FALLS CHURCH, Va., Oct. 11 /PRNewswire/ -- Capital One Financial
Corporation (NYSE: COF) today announced record third quarter 2000 earnings of
$0.58 per share, or $122.1 million, versus earnings of $0.45 per share, or
$95.4 million, for the comparable period in the prior year, an increase of 29
percent.
"This year continues to be a banner year for Capital One, as our
disciplined marketing strategies and investments are creating great value for
our customers. This quarter we posted our thirteenth consecutive quarter of
record earnings, and we are on track to deliver 30 percent earnings growth for
the year," said Richard D. Fairbank, Capital One's Chairman and Chief
Executive Officer. Fairbank cited the risk-adjusted margin, which reached an
all time record of 17.24 percent, up from the previous record of 17.03 percent
set last quarter, as a key measurement of Capital One's success.
During the third quarter, Capital One added 2.3 million net new accounts,
bringing total accounts to 29.4 million. For the quarter, Capital One's
managed consumer loan balances increased by $2.3 billion to $24.2 billion. On
the Internet, online account originations and online account servicing
increased to 760 thousand and 1.2 million, respectively, as of the end of the
third quarter.
"Our robust growth reflects our ability to bring empowering financial
solutions to our more than 29 million customers, while delivering unique
products and services to meet their individual needs," said Nigel W. Morris,
Capital One's President and Chief Operating Officer. "Our ability to deliver
the right product to the right customer allowed us to add more than 25,000 net
new customers a day and grow our managed loans during the quarter by an
annualized rate of more than 40 percent."
Contributing to the strong account and managed loan growth during the
quarter was an increase in marketing expense to a record $233 million compared
to $212 million in the second quarter of 2000 and $175 million in the
comparable period of the prior year.
The managed net charge-off ratio remained under four percent for the
seventh straight quarter and was 3.80 percent for the three months ended
September 30, 2000. In addition, the Company added $50 million to the
allowance for loan losses during the third quarter of 2000, increasing the
allowance to $457 million, or 3.71 percent of reported consumer loans, as of
September 30, 2000.
Headquartered in Falls Church, Virginia, Capital One Financial Corporation
(www.CapitalOne.com) is a holding company whose principal subsidiaries,
Capital One Bank and Capital One, F.S.B., offer consumer lending products.
Capital One's subsidiaries collectively had 29.4 million customers and $24.2
billion in managed loans outstanding as of September 30, 2000. Capital One is
one of the major financial service providers on the Internet, with online
account decisioning, real-time account numbering, online retail deposits and a
growing number of customers serviced online. Capital One is a FORTUNE 500
company that trades on the New York Stock Exchange under the symbol "COF" and
is included in the S&P 500 index.
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
2000 2000
(in millions, except per share data and as noted) Q3 Q2
Earnings (Managed Basis)
Net Interest Income $ 665.1 $ 614.4
Non-Interest Income 619.9 554.4
Total Revenue 1,285.0 1,168.8
Provision for Loan Losses 269.0 245.0
Marketing Expenses 233.2 211.6
Operating Expenses 585.8 530.7
Income Before Taxes 197.0 181.5
Tax Rate 38.0% 38.0%
Net Income $ 122.1 $ 112.5
Common Share Statistics
Basic EPS $ 0.62 $ 0.57
Diluted EPS $ 0.58 $ 0.54
Dividends Per Share $ 0.03 $ 0.03
Book Value Per Share (period end) $ 9.02 $ 8.39
Stock Price Per Share (period end) $ 70.06 $ 44.63
Total Market Capitalization (period end) $13,783.1 $ 8,747.4
Shares Outstanding (period end) 196.7 196.0
Shares Used to Compute Basic EPS 196.3 196.0
Shares Used to Compute Diluted EPS 210.1 208.6
Managed Loan Statistics (period avg.)
Average Loans $ 23,020 $ 20,915
Average Earning Assets $ 24,749 $ 22,581
Average Assets $ 27,015 $ 24,567
Average Equity $ 1,743 $ 1,626
Net Interest Margin 10.75% 10.88%
Risk Adjusted Margin(1) 17.24% 17.03%
Return on Average Assets (ROA) 1.81% 1.83%
Return on Average Equity (ROE) 28.02% 27.68%
Net Charge-Off Rate 3.80% 3.97%
Net Charge-Offs $ 218.4 $ 207.6
Cost Per Account (in dollars) $ 82.84 $ 80.97
Managed Loan Statistics (period end)
Reported Loans $ 12,331 $ 11,383
Securitized Loans 11,821 10,500
Total Loans $ 24,152 $ 21,883
Delinquency Rate (30+ days) 5.32% 5.35%
Number of Accounts (000's) 29,437 27,133
Total Assets $ 28,185 $ 25,610
Capital, Including Preferred Interests $ 1,873.8 $ 1,743.9
Capital to Managed Assets Ratio 6.65% 6.81%
(1) Risk adjusted margin is total revenue less net charge-offs as a
percentage of average earning assets.
