<PAGE>
Exhibit 99.1
FOR IMMEDIATE RELEASE: Contact: Paul Paquin Tatiana Stead
--------------------- V.P., Investor Relations Media Relations
January 16, 2001 (703) 205-1039 (703) 205-1070
Capital One Reports Record Earnings For 2000
Falls Church, Va. (January 16, 2001) -- Capital One Financial Corporation (NYSE:
COF) today announced 30 percent earnings per share growth for the year 2000.
Earnings were $469.6 million, or $2.24 per share, in 2000 compared with earnings
of $363.1 million, or $1.72 per share, in 1999. For the fourth quarter of 2000,
earnings were $128.3 million, or $.61 per share, versus earnings of $97.9
million, or $.47 per share for the comparable period in the prior year.
"Capital One has posted a strong finish for 2000, delivering on our stated
goal of 30 percent earnings per share growth," said Richard D. Fairbank, Capital
One's Chairman and Chief Executive Officer. "We have targeted another year of 30
percent earnings growth and at least 20 percent return on equity in 2001."
During the fourth quarter, Capital One added 4.3 million net new accounts,
bringing total accounts to 33.8 million. Managed consumer loan balances
increased by a record $5.4 billion during the quarter to $29.5 billion. Total
managed revenue increased during the quarter at a 40 percent annualized rate,
compared with 40 percent in the third quarter of 2000 and 20 percent in the
fourth quarter of 1999. The managed net charge-off ratio was 3.98 percent for
the three months ended December 31, 2000. In addition, the Company added $70
million to the allowance for loan losses during the fourth quarter, increasing
the allowance to $527 million, or 3.49 percent of reported consumer loans, as of
December 31, 2000.
"Strong financial performance and robust growth in the fourth quarter have
been hallmarks of Capital One," said Nigel W. Morris, Capital One's President
and Chief Operating Officer. "We are firing on all cylinders, with loan growth
in all segments, 40 percent revenue growth, and more than four million net new
customers added".
-more-
<PAGE>
Capital One Reports Record Earnings For 2000
Conference Call to Be Hosted Today at 5:00 pm EST
Cost per account declined in the fourth quarter to $78 from $83 in the
third quarter of 2000 and $86 in the fourth quarter of 1999. Contributing to
the strong account and managed loan growth during the quarter was an increase in
marketing expense to a record $259 million compared to $233 million in the third
quarter of 2000 and $202 million in the comparable period of the prior year.
Online account originations and online account servicing for the full year
surpassed the company's previously stated goals of one million originations and
two million accounts serviced online.
The company cautioned that its current expectations for 2001 earnings and
return on equity are forward-looking statements and actual results could differ
materially from current expectations due to a number of factors, including:
competition in the credit card industry; the actual account and balance growth
achieved by the company; the company's ability to access the capital markets at
attractive rates and terms to fund its operations and future growth; and general
economic conditions affecting consumer income and spending, which may affect
consumer bankruptcies, defaults and charge-offs. A discussion of these and
other factors can be found in Capital One's annual and other reports filed with
the Securities and Exchange Commission, including, but not limited to, Capital
One's report on Form 10-K for the year ended December 31, 1999.
Headquartered in Falls Church, Virginia, Capital One Financial Corporation
(www.CapitalOne.com) is a holding company whose principal subsidiaries, Capital
One Bank and Capital One, F.S.B., offer consumer lending products. Capital
One's subsidiaries collectively had 33.8 million customers and $29.5 billion in
managed loans outstanding as of December 31, 2000. Capital One is one of the
major financial service providers on the Internet, with online account
decisioning, real-time account numbering, online retail deposits and a growing
number of customers serviced on-line. Capital One is a FORTUNE 500 company that
trades on the New York Stock Exchange under the symbol "COF" and is included in
the S&P 500 index.
