FALLS CHURCH, Va., Jan. 18 /PRNewswire/ --
Capital One Financial Corporation (NYSE: COF) today announced that it sold
6.5 million shares of newly issued, freely tradeable common stock to J.P.
Morgan Securities Inc. raising approximately $400 million in new equity
capital. J.P. Morgan is expected to re-offer the shares to investors. J.P.
Morgan has the right to purchase an additional 975,000 shares during the next
30 days, solely to cover over-allotments. This transaction marks the first
time that Capital One has raised equity capital through the sale of newly
issued common stock since the company's initial public offering in 1994.
The proceeds raised in this transaction will be used to support future
growth and for general corporate purposes. Closing of the sale of common
stock is expected to occur on January 23, 2001.
"As previously announced, we expect to achieve 30 percent earnings growth
and at least 20 percent return on equity for the year 2001," said Richard D.
Fairbank, Chairman and Chief Executive Officer. Achieving these targets would
mark the seventh consecutive year Capital One has exceeded its twin long-term
objectives of at least 20 percent annual earnings growth and at least
20 percent return on equity.
The company cautioned, however, that its current expectations for
2001 earnings and return on equity are forward-looking statements and actual
results could differ materially from current expectations due to a number of
factors, including: competition in the credit card industry; the actual
account and balance growth achieved by the company; the company's ability to
access the capital markets at attractive rates and terms to fund its
operations and future growth; and general economic conditions affecting
consumer income and spending, which may affect consumer bankruptcies, defaults
and charge-offs. A discussion of these and other factors can be found in
Capital One's annual and other reports, filed with the Securities and Exchange
Commission, including, but not limited to, Capital One's report on Form 10-K
for the year ended December 31, 1999.
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 33.8 million customers and
$29.5 billion in managed loans outstanding as of December 31, 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 on line. 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.
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