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
2000 1999
(in millions, except per share data and as noted) Q1 Q4
Earnings (Managed Basis)
Net Interest Income $ 618.9 $ 574.8
Non-Interest Income 489.3 473.6
Total Revenue 1,108.2 1,048.4
Provision for Loan Losses 226.1 218.0
Marketing Expenses 201.9 202.4
Operating Expenses 508.0 478.8
Income Before Taxes 172.1 149.2
Tax Rate 38.0% 34.4%
Net Income $ 106.7 $ 97.9
Common Share Statistics
Basic EPS $ 0.54 $ 0.50
Diluted EPS $ 0.51 $ 0.47
Dividends Per Share $ 0.03 $ 0.03
Book Value Per Share (period end) $ 7.93 $ 7.69
Stock Price Per Share (period end) $ 47.94 $ 48.19
Total Market Capitalization (period end) $ 9,376.5 $ 9,495.2
Shares Outstanding (period end) 195.6 197.0
Shares Used to Compute Basic EPS 196.6 197.3
Shares Used to Compute Diluted EPS 208.7 210.3
Managed Loan Statistics (period avg.)
Average Loans $ 20,181 $ 18,974
Average Earning Assets $ 22,038 $ 21,323
Average Assets $ 23,497 $ 22,714
Average Equity $ 1,567 $ 1,493
Net Interest Margin 11.23% 10.78%
Risk Adjusted Margin(1) 16.57% 16.24%
Return on Average Assets (ROA) 1.82% 1.72%
Return on Average Equity (ROE) 27.24% 26.22%
Net Charge-Off Rate 3.87% 3.86%
Net Charge-Offs $ 195.3 $ 182.9
Cost Per Account (in dollars) $ 82.93 $ 85.98
Managed Loan Statistics (period end)
Reported Loans $ 9,449 $ 9,914
Securitized Loans 10,850 10,323
Total Loans $ 20,299 $ 20,237
Delinquency Rate (30+ days) 5.26% 5.23%
Number of Accounts (000's) 25,302 23,705
Total Assets $ 23,361 $ 23,638
Capital, Including Preferred Interests $ 1,649.3 $ 1,613.7
Capital to Managed Assets Ratio 7.06% 6.83%
(1) Risk adjusted margin is total revenue less net charge-offs as a
percentage of average earning assets.
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
1999
(in millions, except per share data and as noted) Q3
Earnings (Managed Basis)
Net Interest Income $ 558.9
Non-Interest Income 438.6
Total Revenue 997.5
Provision for Loan Losses 214.3
Marketing Expenses 175.2
Operating Expenses 454.3
Income Before Taxes 153.8
Tax Rate 38.0%
Net Income $ 95.4
Common Share Statistics
Basic EPS $ 0.48
Diluted EPS $ 0.45
Dividends Per Share $ 0.03
Book Value Per Share (period end) $ 7.29
Stock Price Per Share (period end) $ 39.00
Total Market Capitalization (period end) $ 7,686.9
Shares Outstanding (period end) 197.1
Shares Used to Compute Basic EPS 197.4
Shares Used to Compute Diluted EPS 210.1
Managed Loan Statistics (period avg.)
Average Loans $ 18,162
Average Earning Assets $ 20,060
Average Assets $ 21,563
Average Equity $ 1,461
Net Interest Margin 11.14%
Risk Adjusted Margin(1) 16.38%
Return on Average Assets (ROA) 1.77%
Return on Average Equity (ROE) 26.12%
Net Charge-Off Rate 3.88%
Net Charge-Offs $ 176.0
Cost Per Account (in dollars) $ 90.72
Managed Loan Statistics (period end)
Reported Loans $ 8,286
Securitized Loans 10,231
Total Loans $ 18,517
Delinquency Rate (30+ days) 5.06%
Number of Accounts (000's) 20,845
Total Assets $ 21,577
Capital, Including Preferred Interests $ 1,535.3
Capital to Managed Assets Ratio 7.12%
(1) Risk adjusted margin is total revenue less net charge-offs as a
percentage of average earning assets.
