Capital One 2006 Annual Report Download - page 8

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6
due to a 60% spike in the rate of insolvency filings. In response to these stiff headwinds,
we moved quickly to slow growth, tighten our credit policies and cut costs. While the
exogenous environment remains difficult, and resulted in bottom line losses in the UK
in 2006, we have taken aggressive steps to weather this downturn and position our
UK business for success as the credit environment improves.
Overall, GFS delivered great results in 2006. Our GFS businesses have invested wisely in
marketing, infrastructure and innovation and are poised to deliver growth and profits
in 2007 and beyond.
Auto Finance And Mortgage
Capital One Auto Finance®,or COAF, delivered strong growth and profitability in 2006.
Dave Lawson has been a steady hand at the helm of this business since our acquisition of
Summit Acceptance Corporation in 1998. Since that time, COAF has transformed itself
into one of the top national players in auto finance.
In 2006, COAF delivered net income of $233.5 million, up 77%. Origination volumes were
strong with managed loans at the end of 2006 of $21.8 billion, up $5.4 billion from a year
ago, including Hibernia’s legacy auto portfolio. COAF successfully integrated Hibernia’s auto
business and is in the process of integrating North Fork’s. The team has deep expertise in
bringing together auto platforms, and is poised to drive revenue growth and efficiency gains
with these new channels and massive scale. COAF has greater coverage than ever before