Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q3 2006 Earnings Presentation
10 slides from Capital One Financial's earnings presentation, Oct 18, 2006
Slide 1: October 18, 2006
Exhibit 99.2 October 18, 2006
Slide 2: Forward looking statements
* Forward looking statements Forward-Looking Information Please note that the following materials containing information regarding Capital One’s financial performance speak only as of the particular date or dates indicated in these materials. Capital One does not undertake any obligation to update o
Slide 3: Third quarter 2006 summary
* Third quarter 2006 summary • Q306 diluted EPS of $1.89, up 4% from Q305 • Net income after tax of $588M, up 20% from Q305 • $112.2 billion in managed loans, up 4% from Q206 • $47.5B in average deposits, up 0.6% from Q206 • Managed revenue margin of 10.95%, up 18 bp from Q206 • Managed charge-off r
Slide 4: Third quarter 2006 managed income statement
* Third quarter 2006 managed income statement ($Millions except per share data) Q306/Q206 Change Q306 Q206 Q305 $ %/bps Net Interest Income $ 2,217.8 $ 2,140.8 $ 1,931.2 $ 77.0 4% Non-Interest Income 1,275.4 1,199.4 1,099.8 76.0 6 Total Revenue 3,493.2 3,340.2 3,031.0 153.0 5 Net Charge-offs $ 806.0
Slide 5: Credit loss and delinquency rates remain at historically low levels
* Credit loss and delinquency rates remain at historically low levels Monthly Managed Monthly Managed $30+ Day Net Charge-off Rate Delinquency Rate 8% 8% 7% 7% Bankruptcy Filing Spike 6% 6% 5% 5% 4% 4% 3.29% 3% 3% 2% 2% 1% 1% 0% 0% Quarterly Charge-off Rate 4.05% 4.37% 4.13% 4.10% 4.14% 4.53% 2.65%
Slide 6: Loan growth drove modest increases in both provision and allowance
* Loan growth drove modest increases in both provision and allowance Charge-offs and Allowance for Loan Losses ($Millions) Q306/Q206 Change Q306 Q206 Q305 $ %/bps Managed Net Charge-offs $ 806.0 $ 729.0 $ 868.0 $ 77.0 11 % Allowance Build/(Release) 75.0 90.0 42.0 (15.0) (17) Other (13.1) (23.4) (9.6
Slide 7: US Card continued to deliver strong growth, credit, and profits
* US Card continued to deliver strong growth, credit, and profits Net Income After Tax (1) ($M) $700 $602.8 Highlights $600 $481.8 • Net income down $20M from Q305 $500 $432.4 $461.6 $421.8 $400 • Charge-off rate rose 10 bp from Q206, $300 $237.0 and remains near historical lows $200 $100 • Loans gr
Slide 8: North American GFS businesses continue to more than offset pressure in the U.K. business
* North American GFS businesses continue to more than offset pressure in the U.K. business Net Income After Tax (1) ($M) $120 $113.5 Highlights $107.2 $100 • Net income up $25M from Q305 $81.9 $80 $60 • $3.9B loan growth, or 17%, over Q305 $51.2 $40 • Revenue margin down 20 bp over Q206; Net $26.7 $
Slide 9: Auto Finance continues to deliver solid results
* Auto Finance continues to deliver solid results Net Income After Tax (1) ($M) $120 $95.1 Highlights $96.1 $100 • Net income up $43M from Q305 $69.4 $80 $60 • $3.2B in originations, $21.2B in managed loans $40 $35.3 $8.1 • Net interest margin down 5 bp from Q206 $20 ($7.7) $0 • Credit metrics refle
Slide 10: Banking continues to deliver stable, predictable performance
* Banking continues to deliver stable, predictable performance Net Income After Tax (1) ($M) $60 Highlights $46.2 $43.3 $43.3 • $46M NIAT, up 7% from Q206 $40 • Loans and deposits declined in hurricane $20 impacted areas, grew in rest of network • Credit metrics remain modestly elevated in $0 Q106 Q
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