Annual Stockholder Meeting Forward-Looking Statements

Annual Stockholder Meeting

April 24, 2008

Forward looking statements
Forward-Looking Information
Please note that the following materials containing information regarding Capital One’s financial performance speak only as of the
particular date or dates indicated in these materials. Capital One does not undertake any obligation to update or revise any of the
information contained herein whether as a result of new information, future events or otherwise.

Certain statements in this presentation and other oral and written statements made by the Company from time to time, are forward-
looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; projections, revenues,
income, returns, earnings per share or other financial measures for Capital One and/or discuss the assumptions that underlie these
projections, including future financial and operating results, and the company’s plans, objectives, expectations and intentions. To
the extent that any such information is forward-looking, it is intended to fit within the safe harbor for forward-looking information
provided by the Private Securities Litigation Reform Act of 1995. Numerous factors could cause our actual results to differ materially
from those described in forward-looking statements, including, among other things: general economic and business conditions in
the U.S. and or the UK, including conditions affecting consumer income, spending and repayments, changes in the credit
environment in the U.S. and or the UK, including an increase or decrease in credit losses, changes in the interest rate environment;
continued intense competition from numerous providers of products and services that compete with our businesses; financial, legal,
regulatory or accounting changes or actions; changes in our aggregate accounts or consumer loan balances and the growth rate and
composition thereof; the amount of deposit growth; changes in the reputation of the credit card industry and/or the company with
respect to practices and products; the risk that Capital One’s acquired businesses will not be integrated successfully; the risk that
synergies from such acquisitions may not be fully realized or may take longer to realize than expected; disruption from the
acquisitions making it more difficult to maintain relationships with customers, employees or suppliers; the risk that the benefits of the
Company’s restructuring initiative, including cost savings, may not be fully realized; our ability to access the capital markets at
attractive rates and terms to fund our operations and future growth; losses associated with new products or services; the company’s
ability to execute on its strategic and operational plans; any significant disruption in our operations or technology platform; our
ability to effectively control our costs; the success of marketing efforts; our ability to recruit and retain experienced management
personnel; changes in the labor employment market; general economic conditions in the mortgage industry; and other factors listed
from time to time in reports we file with the Securities and Exchange Commission (the “SEC”), including, but not limited to, factors
set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2007. You should
carefully consider the factors discussed above in evaluating these forward-looking statements. All information in these slides is
based on the consolidated results of Capital One Financial Corporation. A reconciliation of any non-GAAP financial measures
included in this presentation can be found in the Company’s most recent Form 10-K concerning annual financial results, available on
the Company’s website at www.capitalone.com in Investor Relations under “About Capital One.”

2008 Annual Shareholder Meeting

2007 was our first year of earnings decline

COF Earnings per Share

$9

$7.62
$8

$6.73
$7 $6.55
$6.21
$6
Excluding
Discontinued
$4.85
$5 Operations
$3.93
$4 $3.97
$2.91
$3
$2.24
$1.72
$2
$1.32
$0.77 $0.93
$0.48 $0.64
$1

$0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007


Our stock price has declined in the face of cyclical
headwinds
Capital One Stock Price
January 1, 2007-April 23, 2008

$90

$80

$70

$60

$50
$45.92
$40

$30

$20

$10

$0
7
7

8
7

8
7

7

07
7

7
07

08
7

07

8
07
-0
-0

-0
-0

-0
l-0

0
-0

-0

0
0
n-

n-
p-

-
-
b-

n-

b-
ct
pr

pr
ar

ar
ay

ug

ec
ov
Ju

Se
Ja

Ja
Fe

Fe
Ju

O
M

M
A

A
M

D
A

N

Source: Factset

The banking industry has been hit hard

Total Shareholder Return
January 1, 2007-April 23, 2008
40%

30% 26%

20%

10%
2%
0%
0%
-2% -2%
-6%
-10% -9%
- 15 %
-20% - 18 %

- 2 6 %2 6 %2 6 %
-
-30% -

-40% - 3 6 %3 6 % 3 7 %
- -
- 4 0 %4 0 % 4 1%
- - -42%
-43%
-50% -46%
-48%
- 5 1% 5 1%
-
- 5 3 %5 3 %
-
- 5 5 %5 5 %
-
-60% -58%
- 6 1%
-70%
-70%
-74%
-80% -77%
- 8 1% 8 1% 8 3 %
- -
-90% -86%
- 9 1%
-94%
-100%
T
WSC

