Capital One 2003 Annual Report Download - page 55

Table 1 provides average balance sheet data and an analysis of net interest income, net interest spread (the
difference between the yield on earning assets and the cost of interest-bearing liabilities) and net interest margin
for each of the years ended December 31, 2003, 2002 and 2001.
Table 1: Statements of Average Balances, Income and Expense, Yields and Rates
Year Ended December 31
2003 2002 2001
(Dollars in thousands)
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Assets:
Earning assets
Consumer loans(1)
Domestic $25,923,208 $3,578,994 13.81%$22,248,006 $3,436,392 15.45% $14,648,298 $2,342,726 15.99%
International 2,754,408 353,301 12.83% 2,788,013 356,069 12.77% 2,636,008 386,793 14.67%
Total 28,677,616 3,932,295 13.71% 25,036,019 3,792,461 15.15% 17,284,306 2,729,519 15.79%
Securities available for sale 5,335,492 192,594 3.61% 3,873,186 184,407 4.76% 2,526,529 138,188 5.47%
Other
International 2,836,531 215,957 7.61% 1,951,996 187,230 9.59% 593,050 45,877 7.74%
Foreign 512,658 26,808 5.23% 286,398 16,668 5.82% 302,287 7,565 2.50%
Total 3,349,189 242,765 7.25% 2,238,394 203,898 9.11% 895,337 53,442 5.97%
Total earning assets 37,362,297 $4,367,654 11.69% 31,147,599 $4,180,766 13.42% 20,706,172 $2,921,149 14.11%
Cash and due from banks 387,167 507,355 171,392
Allowance for loan losses (1,627,020) (1,178,243) (637,789)
Premises and equipment, net 833,343 802,544 735,282
Other 4,239,626 2,922,469 2,371,252
Total assets $41,195,413 $34,201,724 $23,346,309
Liabilities and Equity:
Interest-bearing liabilities
Deposits
Domestic $18,550,273 $ 817,515 4.41%$14,650,582 $ 748,809 5.11% $ 9,700,132 $ 594,183 6.13%
International 1,217,690 74,135 6.09% 956,360 63,080 6.60% 673,379 46,287 6.87%
Total 19,767,963 891,650 4.51% 15,606,942 811,889 5.20% 10,373,511 640,470 6.17%
Senior notes 5,915,300 448,646 7.58% 5,668,343 422,529 7.45% 5,064,356 357,495 7.06%
Other borrowings
Domestic 7,061,192 242,246 3.43% 5,689,369 226,206 3.98% 2,551,996 145,316 5.69%
International 1,532 23 1.50% 23,350 1,030 4.41% 440,313 27,726 6.30%
Total 7,062,724 242,269 3.43% 5,712,719 227,236 3.98% 2,992,309 173,042 5.78%
Total interest-bearing liabilities 32,745,987 $1,582,565 4.83% 26,988,004 $1,461,654 5.42% 18,430,176 $1,171,007 6.35%
Other 3,125,956 3,065,570 2,134,951
Total liabilities 35,871,943 30,053,574 20,565,127
Equity 5,323,470 4,148,150 2,781,182
Total liabilities and equity $41,195,413 $34,201,724 $23,346,309
Net interest spread 6.86% 8.00% 7.76%
Interest income to average earning
assets 11.69% 13.42% 14.11%
Interest expense to average earning
assets 4.24% 4.69% 5.66%
Net interest margin 7.45% 8.73% 8.45%
(1) Interest income includes past-due fees on loans of approximately $799.3 million, $955.8 million and $769.5 million for the years ended
December 31, 2003, 2002 and 2001, respectively. Interest income includes $38.4 million related to the one-time impact of the change in
recoveries assumption for the year ended December 31, 2002. This resulted in a 12 basis point increase in the net interest margin.
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