Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q3 2011 Earnings Presentation
11 slides from Capital One Financial's earnings presentation, Oct 20, 2011
Slide 1: Third Quarter 2011 Results
Exhibit 99.3 Third Quarter 2011 Results October 20, 2011
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: Third quarter 2011 highlights
Third quarter 2011 highlights • Diluted EPS of $1.77, or $813M, compared to $1.97, or $911M, in Q2 2011 • Ending loan balances increased $987M to $130B on growth in Auto Finance, Commercial and Revolving Domestic Card balances • Net Interest Margin remained strong • Asset yields up 13 bps, largely d
Slide 4: Loan balances increased modestly and margin expanded in the third quarter
Loan balances increased modestly and margin expanded in the third quarter Average Balances & Margin Highlights Quarter Ended 09/30/11 Quarter Ended 06/30/11 Average Yield/ Average Yield/ (Dollars in millions)(unaudited) Balance Rate Balance Rate Interest-earning assets: Loans held for investment $ 1
Slide 5: Third quarter 2011 earnings were $1.77 per share
Third quarter 2011 earnings were $1.77 per share Income Statement Q311 Q211 % Change $MM Net interest income 3,283 3,136 5% Non-interest income 871 857 2% Revenue 4,154 3,993 4% Marketing expense 312 329 5% Operating expense 1,985 1,926 (3)% Non-Interest Expense 2,297 2,255 (2)% Pre-Provision Earnin
Slide 6: Our capacity to generate capital remains strong
Our capacity to generate capital remains strong 1 Tier 1 Common Equity to Risk-Weighted Assets (Basel I) 12% 2 10.0% 10% 9.4% 8.8% 8.4% 8.2% 8% 6% 4% 2% 0% ($B) Q310 Q410 Q111 Q211 Q311 Tier 1 Common excluding disallowed DTA 11.5 12.4 13.4 14.3 15.1 Disallowed DTA (1.3) (1.2) (1.4) (0.6) (0.2) Tier
Slide 7: Growth in Auto Finance, Commercial Banking and Revolving Domestic Card resulted in higher ending loan balances
Growth in Auto Finance, Commercial Banking and Revolving Domestic Card resulted in higher ending loan balances in the third quarter Credit Card (EOP) Consumer Banking $M 80 $M 50 45 70 Installment 40 2,760 2,310 60 4,548 3,879 loans 3,272 8,711 8,210 35 7,487 7,522 International 4,014 Retail 8,735 4
Slide 8: Consumer credit is stabilizing exhibiting expected seasonal patterns
Consumer credit is stabilizing exhibiting expected seasonal patterns Domestic Credit Card ($53.7B*) International Credit Card ($8.7B*) 11% 10% Net Charge-off Rate 10% 9% 9% 8.23% 7.60% 8% 7.02% 8% 7.28% 6.68% Net Charge-off Rate 7% 6.15% 7% 6.20% 5.74% 6% 6% 4.74% 5% 5.84% 5.75% 5% 5.55% 5.30% 5.35%
Slide 9: Commercial Banking credit metrics have stabilized and improved modestly over the last five quarters
Commercial Banking credit metrics have stabilized and improved modestly over the last five quarters Total Commercial Lending Total Commercial Banking ($31.3B*) Excluding Small Ticket CRE ($29.7B*) 5% 5% 4% 4% Nonperforming Nonperforming Asset Rate Asset Rate 3% 3% 1.95% 1.94% 1.86% 1.80% 1.76% 1.71%
Slide 10: We are in a strong position to deliver significant value to customers and shareholders
We are in a strong position to deliver significant value to customers and shareholders Advantaged Positioned at End-game Large and access to Sustainable the forefront positions loyal both sides of economic of where with relevant customer the balance advantages banking is scale franchise sheet going
Slide 11: Capital One
a CapitalOne
Capital One Financial — Q3 2011 Earnings Presentation on 6ix