Capital One Financial Corporation · NYSE:COF

Capital One Financial — Q3 2007 Earnings Presentation

14 slides from Capital One Financial's earnings presentation, Oct 18, 2007

  1. Slide 1: October 18, 2007

    Exhibit 99.2 October 18, 2007

  2. 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 or

  3. Slide 3: Third quarter 2007 financial highlights

    Third quarter 2007 financial highlights • Diluted earnings per share of ($0.21), or $2.09 excluding loss from discontinued operations of $898M related to the shutdown of GreenPoint Mortgage – EPS from continuing operations up 8% linked quarter and 11% from Q306 – Significant revenue growth partially

  4. Slide 4: Shutdown of GreenPoint Mortgage largely complete

    Shutdown of GreenPoint Mortgage largely complete Financial Impact from GreenPoint Shutdown ($ millions, after tax) Estimated Q307 Remaining Total Estimate Original Estimate Valuation Adjustments¹ ($178) ($178) ($110) Restructuring Charges ($59) ($23) ($82) ($100) Goodwill ($646) ($646) ($650) Total

  5. Slide 5: On track to deliver cost reductions

    On track to deliver cost reductions • Remain on track for gross cost savings of $700M by 2009 – Continue to expect the reported level of operating expense to fall in 2008 by $100-200M • Now expect to recognize around $150M of charges in 2007 – Recognized $19M of charges in Q307; $91M in Q207 – Overa

  6. Slide 6: Third quarter 2007 balance sheet and return metrics from Continuing Operations

    Third quarter 2007 balance sheet and return metrics from Continuing Operations Managed Balance Sheet Highlights ($Millions) Q307/Q207 Change Q307 Q207 Q306 $ %/bps Total Deposits $ 83,343 $ 85,680 $ 47,613 $ (2,337) (2.7) % Total Managed Loans Held for Investment 144,769 143,498 112,239 1,271 0.9 Ta

  7. Slide 7: Third quarter 2007 managed income statement

    Third quarter 2007 managed income statement Managed Income Statement Highlights ($Millions except per share data) Q307/Q207 Change Q307 Q207 Q306 $ %/bps Net Interest Income $ 2,803.4 $ 2,613.3 $ 2,217.8 $ 190.1 7 % Non-Interest Income 1,518.0 1,387.5 1,275.4 130.5 9 Total Revenue 4,321.4 4,000.8 3,

  8. Slide 8: Credit trends

    Credit trends Monthly Managed Monthly Managed Delinquency Net Charge-off Rate and Non-Performing Loan Rate 8% 8% 7% Bankruptcy 7% Filing Spike 6% 6% 5% 4.70% Q307: 5% 3.96% (1) National Lending 4% National Lending 30+ Delinquency Rate 4% 3% 3% 2% 2% Local Banking: Non performing loans 1% Local Banki

  9. Slide 9: Profit growth in US Card, Global Financial Services and Local Banking more than offset declines in Auto Finance

    Profit growth in US Card, Global Financial Services and Local Banking more than offset declines in Auto Finance Net Income After Tax ($Millions) 1 PRO-FORMA Q307/Q306 Change Q307 Q207 Q306 $ % National Lending US Card $ 560.8 $ 538.3 $ 461.6 $ 99.2 21.5 % Auto Finance (3.8) 38.0 35.3 (39.1) (110.8)

  10. Slide 10: US Card revenue margin expansion and expense management more than offset higher credit costs

    US Card revenue margin expansion and expense management more than offset higher credit costs Net Income After Tax (1) ($M) Highlights $600 $560.8 Q307 NIAT of $561 million, up 22% from Q306 $538.3 $495.3 - Revenues up 13% $461.6 $421.8 - Expenses down 9% $400 - Provision up 47% $337.2 • $50 billion

  11. Slide 11: Global Financial Services continues to grow profits and loans while delivering stable credit performance

    Global Financial Services continues to grow profits and loans while delivering stable credit performance Net Income After Tax (1) ($M) Highlights $140 $118.4 • Net income of $118.4 million, up 11% from Q306 $120 $107.2 - Revenue up 12% $100 - Expenses up 11% $82.8 $80 $74.8 - Provision up 16% $60 $5

  12. Slide 12: Auto Finance is working its way through tough industry conditions

    Auto Finance is working its way through tough industry conditions Net Income After Tax (1) ($M) $100 $95.1 Highlights • Net loss of $(3.8) million, compared to $35.3M of $80 net income in Q306 $60 $44.4 – Revenues up 6% $38.0 $35.3 $33.7 – Expenses down 1% $40 – Provision up 52% $20 ($3.8) • Charge

  13. Slide 13: Local banking delivered solid results and further progress on integration

    Local banking delivered solid results and further progress on integration Net Income After Tax (1,2) ($M) Highlights $192.3 $200 $174.0 $165.4 $160.9 • NIAT of $192 million in Q307, up $48 from $144.8 Q207 $150 $127.0 - Revenues down 2% - Expenses down 1% $100 - Allowance release from methodology ch

  14. Slide 14: Summary of 2008 expectations

    Summary of 2008 expectations • Low- to-mid single digit loan and deposit growth • Revenue growth in-line with or slightly higher than loan growth • Operating efficiency ratio (including marketing but excluding restructuring charges) improving to the mid-40%s • Operating expenses to decline by $100-2

Capital One Financial — Q3 2007 Earnings Presentation on 6ix