Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q1 2005 Earnings Presentation
16 slides from Capital One Financial's earnings presentation, Apr 20, 2005
Slide 1: First Quarter 2005 Results
CapitalQjc’ | first quarter 2005 results April 20, 2005 (Capa) | st quarter 2005 rests
Slide 2: Forward-Looking Statements
Forward-Looking Please does Certain outlook expectations, looking, to compete consumer industry rates company’s marketing One that maintain not should Corporation. presentation Relations Additional In Form holders proxy it Regulatory merger. Hibernia Capital definitive 2 isdiffer connection limited
Slide 3: Strong results in the first quarter of 2005
Capitalmanaged Q105 $81.6 Diversification Strong Continued 3 diluted billion & One stable strength delivered in EPSbeyond ROA managed credit ofin$1.99 of liquidity strong quality US 2.04% loans Card results and and continuing margins capital in the first to deliver quartergrowth of 2005and profits
Slide 4: We are well positioned to deliver strong performance
We are 2005 12-15% Continued Overall Auto Managed Modest Annual Continuing 4 Profits Liabilities AssetsExpectations Finance well stability US declines Loan ROA asset Diversification Card positioned and Growth between diversification with in growth Global (excluding revenue quarter Rate to1.7% in-lin
Slide 5: We recently announced the acquisition of Hibernia
We recently Hibernia $17.6 $5.3 Key Expected Strategic Numerous Further Lowers Enhances 5 management billion billion diversifies overall Acquisition Impact to long-term funding estimated be close announced in accretive risk deposits retained inassets benefits profile earnings the purchase the third
Slide 6: We are affirming Capital One 2005 EPS guidance
We are Capital Assumptions Full-year Share-count 2005 6 EPS affirming One earnings Guidance completes includes our include of 2005 the the $6.60 conversion pro acquisition EPS- rata $7.00 Guidance Hibernia ofofmandatory Hibernia earnings in convertible the based third onquarter securities IBES estim
Slide 7: First Quarter Financial Update
First Quarter Financial Segment 7 Update Update 2005
Slide 8: Capital One Managed Q105/Q104 income statement
Capital Managed Q105/Q104 Q105 Non-Interest Total Allowance Other Provision Marketing Operating Tax Net Shares Diluted Revenue ROA 8 Interest Charge-offs Income Rate Revenue 2.04 Q404 (5.6) Used One EPS Margin 35.8% Income for Expenses 0.83 Expenses Build/(Release) 12.1 After Income Q104 Change deli
Slide 9: Change in managed to reported amounts
Change Other Managed Allowance Reported Finance Q105 Amounts but 9 notQ404 (5.6) Recognized Charge Loans $30+ Net Billed Provision and Build/(Release) for 12.1 $ Charge-off Change Charge-offs %/bps Loan Day Delinquency revenue & $37,959 to 17.7 Fee Customers as for Delinquencies $Losses n/a % Revenu
Slide 10: Our credit metrics reflect strong and stable credit quality
Our7% Quarterly Charge-off Monthly 4.35% 8% Jun-03 10 3.45% credit Sep-03 6%Managed 5.44% metrics Rate 5%Dec-03 4% 5.32% reflect Net $30+ 3%Mar-04 Charge-off 2% 4.83% Day strong 1%Delinquency Jun-04 4.42% 0% and Rate stable 4.05% Sep-04 Rate credit 4.37% Dec-04 quality 4.13% Mar-05
Slide 11: Our balance sheet remains strong
OurIncludes Managed Loans Capital(1) Capital (1) convertible Available Q105/Q104 Q105 Cash Untapped Unsecured Total 11 managed Assets Available and Q404 $81,592 toSecurities plus Balance Liquidity Assets Conduit 9,839 Credit securities. Q104 Change Allowance preferred $98,724 balance $79,861 Liquidi
Slide 12: First Quarter Segment Update
First Quarter Financial Segment 12 Update Update 2005
Slide 13: US Card continued to deliver strong results
US Based Net 7% 4.73% 4.93% 4.68% 5.19% 5.41% 6.16% Managed 9% Q403 (1) 3.66% 3.97% 4.14% 3.95% 3.99% 4.60% 13 Card 6% 8% Income Q104 5% 7%continued Net Loans $30+ on6% 4% After Q204 internal Charge-off Delinquency 3% 5% ($B) Tax(1) Q304 2% 4% toallocations $50 deliver 1% 3% Q404 ($M) Rate $45 0% 2%
Slide 14: Global Financial Services results
Global Net 3.55% 3.30% 3.26% 3.43% 3.60% 3.69% Managed 5% Q403 (1) 3.04% 2.81% 2.65% 2.50% 2.63% 2.70% 14 Based 4% Income Q104 Financial 3%Net Loans $30+ on2% After Q204 internal Charge-off Delinquency 1% ($B) Services Tax(1) Q304 0%allocations $20Q404 ($M) Rate $15 continued Rate $10 Q105 $100 of$5
Slide 15: Auto Finance delivered solid results
Auto Net 2.89% 3.87% 2.63% 2.53% 4.13% 4.30% Managed 8% Q403 (1) 3.51% 5.50% 5.54% 5.59% 5.44% 7.55% 15 Based 7% Income Finance Q104 6%Net Loans $30+ on5% After Q204 internal Charge-off delivered Delinquency 4% ($B) Tax(1) Q304 3%allocations $14 2% strong Q404 ($M) Rate $12 1% Rate $10 Q105 loan $60
Slide 16: We are continuing to deliver strong results
We areto Strong Solid 12-15% 1.7% Sustained Lower-Risk Continuing Lower-cost, 16 growth 2005 Quarter and balance delivering 1.8% loan earnings Trajectory stable diversification Profile more growth in managed sheet loans, credit strong fortified power rate revenues ROA quality results of funding asse
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