Capital One 2011 Annual Report Download - page 3

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Chairman’s Letter to Shareholders and Friends
2011 was a standout year for Capital One. Despite the uncertain and struggling economy, we turned in a
robust financial performance, driven by solid top line revenue and improving credit trends. We announced
two of the biggest acquisitions in banking. We rolled out great new products. We added to our talented team
of leaders and associates, invested to build a scalable bank infrastructure, and primed the pump to restart
growth. We were able to deliver strong near-term performance while enhancing our ability to generate
long-term value for Capital One’s shareholders.
In 2011, all three of our business segments delivered solid profitability, and our balance sheet got even
stronger, with increasing capital and ample liquidity. At the same time, continuing economic and regulatory
challenges, especially in Europe, created the opportunity to acquire two great U.S. franchises in businesses
we know well: ING Direct® and the U.S. credit card business of HSBC®. The purchase of ING Direct makes
us the leader in direct banking in the United States, and the acquisition of the U.S. credit card business
of HSBC will significantly expand our card franchise.
For more than 20 years, we have worked to build an enduringly great franchise in financial services.
We’ve chosen the businesses we want to be in with exceptional care. We’ve created powerful tools to
manage risk. We’ve built and sustained a solid balance sheet. We’ve managed our businesses to deliver
profits through boom, bust, and stagnation. Starting from square one, we created one of the best-known
brands in financial services. And after building a highly successful credit card business and diversifying
into other profitable and resilient consumer lending markets, we made the bold decision to transform
Capital One into a full-service bank. In 2012, only seven years after our banking debut, Capital One
is now the sixth largest bank (by deposits) in the United States. We’re positioned at the forefront of
the digital revolution that is reshaping the world of financial services, and we think that our strategy and
our strengths enable us to compete and win as banking continues to evolve.