Capital One 2015 Annual Report Download - page 53

34 Capital One Financial Corporation (COF)
Year Ended December 31, Change
(Dollars in millions, except per share data and as noted) 2015 2014 2013 2012 2011
2015 vs.
2014
2014 vs.
2013
Balance sheet (average balances)
Loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 210,745 $ 197,925 $ 192,614 $ 187,915 $ 128,424 6% 3%
Interest-earning assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282,581 267,174 266,423 255,079 175,265 6 —
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313,474 297,659 296,200 285,142 198,323 5 —
Interest-bearing deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,677 181,036 187,700 183,314 109,644 3 (4)
Total deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,989 205,675 209,045 203,055 126,694 3 (2)
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,420 38,882 37,807 38,025 38,022 17 3
Common equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,072 43,055 40,629 36,934 28,538 5 6
Total stockholders’ equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,713 44,268 41,482 37,265 28,538 8 7
Selected performance metrics
Purchase volume(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 271,167 $ 224,750 $ 201,074 $ 180,599 $ 135,120 21% 12%
Total net revenue margin(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.29% 8.34% 8.40% 8.39% 9.29% (5)bps (6)bps
Net interest margin(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.66 6.67 6.80 6.50 7.27 (1) (13)
Return on average assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.28 1.49 1.47 1.30 1.63 (21) 2
Return on average tangible assets(8) . . . . . . . . . . . . . . . . . . . . . . 1.35 1.57 1.55 1.38 1.76 (22) 2
Return on average common equity(9) . . . . . . . . . . . . . . . . . . . . . 8.51 10.08 10.54 9.96 11.25 (157) (46)
Return on average tangible common equity (“TCE”)(10) . . . . . . 12.87 15.79 17.35 17.25 22.05 (292) (156)
Equity-to-assets ratio(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.22 14.87 14.00 13.07 14.39 35 87
Non-interest expense as a percentage of average loans held for
investment(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.17 6.15 6.41 6.28 7.19 2 (26)
Efficiency ratio(13). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.51 54.64 55.19 55.14 56.70 87 (55)
Effective income tax rate from continuing operations . . . . . . . . 31.8 32.7 33.8 28.5 31.0 (90) (110)
Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,695 $ 3,414 $ 3,934 $ 3,555 $ 3,771 8% (13)%
Net charge-off rate(14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.75% 1.72% 2.04% 1.89% 2.94% 3bps (32)bps
December 31, Change
(Dollars in millions, except as noted) 2015 2014 2013 2012 2011 2015 vs.
2014
2014 vs.
2013
Balance sheet (period end)
Loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 229,851 $ 208,316 $ 197,199 $ 205,889 $ 135,892 10% 6%
Interest-earning assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302,007 277,849 265,170 280,096 179,878 9 5
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334,048 308,167 296,064 311,682 204,336 8 4
Interest-bearing deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191,874 180,467 181,880 190,018 109,945 6 (1)
Total deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217,721 205,548 204,523 212,485 128,226 6 1
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,115 48,457 40,654 49,910 39,561 22 19
Common equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,990 43,231 40,779 39,572 29,617 2 6
Total stockholders’ equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,284 45,053 41,632 40,425 29,617 5 8
Credit quality metrics (period end)
Allowance for loan and lease losses. . . . . . . . . . . . . . . . . . . . . . $ 5,130 $ 4,383 $ 4,315 $ 5,156 $ 4,250 17% 2%
Allowance as a percentage of loans held for investment
(“allowance coverage ratio”) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.23% 2.10% 2.19% 2.50% 3.13% 13bps (9)bps
30+ day performing delinquency rate . . . . . . . . . . . . . . . . . . . . 2.69 2.62 2.63 2.70 3.35 7 (1)
30+ day delinquency rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00 2.91 2.96 3.09 3.95 9 (5)
Capital ratios(15)
Common equity Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . 11.1% 12.5% N/A N/A N/A (140)bps **
Tier 1 common ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A N/A 12.2 10.9 9.6 ** **
Tier 1 capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.4 13.2 12.6 11.3 12.0 (80)bps 60bps
Total capital ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.6 15.1 14.7 13.5 14.8 (50) 40
Tier 1 leverage ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.6 10.8 10.1 8.6 10.0 (20) 70
Tangible common equity ratio(16) . . . . . . . . . . . . . . . . . . . . . . . . 8.9 9.5 8.9 7.9 8.2 (60) 60
Supplementary leverage ratio(17). . . . . . . . . . . . . . . . . . . . . . . . . 9.2 N/A N/A N/A N/A ** **