | 53,849 | $ | 53,839 | $ | 54,628 | $ | 56,228 | $ | 60,300 | ||||||||||
|
International credit card
|
7,522 | 7,487 | 7,269 | 7,578 | 8,224 | |||||||||||||||
|
Total credit card
|
61,371 | 61,326 | 61,897 | 63,806 | 68,524 | |||||||||||||||
|
Consumer banking:
|
||||||||||||||||||||
|
Automobile
|
17,867 | 17,643 | 17,221 | 17,446 | 18,186 | |||||||||||||||
|
Home loan
|
12,103 | 12,763 | 13,322 | 13,967 | 14,893 | |||||||||||||||
|
Retail banking
|
4,413 | 4,591 | 4,770 | 4,970 | 5,135 | |||||||||||||||
|
Total consumer banking
|
34,383 | 34,997 | 35,313 | 36,383 | 38,214 | |||||||||||||||
|
Commercial banking:
|
||||||||||||||||||||
|
Commercial and multifamily real estate
|
13,396 | 13,383 | 13,580 | 13,618 | 13,843 | |||||||||||||||
|
Middle market
|
10,484 | 10,456 | 10,203 | 10,310 | 10,062 | |||||||||||||||
|
Specialty lending
|
4,020 | 3,813 | 3,815 | 3,619 | 3,555 | |||||||||||||||
|
Total commercial lending
|
27,900 | 27,652 | 27,598 | 27,547 | 27,460 | |||||||||||||||
|
Small-ticket commercial real estate
|
1,842 | 1,890 | 1,977 | 2,065 | 2,153 | (7) | ||||||||||||||
|
Total commercial banking
|
29,742 | 29,542 | 29,575 | 29,612 | 29,613 | |||||||||||||||
|
Other loans (2)
|
451 | 469 | 470 | 464 | 452 | |||||||||||||||
|
Total
|
$ | 125,947 | $ | 126,334 | $ | 127,255 | $ | 130,265 | $ | 136,803 | ||||||||||
|
Average loans held for investment
|
||||||||||||||||||||
|
Credit card:
|
||||||||||||||||||||
|
Domestic credit card
|
$ | 53,189 | $ | 54,049 | $ | 55,252 | $ | 58,108 | $ | 60,443 | ||||||||||
|
International credit card
|
7,419 | 7,342 | 7,427 | 7,814 | 8,300 | |||||||||||||||
|
Total credit card
|
60,608 | 61,391 | 62,679 | 65,922 | 68,743 | |||||||||||||||
|
Consumer banking:
|
||||||||||||||||||||
|
Automobile
|
17,763 | 17,397 | 17,276 | 17,769 | 18,768 | |||||||||||||||
|
Home loan
|
12,522 | 13,024 | 13,573 | 15,434 | 15,170 | |||||||||||||||
|
Retail banking
|
4,466 | 4,669 | 4,811 | 5,042 | 5,176 | |||||||||||||||
|
Total consumer banking
|
34,751 | 35,090 | 35,660 | 38,245 | 39,114 | |||||||||||||||
|
Commercial banking:
|
||||||||||||||||||||
|
Commercial and multifamily real estate
|
13,323 | 13,411 | 13,543 | 13,716 | 13,926 | |||||||||||||||
|
Middle market
|
10,460 | 10,352 | 10,276 | 10,324 | 10,052 | |||||||||||||||
|
Specialty lending
|
3,947 | 3,715 | 3,654 | 3,609 | 3,535 | |||||||||||||||
|
Total commercial lending
|
27,730 | 27,478 | 27,473 | 27,649 | 27,513 | |||||||||||||||
|
Small-ticket commercial real estate
|
1,887 | 1,957 | 2,060 | 2,074 | 2,354 | |||||||||||||||
|
Total commercial banking
|
29,617 | 29,435 | 29,533 | 29,723 | 29,867 | |||||||||||||||
|
Other loans (2)
|
465 | 475 | 463 | 489 | 460 | |||||||||||||||
|
Total
|
$ | 125,441 | $ | 126,391 | $ | 128,335 | $ | 134,379 | $ | 138,184 | ||||||||||
|
Net charge-off rates
|
||||||||||||||||||||
|
Credit card:
|
||||||||||||||||||||
|
Domestic credit card
|
7.28 | % | 8.23 | % | 9.49 | % | 10.48 | % | 9.59 | % | ||||||||||
|
International credit card
|
6.68 | % | 7.60 | % | 8.38 | % | 8.83 | % | 9.52 | % | ||||||||||
|
Total credit card
|
7.21 | % | 8.16 | % | 9.36 | % | 10.29 | % | 9.58 | % | ||||||||||
|
Consumer banking:
|
||||||||||||||||||||
|
Automobile
|
2.65 | % | 2.71 | % | 2.09 | % | 2.97 | % | 4.55 | % | ||||||||||
|
Home loan(3)
|
0.89 | % | 0.41 | % | 0.46 | % | 0.94 | % | 0.72 | % | ||||||||||
|
Retail banking(3)
|
2.40 | % | 2.20 | % | 2.11 | % | 2.11 | % | 2.93 | % | ||||||||||
|
Total consumer banking(3)
|
1.98 | % | 1.79 | % | 1.47 | % | 2.03 | % | 2.85 | % | ||||||||||
|
Commercial banking:
|
||||||||||||||||||||
|
Commercial and multifamily real estate(3)
|
1.15 | % | 1.78 | % | 1.17 | % | 1.45 | % | 3.02 | % | ||||||||||
|
Middle market (3)
|
0.94 | % | 0.43 | % | 0.78 | % | 0.82 | % | 0.75 | % | ||||||||||
|
Specialty lending
|
0.63 | % | 0.64 | % | 0.87 | % | 0.90 | % | 1.85 | % | ||||||||||
|
Total commercial lending(3)
|
