The Metamorphosis Of Capital One
This week's Economist includes an article about the metamorphosis of Capital One from monoline credit card issuer to consumer banking, broadly defined, as highlighted by its recently announced plan to acquire North Fork Bank.
The hope is that the marriage will generate huge revenue growth. “Individually these companies are somewhat lopsided,” says Michael Poulos, of Mercer Oliver Wyman, a consultancy, pointing to North Fork's excess deposits (ie, liabilities) and Capital One's excess assets (ie, loans). “The combined company will be able to grow faster, and at better margins, than either could have alone.”
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