Latest news with #RichardD.Fairbank
Business Wire
18-05-2025
- Business
- Business Wire
Capital One Completes Acquisition of Discover
MCLEAN, Va.--(BUSINESS WIRE)--Capital One Financial Corporation (NYSE: COF) today announced that it has completed its acquisition of Discover Financial Services. 'This deal brings together two innovative, mission-driven companies that together are poised to deliver breakthrough products and experiences to consumers, businesses, and merchants,' said Richard D. Fairbank, Founder and CEO of Capital One. 'I am particularly grateful for the leadership and partnership of Discover's Board of Directors, its Executive Management Committee, and interim CEO Michael Shepherd. Their advocacy for Discover and its customers, and our shared commitment to a successful closing were instrumental in achieving today's milestone. Through the efforts of thousands of associates across Capital One and Discover, we are well-positioned to continue our quest to change banking for good for millions of customers,' added Fairbank. Capital One announced on February 19, 2024, that it had entered into a definitive agreement to acquire Discover. The acquisition was approved by the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency on April 18, 2025, and by the Delaware State Bank Commissioner on December 18, 2024. Stockholders of Capital One and Discover voted in favor of the deal on February 18, 2025. In connection with the acquisition, Capital One expanded its Board of Directors from 12 to 15 and appointed Thomas G. Maheras, Michael Shepherd, and Jennifer L. Wong, each a member of Discover's former Board of Directors, to serve on the Capital One Board of Directors. At this time, Capital One and Discover customer accounts and banking relationships remain unchanged. Customers will be provided with comprehensive information in advance of any forthcoming changes. Until then, customers do not need to take any action and will continue to be served through their respective Capital One and Discover customer tools and channels. Capital One intends to continue to offer Discover credit card products as Discover-branded cards alongside the other consumer cards currently offered by Capital One. The Discover®, PULSE®, and Diners Club International® networks will join our suite of offerings. Investing in our Communities Capital One is committed to investing in our local communities and expanding economic and financial opportunity. Implementation of Capital One's historic, $265 billion Community Benefits Plan, developed in connection with the acquisition and in partnership with leading community organizations, will also now begin, mobilizing funding and support to advance lending, investment, and services to strengthen economic opportunity and financial well-being across America. Advisors Wachtell, Lipton, Rosen & Katz served as legal advisor, Cleary Gottlieb served as co-antitrust legal advisor, and Centerview Partners LLC served as financial advisor to Capital One. Sullivan & Cromwell LLP served as legal advisor and PJT Partners and Morgan Stanley & Co. LLC served as financial advisors to Discover. Further information on Capital One's acquisition of Discover can be found at About Capital One Capital One Financial Corporation ( is a financial holding company which, along with its subsidiaries, had $367.5 billion in deposits and $493.6 billion in total assets as of March 31, 2025. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol 'COF' and is included in the S&P 100 index. Additional information about Capital One can be found at Capital One About at Forward-Looking Statements Information in this communication, other than statements of historical facts, may constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include, but are not limited to, statements related to the expected benefits of the transaction. Forward-looking statements may be identified by terminology such as 'may,' 'will,' 'should,' 'targets,' 'scheduled,' 'plans,' 'intends,' 'goal,' 'anticipates,' 'expects,' 'believes,' 'forecasts,' 'outlook,' 'estimates,' 'potential,' or 'continue' or negatives of such terms or other comparable terminology. All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Capital One to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, among others, risks relating to the transaction, including the risk that the cost savings and any revenue synergies and other anticipated benefits from the transaction may not be fully realized or may take longer than anticipated to be realized, and the risk that the integration of Discover's business and operations into Capital One will be materially delayed or will be more costly or difficult than expected. Additional factors that could affect future results of Capital One can be found in Capital One's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, in each case filed with the SEC and available on the SEC's website at Capital One disclaims any obligation and do not intend to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by federal securities laws.
Yahoo
23-04-2025
- Business
- Yahoo
Capital One Reports First Quarter 2025 Net Income of $1.4 Billion, or $3.45 Per Share
Net of adjusting items, First Quarter 2025 Net Income of $4.06 per share(1) MCLEAN, Va., April 22, 2025--(BUSINESS WIRE)--Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2025 of $1.4 billion, or $3.45 per diluted common share, compared with net income of $1.1 billion, or $2.67 per diluted common share in the fourth quarter of 2024, and with net income of $1.3 billion, or $3.13 per diluted common share in the first quarter of 2024. Adjusted net income(1) for the first quarter of 2025 was $4.06 per diluted common share. "Last week, we received regulatory approval for our acquisition of Discover and we're fully mobilized to complete the transaction on May 18th," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "The combination of Capital One and Discover will create a leading consumer banking and payments platform with unique capabilities, modern technology, and powerful brands. It leverages Capital One's technology transformation and digital capabilities across a significantly larger customer franchise. And it offers the potential to enhance competition and create significant value for merchants and customers." The quarter included the following adjusting items: (Dollars in millions, except per share data) Pre-Tax After-TaxDiluted EPS Impact Impact Legal reserve activities $ 198 $ 0.39 Discover integration expenses $ 110 $ 0.22 All comparisons below are for the first quarter of 2025 compared with the fourth quarter of 2024 unless otherwise noted. First Quarter 2025 Income