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36% EPS Increase Over Year Ago Period 2004 Earnings Guidance Unchanged
MCLEAN, Va., Apr 21, 2004 /PRNewswire-FirstCall via COMTEX/ -- Capital One Financial
Corporation (NYSE: COF) today announced that its fully diluted earnings per
share for the first quarter of 2004 increased by 36 percent over the first
quarter of 2003. The company has left unchanged its 2004 earnings guidance of
$5.30 to $5.60 per share (fully diluted).
Earnings for the first quarter of 2004 were $450.8 million, or $1.84 per
share (fully diluted), compared with earnings of $308.5 million, or $1.35 per
share, for the first quarter of 2003 and $265.7 million, or $1.11 per share,
in the previous quarter.
"We are pleased to report record earnings in the first quarter, which
reflects strong credit performance and increased profitability of our
diversified businesses," said Richard D. Fairbank, Capital One's Chairman and
Chief Executive Officer. "We expect that the pattern of earnings reported
this year will be similar to that of last year, starting with the highest
earnings in the first quarter and moderating earnings as the year progresses."
During the first quarter of 2004, Capital One grew its managed loan
portfolio by $572.1 million to $71.8 billion. The managed charge-off rate
declined to 4.83 percent in the first quarter of 2004, from 5.32 percent in
the previous quarter and 6.47 percent in the first quarter of 2003. The
managed delinquency rate (30+ days) declined to 3.80 percent as of
March 31, 2004 from 4.46 percent as of the end of the previous quarter and
4.97 percent as of March 31, 2003.
The company continues to diversify its portfolio and earnings beyond U.S.
credit cards and shift its product mix upmarket. As a result, Capital One's
managed revenue margin declined to 13.38 percent in the first quarter of 2004
from 13.89 percent in the previous quarter and 15.70 percent in the first
quarter of 2003. As the company continues its asset diversification and its
shift upmarket, management expects revenue margins to continue to trend
somewhat lower in 2004. At the same time, declining credit losses and other
expenses are expected to leave the company's return on managed assets
relatively stable for the full year of 2004 as compared with 2003. The
company expects its charge-off rate for the remaining three quarters of 2004
to be between four and five percent.
"The decline in the managed delinquency rate (30+ days) to 3.80 percent at
the end of the first quarter from 4.46 percent the end of the previous quarter
is a key driver of our reduced provisioning expense," said Gary L. Perlin,
Capital One's Chief Financial Officer. "This decline, along with our
expectation of little to no growth in the subprime portion of the company's
credit card portfolio, leads us to expect that our allowance for loan losses
will continue to move somewhat lower in the near term."
The company generates earnings from its managed loan portfolio, which
includes both on-balance sheet loans and securitized loans. For this reason,
the company believes managed financial measures to be useful to stakeholders.
In compliance with Regulation G of the Securities and Exchange Commission, the
company is providing a numerical reconciliation of managed financial measures
to comparable measures calculated on a reported basis using generally accepted
accounting principles (GAAP). Please see the schedule titled "Reconciliation
to GAAP Financial Measures" below for more information.
The company cautions that its current expectations in this release, in the
presentation slides available on the company's website (www.capitalone.com),
and on its Form 10-K for the fiscal year ended December 31, 2003, for 2004
earnings, charge-off rates, revenue margins, allowance for loan losses, loan
growth, and the composition of loan growth are forward-looking statements and
actual results could differ materially from current expectations due to a
number of factors, including: continued intense competition from numerous
providers of products and services which compete with our businesses; changes
in our aggregate accounts and balances, and the growth rate and composition
thereof; the company's ability to continue to diversify its assets; 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 report 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 fiscal year ended December 31, 2003.
About Capital One
Headquartered in McLean, 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 and
Capital One Auto Finance, Inc., offers automobile and other motor vehicle
financing products. Capital One's subsidiaries collectively had 46.7 million
managed accounts and $71.8 billion in managed loans outstanding as of March
31, 2004. Capital One, a Fortune 500 company, is one of the largest providers
of MasterCard and Visa credit cards in the world. Capital One trades on the
New York Stock Exchange under the symbol "COF" and is included in the S&P 500
index.
NOTE: First quarter 2004 financial results, SEC Filings, and first quarter
earnings conference call slides are accessible on Capital One's home page
(www.capitalone.com). Choose "Investors" under "Company Information" on the
left side of the page to view and download the earnings press release, slides,
and other financial information. Additionally, a webcast of today's 5:00 p.m.
