Capital One 2012 Annual Report Download - page 194

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The table below presents the composition of our held-for-investment loan portfolio, including restricted loans for
securitization investors, as of December 31, 2012 and 2011.
December 31,
(Dollars in millions) 2012 2011
Credit Card business:
Domestic credit card loans .................................................. $ 82,328 $ 54,682
International credit card loans ................................................ 8,614 8,466
Total credit card loans .................................................. 90,942 63,148
Domestic installment loans .................................................. 813 1,927
Total credit card ...................................................... 91,755 65,075
Consumer Banking business:
Auto .................................................................... 27,123 21,779
Home loan ............................................................... 44,100 10,433
Other retail ............................................................... 3,904 4,103
Total consumer banking ................................................ 75,127 36,315
Commercial Banking business:(1)
Commercial and multifamily real estate ........................................ 17,732 15,736
Commercial and industrial .................................................. 19,892 17,088
Total commercial lending ............................................... 37,624 32,824
Small-ticket commercial real estate ........................................... 1,196 1,503
Total commercial banking ............................................... 38,820 34,327
Other:
Other loans .............................................................. 187 175
Total loans ............................................................... $205,889 $135,892
(1) Includes construction loans and land development loans totaling $2.1 billion and $2.2 billion as of December 31, 2012 and 2011,
respectively.
The significant increase in loans held for investment was attributable to the addition of $40.4 billion of loans
from the ING Direct acquisition and $27.8 billion of loans classified as held for investment from the 2012 U.S.
card acquisition, which was partially offset by the continued expected run-off of loans in businesses we exited or
repositioned, other loan pay downs and charge-offs.
Credit Quality
We closely monitor economic conditions and loan performance trends to manage and evaluate our exposure to
credit risk. Trends in delinquency ratios are an indicator, among other considerations, of credit risk within our
loan portfolios. The level of nonperforming assets represents another indicator of the potential for future credit
losses. Accordingly, key metrics we track and use in evaluating the credit quality of our loan portfolio include
delinquency and nonperforming asset rates, as well as charge-off rates and our internal risk ratings of larger
balance, commercial loans.
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