Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q1 2006 Earnings Presentation
12 slides from Capital One Financial's earnings presentation, Apr 20, 2006
Slide 1: First Quarter 2006 Results
Exhibit 99.2 Capital (7c | first quarter 2006 results April 20, 2006
Slide 2: Forward looking statements
Forward looking statements Forward-Looking Information Please note that the following materials containing information regarding CapitalOne’s financial performance speak only as of the particular date or dates indicated in these materials. Capital One does not undertake any obligationto update or re
Slide 3: Capital One delivered record results in the first quarter of 2006
Capital One delivered record results in the first quarter of 2006 • Q106 diluted EPS of $2.86, up 44% from Q105 • Q106 managed ROA of 2.62%, up 58 bps from Q105 • $103.9 billion in managed loans, up 27% from Q105 • Strong credit quality • Reached agreement to acquire North Fork Bancorporation for ap
Slide 4: Managed Quarterly Income Statement
Managed Quarterly Income Statement Managed Income Statement ($Millions except per share data) Q106/Q105 Change Q106 Q405 Q105 $ %/bps Net Interest Income $ 2,235.0 $ 2,075.2 $ 1,818.8 $ 416.2 23 % Non-Interest Income 1,222.2 1,243.4 1,071.4 150.8 14 % Total Revenue 3,457.2 3,318.6 2,890.2 567.0 20 %
Slide 5: Credit metrics remain remarkably strong
Credit metrics remain remarkably strong Monthly Managed Monthly Managed $30+ Day 8% Net Charge-off Rate Delinquency Rate 8% 7% Bankruptcy 7% Filing Spike 6% 6% 5% 5% 4% 4% 3% 3% 2.92% 2% 2% 1% 1% 0% 0% Quarterly Charge-off Rate 4.42% 4.05% 4.37% 4.13% 4.10% 4.14% 4.53% 2.65% 5
Slide 6: Seasonal decline in card balances and strong credit trends drove lower provision expense
A seasonal decline in credit card balances and strong underlying credit trends drove a lower provision expense in the quarter Charge-offs and Allowance for Loan Losses ($Millions) Q106/Q405 Change Q106 Q405 Q105 $ %/bps Managed Net Charge-offs $ 692.5 $ 1,066.6 $ 843.9 $ (374.1) (35) % Allowance Bui
Slide 7: Capital and liquidity remain solid
Capital and liquidity remain solid Managed Balance Sheet Highlights ($Millions) Q106/Q105 Change Q106 Q405 Q105 $ %/bps Loans $ 103,907 $ 105,527 $ 81,592 $ 22,315 27 % Tangible Assets $ 130,211 $ 129,484 $ 97,976 $ 32,235 33 % Tangible Capital 11,016 9,994 8,940 2,076 23 % Tangible Capital to Tangi
Slide 8: US Card delivered another quarter of outstanding profitability
US Card delivered another quarter of outstanding profitability Net Income After Tax (1) ($M) $700 Highlights $602.8 $600 $481.8 $500 $458.2 $432.4 • Net income up 32% from Q105 $400 $300 • Record low charge-off rate of 2.93% $237.0 $201.9 $200 • Loans outstanding up 1% over Q105 $100 $0 • Purchase v
Slide 9: Global Financial Services: North American strength offset UK challenges
In Global Financial Services results, continued strength in North American businesses more than offset challenges in the U.K. Net Income After Tax (1) ($M) $120 $113.5 Highlights $100 $81.9 $80 $70.5 • Net income up 61% from Q105 $60 – Strong profits and growth across North $40 American businesses $
Slide 10: Capital One Auto Finance delivered very strong growth and profits
Capital One Auto Finance delivered very strong growth and profits in the quarter Net Income After Tax (1) ($M) $120 Highlights $96.1 $100 $80 $69.4 • Net income up 95% since Q105, driven $60 by portfolio growth, strong credit, and $40 $35.6 efficiency gains $25.1 $8.1 $20 • $6.6B loan growth since Q
Slide 11: Our new banking segment is off to a good start
Our new banking segment is off to a good start Q106 Results Integration Update • $43M net income, in line with expectations • Hibernia integration efforts on track • Includes net after-tax adjustments of ($34M) related to integration costs, purchase accounting intangibles amortization, and corporate
Slide 12: The planned acquisition of North Fork delivers on our strategic agenda
The planned acquisition of North Fork delivers on our strategic agenda North Fork Bank Strategic Acquisition Fit • $14.6 billion estimated purchase price • Secures multiple growth platforms – Local scale deposits • $36.6 billion in deposits as of 12/31/05 – Local scale small business and mid-market
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