MCLEAN, Va., Oct 20, 2011 /PRNewswire/ --
- Estimated Tier 1 Common Equity Ratio of approximately 10.0
percent at September 30, 2011, up 60
basis points from 9.4 percent at June 30,
2011
- End of period loan balances up $1.0
billion to $130.0 billion
- Net Interest Margin expanded 19 basis points to 7.4 percent
compared to second quarter 2011
- Revenue Margin 9.4 percent, up 18 basis points compared to
second quarter 2011
- Charge-off Rate of 2.52 percent, down 39 basis points compared
to second quarter 2011
Capital One Financial Corporation (NYSE: COF) today announced
net income for the third quarter of 2011 of $813 million, or $1.77 per diluted common share, compared with net
income of $911 million, or
$1.97 per diluted common share, for
the second quarter of 2011, and net income of $803 million, or $1.76 per diluted common share, for the third
quarter of 2010.
"Our strong third quarter results demonstrate that we remain
well-positioned to win in the marketplace and deliver shareholder
value, " said Richard D. Fairbank,
Capital One's Chairman and Chief Executive Officer. "We expect that
the acquisitions of ING Direct and the HSBC US Card Business will
deliver attractive financial results in the near-term, and put us
in an even stronger position to enhance and sustain the value we
can deliver to our customers, our communities and our
shareholders."
All comparisons in the following paragraphs are for third
quarter 2011 compared to second quarter 2011 unless otherwise
noted.
Loan and Deposit Balances
Period-end loan balances increased $987
million to $130.0 billion
driven by growth in Auto Finance and Commercial Banking.
Excluding the expected decline in loan balances in the
company's run-off portfolios, loan balances increased $2.0 billion.
Period-end total deposits increased $2.2
billion to $128.3 billion,
driven by growth in branch and direct deposits.
Revenues
Total revenue in the third quarter of 2011 was $4.2 billion, up $161
million, or 4.0 percent. Net interest income drove the
majority of the increase in revenue, increasing $147 million to $3.3 billion. Approximately
half of this growth resulted from a decline in the level of revenue
suppression in the Credit Card segment. This lower level of
suppression was driven by an increase in the estimated
collectability of billed finance charges and fees on existing
credit card balances.
In addition, there were two largely offsetting revenue items
related to the company's balance sheet repositioning ahead of the
pending acquisition of ING Direct. The company recognized
$239 million of gains from the sale
of $6.4 billion of securities, which
were predominately agency mortgage backed securities. Additionally,
at the end of the quarter, the company recognized a $266 million mark-to-market loss on the
previously announced pay-fixed swap executed in early August 2011.
Margins
Net interest margin expanded 19 basis points in the quarter to
7.39 percent as average asset yield rose 13 basis points combined
with a decline of six basis points in the cost of funds. The
decline was a result of a decline in deposit rates and a reduction
in wholesale funding.
Revenue margin for the third quarter was 9.35 percent, up 18
basis points. The expansion of revenue margin resulted from
the same factors that drove the increase in revenues in the
quarter.
Non-Interest Expense
Operating expense for the third quarter increased $59 million primarily due to higher staffing
costs as well as accruals against an earn-out agreement related to
a previous acquisition. Marketing expense decreased
$17 million, mostly driven by the
timing of several large marketing programs which impacted expenses
in the second quarter. In line with usual historical
patterns, the company expects marketing expense to rise in the
fourth quarter.
Pre-Provision Income (before tax)
An increase in revenue in the quarter was partially offset by a
modest increase in non-interest expenses.
Provision Expense
As overall credit trends are stabilizing after almost two years
of rapidly declining charge-offs, quarterly credit metrics are
increasingly driven by seasonal patterns. Charge-offs
continued to fall in the quarter, but a significantly smaller
allowance release associated with stabilizing credit trends caused
provision expense to increase to $622
million. The charge-off rate improved 39 basis points
to 2.52 percent, while the coverage ratio of allowance to loans
came down by only 19 basis points to 3.29 percent.
Representation & Warranty
The company's reserve for representation and warranty claims was
$892 million as of September 30, 2011, up from $869 million as of June
30, 2011. The company added $72 million in
additional reserves and paid $49
million in claims. As a result of some generally increased
activity by investors in the non-GSE and non-insured securitization
category, the company now believes that the upper end of the
reasonably possible future losses from representation and warranty
claims beyond current accrual levels could be as high as
$1.5 billion. This estimate continues
to be subject to the significant uncertainty and numerous factors
described in the company's quarterly reports filed with the
Securities and Exchange Commission.
Net Income
Net income decreased $98 million
as higher pre-provision earnings were more than offset by higher
provision expense.
Capital Ratios
The company's estimated Tier 1 common equity ratio rose to 10.0
percent as of September 30, 2011, up
60 basis points from June 30, 2011.
The increase was driven by strong business performance as
well as the expected continued decline of deferred tax assets
disallowed in the regulatory capital calculation. "We continue to
be comfortable with our strong capital levels and our underlying
trajectory," said Gary L. Perlin,
Capital One's Chief Financial Officer. "Using known Basel III
definitions, our Tier 1 common equity ratio would have been
approximately 10 basis points higher in the quarter, or 10.1
percent."
Tier 1 common equity ratio, as used throughout this release, is
a non-GAAP financial measure. For additional information, see Table
12 in the Financial Supplement.
Credit Card Highlights
For more lending information and statistics on the segment
results, please refer to the Financial Supplement.
The Domestic Card business delivered another quarter of strong
returns. The net charge-off rate improved 82 basis points in
the quarter with approximately half of the improvement resulting
from expected seasonal patterns and the remaining improvement
driven by underlying credit performance. The company continues to
see declining loss severity and strong credit performance in its
newer vintages and portfolio seasoning as older vintages
mature.
Domestic Card loan balances declined modestly in the quarter,
but excluding the Installment Loan run-off, revolving credit card
loans grew $276 million in the
quarter, up approximately 0.5 percent sequentially, and up about
4.4 percent compared to the third quarter of 2010.
Purchase volume increased in the quarter to $34.9 billion, reflecting third quarter
seasonality and continued strong growth in purchase volume across
the company's Domestic Card business. Purchase volume grew 17
percent from the third quarter of 2010, excluding the impact of the
Kohl's portfolio.
Commercial Banking Highlights
For more lending information and statistics on the segment
results, please refer to the Financial Supplement.
The Commercial Banking segment delivered its third consecutive
quarter of strong profitability and continued loan growth.
Commercial deposits and commercial customer relationships
continued to grow in the quarter.
Ending loans were up 2.9 percent from the prior quarter and up
8.7 percent from the third quarter of 2010. Growth in loan
commitments, an early indicator of future loan growth, was even
stronger. Commercial & Industrial and Commercial Real
Estate businesses experienced the strongest growth in both loans
and loan commitments.
Commercial Banking credit metrics have stabilized and improved
modestly over the last five quarters. At a rate of 0.37 percent,
net charge-offs for Commercial Banking are at their lowest levels
since the third quarter of 2008.
Consumer Banking Highlights
For more lending information and statistics on the segment
results, please refer to the Financial Supplement.
In Consumer Banking, loan balances were up modestly as strong
growth in auto loans was partially offset by expected runoff of the
Home Loan portfolio. Auto Finance originations were
$3.4 billion, up 17 percent from the
second quarter and 40 percent from the third quarter of 2010.
In the Auto Finance business, charge-off and delinquency rates
increased in the quarter, consistent with expected seasonal
patterns. Year-over-year, charge-offs and delinquencies
improved 102 basis points and 108 basis points, respectively.
Auto Finance credit performance remains strong, with
originations continuing to perform better than originations from
2007 and 2008. In fact, Auto Finance credit metrics are near
their all-time lows, driven by the actions the company took to
retrench and reposition the business, tight underwriting and loss
mitigation actions through the recession, and continued strength in
used car auction prices.
The charge-off rate improved in the Home Loan portfolio, while
the delinquency rate increased modestly.
Consumer Banking deposits were up $1.3
billion in the third quarter as the Consumer Banking segment
continued to grow retail banking customer relationships.
Forward-looking statements
The company cautions that its current expectations in this
release dated October 20, 2011, and
the company's plans, objectives, expectations and intentions, are
forward-looking statements which speak only as of the date hereof.
The company does not undertake any obligation to update or revise
any of the information contained herein whether as a result of new
information, future events or otherwise.
