Capital One 2012 Annual Report Download - page 77
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CONSOLIDATED RESULTS OF OPERATIONS
The section below provides a comparative discussion of our reported consolidated results of operations between
2012 and 2011 and between 2011 and 2010. Following this section, we provide a discussion of our business
segment results. You should read this section together with our “Executive Summary and Business Outlook,”
where we discuss trends and other factors that we expect will affect our future results of operations.
Net Interest Income
Net interest income represents the difference between the interest income and applicable fees earned on our
interest-earning assets, which include loans held for investment and investment securities, and the interest
expense on our interest-bearing liabilities, which include interest-bearing deposits, senior and subordinated notes,
securitized debt and other borrowings. We include in interest income any past due fees on loans that we deem are
collectible. Our net interest margin represents the difference between the yield on our interest-earning assets and
the cost of our interest-bearing liabilities, including the impact of non-interest bearing funding. We expect net
interest income and our net interest margin to fluctuate based on changes in interest rates and changes in the
amount and composition of our interest-earning assets and interest-bearing liabilities.
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