Capital One 2015 Annual Report Download - page 34

15 Capital One Financial Corporation (COF)
• any significant disruption of, or loss of public confidence in, the United States mail service affecting our response rates
and consumer payments;
• any significant disruption of, or loss of public confidence in, the internet affecting the ability of our customers to access
their accounts and conduct banking transactions;
• our ability to recruit and retain talented and experienced personnel to assist in the development, management and operation
of new products and services;
• changes in the labor and employment markets;
• fraud or misconduct by our customers, employees or business partners;
• competition from providers of products and services that compete with our businesses; and
• other risk factors listed from time to time in reports that we file with the SEC.
Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated,
and we do not undertake any obligation to update forward-looking statements as a result of new information, future events or
otherwise. You should carefully consider the factors discussed above in evaluating these forward-looking statements. For additional
information on factors that could materially influence forward-looking statements included in this Report, see the risk factors set
forth under “Part I—Item 1A. Risk Factors” in this Report.
Item 1A. Risk Factors
This section highlights specific risks that could affect our business. Although we have tried to discuss all material risks of which
we are aware at the time this Report has been filed, other risks may prove to be important in the future, including those that are
not currently ascertainable. In addition to the factors discussed elsewhere in this Report, other factors that could cause actual results
to differ materially from our forward looking statements include:
General Economic and Market Risks
Changes And Instability In The Macroeconomic Environment May Adversely Affect Our Industry, Business, Results Of
Operations And Financial Condition.
We offer a broad array of financial products and services to consumers, small businesses and commercial clients. We market our
credit card products on a national basis throughout the United States, Canada and the United Kingdom and offer banking and other
services in many regions within the United States. A prolonged period of slow economic growth or a significant deterioration in
economic conditions in the United States or one of these countries could have a material adverse effect on our financial condition
and results of operations as customers default on their loans or maintain lower deposit levels or, in the case of credit card accounts,
carry lower balances and reduce credit card purchase activity.
Although certain economic conditions in the United States have shown signs of improvement in recent years, the macroeconomic
environment remains unstable and uneven, and the U.S. economy remains susceptible to global events and volatility. Geopolitical
matters, including international political unrest or disturbances, continued concerns over energy prices and economic instability
or recession in certain regions, may impact the stability of financial markets and the U.S. economy.
Some of the risks we may face in connection with adverse changes and instability in macroeconomic environment include the
following:
• Payment patterns may change, causing increases in delinquencies and default rates, which could have a negative impact
on our results of operations. In addition, changes in consumer confidence levels and behavior, including decreased
consumer spending, lower demand for credit and a shift in consumer payment behavior towards avoiding late fees, finance
charges and other fees, could have a negative impact on our results of operations.
• Increases in bankruptcies could cause increases in our charge-off rates, which could have a negative impact on our results
of operations.
• Our ability to recover debt that we have previously charged-off may be limited, which could have a negative impact on
our results of operations.