Certain statements in this release are forward-looking
statements, including those that discuss, among other things,
strategies, goals, outlook or other non-historical matters;
projections, revenues, income, returns, accruals for claims in
litigation and for other claims against the company, earnings per
share or other financial measures for the company; future financial
and operating results; the company's plans, objectives,
expectations and intentions; the projected impact and benefits of
the pending transactions involving the company, HSBC and ING Direct
(the "transactions"); and the assumptions that underlie these
matters. To the extent that any such information is
forward-looking, it is intended to fit within the safe harbor for
forward-looking information provided by the Private Securities
Litigation Reform Act of 1995. Numerous factors could cause the
company's actual results to differ materially from those described
in such forward-looking statements, including, among other
things: general economic and business conditions in the U.S.,
the U.K., Canada or the company's
local markets, including conditions affecting employment levels,
interest rates, consumer income and confidence, spending and
savings that may affect consumer bankruptcies, defaults,
charge-offs and deposit activity; an increase or decrease in credit
losses (including increases due to a worsening of general economic
conditions in the credit environment); the possibility that
regulatory and other approvals and conditions to either of the
transactions are not received or satisfied on a timely basis or at
all; the possibility that modifications to the terms of either of
the transactions may be required in order to obtain or satisfy such
approvals or conditions; the possibility that the company will not
receive third-party consents necessary to fully realize the
anticipated benefits of the transactions; the possibility that the
company may not fully realize the projected cost savings and other
projected benefits of the transactions; changes in the anticipated
timing for closing either of the transactions; difficulties and
delays in integrating the assets and businesses acquired in the
transactions; business disruption during the pendency of or
following the transactions; the inability to sustain revenue and
earnings growth; diversion of management time on issues related to
the transactions; reputational risks and the reaction of customers
and counterparties to the transactions; disruptions relating to the
transactions negatively impacting the company's ability to maintain
relationships with customers, employees and suppliers; changes in
asset quality and credit risk as a result of the transactions;
financial, legal, regulatory, tax or accounting changes or actions,
including the impact of the Dodd-Frank Wall Street Reform and
Consumer Protection Act and the regulations promulgated thereunder;
developments, changes or actions relating to any litigation
matter involving the company; increases or decreases in interest
rates; the company's ability to access the capital markets at
attractive rates and terms to capitalize and fund its operations
and future growth; the success of the company's marketing efforts
in attracting and retaining customers; increases or decreases in
the company's aggregate loan balances or the number of customers
and the growth rate and composition thereof, including increases or
decreases resulting from factors such as shifting product mix,
amount of actual marketing expenses the company incurs and
attrition of loan balances; the level of future repurchase or
indemnification requests the company may receive, the actual future
performance of mortgage loans relating to such requests, the
success rates of claimants against the company, any developments in
litigation and the actual recoveries the company may make on any
collateral relating to claims against the company; the amount and
rate of deposit growth; changes in the reputation of or
expectations regarding the financial services industry or the
company with respect to practices, products or financial condition;
any significant disruption in the company's operations or
technology platform; the company's ability to maintain a compliance
infrastructure suitable for its size and complexity; the company's
ability to control costs; the amount of, and rate of growth in, the
company's expenses as its business develops or changes or as it
expands into new market areas; the company's ability to execute on
its strategic and operational plans; any significant disruption of,
or loss of public confidence in, the United States Mail service
affecting the company's response rates and consumer payments; the
company's ability to recruit and retain experienced personnel to
assist in the management and operations of new products and
services; changes in the labor and employment markets; fraud or
misconduct by the company's customers, employees or business
partners; competition from providers of products and services that
compete with the company's businesses; and other risk factors set
forth from time to time in reports that the company files with the
Securities and Exchange Commission (the "SEC"), including, but not
limited to, the Annual Report on Form 10-K for the year ended
December 31, 2010, and Exhibit 99.5
to the Current Report on Form 8-K filed on July 13, 2011.
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 $128.3
billion in deposits and $200.1
billion in total assets outstanding as of September 30, 2011. 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.
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Exhibit
99.2
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Capital One
Financial Corporation
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Financial
Supplement
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Third
Quarter 2011(1)
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Table of
Contents
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Page
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Capital One Financial
Consolidated
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Table 1:
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Financial & Statistical
Summary — Consolidated
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1
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Table 2:
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Notes to Consolidated Financial
& Statistical Summary (Table 1)
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2
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Table 3:
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Consolidated Statements of
Income
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3
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Table 4:
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Consolidated Balance
Sheets
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4
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Table 5:
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Average Balances, Net Interest
Income and Net Interest Margin
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5
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Table 6:
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Loan Information and Performance
Statistics
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6
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Business Segment
Detail
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Table 7:
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Financial & Statistical
Summary — Credit Card Business
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7
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Table 8:
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Financial & Statistical
Summary — Consumer Banking Business
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8
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Table 9:
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Financial & Statistical
Summary — Commercial Banking Business
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9
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Table 10:
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Financial & Statistical
Summary — Other and Total
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10
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Table 11:
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Notes to Loan and Business
Segment Disclosures (Tables 6 — 10)
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11
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Other
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Table 12:
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Reconciliation of Non-GAAP
Measures and Calculation of Regulatory Capital
Measures
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12
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(1)
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The information contained in
this Financial Supplement is preliminary and based on data
available at the time of the earnings presentation, and investors
should refer to our Quarterly Report on Form 10-Q once it is filed
with the Securities and Exchange Commission.
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CAPITAL ONE FINANCIAL
CORPORATION (COF)
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Table 1: Financial &
Statistical Summary—Consolidated
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2011
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2011
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2011
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(Dollars in millions, except per
share data and as noted) (unaudited)
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Q3
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Q2
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Q1
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Earnings
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Net interest income
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$ 3,283
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$ 3,136
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$ 3,140
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Non-interest income
(1)(2)
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871
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857
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942
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Total revenue (3)
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$ 4,154
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$ 3,993
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$ 4,082
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Provision for loan and lease
losses
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622
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343
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534
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Marketing expenses
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312
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329
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276
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Operating expenses
(4)
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1,985
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1,926
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1,886
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Income from continuing
operations before income taxes
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$ 1,235
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$ 1,395
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$ 1,386
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Income tax provision
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370
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450
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354
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Income from continuing
operations, net of tax
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865
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945
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1,032
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Loss from discontinued
operations, net of tax (2)
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(52)
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(34)
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(16)
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Net income
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$
813
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$
911
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$ 1,016
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Common Share
Statistics
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Basic EPS:
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Income from continuing
operations, net of tax
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$
1.90
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$
2.07
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$
2.27
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Loss from discontinued
operations, net of tax
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(0.12)
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(0.07)
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(0.03)
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Net income per common
share
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$
1.78
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$
2.00
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$
2.24
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Diluted EPS:
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Income from continuing
operations, net of tax
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$
1.88
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$
2.04
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$
2.24
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Loss from discontinued
operations, net of tax
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(0.11)
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(0.07)
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(0.03)
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Net income per common
share
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$
1.77
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$
1.97
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$
2.21
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Weighted average common shares
outstanding (in millions):
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Basic EPS
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456.0
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455.6
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454.1
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Diluted EPS
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460.4
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462.2
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460.3
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Common shares outstanding
(period end)
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456.1