(EDT) earnings conference call is accessible through the same link.
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY REPORTED BASIS
2004 2003 2003
(in millions, except per share data
and as noted) Q1 Q4 Q1
Earnings (Reported Basis)
Net Interest Income $732.0 $664.1 $734.8
Non-Interest Income 1,443.1 1,437.5 1,304.6
Total Revenue(1) 2,175.1 2,101.6 2,039.4
Provision for Loan Losses 243.7 390.4 375.9
Marketing Expenses 255.1 290.1 241.7
Operating Expenses 969.7 999.3 932.2
Income Before Taxes and Accounting
Change 706.6 421.7 489.6
Tax Rate 36.2 % 37.0 % 37.0 %
Cumulative Effect of Accounting
Change, net of tax(2) - - -
Net Income $450.8 $265.7 $308.5
Common Share Statistics
Basic EPS $1.94 $1.16 $1.38
Diluted EPS $1.84 $1.11 $1.35
Dividends Per Share $0.03 $0.03 $0.03
Book Value Per Share (period end) $28.54 $25.75 $21.78
Stock Price Per Share (period end) $75.43 $61.29 $30.01
Total Market Capitalization
(period end) $18,084.9 $14,405.7 $6,791.8
Shares Outstanding (period end) 239.8 235.0 226.3
Shares Used to Compute Basic EPS 232.0 228.1 223.0
Shares Used to Compute Diluted EPS 245.4 239.2 228.4
Reported Balance Sheet Statistics
(period avg.)
Average Loans $32,878 $31,297 $27,316
Average Earning Assets $44,112 $40,792 $34,144
Average Assets $47,699 $45,002 $38,318
Average Equity $6,443 $5,887 $4,823
Return on Average Assets (ROA) 3.78 % 2.36 % 3.22 %
Return on Average Equity (ROE) 27.99 % 18.05 % 25.59 %
Reported Balance Sheet Statistics
(period end)
Loans $33,172 $32,850 $27,634
Total Assets $49,146 $46,284 $37,911
Capital(3) $7,675 $6,882 $5,749
Loan growth $321 $2,232 $290
% Loan Growth Q Over Q (annualized) 4 % 29 % 4 %
% Loan Growth Y Over Y 20 % 20 % 15 %
Capital to Assets Ratio 15.62 % 14.87 % 15.16 %
Capital plus Allowance to Assets
Ratio 18.66 % 18.31 % 19.48 %
Revenue & Expense Statistics
(Reported)
Net Interest Income Growth
(annualized) 41 % (23)% 2 %
Non Interest Income Growth
(annualized) 2 % 22 % (5)%
Revenue Growth (annualized) 14 % 7 % (2)%
Net Interest Margin 6.64 % 6.51 % 8.61 %
Revenue Margin 19.72 % 20.61 % 23.89 %
Risk Adjusted Margin(4) 16.62 % 17.02 % 18.49 %
Loan Revenue Margin(5) 26.44 % 26.78 % 29.73 %
Loan Risk Adjusted Margin(6) 22.27 % 22.10 % 22.97 %
Operating Expense as a % of Revenues 44.58 % 47.55 % 45.71 %
Operating Expense as a % of Avg
Loans (annualized) 11.80 % 12.77 % 13.65 %
Asset Quality Statistics (Reported)
Allowance $1,495 $1,595 $1,635
30+ Day Delinquencies $1,266 $1,573 $1,490
Net Charge-Offs $342 $366 $462
Allowance as a % of Reported Loans 4.51 % 4.86 % 5.92 %
Delinquency Rate (30+ days) 3.82 % 4.79 % 5.39 %
Net Charge-Off Rate 4.17 % 4.68 % 6.76 %
(1) In accordance with the Company's finance charge and fee revenue
recognition policy, the amounts billed to customers
but not recognized as revenue were as follows: Q1 2004 - $258.9
million, Q4 2003 - $454.8 million, Q3 2003 - $481.0 million,
Q2 2003 - $497.3 million, and Q1 2003 - $519.7 million.
(2) Net charge from the adoption of FASB Interpretation No. 46,
Consolidation of Variable Interest Entities.
(3) Includes preferred interests and mandatory convertible securities.
(4) Risk adjusted margin is total revenue less net charge-offs as a
percentage of average earning assets.
