Slide 1: Second quarter 2004 results
second July 21,quarter 2004 2004 results
Slide 2: Forward-looking statements
Forward Please does Certain outlook within those increase repayments; respect operations on disruption listed Report forward-looking All with results, 1 its information the not described from strategic note the on to available statements or SEC. or undertake looking practices Form safe in other and
Slide 3: Capital One delivered strong Q204 results
Capital Q204 Managed Diversification Liquidity 2004 3 EPS fully One ROA charge-off delinquency loan and Guidance diluted delivered capital growth beyond remains EPS of rate positions another of rate $5.60—$5.90 US of ahead down $1.6 $1.65 stabilizing Card billion; strong of remain 41delivers trend b
Slide 4: Diversification and mid-teens growth momentum in 2004 and 2005
We have Mid-teens Moderate Strong Bias 1.6% Charge-off Continued Diversification 38% 24% Deposits 4 toward of ROA growth managed profits positioned 27% growth loan diversification and target lower of in businesses growth expense total Auto loans inloss Capital USliabilities and rate assets Card redu
Slide 5: Second quarter Financial and Business Update
Second quarter Financial Business 5 Update Update 2004
Slide 6: Strong Q204 results driven by improved credit and efficiency
OurIncludes Managed Q204/Q203 Q204 Non-Interest Total Allowance Other Provision Marketing Operating Net Shares Fully Revenue ROA (1) 6 Interest Charge-offs Income strong Revenue 1.84 Diluted Q104 2.4 Used Margin Income 1.3 for Expenses 2.11 Expenses results (Release)/Build Income $407.4 Q203 Change
Slide 7: Capital and liquidity strength
TheIncludes Managed Loans Capital(1) Capital (1) Available Q204/Q203 Q204 Cash Untapped Unsecured Total 7 Q204 Assets Available and Q104 $73,367 toSecurities plus Balance Liquidity Assets Conduit managed 8,057 Credit Q203 Change Allowance preferred $88,317 $71,817 Liquidity 7,675 Ratio Facitlity $Sh
Slide 8: Credit: positive earnings momentum from allowance and revenue recognition
Credit Q204/Q104 Net Other Provision Allowance Reported Finance Q204 $ Amounts but 8 %not Charge-offs Q104 2.4 and Recognized Charge Loans $30+ Charge-off Billed 1.3 for composition for (Release)/Build 1,425 $Change Q204/Q104 Loan 1.1 % Loan Day Delinquency & $34,551 to $799.5 or 85 1,495 Fee Custom
Slide 9: Credit performance trends drove provision and suppression down
Favorable Loan Revenue Balance Portfolio Higher $30+ Performance Late Lower Improved Net 9 charge-offs Change stage Loss Delinquencies billings credit growth Suppression credit collectibility portfolio delinquencies Provision qualityand (reported) loans (managed) performance trends drove provision a
Slide 10: Second quarter Financial and Business Update
Second quarter Financial Business 10 Update Update 2004
Slide 11: Managed loans and net income by segment
Managed Net Q204 Q204/Q203Change US Global Auto Other Total (1) (2) (3) 11 The Based Global Card Income Finance Consolidated Q104 (3) Financial Other $45,247 $384.1 14 (75.5) loan Loans(1) on Financial After Q203 42 internal 9,383 52.7 caption &(8) (17.6) $386.8 Services profit $45,298 Tax(1) $% 30.
Slide 12: Managed charge-off rate continued to improve
The7% Monthly 8% Apr-03 Quarterly 4.17% 12 steady May-03 6% Managed Charge-off improvement 5% 4% Jun-03 Net 3% Rate: Charge-off 2% Jul-03 in 6.32% 1% theAug-03 0% managed 5.44% RateSep-03 charge-off 5.32%Oct-03 4.83% rate Nov-03 4.42% continued Dec-03 in Q204 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-0
Slide 13: Managed 30+ day delinquency rate is stabilizing
Managed Monthly 8% Apr-03 13 3.76% 7% May-03 6% Managed 30+ 5%delinquency 4% Jun-03 $30+ 3% 2% Jul-03 Dayrate 1% Delinquency Aug-03 0% is stabilizing Sep-03 Rate atOct-03 historically Nov-03lowDec-03 levels Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04
Slide 14: US Card
US Card $50 Net $450 7.72% Managed 9% Q103 5.55% 14 8% Income $45 $400 Q203 7.63% 5.42% 7% $40 continued Loans Net $30+ $350 6% After Q303 $35 Charge-off 6.16% 4.88% Delinquency 5% ($B) $300 $30 Tax Q403 4% to4.60% 6.16% $25 deliver ($M) $250 3% Q104 Rate $20 2% $200 5.41% 3.99% Rate strong $15 Q204
Slide 15: Global Financial Services
Global $20 Net $60 3.95% Managed 5% Q103 2.98% 15 4% Income $18 $50 Q203 3.95% 2.81% Financial 3% $16 $40 Loans Net $30+ 2% After Q303 $14 $30 Charge-off 3.78% 2.87% Delinquency 1% ($B) Services $12 $20 Tax Q403 0%3.69% 2.70% $10 ($M) Q104 Rate $8 $0 continued 3.60% 2.63% Rate $6Q204 $4 2.50% 3.43%
Slide 16: Auto Finance
Auto7% Net $60 ($6.5) 4.91% Managed 8% Q103 5.37% 16 Income $50 Finance Q203 $44.0 4.22% 6.97% 6% $40 Loans Net $30+ 5% After Q303 $27.3 $30 Charge-off delivered 5.10% 7.07% Delinquency 4% ($B) $20 Tax Q403 $34.4 3%4.30% 7.55% $10 ($M) 2% aQ104 $30.7 Rate seasonally $8 $01% 4.13% 5.44% Rate $6 ($10)
Slide 17: Diversification and mid-teens growth momentum in 2004 and 2005
We have Mid-teens Moderate Strong Bias 1.6% Charge-off Continued Diversification 38% 24% Deposits 17 toward of ROA growth managed profits positioned 27% growth loan diversification and target lower of in businesses growth expense total Auto loans inloss Capital USliabilities and rate assets Card red