Capital One 2014 Annual Report Download - page 138

Table E—Summary of Allowance for Loan and Lease Losses
December 31,
(Dollars in millions) 2014 2013 2012 2011 2010
Balance as of beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . $4,315 $5,156 $4,250 $5,628 $4,127
Impact from January 1, 2010 adoption of new
consolidation accounting standards . . . . . . . . . . . . . . . . . . . . . . . —— — — 4,317
Balance at beginning of period, as adjusted . . . . . . . . . . . . . . . . . . . 4,315 5,156 4,250 5,628 8,444
Provision for credit losses(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,515 3,401 4,446 2,401 3,895
Charge-offs:
Domestic credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,476) (3,969) (3,507) (3,558) (6,020)
International credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (487) (573) (652) (752) (761)
Consumer banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (989) (888) (797) (732) (898)
Commercial banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34) (49) (94) (214) (445)
Other loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) (26) (43) (59) (114)
Total charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,996) (5,505) (5,093) (5,315) (8,238)
Recoveries:
Domestic credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,031 1,065 975 1,036 1,113
International credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 192 240 218 169
Consumer banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 272 266 248 243
Commercial banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 35 52 37 54
Other loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97558
Total recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,582 1,571 1,538 1,544 1,587
Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,414) (3,934) (3,555) (3,771) (6,651)
Impact from acquisitions, sales and other changes . . . . . . . . . . . . . (33) (308) 15 (8) (60)
Balance at the end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,383 $4,315 $5,156 $4,250 $5,628
Allowance for loan and lease losses as a percentage of
loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.10% 2.19% 2.50% 3.13% 4.47%
Allowance for loan and lease losses as a percentage of loans
held for investment (excluding Acquired Loans) . . . . . . . . . . 2.36 2.54 3.02 3.22 4.67
Allowance for loan and lease losses by geographic
distribution:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,057 $3,937 $4,703 $3,778 $5,168
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 378 453 472 460
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,383 $4,315 $5,156 $4,250 $5,628
Allowance for loan and lease losses by loan category:
Domestic credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,878 $2,836 $3,526 $2,375 $3,581
International credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 378 453 472 460
Consumer banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 779 752 711 652 675
Commercial banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395 338 433 715 830
Other loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 33 36 82
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,383 $4,315 $5,156 $4,250 $5,628
Allowance for loan and lease losses by loan category
to total allowance:
Domestic credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.66% 65.72% 68.39% 55.88% 63.63%
International credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.43 8.76 8.78 11.11 8.17
Consumer banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.78 17.43 13.79 15.34 11.99
Commercial banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.01 7.83 8.40 16.82 14.75
Other loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.12 0.26 0.64 0.85 1.46
(1) The total provision for credit losses reported in our consolidated statements of income was $3.5 billion in both 2014 and 2013, and $4.4
billion, $2.4 billion and $3.9 billion in 2012, 2011 and 2010, respectively, and consisted of a provision for credit losses on loan and lease
losses and on unfunded lending commitments. The provision for credit losses in the above table relates only to the provision for loan and
lease losses. It does not include the provision for credit losses on unfunded lending commitments of $26 million, $52 million and $12
million in 2014, 2013, and 2010, respectively, and the release of the provision for credit losses on unfunded lending commitments of $31
million and $41 million in 2012 and 2011, respectively.
116 Capital One Financial Corporation (COF)