Capital One 2015 Annual Report Download - page 9

8
strong and stable, the provision for credit losses increased as a result
of higher allowance for loan losses, primarily driven by domestic card
loan growth. Net income was $4.05 billion, down $378 million from 2014,
and earnings per share declined from $7.59 to $7.07. Return on average
tangible common equity was 12.9%, down from 2014, but still well above
both our cost of capital and the banking industry average.
Strong capital levels, coupled with solid capital management processes,
enabled us to pass the 2015 Federal Reserve CCAR stress test and
increase our quarterly dividend to forty cents per share beginning in the
second quarter of the year. We also completed $2.375 billion in common
share repurchases in 2015. We remain well positioned to generate and
distribute capital to shareholders, and we believe that capital
distribution will continue to be an important and enduring part
of how we deliver shareholder value.
2015 was a volatile year for the stock market and for banks. The
KBW Bank Index declined -1.6%. Against that backdrop,
Capital One’s total shareholder return (TSR) in 2015 was -10.9%
and our stock price closed the year at $72.18 per share. We
have delivered value to our shareholders over the long term.
Our three-year TSR was 30.9%, and our five-year TSR was
79.6%. Since we went public in November 1994, Capital One’s
TSR is 1,515.1%, well ahead of the KBW Bank Index return
of 175.2% over the same time period.
Our 2015 results and the choices that drove them have
put us in a strong position to deliver attractive shareholder
returns and distribute significant capital, with growth and
profitability at the higher end of banks.
We Are Helping Our Associates and
Our Communities Thrive
For over twenty years, we have worked tirelessly to assemble an amazing
team of associates, people who represent a diversity of backgrounds,
perspectives, and experiences. From our founding days, I have always
known that the most important part of my job, and the highest calling in
our company, is to find great people and give them the chance to be great.
A GREAT PLACE FOR GREAT TALENT
Our success is driven by our people.
Their skill, passion, and humanity
help our customers succeed.