# # #
<PAGE>
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
<TABLE>
2000 2000 2000 2000 1999
(In millions, except per share data and as noted) Q4 Q3 Q2 Q1 Q4
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Earnings (Managed Basis)
Net Interest Income $ 716.1 $ 665.1 $ 614.4 $ 618.9 $ 574.8
Non-Interest Income 696.5 619.9 554.4 489.3 473.6
---------------------------------------------------------------------------------
Total Revenue 1,412.5 1,285.0 1,168.8 1,108.2 1,048.4
Provision for Loan Losses 329.1 269.0 245.0 226.1 218.0
Marketing Expenses 259.5 233.2 211.6 201.9 202.4
Operating Expenses 617.1 585.8 530.7 508.0 478.8
---------------------------------------------------------------------------------
Income Before Taxes 206.9 197.0 181.5 172.1 149.2
Tax Rate 38.0 % 38.0 % 38.0 % 38.0 % 34.4 %
Net Income $ 128.3 $ 122.1 $ 112.5 $ 106.7 $ 97.9
------------------------------------------------------------------------------------------------------------------------------------
Common Share Statistics
Basic EPS $ 0.65 $ 0.62 $ 0.57 $ 0.54 $ 0.50
Diluted EPS $ 0.61 $ 0.58 $ 0.54 $ 0.51 $ 0.47
Dividends Per Share $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03
Book Value Per Share (period end) $ 9.94 $ 9.02 $ 8.39 $ 7.93 $ 7.69
Stock Price Per Share (period end) $ 65.81 $ 70.06 $ 44.63 $ 47.94 $ 48.19
Total Market Capitalization (period end) $ 12,989.3 $ 13,783.1 $ 8,747.4 $ 9,376.5 $ 9,495.2
Shares Outstanding (period end) 197.4 196.7 196.0 195.6 197.0
Shares Used to Compute Basic EPS 197.0 196.3 196.0 196.6 197.3
Shares Used to Compute Diluted EPS 210.4 210.1 208.6 208.7 210.3
------------------------------------------------------------------------------------------------------------------------------------
Managed Loan Statistics (period avg.)
Average Loans $ 26,377 $ 23,020 $ 20,915 $ 20,181 $ 18,974
Average Earning Assets $ 28,188 $ 24,749 $ 22,581 $ 22,038 $ 21,323
Average Assets $ 30,234 $ 27,015 $ 24,567 $ 23,497 $ 22,714
Average Equity $ 1,865 $ 1,743 $ 1,626 $ 1,567 $ 1,493
Net Interest Margin 10.16 % 10.75 % 10.88 % 11.23 % 10.78 %
Risk Adjusted Margin (1) 16.32 % 17.24 % 17.03 % 16.57 % 16.24 %
Return on Average Assets (ROA) 1.70 % 1.81 % 1.83 % 1.82 % 1.72 %
Return on Average Equity (ROE) 27.51 % 28.02 % 27.68 % 27.24 % 26.22 %
Net Charge-Off Rate 3.98 % 3.80 % 3.97 % 3.87 % 3.86 %
Net Charge-Offs $ 262.3 $ 218.4 $ 207.6 $ 195.3 $ 182.9
Cost Per Account (in dollars) $ 78.09 $ 82.84 $ 80.97 $ 82.93 $ 85.98
------------------------------------------------------------------------------------------------------------------------------------
Managed Loan Statistics (period end)
Reported Loans $ 15,113 $ 12,331 $ 11,383 $ 9,449 $ 9,914
Securitized Loans 14,411 11,821 10,500 10,850 10,323
---------------------------------------------------------------------------------
Total Loans $ 29,524 $ 24,152 $ 21,883 $ 20,299 $ 20,237
Delinquency Rate (30+ days) 5.23 % 5.32 % 5.35 % 5.26 % 5.23 %
Number of Accounts (000's) 33,774 29,437 27,133 25,302 23,705
Total Assets $ 33,286 $ 28,185 $ 25,610 $ 23,361 $ 23,638
Capital, Including Preferred Interests $ 2,061.0 $ 1,873.8 $ 1,743.9 $ 1,649.3 $ 1,613.7
Capital to Managed Assets Ratio 6.19 % 6.65 % 6.81 % 7.06 % 6.83 %
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</TABLE>
(1) Risk adjusted margin is total revenue less net charge-offs as a percentage
of average earning assets.
