Capital One 2014 Annual Report Download - page 5

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complexity of the country’s largest banks. We’ve weathered recessions and
emerged in a strong position to go on offense and expand and enhance our
franchise. We’ve developed one of the most recognized and powerful brands
in banking. We’ve consistently delivered attractive financial performance
and created value for our shareholders. And we’ve made a positive impact
in the communities where we live and work. As exciting as this journey
has been, I believe our best days are ahead.
The banking industry is ripe for change. Some banks are still
dealing with the aftermath of the Great Recession and are
struggling to overcome operational complexities and reputational
challenges. Many banks continue to rely on products and customer
practices that can drive a wedge between a company and its
customers. Most important, we are in the midst of one of the
biggest technological upheavals in human history – on par with
the industrial revolution. The digital revolution is changing everything,
and few banks are fully mobilized to adapt.
We see great opportunity in this environment and in the breathtaking
changes around us. Thanks to twenty years of strategic focus, hard work,
and steady transformation, we are well positioned to succeed as banking
continues to rapidly evolve.
Strong, Sustained Results
It’s a tough operating environment for banks. The economy continues its
gradual and lackluster recovery from the Great Recession. Interest rates
remain persistently low. Across the banking industry, margins are under
pressure and significantly higher capital requirements are reducing returns.
Regulatory expectations remain high and continue to increase. These
challenges create pressures in the near term. But they also create
significant opportunities for banks like Capital One that are well positioned
and willing to invest to be at the forefront of banking.
In 2014, Capital One delivered net income of $4.4 billion, a 7% increase from
2013. Our earnings per share were $7.59, up from $6.89 in 2013. Return
on average tangible common equity was 15.8%, down from 2013, but still
at the higher end of the banking industry’s returns.
Rewards Cards
Our flagship rewards cards,
Quicksilver, Venture, and Spark,
are great products that offer
some of the best rewards
programs in their categories –
without the limits and other
restrictions found on many
other cards.