Capital One 2015 Annual Report Download - page 167

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
148 Capital One Financial Corporation (COF)
Table 5.4: Credit Card: Net Charge-offs
Year Ended December 31,
2015 2014
(Dollars in millions) Amount Rate Amount Rate
Net charge-offs:(1)
Domestic credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,718 3.45% $ 2,445 3.43%
International credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 2.50 283 3.69
Total credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,918 3.36 $ 2,728 3.46
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(1) Net charge-offs consist of the unpaid principal balance of loans held for investment that we determine to be uncollectible, net of recovered amounts. The net
charge-off rate is calculated for each loan category by dividing net charge-offs for the period by average loans held for investment during the period. Net
charge-offs and the net charge-off rate are impacted periodically by fluctuations in recoveries, including impacts of debt sales.
Consumer Banking
Our consumer banking loan portfolio consists of auto, home loan and retail banking loans. Similar to our credit card loan portfolio,
the risk in our consumer banking loan portfolio correlates to broad economic trends, such as unemployment rates, GDP, and home
values, as well as customer liquidity, all of which can have a material effect on credit performance. Delinquency, nonperforming
loans and charge-off trends are key factors we assess in monitoring the credit quality and risk of our consumer banking loan
portfolio.
The table below displays the geographic profile of our consumer banking loan portfolio, including Acquired Loans. We also present
the delinquency and nonperforming loan rates of our consumer banking loan portfolio as of December 31, 2015 and 2014, and net
charge-offs for the years ended December 31, 2015 and 2014.
Table 5.5: Consumer Banking: Risk Profile by Geographic Region
December 31, 2015 December 31, 2014
(Dollars in millions) Amount
% of
Total(1) Amount
% of
Total(1)
Auto:
Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,463 7.8% $ 5,248 7.4%
California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,611 6.5 4,081 5.7
Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,315 4.7 2,737 3.8
Georgia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,245 3.2 2,066 2.9
Louisiana. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,882 2.7 1,773 2.5
Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,859 2.6 1,676 2.4
Ohio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,738 2.5 1,566 2.2
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,436 29.0 18,677 26.1
Total auto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,549 59.0 37,824 53.0
Home loan:
California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,884 8.4 6,943 9.7
New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,171 3.1 2,452 3.4
Maryland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,539 2.2 1,720 2.4
Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,490 2.1 1,873 2.6
Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,354 1.9 1,538 2.2
New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,293 1.8 1,529 2.1
Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,146 1.6 1,375 1.9
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,350 14.8 12,605 17.7
Total home loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,227 35.9 30,035 42.0