1.00 | % | 1.11 | % | 0.98 | % | 1.14 | % | 2.04 | % | ||||||||||
|
Small-ticket commercial real estate
|
7.72 | % | 3.48 | % | 4.21 | % | 4.43 | % | 13.08 | %(7) | ||||||||||
|
Total commercial banking(3)
|
1.43 | % | 1.27 | % | 1.21 | % | 1.37 | % | 2.91 | % | ||||||||||
|
Other loans
|
21.11 | % | 17.63 | % | 27.95 | % | 18.82 | % | 28.25 | % | ||||||||||
|
Total
|
4.45 | % | 4.82 | % | 5.35 | % | 6.01 | % | 6.33 | % | ||||||||||
|
30+ day performing delinquency rates
|
||||||||||||||||||||
|
Credit card:
|
||||||||||||||||||||
|
Domestic credit card
|
4.09 | % | 4.53 | % | 4.79 | % | 5.30 | % | 5.78 | % | ||||||||||
|
International credit card
|
5.75 | % | 5.84 | % | 6.03 | % | 6.39 | % | 6.55 | % | ||||||||||
|
Total credit card
|
4.29 | % | 4.69 | % | 4.94 | % | 5.43 | % | 5.88 | % | ||||||||||
|
Consumer banking:
|
||||||||||||||||||||
|
Automobile
|
8.14 | % | 7.95 | % | 7.74 | % | 7.58 | % | 10.03 | % | ||||||||||
|
Home loan(3)
|
0.64 | % | 0.69 | % | 0.68 | % | 0.93 | % | 1.26 | % | ||||||||||
|
Retail banking(3)
|
0.93 | % | 1.08 | % | 0.87 | % | 1.02 | % | 1.23 | % | ||||||||||
|
Total consumer banking(3)
|
4.57 | % | 4.40 | % | 4.15 | % | 4.13 | % | 5.43 | % | ||||||||||
|
Nonperforming asset rates(5) (6)
|
||||||||||||||||||||
|
Consumer banking:
|
||||||||||||||||||||
|
Automobile(4)
|
0.64 | % | 0.60 | % | 0.56 | % | 0.55 | % | 0.92 | % | ||||||||||
|
Home loan(3)
|
4.25 | % | 4.09 | % | 3.78 | % | 3.17 | % | 2.24 | % | ||||||||||
|
Retail banking(3)
|
2.66 | % | 2.41 | % | 2.25 | % | 2.07 | % | 2.11 | % | ||||||||||
|
Total consumer banking(3)
|
2.17 | % | 2.11 | % | 2.00 | % | 1.76 | % | 1.60 | % | ||||||||||
|
Commercial banking:
|
||||||||||||||||||||
|
Commercial and multifamily real estate(3)
|
2.23 | % | 2.44 | % | 2.82 | % | 3.65 | % | 3.25 | % | ||||||||||
|
Middle market (3)
|
1.33 | % | 1.36 | % | 1.20 | % | 1.15 | % | 1.09 | % | ||||||||||
|
Specialty lending
|
1.30 | % | 1.75 | % | 1.94 | % | 2.18 | % | 2.25 | % | ||||||||||
|
Total commercial lending(3)
|
1.76 | % | 1.94 | % | 2.10 | % | 2.52 | % | 2.33 | % | ||||||||||
|
Small-ticket commercial real estate
|
2.38 | % | 2.04 | % | 3.57 | % | 4.18 | % | 4.87 | %(7) | ||||||||||
|
Total commercial banking(3)
|
1.80 | % | 1.94 | % | 2.20 | % | 2.64 | % | 2.52 | % | ||||||||||
Page 8
Table 9: Credit Card Segment Financial & Statistical Summary(1)
|
(dollars in millions) (unaudited)
|
2010
Q4 |
2010
Q3 |
2010
Q2 |
2010
Q1 |
2009
Q4 |
|||||||||||||||
|
Credit Card
|
||||||||||||||||||||
|
Earnings:
|
||||||||||||||||||||
|
Net interest income
|
$ | 1,870 | $ | 1,934 | $ | 1,977 | $ | 2,113 | $ | 2,029 | ||||||||||
|
Non-interest income
|
672 | 671 | 659 | 718 | 897 | |||||||||||||||
|
Total revenue
|
$ | 2,542 | $ | 2,605 | $ | 2,636 | $ | 2,831 | $ | 2,926 | ||||||||||
|
Provision for loan and lease losses
|
589 | 660 | 765 | 1,175 | 1,204 | |||||||||||||||
|
Non-interest expense
|
1,056 | 978 | 1,002 | 914 | 943 | |||||||||||||||
|
Income from continuing operations before taxes
|
897 | 967 | 869 | 742 | 779 | |||||||||||||||
|
Income tax provision
|
311 | 336 | 301 | 253 | 269 | |||||||||||||||
|
Income from continuing operations, net of tax
|
$ | 586 | $ | 631 | $ | 568 | $ | 489 | $ | 510 | ||||||||||
|
Selected metrics:
|
||||||||||||||||||||
|
Period end loans held for investment
|
$ | 61,371 | $ | 61,326 | $ | 61,897 | $ | 63,806 | $ | 68,524 | ||||||||||
|
Average loans held for investment
|
$ | 60,608 | $ | 61,391 | $ | 62,679 | $ | 65,922 | $ | 68,743 | ||||||||||
|
Loans held for investment yield
|
13.97 | % | 14.27 | % | 14.24 | % | 14.88 | % | 14.21 | % | ||||||||||
|
Revenue margin
|
16.78 | % | 16.97 | % | 16.82 | % | 17.18 | % | 17.03 | % | ||||||||||
|
Net charge-off rate
|
7.21 | % | 8.16 | % | 9.36 | % | 10.29 | % | 9.58 | % | ||||||||||
|
30+ day performing delinquency rate
|
4.29 | % | 4.69 | % | 4.94 | % | 5.43 | % | 5.88 | % | ||||||||||
|
Purchase volume (8)
|
