Capital One 2013 Annual Report Download - page 90

Table 6.2 summarizes the financial results for International Card and displays selected key metrics for the
periods indicated.
Table 6.2: International Card Business Results
(Dollars in millions)
Year Ended December 31,
Change
2013 vs.
2012
2012 vs.
20112013 2012 2011
Selected income statement data:
Net interest income .......................... $ 1,080 $ 1,053 $ 1,105 3% (5)%
Non-interest income .......................... 363 353 241 346
Total net revenue ............................ 1,443 1,406 1,346 34
Provision for credit losses ..................... 322 378 553 (15) (32)
Non-interest expense ......................... 794 857 882 (7) (3)
Income/(Loss) from continuing operations before
income taxes ............................. 327 171 (89) 91 292
Income tax provision/(benefit) .................. 93 45 (38) 107 218
Income/(Loss) from continuing operations, net of
tax...................................... $ 234 $ 126 $ (51) 86% 347%
Selected performance metrics:
Average loans held for investment(1) . ............ $ 7,973 $ 8,255 $ 8,645 (3)% (5)%
Average yield on loans held for investment(2) ...... 16.24% 15.66% 15.72% 58bps (6)bps
Total net revenue margin(3) .................... 18.10 17.03 15.57 107 146
Net charge-offs ............................. $ 381 $ 412 $ 534 (8)% (23)%
Net charge-off rate(4) ......................... 4.78% 4.98% 6.18% (20)bps (120)bps
Purchase volume(5) ........................... $14,173 $13,905 $12,754 2% 9%
(Dollars in millions)
December 31,
2013 2012 Change
Selected period-end data:
Loans held for investment(1) .................... $ 8,050 $ 8,614 (7)%
30+ day performing delinquency rate(6) ........... 3.71% 3.58% 13bps
30+ day delinquency rate(7) .................... 4.56 4.49 7
Nonperforming loan rate(8) ..................... 1.10 1.16 (6)
Allowance for loan and lease losses ............. $ 378 $ 453 (17)%
** Change is less than one percent or not meaningful.
(1) Credit card period-end loans held for investment and average loans held for investment include accrued finance charges and fees, net of
the estimated uncollectible amount.
(2) Calculated by dividing interest income for the period by average loans held for investment during the period.
(3) Calculated by dividing total net revenue for the period by average loans held for investment during the period.
(4) Calculated by dividing net charge-offs for the period by average loans held for investment during the period. The net charge-off rate for
2012 reflects a cumulative adjustment we made in November 2012 related to the timing of charge-offs for delinquent U.K. loans for
which revolving privileges have been revoked as part of a loan workout. We previously charged off such loans in the period the account
became 180 days past due. Effective November 2012, we began charging off these loans in the period that the account becomes 120
days past due, consistent with our charge-off practice for installment loans.
(5) Consists of purchase transactions, net of returns for the period. Excludes cash advance and balance transfer transactions.
(6) Calculated by dividing 30+ day performing delinquent loans as of the end of the period by period-end loans held for investment.
(7) Calculated by dividing 30+ day delinquent loans as of the end of the period by period-end loans held for investment.
(8) Calculated by dividing nonperforming loans as of the end of the period by period-end loans held for investment. Nonperforming credit
card loans include international card loans that are generally 90 or 120 days delinquent.
70