Capital One 2014 Annual Report Download - page 122

Table 27: Allowance for Loan and Lease Losses Activity
Year Ended December 31,
(Dollars in millions) 2014 2013 2012
Balance at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,315 $ 5,156 $ 4,250
Provision for credit losses(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,515 3,401 4,446
Charge-offs:
Credit Card:
Domestic credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,476) (3,969) (3,507)
International credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (487) (573) (652)
Total credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,963) (4,542) (4,159)
Consumer Banking:
Auto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (898) (784) (631)
Home loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32) (26) (77)
Retail banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (59) (78) (89)
Total consumer banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (989) (888) (797)
Commercial Banking:
Commercial and multifamily real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) (6) (23)
Commercial and industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23) (26) (32)
Total commercial lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28) (32) (55)
Small-ticket commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) (17) (39)
Total commercial banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34) (49) (94)
Other loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) (26) (43)
Total charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,996) (5,505) (5,093)
Recoveries:
Credit Card:
Domestic credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,031 1,065 975
International credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 192 240
Total credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,235 1,257 1,215
Consumer Banking:
Auto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 238 217
Home loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 10 25
Retail banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 24 24
Total consumer banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 272 266
Commercial Banking:
Commercial and multifamily real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 14 18
Commercial and industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 11 25
Total commercial lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 25 43
Small-ticket commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 9
Total commercial banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 35 52
Other loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 975
Total recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,582 1,571 1,538
Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,414) (3,934) (3,555)
Other changes(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33) (308) 15
Balance at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,383 $ 4,315 $ 5,156
Allowance for loan and lease losses as a percentage of loans held for investment . . 2.10% 2.19% 2.50%
(1) The total provision for credit losses reported in our consolidated statements of income consists of a provision for loan and lease losses and
a provision for unfunded lending commitments. The table above only presents the provision for loan and lease losses, and does not include
the provision for unfunded lending commitments of $26 million and $52 million in 2014 and 2013, respectively, and the provision release
for unfunded lending commitments of $31 million in 2012.
(2) Represents foreign currency translation adjustments and the net impact of loan transfers and sales.
100 Capital One Financial Corporation (COF)