Capital One Bank Evaluation

Topics: Federal Reserve System, Bond, Finance, Stock / Pages: 6 (1464 words) / Published: Mar 20th, 2013
Bank Performance Evaluation Project

Capital One Bank
Capital One Financial Corporation’s headquarters is in McLean, Virginia and in the Federal Reserve district five, The Federal Reserve of Richmond, Virginia. It is number 89 in peer group one with their consolidated assets of over $300 million. Peer group one banks are institutions that have equal to or greater than $10 million in consolidated assets. Capital One Bank specializes in credit cards, home loans, auto loans, while providing banking and savings products. They are a Fortune 500 company and have paved the way for mass credit card marketing in the 1990’s.
Since its inception in 1988, Capital One has acquired numerous smaller banks and has kept growing to become one of the most well know bank holding companies in the United States. Unfortunately in November 2008, Capital One Bank suffered devastating losses and received $3.5 billion bail-out funds from the Federal Emergency Economic Stabilization Act. But by mid 2009, Capital One Bank had bought back over 3.5 million of their preferred stock shares from the United States Treasury. Although Capital One Bank has experienced some economic hardships in the recent past, it seems to be holding steady after the wake of the 2008 financial system meltdown.
If we take a close look at this bank’s performance report, we can find some interesting information about their biggest asset components. For Capital One’s assets their percentage for loans to individuals is relatively high, 36.77 percent compared to that of the peer group average of 4.98 percent. This is indicative of a company that produces a large number of loans to individuals in the form of real estate, auto, and credit cards. This also indicates that this bank is interested in making profits from interest on loans. Real estate loans for this company are high with 22.26 percent compared to the peer group average of 32.89 percent. Although this bank dabbles in commercial banking, it keeps its

Cited: Associated Press. "News Summary:Capital One Posts Higher 3Q Profit." Bloomberg Businessweek News. 18 2012: n. page. Web. 10 Dec. 2012. <>. "Capital One Financial Corporation Market Cap." Ycharts. N.p., 06 2012. Web. 6 Dec 2012. <>. "Core Deposits." Investopedia US. United States: 2012. < Olsen Research Accociates, . "Term Federal Funds Sold." BANKdynamics. Olsen Research Associates, Inc., 07 2007. Web. Web. 1 Dec. 2012. <>. Peavler, Rosemary. "Business Finance." Business Finance. n. page. Web. 6 Dec. 2012. <>. Stock Quote and Chart. 2012. Capital One, McLean, Virginia. Web. 10 Dec 2012. <>.

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