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)
September 30
2000
Assets:
Cash and due from banks $ 81,403
Federal funds sold and resale agreements 12,688
Interest-bearing deposits at other banks 128,377
Cash and cash equivalents 222,468
Securities available for sale 1,652,330
Consumer loans 12,331,088
Less: Allowance for loan losses (457,000)
Net loans 11,874,088
Premises and equipment, net 560,974
Interest receivable 93,817
Accounts receivable from securitizations 1,403,377
Other 571,771
Total assets $16,378,825
Liabilities:
Interest-bearing deposits $ 6,323,924
Other borrowings 2,820,533
Senior notes 4,119,101
Interest payable 109,842
Other 1,230,037
Total liabilities 14,603,437
Stockholders' Equity:
Common stock 1,997
Paid-in capital, net 559,595
Retained earnings and cumulative
other comprehensive income 1,322,744
Less: Treasury stock, at cost
(108,948)
Total stockholders' equity 1,775,388
Total liabilities and stockholders' equity $16,378,825
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)
June 30
2000
Assets:
Cash and due from banks $ 100,999
Federal funds sold and resale agreements 10,000
Interest-bearing deposits at other banks 78,226
Cash and cash equivalents 189,225
Securities available for sale 1,507,770
Consumer loans 11,382,780
Less: Allowance for loan losses (407,000)
Net loans 10,975,780
Premises and equipment, net 545,262
Interest receivable 51,799
Accounts receivable from securitizations 1,302,424
Other 554,631
Total assets $15,126,891
Liabilities:
Interest-bearing deposits $ 5,288,927
Other borrowings 2,773,050
Senior notes 4,176,394
Interest payable 96,493
Other 1,146,451
Total liabilities 13,481,315
Stockholders' Equity:
Common stock 1,997
Paid-in capital, net 578,915
Retained earnings and cumulative
other comprehensive income 1,197,370
Less: Treasury stock, at cost (132,706)
Total stockholders' equity 1,645,576
Total liabilities and stockholders' equity $15,126,891
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)
September 30
1999
Assets:
Cash and due from banks $ 59,934
Federal funds sold and resale agreements
Interest-bearing deposits at other banks 53,493
Cash and cash equivalents 113,427
Securities available for sale 1,708,609
Consumer loans 8,286,210
Less: Allowance for loan losses (306,000)
Net loans 7,980,210
Premises and equipment, net 429,504
Interest receivable 65,350
Accounts receivable from securitizations 614,962
Other 460,847
Total assets $11,372,909
Liabilities:
Interest-bearing deposits $ 3,576,400
Other borrowings 1,016,868
Senior notes 4,328,237
Interest payable 87,688
Other 926,535
Total liabilities 9,935,728
Stockholders' Equity:
Common stock 1,997
Paid-in capital, net 625,771
Retained earnings and cumulative
other comprehensive income 897,353
Less: Treasury stock, at cost (87,940)
Total stockholders' equity 1,437,181
Total liabilities and stockholders' equity $11,372,909
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
Three Months Ended
September 30 June 30
2000 2000
Interest Income:
Consumer loans, including fees $606,872 $511,886
Securities available for sale 23,367 22,845
Other 1,474 1,776
Total interest income 631,713 536,507
Interest Expense:
Deposits 90,197 63,619
Other borrowings 55,967 46,914
Senior notes 72,679 62,016
Total interest expense 218,843 172,549
Net interest income 412,870 363,958
Provision for loan losses 193,409 151,010
Net interest income after
provision for loan losses 219,461 212,948
Non-Interest Income:
Servicing and securitizations 307,343 282,640
Service charges and other fees 424,087 374,706
Interchange 65,039 53,461
Total non-interest income 796,469 710,807
Non-Interest Expense:
Salaries and associate benefits 264,171 236,618
Marketing 233,188 211,560
Communications and data processing 78,064 72,933
Supplies and equipment 66,325 58,167
Occupancy 30,721 27,250
Other 146,488 135,736
Total non-interest expense 818,957 742,264
Income before income taxes 196,973 181,491
Income taxes 74,850 68,966
Net income $122,123 $112,525
Basic earnings per share $ 0.62 $ 0.57
Diluted earnings per share $ 0.58 $ 0.54
Dividends paid per share $ 0.03 $ 0.03
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
Three Months Ended
September 30
1999
Interest Income:
Consumer loans, including fees $386,727
Securities available for sale 24,256
Other 1,053
Total interest income 412,036
Interest Expense:
Deposits 38,003
Other borrowings 20,824
Senior notes 76,980
Total interest expense 135,807
Net interest income 276,229
Provision for loan losses 114,061