$ | 29,379 | $ | 27,039 | $ | 26,570 | $ | 23,924 | $ | 26,866 | ||||||||||
|
Domestic Card
|
||||||||||||||||||||
|
Earnings:
|
||||||||||||||||||||
|
Net interest income
|
$ | 1,621 | $ | 1,691 | $ | 1,735 | $ | 1,865 | $ | 1,781 | ||||||||||
|
Non-interest income
|
594 | 575 | 560 | 618 | 794 | |||||||||||||||
|
Total revenue
|
$ | 2,215 | $ | 2,266 | $ | 2,295 | $ | 2,483 | $ | 2,575 | ||||||||||
|
Provision for loan and lease losses
|
505 | 577 | 675 | 1,096 | 1,033 | |||||||||||||||
|
Non-interest expense
|
935 | 844 | 869 | 809 | 833 | |||||||||||||||
|
Income from continuing operations before taxes
|
775 | 845 | 751 | 578 | 709 | |||||||||||||||
|
Income tax provision
|
276 | 301 | 268 | 206 | 248 | |||||||||||||||
|
Income from continuing operations, net of tax
|
$ | 499 | $ | 544 | $ | 483 | $ | 372 | $ | 461 | ||||||||||
|
Selected metrics:
|
||||||||||||||||||||
|
Period end loans held for investment
|
$ | 53,849 | $ | 53,839 | $ | 54,628 | $ | 56,228 | $ | 60,300 | ||||||||||
|
Average loans held for investment
|
$ | 53,189 | $ | 54,049 | $ | 55,252 | $ | 58,108 | $ | 60,443 | ||||||||||
|
Loans held for investment yield
|
13.57 | % | 13.95 | % | 13.98 | % | 14.78 | % | 14.08 | % | ||||||||||
|
Revenue margin
|
16.66 | % | 16.77 | % | 16.61 | % | 17.09 | % | 17.04 | % | ||||||||||
|
Net charge-off rate
|
7.28 | % | 8.23 | % | 9.49 | % | 10.48 | % | 9.59 | % | ||||||||||
|
30+ day performing delinquency rate
|
4.09 | % | 4.53 | % | 4.79 | % | 5.30 | % | 5.78 | % | ||||||||||
|
Purchase volume (8)
|
$ | 26,985 | $ | 24,858 | $ | 24,513 | $ | 21,988 | $ | 24,593 | ||||||||||
|
International Card
|
||||||||||||||||||||
|
Earnings:
|
||||||||||||||||||||
|
Net interest income
|
$ | 249 | $ | 243 | $ | 242 | $ | 248 | $ | 248 | ||||||||||
|
Non-interest income
|
78 | 96 | 99 | 100 | 103 | |||||||||||||||
|
Total revenue
|
$ | 327 | $ | 339 | $ | 341 | $ | 348 | $ | 351 | ||||||||||
|
Provision for loan and lease losses
|
84 | 83 | 90 | 79 | 171 | |||||||||||||||
|
Non-interest expense
|
121 | 134 | 133 | 105 | 110 | |||||||||||||||
|
Income from continuing operations before taxes
|
122 | 122 | 118 | 164 | 70 | |||||||||||||||
|
Income tax provision
|
35 | 35 | 33 | 47 | 21 | |||||||||||||||
|
Income from continuing operations, net of tax
|
$ | 87 | $ | 87 | $ | 85 | $ | 117 | $ | 49 | ||||||||||
|
Selected metrics:
|
||||||||||||||||||||
|
Period end loans held for investment
|
$ | 7,522 | $ | 7,487 | $ | 7,269 | $ | 7,578 | $ | 8,224 | ||||||||||
|
Average loans held for investment
|
$ | 7,419 | $ | 7,342 | $ | 7,427 | $ | 7,814 | $ | 8,300 | ||||||||||
|
Loans held for investment yield
|
16.82 | % | 16.62 | % | 16.21 | % | 15.66 | % | 15.19 | % | ||||||||||
|
Revenue margin
|
17.63 | % | 18.47 | % | 18.37 | % | 17.81 | % | 16.90 | % | ||||||||||
|
Net charge-off rate
|
6.68 | % | 7.60 | % | 8.38 | % | 8.83 | % | 9.52 | % | ||||||||||
|
30+ day performing delinquency rate
|
5.75 | % | 5.84 | % | 6.03 | % | 6.39 | % | 6.55 | % | ||||||||||
|
Purchase volume (8)
|
$ | 2,394 | $ | 2,181 | $ | 2,057 | $ | 1,936 | $ | 2,273 | ||||||||||
Page 9
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Consumer Banking Segment Financial & Statistical Summary(1)
|
(dollars in millions) (unaudited)
|
2010
Q4 |
2010
Q3 |
2010
Q2 |
2010
Q1 |
2009
Q4 |
|||||||||||||||
|
Consumer Banking
|
||||||||||||||||||||
|
Earnings:
|
||||||||||||||||||||
|
Net interest income
|
$ | 950 | $ | 946 | $ | 935 | $ | 896 | $ | 833 | ||||||||||
|
Non-interest income
|
196 | 196 | 162 | 316 | 153 | |||||||||||||||
|
Total revenue
|
$ | 1,146 | $ | 1,142 | $ | 1,097 | $ | 1,212 | $ | 986 | ||||||||||
|
Provision for loan and lease losses
|
189 | 114 | (112 | ) | 50 | 249 | ||||||||||||||
|
Non-interest expense
|
770 | 757 | 735 | 688 | 749 | |||||||||||||||
|
Income from continuing operations before taxes
|
187 | 271 | 474 | 474 | (12 | ) | ||||||||||||||
|
Income tax provision (benefit)
|
67 | 96 | 169 | 169 | (4 | ) | ||||||||||||||
