Exhibit 99.1
Capital One Financial Corporation
Monthly Charge-off and Delinquency Statistics
As of and for the month ended December 31, 2009
(dollars in thousands)
| December 2009 | ||||
| Domestic Card Metrics |
||||
| Net Principal Charge-Offs |
$ | 508,752 | ||
| Average Loans Held for Investment |
$ | 60,193,654 | ||
| Annualized Net Charge-Off Rate |
10.14 | % | ||
| 30 Days + Delinquencies |
$ | 3,487,390 | ||
| Period-end Loans Held for Investment |
$ | 60,299,827 | ||
| 30 Days + Delinquency Rate |
5.78 | % | ||
| Auto Finance Metrics (1) |
||||
| Net Principal Charge-Offs |
$ | 87,251 | ||
| Average Loans Held for Investment |
$ | 18,417,817 | ||
| Annualized Net Charge-Off Rate |
5.68 | % | ||
| 30 Days + Delinquencies |
$ | 1,824,255 | ||
| Period-end Loans Held for Investment |
$ | 18,186,064 | ||
| 30 Days + Delinquency Rate |
10.03 | % | ||
| International Card Metrics |
||||
| Net Principal Charge-Offs |
$ | 66,106 | ||
| Average Loans Held for Investment |
$ | 8,282,302 | ||
| Annualized Net Charge-Off Rate |
9.58 | % | ||
| 30 Days + Delinquencies |
$ | 539,030 | ||
| Period-end Loans Held for Investment |
$ | 8,223,835 | ||
| 30 Days + Delinquency Rate |
6.55 | % | ||
| (1) | December Auto Finance charge-offs reflect an accounting change in the recognition of charge-offs related to certain customers who have filed Chapter 7 bankruptcy, have not specifically reaffirmed the loan, but have chosen to remain current on their auto loan. Previously, the Company did not recognize these loans as charge-offs if customers remained current on the loan. Following the change, the Company now charges off these loans to the estimated net realizable value within approximately 30 days of receipt of bankruptcy information, unless customers specifically re-affirm the loan. This change resulted in a one-time increase to charge-offs of approximately $24 million, or approximately 153 basis points. |
Reconciliation to GAAP Measures
Our “managed” consolidated financial statements reflect adjustments made related to effects of securitization transactions qualifying as sales under accounting principles generally accepted in the United States (“GAAP”). We generate earnings from our “managed” loan portfolio which includes both the on-balance sheet loans and off-balance sheet loans. Our “managed” income statement takes the components of the servicing and securitizations income generated from the securitized portfolio and distributes the revenue and expense to appropriate income statement line items from which they originated. For this reason, we believe the “managed” consolidated financial statements and related managed metrics to be useful to stakeholders.
Net Charge-Off Rate
Average Loans Held for Investment used in the calculation of the Annualized Net Charge-Off Rate includes an estimate of the uncollectible portion of finance charge and fee receivables. We recognize earned finance charges and fee income on open ended loans according to the contractual provisions of the credit arrangements. When we do not expect full payment of finance charges and fees, we do not accrue the estimated uncollectible portion as income. The estimated uncollectible portion of finance charges and fees is adjusted quarterly.
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