Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q2 2012 Earnings Presentation
11 slides from Capital One Financial's earnings presentation, Jul 18, 2012
Slide 1: Second Quarter 2012 Results
Exhibit 99.3 Second Quarter 2012 Results July 19, 2012
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: Second quarter results reflect significant purchase accounting and other items
Second quarter results reflect significant purchase accounting and other items, as well as continued solid business performance • Second quarter net income of $92 million, or $0.16 per common share st • Completed HSBC U.S. Card Business acquisition on May 1 – Purchase accounting drove Total Company
Slide 4: Our businesses continue to deliver solid results
Our businesses continue to deliver solid results Domestic Card (Excluding HSBC Deal Consumer Banking Commercial Banking Impacts) • Excluding expected IL run- • Modest ending loan growth, • Steady loan growth off, loans grew about 1% in with auto finance growth continued, with loans up 3% the quarter
Slide 5: We are focused on delivering sustained shareholder value
We are focused on delivering sustained shareholder value Building a Great Strong Returns and Sure-footed Integrations Customer Franchise Capital Generation July 19, 2012 5
Slide 6: Second quarter balance sheet impacted by the closing of the HSBC acquisition
The composition of our second quarter balance sheet was impacted by the closing of the HSBC acquisition $B HSBC Impacts 6/30/2012 3/31/2012 5/1/2012 Assets: Cash and cash equivalents $ (31.1) $ 6.3 $ 31.7 Securities - 55.3 60.8 Loans held for investment 27.6 202.8 173.8 Less: Allowance for loan and
Slide 7: Numerous acquisition accounting items impacted the balance sheet and income statement
Numerous acquisition accounting items impacted both the balance sheet and the income statement in the quarter Select purchase accounting items Purchase Accounting Q2 P&L Item 5/1/2012 Impact Timing Notes Allowance build for non-impaired loans * n/a (1,198) Expect modest impacts in Q3 Increases Domes
Slide 8: Second quarter 2012 earnings reflected significant impact from the HSBC acquisition
Second quarter 2012 earnings reflected a significant impact from the acquisition of HSBC’s loan portfolio and other items Actual HSBC* Impact COF (excl.HSBC) Actual HSBC acquisition $MM Q2'12 Q2'12 Q2'12 Q1'12 ** – Merger-related & purchase accounting include: • $1.2B ALLL build in provision expense
Slide 9: Second quarter NIM impacted by ING Direct, HSBC and purchase accounting
Second quarter NIM impacted by full quarter of ING Direct, partial quarter impact of HSBC and HSBC purchase accounting Average Balances & Margin Highlights 2012 Q2 2012 Q1 Average Yield/ Average Yield/ (Dollars in millions) Balance Rate Balance Rate Interest-earning assets: Loans held for investment
Slide 10: Our capital position remains strong after the closing of the HSBC transaction
Our capital position remains strong after the closing of the HSBC transaction 1 Tier 1 Common Ratio (Basel I) 14% 11.9% 12% 10.0% 9.7% 9.9% 10% 9.4% 8% 6% 4% 2% 0% ($B) Q211 Q311 Q411 Q112 Q212 Tier 1 common capital including disallowed DTA 14.3 15.1 15.6 22.6 22.3 Disallowed DTA (0.6) (0.2) (0.5) (
Slide 11: Capital One
ap C. italOne
Capital One Financial — Q2 2012 Earnings Presentation on 6ix