|
Income (loss) from continuing operations, net of tax
|
$ | 120 | $ | 175 | $ | 305 | $ | 305 | $ | (8 | ) | |||||||||
|
Selected metrics:
|
||||||||||||||||||||
|
Period end loans held for investment
|
$ | 34,383 | $ | 34,997 | $ | 35,313 | $ | 36,383 | $ | 38,214 | ||||||||||
|
Average loans held for investment
|
$ | 34,751 | $ | 35,090 | $ | 35,660 | $ | 38,245 | $ | 39,114 | ||||||||||
|
Loans held for investment yield
|
9.20 | % | 9.28 | % | 8.99 | % | 8.96 | % | 8.83 | % | ||||||||||
|
Auto loan originations
|
$ | 2,217 | $ | 2,439 | $ | 1,765 | $ | 1,343 | $ | 1,018 | ||||||||||
|
Period-end deposits
|
$ | 82,959 | $ | 79,506 | $ | 77,407 | $ | 76,883 | $ | 74,145 | ||||||||||
|
Average deposits
|
$ | 81,834 | $ | 78,224 | $ | 77,082 | $ | 75,115 | $ | 72,976 | ||||||||||
|
Deposit interest expense rate
|
1.13 | % | 1.18 | % | 1.18 | % | 1.27 | % | 1.41 | % | ||||||||||
|
Core deposit intangible amortization
|
$ | 34 | $ | 36 | $ | 36 | $ | 38 | $ | 40 | ||||||||||
|
Net charge-off rate (3)
|
1.98 | % | 1.79 | % | 1.47 | % | 2.03 | % | 2.85 | % | ||||||||||
|
Nonperforming loans as a percentage of loans held for investment (3)(4)
|
1.97 | % | 1.92 | % | 1.82 | % | 1.62 | % | 1.45 | % | ||||||||||
|
Nonperforming asset rate (3) (4)
|
2.17 | % | 2.11 | % | 2.00 | % | 1.76 | % | 1.60 | % | ||||||||||
|
30+ day performing delinquency rate (3) (4)
|
4.57 | % | 4.40 | % | 4.15 | % | 4.13 | % | 5.43 | % | ||||||||||
|
Period-end loans serviced for others
|
$ | 20,689 | $ | 20,298 | $ | 21,425 | $ | 26,778 | $ | 30,283 | ||||||||||
Page 10
Table 11: Commercial Banking Segment Financial & Statistical Summary(1)
|
(dollars in millions) (unaudited)
|
2010
Q4 |
2010
Q3 |
2010
Q2 |
2010
Q1 |
2009
Q4 |
|||||||||||||||
|
Commercial Banking
|
||||||||||||||||||||
|
Earnings:
|
||||||||||||||||||||
|
Net interest income
|
$ | 336 | $ | 325 | $ | 319 | $ | 312 | $ | 318 | ||||||||||
|
Non-interest income
|
49 | 30 | 60 | 42 | 38 | |||||||||||||||
|
Total revenue
|
$ | 385 | $ | 355 | $ | 379 | $ | 354 | $ | 356 | ||||||||||
|
Provision for loan and lease losses
|
34 | 95 | 62 | 238 | 368 | |||||||||||||||
|
Non-interest expense
|
207 | 199 | 198 | 192 | 197 | |||||||||||||||
|
Income (loss) from continuing operations before taxes
|
144 | 61 | 119 | (76 | ) | (209 | ) | |||||||||||||
|
Income tax provision (benefit)
|
51 | 22 | 42 | (27 | ) | (73 | ) | |||||||||||||
|
Income (loss) from continuing operations, net of tax
|
$ | 93 | $ | 39 | $ | 77 | $ | (49 | ) | $ | (136 | ) | ||||||||
|
Selected metrics:
|
||||||||||||||||||||
|
Period end loans held for investment
|
$ | 29,742 | $ | 29,542 | $ | 29,575 | $ | 29,612 | $ | 29,613 | ||||||||||
|
Average loans held for investment
|
$ | 29,617 | $ | 29,435 | $ | 29,533 | $ | 29,723 | $ | 29,867 | ||||||||||
|
Loans held for investment yield
|
5.13 | % | 5.13 | % | 4.94 | % | 5.03 | % | 5.11 | % | ||||||||||
|
Period end deposits
|
$ | 22,630 | $ | 22,100 | $ | 21,527 | $ | 21,605 | $ | 20,480 | ||||||||||
|
Average deposits
|
$ | 22,808 | $ | 21,899 | $ | 22,171 | $ | 21,859 | $ | 19,420 | ||||||||||
|
Deposit interest expense rate
|
0.61 | % | 0.67 | % | 0.67 | % | 0.72 | % | 0.80 | % | ||||||||||
|
Core deposit intangible amortization
|
$ | 13 | $ | 14 | $ | 14 | $ | 14 | $ | 14 | ||||||||||
|
Net charge-off rate (3)
|
1.43 | % | 1.27 | % | 1.21 | % | 1.37 | % | 2.91 | % | ||||||||||
|
Nonperforming loans as a percentage of loans held for investment (3)
|
1.66 | % | 1.81 | % | 2.04 | % | 2.48 | % | 2.37 | % | ||||||||||
|
Nonperforming asset rate (3)
|
1.80 | % | 1.94 | % | 2.20 | % | 2.64 | % | 2.52 | % | ||||||||||
Page 11
Table 12: Other and Total Segment Financial & Statistical Summary(1)
|
(dollars in millions) (unaudited)
|
2010
Q4 |
2010
Q3 |
2010
Q2 |
2010
Q1 |
2009
Q4 |
|||||||||||||||
|
Other
|
||||||||||||||||||||
|
Earnings:
|
||||||||||||||||||||
|
Net interest income (expense)
|
$ | (133 | ) | $ | (93 | ) | $ | (132 | ) | $ | (91 | ) | $ | (11 | ) | |||||
