Capital One 2010 Annual Report Download - page 8

6
Commercial Banking held its own through
the worst of the commercial credit cycle
Despite the distress in commercial real estate and mid-market
commercial lending markets, our Commercial Banking business
posted net income of $160 million in 2010. Revenue increased
12% as a result of improving loan margins, growth in our
deposit book, and higher non-interest income. Credit performance
remains relatively strong, with the charge-off rate in the 1%
range. Non-performing assets were down $248 million at
year-end from their peak in the first quarter of 2010.
Deposits grew by $2.2 billion, to $22.6 billion, while deposit
interest expense improved 19 basis points, to just 0.61%.
With the worst of the commercial credit cycle behind us,
we expect to grow low-risk commercial loans in 2011.
Increased emphasis on treasury management services and
stronger relationships with our commercial customers
drove the growth in non-interest income in 2010 and is
expected to generate more revenue growth opportunities
in 2011. We’re delivering strong commercial deposit
growth at attractive spreads, and deposit growth brings
new customers and strengthens existing relationships.
We can generate future loan and revenue growth by
expanding these relationships.
Our balance sheet is a
major source of strength
Throughout the recession, our analytical rigor and vigilance kept our balance sheet strong, reduced our risk,
and helped us identify and seize opportunities as they arose in the rapidly changing economic landscape.
In 2010 we added $8.8 billion in retail deposits, which are a stable, low-cost source of funding. At year-end,
our loan-to-deposit ratio had fallen to 1.03. We also have a $41.5 billion portfolio of high-quality securities,
which is a storehouse of readily available liquidity and a source of significant earnings.
We ended the year in a strong capital position. Our tangible common equity (TCE) ratio was 6.9%, and
our Tier 1 common ratio was 8.8%. We are one of the few banks that did not have to significantly dilute
shareholders with costly equity raises to address the challenges of the Great Recession.
To learn more visit capitalonebank.com
We’re rolling up our sleeves
to help D.C. businesses grow.
When D.C.’s largest locally owned health club was looking to expand, they turned to the area’s largest locally owned bank
for help. With Capital One Bank®, Sport & Health plans to open new clubs every year. Their Capital One commercial banker,
Rich Amador, is working hard to provide the financing and cash flow tools they need to grow their business and create
jobs in the Washington, D.C. area.
Capital One
Commercial Banker
Rich Amador
Sport & Health
Business Owner
Jonathan Adler
®
To learn more, stop by a branch, call 1-888-755-BANK,
or visit capitalonebank.com/smallbusiness.
It takes more than great banking to grow a business like Z. Dave’s towboat operation. It takes a banker
like Dean, who’s ready to roll up his sleeves and learn the ropes of your small business, helping out with
everything from cash fl ow tools to cargo, from payloads to payroll.
Get onboard with the hardest
working bankers in business.
Deloach Marine
Services Owner
Z. Dave Delo ach
Capital One
Business Banker
Dean Beeson
Our Commercial and Small Business bankers
have the expertise and are willing to go the extra
mile to help make our customers successful.