A
Ck

ry ity
Fr tin et

cr IT
ne

eI

Fa gr ia

dv u
St n

rp

ea c
T

l L ird

We
di ton
Bs

ic e

ta
o

Bx
se

ls hs

ita er

M fth ns
hm eg a

A nie p
C co t

l li ac

s
om &
U ee t

Fi Zio .

ac h

In ide
&

H Ne t

C N dit
M an
Y/ ust

D rus
e lo

a n ion
an PN

s

aM
a
er Ma
e
&

St ma
rg

di
Le R ric

n ou
C hov

un lN

rn
pu C
of

W ync

an
M
Su yco

ro
ap v

nt C
lO
B

M
m

Sa e M
ril Th
ha

e l ac

M
at e l

re

ed g
JP S B

e
Fa
r

w
B
B Tr

ea dy
A

nT

ou at
e
St M

e

is

iti
n

K

A
er

C
N

r
m

om
dm
th

er
or

B
C
ol
N

G

Note: Discover began trading on June 14, 2007
Source: Factset

Home prices became clearly unsustainable and the
correction may be prolonged
Indexed Median House Prices and 60th Percentile Household Income, 1975-2007
Indexed to 1975

700

600

500 60th
Percentile
Household
Income
400

300

200

100
1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005

Source: Census Bureau and Banc of America Securities LLC Estimates (Presentation to GFS SLT Sept. 2007)

Indexed to 1975

700

600

500 60th
Percentile
Household
Median
Income
House Prices
400

300

200

100
1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005


Indexed to 1975

700

Median
House Prices
600

500 60th
Percentile
Household
Income
400

300

200

100
1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005


We are the nations’ 13th largest deposit-taking bank

Q4 2007 U.S. Deposits ($B)

1. Bank of America Corporation $688.6
2. JPMorgan Chase & Co. $505.6
3. Wachovia Corporation $423.1
4. Wells Fargo & Company $292.8
5. Citigroup, Inc. $265.9
6. Washington Mutual, Inc. $186.7
U.S. Bancorp
7. $121.1
8. SunTrust Banks, Inc. $113.6
9. Citizens $96.0
10. National City $90.7
$86.1
11. Regions Financial

12. HSBC $81.6
13. Capital One $79.3
14. BB&T $78.9
15. PNC $75.3

Note: Based upon total aggregated domestic deposits for parent company
Sources: SNL, FDIC

The capital markets have shut down in many sectors

U.S. Issuance of Asset-Backed Securities

$B

$1,000
$888
$874
$48
$48
$35 $69
$800
$64
$702 $65
$34
$35
$47
$600
$529 Global RMBS
$38
$66
$559 $555
$48
$400
Home Equity
$463
$224
$188 Other
$200 $0
$5
$32 Student Loans
$1
$42 Auto
$62
$103 $84
$71
Credit Card
$108
$66 $91
$66
$51
$0
2004 2005 2006 2007 2008
(Q1 Annualized)

Q1 Actual $162B $181B $220B $211B $47B

Note: Other includes Equipment, floorplan, motorcycle, small business loans, aircraft etc.
Source: JP Morgan

Lenders primarily reliant on the capital markets have
proven not to be resilient
Consumer Lending Monolines