|
Non-interest income (expense)
|
22 | 7 | (74 | ) | (14 | ) | 111 | |||||||||||||
|
Total revenue
|
$ | (111 | ) | $ | (86 | ) | $ | (206 | ) | $ | (105 | ) | $ | 100 | ||||||
|
Provision for loan and lease losses
|
27 | (2 | ) | 10 | 18 | 24 | ||||||||||||||
|
Restructuring expense (9)
|
- | - | - | - | 32 | |||||||||||||||
|
Non-interest expense
|
58 | 62 | 65 | 53 | 27 | |||||||||||||||
|
Income (loss) from continuing operations before taxes
|
(196 | ) | (146 | ) | (281 | ) | (176 | ) | 17 | |||||||||||
|
Income tax benefit
|
(98 | ) | (119 | ) | (143 | ) | (151 | ) | (21 | ) | ||||||||||
|
Income (loss) from continuing operations, net of tax
|
$ | (98 | ) | $ | (27 | ) | $ | (138 | ) | $ | (25 | ) | $ | 38 | ||||||
|
Selected metrics:
|
||||||||||||||||||||
|
Period end loans held for investment (2)
|
$ | 451 | $ | 469 | $ | 470 | $ | 464 | $ | 452 | ||||||||||
|
Average loans held for investment (2)
|
$ | 465 | $ | 475 | $ | 463 | $ | 489 | $ | 460 | ||||||||||
|
Period end deposits
|
$ | 16,621 | $ | 17,606 | $ | 18,397 | $ | 19,299 | $ | 21,184 | ||||||||||
|
Average deposits
|
$ | 17,094 | $ | 18,132 | $ | 19,231 | $ | 20,556 | $ | 22,202 | ||||||||||
|
Total
|
||||||||||||||||||||
|
Earnings:
|
||||||||||||||||||||
|
Net interest income
|
$ | 3,023 | $ | 3,112 | $ | 3,099 | $ | 3,230 | $ | 3,169 | ||||||||||
|
Non-interest income
|
939 | 904 | 807 | 1,062 | 1,199 | |||||||||||||||
|
Total revenue
|
$ | 3,962 | $ | 4,016 | $ | 3,906 | $ | 4,292 | $ | 4,368 | ||||||||||
|
Provision for loan and lease losses
|
839 | 867 | 725 | 1,481 | 1,845 | |||||||||||||||
|
Restructuring expense (9)
|
- | - | - | - | 32 | |||||||||||||||
|
Non-interest expense
|
2,091 | 1,996 | 2,000 | 1,847 | 1,916 | |||||||||||||||
|
Income from continuing operations before taxes
|
1,032 | 1,153 | 1,181 | 964 | 575 | |||||||||||||||
|
Income tax provision
|
331 | 335 | 369 | 244 | 171 | |||||||||||||||
|
Income from continuing operations, net of tax
|
$ | 701 | $ | 818 | $ | 812 | $ | 720 | $ | 404 | ||||||||||
|
Selected metrics:
|
||||||||||||||||||||
|
Period end loans held for investment
|
$ | 125,947 | $ | 126,334 | $ | 127,255 | $ | 130,265 | $ | 136,803 | ||||||||||
|
Average loans held for investment
|
$ | 125,441 | $ | 126,391 | $ | 128,335 | $ | 134,379 | $ | 138,184 | ||||||||||
|
Period end deposits
|
$ | 122,210 | $ | 119,212 | $ | 117,331 | $ | 117,787 | $ | 115,809 | ||||||||||
|
Average deposits
|
$ | 121,736 | $ | 118,255 | $ | 118,484 | $ | 117,530 | $ | 114,598 | ||||||||||
Page 12
CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Notes to Loan and Segment Disclosures (Tables 8 — 12)
|
(1)
|
Prior to the January 1, 2010 adoption of the new consolidation accounting standards, management evaluated the financial performance of the Company and the results of each of its business segments on a non-GAAP "managed" basis. Our managed presentations assumed that our securitized loans had not been sold and that the earnings from securitized loans were classified in our results of operations in the same manner as the earnings on loans that we owned. The adoption of the new consolidation accounting standards resulted in the consolidation of the majority of the Company's credit card securitization trusts. As a result, the Company's reported and managed basis presentations are generally comparable for periods beginning after January 1, 2010, except for one securitization trust that remained unconsolidated during the first two quarters of 2010. The Company exercised its clean-up call option on this trust effective September 15, 2010, which resulted in the consolidation of $93 million of loans underlying this trust in the third quarter of 2010. The accompanying Exhibit "Exhibit 99.3—Reconciliation of Non-GAAP Measures and Regulatory Capital Measures" presents a reconciliation of the Company's non-GAAP "managed" results to its reported GAAP results.
