Capital One is an American Bancorp founded way back in 1994 in Richmond, Virginia. The company is headquartered in McLean, Virginia. Compared to the other banks topping the lists like American Express which was founded in 1850, Wells Fargo that was founded in 1852, CitiGroup in 1812, Bank of America in 1904 and JPMorgan Chase that was founded way more back in 1799, Capital one is a relatively new bank that was established in the 1990s and still has risen to be one among them.
What is Capital One?
Capital One like we already discussed is a compound Bancorp, which by its definition is a bank holding company. This term is used to refer to the companies that control one bank or more than one bank, but need not necessarily engage in banking by itself. The company is well known for its credit card business. In fact, the company began its business as a credit card company, before expanding into other areas of banking. In addition to this, the company is also specified in the auto loans.
The company works in three divisions, which include credit cards, consumer banking and commercial banking. The company is one of the largest credit card companies out there in Canada, the United States and the United Kingdom. The consumer banking division of the company provides general banking services like checking and savings accounts, money market accounts, loans and mortgages to individuals and businesses (small to mid-sized businesses). The commercial banking division of the company offers services like banking, lending, investment and real estate to commercial clients.
By the end of 2018, 75% of the company’s total income was from credit cards, 11% was from commercial banking and 14% from consumer banking. The company has expanded its business to the United Kingdom and Canada in 1996, which brought the credit cards of the company access to a large international market. In 2005, the company expanded its business into retail banking. Now, Capital One is the 5th largest consumer bank and the eighth largest bank (overall) in the United States.
Along with the services the bank is providing, it also acquired several other monolines. Few acquisitions of the bank include Hibernia National Bank based in New Orleans and Louisiana, North Fork Bank based in Melville and New York. The company also acquired NetSpend, Chevy Chase Bank, HSBC’s US credit card operations and many more. The company also acquired ING Direct, which was a pioneer of online banking in the united states.
The company has 755 branches and 2000 ATMs and 51,900 employees by 2019. It was ranked 17th on the 100 best companies to work for list by Fortune and 97th in Fortune’s 500. The company is also a pioneer in the mass marketing of credit cards. The company makes a revenue of $27 billion annually. The company’s total assets are more than $421.6 billion and the total equity is worth $60.2 billion.
Who Owns Capital One?
Capital One was founded by Richard Fairbank and Nigel Morris back in 1988. But then Capital One was not an independent company, it was part of Signet Financial Corp. Oakstone Financial was what Capital One used to be called initially and the Signet named it Capital one in the October of 1994, following the spin-off of Oakstone Financial from Signet Financial Corp. Richard Fairbank took charge as the CEO of the company on the 27th of July 1994. To date, Fairbank is the Chairman and the CEO of the company.
The company went gave out its Initial public offering in 1994, and a lot of people purchased the shares of the company. Basing this we can suggest that there is no single owner of Capital one since it is a public company.
There are five major companies when put together owns 29%of the stock of Capital One. Below are the details of those five companies and the value of the shares they possess in Capital One.
Starting with the company which owns the highest stock of Capital One, Dodge & Cox, that owns 8.49% of the company’s stock which is worth $3.7 billion. The second-highest stock is owned by Capital Research & Management Co., which owns 5.68% of the company’s stock worth $2.5 billion. The third highest shareholder of the company is Vanguard, which owns 5.45% of the company’s stock worth $2.4 billion. Following Vanguard, Fidelity owns 5.06% of the ownership interest and the value of the shares owned by this company is $2.2 billion. Last but not least, State Street is the fifth-highest company owns 4.17% of Capital One. The shares owned by this company are worth $1.8 billion.
Capital One is a bank holding company that is famous for its credit card business. Coming to the ownership of the company, the company went public in 1994 which is why no particular owner can be specified. There are five companies that we have mentioned above that together own 29% of the company’s share and Richard Fairbank is the Founder, Chairman and CEO of the company, who owns a major part of the company. Hope this article has provided you with the information you needed. To read more such articles visit the Zeen Website.