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455.8
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455.2
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Dividends per common
share
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$
0.05
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$
0.05
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$
0.05
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Tangible book value per common
share (period end) (5)
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33.82
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32.20
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29.70
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Stock price per common share
(period end)
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39.63
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51.67
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51.96
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Total market capitalization
(period end)
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18,075
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23,551
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23,652
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Balance Sheet (Period
End)
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Loans held for investment
(6)
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$ 129,952
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$ 128,965
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$ 124,092
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Interest-earning
assets
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174,308
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174,302
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172,849
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Total assets
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200,148
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199,753
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199,300
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Tangible assets (7)
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185,891
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185,715
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184,928
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Interest-bearing
deposits
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110,777
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109,278
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109,097
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Total deposits
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128,318
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126,117
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125,446
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Borrowings
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34,315
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37,735
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39,797
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Stockholders' equity
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29,378
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28,681
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27,550
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Tangible common equity (TCE)
(8)
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15,425
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14,675
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13,520
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Balance Sheet (Quarterly Average
Balances)
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Average loans held for
investment (6)
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$ 129,043
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$ 127,916
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$ 125,077
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Average interest-earning
assets
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177,710
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174,143
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173,540
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Average total assets
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201,611
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199,229
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198,075
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Average interest-bearing
deposits
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110,750
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109,251
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108,633
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Average total
deposits
|
|
128,268
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125,834
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|
124,158
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Average borrowings
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37,366
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39,451
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|
40,538
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Average stockholders'
equity
|
|
29,316
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|
28,255
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|
27,009
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Performance
Metrics
|
|
|
|
|
|
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Net interest income growth
(quarter over quarter)
|
|
5
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%
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(0)
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%
|
4
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%
|
|
Non-interest income growth
(quarter over quarter)
|
|
2
|
|
(9)
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0
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Revenue growth (quarter over
quarter)
|
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4
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(2)
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3
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Revenue margin (9)
|
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9.35
|
|
9.17
|
|
9.41
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Net interest margin
10)
|
|
7.39
|
|
7.20
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|
7.24
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Return on average assets
(11)
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1.72
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|
1.90
|
|
2.08
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Return on average equity
(12)
|
|
11.80
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|
13.38
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|
15.28
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Return on average tangible
common equity (13)
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22.58
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26.57
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|
31.73
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Non-interest expense as a % of
average loans held for investment (14)
|
|
7.12
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|
7.05
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|
6.91
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Efficiency ratio (15)
|
|
55.30
|
|
56.47
|
|
52.96
|
|
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Effective income tax
rate
|
|
30.0
|
|
32.3
|
|
25.5
|
|
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Full-time equivalent employees
(in thousands)
|
|
29.5
|
|
28.2
|
|
27.9
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Metrics
(16)
|
|
|
|
|
|
|
|
|
Allowance for loan and lease
losses
|
|
$ 4,280
|
|
$ 4,488
|
|
$ 5,067
|
|
|
Allowance as a % of loans held
for investment
|
|
3.29
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%
|
3.48
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%
|
4.08
|
%
|
|
Net charge-offs
|
|
$
812
|
|
$
931
|
|
$ 1,145
|
|
|
Net charge-off rate
(17)(18)
|
|
2.52
|
%
|
2.91
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%
|
3.66
|
%
|
|
30+ day performing delinquency
rate
|
|
3.13
|
|
2.90
|
|
3.07
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios
|
|
|
|
|
|
|
|
|
Tier 1 risk-based capital ratio
(19)
|
|
12.4
|
%
|
11.8
|
%
|
10.9
|
%
|
|
Tier 1 common equity ratio
(20)
|
|
10.0
|
|
9.4
|
|
8.4
|
|
|
Total risk-based capital ratio
(21)
|
|
15.4
|
|
15.0
|
|
14.2
|
|
|
Tangible common equity (TCE)
ratio (22)
|
|
8.3
|
|
7.9
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 2: Notes to
Consolidated Financial & Statistical Summary (Table
1)
|
|
|
|
(1)
|
Includes the impact from the
change in fair value of retained interests, including interest-only
strips, which totaled $12 million in Q3 2011, $16 million in Q2
2011, and $7 million in Q1 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
The mortgage representation and
warranty reserve increased to $892 million as of September 30,
2011, from $869 million as of June 30, 2011. We recorded a
provision for repurchase losses of $72 million in Q3 2011, $37
million in Q2 2011, and $44 million in Q1 2011. The majority of the
provision for repurchase losses is included in discontinued
operations, with the remaining portion included in non-interest
income.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
The estimated uncollectible
amount of billed finance charges and fees excluded from revenue
totaled $24 million in Q3 2011, $112 million in Q2 2011, and $105
million in Q1 2011. In the third quarter of 2011, we made a change
to the way we estimate recoveries in determining the uncollectible
amount of finance charges and fees, which significantly reduced the
uncollectible amount of billed finance charges and fees excluded
from revenue in Q3 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Includes core deposit intangible
amortization expense of $42 million in Q3 2011, $44 million in Q2
2011, and $45 million in Q1 2011 and integration costs of $1
million in Q3 2011, $0 million in Q2 2011, and $2 million in Q1
2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Tangible book value per common
share is a non-GAAP measure calculated based on tangible common
equity divided by common shares outstanding. See "Table 12:
Reconciliation of Non-GAAP Measures and Calculation of Regulatory
Capital Measures" for the calculation of tangible common
equity.
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Amounts for Q3 2011 and Q2 2011
reflect the impact of the April 1, 2011 acquisition of the existing
private-label credit card loan portfolio of Kohl's, which had an
outstanding principal and interest balance of approximately $3.7
billion at acquisition.
|
|
|
|
|
(7)
|
Tangible assets is a non-GAAP
measure consisting of total assets less assets from discontinued
operations and intangible assets. See "Table 12: Reconciliation of
Non-GAAP Measures and Calculation of Regulatory Capital Measures"
for the calculation of this measure.
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
Tangible common equity is a
non-GAAP measure consisting of total stockholders' equity less
intangible assets. See "Table 12: Reconciliation of Non-GAAP
Measures and Calculation of Regulatory Capital Measures" for the
calculation of this measure.
|
|
|
|
|
|
|
|
|
|
|
|
|
(9)
|
Calculated based on annualized
total revenue for the period divided by average interest-earning
assets for the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
(10)
|
Calculated based on annualized
net interest income for the period divided by average
interest-earning assets for the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
(11)
|
Calculated based on annualized
income from continuing operations, net of tax, for the period
divided by average total assets for the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
(12)
|
Calculated based on annualized
income from continuing operations, net of tax, for the period
divided by average stockholders' equity for the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
(13)
|
Calculated based on annualized
income from continuing operations, net of tax, for the period
divided by average tangible common equity for the
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
(14)
|
Calculated based on annualized
non-interest expense for the period divided by average loans held
for investment for the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
(15)
|
Calculated based on non-interest
expense for the period divided by total revenue for the
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
(16)
|
Purchased credit impaired
("PCI") loans acquired as part of the Chevy Chase Bank ("CCB")
acquisition are included in the denominator used in calculating the
credit quality metrics presented in Table 1. These metrics
excluding the impact of loans acquired from CCB from the
denominator are presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
(Dollars in
millions) (unaudited)
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
|
CCB period-end acquired
loan portfolio
|
|
$ 4,873
|
|
$
5,181
|
|
$
5,351
|
|
|
|
CCB average acquired loan
portfolio
|
|
4,998
|
|
5,112
|
|
5,305
|
|
|
|
Allowance as a % of loans
held for investment, excluding CCB loans
|
|
3.42
|
%
|
3.63
|
%
|
4.27
|
%
|
|
|
Net charge-off rate,
excluding CCB loans
|
|
2.62
|
|
3.03
|
|
3.82
|
|
|
|
30+ day performing
delinquency rate, excluding CCB loans
|
|
3.32
|
|
3.08
|
|
3.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17)
|
In accordance with our
loss-sharing agreement with Kohl's, charge-offs for the portfolio
are reported net of any reimbursement of credit losses from Kohl's,
which has the impact of lowering the overall charge-off
rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
(18)
|
Calculated based on annualized
net charge-offs for the period divided by average loans held for
investment for the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
(19)
|
Tier 1 risk-based capital ratio
is a regulatory capital measure calculated based on Tier 1 capital
divided by risk-weighted assets. See "Table 12: Reconciliation of
Non-GAAP Measures and Calculation of Regulatory Capital Measures"
for the calculation of this ratio.
|
|
|
|
|
|
|
|
|
|
|
|
|
(20)
|
Tier 1 common equity ratio is a
non-GAAP measure calculated based on Tier 1 common equity divided
by risk-weighted assets. See "Table 12: Reconciliation of Non-GAAP
Measures and Calculation of Regulatory Capital Measures" for the
calculation of this ratio and non-GAAP reconciliation.
|
|
.
|
|
|
|
|
|
|
|
|
|
|
(21)
|
Total risk-based capital ratio
is a regulatory capital measure calculated based on total
risk-based capital divided by risk-weighted assets. See "Table 12:
Reconciliation of Non-GAAP Measures and Calculation of Regulatory
Capital Measures" for the calculation of this ratio.
|
|
|
|
|
|
|
|
|
|
|
|
|
(22)
|
Tangible common equity ratio
("TCE ratio") is a non-GAAP measure calculated based on tangible
common equity divided by tangible assets. See "Table 12:
Reconciliation of Non-GAAP Measures and Calculation of Regulatory
Capital Measures" for the calculation of this ratio and non-GAAP
reconciliation.
