Capital One Financial Corporation · NYSE:COF

Capital One Financial — Q1 2011 Earnings Presentation

15 slides from Capital One Financial's earnings presentation, Apr 21, 2011

  1. Slide 1: First Quarter 2011 Results

    Exhibit 99.3 First Quarter 2011 Results April 21, 2011

  2. 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

  3. Slide 3: First quarter 2011 earnings were $2.21 per share, up 45% from the prior quarter

    First quarter 2011 earnings were $2.21 per share, up 45% from the prior quarter 2 2 Q111 Q410 % Highlights $MM Change Net Interest 3,140 3,023 4% Non-Interest Income 942 939 0% Income Revenue 4,082 3,962 3% • Interest income increase driven by margin expansion Marketing 276 308 10% Operating Expense

  4. Slide 4: Margins increased in the quarter

    Margins increased in the quarter Margins as % of Managed Assets Q1 Margin Expansion • Higher asset yields Revenue Margin • Improving credit trends and outlook • Modest improvement in cost of funds Drivers of Future Margin Trends Net Interest Margin • Competitive dynamics • Asset mix • Credit trends

  5. Slide 5: Our capacity to generate capital remains strong

    Our capacity to generate capital remains strong Tier 1 Common Equity + Allowance Ratio to Risk-Weighted Assets 14.2% 13.0% 13.2% 13.2% 12.5% 12.0% Allowance 1 Tier 1 Common ($B) Tier 1 Common excluding disallowed DTA 12.3 10.1 10.7 11.5 12.3 13.4 Disallowed DTA (0) (2.2) (2.0) (1.3) (1.1) (1.4) Tier

  6. Slide 6: Loan balances declined modestly, reflecting expected seasonal trends

    Loan balances declined modestly, reflecting expected seasonal trends End of Period Asset Assets Highlights $B Cash & Cash Equivalents • End of period loans declined ~$1.9 billion – Run-off portfolios down ~$1.0 billion Securities – Decline excluding run-off ~$800 million Other • Average loans declin

  7. Slide 7: Credit improvement in our consumer businesses continues to run ahead of broader economic indicators

    Credit improvement in our consumer businesses continues to run ahead of broader economic indicators Domestic Credit Card International Credit Card ($51.9B*) ($8.7B*) Net Charge-off Rate Net Charge-off Rate 30+ Day Delinquency Rate Home Loan ($12.0B*) 30+ Day Performing Delinquency Rate 30+ Day Perfo

  8. Slide 8: Commercial Banking credit metrics have stabilized and improved modestly over the last four quarters

    Commercial Banking credit metrics have stabilized and improved modestly over the last four quarters Total Commercial Lending Total Commercial Banking ($29.8B*) Excluding Small Ticket CRE ($28.0B*) Nonperforming Nonperforming Asset Rate Asset Rate Charge-off Rate Commercial & Multi-Family Real Estate

  9. Slide 9: Capital One is well positioned to deliver and sustain attractive returns and generate capital

    Capital One is well positioned to deliver and sustain attractive returns and generate capital National Scale Local Banking Commercial Retail Card Auto Brand Banking Banking Strong and Resilient Balance Sheet • Access to Assets • Low Risk Commercial Assets • Strong ROAs • Core Deposit Funding • Leadi

  10. Slide 10: Appendix

    Appendix April 21, 2011 10

  11. Slide 11: Strong credit continues to drive Domestic Card profits

    Strong credit continues to drive Domestic Card profits Domestic Highlights Card Q1 2011 Q4 2010 Q1 2010 (in millions) • Revenue margin increased 56 bps from Earnings Q4 driven by favorable credit trends and a 1,865 modest increase in fee revenue Net interest income 1,651 1,621 Non-interest income 58

  12. Slide 12: International Card performance was driven primarily by the inclusion of HBC

    International Card performance was driven primarily by the inclusion of HBC International Card Highlights Q1 2011 Q4 2010 Q1 2010 (in million) HBC Acquisition Drove the Following Earnings 248 • $1.2B higher loans and an associated Net interest income 290 249 increase in revenue compared to Q4 Non-in

  13. Slide 13: Commercial Banking net income was higher in Q1 due to lower provision expenses

    Commercial Banking net income was higher in Q1 due to lower provision expenses Commercial Banking Highlights (in millions) Earnings Q1 2011 Q4 2010 Q1 2010 • Revenue and average loans remained Net interest income 321 336 312 relatively stable compared to Q4 Non-interest income 71 49 42 • Non-interes

  14. Slide 14: Consumer Banking net income increased by $95MM in Q1 from Q4

    Consumer Banking net income increased by $95MM in Q1 from Q4 Consumer Banking Highlights (in millions) Earnings Q1 2011 Q4 2010 Q1 2010 • Revenue increased by $23MM from Q4 Net interest income 983 950 896 driven by higher margins in Auto Non-interest income 186 196 316 1,169 1,146 1,212 • Non-intere

  15. Slide 15: CapitalOne

    a CapitalOne

Capital One Financial — Q1 2011 Earnings Presentation on 6ix