Statement Summary: Total net revenue decreased 2 percent to $10.0 billion. Total non-interest expense decreased 3 percent to $5.9 billion: 13 percent decrease in marketing. Less than 1 percent decrease in operating expenses. Pre-provision earnings(2) remained substantially flat at $4.1 billion. Provision for credit losses decreased $273 million to $2.4 billion: Net charge-offs of $2.7 billion. $368 million loan reserve release. Net interest margin of 6.93 percent, a decrease of 10 basis points. Efficiency ratio of 59.02 percent. Adjusted efficiency ratio(1) of 55.94 percent. Operating efficiency ratio of 47.00 percent. Adjusted operating efficiency ratio(1) of 43.92 percent. First Quarter 2025 Balance Sheet Summary: Common equity Tier 1 capital ratio(3) under Basel III Standardized Approach of 13.6 percent at March 31, 2025. Period-end loans held for investment in the quarter decreased $4.2 billion, or 1 percent, to $323.6 billion. Credit Card period-end loans decreased $5.3 billion, or 3 percent, to $157.2 billion. Domestic Card period-end loans decreased $5.3 billion, or 3 percent, to $150.3 billion. Consumer Banking period-end loans increased $804 million, or 1 percent, to $78.9 billion. Auto period-end loans increased $827 million, or 1 percent, to $77.7 billion. Commercial Banking period-end loans increased $338 million, or less than 1 percent, to $87.5 billion. Average loans held for investment in the quarter increased $514 million, or less than 1 percent, to $322.4 billion. Credit Card average loans decreased $919 million, or 1 percent, to $156.4 billion. Domestic Card average loans decreased $651 million, or less than 1 percent, to $149.6 billion. Consumer Banking average loans increased $1.3 billion, or 2 percent, to $78.5 billion. Auto average loans increased $1.3 billion, or 2 percent, to $77.2 billion. Commercial Banking average loans increased $174 million, or less than 1 percent, to $87.5 billion. Period-end total deposits increased $4.8 billion, or 1 percent, to $367.5 billion, while average deposits increased $5.8 billion, or 2 percent, to $364.1 billion. Interest-bearing deposits rate paid decreased 23 basis points to 3.22 percent. Earnings Conference Call Webcast Information The company will hold an earnings conference call on April 22, 2025 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page ( Under "About," choose "Investors" to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through May 6, 2025 at 5:00 PM Eastern Time. Forward-Looking Statements Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Forward-looking statements often use words such as "will," "anticipate," "target," "expect," "think," "estimate," "intend," "plan," "goal," "believe," "forecast," "outlook" or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under "Part I—Item 1A. Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the "SEC") and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC. About Capital One Capital One Financial Corporation ( is a financial holding company which, along with its subsidiaries, had $367.5 billion in deposits and $493.6 billion in total assets as of March 31, 2025. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index. (1) This is a non-GAAP measure. We believe non-GAAP measures help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on April 22, 2025 with the SEC, "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for a reconciliation and additional information on non-GAAP measures. (2) Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on April 22, 2025 with the SEC, "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for a reconciliation and additional information on non-GAAP measures. (3) Regulatory capital metrics as of March 31, 2025 are preliminary and therefore subject to change. Capital One Financial Corporation Financial Supplement(1)(2) First Quarter 2025 Table of Contents Capital One Financial Corporation Consolidated Results Page Table 1: Financial Summary—Consolidated 1 Table 2: Selected Metrics—Consolidated 3 Table 3: Consolidated Statements of Income 4 Table 4: Consolidated Balance Sheets 6 Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4) 8 Table 6: Average Balances, Net Interest Income and Net Interest Margin 9 Table 7: Loan Information and Performance Statistics 10 Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity 12 Business Segment Results Table 9: Financial Summary—Business Segment Results 13 Table 10: Financial & Statistical Summary—Credit Card Business 14 Table 11: Financial & Statistical Summary—Consumer Banking Business 16 Table 12: Financial & Statistical Summary—Commercial Banking Business 17 Table 13: Financial & Statistical Summary—Other and Total 18 Other Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13) 19 Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures 20 __________ (1) The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended March 31, 2025 once it is filed with the Securities and Exchange Commission. (2) This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. ("GAAP"), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for a reconciliation of any non-GAAP financial measures. CAPITAL ONE FINANCIAL CORPORATION (COF) Table 1: Financial Summary—Consolidated 2025 Q1 (Dollars in millions, except per share data and as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Income Statement Net interest income $ 8,013 $ 8,098 $ 8,076 $ 7,546 $ 7,488 (1 )% 7 % Non-interest income 1,987 2,092 1,938 1,960 1,914 (5 ) 4 Total net revenue(1) 10,000 10,190 10,014 9,506 9,402 (2 ) 6 Provision for credit losses 2,369 2,642 2,482 3,909 2,683 (10 ) (12 ) Non-interest expense: Marketing 1,202 1,375 1,113 1,064 1,010 (13 ) 19 Operating expense 4,700 4,714 4,201 3,882 4,127 — 14 Total non-interest expense 5,902 6,089 5,314 4,946 5,137 (3 ) 15 Income from continuing operations before income taxes 1,729 1,459 2,218 651 1,582 19 9 Income tax provision 325 366 441 54 302 (11 ) 8 Income from continuing operations, net of tax 1,404 1,093 1,777 597 1,280 28 10 Income from discontinued operations, net of tax — 3 — — — ** — Net income 1,404 1,096 1,777 597 1,280 28 10 Dividends and undistributed earnings allocated to participating securities(2) (22 ) (17 ) (28 ) (9 ) (23 ) 29 (4 ) Preferred stock dividends (57 ) (57 ) (57 ) (57 ) (57 ) — — Net income available to common stockholders $ 1,325 $ 1,022 $ 1,692 $ 531 $ 1,200 30 10 Common Share Statistics Basic earnings per common share:(2) Net income from continuing operations $ 3.46 $ 2.66 $ 4.42 $ 1.39 $ 3.14 30 % 10 % Income from discontinued operations — 0.01 — — — ** — Net income per basic common share $ 3.46 $ 2.67 $ 4.42 $ 1.39 $ 3.14 30 10 