(5) Loan revenue margin is total loan revenue, loan interest income less
interest expense plus non-interest income, as a percent of average
loans outstanding for the period. Loan interest expense is calculated
using the cost of funds rate applied to the average consumer loan
balance.
(6) Loan risk adjusted margin is total loan revenue, loan net interest
income and non-interest income, less net charge-offs as a percentage
of average loans outstanding for the period.
Note: Additional historical financial and statistical information can be
found on Capital One's home page (http://www.capitalone.com).
Choose "Investors" under "Company Information" on the left
side of the page to view and download the earnings press
release.
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY MANAGED BASIS(1)
2004 2003 2003
(in millions, except per share
data and as noted) Q1 Q4 Q1
Earnings (Managed Basis)
Net Interest Income $1,677.1 $1,571.7 $1,508.0
Non-Interest Income 1,014.5 1,077.5 1,027.9
Total Revenue(2) 2,691.6 2,649.2 2,535.9
Provision for Loan Losses 760.1 938.0 872.3
Marketing Expenses 255.1 290.1 241.7
Operating Expenses 969.7 999.3 932.2
Income Before Taxes and
Accounting Change 706.6 421.7 489.6
Tax Rate 36.2 % 37.0 % 37.0 %
Cumulative Effect of Accounting
Change, net of tax(3) - - -
Net Income $450.8 $265.7 $308.5
Managed Balance Sheet Statistics
(period avg.)
Average Loans $71,148 $68,679 $59,250
Average Earning Assets $80,495 $76,277 $64,602
Average Assets $85,324 $81,733 $69,670
Return on Average Assets (ROA) 2.11 % 1.30 % 1.77 %
Managed Balance Sheet Statistics
(period end)
Loans $71,817 $71,245 $59,214
Total Assets $87,197 $83,999 $68,927
Loan Growth $572 $3,985 $(533)
% Loan Growth Q over Q (annualized) 3 % 24 % (4)%
% Loan Growth Y over Y 21 % 19 % 22 %
Capital to Assets Ratio 8.80 % 8.19 % 8.34 %
Capital plus Allowance to
Assets Ratio 10.52 % 10.09 % 10.71 %
Number of Accounts (000's) 46,712 47,038 46,423
% Off-Balance Sheet Securitizations 53 % 53 % 53 %
% at Introductory Rate 8 % 10 % 9 %
Revenue & Expense Statistics (Managed)
Net Interest Income Growth
(annualized) 27 % 19 % 18 %
Non Interest Income Growth
(annualized) (23)% 11 % (22)%
Revenue Growth (annualized) 6 % 16 % 1 %
Net Interest Margin 8.33 % 8.24 % 9.34 %
Revenue Margin 13.38 % 13.89 % 15.70 %
Risk Adjusted Margin(4) 9.11 % 9.10 % 9.77 %
Loan Revenue Margin(5) 15.26 % 15.54 % 17.20 %
Loan Risk Adjusted Margin(6) 10.43 % 10.22 % 10.73 %
Operating Expense as a % of Revenues 36.03 % 37.72 % 36.76 %
Operating Expense as a % of Avg Loans
(annualized) 5.45 % 5.82 % 6.29 %
Asset Quality Statistics (Managed)
30+ Day Delinquencies $2,731 $3,178 $2,942
Net Charge-Offs $859 $914 $958
Delinquency Rate (30+ days) 3.80 % 4.46 % 4.97 %
Net Charge-Off Rate 4.83 % 5.32 % 6.47 %
(1) The information in this statistical summary reflects the adjustment to
add back the effect of securitization transactions qualifying as sales
under generally accepted accounting principles. See accompanying
schedule -- "Reconciliation to GAAP Financial Measures."
(2) In accordance with the Company's finance charge and fee revenue
recognition policy, the amounts billed to customers but not recognized
as revenue were as follows: Q1 2004 - $258.9 million, Q4 2003 -
$454.8 million, Q3 2003 - $481.0 million, Q2 2003 - $497.3 million,
and Q1 2003 - $519.7 million.
(3) Net charge from the adoption of FASB Interpretation No. 46,
Consolidation of Variable Interest Entities.
(4) Risk adjusted margin is total revenue less net charge-offs as a
percentage of average earning assets.
(5) Loan revenue margin is total loan revenue, loan interest income less
interest expense plus non-interest income, as a percent of average
loans outstanding for the period. Loan interest expense is calculated
using the cost of funds rate applied to the average consumer loan
balance.