<PAGE>
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)
<TABLE>
<CAPTION>
Dec 31 Sept 30 Dec 31
2000 2000 1999
---------------- ---------------- ---------------
<S> <C> <C> <C>
Assets:
Cash and due from banks $ 74,493 $ 81,403 $ 134,065
Federal funds sold and resale agreements 60,600 12,688 0
Interest-bearing deposits at other banks 101,614 128,377 112,432
---------------- ---------------- ---------------
Cash and cash equivalents 236,707 222,468 246,497
Securities available for sale 1,696,815 1,652,330 1,856,421
Consumer loans 15,112,712 12,331,088 9,913,549
Less: Allowance for loan losses (527,000) (457,000) (342,000)
---------------- ---------------- ---------------
Net loans 14,585,712 11,874,088 9,571,549
Premises and equipment, net 664,461 560,974 470,732
Interest receivable 82,675 93,817 64,637
Accounts receivable from securitizations 1,143,902 1,403,377 661,922
Other 479,069 571,771 464,685
---------------- ---------------- ---------------
Total assets $ 18,889,341 $ 16,378,825 $ 13,336,443
================ ================ ===============
Liabilities:
Interest-bearing deposits $ 8,379,025 $ 6,323,924 $ 3,783,809
Other borrowings 2,925,938 2,820,533 2,780,466
Senior notes 4,050,597 4,119,101 4,180,548
Interest payable 122,658 109,842 116,405
Other 1,448,609 1,230,037 959,608
---------------- ---------------- ---------------
Total liabilities 16,926,827 14,603,437 11,820,836
Stockholders' Equity:
Common stock 1,997 1,997 1,997
Paid-in capital, net 575,179 559,595 613,590
Retained earnings and cumulative other comprehensive income 1,474,024 1,322,744 991,034
Less: Treasury stock, at cost (88,686) (108,948) (91,014)
---------------- ---------------- ---------------
Total stockholders' equity 1,962,514 1,775,388 1,515,607
---------------- ---------------- ---------------
Total liabilities and stockholders' equity $ 18,889,341 $ 16,378,825 $ 13,336,443
================ ================ ===============
</TABLE>
<PAGE>
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
Dec 31 Sept 30 Dec 31 Dec 31 Dec 31
2000 2000 1999 2000 1999
--------- ------------------ --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Interest Income:
Consumer loans, including fees $ 679,079 $ 606,872 $ 417,384 $ 2,286,774 $ 1,482,371
Securities available for sale 25,608 23,367 31,437 96,554 105,438
Other 1,548 1,474 1,783 6,574 5,675
--------- --------- --------- ----------- -----------
Total interest income 706,235 631,713 450,604 2,389,902 1,593,484
Interest Expense:
Deposits 118,072 90,197 49,409 324,008 137,792
Other borrowings 57,699 55,967 32,820 202,034 100,392
Senior notes 71,904 72,679 72,569 274,975 302,698
--------- --------- --------- ----------- -----------
Total interest expense 247,675 218,843 154,798 801,017 540,882
--------- --------- --------- ----------- -----------
Net interest income 458,560 412,870 295,806 1,588,885 1,052,602
Provision for loan losses 247,226 193,409 120,000 718,170 382,948
--------- --------- --------- ----------- -----------
Net interest income after provision for loan losses 211,334 219,461 175,806 870,715 669,654
Non-Interest Income:
Servicing and securitizations 291,634 307,343 310,321 1,152,375 1,187,098
Service charges and other fees 504,239 424,087 297,717 1,644,264 1,040,944
Interchange 76,207 65,039 46,585 237,777 144,317
--------- --------- --------- ----------- -----------
Total non-interest income 872,080 796,469 654,623 3,034,416 2,372,359
Non-Interest Expense:
Salaries and associate benefits 287,742 264,171 207,457 1,023,367 780,160
Marketing 259,461 233,188 202,405 906,147 731,898