Diluted earnings per common share:(2) Net income from continuing operations $ 3.45 $ 2.66 $ 4.41 $ 1.38 $ 3.13 30 % 10 % Income from discontinued operations — 0.01 — — — ** — Net income per diluted common share $ 3.45 $ 2.67 ... $ 4.41 $ 1.38 $ 3.13 29 10 Weighted-average common shares outstanding (in millions): Basic 383.1 382.4 383.0 383.1 382.2 — — Diluted 384.0 383.4 383.7 383.9 383.4 — — Common shares outstanding (period-end, in millions) 383.0 381.2 381.5 381.9 382.1 — — Dividends declared and paid per common share $ 0.60 $ 0.60 $ 0.60 $ 0.60 $ 0.60 — — Tangible book value per common share (period-end)(3) 113.74 106.97 112.36 99.28 98.67 6 % 15 % 2025 Q1 (Dollars in millions) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Balance Sheet (Period-End) Loans held for investment $ 323,598 $ 327,775 $ 320,243 $ 318,186 $ 315,154 (1 )% 3 % Interest-earning assets 463,414 463,058 458,189 452,547 453,557 — 2 Total assets 493,604 490,144 486,433 480,018 481,720 1 2 Interest-bearing deposits 340,964 336,585 327,253 324,437 323,352 1 5 Total deposits 367,464 362,707 353,631 351,442 350,969 1 5 Borrowings 41,773 45,551 49,336 47,956 50,361 (8 ) (17 ) Common equity 58,697 55,938 58,080 53,135 52,955 5 11 Total stockholders' equity 63,542 60,784 62,925 57,981 57,801 5 10 Balance Sheet (Average Balances) Loans held for investment $ 322,385 $ 321,871 $ 318,255 $ 314,888 $ 314,614 — 2 % Interest-earning assets 462,771 460,640 454,484 450,908 447,803 — 3 Total assets 491,817 488,300 481,219 477,285 474,995 1 % 4 Interest-bearing deposits 337,840 331,564 324,509 322,581 318,450 2 6 Total deposits 364,078 358,323 351,125 349,488 345,657 2 5 Borrowings 44,448 46,293 48,274 48,842 50,474 (4 ) (12 ) Common equity 57,395 56,918 56,443 53,262 53,152 1 8 Total stockholders' equity 62,240 61,764 61,289 58,107 57,998 1 7 CAPITAL ONE FINANCIAL CORPORATION (COF) Table 2: Selected Metrics—Consolidated 2025 Q1 (Dollars in millions, except as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Performance Metrics Net interest income growth (period over period) (1 )% — 7 % 1 % — ** ** Non-interest income growth (period over period) (5 ) 8 % (1 ) 2 (4 )% ** ** Total net revenue growth (period over period) (2 ) 2 5 1 (1 ) ** ** Total net revenue margin(4) 8.64 8.85 8.81 8.43 8.40 (21 ) bps 24 bps Net interest margin(5) 6.93 7.03 7.11 6.70 6.69 (10 ) 24 Return on average assets 1.14 0.90 1.48 0.50 1.08 24 6 Return on average tangible assets(6) 1.18 0.92 1.53 0.52 1.11 26 7 Return on average common equity(7) 9.23 7.16 11.99 3.99 9.03 207 20 Return on average tangible common equity(8) 12.55 9.77 16.42 5.59 12.67 278 (12 ) Efficiency ratio(9) 59.02 59.75 53.07 52.03 54.64 (73 ) 438 Operating efficiency ratio(10) 47.00 46.26 41.95 40.84 43.89 74 311 Effective income tax rate for continuing operations 18.8 25.1 19.9 8.3 19.1 (630 ) (30 ) Employees (period-end, in thousands) 53.9 52.6 52.5 52.1 51.3 2 % 5 % Credit Quality Metrics Allowance for credit losses $ 15,899 $ 16,258 $ 16,534 $ 16,649 $ 15,380 (2 )% 3 % Allowance coverage ratio 4.91 % 4.96 % 5.16 % 5.23 % 4.88 % (5 ) bps 3 bps Net charge-offs $ 2,736 $ 2,884 $ 2,604 $ 2,644 $ 2,616 (5 )% 5 % Net charge-off rate(11) 3.40 % 3.59 % 3.27 % 3.36 % 3.33 % (19 ) bps 7 bps 30+ day performing delinquency rate 3.29 3.69 3.58 3.36 3.40 (40 ) (11 ) 30+ day delinquency rate 3.51 3.98 3.89 3.63 3.67 (47 ) (16 ) Capital Ratios(12) Common equity Tier 1 capital 13.6 % 13.5 % 13.6 % 13.2 % 13.1 % 10 bps 50 bps Tier 1 capital 14.9 14.8 14.9 14.5 14.4 10 50 Total capital 17.0 16.4 16.6 16.3 16.2 60 80 Tier 1 leverage 11.6 11.6 11.6 11.3 11.3 — 30 Tangible common equity ("TCE")(13) 9.1 8.6 9.1 8.2 8.1 50 100 CAPITAL ONE FINANCIAL CORPORATION (COF) Table 3: Consolidated Statements of Income 2025 Q1 (Dollars in millions, except as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Interest income: Loans, including loans held for sale $ 10,157 $ 10,434 $ 10,547 $ 9,993 $ 9,920 (3 )% 2 % Investment securities 770 753 733 700 687 2 12 Other 491 530 580 587 570 (7 ) (14 ) Total interest income 11,418 11,717 11,860 11,280 11,177 (3 ) 2 Interest expense: Deposits 2,715 2,862 2,945 2,874 2,812 (5 ) (3 ) Securitized debt obligations 176 205 234 258 261 (14 ) (33 ) Senior and subordinated notes 505 540 596 591 606 (6 ) (17 ) Other borrowings 9 12 9 11 10 (25 ) (10 ) Total interest expense 3,405 3,619 3,784 3,734 3,689 (6 ) (8 ) Net interest income 8,013 8,098 8,076 7,546 7,488 (1 ) 7 Provision for credit losses 2,369 2,642 2,482 3,909 2,683 (10 ) (12 ) Net interest income after provision for credit losses 5,644 5,456 5,594 3,637 4,805 3 17 Non-interest income: Interchange fees, net 1,223 1,260 1,228 1,249 1,145 (3 ) 7 Service charges and other customer-related fees 509 554 501 459 462 (8 ) 10 Net securities gains (losses) — — (35 ) — — — — Other 255 278 244 252 307 (8 ) (17 ) Total non-interest income 1,987 2,092 1,938 1,960 1,914 (5 ) 4 Non-interest expense: Salaries and associate benefits 2,546 2,329 2,391 2,200 2,478 9 3 Occupancy and equipment 615 674 587 551 554 (9 ) 11 Marketing 1,202 1,375 1,113 1,064 1,010 (13 ) 19 Professional services 437 630 402 316 262 (31 ) 67 Communications and data processing 399 398 358 355 351 — 14 Amortization of intangibles 16 19 20 19 19 (16 ) (16 ) Other 687 664 443 441 463 3 48 Total non-interest expense 5,902 6,089 5,314 4,946 5,137 (3 ) 15 Income from continuing operations before income taxes 1,729 1,459 2,218 651 1,582 19 9 Income tax provision 325 366 441 54 302 (11 ) 8 Income from continuing operations, net of tax 1,404 1,093 1,777 597 1,280 28 10 Income from discontinued operations, net of tax — 3 — — — ** — Net income 1,404 1,096 1,777 597 1,280 28 10 Dividends and undistributed earnings allocated to participating securities(2) (22 ) (17 ) (28 ) (9 ) (23 ) 29 (4 ) Preferred stock dividends (57 ) (57 ) (57 ) (57 ) (57 ) — — Net income available to common stockholders $ 1,325 $ 1,022 $ 1,692 $ 531 $ 1,200 30 10 2025 Q1 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Basic earnings per common share:(2) Net income from continuing operations $ 3.46 $ 2.66 $ 4.42 $ 1.39 $ 3.14 30 % 10 % Income from discontinued operations — 0.01 — — — ** — Net income per basic common share $ 3.46 $ 2.67 $ 4.42 $ 1.39 $ 3.14 30 10 Diluted earnings per common share:(2) Net income from continuing operations $ 3.45 $ 2.66 $ 4.41 $ 1.38 $ 3.13 30 % 10 % Income from discontinued operations — 0.01 — — — ** — Net income per diluted common share $ 3.45 $ 2.67 $ 4.41 $ 1.38 $ 3.13 29 10 Weighted-average common shares outstanding (in millions): Basic common shares 383.1 382.4 383.0 383.1 382.2 — — Diluted common shares 384.0 383.4 383.7 383.9 383.4 — — CAPITAL ONE