(6) Loan risk adjusted margin is total loan revenue, loan net interest
income and non-interest income, less net charge-offs as a percentage
of average loans outstanding for the period.
Note: Additional historical financial and statistical information can be
found on Capital One's home page (http://www.capitalone.com).
Choose "Investors" under "Company Information" on the left
side of the page to view and download the earnings press release.
CAPITAL ONE FINANCIAL CORPORATION (COF)
SEGMENT FINANCIAL & STATISTICAL SUMMARY - MANAGED BASIS(1)
2004 2003 2003
(in millions, except per share data
and as noted) Q1 Q4 Q1
Segment Statistics
US Card:
Loans receivable $45,298 $46,279 $38,737
Net income (loss) $386.8 $322.7 $308.1
Net charge-off rate 5.41 % 6.16 % 7.72 %
Delinquency Rate (30+ days) 3.99 % 4.60 % 5.55 %
Auto Finance:
Loans receivable $8,834 $8,467 $7,742
Net income (loss) $30.7 $34.4 $(6.5)
Net charge-off rate 4.13 % 4.30 % 4.91 %
Delinquency Rate (30+ days) 5.44 % 7.55 % 5.37 %
Global Financial Services:
Loans receivable $17,643 $16,508 $12,726
Net income (loss) $50.9 $3.3 $14.9
Net charge-off rate 3.60 % 3.69 % 3.95 %
Delinquency Rate (30+ days) 2.63 % 2.70 % 2.98 %
(1) The information in this statistical summary reflects the adjustment
to add back the effect of securitization transactions qualifying as
sales under generally accepted accounting principles. See
accompanying schedule -- "Reconciliation to GAAP Financial Measures".
Note: Additional historical financial and statistical information can be
found on Capital One's home page (http://www.capitalone.com).
Choose "Investors" under "Company Information" on the left
side of the page to view and download the earnings press release.
CAPITAL ONE FINANCIAL CORPORATION
Reconciliation to GAAP Financial Measures
For the Three Months Ended March 31, 2004
(dollars in thousands)(unaudited)
The Company's consolidated financial statements prepared in accordance
with generally accepted accounting principles ("GAAP") are referred to as its
"reported" financial statements. Loans included in securitization
transactions which qualified as sales under GAAP have been removed from the
Company's "reported" balance sheet. However, interest income, interchange,
fees and recoveries generated from the securitized loan portfolio net of
charge-offs in excess of the interest paid to investors of asset-backed
securitizations are recognized as non-interest income on the "reported" income
statement.
The Company's "managed" consolidated financial statements add back the
effects of securitization transactions qualifying as sales under GAAP. The
Company generates earnings from its "managed" loan portfolio which includes
both the on-balance sheet loans and off-balance sheet loans. The Company's
"managed" income statement takes the components of the non-interest income
generated from the securitized portfolio and distributes the revenue to
appropriate income statement line items from which it originated. For this
reason the Company believes the "managed" consolidated financial statements
and related managed metrics to be useful to stakeholders.
Total Adjustments(1) Total
Reported Managed(2)
Income Statement Measures
Net interest income $732,022 $945,056 $1,677,078
Non-interest income $1,443,134 $(428,598) $1,014,536
Total revenue $2,175,156 $516,458 $2,691,614
Provision for loan losses $243,668 $516,458 $760,126
Net charge-offs $342,391 $516,458 $858,849
Balance Sheet Measures
Consumer loans $33,171,516 $38,645,386 $71,816,902
Total assets $49,146,425 $38,050,487 $87,196,912
Average consumer loans $32,877,525 $38,270,762 $71,148,287
Average earning assets $44,111,541 $36,383,693 $80,495,234
Average total assets $47,699,012 $37,625,031 $85,324,043
Delinquencies $1,266,425 $1,464,913 $2,731,338
(1) Includes adjustments made related to the effects of securitization
transactions qualifying as sales under GAAP and adjustments made to
reclassify to "managed" loans outstanding the collectible portion of
billed finance charge and fee income on the investors' interest in
securitized loans excluded from loans outstanding on the "reported"
balance sheet in accordance with Financial Accounting Standards Board
Staff Position, "Accounting for Accrued Interest Receivable Related to
Securitized and Sold Receivables under FASB Statement 140, Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities," issued April 2003.