|
|
(2)
|
Other loans held for investment includes unamortized premiums and discounts on loans acquired as part of the North Fork and Hibernia acquisitions.
|
|
(3)
|
The credit quality statistics excluding the impact of loans acquired from Chevy Chase Bank (CCB) are as follows.
|
|
(in millions) (unaudited)
|
2010
Q4 |
2010
Q3 |
2010
Q2 |
2010
Q1 |
2009
Q4 |
|||||||||||||||
|
CCB period end acquired loan portfolio
|
$ | 5,532 | $ | 5,891 | $ | 6,381 | $ | 6,799 | $ | 7,251 | ||||||||||
|
CCB average acquired loan portfolio
|
$ | 5,633 | $ | 6,014 | $ | 6,541 | $ | 7,037 | $ | 7,512 | ||||||||||
|
Net charge-off rates
|
||||||||||||||||||||
|
Consumer banking:
|
||||||||||||||||||||
|
Home loan
|
1.46 | % | 0.68 | % | 0.77 | % | 1.02 | % | 1.24 | % | ||||||||||
|
Retail banking
|
2.49 | % | 2.29 | % | 2.23 | % | 2.22 | % | 3.20 | % | ||||||||||
|
Total consumer banking
|
2.32 | % | 2.11 | % | 1.76 | % | 2.28 | % | 3.45 | % | ||||||||||
|
Commercial banking:
|
||||||||||||||||||||
|
Commercial and multifamily real estate
|
1.17 | % | 1.81 | % | 1.19 | % | 1.48 | % | 3.05 | % | ||||||||||
|
Middle market
|
0.97 | % | 0.44 | % | 0.82 | % | 0.87 | % | 0.75 | % | ||||||||||
|
Total commercial lending
|
1.02 | % | 1.14 | % | 1.01 | % | 1.48 | % | 2.05 | % | ||||||||||
|
Total commercial banking
|
1.45 | % | 1.30 | % | 1.24 | % | 1.41 | % | 2.93 | % | ||||||||||
|
30+ day performing delinquency rates
|
||||||||||||||||||||
|
Consumer banking:
|
||||||||||||||||||||
|
Home loan
|
1.06 | % | 1.16 | % | 1.14 | % | 1.58 | % | 2.18 | % | ||||||||||
|
Retail banking
|
0.97 | % | 1.12 | % | 0.91 | % | 1.07 | % | 1.30 | % | ||||||||||
|
Total consumer banking
|
5.35 | % | 5.19 | % | 4.93 | % | 4.95 | % | 6.56 | % | ||||||||||
|
Nonperforming asset rates
|
||||||||||||||||||||
|
Consumer banking:
|
||||||||||||||||||||
|
Home loan
|
7.05 | % | 6.83 | % | 6.30 | % | 5.36 | % | 3.88 | % | ||||||||||
|
Retail banking
|
2.77 | % | 2.51 | % | 2.37 | % | 2.17 | % | 2.23 | % | ||||||||||
|
Total consumer banking
|
2.54 | % | 2.49 | % | 2.38 | % | 2.11 | % | 1.93 | % | ||||||||||
|
Commercial banking:
|
||||||||||||||||||||
|
Commercial and multifamily real estate
|
2.28 | % | 2.47 | % | 2.90 | % | 3.71 | % | 3.34 | % | ||||||||||
|
Middle market
|
1.36 | % | 1.42 | % | 1.25 | % | 1.23 | % | 1.13 | % | ||||||||||
|
Total commercial lending
|
1.79 | % | 1.98 | % | 2.16 | % | 2.60 | % | 2.39 | % | ||||||||||
|
Total commercial banking
|
1.83 | % | 1.98 | % | 2.26 | % | 2.72 | % | 2.62 | % | ||||||||||
|
Nonperforming loans as a percentage of loans held for investment
|
||||||||||||||||||||
|
Consumer banking
|
2.30 | % | 2.26 | % | 2.16 | % | 1.93 | % | 1.75 | % | ||||||||||
|
Commercial banking
|
1.69 | % | 1.84 | % | 2.09 | % | 2.55 | % | 2.43 | % | ||||||||||
|
(4)
|
Includes nonaccrual consumer auto loans 90+ days past due.
|
|
(5)
|
Nonperforming assets consist of nonperforming loans and real estate owned ("REO") and foreclosed assets. The nonperforming asset ratios are calculated based on nonperforming assets for each segment divided by the combined total of loans held for investment, REO and foreclosed assets for each respective segment.
