Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q4 2010 Earnings Presentation
17 slides from Capital One Financial's earnings presentation, Jan 20, 2011
Slide 1: Fourth Quarter 2010 Results
Fourth Quarter 2010 Results
Slide 2: Forward looking statements
Forward looking statements 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 or revise any of the informatio
Slide 3: Fourth quarter 2010 earnings vs third quarter
Q310 Q410 Fav/(Unfav) ($) Fav/(Unfav) (%) Net Interest Income Non-Interest Income Revenue Marketing Expense Operating Expense Pre-Provision Earnings (before tax) Net Charge-offs Other Allowance Build (Release) Provision Expense Discontinued Operations, net of tax Total Company (after tax) EPS Availa
Slide 4: Full year 2010 earnings vs 2009
2009 2010 Fav/(Unfav) ($) Fav/(Unfav) (%) 1 Full year 2010 earnings were $2,743MM, or $6.01 per share, compared with $884MM, or $0.74 per share in full year 2009 Net Interest Income Non-Interest Income Revenue Marketing Expense Operating Expense Restructuring Expense Non-Interest Expense Pre-Provisi
Slide 5: Tier 1 Common Equity + Allowance Ratio to Risk-Weighted Assets
Tier 1 Common Equity + Allowance Ratio to Risk-Weighted Assets Our capacity to generate capital is strong Allowance Tier 1 Common 13.4% 14.2% 13.0% 12.5% 13.2% 13.2% 1 Tier 1 common equity ratio is a non-GAAP measure calculated based on Tier 1 common equity divided by risk-weighted assets. See "Exhi
Slide 6: Loan balances are stabilizing
Liability Highlights Asset Highlights End of Period Liabilities 1 End of Period Assets 1 Loan balances are stabilizing • End of period loans down $11B in 2010, or 8% • More than $6B from run-off portfolios • End of period loans down $387MM in Q4, or less than 1% • Run-off portfolios down $1.4B • Exc
Slide 7: Margins as % of Managed Assets
Margins as % of Managed Assets Revenue Margin Net Interest Margin Margins remain attractive, although asset yields were down modestly in the quarter Modest NIM decline • Lower asset yields • Slight mix shift from loans to investment portfolio Revenue Margin decreased • Lower net interest margin • Re
Slide 8: Consumer credit improvement: charge-off and delinquency rates
Domestic Credit Card ($53.2*) Home Loan Credit ($12.5B*) Auto Credit ($17.8B*) International Credit Card ($7.4B*) Net Charge-off Rate Net Charge-off Rate 30+ Day Delinquency Rate Net Charge-off Rate 30+ Day Delinquency Rate Net Charge-off Rate 30+ Day Delinquency Rate * Average assets for Q4 Credit
Slide 9: Commercial Banking credit metrics showing improvement
Total Commercial Banking ($29.8B*) Commercial & MultiFamily Real Estate ($13.4B*) Middle Market ($10.5B*) Total Commercial Lending Excluding Small Ticket CRE ($27.9B*) Nonperforming Asset Rate Nonperforming Asset Rate Charge-off Rate Nonperforming Asset Rate Charge-off Rate Nonperforming Asset Rate
Slide 10: Capital One well positioned to generate attractive returns
Local Banking Commercial Banking Powerful Brand, Strong Balance Sheet Retail Banking Card Auto National Lending As a bank with great national lending and local banking businesses, Capital One is well positioned to generate attractive returns • Industry Leading ROA • Moderate to Strong Growth • Acces
Slide 11: Appendix
Appendix
Slide 12: Ending loan balances excluding run off portfolios
Domestic Card Commercial Banking Consumer Banking Commentary Excluding “run off” portfolios, ending loan balances grew modestly in Q4 • $1.4 billion decline in “run off” portfolios of ILs, Home Loans and Small-Ticket CRE • Excluding “run off” portfolios, ending loan balances grew $1.0 billion in Q4
Slide 13: Highlights Domestic Card
Highlights Domestic Card Q4 2009 Q4 2010 Strong credit continues to drive Domestic Card profits • Revenue margin declined by 11 bps from Q3 - Full quarter of reasonable fees driving lower net interest income • NIE increase driven by higher marketing and seasonally elevated operating expenses • Credi
Slide 14: Highlights International Card
Highlights International Card Q4 2009 Q4 2010 International Card net income was stable in Q4 • Revenue decreased slightly in Q4, primarily driven by a decrease in non- interest income in UK • Non-interest expense decreased due to an adjustment to the reserve for Canada goods and service tax • Credit
Slide 15: Highlights Commercial Banking
Highlights Commercial Banking Q4 2009 Q4 2010 Commercial Banking net profits were higher in Q4 driven by lower provision expenses and increased revenue • Revenues increased from Q3 to Q4 - Modest loan growth with stable loan yield drove higher Net Interest Income - Non-interest income increased due
Slide 16: Highlights Consumer Banking
Highlights Consumer Banking 20,019 4.57% 1,146 Q4 2009 Q4 2010 Consumer Banking net income decreased due to higher provision expenses and higher non-interest expenses • Revenue stable in Q4 • Non-interest expenses increased slightly due primarily to higher marketing • Provision expense increased – H
Slide 17: Capital One
ae CapitalOne
Capital One Financial — Q4 2010 Earnings Presentation on 6ix