Capital One 2001 Annual Report Download - page 6

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well-managed lenders. In 2001 we acquired PeopleFirst,®the Internet’s largest originator of auto loans, and
Amerifee™,the leading provider of financing for elective medical procedures.
We’re also bullish because of the discipline built into Capital One’s information-based strategy (IBS). By
combining one of the world’s largest databases with cutting-edge technology and rigorous analytics, IBS allows
us to excel at risk management and test thousands of ideas in search of profitable innovations. In operations,
IBS gives us the power to track—and continually improve—efficiency, credit quality and customer service.
As Capital One’s strong performance in 2001 shows, the Company was built to withstand stormy
weather. Knowing that no one can accurately predict when a recession will occur, we assume a recession from
the beginning, by stacking the deck of variables against ourselves and incorporating the results in our credit
decision making. Marketing and operations are, by design, highly flexible, allowing for quick response to
opportunity and change. We have also greatly reduced Capital One’s annual expenses. Cost per account
is now $74—down 6% in 2001 and one of the card industry’s lowest despite major investments in
technology and collections and recoveries.
After our first full year of television advertising (the well-received “What’s in your wallet?” campaign) and
major events sponsorships, Capital One is becoming a household name.Consumers see us as innovative and on
their side—the financial services provider that gives them the most for their money.
Our customers interact with us 1.1 billion times a year when they call customer service or visit
www.capitalone.com or open their monthly statements.We treat each contact as a sales opportunity, and with
IBS we are becoming increasingly skilled at marketing additional products and services—our own and those of
other leading companies.
Capital One had the good fortune to come of age during the longest period of prosperity in American
history. In a slowing economy our 20,000 plus associates sustained the fast pace of Capital One’s growth, and in
the wake of September 11 they did a superb job of helping customers who were grieving, stranded or called to
active military duty. They were tireless and brave in dealing with the complications of the postal slowdown,
which at Capital One affected millions of pieces of mail each week.
Since day one, recruiting has been our highest priority, and we’ve kept our pledge to hire only the best.
Once again, the payoff was visible in Capital One’s strong performance. And for the fourth straight year,
our commitment to our associates earned Capital One a place on the “100 Best Places to Work in
America™”list published in FORTUNE®magazine. After taking the full measure of our strengths—associates,
strategy, brand, products and markets—we are as optimistic as ever about the future of Capital One.
Richard D. Fairbank
Chairman and
Chief Executive Officer
Nigel W. Morris
President and
Chief Operating Officer