Capital One 2009 Annual Report Download - page 2
Download and view the complete annual report
Please find page 2 of the 2009 Capital One annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2 -
3 -
4 -
5 -
6 -
7 -
8 -
9 -
10 -
11 -
12 -
13 -
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
 |
 |
Chairman’s Letter To Shareholders And Friends
2009 was a defining year for Capital One.
We faced the most challenging economy in
our company’s history, with unemployment
climbing above 10% and home prices
collapsing. The government intervened in
the financial system on a scale not seen
since the Great Depression. In addition, the
most sweeping changes ever to the credit
card industry were adopted with the
signing of the CARD Act. The business
models of all banks were severely tested by
the recession, but this experience validated
the bold strategic choices we have made
over many years. We have weathered the
storm well and are emerging as one of
the nation’s strong banks.
We Delivered Solid Results Powered By A Strong
Balance Sheet And Rigorous Underwriting
Capital One delivered solid results in 2009. Operating earnings were $987 million, or $0.99 per share,
with GAAP earnings for the full year of $884 million, or $0.74 per share, even after a $1.31 TARP
dividend and repayment expense. Total shareholder return was 23.9%, in the top quartile for the year
relative to our peers. We were one of a select group of peer banks to deliver positive operating earnings
during each year of the downturn.
We have a deep heritage of disciplined balance sheet management, and our balance sheet strength
was on display throughout the year. We passed the government’s “stress test” in May, one of only four
lending banks to do so. We maintained healthy capital ratios both before and after we redeemed the
government’s TARP preferred shares. We were one of the first banks to repay TARP and, unlike most
other large banks, we never relied on any government funding program. We raised over $5 billion in
private capital, including $1.5 billion in common equity and an additional $2 billion of Tier 1 capital,
1