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 3: Consolidated
Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
(Dollars in millions, except per
share data)
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
September
30,
|
|
September
30,
|
|
(unaudited)
|
|
2011
|
|
2011
|
|
2010
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment,
including past-due fees
|
|
$
3,550
|
|
$
3,367
|
|
$
3,447
|
|
|
|
|
$
10,334
|
|
$
10,582
|
|
Investment securities
|
|
264
|
|
313
|
|
347
|
|
|
|
|
893
|
|
1,037
|
|
Cash equivalents and
other
|
|
21
|
|
19
|
|
21
|
|
|
|
|
59
|
|
60
|
|
|
Total interest income
|
|
3,835
|
|
3,699
|
|
3,815
|
|
|
|
|
11,286
|
|
11,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
294
|
|
307
|
|
358
|
|
|
|
|
923
|
|
1,125
|
|
Securitized debt
obligations
|
|
89
|
|
113
|
|
191
|
|
|
|
|
342
|
|
644
|
|
Senior and subordinated
notes
|
|
84
|
|
63
|
|
72
|
|
|
|
|
211
|
|
211
|
|
Other borrowings
|
|
85
|
|
80
|
|
85
|
|
|
|
|
251
|
|
265
|
|
|
Total interest
expense
|
|
552
|
|
563
|
|
706
|
|
|
|
|
1,727
|
|
2,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
3,283
|
|
3,136
|
|
3,109
|
|
|
|
|
9,559
|
|
9,434
|
|
Provision for loan and lease
losses
|
|
622
|
|
343
|
|
867
|
|
|
|
|
1,499
|
|
3,069
|
|
Net interest income after
provision for loan and lease losses
|
|
2,661
|
|
2,793
|
|
2,242
|
|
|
|
|
8,060
|
|
6,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing and
securitizations
|
|
12
|
|
12
|
|
13
|
|
|
|
|
35
|
|
(3)
|
|
Service charges and other
customer-related fees
|
|
542
|
|
460
|
|
496
|
|
|
|
|
1,527
|
|
1,577
|
|
Interchange
|
|
321
|
|
331
|
|
346
|
|
|
|
|
972
|
|
991
|
|
Net other-than-temporary
impairment losses recognized in earnings
|
|
(6)
|
|
(6)
|
|
(5)
|
|
|
|
|
(15)
|
|
(62)
|
|
Other
|
|
|
2
|
|
60
|
|
57
|
|
|
|
|
151
|
|
272
|
|
|
Total non-interest
income
|
|
871
|
|
857
|
|
907
|
|
|
|
|
2,670
|
|
2,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and associate
benefits
|
|
750
|
|
715
|
|
641
|
|
|
|
|
2,206
|
|
1,937
|
|
Marketing
|
|
312
|
|
329
|
|
250
|
|
|
|
|
917
|
|
650
|
|
Communications and data
processing
|
|
178
|
|
162
|
|
178
|
|
|
|
|
504
|
|
512
|
|
Supplies and
equipment
|
|
143
|
|
124
|
|
129
|
|
|
|
|
402
|
|
381
|
|
Occupancy
|
|
122
|
|
118
|
|
135
|
|
|
|
|
359
|
|
371
|
|
Other
|
|
|
792
|
|
807
|
|
663
|
|
|
|
|
2,326
|
|
1,992
|
|
|
Total non-interest
expense
|
|
2,297
|
|
2,255
|
|
1,996
|
|
|
|
|
6,714
|
|
5,843
|
|
Income from continuing
operations before income taxes
|
|
1,235
|
|
1,395
|
|
1,153
|
|
|
|
|
4,016
|
|
3,297
|
|
Income tax provision
|
|
370
|
|
450
|
|
335
|
|
|
|
|
1,174
|
|
948
|
|
Income from continuing
operations, net of tax
|
|
865
|
|
945
|
|
818
|
|
|
|
|
2,842
|
|
2,349
|
|
Loss from discontinued
operations, net of tax
|
|
(52)
|
|
(34)
|
|
(15)
|
|
|
|
|
(102)
|
|
(303)
|
|
Net income
|
|
$
813
|
|
$
911
|
|
$
803
|
|
|
|
|
$
2,740
|
|
$
2,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
1.90
|
|
$
2.07
|
|
$
1.81
|
|
|
|
|
$
6.24
|
|
$
5.19
|
|
Loss from discontinued
operations
|
|
(0.12)
|
|
(0.07)
|
|
(0.03)
|
|
|
|
|
(0.22)
|
|
(0.66)
|
|
Net income per common
share
|
|
$
1.78
|
|
$
2.00
|
|
$
1.78
|
|
|
|
|
$
6.02
|
|
$
4.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
1.88
|
|
$
2.04
|
|
$
1.79
|
|
|
|
|
$
6.17
|
|
$
5.15
|
|
Loss from discontinued
operations
|
|
(0.11)
|
|
(0.07)
|
|
(0.03)
|
|
|
|
|
(0.22)
|
|
(0.66)
|
|
Net income per common
share
|
|
$
1.77
|
|
$
1.97
|
|
$
1.76
|
|
|
|
|
$
5.95
|
|
$
4.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
456.0
|
|
455.6
|
|
452.5
|
|
|
|
|
455.2
|
|
451.9
|
|
Diluted EPS
|
|
460.4
|
|
462.2
|
|
456.6
|
|
|
|
|
461.0
|
|
456.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
|
$
0.05
|
|
$
0.05
|
|
$
0.05
|
|
|
|
|
$
0.15
|
|
$
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 4: Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
(Dollars in
millions)(unaudited)
|
|
2011
|
|
2010
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
1,794
|
|
$
2,067
|
|
$
2,015
|
|
Interest-bearing deposits with
banks
|
|
3,238
|
|
2,776
|
|
2,391
|
|
Federal funds sold and
repurchase agreements
|
|
1,326
|
|
406
|
|
536
|
|
|
Cash and cash
equivalents
|
|
6,358
|
|
5,249
|
|
4,942
|
|
Restricted cash for
securitization investors
|
|
984
|
|
1,602
|
|
2,686
|
|
Securities available for sale,
at fair value
|
|
38,400
|
|
41,537
|
|
39,926
|
|
Loans held for
investment:
|
|
|
|
|
|
|
|
|
Unsecuritized loans held for
investment, at amortized cost
|
|
83,010
|
|
71,921
|
|
74,719
|
|
|
Restricted loans for
securitization investors
|
|
46,942
|
|
54,026
|
|
51,615
|
|
|
Total loans held for
investment
|
|
129,952
|
|
125,947
|
|
126,334
|
|
|
Less: Allowance for
loan and lease losses
|
|
(4,280)
|
|
(5,628)
|
|
(6,175)
|
|
|
Net loans held for
investment
|
|
125,672
|
|
120,319
|
|
120,159
|
|
Loans held for sale, at
lower-of-cost-or-fair-value
|
|
312
|
|
228
|
|
197
|
|
Accounts receivable from
securitizations
|
|
101
|
|
118
|
|
127
|
|
Premises and equipment,
net
|
|
2,785
|
|
2,749
|
|
2,722
|
|
Interest receivable
|
|
958
|
|
1,070
|
|
1,025
|
|
Goodwill
|
|
13,593
|
|
13,591
|
|
13,593
|
|
Other
|
|
10,985
|
|
11,040
|
|
11,556
|
|
|
Total assets
|
|
$
200,148
|
|
$
197,503
|
|
$
196,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Interest payable
|
|
$
401
|
|
$
488
|
|
$
464
|
|
Customer deposits:
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
|
17,541
|
|
15,048
|
|
14,471
|
|
|
Interest-bearing
deposits
|
|
110,777
|
|
107,162
|
|
104,741
|
|
|
Total customer
deposits
|
|
128,318
|
|
122,210
|
|
119,212
|
|
Securitized debt
obligations
|
|
17,120
|
|
26,915
|
|
29,504
|
|
Other debt:
|
|
|
|
|
|
|
|
|
Federal funds purchased and
securities loaned or sold under agreements to repurchase
|
|
1,441
|
|
1,517
|
|
947
|
|
|
Senior and subordinated
notes
|
|
11,051
|
|
8,650
|
|
9,083
|
|
|
Other borrowings
|
|
4,703
|
|
4,714
|
|
4,799
|
|
|
Total other debt
|
|
17,195
|
|
14,881
|
|
14,829
|
|
Other liabilities
|
|
7,736
|
|
6,468
|
|
6,863
|
|
|
Total liabilities
|
|
170,770
|
|
170,962
|
|
170,872
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock
|
|
5
|
|
5
|
|
5
|
|
Paid-in capital, net
|
|
19,234
|
|
19,084
|
|
19,059
|
|
Retained earnings and
accumulated other comprehensive income
|
|
13,382
|
|
10,654
|
|
10,199
|
|
Less: Treasury stock, at