FINANCIAL CORPORATION (COF) Table 4: Consolidated Balance Sheets 2025 Q1 (Dollars in millions) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Assets: Cash and cash equivalents: Cash and due from banks $ 4,108 $ 3,028 $ 3,976 $ 5,298 $ 4,671 36 % (12 )% Interest-bearing deposits and other short-term investments 44,465 40,202 45,322 40,116 46,357 11 (4 ) Total cash and cash equivalents 48,573 43,230 49,298 45,414 51,028 12 (5 ) Restricted cash for securitization investors 392 441 421 2,415 474 (11 ) (17 ) Securities available for sale 84,362 83,013 83,500 79,250 78,398 2 8 Loans held for investment: Unsecuritized loans held for investment 295,939 298,241 292,061 289,124 285,577 (1 ) 4 Loans held in consolidated trusts 27,659 29,534 28,182 29,062 29,577 (6 ) (6 ) Total loans held for investment 323,598 327,775 320,243 318,186 315,154 (1 ) 3 Allowance for credit losses (15,899 ) (16,258 ) (16,534 ) (16,649 ) (15,380 ) (2 ) 3 Net loans held for investment 307,699 311,517 303,709 301,537 299,774 (1 ) 3 Loans held for sale 686 202 96 808 1,631 ** (58 ) Premises and equipment, net 4,579 4,511 4,440 4,396 4,366 2 5 Interest receivable 2,599 2,532 2,577 2,494 2,514 3 3 Goodwill 15,070 15,059 15,083 15,062 15,062 — — Other assets 29,644 29,639 27,309 28,642 28,473 — 4 Total assets $ 493,604 $ 490,144 $ 486,433 $ 480,018 $ 481,720 1 2 2025 Q1 (Dollars in millions) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Liabilities: Interest payable $ 646 $ 666 $ 705 $ 668 $ 762 (3 )% (15 )% Deposits: Non-interest-bearing deposits 26,500 26,122 26,378 27,005 27,617 1 (4 ) Interest-bearing deposits 340,964 336,585 327,253 324,437 323,352 1 5 Total deposits 367,464 362,707 353,631 351,442 350,969 1 5 Securitized debt obligations 11,716 14,264 15,881 17,291 17,661 (18 ) (34 ) Other debt: Federal funds purchased and securities loaned or sold under agreements to repurchase 573 562 520 715 568 2 1 Senior and subordinated notes 29,459 30,696 32,911 29,925 32,108 (4 ) (8 ) Other borrowings 25 29 24 25 24 (14 ) 4 Total other debt 30,057 31,287 33,455 30,665 32,700 (4 ) (8 ) Other liabilities 20,179 20,436 19,836 21,971 21,827 (1 ) (8 ) Total liabilities 430,062 429,360 423,508 422,037 423,919 — 1 Stockholders' equity: Preferred stock 0 0 0 0 0 — — Common stock 7 7 7 7 7 — — Additional paid-in capital, net 36,693 36,428 36,216 36,012 35,808 1 2 Retained earnings 65,616 64,505 63,698 62,211 61,905 2 6 Accumulated other comprehensive loss (7,529 ) (9,286 ) (6,287 ) (9,701 ) (9,534 ) (19 ) (21 ) Treasury stock, at cost (31,245 ) (30,870 ) (30,709 ) (30,548 ) (30,385 ) 1 3 Total stockholders' equity 63,542 60,784 62,925 57,981 57,801 5 10 Total liabilities and stockholders' equity $ 493,604 $ 490,144 $ 486,433 $ 480,018 $ 481,720 1 2 CAPITAL ONE FINANCIAL CORPORATION (COF) Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4) (1) Total net revenue was reduced by $705 million in Q1 2025, $706 million in Q4 2024, $624 million in Q3 2024, $649 million in Q2 2024 and $630 million in Q1 2024 for credit card finance charges and fees charged-off as uncollectible. (2) Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures. (3) Tangible book value per common share is a non-GAAP measure calculated based on TCE divided by common shares outstanding. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures. (4) Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period. (5) Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period. (6) Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures. (7) Return on average common equity is calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies. (8) Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average TCE. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures. (9) Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures. (10) Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures. (11) Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period. (12) Capital ratios as of the end of Q1 2025 are preliminary and therefore subject to change. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for information on the calculation of each of these ratios. (13) TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures. ** Not meaningful. CAPITAL ONE FINANCIAL CORPORATION (COF) Table 6: Average Balances, Net Interest Income and Net Interest Margin 2025 Q1 2024 Q4 2024 Q1 (Dollars in millions, except as noted) AverageBalance InterestIncome/Expense Yield/Rate(1) AverageBalance InterestIncome/Expense Yield/Rate(1) AverageBalance InterestIncome/Expense Yield/Rate(1) Interest-earning assets: Loans, including loans held for sale $ 322,772 $ 10,157 12.59 % $ 322,231 $ 10,434 12.95 % $ 315,563 $ 9,920 12.57 % Investment securities 92,659 770 3.32 92,248 753 3.26 88,581 687 3.10 Cash equivalents and other 47,340 491 4.14 46,161 530 4.59 43,659 570 5.21 Total interest-earning assets $ 462,771 $ 11,418 9.87 $ 460,640 $ 11,717 10.17 $ 447,803 $ 11,177 9.98 Interest-bearing liabilities: Interest-bearing deposits $ 337,840 $ 2,715 3.22 $ 331,564 $ 2,862 3.45 $ 318,450 $ 2,812 3.53 Securitized debt obligations 13,731 176 5.11 14,931 205 5.47 17,836 261 5.85 Senior and subordinated notes 30,331 505 6.66 30,888 540 7.00 32,211 606 7.52 Other borrowings and liabilities(2) 2,312 9 1.57 2,434 12 1.85 2,373 10 1.78 Total interest-bearing liabilities $ 384,214 $ 3,405 3.54 $ 379,817 $ 3,619 3.81 $ 370,870 $ 3,689 3.98 Net interest income/spread $ 8,013 6.32 $ 8,098 6.36 $ 7,488 6.00 Impact of non-interest-bearing funding 0.61 0.67 0.69 Net interest margin(3) 6.93 % 7.03 % 6.69 % CAPITAL ONE FINANCIAL CORPORATION (COF) Table 7: Loan Information and Performance Statistics 2025 Q1 (Dollars in millions, except as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Loans Held for Investment (Period-End) Credit card: Domestic credit card $ 150,309 $ 155,618 $ 149,400 $ 147,065 $ 143,861 (3 )% 4 % International card businesses 6,880 6,890 7,251 6,830 6,733 — 2 Total credit card 157,189 162,508 156,651 153,895 150,594 (3 ) 4 Consumer banking: Auto 77,656 76,829 75,505 74,385 73,801 1 5 Retail banking 1,240 1,263 1,253 1,278 1,298 (2 ) (4 ) Total consumer banking 78,896 78,092 76,758 75,663 75,099 1 5 Commercial banking: Commercial and multifamily real estate 31,971 31,903 32,199 32,832 34,272 — (7 ) Commercial and industrial 55,542 55,272 54,635 55,796 55,189 — 1 Total commercial banking 87,513 87,175 86,834 88,628 89,461 — (2 ) Total loans held for investment $ 323,598 $ 327,775 $ 320,243 $ 318,186 $ 315,154 (1 ) 3 Loans Held for Investment (Average) Credit card: Domestic credit card $ 149,639 $ 150,290 $ 147,021 $ 143,744 $ 142,887 — 5 % International card businesses 6,768 7,036 6,951 6,723 