Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q3 2004 Earnings Presentation
17 slides from Capital One Financial's earnings presentation, Oct 20, 2004
Slide 1: Third Quarter Results
Capital Qj | third quarter results October 20, 2004 Capital | third quarter results
Slide 2: Forward-looking statements
Forward Please does Certain outlook within those increase repayments; respect operations on disruption listed Report forward-looking All with results, its information the not described from strategic note the on to available statements or SEC. or undertake looking practices Form safe in other and de
Slide 3: Capital One Q304 highlights
Capital Q304 Credit Revenue Managed Diversification – Liquidity 3 Managed 39% Disciplined fully quality of One margin managed ROA loan and diluted charge-off delinquency delivered portfolio capital remains growth beyond remains upEPS loans; 50positions another of rate strong bps management US of abo
Slide 4: Continued diversification and 2004 guidance
We 10-13% ~1.7% Continued Slower US Modest More Diversification – Deposits 2004 4 39% 29% Card are EPS than of Managed delivering consumer declines Loan slightly 28% managed profits Guidance offset Diversification Growth ofbusinesses in ROA by total above credit strong loans revenue lower ofmanaged
Slide 5: Third Quarter Financial and Business Update
Third quarter Financial Business 5 Update Update 2004
Slide 6: Improved income statement Q304 vs Q303
Improved Managed Q304/Q303 Q304 Non-Interest Total Allowance Other Provision Marketing Operating Net Shares Fully Revenue ROA 6 Interest Charge-offs Income Revenue 2.17 Diluted Q204 (0.5) Used Margin Income for credit Expenses 1.84 Expenses (Release)/Build 2.4 After Income Q303 Change to Income Loan
Slide 7: Managed balance sheet and liquidity
TheIncludes Managed Loans Capital(1) Capital (1) Available Q304/Q303 Q304 Cash Untapped Unsecured Total 7 Q304 Assets Available and Q204 $plus to75,457 Securities Balance Liquidity Assets Conduit managed 8,769 Credit Q303 Change Allowance preferred $ 91,665 Liquidity $8,057 Ratio 73,367 Facitlity $S
Slide 8: Credit quality Q304 vs Q204
Credit Q304/Q204 Net Other Provision Allowance Reported Finance Q304 $ Amounts but 8 %not Charge-offs Q204 (0.5) improvement Recognized Charge Loans $30+ Charge-off Billed for for (Release)/Build 1,395 2.4 $Change Q304/Q204 Loan %/bps Loan (2.9) Day Delinquency & $to1,425 35,161 753.7 Fee Customers
Slide 9: 2004 guidance and strong loan growth
Strong 2004 Loan Managed EPS 9 $Guidance Growth 6.10 expected ROA – $6.40 10-13% ~1.70% Year-to-Date growth $ 5.45 ($7.1—$9.3B) 2.04% & $planned 0.65—$ Implied ~ 0.70 marketing 0.95 Q404 $4.2B – 1.00% $2.9 investments – $5.1B will drive Q4 results
Slide 10: Third Quarter Financial and Business Update
Third quarter Financial Business 10 Update Update 2004
Slide 11: Managed net income after tax by segment
Managed Net Q304 Q304/Q303Change US Global Auto Other Total (1) (2) (3) 11 The Based Global Card Income Finance Consolidated Q204 (3) Financial Other $(66.3) 26 loan Loans(1) on Financial 46,082 414.4 After Q303 14 internal 9,734 55.3 caption &(8) (75.5) Services profit $Tax(1) $52.7 384.1 $($Millio
Slide 12: Managed net charge-off rate
The7% 8% Monthly 4.18% Quarterly 6.32% 12 steady Apr-03 5.44% 6% Managed Charge-off improvement 5%5.32% May-03 4%Net 3%4.83% Rate: Jun-03 Charge-off 2%in 1% the 4.42% Jul-03 0% quarterly Rate 4.05% Aug-03 managed Sep-03 charge-off Oct-03 Nov-03 rate continued Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-0
Slide 13: Managed 30+ day delinquency rate
Managed Monthly 8% Apr-03 13 3.90% 7% May-03 6% Managed 30+ 5%delinquency 4% Jun-03 $30+ 3% 2% Jul-03 Dayrate 1% Delinquency Aug-03 0% reflectsSep-03 expected RateOct-03 seasonality Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04
Slide 14: US Card
US Card Net 7.63% Managed 9% Q203 5.42% 14 8% Income Q303 6.16% 4.88% 7% continued Loans Net $30+ 6% After Q403 Charge-off 6.16% 4.60% Delinquency 5% ($B) Tax Q104 4% to3.99% 5.41% $50 deliver ($M) 3% Q204 Rate $45 2% $450 5.19% 3.95% Rate strong $40 Q304 1%$400 $35 4.68% 4.14% 0% profitability $39.
Slide 15: Global Financial Services
Global Net 3.95% 3.69% 3.43% 5% Q203 2.70% 2.81% 2.63% Managed 15 4% Income Q303 3.78% 3.60% 3.26% 2.87% 2.65% Financial 3%Loans Net $30+ 2% After Q403 Charge-off 2.50% Delinquency 1% ($B) Services Tax Q104 0% $20 ($M) Q204 Rate $18 continued $100 Rate $16 Q304 $90 $14 to $19.6 $25.5 $80 $12 be a$70
Slide 16: Auto Finance
Auto7% Net 5.10% 2.63% Managed 8% Q203 7.55% 5.44% 16 Income Finance Q303 4.22% 2.53% 7.07% 5.54% 6%Loans Net $30+ 5% After Q403 Charge-off continued 4.30% 6.97% 5.59% Delinquency 4% ($B) Tax Q104 3%4.13% $10 ($M) 2% to Q204 Rate $8 drive 1% $60 Rate $6Q304 0%$4 $50 both $2$40 $8.5 $44.0 asset $0$30
Slide 17: 2004 and 2005 outlook
We have 2004 Loan Managed EPS 17 $6.10 2005 Growth positioned ROA – $10-13% 6.40 ~ 1.70% $6.60—$ Capital 12-15% ~ 1.70% One 7.00 to deliver strong performance in 2004 and 2005
Capital One Financial — Q3 2004 Earnings Presentation on 6ix