cost
|
|
(3,243)
|
|
(3,202)
|
|
(3,202)
|
|
|
Total stockholders'
equity
|
|
29,378
|
|
26,541
|
|
26,061
|
|
|
Total liabilities and
stockholders' equity
|
|
$
200,148
|
|
$
197,503
|
|
$
196,933
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 5: Average Balances,
Net Interest Income and Net Interest Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended 09/30/11
|
|
Quarter
Ended 06/30/11
|
|
Quarter
Ended 09/30/10
|
|
|
(Dollars in
millions)
|
|
Average
|
|
Interest
Income/
|
|
Yield/
|
|
Average
|
|
Interest
Income/
|
|
Yield/
|
|
Average
|
|
Interest
Income/
|
|
Yield/
|
|
|
(unaudited)
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment
|
|
$ 129,043
|
|
$ 3,550
|
|
11.00
|
%
|
$ 127,916
|
|
$ 3,367
|
|
10.53
|
%
|
$ 126,307
|
|
$
3,447
|
|
10.92
|
%
|
|
|
Investment securities
|
|
37,189
|
|
264
|
|
2.84
|
|
40,381
|
|
313
|
|
3.10
|
|
39,872
|
|
347
|
|
3.48
|
|
|
|
Cash equivalents and
other
|
|
11,478
|
|
21
|
|
0.73
|
|
5,846
|
|
19
|
|
1.30
|
|
6,294
|
|
21
|
|
1.33
|
|
|
Total interest-earning
assets
|
|
$ 177,710
|
|
$ 3,835
|
|
8.63
|
%
|
$ 174,143
|
|
$ 3,699
|
|
8.50
|
%
|
$ 172,473
|
|
$
3,815
|
|
8.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts
|
|
$ 12,602
|
|
$
9
|
|
0.29
|
%
|
$ 13,186
|
|
$
9
|
|
0.27
|
%
|
$ 11,333
|
|
$
10
|
|
0.35
|
%
|
|
|
|
Money market deposit
accounts
|
|
47,483
|
|
100
|
|
0.84
|
|
45,527
|
|
99
|
|
0.87
|
|
43,260
|
|
104
|
|
0.96
|
|
|
|
|
Savings accounts
|
|
30,944
|
|
56
|
|
0.72
|
|
29,329
|
|
60
|
|
0.82
|
|
22,572
|
|
49
|
|
0.87
|
|
|
|
|
Other consumer time
deposits
|
|
13,530
|
|
84
|
|
2.48
|
|
14,330
|
|
91
|
|
2.54
|
|
18,726
|
|
133
|
|
2.84
|
|
|
|
|
Public fund CD's of $100,000 or
more
|
|
92
|
|
1
|
|
4.35
|
|
110
|
|
1
|
|
3.64
|
|
220
|
|
1
|
|
1.82
|
|
|
|
|
CD's of $100,000 or
more
|
|
5,407
|
|
43
|
|
3.18
|
|
5,867
|
|
46
|
|
3.14
|
|
7,256
|
|
59
|
|
3.25
|
|
|
|
|
Foreign time deposits
|
|
692
|
|
1
|
|
0.58
|
|
902
|
|
1
|
|
0.44
|
|
819
|
|
2
|
|
0.98
|
|
|
|
Total interest-bearing
deposits
|
|
$ 110,750
|
|
$
294
|
|
1.06
|
%
|
$ 109,251
|
|
$
307
|
|
1.12
|
%
|
$ 104,186
|
|
$
358
|
|
1.37
|
%
|
|
|
Securitized debt
obligations
|
|
18,478
|
|
89
|
|
1.93
|
|
22,191
|
|
113
|
|
2.04
|
|
30,750
|
|
191
|
|
2.48
|
|
|
|
Senior and subordinated
notes
|
|
10,519
|
|
84
|
|
3.19
|
|
8,093
|
|
63
|
|
3.11
|
|
8,677
|
|
72
|
|
3.32
|
|
|
|
Other borrowings
|
|
8,369
|
|
85
|
|
4.06
|
|
9,167
|
|
80
|
|
3.49
|
|
6,483
|
|
85
|
|
5.24
|
|
|
Total interest-bearing liabilities
|
|
$ 148,116
|
|
$
552
|
|
1.49
|
%
|
$ 148,702
|
|
$
563
|
|
1.51
|
%
|
$ 150,096
|
|
$
706
|
|
1.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread
|
|
|
|
$ 3,283
|
|
7.14
|
%
|
|
|
$ 3,136
|
|
6.99
|
%
|
|
|
$
3,109
|
|
6.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income to average
interest-earning assets
|
|
|
|
|
|
8.63
|
%
|
|
|
|
|
8.50
|
%
|
|
|
|
|
8.85
|
%
|
|
Interest expense to average
interest-earning assets
|
|
|
|
|
|
1.24
|
|
|
|
|
|
1.30
|
|
|
|
|
|
1.64
|
|
|
Net interest margin
|
|
|
|
|
|
7.39
|
%
|
|
|
|
|
7.20
|
%
|
|
|
|
|
7.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 6: Loan Information and
Performance Statistics(1)
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
|
(Dollars in
millions)(unaudited)
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
Period-end loans held for
investment
|
|
|
|
|
|
|
|
|
Credit card:
|
|
|
|
|
|
|
|
|
Domestic credit
card(2)
|
|
$ 53,820
|
|
$ 53,994
|
|
$ 50,570
|
|
|
International credit
card
|
|
8,210
|
|
8,711
|
|
8,735
|
|
|
Total credit
card
|
|
62,030
|
|
62,705
|
|
59,305
|
|
|
Consumer banking:
|
|
|
|
|
|
|
|
|
Automobile
|
|
20,422
|
|
19,223
|
|
18,342
|
|
|
Home loan
|
|
10,916
|
|
11,323
|
|
11,741
|
|
|
Retail banking
|
|
4,014
|
|
4,046
|
|
4,223
|
|
|
Total
consumer banking
|
|
35,352
|
|
34,592
|
|
34,306
|
|
|
Commercial banking:
|
|
|
|
|
|
|
|
|
Commercial and
multifamily real estate
|
|
14,389
|
|
14,035
|
|
13,543
|
|
|
Middle market
|
|
11,924
|
|
11,404
|
|
10,758
|
|
|
Specialty
lending
|
|
4,221
|
|
4,122
|
|
3,936
|
|
|
Total
commercial lending
|
|
30,534
|
|
29,561
|
|
28,237
|
|
|
Small-ticket commercial
real estate
|
|
1,571
|
|
1,642
|
|
1,780
|
|
|
Total
commercial banking
|
|
32,105
|
|
31,203
|
|
30,017
|
|
|
Other loans(3)
|
|
465
|
|
465
|
|
464
|
|
|
Total
|
|
$ 129,952
|
|
$ 128,965
|
|
$ 124,092
|
|
|
|
|
|
|
|
|
|
|
|
Average loans held for
investment
|
|
|
|
|
|
|
|
|
Credit card:
|
|
|
|
|
|
|
|
|
Domestic credit
card(2)
|
|
$ 53,668
|
|
$ 53,868
|
|
$ 51,889
|
|
|
International credit
card
|
|
8,703
|
|
8,823
|
|
8,697
|
|
|
Total credit
card
|
|
62,371
|
|
62,691
|
|
60,586
|
|
|
Consumer banking:
|
|
|
|
|
|
|
|
|
Automobile
|
|
19,757
|
|
18,753
|
|
18,025
|
|
|
Home loan
|
|
11,126
|
|
11,534
|
|
11,960
|
|
|
Retail banking
|
|
3,979
|
|
4,154
|
|
4,251
|
|
|
Total
consumer banking
|
|
34,862
|
|
34,441
|
|
34,236
|
|
|
Commercial banking:
|
|
|
|
|
|
|
|
|
Commercial and
multifamily real estate
|
|
14,021
|
|
13,597
|
|
13,345
|
|
|
Middle market
|
|
11,572
|
|
10,979
|
|
10,666
|
|
|
Specialty
lending
|
|
4,154
|
|
4,014
|
|
3,964
|
|
|
Total
commercial lending
|
|
29,747
|
|
28,590
|
|
27,975
|
|
|
Small-ticket commercial
real estate
|
|
1,598
|
|
1,726
|
|
1,818
|
|
|
Total
commercial banking
|
|
31,345
|
|
30,316
|
|
29,793
|
|
|
Other loans(3)
|
|
465
|
|
468
|
|
462
|
|
|
Total
|
|
$ 129,043
|
|
$ 127,916
|
|
$ 125,077
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-off
rates
|
|
|
|
|
|
|
|
|
Credit card:
|
|
|
|
|
|
|
|
|
Domestic credit
card(4)
|
|
3.92
|
%
|
4.74
|
%
|
6.20
|
%
|
|
International credit
card
|
|
6.15
|
|
7.02
|
|
5.74
|
|
|
Total credit
card
|
|
4.23
|
%
|
5.06
|
%
|
6.13
|
%
|
|
Consumer banking:
|
|
|
|
|
|
|
|
|
Automobile(5)
|
|
1.69
|
%
|
1.11
|
%
|
1.98
|
%
|
|
Home loan(6)
|
|
0.53
|
|
0.60
|
|
0.71
|
|
|
Retail
banking(6)
|
|
1.67
|
|
1.73
|
|
2.24
|
|
|
Total
consumer banking(6)
|
|
1.32
|
%
|
1.01
|
%
|
1.57
|
%
|
|
Commercial banking:
|
|
|
|
|
|
|
|
|
Commercial and
multifamily real estate(6)
|
|
0.12
|
%
|
0.39
|
%
|
0.56
|
%
|
|
Middle market
(6)
|
|
0.41
|
|
0.13
|
|
0.18
|
|
|
Specialty
lending
|
|
0.44
|
|
0.47
|
|
0.30
|
|
|
Total
commercial lending(6)
|
|
0.28
|
%
|
0.30
|
%
|
0.38
|
%
|
|
Small-ticket commercial
real estate
|
|
2.19
|
|
3.77
|
|
7.14
|
|
|
Total
commercial banking(6)
|
|
0.37
|
%
|
