Capital One 2008 Annual Report Download - page 21

3
PART I
Item 1. Business.
Overview
Capital One Financial Corporation (the Corporation) is one of the largest banks in the United States, incorporated in Delaware on
July 21, 1994, whose banking and non-banking subsidiaries market a variety of financial products and services. The Corporations
principal subsidiaries include Capital One Bank (USA), National Association (COBNA) which currently offers credit and debit card
products, other lending products, and deposit products; and Capital One, National Association (CONA) which offers a broad
spectrum of banking products and financial services to consumers, small businesses and commercial clients. The Corporation and its
subsidiaries are collectively referred to as the Company. Unless indicated otherwise, the terms Corporation, we, us, and our
refer to the Corporation and its consolidated subsidiaries.
As of December 31, 2008, we had $108.6 billion in deposits and $146.9 billion in managed loans outstanding. We are the 4th largest
issuer of Visa® (Visa) and MasterCard® (MasterCard) credit cards in the United States based on managed credit card loans
outstanding, and we are the 10th largest depository institution in the United States.
We offer our products throughout the United States. We also offer our products outside of the United States principally through
Capital One Bank (Europe) plc, an indirect subsidiary of COBNA organized and located in the United Kingdom (the U.K. Bank),
and through a branch of COBNA in Canada. Our U.K. Bank has authority, among other things, to accept deposits and provide credit
card and installment loans. Our branch of COBNA in Canada has the authority to provide credit card loans.
Our common stock is listed on the New York Stock Exchange under the symbol COF and as of January 31, 2009, the Companys
common stock was held by 17,653 shareholders. Our principal executive office is located at 1680 Capital One Drive, McLean,
Virginia 22102 (telephone number [phone]). The Corporation maintains a website at www.capitalone.com. Documents
available on our website include (i) Codes of Business Conduct and Ethics for the Corporation; (ii) the Corporations Corporate
Governance Principles; and (iii) charters for the Audit and Risk, Compensation, Finance and Trust Oversight, and Governance and
Nominating Committees of the Board of Directors. These documents are also available in print to any shareholder who requests a
copy. In addition, we make available free of charge through our website our annual reports on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K and amendments to those reports as soon as reasonably practicable after electronic filing or
furnishing of such material to the SEC.
Business Description
Capital One is one of the largest banks in the United States. We are a diversified banking corporation focused primarily on consumer
and commercial lending and deposit origination. Our principal business segments are Local Banking and National Lending. Local
Banking includes the Companys branch, treasury services and national deposit gathering activities; its commercial, branch based
small business lending and certain branch originated consumer lending; and its mortgage servicing activities. The National Lending
segment consists of two sub-segments: the U.S. Card sub-segment which consists of domestic consumer credit and debit card
activities, and; the Other National Lending sub-segment which includes the Companys auto finance and international lending sub-
segments. For further discussion of our segments, see Item 7 Managements Discussion and Analysis of Financial Condition and
Results of OperationsReportable Segment Summary and Item 8 Financial Statements and Supplementary DataNotes to the
Consolidated Financial StatementsNote 3.
Local Banking Segment. The Local Banking segment offers traditional banking products through an extensive branch network in
Connecticut, Louisiana, New Jersey, New York, and Texas. Products include commercial and consumer loans, commercial and
consumer deposit account services, commercial credit cards, treasury management services, trust services and other banking related
products, such as insurance, brokerage services, merchant services, and investment banking. In addition, the Local Banking segment
offers money market (liquid accounts) and certificate of deposit accounts (time deposits) through internet channels.
U.S. Card Sub-segment. The U.S. Card sub-segment offers a wide variety of credit card and small business products, in addition to
unsecured closed-end loans throughout the United States, which we customize to appeal to different consumer preferences and needs.
Our product offerings are supported by extensive brand advertising. We routinely test new products to develop products that appeal to
different and changing consumer preferences. Our customized products include products offered to a wide range of consumer credit
risk profiles, as well as products aimed at special consumer interests.
Other National Lending Sub-segment. The Other National Lending sub-segment includes the Auto Finance sub-segment and
International sub-segment.