Capital One 2014 Annual Report Download - page 6

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Revenues were $22.3 billion, in line with the prior year, despite the lost
revenue from the Best Buy private-label card portfolio, which we sold in
late 2013. Normalized for the portfolio sale, revenues grew in 2014.
Non-interest expense was $12.2 billion, with higher marketing expense
offset by lower operating expense as we continue to tightly manage costs.
Pre-provision earnings of $10.1 billion were better than the expectation
of $10.0 billion that we shared at the beginning of the year. Credit losses
continued to outperform our expectations in 2014, with the net charge-off
rate at 1.72%.
Our balance sheet is strong. We have ample deposit
funding and a great franchise, both in our branches and
through Capital One 360® , our digital banking platform.
Our common equity Tier 1 capital ratio was 12.5% at
year-end. Our strong capital levels, coupled with solid
capital management processes, enabled us to “pass” the
2014 Federal Reserve CCAR stress test. We maintained
our quarterly dividend of $.30/share and completed
$2 billion of share repurchases in 2014, in line with our
announced repurchase plan.
Capital One’s stock price closed the year at $82.55 per
share. Our total shareholder return (TSR) in 2014 was
9.5%, compared to the KBW Bank Index return of 7.2%.
We continue to deliver value to our shareholders over the
long term. Two-year TSR was 47%, three-year TSR was
102%, and five-year TSR was 125%. Since we went public
in November of 1994, Capital One’s total shareholder
return is 1,712%, well ahead of the KBW Bank Index return
of 180% over the same period.
Well Positioned
in Attractive Businesses
Headlining our achievements in 2014 was the return to year-over-year growth
in our domestic credit card business. At year-end, domestic card loans
were up $4.4 billion, or 6% compared to 2013, putting us near the top of
industry loan growth. We also delivered industry-leading purchase-volume
Our Partnerships
We are the credit card partner of
choice for a number of world-class
consumer brands. Through these
relationships, we are helping to
advance our partners’ business
objectives, deepen customer
loyalty, and provide an exceptional
experience for our shared customers.
5412 7512 3456 7890
5412
LEE M CARDHOLDER
05/14-12/17
VALID
DATES