Capital One 2012 Annual Report Download - page 6

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This work has gone well. We successfully closed
the acquisition and merged the legal entities with no
significant operational or IT issues and no customer
disruption. We entered into 259 Transition Service
Agreements that govern interim servicing between
Capital One and HSBC as we complete the transition
and integration. By the end of 2012, we had
successfully completed and exited about one-third
of these agreements, and we’re on track to finish the
remainder on schedule.
The acquisition of the HSBC U.S. credit card business
brings us scale partnership systems and capabilities,
and we successfully negotiated contract assignments
from all of the major co-brand and private label
partners. In February 2013, we announced the
planned sale of the Best Buy private label and
co-branded credit card accounts and the early termination of the Best Buy partnership. Even with this planned
sale, we expect our partnerships business will continue to deliver strong contributions to our results and serve as
a platform for future growth.
More work remains to complete the integrations. We have executed well so far, and the planning, rigor, and focus
our associates brought to the task in 2012 give us the necessary momentum to complete the job.
We’re well positioned at the forefront of where banking is going
Over the last two decades, we have transformed our company and positioned ourselves to compete effectively
and deliver sustained value as the financial services industry evolves. The acquisitions we completed in 2012
were important to this transformation, giving us the core deposits, national banking reach, access to assets, and
enhanced digital and customer capabilities that will help us compete successfully for years to come.
The financial services landscape continues to evolve – in many respects at an accelerating pace. Understanding
where the world is going and positioning ourselves relative to end-game success will continue to be a critical
management focus.
National consolidation continues to shape the financial services industry. As we have discussed for many years, the
earliest phases of national consolidation began not one company at a time, but one product at a time. Credit cards,
auto finance, and online brokerage all were stripped away from traditional banks by national players with increasing
Capital One 360 is the nation’s largest internet bank, providing
our customers access and services wherever they are, whenever
they want, 24/7.