6,758 (4 )% — Total credit card 156,407 157,326 153,972 150,467 149,645 (1 ) 5 Consumer banking: Auto 77,228 75,968 74,920 74,098 73,768 2 5 Retail banking 1,252 1,253 1,262 1,288 1,324 — (5 ) Total consumer banking 78,480 77,221 76,182 75,386 75,092 2 5 Commercial banking: Commercial and multifamily real estate 31,733 32,058 32,416 33,801 34,310 (1 ) (8 ) Commercial and industrial 55,765 55,266 55,685 55,234 55,567 1 — Total commercial banking 87,498 87,324 88,101 89,035 89,877 — (3 ) Total average loans held for investment $ 322,385 $ 321,871 $ 318,255 $ 314,888 $ 314,614 — 2 2025 Q1 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Net Charge-Off (Recovery) Rates Credit card: Domestic credit card(4) 6.19 % 6.06 % 5.61 % 6.05 % 5.94 % 13 bps 25 bps International card businesses 5.02 5.17 5.23 5.03 5.16 (15 ) (14 ) Total credit card 6.14 6.02 5.60 6.00 5.90 12 24 Consumer banking: Auto 1.55 2.32 2.05 1.81 1.99 (77 ) (44 ) Retail banking 4.75 5.63 5.43 5.38 4.04 (88 ) 71 Total consumer banking 1.60 2.38 2.11 1.87 2.03 (78 ) (43 ) Commercial banking: Commercial and multifamily real estate 0.09 0.50 0.26 0.11 0.20 (41 ) (11 ) Commercial and industrial 0.12 0.13 0.20 0.17 0.08 (1 ) 4 Total commercial banking 0.11 0.26 0.22 0.15 0.13 (15 ) (2 ) Total net charge-offs 3.40 3.59 3.27 3.36 3.33 (19 ) 7 30+ Day Performing Delinquency Rates Credit card: Domestic credit card 4.25 % 4.53 % 4.53 % 4.14 % 4.48 % (28 ) bps (23 ) bps International card businesses 4.56 4.52 4.53 4.63 4.83 4 (27 ) Total credit card 4.26 4.53 4.53 4.16 4.50 (27 ) (24 ) Consumer banking: Auto 4.93 5.95 5.61 5.67 5.28 (102 ) (35 ) Retail banking 1.13 1.12 0.95 1.57 0.95 1 18 Total consumer banking 4.87 5.87 5.53 5.60 5.21 (100 ) (34 ) Nonperforming Loans and Nonperforming Assets Rates(5)(6) Credit card: International card businesses 0.13 % 0.15 % 0.15 % 0.15 % 0.13 % (2 ) bps — Total credit card 0.01 0.01 0.01 0.01 0.01 — — Consumer banking: Auto 0.72 0.98 0.91 0.88 0.79 (26 ) (7 ) bps Retail banking 1.89 1.94 2.19 2.81 3.21 (5 ) (132 ) Total consumer banking 0.74 0.99 0.93 0.92 0.83 (25 ) (9 ) Commercial banking: Commercial and multifamily real estate 1.23 1.60 1.96 1.28 1.58 (37 ) (35 ) Commercial and industrial 1.50 1.27 1.32 1.56 1.10 23 40 Total commercial banking 1.40 1.39 1.55 1.46 1.28 1 12 Total nonperforming loans 0.56 0.61 0.65 0.63 0.57 (5 ) (1 ) Total nonperforming assets 0.58 0.63 0.67 0.64 0.58 (5 ) — CAPITAL ONE FINANCIAL CORPORATION (COF) Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity Three Months Ended March 31, 2025 Credit Card Consumer Banking (Dollars in millions) DomesticCard InternationalCardBusinesses Total CreditCard Auto RetailBanking TotalConsumerBanking CommercialBanking Total Allowance for credit losses: Balance as of December 31, 2024 $ 12,494 $ 480 $ 12,974 $ 1,859 $ 25 $ 1,884 $ 1,400 $ 16,258 Charge-offs (2,852 ) (126 ) (2,978 ) (656 ) (20 ) (676 ) (38 ) (3,692 ) Recoveries 538 41 579 357 6 363 14 956 Net charge-offs (2,314 ) (85 ) (2,399 ) (299 ) (14 ) (313 ) (24 ) (2,736 ) Provision for credit losses 1,856 70 1,926 285 16 301 141 2,368 Allowance build (release) for credit losses (458 ) (15 ) (473 ) (14 ) 2 (12 ) 117 (368 ) Other changes(7) — 9 9 — — — — 9 Balance as of March 31, 2025 12,036 474 12,510 1,845 27 1,872 1,517 15,899 Reserve for unfunded lending commitments: Balance as of December 31, 2024 — — — — — — 143 143 Provision for losses on unfunded lending commitments — — — — — — 1 1 Balance as of March 31, 2025 — — — — — — 144 144 Combined allowance and reserve as of March 31, 2025 $ 12,036 $ 474 $ 12,510 $ 1,845 $ 27 $ 1,872 $ 1,661 $ 16,043 CAPITAL ONE FINANCIAL CORPORATION (COF) Table 9: Financial Summary—Business Segment Results Three Months Ended March 31, 2025 (Dollars in millions) Credit Card ConsumerBanking CommercialBanking(8) Other(8) Total Net interest income (loss) $ 5,654 $ 1,943 $ 572 $ (156 ) $ 8,013 Non-interest income (loss) 1,511 183 312 (19 ) 1,987 Total net revenue (loss) 7,165 2,126 884 (175 ) 10,000 Provision (benefit) for credit losses 1,926 301 142 — 2,369 Non-interest expense 3,638 1,581 486 197 5,902 Income (loss) from continuing operations before income taxes 1,601 244 256 (372 ) 1,729 Income tax provision (benefit) 382 58 61 (176 ) 325 Income (loss) from continuing operations, net of tax $ 1,219 $ 186 $ 195 $ (196 ) $ 1,404 Three Months Ended December 31, 2024 (Dollars in millions) Credit Card ConsumerBanking CommercialBanking(8) Other(8) Total Net interest income (loss) $ 5,779 $ 1,959 $ 587 $ (227 ) $ 8,098 Non-interest income (loss) 1,585 182 366 (41 ) 2,092 Total net revenue (loss) 7,364 2,141 953 (268 ) 10,190 Provision (benefit) for credit losses 2,384 328 (72 ) 2 2,642 Non-interest expense 3,846 1,545 518 180 6,089 Income (loss) from continuing operations before income taxes 1,134 268 507 (450 ) 1,459 Income tax provision (benefit) 268 63 119 (84 ) 366 Income (loss) from continuing operations, net of tax $ 866 $ 205 $ 388 $ (366 ) $ 1,093 Three Months Ended March 31, 2024 (Dollars in millions) Credit Card ConsumerBanking CommercialBanking(8) Other(8) Total Net interest income (loss) $ 5,272 $ 2,011 $ 599 $ (394 ) $ 7,488 Non-interest income (loss) 1,476 159 281 (2 ) 1,914 Total net revenue (loss) 6,748 2,170 880 (396 ) 9,402 Provision (benefit) for credit losses 2,259 426 (2 ) — 2,683 Non-interest expense 3,229 1,246 515 147 5,137 Income (loss) from continuing operations before income taxes 1,260 498 367 (543 ) 1,582 Income tax provision (benefit) 299 117 87 (201 ) 302 Income (loss) from continuing operations, net of tax $ 961 $ 381 $ 280 $ (342 ) $ 1,280 CAPITAL ONE FINANCIAL CORPORATION (COF) Table 10: Financial & Statistical Summary—Credit Card Business 2025 Q1 vs. (Dollars in millions, except as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Credit Card Earnings: Net interest income $ 5,654 $ 5,779 $ 5,743 $ 5,294 $ 5,272 (2 )% 7 % Non-interest income 1,511 1,585 1,509 1,506 1,476 (5 ) 2 Total net revenue 7,165 7,364 7,252 6,800 6,748 (3 ) 6 Provision for credit losses 1,926 2,384 2,084 3,545 2,259 (19 ) (15 ) Non-interest expense 3,638 3,846 3,367 3,134 3,229 (5 ) 13 Income from continuing operations before income taxes 1,601 1,134 1,801 121 1,260 41 27 Income tax provision 382 268 427 30 299 43 28 Income from continuing operations, net of tax $ 1,219 $ 866 $ 1,374 $ 91 $ 961 41 27 Selected performance metrics: Period-end loans held for investment $ 157,189 $ 162,508 $ 156,651 $ 153,895 $ 150,594 (3 ) 4 Average loans held for investment 156,407 157,326 153,972 150,467 149,645 (1 ) 5 Average yield on loans outstanding(1) 18.54 % 19.05 % 19.66 % 18.79 % 18.84 % (51 ) bps (30 ) bps Total net revenue margin(9) 18.32 18.72 