Capital One 1996 Annual Report Download - page 4

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2
Capital One turned in a terrific
performance in 1996. While the
credit card industry experienced
increasing competition and a worsening
consumer credit picture, our Company
enjoyed another year of record financial
results. We saw our fourth consecutive
year of rapid growth in loans, accounts,
earnings and marketing investment.
We begin 1997 in a strong position for
continued success.
For 1996, our net income increased
23% to $155.3 million, or $2.30 per
share, up from $126.5 million, or $1.90
per share, in 1995. Underlying growth
was much greater: in addition to
achieving record earnings, we increased
our marketing investment by 41% to an
all-time high of $207 million. The size
of this investment demonstrates the
strength of our commitment to future
profitability and growth. Managed
loans increased 23% to $12.8 billion
from $10.4 billion. Our account base
grew to 8.6 million from 6.1 million,
a 40% gain and the highest rate of
account growth of the 10 largest credit
card issuers.
Creating strong, steady, profitable
growth is Capital One’s top priority.
By nearly every financial yardstick, the
Company is five times larger than it
was four years ago. At that time, we
operated as the credit card division of
To Our
Stockholders:
Our Company enjoyed
another year of record
financial results. We
saw our fourth con-
secutive year of rapid
growth in loans,
accounts, earnings
and marketing invest-
ment.
Richard D. Fairbank
Chairman and Chief Executive Officer
Nigel W. M orris
President and Chief Operating Officer