Failed Acquired Remaining
• •
First Merchants Arcadia Stock Performance
• •
Search Financial Ugly Duckling Jan. 2007-Present
• •
The Money Store Beneficial
• Western Fidelity • •
First USA IndyMac -91.3%
• Aegis • •
Rock Financial CompuCredit -81.4%
• Reliance • •
Reliastar Advanta -78.1%
• National Auto • •
Autofinance Group Sallie Mae -66.3%
• Monaco • •
First Fidelity Americredit -55.2%
• Eagle
• •
First Investors Nelnet -56.0%
• Jayhawk
• •
MS Financial Discover* -37.5%
• National Auto Finance
• •
Regional Acceptance American Express -26.9%
• TFC enterprises
• Heller Financial
• First Enterprise
• GreenTree
• Mercury
• Household
• Aames
• Onyx
• Iown
• Providian
• Finova
•
• MBNA
Delta Financial
•
• WFS Financial
The Credit Store
•
• Metris
NAL Financial
•
• First Franklin
Royal Acceptance
• •
Commercial Financial Services ResMae
• •
NextCard Countrywide
• DVI
• New Century

Note: Publicly traded companies with a minimum of $1 billion in market cap in 1998
*Data sine June 2007 IPO; All other stock data are through April 23, 2008
Source: Factset

We have dramatically reduced our need for capital
markets funding as we’ve grown deposits

% of Funding From Deposits
100%

90%

80%
70%

60%
50%
50%

40%
30%
20%
6%
10%

0%
1995 1Q 2008

Notes: Shown as % of Managed Liabilities

Our banking transformation has been recognized by
ratings agencies

Moody’s
Holding Company

Capital One (2006)
A3

Capital One (Q4 2005)
Baa1

Baa2

Capital One (Q2 1999)
Baa3

Capital One (1996)
Ba1


We have stable and fortified funding

Readily Available Liquidity*
$B
$35

$30.1
$29.4
$30
$26.4

$25

$20.4
$20
$17.3

$15

$10

$5

$0
2004 2005 2006 2007 Q1 2008

Includes unencumbered securities, undrawn committed conduits and undrawn FHLB capacity.

Our Card and Auto Loan charge-offs are increasing
Capital One Auto Finance
Capital One Credit Card
Charge-Off Rate
Charge-Off Rate
8% 8%

7% 7%

5.85%
6% 6%

5% 5%
3.98%
4% 4%

3% 3%

2% 2%

1% 1%

0% 0%
07

08
06

06

07

07
04

05

06

07

08
04

05

04

04

05

05

06
20

20
20

20

20
20

20

20

20

20

20

20
20

20

20

20
20

20
1

3

1

3

1

1
1

3

1

3

1

3

1

3

1

3

1

3
Q

Q

Q

Q

Q

Q

Q
Q

Q

Q

Q

Q

Q

Q

Q

Q

Q

Q
Note: Data is annualized

Our Local Banking losses are rising, but still at low
levels
Capital One Bank Charge-Off Rate

2.0%

1.5%

1.0%

0.5%
0.31%

0.0%
2007Q1 2007Q2 2007Q3 2007Q4 2008Q1

Note: Data is annualized

Our U.S. Card business is generating solid earnings
in the face of significant cyclical headwinds
U.S. Card Net Income
$M
$2,500

$2,116

$2,000
$1,824

$1,609
$1,500 $1,387

$1,181
$1,001
$1,000
$774
$690
$515
$500

$0
1999 2000 2001 2002 2003 2004 2005 2006 2007

Note: Reported in U.S. Card segment

Our auto finance business struggled in 2007, we’re
pulling back dramatically and repositioning the
business
COF Auto Net Income
$M
$250 $234

$200

$164

$150 $132

$99
$100

$50

$10
$0

($21)
($23)
($34)
($35)
($50)
1999 2000 2001 2002 2003 2004 2005 2006 2007


Global Financial Services delivered valuable growth

GFS Net Income
$M
$320
$299
$274
$280

$240
$213

$186
$200

$160

$120

$80 $65

$40

$0
($8)
($40)
2002 2003 2004 2005 2006 2007


Local Banking has become an anchor tenant

Local Banking Net Income
$M
$250

$192
$200

$145
$150
$127
$112

$100

$46 $46
$43 $43
$50

$0
Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007


We have changed our logo


In March we launched the Capital One Bank brand in
metro New York


We can leverage our strong brand and very large
customer base
U.S. Customer
Accounts*
Total Brand 1. Citi 182 M