0.50
|
%
|
0.79
|
%
|
|
Other loans
|
|
6.39
|
%
|
10.57
|
%
|
19.91
|
%
|
|
Total
|
|
2.52
|
%
|
2.91
|
%
|
3.66
|
%
|
|
|
|
|
|
|
|
|
|
|
30+ day performing delinquency
rates
|
|
|
|
|
|
|
|
|
Credit card:
|
|
|
|
|
|
|
|
|
Domestic credit
card
|
|
3.65
|
%
|
3.33
|
%
|
3.59
|
%
|
|
International credit
card
|
|
5.35
|
|
5.30
|
|
5.55
|
|
|
Total credit
card
|
|
3.87
|
%
|
3.60
|
%
|
3.88
|
%
|
|
Consumer banking:
|
|
|
|
|
|
|
|
|
Automobile
|
|
6.34
|
%
|
6.09
|
%
|
5.79
|
%
|
|
Home loan(6)
|
|
0.78
|
|
0.70
|
|
0.61
|
|
|
Retail
banking(6)
|
|
0.89
|
|
0.76
|
|
0.93
|
|
|
Total
consumer banking(6)
|
|
4.01
|
%
|
3.70
|
%
|
3.42
|
%
|
|
|
|
|
|
|
|
|
|
|
Nonperforming asset rates(7)
(8)
|
|
|
|
|
|
|
|
|
Consumer banking:
|
|
|
|
|
|
|
|
|
Automobile
|
|
0.53
|
%
|
0.49
|
%
|
0.39
|
%
|
|
Home loan(6)
|
|
4.74
|
|
4.40
|
|
4.34
|
|
|
Retail
banking(6)
|
|
2.37
|
|
2.45
|
|
2.44
|
|
|
Total
consumer banking(6)
|
|
2.04
|
%
|
2.00
|
%
|
2.00
|
%
|
|
Commercial banking:
|
|
|
|
|
|
|
|
|
Commercial and
multifamily real estate(6)
|
|
2.16
|
%
|
2.35
|
%
|
2.63
|
%
|
|
Middle market
(6)
|
|
1.04
|
|
1.19
|
|
1.14
|
|
|
Specialty
lending
|
|
0.87
|
|
0.95
|
|
1.19
|
|
|
Total
commercial lending(6)
|
|
1.54
|
%
|
1.71
|
%
|
1.86
|
%
|
|
Small-ticket commercial
real estate
|
|
1.58
|
|
0.75
|
|
3.39
|
|
|
Total
commercial banking(6)
|
|
1.55
|
%
|
1.66
|
%
|
1.95
|
%
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 7: Financial &
Statistical Summary - Credit Card Business
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
|
(Dollars in millions)
(unaudited)
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
Credit Card
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$ 2,042
|
|
$ 1,890
|
|
$ 1,941
|
|
|
Non-interest
income
|
|
678
|
|
619
|
|
674
|
|
|
Total revenue
|
|
$ 2,720
|
|
$ 2,509
|
|
$ 2,615
|
|
|
Provision for loan and
lease losses
|
|
511
|
|
309
|
|
450
|
|
|
Non-interest
expense
|
|
1,188
|
|
1,238
|
|
1,178
|
|
|
Income from continuing
operations before taxes
|
|
1,021
|
|
962
|
|
987
|
|
|
Income tax
provision
|
|
358
|
|
344
|
|
344
|
|
|
Income from continuing
operations, net of tax
|
|
$
663
|
|
$
618
|
|
$
643
|
|
|
|
|
|
|
|
|
|
|
|
Selected metrics:
|
|
|
|
|
|
|
|
|
Period end loans held for
investment
|
|
$ 62,030
|
|
$ 62,705
|
|
$ 59,305
|
|
|
Average loans held for
investment
|
|
62,371
|
|
62,691
|
|
60,586
|
|
|
Average yield on loans
held for investment
|
|
14.84
|
%
|
13.83
|
%
|
14.68
|
%
|
|
Revenue margin
|
|
17.44
|
|
16.01
|
|
17.26
|
|
|
Net charge-off
rate
|
|
4.23
|
|
5.06
|
|
6.13
|
|
|
30+ day delinquency
rate(9)
|
|
3.87
|
|
3.60
|
|
3.88
|
|
|
Purchase
volume(10)
|
|
$ 34,918
|
|
$ 34,226
|
|
$ 27,797
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Card
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$ 1,753
|
|
$ 1,607
|
|
$ 1,651
|
|
|
Non-interest
income
|
|
588
|
|
584
|
|
583
|
|
|
Total revenue
|
|
$ 2,341
|
|
$ 2,191
|
|
$ 2,234
|
|
|
Provision for loan and
lease losses
|
|
381
|
|
187
|
|
230
|
|
|
Non-interest
expense
|
|
972
|
|
1,008
|
|
990
|
|
|
Income from continuing
operations before taxes
|
|
988
|
|
996
|
|
1,014
|
|
|
Income tax
provision
|
|
351
|
|
354
|
|
360
|
|
|
Income from continuing
operations, net of tax
|
|
$
637
|
|
$
642
|
|
$
654
|
|
|
|
|
|
|
|
|
|
|
|
Selected metrics:
|
|
|
|
|
|
|
|
|
Period end loans held for
investment
|
|
$ 53,820
|
|
$ 53,994
|
|
$ 50,570
|
|
|
Average loans held for
investment
|
|
53,668
|
|
53,868
|
|
51,889
|
|
|
Average yield on loans
held for investment
|
|
14.62
|
%
|
13.52
|
%
|
14.42
|
%
|
|
Revenue margin
|
|
17.45
|
|
16.27
|
|
17.22
|
|
|
Net charge-off
rate(4)
|
|
3.92
|
|
4.74
|
|
6.20
|
|
|
30+ day delinquency
rate(9)
|
|
3.65
|
|
3.33
|
|
3.59
|
|
|
Purchase
volume(10)
|
|
$ 31,686
|
|
$ 31,070
|
|
$ 25,024
|
|
|
|
|
|
|
|
|
|
|
|
International
Card
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
289
|
|
$
283
|
|
$
290
|
|
|
Non-interest
income
|
|
90
|
|
35
|
|
91
|
|
|
Total revenue
|
|
$
379
|
|
$
318
|
|
$
381
|
|
|
Provision for loan and
lease losses
|
|
130
|
|
122
|
|
220
|
|
|
Non-interest
expense
|
|
216
|
|
230
|
|
188
|
|
|
Income (loss) from
continuing operations before taxes
|
|
33
|
|
(34)
|
|
(27)
|
|
|
Income tax provision
(benefit)
|
|
7
|
|
(10)
|
|
(16)
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
26
|
|
$
(24)
|
|
$
(11)
|
|
|
|
|
|
|
|
|
|
|
|
Selected metrics:
|
|
|
|
|
|
|
|
|
Period end loans held for
investment
|
|
$ 8,210
|
|
$ 8,711
|
|
$ 8,735
|
|
|
Average loans held for
investment
|
|
8,703
|
|
8,823
|
|
8,697
|
|
|
Average yield on loans
held for investment
|
|
16.24
|
%
|
15.77
|
%
|
16.28
|
%
|
|
Revenue margin
|
|
17.42
|
|
14.42
|
|
17.52
|
|
|
Net charge-off
rate
|
|
6.15
|
|
7.02
|
|
5.74
|
|
|
30+ day delinquency
rate(9)
|
|
5.35
|
|
5.30
|
|
5.55
|
|
|
Purchase
volume(10)
|
|
$ 3,232
|
|
$ 3,156
|
|
$ 2,773
|
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 8: Financial &
Statistical Summary - Consumer Banking Business
|
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
|
(Dollars in millions)
(unaudited)
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
Consumer Banking
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$ 1,097
|
|
$ 1,051
|
|
$
983
|
|
|
|
Non-interest income
|
|
188
|
|
194
|
|
186
|
|
|
|
Total revenue
|
|
$ 1,285
|
|
$ 1,245
|
|
$ 1,169
|
|
|
|
Provision for loan and lease
losses
|
|
136
|
|
41
|
|
95
|
|
|
|
Non-interest expense
|
|
853
|
|
758
|
|
740
|
|
|
|
Income from continuing
operations before taxes
|
|
296
|
|
446
|
|
334
|
|
|
|
Income tax provision
|
|
106
|
|
159
|
|
119
|
|
|
|
Income from continuing
operations, net of tax
|
|
$
190
|
|
$
287
|
|
$
215
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected metrics:
|
|
|
|
|
|
|
|
|
|
Period end loans held for
investment
|
|
$ 35,352
|
|
$ 34,592
|
|
$ 34,306
|
|
|
|
Average loans held for
investment
|
|
34,862
|
|
34,441
|
|
34,236
|
|
|
|
Average yield on loans held for
investment
|
|
9.83
|
%
|
9.51
|
%
|
9.60
|
%
|
|
|
Auto loan
originations
|
|
$ 3,409
|
|
$ 2,910
|
|
$ 2,571
|
|
|
|
Period end deposits
|
|
88,589
|
|
87,282
|
|
86,355
|
|
|
|
Average deposits
|
|
88,266
|
|
86,926
|
|
83,884
|
|
|
|
Deposit interest expense
rate
|
|
0.95
|
%
|
1.00
|
%
|
1.06
|
%
|
|
|
Core deposit intangible
amortization
|
|
$
32
|
|
$
34
|
|
$
35
|
|
|
|
Net charge-off
rate(5)(6)
|
