Slide 1: Fourth Quarter 2011 Results
Exhibit 99.3 Fourth Quarter 2011 Results January 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: Fourth Quarter and Full Year 2011 Highlights
Fourth Quarter and Full Year 2011 Highlights • Q4 2011 net income was $407MM or $0.88 per share – 5% loan growth over Q311 – Slightly lower revenue due to impact of UK reserve and the absence of Q311 FCFR release – Higher non-interest expense driven by increased marketing & operating expenses, inclu
Slide 4: Fourth Quarter 2011 earnings were $407MM, or $0.88 per share
Fourth Quarter 2011 earnings were $407MM, or $0.88 per share, compared with $813MM, or $1.77 per share, in Third Quarter 2011 Q411 Q311 Q410 Highlights $MM Net interest income 3,182 3,283 3,023 Non-interest income 868 871 939 Revenue 4,050 4,154 3,962 • Revenue negatively impacted by absence of Q311
Slide 5: Loan balances increased and net interest margin was stable in the fourth quarter
Loan balances increased and net interest margin was stable in the fourth quarter Average Balances & Margin Highlights Quarter Ended 12/31/11 Quarter Ended 09/30/11 Average Yield/ Average Yield/ (Dollars in millions) Balance Rate Balance Rate Interest-earning assets: Loans held for investment $ 131,5
Slide 6: Full year 2011 earnings were $3,147MM, or $6.80 per share
Full year 2011 earnings were $3,147MM, or $6.80 per share, compared with $2,743MM, or $6.01 per share, in full year 2010 2011 2010 Fav/(Unfav) ($) $MM Net interest income 12,741 12,457 284 Non-interest income 3,538 3,714 (176) Revenue 16,279 16,171 108 Marketing expense 1,337 958 (379) Operating exp
Slide 7: Our capital position remains strong
Our capital position remains strong 1 Tier 1 Common Equity to Risk-Weighted Assets (Basel I) 12% 2 10.0% 2 10% 9.4% 9.7% 8.8% 8.4% 8% 6% 4% 2% 0% ($B) Q410 Q111 Q211 Q311 Q411 Tier 1 Common excluding disallowed DTA 12.4 13.4 14.3 15.1 15.6 Disallowed DTA (1.2) (1.4) (0.6) (0.2) (0.5) Tier 1 Common 1
Slide 8: Loan balances grew across all business segments in the fourth quarter and the full year
Loan balances grew across all business segments in the fourth quarter and the full year Credit Card Consumer Banking $M 80 $M 50 70 45 1,927 Installment 40 2,760 2,310 60 3,879 8,466 loans 3,272 7,522 8,711 8,210 International 35 4,103 Retail 4,046 4,014 8,735 4,413 4,223 50 Banking 30 10,433 40 10,
Slide 9: Consumer credit is exhibiting expected seasonal patterns
Consumer credit is exhibiting expected seasonal patterns Domestic Credit Card ($54.4B*) International Credit Card ($8.4B*) 11% 10% Net Charge-off Rate 10% 9% 9% 8% 7.28% 7.02% 8% 6.68% Net Charge-off Rate 7% 6.15% 7% 6.20% 5.74% 5.77% 6% 6% 4.74% 5% 5.75% 5% 3.92% 4.07% 5.55% 5.30% 5.35% 4% 5.18% 4%
Slide 10: Commercial Banking credit metrics have stabilized and improved over the last five quarters
Commercial Banking credit metrics have stabilized and improved over the last five quarters Total Commercial Lending Total Commercial Banking ($32.6B*) Excluding Small Ticket CRE ($31.0B*) 5% 5% 4% 4% Nonperforming Nonperforming Asset Rate 3% Asset Rate 3% 1.80% 1.95% 1.76% 1.86% 1.71% 2% 1.66% 1.55%
Slide 11: We are in a strong position to deliver sustained shareholder value
We are in a strong position to deliver sustained shareholder value 2011 Results Outlook • Strong and stable margins and revenue • Expect acquisitions will have significant impacts • Significant credit improvement offset on reported results, especially in 2012 growth in non-interest expense – Purchas
Slide 12: Capital One
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