18.82 18.03 17.99 (40 ) 33 Net charge-off rate 6.14 6.02 5.60 6.00 5.90 12 24 30+ day performing delinquency rate 4.26 4.53 4.53 4.16 4.50 (27 ) (24 ) 30+ day delinquency rate 4.27 4.54 4.54 4.17 4.50 (27 ) (23 ) Nonperforming loan rate(5) 0.01 0.01 0.01 0.01 0.01 — — Purchase volume(10) $ 157,948 $ 172,919 $ 166,203 $ 165,143 $ 150,171 (9 )% 5 % 2025 Q1 vs. (Dollars in millions, except as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Domestic Card Earnings: Net interest income $ 5,343 $ 5,474 $ 5,434 $ 5,001 $ 4,972 (2 )% 7 % Non-interest income 1,460 1,522 1,438 1,440 1,411 (4 ) 3 Total net revenue 6,803 6,996 6,872 6,441 6,383 (3 ) 7 Provision for credit losses 1,856 2,278 1,997 3,435 2,157 (19 ) (14 ) Non-interest expense 3,422 3,607 3,149 2,946 3,025 (5 ) 13 Income from continuing operations before income taxes 1,525 1,111 1,726 60 1,201 37 27 Income tax provision 363 262 407 15 283 39 28 Income from continuing operations, net of tax $ 1,162 $ 849 $ 1,319 $ 45 $ 918 37 27 Selected performance metrics: Period-end loans held for investment $ 150,309 $ 155,618 $ 149,400 $ 147,065 $ 143,861 (3 ) 4 Average loans held for investment 149,639 150,290 147,021 143,744 142,887 — 5 Average yield on loans outstanding(1) 18.42 % 19.00 % 19.62 % 18.73 % 18.76 % (58 ) bps (34 ) bps Total net revenue margin(9)(11) 18.19 18.62 18.67 17.87 17.82 (43 ) 37 Net charge-off rate(4) 6.19 6.06 5.61 6.05 5.94 13 25 30+ day performing delinquency rate 4.25 4.53 4.53 4.14 4.48 (28 ) (23 ) Purchase volume(10) $ 154,391 $ 168,994 $ 162,281 $ 161,370 $ 146,696 (9 )% 5 % Refreshed FICO scores:(12) Greater than 660 69 % 69 % 69 % 69 % 68 % — 1 660 or below 31 31 31 31 32 — (1 ) Total 100 % 100 % 100 % 100 % 100 % CAPITAL ONE FINANCIAL CORPORATION (COF) Table 11: Financial & Statistical Summary—Consumer Banking Business 2025 Q1 vs. (Dollars in millions, except as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Consumer Banking Earnings: Net interest income $ 1,943 $ 1,959 $ 2,028 $ 2,025 $ 2,011 (1 )% (3 )% Non-interest income 183 182 182 172 159 1 15 Total net revenue 2,126 2,141 2,210 2,197 2,170 (1 ) (2 ) Provision for credit losses 301 328 351 330 426 (8 ) (29 ) Non-interest expense 1,581 1,545 1,331 1,250 1,246 2 27 Income from continuing operations before income taxes 244 268 528 617 498 (9 ) (51 ) Income tax provision 58 63 125 146 117 (8 ) (50 ) Income from continuing operations, net of tax $ 186 $ 205 $ 403 $ 471 $ 381 (9 ) (51 ) Selected performance metrics: Period-end loans held for investment $ 78,896 $ 78,092 $ 76,758 $ 75,663 $ 75,099 1 5 Average loans held for investment 78,480 77,221 76,182 75,386 75,092 2 5 Average yield on loans held for investment(1) 9.03 % 9.04 % 8.88 % 8.54 % 8.33 % (1 ) bps 70 bps Auto loan originations $ 9,210 $ 9,399 $ 9,158 $ 8,463 $ 7,522 (2 )% 22 % Period-end deposits 324,920 318,329 309,569 305,422 300,806 2 8 Average deposits 319,950 313,992 306,121 300,794 294,448 2 9 Average deposits interest rate 3.00 % 3.21 % 3.33 % 3.22 % 3.15 % (21 ) bps (15 ) bps Net charge-off rate 1.60 2.38 2.11 1.87 2.03 (78 ) (43 ) 30+ day performing delinquency rate 4.87 5.87 5.53 5.60 5.21 (100 ) (34 ) 30+ day delinquency rate 5.47 6.73 6.31 6.35 5.86 (126 ) (39 ) Nonperforming loan rate(5) 0.74 0.99 0.93 0.92 0.83 (25 ) (9 ) Nonperforming asset rate(6) 0.82 1.08 1.01 0.99 0.91 (26 ) (9 ) Auto—At origination FICO scores:(13) Greater than 660 53 % 54 % 53 % 53 % 53 % (1 )% — 621 - 660 19 19 20 20 20 — (1 )% 620 or below 28 27 27 27 27 1 1 Total 100 % 100 % 100 % 100 % 100 % CAPITAL ONE FINANCIAL CORPORATION (COF) Table 12: Financial & Statistical Summary—Commercial Banking Business 2025 Q1 vs. (Dollars in millions, except as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Commercial Banking Earnings: Net interest income $ 572 $ 587 $ 596 $ 609 $ 599 (3 )% (5 )% Non-interest income 312 366 292 271 281 (15 ) 11 Total net revenue(8) 884 953 888 880 880 (7 ) — Provision (benefit) for credit losses 142 (72 ) 48 34 (2 ) ** ** Non-interest expense 486 518 495 483 515 (6 ) (6 ) Income from continuing operations before income taxes 256 507 345 363 367 (50 ) (30 ) Income tax provision 61 119 82 85 87 (49 ) (30 ) Income from continuing operations, net of tax $ 195 $ 388 $ 263 $ 278 $ 280 (50 ) (30 ) Selected performance metrics: Period-end loans held for investment $ 87,513 $ 87,175 $ 86,834 $ 88,628 $ 89,461 — (2 ) Average loans held for investment 87,498 87,324 88,101 89,035 89,877 — (3 ) Average yield on loans held for investment(1)(8) 6.29 % 6.72 % 7.25 % 7.23 % 7.14 % (43 ) bps (85 ) bps Period-end deposits $ 29,984 $ 31,691 $ 30,598 $ 29,210 $ 31,082 (5 )% (4 )% Average deposits 31,654 31,545 30,365 30,810 31,844 — (1 ) Average deposits interest rate 2.13 % 2.28 % 2.55 % 2.55 % 2.65 % (15 ) bps (52 ) bps Net charge-off rate 0.11 0.26 0.22 0.15 0.13 (15 ) (2 ) Nonperforming loan rate(5) 1.40 1.39 1.55 1.46 1.28 1 12 Nonperforming asset rate(6) 1.40 1.39 1.55 1.46 1.28 1 12 Risk category:(14) Noncriticized $ 80,677 $ 80,431 $ 78,835 $ 79,695 $ 80,804 — — Criticized performing 5,612 5,534 6,651 7,639 7,509 1 % (25 )% Criticized nonperforming 1,224 1,210 1,348 1,294 1,148 1 7 Total commercial banking loans held for investment $ 87,513 $ 87,175 $ 86,834 $ 88,628 $ 89,461 — (2 ) Risk category as a percentage of period-end loans held for investment:(14) Noncriticized 92.19 % 92.26 % 90.79 % 89.92 % 90.33 % (7 ) bps 186 bps Criticized performing 6.41 6.35 7.66 8.62 8.39 6 (198 ) Criticized nonperforming 1.40 1.39 1.55 1.46 1.28 1 12 Total commercial banking loans 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % CAPITAL ONE FINANCIAL CORPORATION (COF) Table 13: Financial & Statistical Summary—Other and Total 2025 Q1 vs. (Dollars in millions) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Other Earnings: Net interest loss $ (156 ) $ (227 ) $ (291 ) $ (382 ) $ (394 ) (31 )% (60 )% Non-interest income (loss) (19 ) (41 ) (45 ) 11 (2 ) (54 ) ** Total net loss(8) (175 ) (268 ) (336 ) (371 ) (396 ) (35 ) (56 ) Provision (benefit) for credit losses — 2 (1 ) — — ** — Non-interest expense(15)(16) 197 180 121 79 147 9 34 Loss from continuing operations before income taxes (372 ) (450 ) (456 ) (450 ) (543 ) (17 ) (31 ) Income tax benefit (176 ) (84 ) (193 ) (207 ) (201 ) 110 (12 ) Loss from continuing operations, net of tax $ (196 ) $ (366 ) $ (263 ) $ (243 ) $ (342 ) (46 ) (43 ) Selected performance metrics: Period-end deposits $ 12,560 $ 12,687 $ 13,464 $ 16,810 $ 19,081 (1 ) (34 ) Average deposits 12,474 12,786 14,639 17,884 19,365 (2 ) (36 ) Total Earnings: Net interest income $ 8,013 $ 8,098 $ 8,076 $ 7,546 $ 7,488 (1 )% 7 % Non-interest income 1,987 2,092 1,938 1,960 1,914 (5 ) 4 Total net revenue 10,000 10,190 10,014 9,506 9,402 (2 ) 6 Provision for credit losses 2,369 2,642 2,482 3,909 2,683 (10 ) (12 ) Non-interest expense 5,902 6,089 5,314 4,946 5,137 (3 ) 15 Income from continuing operations before income taxes 1,729 1,459 2,218 651 1,582 19 9 Income tax provision 325 366 441 54 302 (11 ) 8 Income from continuing operations, net of tax $ 1,404 $ 1,093 $ 1,777 $ 597 $ 1,280 28 10 Selected performance metrics: Period-end loans held for investment $ 323,598 $ 327,775 $ 320,243 $ 318,186 $ 315,154 (1 ) 3 Average loans held for investment 322,385 321,871 318,255 314,888 314,614 — 2 Period-end deposits 367,464 362,707 353,631 351,442 350,969 1 5 Average deposits 364,078 358,323 351,125 349,488 345,657 2 5 CAPITAL ONE FINANCIAL CORPORATION (COF) Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13) (1) Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing. Average yield is calculated using whole dollar values for average balances and interest income/expense. Accordingly, total interest earning assets less total interest bearing liabilities may not total net interest income/spread. (2) Includes amounts related to entities that provide capital to low-income and rural communities of $1.9 billion in Q1 2025, $2.0 billion in Q4 2024 and $1.9 billion in Q1 2024. Related interest expense was $7 million in Q1 2025, $8 million in Q4 2024 and $8 million in Q1 2024. (3) The termination of our Walmart program agreement, effective May 21, 2024, ("Walmart Program Termination") increased net interest margin by 20 basis points and 21 basis points in the first quarter of 2025 and fourth quarter of 2024, respectively. Excluding this impact, the net interest margin would have been 6.73% and 6.82% in the first quarter of 2025 and fourth quarter of 2024, respectively. (4) The Walmart Program Termination increased the Domestic Card net charge-off rate by 42 basis points, 40 basis points, 38 basis points and 19 basis points for Q1 2025, Q4 2024, Q3 2024 and Q2 2024, respectively. Excluding this impact, the Domestic Card net charge-off rate would have been 5.77%, 5.66%, 5.23% and 5.86% for Q1 2025, Q4 2024, Q3 2024 and Q2 2024, respectively. (5) Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category. For Commercial Banking, loans categorized as nonperforming are considered criticized nonperforming. (6) Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets. (7) Primarily represents foreign currency translation adjustments. (8) Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category. (9) Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period. (10) Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions. (11) The Walmart Program Termination increased Domestic Card net revenue margin by 52 basis points in Q1 2025, 55 basis points in Q4 2024, 51 basis points in Q3 2024 and 10 basis points in Q2 2024, respectively. Excluding this impact, the Domestic Card net revenue margin would have been 17.67% in Q1 2025, 18.07% in Q4 2024, 18.16% in Q3 2024 and 17.77% in Q2 2024. (12) Percentages represent period-end loans held for investment in each credit score category. Domestic Card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category. (13) Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category. (14) Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities. (15) Includes the impact of ($9 million), $8 million and $42 million FDIC special assessment in Q3 2024, Q2 2024 and Q1 2024, respectively. (16) Includes the impact of $110 million, $140 million, $63 million and $31 million in Discover integration expenses in Q1 2025, Q4 2024, Q3 2024 and Q2 2024, respectively, as well as any charges incurred as a result of restructuring activities for the periods presented. ** Not meaningful. CAPITAL ONE FINANCIAL CORPORATION (COF) Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1) Basel III Standardized Approach (Dollars in millions, except as noted) March 31,2025 December 31,2024 September 30,2024 June 30,2024 March 31,2024 Regulatory Capital Metrics Common equity excluding AOCI $ 66,225 $ 65,823 $ 64,966 $ 63,435 $ 63,088 Adjustments: AOCI, net of tax(2) 19 1 58 13 14 Goodwill, net of related deferred tax liabilities (14,792 ) (14,786 ) (14,816 ) (14,800 ) (14,804 ) Other Intangible and deferred tax assets, net of deferred tax liabilities (247 ) (231 ) (252 ) (271 ) (291 ) Common equity Tier 1 capital $ 51,205 $ 50,807 $ 49,956 $ 48,377 $ 48,007 Tier 1 capital $ 56,050 $ 55,652 $ 54,801 $ 53,222 $ 52,852 Total capital(3) 63,930 61,805 61,151 59,875 59,484 Risk-weighted assets 375,874 377,145 368,199 366,959 366,161 Adjusted average assets(4) 483,888 480,794 473,146 470,915 468,030 Capital Ratios Common equity Tier 1 capital(5) 13.6 % 13.5 % 13.6 % 13.2 % 13.1 % Tier 1 capital(6) 14.9 14.8 14.9 14.5 14.4 Total capital(7) 17.0 16.4 16.6 16.3 16.2 Tier 1 leverage(4) 11.6 11.6 11.6 11.3 11.3 TCE(8) 9.1 8.6 9.1 8.2 8.1 Reconciliation of Non-GAAP Measures The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results, however, they may not be comparable to similarly-titled measures reported by other companies. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP. (Dollars in millions, except per share data and as noted) 2025 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Adjusted diluted earnings per share ("EPS"): Net income available to common stockholders (GAAP) $ 1,325 $ 1,022 $ 1,692 $ 531 $ 1,200 Allowance build for Walmart program agreement loss sharing termination — — — 826 — Walmart program agreement termination contra revenue impact — — — 27 — Legal reserve activities 198 75 — — — Discover integration expenses 110 140 63 31 — FDIC special assessment — — (9 ) 8 42 Adjusted net income available to common stockholders before income tax impacts (non-GAAP) 1,633 1,237 1,746 1,423 1,242 Income tax impacts (76 ) (52 ) (13 ) (218 ) (10 ) Adjusted net income available to common stockholders (non-GAAP) $ 1,557 $ 1,185 $ 1,733 $ 1,205 $ 1,232 Diluted weighted-average common shares outstanding (in millions) (GAAP) 384.0 383.4 383.7 383.9 383.4 Diluted EPS (GAAP) $ 3.45 $ 2.67 $ 4.41 $ 1.38 $ 3.13 Impact of adjustments noted above 0.61 0.42 0.10 1.76 0.08 Adjusted diluted EPS (non-GAAP) $ 4.06 $ 3.09 $ 4.51 $ 3.14 $ 3.21 Adjusted efficiency ratio: Non-interest expense (GAAP) $ 5,902 $ 6,089 $ 5,314 $ 4,946 $ 5,137 Legal reserve activities (198 ) (75 ) — — — Discover integration expenses (110 ) (140 ) (63 ) (31 ) — FDIC special assessment — — 9 (8 ) (42 ) Adjusted non-interest expense (non-GAAP) $ 5,594 $ 5,874 $ 5,260 $ 4,907 $ 5,095 Total net revenue (GAAP) $ 10,000 $ 10,190 $ 10,014 $ 9,506 $ 9,402 Walmart program agreement termination contra revenue