Capital One 2004 Annual Report Download - page 5

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Years ago, we staked out a powerful brand position by promising to deliver “great value without
the hassle” to our customers. We’ve backed up this commitment with a steady stream of products
that give tens of millions of consumers a great deal and simplify their financial lives. And, through our
innovative commercials, like our David Spade ads, we’ve created one of the most recognizable brands
in the United States. Our brand generates thrust for our established businesses and paves the way
for our expansion into new markets.
Capital One’s disciplined financial management is providing stability and flexibility. We continue to
drive down operating costs and reallocate resources where we identify better opportunities for invest-
ment and growth, as we did in 2004 with exits from ventures in France and South Africa. Our funding
is fortified and there is strong demand for our asset-backed securities. And, we have a large and
growing deposit base. Capital One is now the 31st-largest deposit institution in the United States.
The Federal Reserve Board approved our application to become a bank holding company, enhancing
our flexibility, and Standard & Poor’sSM upgraded our credit rating, increasing our access to lower-cost
funding. With liquidity in excess of $21 billion and $9.2 billion in capital at the end of 2004, we have
the financial strength to seize the right opportunities when they arise.
In the end, our success comes down to one thing – our people. I have the good fortune to work
closely with an experienced and talented Executive Committee, whose exceptional leadership and
judgment are evident in everything from our can-do culture to our bottom line. Our directors are
providing strong oversight and governance, and we continue to add to the Board’s depth and talent.
Our newest director, Ann Fritz Hackett, president of the Horizon Consulting Group, brings us a wealth
of strategic and marketing expertise. Our associates’ ideas and drive have powered our success from
the beginning. And they bring the same passion they invest in Capital One to their communities by
volunteering tens of thousands of hours to helping at-risk children and families in need. On and off
the job, our people embody our core Values of “Excellence” and “Do the Right Thing.”
We’re well positioned to continue our profitable growth. Financially, we’ve never been stronger.
Our flagship credit card business is thriving. We’re successfully taking IBS, the strategy that made
Capital One a winner in credit cards and auto finance, to new businesses. And, we have a powerful
brand and huge customer base to fuel our growth and diversification. Our people have pulled together
to make Capital One the strong, diversified Company it is today. And I am confident that they will
sustain our momentum as we enter our second decade as a public company.
Richard D. Fairbank
Chairman and Chief Executive Officer
chairman’s letter to shareholders and friends