(2) The Managed loan portfolio does not include auto loans which have been
sold in whole loan sale transactions where the Company has retained
servicing rights.
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)
March 31 December 31 March 31
2004 2003 2003
Assets:
Cash and due from banks $323,346 $382,212 $328,791
Federal funds sold and resale
agreements 1,257,666 1,010,319 864,036
Interest-bearing deposits at
other banks 188,237 587,751 247,560
Cash and cash equivalents 1,769,249 1,980,282 1,440,387
Securities available for sale 9,149,440 5,866,628 4,817,322
Consumer loans 33,171,516 32,850,269 27,634,440
Less: Allowance for
loan losses (1,495,000) (1,595,000) (1,635,000)
Net loans 31,676,516 31,255,269 25,999,440
Accounts receivable from
securitizations 4,008,809 4,748,962 3,378,593
Premises and equipment, net 898,802 902,600 769,112
Interest receivable 236,852 214,295 208,998
Other 1,406,757 1,315,670 1,297,115
Total assets $49,146,425 $46,283,706 $37,910,967
Liabilities:
Interest-bearing deposits $23,610,851 $22,416,332 $18,489,388
Senior and subordinated notes 7,224,798 7,016,020 5,116,591
Other borrowings 8,254,383 7,796,613 6,576,876
Interest payable 245,172 256,015 194,629
Other 2,968,993 2,746,915 2,604,818
Total liabilities 42,304,197 40,231,895 32,982,302
Stockholders' Equity:
Common stock 2,411 2,364 2,275
Paid-in capital, net 2,218,861 1,937,302 1,730,883
Retained earnings and cumulative
other comprehensive income 4,670,384 4,161,666 3,244,673
Less: Treasury stock, at cost (49,428) (49,521) (49,166)
Total stockholders' equity 6,842,228 6,051,811 4,928,665
Total liabilities and
stockholders' equity $49,146,425 $46,283,706 $37,910,967
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
Three months ended
March 31 December 31 March 31
2004 2003 2003
Interest Income:
Consumer loans, including
past-due fees $1,035,017 $969,571 $1,013,282
Securities available for sale 63,716 52,328 42,931
Other 65,998 65,884 50,353
Total interest income 1,164,731 1,087,783 1,106,566
Interest Expense:
Deposits 239,512 237,624 209,308
Senior and subordinated notes 130,515 123,409 104,097
Other borrowings 62,682 62,649 58,357
Total interest expense 432,709 423,682 371,762
Net interest income 732,022 664,101 734,804
Provision for loan losses 243,668 390,405 375,851
Net interest income after provision
for loan losses 488,354 273,696 358,953
Non-Interest Income:
Servicing and securitizations 917,669 918,762 729,689
Service charges and other customer-
related fees 354,493 380,925 441,226
Interchange 105,595 106,414 85,351
Other 65,377 31,390 48,337
Total non-interest income 1,443,134 1,437,491 1,304,603
Non-Interest Expense:
Salaries and associate benefits 424,392 408,884 398,467
Marketing 255,147 290,145 241,696
Communications and data processing 117,106 116,217 112,052
Supplies and equipment 88,321 83,804 83,812
Occupancy 38,719 51,645 43,574
Other 301,211 338,777 294,331
Total non-interest expense 1,224,896 1,289,472 1,173,932
Income before income taxes 706,592 421,715 489,624
Income taxes 255,786 156,034 181,161
Net income $450,806 $265,681 $308,463
Basic earnings per share $1.94 $1.16 $1.38
Diluted earnings per share $1.84 $1.11 $1.35
Dividends paid per share $0.03 $0.03 $0.03
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Reported Quarter Ended 3/31/04
Average Income Yield/
Balance Expense Rate
Earning assets:
Consumer loans $32,877,525 $1,035,017 12.59%
Securities available for sale 7,098,951 63,716 3.59%
Other 4,135,065 65,998 6.38%
Total earning assets $44,111,541 $1,164,731 10.56%
Interest-bearing liabilities:
Deposits $22,992,712 $239,512 4.17%
Senior and subordinated notes 7,270,889 130,515 7.18%
Other borrowings 7,834,046 62,682 3.20%
Total interest-bearing liabilities $38,097,647 $432,709 4.54%
Net interest spread 6.02%
Interest income to average
