Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q4 2004 Earnings Presentation
18 slides from Capital One Financial's earnings presentation, Jan 19, 2005
Slide 1: Capital One fourth quarter results
. Capital Oye | fourth quarter results January 19, 2005 Capital)" | fourth quarter results
Slide 2: Forward-looking statements
Forward Please does Certain outlook within those increase repayments; respect operations on execute Exchange any All with results, Relations 2 its information subsequent the not described strategic note the to available statements effective or SEC. or undertake looking under practices Commission saf
Slide 3: Continued Strong Results and Diversification
Capital 2004 $8.6 Diversification Strong – Continued 3 0.83% 39% 24% Q404 billion fully managed of &One ofin2004 below growth: increase managed stabilizing $0.77 diluted strength Q404 year-over-year delivered recent ROA profits beyond $4.4 inEPS loans charge-offs incredit of billion trend liquidity
Slide 4: 2005 Expectations and Guidance
We are 12-15% Continued Managed Modest Continuing Loans 2005 4 Expectations: EPS Profits well declines Loan ROA Guidance asset Diversification positioned Growth between diversification in revenue ofRate $6.60—$7.00 to1.7% deliver margin and with strong 1.8% offset a bias performance by toward improv
Slide 5: Fourth Quarter 2004 Financial and Business Update
Fourth quarter Financial Business 5 Update Update 2004
Slide 6: Managed Income Statement Q404/Q403
Seasonality Managed Q404/Q403 Q404 Non-Interest Total Allowance Other Provision Marketing Operating Tax Net Shares Fully Revenue ROA 6 Interest Charge-offs Income Rate Revenue 0.83 Diluted Q304 12.1 Used Margin 30.9 Income for Expenses 2.17 Expenses (0.5) Build/(Release) and After Income Q403 Change
Slide 7: Managed Charge-offs, Delinquencies and Allowance
Seasonal Change Other Managed Allowance Reported Finance Q404 Amounts 7 Q304 12.1 Charge factors Loans $30+ Net Billed Provision (0.5) Build/(Release) for $ Charge-off Change Charge-offs %/bps Loan Day Delinquency & $to 12.6 drove 38,216 Fee Customers for Delinquencies $Losses n/a % Revenue Q404 Loa
Slide 8: Managed Income Statement 2004/2003
Improved Managed 2004/2003 2004 Non-Interest Total Allowance Other Provision Marketing Operating Tax Net Shares Fully Revenue ROA (1) 8 Also Interest Charge-offs Income Rate 2003 Revenue 1.73 Diluted 15.2 Used includes Margin 34.6 Income for credit Expenses 1.52 Expenses 2002 (3.9) Change (Release)/
Slide 9: Improved Managed Revenue Margin and ROA
Improved As 2004 Revenue(1) Less Provision Operating Marketing Tax Net (1 ($15.0M) Consolidation 9 )aTotal Income (0.91%) Percentage Expense: 2003Revenue net (3.55%) credit Expense (1.49%) 2002 12.13% (ROA) (0.90%) ofoftax and of Variable (4.75%) divided Average (4.45%) (1.49%) 1.73% cumulative 13.6
Slide 10: Our Liquidity and Capital Remain Strong
OurIncludes Managed Loans Capital(1) Capital (1) Available Q404/Q403 Q404 Cash Untapped Unsecured Total 10 managed Assets Available and Q304 $plus to79,861 Securities Balance Liquidity Assets Conduit 9,231 Credit Q403 Change Allowance preferred $ balance 94,792 Liquidity $8,769 Ratio 75,457 Facility
Slide 11: Fourth Quarter 2004 Financial and Business Update
Fourth quarter Financial Business 11 Update Update 2004
Slide 12: Managed Net Income After Tax by Segment
Managed Net 2004/2003 2004 US Global Auto Other Total (1) (2) (3) 12 The 213.1 (220.7) Based Global Card Income 2003 Finance Consolidated (3) Financial Other $64.8 14 loan Loans on Financial 48,610 1,387.3 $Change (209.5) After (9) %internal 9,997 163.8 caption 148 &23 ($Millions) Services profit Ta
Slide 13: Managed Net Charge-off Rate
The7% 8% Monthly Apr-03 4.63% Mar-04 Charge-off Quarterly 13 Rate: quarterly May-03 6% Apr-04 Managed 6.32% 5%managed May-04 4% Jun-03 5.44% Net 3% Charge-off 2% Jul-03 charge-off Jun-04 5.32% 1%Aug-03 0% Jul-04 4.83% rate RateAug-04 Sep-03 reflects 4.42% Oct-03 Sep-04 4.05% normal4.37% Nov-03 Oct-0
Slide 14: Managed 30+ Day Delinquency Rate
The7% Monthly 8% Apr-03 14 3.82% managed May-03 6% Managed 5%$30+ 4% Jun-03 $30+ 3% delinquency 2% Jul-03 Day1%Delinquency Aug-03 0% rate has Sep-03 been Rate relatively Oct-03 Nov-03 stableDec-03 for threeJan-04 quarters Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04
Slide 15: US Card Managed Loans and Credit Performance
US Based Net $201.9 7% 6.16% 5.19% 9% Managed 0% 4.88% 3.99% Q303 (1) 15 Card 6% 8% Income Q403 6.16% 4.93% 4.60% 3.95% 5% 7% continued Loans Net $30+ on6% 4% After Q104 internal Charge-off 5.41% 4.68% 4.14% Delinquency 3% 5% ($B) Tax(1) Q204 2% 4% to3.97% allocations $50 deliver 1% 3% Q304 ($M) Rat
Slide 16: Global Financial Services Managed Loans and Credit
Global Net $50.9 $29.2 $3.3 3.78% 3.43% Managed 2.70% 2.63% 2.87% 5% Q303 (1) 16 Based 4% Income Q403 $46.1 $21.0 3.69% 3.26% 2.65% Financial 3%Loans Net $30+ on2% After Q104 internal Charge-off 3.60% 3.30% 2.81% Delinquency 1% ($B) Services Tax(1) Q204 0%2.50% allocations $20Q304 ($M) Rate $15 cont
Slide 17: Auto Finance Managed Loans and Credit
Auto Net $34.4 4.30% 5.10% Managed 2.63% 2.53% 3.87% 7.07% 7.55% 5.44% 8% Q303 (1) 17 Based 7% Income Finance Q403 $30.7 4.13% 5.59% 5.50% 6%Loans Net $30+ on5% After Q104 $27.3 internal Charge-off continued 5.54% Delinquency 4% ($B) Tax(1) Q204 $25.1 3%allocations $10 2% to Q304 ($M) Rate $8 drive
Slide 18: 2005 Expectations and Guidance
We are 12-15% Continued Managed Modest Continuing Loans 2005 18 Expectations: EPS Profits well declines Loan ROA Guidance asset Diversification positioned Growth between diversification in revenue ofRate $6.60—$7.00 to1.7% deliver margin and with strong 1.8% offset a bias performance by toward impro
Capital One Financial — Q4 2004 Earnings Presentation on 6ix