Capital One 2011 Annual Report Download - page 131

and reduced by net charge-offs. The provision for loan and lease losses, which is charged to earnings, reflects
credit losses we believe have been incurred and will eventually be reflected over time in our charge-offs. Charge-
offs of uncollectible amounts are deducted from the allowance and subsequent recoveries are added. We describe
our process for determining our allowance for loan and lease losses in “Note 1—Summary of Significant
Accounting Policies.”
Table 30, which displays changes in our allowance for loan and lease losses for 2011, 2010 and 2009, details, by
loan type, the provision for credit losses recognized in our consolidated statements of income each period and the
charge-offs recorded against our allowance for loan and lease losses.
Table 30: Summary of Allowance for Loan and Lease Losses
December 31,
(Dollars in millions) 2011 2010 2009
Balance at beginning of period, as reported ............................ $ 5,628 $ 4,127 $ 4,524
Impact from January 1, 2010 adoption of new consolidation accounting
standards ..................................................... —4,317(1) —
Balance at beginning of period, as adjusted ............................ 5,628 8,444 4,524
Provision for loan and lease losses(2) (3) ............................... 2,401 3,895 4,230
Charge-offs:
Credit Card business:(3)
Domestic credit card and installment ................................. (3,558) (6,020) (3,050)
International credit card and installment .............................. (752) (761) (284)
Total credit card ............................................. (4,310) (6,781) (3,334)
Consumer Banking business:
Auto .......................................................... (529) (672) (1,110)
Home loan ..................................................... (104) (97) (87)
Retail banking .................................................. (99) (129) (160)
Total consumer banking ....................................... (732) (898) (1,357)
Commercial Banking business:
Commercial and multifamily real estate .............................. (76) (207) (208)
Middle market .................................................. (40) (101) (53)
Specialty lending ................................................ (21) (36) (49)
Total commercial lending ..................................... (137) (344) (310)
Small-ticket commercial real estate .................................. (77) (100) (134)
Total commercial banking ..................................... (214) (444) (444)
Other loans ..................................................... (59) (115) (207)
Total charge-offs ................................................ (5,315) (8,238) (5,342)
Recoveries:
Credit Card business:
Domestic credit card and installment ................................. 1,036 1,113 447
International credit card and installment .............................. 218 169 52
Total credit card ............................................. 1,254 1,282 499
Consumer Banking business:
Auto .......................................................... 195 215 238
Home loan ..................................................... 27 43
Retail banking .................................................. 26 24 22
Total consumer banking ....................................... 248 243 263
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