|
|
(6)
|
As permitted by regulatory guidance, the Company's policy is not to classify delinquent credit card loans as nonperforming. Instead, we continue to accrue finance charges and fees on credit card loans until the loan is charged off, typically when the account becomes 180 days past due. Billed finance charges and fees considered uncollectible are not recognized in income.
|
|
(7)
|
During Q4 2009, the Company reclassified small-ticket commercial real estate loans totaling $128 million to loans held for sale from loans held for investment and recognized charge-offs of $80 million.
|
|
(8)
|
Includes credit card purchase transactions net of returns. Excludes cash advance transactions.
|
|
(9)
|
In 2009, the Company completed its restructuring initiative that was initiated in 2007.
|
FOR IMMEDIATE RELEASE: January 20, 2011
|
Contacts:
|
Jeff Norris
Investor Relations
|
Danielle Dietz
Investor Relations
|
Tatiana Stead
Media Relations
|
Julie Rakes
Media Relations
|
|
|
703-720-2455
|
703-720-2455
|
703-720-2352
|
804-284-5800 |
Capital One Reports Fourth Quarter 2010 Net Income of $697 million,
or $1.52 per share
Earnings for full year 2010 were $2.7 billion, or $6.01 per share
Compared to fourth quarter 2009, earnings were up $321 million, or 85 percent
Credit performance continues to improve
Charge-offs improved by approximately 36 percent, or nearly $0.8 billion, from the fourth quarter of 2009
Charge-offs improved $128 million in the fourth quarter compared to the third quarter of 2010
Domestic Card charge-off rate improved 231 basis points relative to fourth quarter of 2009 to 7.28 percent
Balance sheet remains strong
Excluding run-off portfolios, loans grew $1 billion in the quarter
Strong deposit growth with disciplined pricing continued, with Commercial and Consumer Banking deposits up more than $10 billion, or 11.6 percent, in 2010
Tier 1 common equity ratio improved to 8.78 percent in the fourth quarter
McLean, Va. (January 20, 2011) – Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2010 of $697 million, or $1.52 per common share, an increase of 85 percent compared to fourth quarter 2009 net income of $376 million, or $0.83 per share. For the full year of 2010, net income was $2.7 billion, or $6.01 per share, compared to net income of $320 million, or $0.74 per share for 2009 including the ($563.9) million, or ($1.31) per share, impact to net income from the repayment of the government’s TARP preferred share investment in 2009.
“In the second half of 2010, improvements in our credit results outpaced the economic recovery, and we began to see some stabilization in loan volumes and early signs of a return to loan growth in 2011,” said Richard D. Fairbank, Capital One’s Chairman and Chief Executive Officer. "With high performing businesses, a well-recognized brand, and a strong balance sheet, we have emerged from the recession well-positioned to create shareholder value in 2011 and beyond."
Capital One – Fourth Quarter 2010 Results
Page 2
Total Company Results
|
·
|
Total revenue in the fourth quarter of 2010 of $4.0 billion decreased $54 million, or 1.3 percent, reflecting slightly lower average loans and the full quarter impact of implementing the CARD Act.
|
|
|
o
|
Net interest income decreased $86 million, and net interest margin declined to 6.95 percent from 7.21 percent.
|
|
|
o
|
Non-interest income increased $32 million in the fourth quarter relative to the prior quarter.
|
|
·
|
Provision expense of $839 million in the fourth quarter decreased $28 million from the prior quarter driven by lower charge-offs which were partially offset by a smaller allowance release in the fourth quarter. Continued improvement in charge-offs and delinquency performance in the portfolio was the primary driver of the fourth quarter allowance release.
|
|
·
|
The allowance as a percentage of loans was 4.47 percent at the end of the fourth quarter of 2010 compared with 4.89 percent at the end of the prior quarter.
|
|
·
|
Charge-offs as a percentage of loans were 4.45 percent at the end of the fourth quarter of 2010 compared with 4.82 percent at the end of the prior quarter and 6.33 percent at the end of 2009.
|
|
·
|
Ending managed loans held for investment declined $387 million, or 0.3 percent, in the fourth quarter to $125.9 billion at December 31, 2010.
|
|
o
|
Excluding the expected run-off in the company’s Installment Loan portfolio in Domestic Card, Home Loan portfolio in Consumer Banking, and Small-Ticket CRE portfolio in Commercial Banking, loan balances grew approximately $1.0 billion in the fourth quarter of 2010.
|
|
·
|
For the year 2010, ending managed loans declined by $10.9 billion, or 7.9 percent, with approximately $6.0 billion of that decline coming from the expected runoff of Home Loans, Installment Loans, and Small-Ticket CRE.
|
|
·
|
Average total deposits increased $3.5 billion, or 2.9 percent, during the quarter to $121.7 billion. Period-end total deposits increased by $3.0 billion, or 2.5 percent, to $122.2 billion.
|
Capital One – Fourth Quarter 2010 Results
Page 3
|
·
|
The cost of funds decreased to 1.50 percent in the fourth quarter from 1.64 percent in the prior quarter, driven by the continuing replacement of higher cost wholesale funding with lower cost deposits.
|
|
·
|
Non-interest expense of $2.0 billion in the fourth quarter of 2010 increased $95 million, or 4.8 percent, compared with the prior quarter, driven in large part by an increase in marketing expenses. Compared with the prior year, non-interest expenses increased $517 million, or 7.0 percent, driven primarily by a 63 percent increase in marketing relative to 2009.
|
|
·
|
The company’s Tier 1 common equity ratio of 8.78 percent increased 57 basis points relative to the ratio of 8.21 percent in the prior quarter.
|
"Loan balances are stabilizing, marketing and partnership opportunities are evident, and headwinds such as charge-offs and the runoff of portfolios continue to abate," said Gary L. Perlin, Capital One’s Chief Financial Officer. "We also expect that our strong capital position and generation will enable us to deploy capital in the service of shareholders to generate attractive returns in 2011 and beyond."
