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To: pcyhuang who wrote (225872)	10/23/2009 8:32:47 AM
From: ChanceIs	Read Replies (3) \| Respond to of 306849

Capital One Earnings Rise 14% >>>Please tell me from where all the earnings came if the loans are going bad at increasing rates???<<< By JOHN KELL Capital One Financial Corp. posted a 14% increase in third-quarter profit as the credit-card lender posted higher revenue and a lower tax rate, although loan-loss provisions rose. Shares climbed 6.8% to $41 in after-hours trading. Lenders have been hurt by rising delinquency rates, a key gauge of future losses, as consumers struggle amid high joblessness. The industry is also coping with sweeping legislation restricting certain fees and rate increases that will bite into income. A number of lenders have responded by scaling back on credit and getting tougher about lending standards. Capital One posted earnings of $425.6 million, up from $374.1 million. The per-share figure dropped to 94 cents from $1 due to a higher amount of shares outstanding. Revenue increased 2.8% to $3.6 billion. On a managed basis, revenue grew 9.9% to $4.63 billion at the Virginia-based banking company. Analysts polled by Thomson Reuters expected 14 cents and $4.12 billion, respectively. On a managed basis, which includes securitized loans still managed by Capital One, loan-loss provisions were $2.2 billion, up 22% from a year earlier and 16% from the second quarter. The net charge-off rate climbed to 6% from 4.3% and 5.62%, respectively, while delinquencies of at least 30 days were 4.55%, compared with 3.99% and 4.09%, respectively. The tangible common equity ratio, which reflects how much of its hard assets are held by common shareholders, was 6.21% at the end of the quarter, down from 6.47% a year earlier, but up from 5.69% at the end of the second quarter. Capital One's U.S. card business's charge-off rate rose to 9.64% from 6.13% a year earlier and 9.23% in the second quarter. Delinquencies were 5.38%, compared with 4.2% and 4.77%, respectively.

To: pcyhuang who wrote (225872)	10/23/2009 11:44:34 AM
From: pcyhuang	Respond to of 306849

re: COF 9:54 AM ET 10/23/09 \| Briefing.com Capital One (COF 42.09, +3.76) reported third quarter earnings Thursday night that blew away Wall Street estimates. The company reported third quarter earnings of $0.94, which was $0.80 better than the First Call consensus of $0.14. Revenue rose 11.7% year-over-year to $4.6 billion, well above the $4.11 billion consensus. Capital One said, "We are successfully weathering the storm, but the storm is not over. Therefore, we will continue to take the decisive actions necessary to place our company in the best position to navigate the downturn and drive shareholder value over the cycle." Allowance as a percentage of reported loans rose to 5.08% in the third quarter of 2009 from 4.84% in the second quarter of 2009 and from 3.59% from the third quarter of 2008, excluding the effect of Chevy Chase Bank. The company's TCE ratio increased to 6.2% on September 30, 2009, an improvement of 52 basis points from the second quarter level of 5.7%. The Tier 1 risk-based capital ratio of an estimated 11.8%, increased 2.1 percentage points, and continues to be well above the regulatory well-capitalized minimum. During the third quarter of 2009, the company realigned its business segment reporting structure to better reflect the manner in which the performance of the company's operations is evaluated. The company now reports the results of its business through three operating segments: Credit Card, Commercial Banking, and Consumer Banking. Cheers,