Capital One 2004 Annual Report Download - page 80

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In January 2005, the Company acquired Onyx Acceptance Corporation, an indirect auto finance provider. This
acquisition will provide expanded growth opportunities by enhancing the Company’s product line, especially
among prime and near prime borrowers. The transaction, including the associated restructuring charges, is not
expected to have a material effect on Capital One’s earnings in 2005.
The Company expects that in 2005 the Auto Finance segment will continue to grow loans at a faster pace than
the U.S. Card segment.
Global Financial Services Segment
The GFS segment consisted of $21.2 billion of loans as of December 31, 2004, primarily consisting of
installment loans and small business receivables originated within the U.S. and credit card loans and installment
loans originated outside of the U.S., primarily in the U.K. and Canada.
In January 2005, the Company acquired Hfs Group, a UK-based home equity broker. This acquisition broadens
and deepens the Company’s presence in the UK market by adding an additional customer channel and gaining
experience in additional lending products.
In February 2005, the Company acquired eSmartloan, a U.S. based home equity broker. This acquisition
broadens and enhances the Company’s capabilities in the growing U.S. home equity market by acquiring a
position as a home equity originator and a proprietary scalable technology platform.
In January 2005, the Company acquired InsLogic, an insurance brokerage firm. This acquisition will allow the
Company to leverage its direct marketing capabilities by offering consumers insurance brokerage services.
InsLogic brings proprietary technology, an operational platform and strong carrier relationships.
The products contained within the GFS segment play a key role in the asset diversification strategy of the
Company, and thus the Company expects the GFS segment will grow its loan portfolio and profits at a faster
pace than the U.S. Card segment.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
The information required by Item 7A is included in Item 7, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations—Market Risk Management” on pages 51-52.
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