earning assets 10.56%
Interest expense to average
earning assets 3.92%
Net interest margin 6.64%
Reported Quarter Ended 12/31/03
Average Income Yield/
Balance Expense Rate
Earning assets:
Consumer loans $31,297,123 $969,571 12.39%
Securities available for sale 5,816,001 52,328 3.60%
Other 3,679,088 65,884 7.16%
Total earning assets $40,792,212 $1,087,783 10.67%
Interest-bearing liabilities:
Deposits $21,604,968 $237,624 4.40%
Senior and subordinated notes 6,734,569 123,409 7.33%
Other borrowings 7,661,016 62,649 3.27%
Total interest-bearing liabilities $36,000,553 $423,682 4.71%
Net interest spread 5.96%
Interest income to average
earning assets 10.67%
Interest expense to average
earning assets 4.16%
Net interest margin 6.51%
Reported Quarter Ended 3/31/03
Average Income Yield/
Balance Expense Rate
Earning assets:
Consumer loans $27,316,194 $1,013,282 14.84%
Securities available for sale 4,417,538 42,931 3.89%
Other 2,410,750 50,353 8.35%
Total earning assets $34,144,482 $1,106,566 12.96%
Interest-bearing liabilities:
Deposits $17,940,058 $209,308 4.67%
Senior and subordinated notes 5,309,690 104,097 7.84%
Other borrowings 7,009,915 58,357 3.33%
Total interest-bearing liabilities $30,259,663 $371,762 4.91%
Net interest spread 8.05%
Interest income to average
earning assets 12.96%
Interest expense to average
earning assets 4.35%
Net interest margin 8.61%
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Managed(1) Quarter Ended 3/31/04
Average Income Yield/
Balance Expense Rate
Earning assets:
Consumer loans $71,148,287 $2,405,738 13.53%
Securities available for sale 7,098,951 63,716 3.59%
Other 2,247,996 13,056 2.32%
Total earning assets $80,495,234 $2,482,510 12.34%
Interest-bearing liabilities:
Deposits $22,992,712 $239,512 4.17%
Senior and subordinated notes 7,270,889 130,515 7.18%
Other borrowings 7,834,046 62,682 3.20%
Securitization liability 37,669,211 372,723 3.96%
Total interest-bearing liabilities $75,766,858 $805,432 4.25%
Net interest spread 8.09%
Interest income to average
earning assets 12.34%
Interest expense to average
earning assets 4.01%
Net interest margin 8.33%
Managed(1) Quarter Ended 12/31/03
Average Income Yield/
Balance Expense Rate
Earning assets:
Consumer loans $68,678,877 $2,295,802 13.37%
Securities available for sale 5,816,001 52,328 3.60%
Other 1,782,263 11,326 2.54%
Total earning assets $76,277,141 $2,359,456 12.37%
Interest-bearing liabilities:
Deposits $21,604,968 $237,624 4.40%
Senior and subordinated notes 6,734,569 123,409 7.33%
Other borrowings 7,661,016 62,649 3.27%
Securitization liability 36,766,829 364,092 3.96%
Total interest-bearing liabilities $72,767,382 $787,774 4.33%
Net interest spread 8.04%
Interest income to average
earning assets 12.37%
Interest expense to average
earning assets 4.13%
Net interest margin 8.24%
Managed(1) Quarter Ended 3/31/03
Average Income Yield/
Balance Expense Rate
Earning assets:
Consumer loans $59,249,698 $2,148,419 14.50%
Securities available for sale 4,417,538 42,931 3.89%
Other 934,382 5,323 2.28%
Total earning assets $64,601,618 $2,196,673 13.60%
Interest-bearing liabilities:
Deposits $17,940,058 $209,308 4.67%
Senior and subordinated notes 5,309,690 104,097 7.84%
Other borrowings 7,009,915 58,357 3.33%
Securitization liability 31,361,051 316,960 4.04%
Total interest-bearing liabilities $61,620,714 $688,722 4.47%
Net interest spread 9.13%
Interest income to average
earning assets 13.60%
Interest expense to average
earning assets 4.26%
Net interest margin 9.34%
(1) The information in this table reflects the adjustment to add back the
effect of securitized loans.
SOURCE Capital One Financial Corporation
Paul Paquin, V.P., Investor Relations, +1-703-720-2456, or
Tatiana Stead, Director, Corporate Media, +1-703-720-2352, both of Capital One
Financial Corporation
http://www.capitalone.com