|
1.32
|
%
|
1.01
|
%
|
1.57
|
%
|
|
|
Nonperforming loans as a
percentage of loans held for investment(5)(6)
|
|
1.88
|
|
1.83
|
|
1.84
|
|
|
|
Nonperforming asset
rate(6)(7)
|
|
2.04
|
|
2.00
|
|
2.00
|
|
|
|
30+ day performing delinquency
rate(6)(7)
|
|
4.01
|
|
3.70
|
|
3.42
|
|
|
|
Period end loans serviced for
others
|
|
$ 18,624
|
|
$ 19,226
|
|
$ 19,956
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 9: Financial &
Statistical Summary - Commercial Banking Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
|
(Dollars in millions)
(unaudited)
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
Commercial
Banking
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
353
|
|
$
333
|
|
$
321
|
|
|
|
Non-interest income
|
|
62
|
|
62
|
|
71
|
|
|
|
Total revenue
|
|
$
415
|
|
$
395
|
|
$
392
|
|
|
|
Provision for loan and lease
losses
|
|
(10)
|
|
(18)
|
|
(15)
|
|
|
|
Non-interest expense
|
|
200
|
|
192
|
|
177
|
|
|
|
Income from continuing
operations before taxes
|
|
225
|
|
221
|
|
230
|
|
|
|
Income tax provision
|
|
80
|
|
79
|
|
82
|
|
|
|
Income from continuing
operations, net of tax
|
|
$
145
|
|
$
142
|
|
$
148
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected metrics:
|
|
|
|
|
|
|
|
|
|
Period end loans held for
investment
|
|
$ 32,105
|
|
$ 31,203
|
|
$ 30,017
|
|
|
|
Average loans held for
investment
|
|
31,345
|
|
30,316
|
|
29,793
|
|
|
|
Average yield on loans held for
investment
|
|
4.69
|
%
|
4.74
|
%
|
4.80
|
%
|
|
|
Period end deposits
|
|
$ 25,282
|
|
$ 24,304
|
|
$ 24,244
|
|
|
|
Average deposits
|
|
25,227
|
|
24,282
|
|
24,138
|
|
|
|
Deposit interest expense
rate
|
|
0.48
|
%
|
0.52
|
%
|
0.55
|
%
|
|
|
Core deposit intangible
amortization
|
|
$
10
|
|
$
10
|
|
$
11
|
|
|
|
Net charge-off
rate(6)
|
|
0.37
|
%
|
0.50
|
%
|
0.79
|
%
|
|
|
Nonperforming loans as a
percentage of loans held for investment(6)
|
|
1.43
|
|
1.54
|
|
1.84
|
|
|
|
Nonperforming asset
rate(6)
|
|
1.55
|
|
1.66
|
|
1.95
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
category:(11)
|
|
|
|
|
|
|
|
|
|
Noncriticized
|
|
$ 29,374
|
|
$ 28,459
|
|
$ 27,008
|
|
|
|
Criticized performing
|
|
1,781
|
|
1,765
|
|
1,924
|
|
|
|
Criticized
nonperforming
|
|
459
|
|
481
|
|
553
|
|
|
|
Total non-PCI loans
|
|
31,614
|
|
30,705
|
|
29,485
|
|
|
|
Total PCI loans
|
|
491
|
|
498
|
|
532
|
|
|
|
Total
|
|
$ 32,105
|
|
$ 31,203
|
|
$ 30,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of period end held for
investment commercial loans:
|
|
|
|
|
|
|
|
|
|
Noncriticized
|
|
91.49
|
%
|
91.21
|
%
|
89.98
|
%
|
|
|
Criticized performing
|
|
5.55
|
|
5.66
|
|
6.41
|
|
|
|
Criticized
nonperforming
|
|
1.43
|
|
1.54
|
|
1.84
|
|
|
|
Total non-PCI loans
|
|
98.47
|
|
98.40
|
|
98.23
|
|
|
|
Total PCI loans
|
|
1.53
|
|
1.60
|
|
1.77
|
|
|
|
Total
|
|
100.00
|
%
|
100.00
|
%
|
100.00
|
%
|
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 10: Financial &
Statistical Summary - Other and Total
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
(Dollars in millions)
(unaudited)
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Other
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
$
(209)
|
|
$
(138)
|
|
$
(105)
|
|
|
Non-interest income
(expense)
|
|
(57)
|
|
(18)
|
|
11
|
|
|
Total revenue
|
|
$
(266)
|
|
$
(156)
|
|
$
(94)
|
|
|
Provision for loan and lease
losses
|
|
(15)
|
|
11
|
|
4
|
|
|
Non-interest expense
|
|
56
|
|
67
|
|
67
|
|
|
Loss from continuing operations
before taxes
|
|
(307)
|
|
(234)
|
|
(165)
|
|
|
Income tax benefit
|
|
(174)
|
|
(132)
|
|
(191)
|
|
|
Income (loss) from continuing
operations, net of tax
|
|
$
(133)
|
|
$
(102)
|
|
$
26
|
|
|
|
|
|
|
|
|
|
|
Selected metrics:
|
|
|
|
|
|
|
|
|
Period end loans held for
investment(4)
|
|
$
465
|
|
$
465
|
|
$
464
|
|
|
Average loans held for
investment(4)
|
|
465
|
|
468
|
|
462
|
|
|
Period end deposits
|
|
14,447
|
|
14,531
|
|
14,847
|
|
|
Average deposits
|
|
14,775
|
|
14,626
|
|
16,136
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$ 3,283
|
|
$ 3,136
|
|
$ 3,140
|
|
|
Non-interest income
|
|
871
|
|
857
|
|
942
|
|
|
Total revenue
|
|
$ 4,154
|
|
$ 3,993
|
|
$ 4,082
|
|
|
Provision for loan and lease
losses
|
|
622
|
|
343
|
|
534
|
|
|
Non-interest expense
|
|
2,297
|
|
2,255
|
|
2,162
|
|
|
Income from continuing
operations before taxes
|
|
1,235
|
|
1,395
|
|
1,386
|
|
|
Income tax provision
|
|
370
|
|
450
|
|
354
|
|
|
Income from continuing
operations, net of tax
|
|
$
865
|
|
$
945
|
|
$ 1,032
|
|
|
|
|
|
|
|
|
|
|
Selected metrics:
|
|
|
|
|
|
|
|
|
Period-end loans held for
investment
|
|
$ 129,952
|
|
$ 128,965
|
|
$ 124,092
|
|
|
Average loans held for
investment
|
|
129,043
|
|
127,916
|
|
125,077
|
|
|
Period end
deposits
|
|
128,318
|
|
126,117
|
|
125,446
|
|
|
Average
deposits
|
|
128,268
|
|
125,834
|
|
124,158
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 11: Notes to Loan
and Segment Disclosures (Tables 6 — 10)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Certain prior period amounts
have been reclassified to conform to the current period
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Amounts for Q3 2011 and Q2 2011
reflect the impact of the April 1, 2011 acquisition of the existing
private-label credit card loan portfolio of Kohl's Department
Stores ("Kohl's"), which had an outstanding principal and interest
balance of approximately $3.7 billion at acquisition.
|
|
|
|
|
(3)
|
Other loans held for investment
includes unamortized premiums and discounts on loans acquired as
part of the North Fork and Hibernia acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
In accordance with our
loss-sharing agreement with Kohl's, charge-offs for the portfolio
are reported net of any reimbursement of credit losses from Kohl's,
which has the impact of lowering the overall Domestic Card
charge-off rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
The third quarter 2011
annualized net charge-off rate for Auto reflects the impact of a
true-up of recoveries for certain bankruptcy-related Auto loans
that were previously charged-off, which resulted in a decrease in
the annualized net charge off rate of 19 basis points in the Q3
2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
PCI loans acquired as part of
the CCB acquisition are included in the denominator used in
calculating the credit quality ratios presented in Tables 6-10.