Awareness (%)1 2. Bank of America 132 M

3. JPM Chase 92 M
97 4. HSBC 60 M

96 5. Capital One 44 M

6. Discover 42 M
96
7. American Express 37 M
96 8. Washington Mutual** 24 M

96 9. Wells Fargo 23 M

91 10. Wachovia 15 M

11. US Bancorp 14 M
87
12. Countrywide 8M
78 13. Fifth Third 6M

14. Citizens 6M
1 - Question: “When you think about companies or
15. Regions 5M
banks that offer financial services products such as
checking accounts, various types of savings accounts,
16. BB&T 5M
credit cards and loans, which ones come to mind? Have
you seen or heard of (company)?”
17. National City 4M

18. Bank of the West 4M

19. PNC 3M
*Represents most recent company disclosure ranging from YE2005 to YE2006
**Calculated by aggregating the ~11M customers with card accounts, the ~9M households with banking accounts,
20. Keycorp 2M
and the ~4M households with home loans
Sources: Millward Brown Financial Services Brand Health Wave 5, January 2008, Company reports, SEC filings

We have completed a major transformation at
Capital One

Today
1990’s 2000’s
• U.S. Card • U.S. Card • U.S. Card

• Auto Finance • Auto Finance

• Small Business • Small Business

• Installment Loans • Installment Loans

• Home Equity • Home Equity

• UK/Canada Card • UK/Canada Card

• Mortgage

• Retail Banking

• Commercial Banking

Credit Card Diversified Diversified Bank
Company Consumer Lender


The capital generative power of our portfolio is
enhanced by reduced capital need and disciplined
capital management
Annual Excess Tangible Common Equity Generated
$M
$2,500
$2,199

$2,000
$1,607
$1,494
$1,500

$1,000 $788

$500
$160 $125
$84
$0
($18)
($30)
($219)
($500) ($408)
($481)

($1,000)
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Note: Calculated as (Total NIAT − NIAT from in-period acquisitions + amortization of intangibles from prior period acquisitions) – Low end of TCE Target Range * (Change
in Tangible Assets – in-period acquired assets)

We significantly raised the dividend

Capital One Dividend

$2.00

$1.80

$1.60 $1.50

$1.40

$1.20

$1.00

$0.80

$0.60

$0.40

$0.11
$0.20

$0.00
2007 2008E


Our portfolio continues to generate capital
2007 Capital Generation (Consumption) as
% of Year-End Tangible Common Equity
20.0% 17.4%

15.0% 11.6%
8.5%
10.0% 7.0%
5.2%
3.8%
5.0%

0.0%
-2.0%
-5.0%
-5.4% -5.4%
-10.0%

-15.0%
-16.2%
-20.0%
-21.6%
-25.0%

-30.0%
Capital JPMorgan U.S. SunTrust BB&T Wells Wachovia Bank of PNC National Citigroup
One Chase Bancorp Fargo America City
New Equity Capital
$7B* $19B
$13B
$12.8B*
Raised From Outside
Sources:

Capital Generation = [Net Income – (Dividends Paid + Capital Needed for Y-o-Y On-Balance Sheet Growth @ 5% TCE Rate)]
*Wachovia and National City include April announcements ($7B each)
Note: Does not include outside capital raising activities in capital generation calculation

Our actions position Capital One to deliver
shareholder value over the cycle

Entering the Positioning for
Decisive Action in
Downturn With Long-term
the Downturn
Strength Trajectory


Annual Stockholder Meeting Forward-Looking Statements

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (13)

Andere mochten auch

Andere mochten auch (11)

Ähnlich wie Annual Stockholder Meeting Forward-Looking Statements

Ähnlich wie Annual Stockholder Meeting Forward-Looking Statements (20)

Mehr von finance13

Mehr von finance13 (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Annual Stockholder Meeting Forward-Looking Statements