Net interest income after
provision for loan losses 162,168
Non-Interest Income:
Servicing and securitizations 311,217
Service charges and other fees 275,900
Interchange 33,946
Total non-interest income 621,063
Non-Interest Expense:
Salaries and associate benefits 199,048
Marketing 175,163
Communications and data processing 68,755
Supplies and equipment 48,076
Occupancy 19,117
Other 119,262
Total non-interest expense 629,421
Income before income taxes 153,810
Income taxes 58,448
Net income $ 95,362
Basic earnings per share $ 0.48
Diluted earnings per share $ 0.45
Dividends paid per share $ 0.03
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
Nine Months Ended
September 30 September 30
2000 1999
Interest Income:
Consumer loans, including fees $1,607,695 $1,064,987
Securities available for sale 70,946 74,001
Other 5,026 3,892
Total interest income 1,683,667 1,142,880
Interest Expense:
Deposits 205,936 88,383
Other borrowings 144,335 67,572
Senior notes 203,071 230,129
Total interest expense 553,342 386,084
Net interest income 1,130,325 756,796
Provision for loan losses 470,944 262,948
Net interest income after
provision for loan losses 659,381 493,848
Non-Interest Income:
Servicing and securitizations 860,741 876,777
Service charges and other fees 1,140,025 743,227
Interchange 161,570 97,732
Total non-interest income 2,162,336 1,717,736
Non-Interest Expense:
Salaries and associate benefits 735,625 572,703
Marketing 646,686 529,493
Communications and data processing 221,819 189,305
Supplies and equipment 176,766 127,083
Occupancy 83,263 49,412
Other 406,982 315,815
Total non-interest expense 2,271,141 1,783,811
Income before income taxes 550,576 427,773
Income taxes 209,219 162,554
Net income $ 314,357 $ 265,219
Basic earnings per share $ 1.73 $ 1.34
Diluted earnings per share $ 1.63 $ 1.26
Dividends paid per share $ 0.08 $ 0.08
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Managed(1) Quarter Ended 09/30/00
Average Income/ Yield/
Balance Expense Rate
Earning assets:
Consumer loans $23,020,158 $1,039,473 18.06%
Securities available for sale 1,557,088 23,367 6.00
Other 171,881 1,474 3.43
Total earning assets $24,749,127 $1,064,314 17.20%
Interest-bearing liabilities:
Deposits $ 5,787,748 $ 90,197 6.23%
Other borrowings 3,084,407 55,967 7.26
Senior notes 4,139,665 72,679 7.02
Securitization liability 10,908,397 180,412 6.62
Total interest-bearing liabilities $23,920,217 $ 399,255 6.68%
Net interest spread 10.52%
Interest income to average earning assets 17.20%
Interest expense to average earning assets 6.45
Net interest margin 10.75%
(1) Information in this table reflects the adjustment to add back the
effect of securitized loans.
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Managed(1) Quarter Ended 06/30/00
Average Income/ Yield/
Balance Expense Rate
Earning assets:
Consumer loans $20,915,125 $937,935 17.94%
Securities available for sale 1,519,369 22,845 6.01
Other 146,760 1,776 4.84
Total earning assets $22,581,254 $962,556 17.05%
Interest-bearing liabilities:
Deposits $ 4,495,242 $ 63,619 5.66%
Other borrowings 2,687,569 46,914 6.98
Senior notes 3,659,603 62,016 6.78
Securitization liability 10,870,733 175,655 6.46
Total interest-bearing liabilities $21,713,147 $348,204 6.41%
Net interest spread 10.64%
Interest income to average earning assets 17.05%
Interest expense to average earning assets 6.17
Net interest margin 10.88%
(1) Information in this table reflects the adjustment to add back the
effect of securitized loans.
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Managed(1) Quarter Ended 09/30/99
Average Income/ Yield/
Balance Expense Rate
Earning assets:
Consumer loans $18,161,975 $813,643 17.92%
Securities available for sale 1,683,839 24,256 5.76
Other 213,784 845 1.58
Total earning assets $20,059,598 $838,744 16.72%
Interest-bearing liabilities:
Deposits $ 3,001,711 $ 38,003 5.06%
Other borrowings 1,333,434 20,824 6.25
Senior notes 4,494,440 76,980 6.85
Securitization liability 10,343,724 144,048 5.57
Total interest-bearing liabilities $19,173,309 $279,855 5.84%
Net interest spread 10.88%
Interest income to average earning assets 16.72%
Interest expense to average earning assets 5.58
Net interest margin 11.14%
(1) Information in this table reflects the adjustment to add back the
effect of securitized loans.
SOURCE Capital One Financial Corporation
CONTACT: Paul Paquin, V.P., Investor Relations, 703-205-1039, or Tatiana
Stead, Media Relations, 703-205-1070, both of Capital One Financial
Corporation/