These metrics excluding the impact of loans acquired from CCB from
the denominator are presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
(Dollars in millions)
(unaudited)
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
|
CCB period end acquired loan
portfolio
|
|
$ 4,873
|
|
$ 5,181
|
|
$ 5,351
|
|
|
|
CCB average acquired loan
portfolio
|
|
4,998
|
|
5,112
|
|
5,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-off
rates
|
|
|
|
|
|
|
|
|
|
Consumer
banking:
|
|
|
|
|
|
|
|
|
|
Home
loan
|
|
0.87
|
%
|
0.98
|
%
|
1.16
|
%
|
|
|
Retail
banking
|
|
1.69
|
|
1.76
|
|
2.32
|
|
|
|
Total consumer banking
|
|
1.51
|
%
|
1.17
|
%
|
1.82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
banking:
|
|
|
|
|
|
|
|
|
|
Commercial and
multifamily real estate
|
|
0.12
|
%
|
0.40
|
%
|
0.57
|
%
|
|
|
Middle
market
|
|
0.42
|
|
0.13
|
|
0.18
|
|
|
|
Total commercial lending
|
|
0.28
|
%
|
0.31
|
%
|
0.38
|
%
|
|
|
Total commercial banking
|
|
0.38
|
%
|
0.51
|
%
|
0.80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30+ day performing delinquency
rates
|
|
|
|
|
|
|
|
|
|
Consumer
banking:
|
|
|
|
|
|
|
|
|
|
Home
loan
|
|
1.28
|
%
|
1.18
|
%
|
1.02
|
%
|
|
|
Retail
banking
|
|
0.90
|
|
0.77
|
|
0.93
|
|
|
|
Total consumer banking
|
|
4.57
|
%
|
4.29
|
%
|
3.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming asset
rates
|
|
|
|
|
|
|
|
|
|
Consumer
banking:
|
|
|
|
|
|
|
|
|
|
Home
loan
|
|
7.80
|
%
|
7.38
|
%
|
7.24
|
%
|
|
|
Retail
banking
|
|
2.40
|
|
2.48
|
|
2.44
|
|
|
|
Total consumer banking
|
|
2.33
|
%
|
2.32
|
%
|
2.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
banking:
|
|
|
|
|
|
|
|
|
|
Commercial and
multifamily real estate
|
|
2.18
|
%
|
2.39
|
%
|
2.68
|
%
|
|
|
Middle
market
|
|
1.07
|
|
1.22
|
|
1.17
|
|
|
|
Total commercial lending
|
|
1.57
|
%
|
1.73
|
%
|
1.90
|
%
|
|
|
Total commercial banking
|
|
1.57
|
%
|
1.68
|
%
|
1.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans as a
percentage of loans held for investment
|
|
|
|
|
|
|
|
|
|
Consumer
banking
|
|
2.15
|
%
|
2.12
|
%
|
2.14
|
%
|
|
|
Commercial
banking
|
|
1.45
|
|
1.56
|
|
1.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
Nonperforming assets consist of
nonperforming loans, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
As permitted by regulatory
guidance, our policy is generally to exempt delinquent credit card
loans from being classified as nonperforming. 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
(9)
|
The September 30, 2011 30+ day
delinquency rate for Domestic Card reflects the impact of a change
in the way we estimate recoveries in determining the uncollectible
amount of finance charges and fees, which resulted in an increase
of 11 basis points as of September 30, 2011. For
International Card, the change did not have a significant impact on
the 30+ day delinquency rate as of September 30, 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
(10)
|
Includes credit card purchase
transactions net of returns. Excludes cash advance
transactions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11)
|
Criticized exposures correspond
to the "Special Mention," "Substandard" and "Doubtful" asset
categories defined by banking regulatory authorities.
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL ONE FINANCIAL
CORPORATION (COF)
|
|
Table 12: Reconciliation of
Non-GAAP Measures and Calculation of Regulatory Capital
Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition to disclosing
required regulatory capital measures, we also report certain
non-GAAP capital measures that management uses in assessing its
capital adequacy. These non-GAAP measures include average tangible
common equity, tangible common equity (TCE), TCE ratio, Tier 1
common equity and Tier 1 common equity ratio. The table below
provides the details of the calculation of each of these measures.
While these non-GAAP capital measures are widely used by investors,
analysts and bank regulatory agencies to assess the capital
position of financial services companies, they may not be
comparable to similarly titled measures reported by other
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
2011
|
|
|
2011
|
|
|
(Dollars in
millions)(unaudited)
|
|
Q3
|
|
|
Q2
|
|
|
Q1
|
|
|
Average Equity to Non-GAAP
Average Tangible Common Equity
|
|
|
|
|
|
|
|
|
|
|
Average total stockholders'
equity
|
|
$ 29,316
|
|
|
$ 28,255
|
|
|
$ 27,009
|
|
|
Less: Average intangible
assets (1)
|
|
(13,990)
|
|
|
(14,025)
|
|
|
(14,001)
|
|
|
Average tangible common
equity
|
|
$ 15,326
|
|
|
$ 14,230
|
|
|
$ 13,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity to Non-GAAP
Tangible Common Equity
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$ 29,378
|
|
|
$ 28,681
|
|
|
$ 27,550
|
|
|
Less: Intangible assets
(1)
|
|
(13,953)
|
|
|
(14,006)
|
|
|
(14,030)
|
|
|
Tangible common
equity
|
|
$ 15,425
|
|
|
$ 14,675
|
|
|
$ 13,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets to Tangible
Assets
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ 200,148
|
|
|
$ 199,753
|
|
|
$ 199,300
|
|
|
Less: Assets from
discontinued operations
|
|
(304)
|
|
|
(32)
|
|
|
(342)
|
|
|
Total assets from continuing
operations
|
|
199,844
|
|
|
199,721
|
|
|
198,958
|
|
|
Less: Intangible assets
(1)
|
|
(13,953)
|
|
|
(14,006)
|
|
|
(14,030)
|
|
|
Tangible assets
|
|
$ 185,891
|
|
|
$ 185,715
|
|
|
$ 184,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP TCE
Ratio
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity
|
|
$ 15,425
|
|
|
$ 14,675
|
|
|
$ 13,520
|
|
|
Tangible assets
|
|
185,891
|
|
|
185,715
|
|
|
184,928
|
|
|
TCE ratio(2)
|
|
8.3
|
%
|
|
7.9
|
%
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Tier 1 Common Equity
and Regulatory Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$ 29,378
|
|
|
$ 28,681
|
|
|
$ 27,550
|
|
|
Less: Net unrealized
(gains) losses on AFS securities recorded in AOCI (3)
|
|
(401)
|
|
|
(482)
|
|
|
(314)
|
|
|
|
Net (gains) losses on cash flow
hedges recorded in AOCI(3)
|
|
54
|
|
|
71
|
|
|
95
|
|
|
|
Disallowed goodwill and other
intangible assets
|
|
(13,899)
|
|
|
(13,954)
|
|
|
(13,993)
|
|
|
|
Disallowed deferred tax
assets
|
|
(227)
|
|
|
(647)
|
|
|
(1,377)
|
|
|
|
Other
|
|
(2)
|
|
|
(2)
|
|
|
(2)
|
|
|
Tier 1 common equity
|
|
$ 14,903
|
|
|
$ 13,667
|
|
|
$ 11,959
|
|
|
Plus: Tier 1 restricted
core capital items(4)
|
|
3,636
|
|
|
3,636
|
|
|
3,636
|
|
|
Tier 1 capital
|
|
$ 18,539
|
|
|
$ 17,303
|
|
|
$ 15,595
|
|
|
Plus: Long-term debt
qualifying as Tier 2 capital
|
|
2,438
|
|
|
2,727
|
|
|
2,827
|
|
|
|
Qualifying allowance for loan
and lease losses
|
|
1,897
|
|
|
1,864
|
|
|
1,825
|
|
|
|
Other Tier 2
components
|
|
24
|
|
|
28
|
|
|
20
|
|
|
Tier 2 capital
|
|
$ 4,359
|
|
|
$ 4,619
|
|
|
$ 4,672
|
|
|
Total risk-based
capital(5)
|
|
$ 22,898
|
|
|
$ 21,922
|
|
|
$ 20,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted
assets(6)
|
|
$ 149,050
|
|
|
$ 146,201
|
|
|
$ 142,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common equity ratio
(7)
|
|
10.0
|
%
|
(10)
|
9.4
|
%
|
|
8.4
|
%
|
|
Tier 1 risk-based capital ratio
(8)
|
|
12.4
|
|
(10)
|
11.8
|
|
|
10.9
|
|
|
Total risk-based capital ratio
(9)
|
|
15.4
|
|
(10)
|
15.0
|
|
|
14.2
|
|
|
___________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes impact from related
deferred taxes.
|
|
(2)
|
Calculated based on tangible
common equity divided by tangible assets.
|
|
(3)
|
Amounts presented are net of
tax.
|
|
(4)
|
Consists primarily of trust
preferred securities.
|
|
(5)
|
Total risk-based capital equals
the sum of Tier 1 capital and Tier 2 capital.
|
|
(6)
|
Calculated based on prescribed
regulatory guidelines.
|
|
(7)
|
Tier 1 common equity ratio is a
non-GAAP measure calculated based on Tier 1 common equity divided
by risk-weighted assets.
|
|
(8)
|
Tier 1 risk-based capital ratio
is a regulatory capital measure calculated based on Tier 1 capital
divided by risk-weighed assets.
|
|
(9)
|
Total risk-based capital ratio
is a regulatory capital measure calculated based on total
risk-based capital divided by risk-weighed assets.
|
|
(10)
|
Capital ratios as of the end of
Q3 2011 are preliminary and therefore subject to change once the
calculations have been finalized.
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Capital One Financial Corporation