Communications and data processing 74,436 78,064 75,592 296,255 264,897
Supplies and equipment 76,171 66,325 54,580 252,937 181,663
Occupancy 29,404 30,721 22,863 112,667 72,275
Other 149,302 146,488 118,288 556,284 434,103
--------- --------- --------- ----------- -----------
Total non-interest expense 876,516 818,957 681,185 3,147,657 2,464,996
--------- --------- --------- ----------- -----------
Income before income taxes 206,898 196,973 149,244 757,474 577,017
Income taxes 78,621 74,850 51,372 287,840 213,926
--------- --------- --------- ----------- -----------
Net income $ 128,277 $ 122,123 $ 97,872 $ 469,634 $ 363,091
========= ========= ========= =========== ===========
Basic earnings per share $ 0.65 $ 0.62 $ 0.50 $ 2.39 $ 1.84
========= ========= ========= =========== ===========
Diluted earnings per share $ 0.61 $ 0.58 $ 0.47 $ 2.24 $ 1.72
========= ========= ========= =========== ===========
Dividends paid per share $ 0.03 $ 0.03 $ 0.03 $ 0.11 $ 0.11
========= ========= ========= =========== ===========
</TABLE>
<PAGE>
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
<TABLE>
<CAPTION>
Managed/(1)/ Quarter Ended 12/31/00 Quarter Ended 9/30/00
------------------------------------ ------------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
------- ------- ----- ------- ------- -----
<S> <C> <C> <C> <C> <C> <C>
Earning assets:
Consumer loans $ 26,377,427 1,146,056 17.38 % $ 23,020,158 $ 1,039,473 18.06 %
Securities available for sale 1,688,092 25,608 6.07 1,557,088 23,367 6.00
Other 122,192 1,548 5.07 171,881 1,474 3.43
------------------------------------ ------------------------------------
Total earning assets $ 28,187,711 1,173,212 16.65 % $ 24,749,127 $ 1,064,314 17.20 %
========================== ============================
Interest-bearing liabilities:
Deposits $ 7,155,771 118,072 6.60 % $ 5,787,748 $ 90,197 6.23 %
Other borrowings 3,290,499 57,699 7.01 3,084,407 55,967 7.26
Senior notes 4,084,761 71,904 7.04 4,139,665 72,679 7.02
Securitization liability 12,274,193 209,481 6.83 10,908,397 180,412 6.62
-------------------------------------- ------------------------------------
Total interest-bearing liabilities $ 26,805,224 457,156 6.82 % $ 23,920,217 $ 399,255 6.68 %
========================== ===========================
-------- --------
Net interest spread 9.83 % 10.52 %
======== ========
Interest income to average earning assets 16.65 % 17.20 %
Interest expense to average earning assets 6.49 6.45
-------- --------
Net interest margin 10.16 % 10.75 %
======== ========
<CAPTION>
Earning assets:
Managed/(1)/ Quarter Ended 12/31/99
------------------------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- -----
<S> <C> <C> <C>
Earning assets:
Consumer loans $ 18,974,409 $ 848,176 17.88 %
Securities available for sale 2,175,963 31,437 5.78
Other 172,370 2,557 5.93
------------------------------------
Total earning assets $ 21,322,742 $ 882,170 16.55 %
===========================
Interest-bearing liabilities:
Deposits $ 3,648,919 $ 49,409 5.42 %
Other borrowings 2,037,805 32,820 6.44
Senior notes 4,258,661 72,569 6.82
Securitization liability 10,329,929 152,572 5.91
------------------------------------
Total interest-bearing liabilities $ 20,275,314 $ 307,370 6.06 %
--------
Net interest spread 10.49 %
========
Interest income to average earning assets 16.55 %
Interest expense to average earning assets 5.77
--------
Net interest margin 10.78 %
========
</TABLE>
(1) The information in this table reflects the adjustment to add back the effect
of securitized loans.
