CapOne Strategy Business Review

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Debt & Equity 2006 Strategy PresentationRich FairbankFebruary 16, 2006

Forward looking statementsForward-Looking Information Please note that the following materials containing information regarding Capital Ones financial performance speak only as of the particular date or dates indicated in these materials. Capital One does not undertake any obligation to update or revise any of the information contained herein whether as a result of new information, future events or otherwise. Certain statements in this presentation and other oral and written statements made by the Company from time to time, are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns, earnings per share or other financial measures for Capital One. To the extent any such information is forward-looking, it is intended to fit within the safe harbor for forward-looking information provided by the Private Securities Litigation Reform Act of 1995. Numerous factors could cause our actual results to differ materially from those described in forward-looking statements, including, among other things: continued intense competition from numerous providers of products and services which compete with our businesses; an increase or decrease in credit losses; financial, legal, regulatory or accounting changes or actions; changes in interest rates; general economic conditions affecting consumer income, spending and repayments; changes in our aggregate accounts or consumer loan balances and the growth rate and composition thereof; the amount of deposit growth; changes in the reputation of the credit card industry and/or the company with respect to practices and products; our ability to continue to securitize our credit cards and consumer loans and to otherwise access the capital markets at attractive rates and terms to fund our operations and future growth; our ability to successfully continue to diversify our assets; losses associated with new products or services or expansion internationally; the companys ability to execute on its strategic and operational plans; any significant disruption in our operations or technology platform; our ability to effectively control our costs; the success of marketing efforts; our ability to execute effective tax planning strategies; our ability to recruit and retain experienced management personnel; the risks that the Hibernia businesses will not be integrated successfully and that the cost savings and other synergies from the transaction may not be fully realized; the long-term impact of the Gulf Coast Hurricanes on the impacted region, including the amount of property and credit losses, the amount of investment, including deposits, in the region, and the pace and magnitude of economic recovery in the region; and other factors listed from time to time in reports we file with the Securities and Exchange Commission (the SEC) , including, but not limited to, factors set forth under the caption Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2004, and any subsequent quarterly reports on Form 10-Q. You should carefully consider the factors discussed above in evaluating these forward-looking statements. All information in these slides is based on the consolidated results of Capital One Financial Corporation. A reconciliation of any non-GAAP financial measures included in this presentation can be found in the Companys most recent Form 8-K or Form 10-Q concerning quarterly financial results, available on the Companys website at www.capitalone.com in Investor Relations under About Capital One.

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Capital One has generated strong growth and returns since the IPO in 1994Managed Loans$B $

EPS

$120$105.5B

$8 $7$6.73

$100

$6$80

$5 $4 $3

$60

$40

$2$20

$1 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 20041994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

$0

2005

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From a core business of credit cards, direct mail and IBS, we have transformed the company

Products

Geographies

Channels

Skills

Brand

Auto lending Small business Home equity

UK Canada

Internet Dealers Stores Branches

Mergers and acquisitions Personal selling

Installment lending Medical finance Banking and deposits

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We are diversifying both sides of the balance sheet($B)

Managed Outstandings$105.5Other

($B)$50 $45 $40(Includes Hibernia)

Total Deposits$47.9

$120

$100$80 $71 $60 $45

$80

Global Financial Services

$35 $30

$60

Auto Loans

$25.6

$25 $20$17.3 $12.8 $8.4 $3.8 $2.0

$22.4

$40U.S. Credit Cards

$15 $10 $5

$20

$0

1998

1999

2000

2001

2002

2003

2004

20055

2001

2002

2003

2004

2005

$0

Debt & Equity Conference February, 2006

We are well positioned for continued success

Financial Strength

Stability

Growth Opportunities

End Game Positioning

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Our strategy works backward from the marketplace

Market end game National Scale Lending Local Scale Banking Diversified assets and liabilities Advantaged customer access Where they buy (channels) In their wallet (relationships) In their hearts and minds (brand)

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Consumer lending businesses are consolidating nationallyTop 10 Player Share - 2004Consolidated100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%Card Home Equity Mortgage Student Auto Installment Loans Small Business Lending

Consolidating

Fragmented

89%

66% 61% 55% 42%

22% 16%

Note: Share of originations for Home Equity, Mortgage, Student, Auto; Share of Outstandings for Card, IL, Small Business Source: Company Reports, VISA, Masterard, SMR, Mortgage News, Department of Education, JDPower, Capital One Estimates

Debt & Equity Conference February, 2006

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The pace of consolidation is rapidIndustry Consolidation- Share of Top 10 -

100%89%

90% 80% 70% 60% 50% 40% 30%31% 21% 43% 41% 42% 66% 62% 61% 55%

Card

Home Equity Mortgage Student Auto

20% 10% 0% 1997 1998 1999 2000 2001 2002 2003 2004

Note: Share of originations for Home Equity, Mortgage, Student, Auto; Share of Outstandings for Card, IL, Small Business Source: Company Reports, VISA, Masterard, SMR, Mortgage News, Department of Education, JDPower, Capital One Estimates

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The monoline graveyard is crowdedConsumer lending monolinesDeadFirst Merchants Search Financial The Money Store Western Fidelity Aegis Reliance National Auto Monaco Eagle Jayhawk National Auto Finance TFC enterprises First Enterprise Mercury Aames Iown Finova Delta Financial The Credit Store NAL Financial Royal Acceptance Commercial Financial Services NextCard DVINote: Yellow indicates companies acquired in 2005

AcquiredArcadia Ugly Duckling Beneficial First USA Rock Financial Advanta Reliastar Autofinance Group First Fidelity First Investors MS Financial Regional Acceptance Heller Financial GreenTree Household Onyx Providian MBNA WFS Financial Metris

Existing MonolinesIndyMac Countrywide Americredit Sallie Mae Nelnet First Marblehead Conseco Nicholas CompuCredit

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National scale players compete across multiple consumer lending businesses2005 Originations RankMortgageHome Equity*

Card(Outstandings Rank)

Auto(Non-captive)

CompanyChase B of A / MBNA Citigroup Wells Fargo Capital One** Washington Mutual Countrywide 4 6 7 2 68* 3 1

2 1 3 6 20 5 4

2 1 3 10 4 9 --

1 3 12 5 2 ---

Source: Company Reports, VISA, Mastercard, SMR, Mortgage News, JDPower, Capital One Estimates *Data as of 2Q2005. **Capital One Mortgage includes HIB and eSmartloan. Auto includes Onyx and Hibernia. 1 Estimate based upon $2.5B of FY2005 Originations. 2 Estimate based upon $24.1B of FY2005 originations.

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Deposits are the primary funding source for most lending products2004 Funding Mix100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Card Mortgage Auto Home Equity Small Installment Business LoansSecuritized Deposits and other funding

Note: Mortgage, Auto and Home Equity are as a % of originations; Card Small Business and IL are as a % of outstandings Originations are classified as funded through securitizations, even if they were initially whole loan sold. Source: CSFB; Bond Market Association; MBAA; Visa/Mastercard; Big Wheels. Small Business and IL COF estimated

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National deposit players do not exhibit cost advantagesEfficiency Ratio vs. Total Deposits Worse Better

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120$200 $300 $400 $500 $600

JPChase Wachovia Wells Fargo USBancorp Hibernia Citi BofA

Total Deposits ($B)Note: Efficiency ratio = non-interest expense/revenue; Excludes banks with efficiency ratio >100%, 2004 data Source: SNL.

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Local scale is critical in depositsRetail Deposit Share*25%