FALLS CHURCH, Va., April 13 /PRNewswire/ -- Capital One Financial
Corporation (NYSE: COF) today announced record first quarter 2000 earnings of
$106.7 million, or $0.51 per share, versus earnings of $82.4 million, or
$0.39 per share, for the comparable period in the prior year. These record
earnings per share are up $0.04 from the fourth quarter of 1999. All earnings
per share amounts reflect the Company's three-for-one stock split distributed
on June 1, 1999.
"Our most valuable asset doesn't even appear on our balance sheet. Our 25
million customers comprise one of the largest customer franchises in the
world," said Richard D. Fairbank, Capital One's Chairman and Chief Executive
Officer. During the first quarter, Capital One added 1.6 million net new
accounts, bringing total accounts to 25.3 million.
The Company's managed net interest margin increased to a record 11.23
percent in the first quarter of 2000 versus 10.78 percent in the fourth
quarter of 1999 and 10.55 percent in the comparable period of 1999. The
increased margin, higher non-interest income, and stability in net charge-offs
each contributed to the record risk adjusted margin of 16.57 percent, which
compares to 16.24 percent for the fourth quarter of 1999 and 14.38 percent for
the comparable period in the prior year.
First quarter 2000 revenue, defined as managed net interest income and
non-interest income, rose to $1.1 billion versus $1.0 billion in the fourth
quarter of 1999 and $872 million for the comparable period in the prior year.
For the quarter, Capital One's managed consumer loan balances increased by $62
million to $20.3 billion.
Marketing expense for the first quarter of 2000 remained the same as the
fourth quarter of 1999 at $202 million, and increased over the $176 million
spent in the comparable period of the prior year. Other non-interest expenses
(excluding marketing) for the first quarter of 2000 were $508 million versus
$479 million for the fourth quarter of 1999 and $372 million in the comparable
period of the prior year. Annualized operating expenses per account declined
to $82.93 for the first quarter of 2000 from $85.98 for the fourth quarter of
1999 and $85.74 from the comparable period in the prior year.
The managed net charge-off rate remained stable at 3.87 percent for the
first quarter of 2000 compared to 3.86 percent for the fourth quarter of 1999.
The managed delinquency rate (30+ days) also remained stable at 5.26 percent
as of March 31, 2000, compared to 5.23 percent as of December 31, 1999. The
allowance for loan losses increased by $30 million during the first quarter to
$372 million or 3.94 percent of on-balance sheet receivables as of March 31,
2000, compared to 3.45 percent as of December 31, 1999. The capital to
managed assets ratio was strong as of March 31, 2000, at 7.06 percent.
"Capital One has built a flexible business model and a fast-paced,
exciting, entrepreneurial culture that truly benefits consumers across the
credit spectrum," said Nigel W. Morris, Capital One's President and Chief
Operating Officer. "Our strong risk-adjusted margin reflects our ability to
innovate profitable products while our charge-off rate continues to be the
lowest among the major players in the industry."
Capital One is one of the major financial services providers on the
Internet, with on-line account decisioning, real-time account numbering, on-
line retail deposits and a growing number of customers serviced on-line.
"Combining the power of Capital One's customer base with a robust offering of
financial services and other products on the Internet is one of our key
strategic objectives," said Fairbank.
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 25.3 million accounts and $20.3
billion in managed loans outstanding as of March 31, 2000. As one of the
largest providers of MasterCard and Visa credit cards in the world, Capital
One was recently named to the Fortune 500. Capital One trades on the New York
Stock Exchange under the symbol "COF" and is included in the S&P 500 index.
||This release, financial information and a live webcast of today's
||11:00 a.m. (EDT) analyst conference call is accessible on the Internet on
||Capital One's home page (http://www.CapitalOne.com). Click on "Investor
||Center" to view/download the earnings press release and other financial
SOURCE Capital One Financial Corporation
CONTACT: Paul Paquin, V.P., Investor Relations, 703-205-1039 or Tatiana
Stead, Media Relations, 703-289-6872, both of Capital One Financial