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 more lending information and statistics on the segment results, please refer to the Financial Supplement.
|
·
|
Period-end loans in the Domestic Card segment were $53.8 billion in the fourth quarter, flat with the prior quarter, as expected run-off from the Installment Loan portfolio offset seasonal growth. Excluding the run-off of the Installment Loans, loans grew $679 million compared to the third quarter of 2010.
|
|
·
|
Fourth quarter Domestic Card purchase volumes increased $2.1 billion, or 8.6 percent, relative to the prior quarter, even as overall loan balances have declined.
|
|
·
|
International credit card loans increased in the quarter by $35 million, or 0.47 percent, to $7.5 billion, due to seasonality.
|
Capital One – Fourth Quarter 2010 Results
Page 4
|
·
|
Domestic Card revenue margin declined 11 basis points to 16.66 percent in the fourth quarter from 16.77 percent in the prior quarter driven by a full quarter of lower late fees resulting from implementing the CARD Act.
|
|
·
|
Domestic Card provision expense decreased $72 million in the fourth quarter relative to the prior quarter, driven by lower charge-offs.
|
|
·
|
Net charge-off rates relative to the prior quarter:
|
|
|
–
|
Domestic Card – improved 95 basis points to 7.28 percent from 8.23 percent
|
|
|
–
|
International Card – improved 92 basis points 6.68 to percent from 7.60 percent
|
|
·
|
Delinquency rates relative to the prior quarter:
|
|
|
–
|
Domestic Card – improved 44 basis points to 4.09 percent from 4.53 percent
|
|
|
–
|
International Card – improved 9 basis points to 5.75 percent from 5.84 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.
|
·
|
Revenues increased $30 million, or 8.5 percent, in the fourth quarter due to modest loan growth with stable loan yields and an increase in non-interest income due to the absence of a third quarter loss from the sale of GreenPoint HFS loans.
|
|
·
|
Provision expense decreased $61 million due to an allowance release in the fourth quarter.
|
|
·
|
Average deposits grew $909 million, or 4.2 percent, to $22.8 billion. The deposit interest expense rate improved 6 basis points to 61 basis points.
|
|
·
|
Charge-off rate relative to the prior quarter:
|
|
|
–
|
Total Commercial Banking – 1.43 percent, an increase of 16 basis points
|
|
|
–
|
Commercial lending – 1.00 percent, a decrease of 11 basis points
|
|
·
|
Non-performing asset rate relative to the prior quarter:
|
|
|
–
|
Total Commercial Banking – 1.80 percent, a decline of 14 basis points
|
|
|
–
|
Commercial lending – 1.76 percent, a decline of 18 basis points
|
Capital One – Fourth Quarter 2010 Results
Page 5
Consumer Banking Highlights
For more lending information and statistics on the segment results, please refer to the Financial Supplement.
|
·
|
Revenues were stable in the fourth quarter at $1.1 billion, while non-interest expenses increased $13 million during the quarter, primarily due to higher marketing.
|
|
·
|
Provision expense increased $75 million relative to the prior quarter as a result of increased charge-offs in the quarter and a modest increase in allowance in Home Loan.
|
|
·
|
Net charge-off rates relative to the prior quarter:
|
|
|
–
|
Auto – 2.65 percent, a decrease of 6 basis points
|
|
|
–
|
Home Loan – 0.89 percent, an increase of 48 basis points
|
|
|
–
|
Retail banking – 2.40 percent, an increase of 20 basis points
|
|
·
|
Period-end loans relative to the prior quarter:
|
|
|
–
|
Auto – modest growth of $224 million, or 1.3 percent, to $17.9 billion. Third and fourth quarter 2010 originations equate to an annual “run rate” of approximately $9 billion.
|
|
|
–
|
Home Loan – Home loans continued to reflect expected run-off in the portfolio with a decline of $660 million, or 5.2 percent, to $12.1 billion.
|
|
|
–
|
Retail banking – declined $178 million, or 3.9 percent, to $4.4 billion.
|
|
·
|
Deposits in Consumer Banking showed strong growth in the quarter, with average deposits increasing $3.6 billion, or 4.6 percent, to $81.8 billion and ending the year at $83 billion.
|
Tier 1 common equity ratio and related ratios, as used throughout this release, are non-GAAP financial measures. For additional information, see Table 1 in the Financial Supplement.
Capital One – Fourth Quarter 2010 Results
Page 6
Forward looking statements
The company cautions that its current expectations in this release dated January 20, 2011, 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 (including the impact of the Dodd-Frank Act and the regulations to be promulgated thereunder), 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 and report on Form 10-Q for the quarters ended March 31, 2010, and June 30, 2010, and September 30, 2010.
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 $122.2 billion in deposits and $197.5 billion in total assets outstanding as of December 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.
###
NOTE:
Fourth 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 the earnings conference call is accessible through the same link.