Capital One 2013 Annual Report Download - page 297

Table 3: Reconciliation of Non-GAAP Average Balances, Net Interest Income and Net Interest Margin
Year Ended December 31,
2010 2009
(Dollars in millions) (unaudited)
Average
Balance
Interest
Income/
Expense
Yield/
Rate
Average
Balance
Interest
Income/
Expense
Yield/
Rate
Reported basis
Interest-earning assets:
Loans held for investment .................. $168,015 $15,276 9.09% $136,697 $10,367 7.58%
Other ................................... 7,668 77 1.00 8,855 297 3.35
Total interest-earning assets ..................... 175,683 15,353 8.74 145,552 10,664 7.33
Interest-bearing liabilities:
Securitization liability ..................... 34,185 809 2.37 5,516 282 5.11
Total interest-bearing liabilities .................. 154,363 2,896 1.88 126,600 2,967 2.34
Net interest income/spread ...................... $12,457 6.86% $ 7,697 4.99%
Interest income to average interest-earning assets .... 8.74% 7.33%
Interest expense to average interest-earning assets . . . 1.65 2.04
Net interest margin ............................ 7.09% 5.29%
Non-GAAP securitization reconciliation adjustments
Interest-earning assets:
Loans held for investment .................. $ 96 $ 8 —%$ 43,727 $ 5,678 1.31%
Other ................................... (22) — (0.01) (3,061) (229) (2.23)
Total interest-earning assets ..................... 74 8 — 40,666 5,449 1.32
Interest-bearing liabilities:
Securitization liability ..................... 79 4 — 41,100 1,057 (2.24)
Net interest income/spread ...................... $ 4 —% $ 4,392 1.26%
Interest income to average interest-earning assets .... —% 1.32%
Interest expense to average interest-earning assets . . . — 0.12
Net interest margin ............................ —% 1.20%
Non-GAAP managed basis
Interest-earning assets:
Loans held for investment .................. $168,111 $15,284 9.09% $180,424 $16,045 8.89%
Other ................................... 7,646 77 1.01 5,794 68 1.17
Total interest-earning assets ..................... 175,757 15,361 8.74 186,218 16,113 8.65
Interest-bearing liabilities:
Securitization liability ..................... 34,264 813 2.37 46,616 1,339 2.87
Total interest-bearing liabilities .................. 154,443 2,900 1.88 167,700 4,024 2.40
Net interest income/spread ...................... $12,461 6.86% $12,089 6.25%
Interest income to average interest-earning assets .... 8.74% 8.65%
Interest expense to average interest-earning assets . . . 1.65 2.16
Net interest margin ............................ 7.09% 6.49%
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