Capital One 2004 Annual Report Download - page 15

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Capital One has entered markets outside the U.S. and consumer-
lending sectors beyond credit cards and auto finance. Both paths have
led to the destination we have for all our businesses: profitable long-term
growth. Collectively, our Global Financial Services businesses are now
generating 27% of Capital One’s managed loans and 14% of its earnings.
Internationally, our $8.2 billion U.K. card portfolio is growing more
rapidly than the U.K. card industry as a whole. Our Canadian credit card
portfolio crossed the $2.4 billion (U.S.) threshold in 2004. We’re now
the U.K.’s seventh-largest card issuer and one of Canada’s top ten.
Building on our credit card successes and growing brand strength in
the U.K., we now offer British consumers installment loans and savings
instruments. Though still small, our U.K. participation in these categories
is profitable, and the strong growth of these lending sectors makes them
attractive opportunities for Capital One. We also plan to strengthen our
position with the 2005 acquisition of Hfs Group, one of Britain’s leading
home-equity loan brokers.
In the U.S., we’re now well established in small-business lending,
installment loans and healthcare finance (loans for medical and dental
procedures not covered by traditional health insurance). And with the
2005 acquisition of eSmartloan, a leading online home-equity lender
based in the U.S., we now have an excellent platform for success in the
fastest-growing segment of consumer finance.
Like our U.S. credit cards and auto loans, our small-business products
are designed to deliver great value without the hassle. For example, by
making Small Business Administration (SBA) loans available online,
we’ve streamlined the process of applying for these government-backed
loans. Through lines of credit, credit cards and loans, our small-business
franchise is succeeding by giving entrepreneurs lower rates, better credit
access and great financing flexibility.
Global Financial Services is already successful and serves markets with
excellent growth potential. These markets are also highly compatible with
Capital One’s Information-Based Strategy, skills in risk management and
expertise in direct marketing.
Our products break through the
time zones and cultural barriers.
12
global financial services
managed loans ($ in billions)
2004
$21
2003
$17
2002
$12
2001
$8
net income ($ in millions)
2004
$213
2003
$65
20022001
($45) ($8)