impact — — — 27 — Adjusted net revenue (non-GAAP) $ 10,000 $ 10,190 $ 10,014 $ 9,533 $ 9,402 Efficiency ratio (GAAP) 59.02 % 59.75 % 53.07 % 52.03 % 54.64 % Impact of adjustments noted above (308) bps (211) bps (54) bps (56) bps (45) bps Adjusted efficiency ratio (non-GAAP) 55.94 % 57.64 % 52.53 % 51.47 % 54.19 % Adjusted operating efficiency ratio: Operating expense (GAAP) $ 4,700 $ 4,714 $ 4,201 $ 3,882 $ 4,127 Legal reserve activities (198 ) (75 ) — — — Discover integration expenses (110 ) (140 ) (63 ) (31 ) — FDIC special assessment — — 9 (8 ) (42 ) Adjusted operating expense (non-GAAP) $ 4,392 $ 4,499 $ 4,147 $ 3,843 $ 4,085 Total net revenue (GAAP) $ 10,000 $ 10,190 $ 10,014 $ 9,506 $ 9,402 Walmart program agreement termination contra revenue impact — — — 27 — Adjusted net revenue (non-GAAP) $ 10,000 $ 10,190 $ 10,014 $ 9,533 $ 9,402 Operating efficiency ratio (GAAP) 47.00 % 46.26 % 41.95 % 40.84 % 43.89 % Impact of adjustments noted above (308) bps (211) bps (54) bps (53) bps (44) bps Adjusted operating efficiency ratio (non-GAAP) 43.92 % 44.15 % 41.41 % 40.31 % 43.45 % Reconciliation of Non-GAAP Measures The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following table presents reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP. (Dollars in millions) 2025 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Pre- Provision Earnings Total net revenue $ 10,000 $ 10,190 $ 10,014 $ 9,506 $ 9,402 Non-interest expense (5,902 ) (6,089 ) (5,314 ) (4,946 ) (5,137 ) Pre-provision earnings(9) $ 4,098 $ 4,101 $ 4,700 $ 4,560 $ 4,265 Tangible Common Equity (Period-End) Stockholders' equity $ 63,542 $ 60,784 $ 62,925 $ 57,981 $ 57,801 Goodwill and other intangible assets(10) (15,139 ) (15,157 ) (15,214 ) (15,226 ) (15,257 ) Noncumulative perpetual preferred stock (4,845 ) (4,845 ) (4,845 ) (4,845 ) (4,845 ) Tangible common equity(11) $ 43,558 $ 40,782 $ 42,866 $ 37,910 $ 37,699 Tangible Common Equity (Average) Stockholders' equity $ 62,240 $ 61,764 $ 61,289 $ 58,107 $ 57,998 Goodwill and other intangible assets(10) (15,149 ) (15,195 ) (15,225 ) (15,249 ) (15,280 ) Noncumulative perpetual preferred stock (4,845 ) (4,845 ) (4,845 ) (4,845 ) (4,845 ) Tangible common equity(11) $ 42,246 $ 41,724 $ 41,219 $ 38,013 $ 37,873 Return on Tangible Common Equity (Average) Net income available to common stockholders $ 1,325 $ 1,022 $ 1,692 $ 531 $ 1,200 Tangible common equity (Average) 42,246 41,724 41,219 38,013 37,873 Return on tangible common equity(11)(12) 12.55 % 9.77 % 16.42 % 5.59 % 12.67 % Tangible Assets (Period-End) Total assets $ 493,604 $ 490,144 $ 486,433 $ 480,018 $ 481,720 Goodwill and other intangible assets(10) (15,139 ) (15,157 ) (15,214 ) (15,226 ) (15,257 ) Tangible assets(11) $ 478,465 $ 474,987 $ 471,219 $ 464,792 $ 466,463 (Dollars in millions) 2025 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Tangible Assets (Average) Total assets $ 491,817 $ 488,300 $ 481,219 $ 477,285 $ 474,995 Goodwill and other intangible assets(10) (15,149 ) (15,195 ) (15,225 ) (15,249 ) (15,280 ) Tangible assets(11) $ 476,668 $ 473,105 $ 465,994 $ 462,036 $ 459,715 Return on Tangible Assets (Average) Net income $ 1,404 $ 1,096 $ 1,777 $ 597 $ 1,280 Tangible Assets (Average) 476,668 473,105 465,994 462,036 459,715 Return on tangible assets(11)(13) 1.18 % 0.92 % 1.53 % 0.52 % 1.11 % TCE Ratio Tangible common equity (Period-end) $ 43,558 $ 40,782 $ 42,866 $ 37,910 $ 37,699 Tangible Assets (Period-end) 478,465 474,987 471,219 464,792 466,463 TCE Ratio(11) 9.1 % 8.6 % 9.1 % 8.2 % 8.1 % Tangible Book Value per Common Share Tangible common equity (Period-end) $ 43,558 $ 40,782 $ 42,866 $ 37,910 $ 37,699 Outstanding Common Shares 383.0 381.2 381.5 381.9 382.1 Tangible book value per common share(11) $ 113.74 $ 106.97 $ 112.36 $ 99.28 $ 98.67 __________ (1) Regulatory capital metrics and capital ratios as of March 31, 2025 are preliminary and therefore subject to change. (2) Excludes certain components of AOCI in accordance with rules applicable to Category III institutions. (3) Total capital equals the sum of Tier 1 capital and Tier 2 capital. (4) Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets. (5) Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets. (6) Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets. (7) Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets. (8) TCE ratio is a Non-GAAP measure calculated based on TCE divided by tangible assets. (9) Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. (10) Includes impact of related deferred taxes. (11) Management believes that this financial metric is useful in assessing capital adequacy and the level of returns generated. (12) Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average TCE. (13) Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. 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Business Wire
22-04-2025
- Business
- Business Wire
Capital One Reports First Quarter 2025 Net Income of $1.4 Billion, or $3.45 Per Share
MCLEAN, Va.--(BUSINESS WIRE)--Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2025 of $1.4 billion, or $3.45 per diluted common share, compared with net income of $1.1 billion, or $2.67 per diluted common share in the fourth quarter of 2024, and with net income of $1.3 billion, or $3.13 per diluted common share in the first quarter of 2024. Adjusted net income (1) for the first quarter of 2025 was $4.06 per diluted common share. "Last week, we received regulatory approval for our acquisition of Discover and we're fully mobilized to complete the transaction on May 18th," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "The combination of Capital One and Discover will create a leading consumer banking and payments platform with unique capabilities, modern technology, and powerful brands. It leverages Capital One's technology transformation and digital capabilities across a significantly larger customer franchise. And it offers the potential to enhance competition and create significant value for merchants and customers." The quarter included the following adjusting items: All comparisons below are for the first quarter of 2025 compared with the fourth quarter of 2024 unless otherwise noted. First Quarter 2025 Income Statement Summary: Total net revenue decreased 2 percent to $10.0 billion. Total non-interest expense decreased 3 percent to $5.9 billion: 13 percent decrease in marketing. Less than 1 percent decrease in operating expenses. Pre-provision earnings (2) remained substantially flat at $4.1 billion. Provision for credit losses decreased $273 million to $2.4 billion: Net charge-offs of $2.7 billion. $368 million loan reserve release. Net interest margin of 6.93 percent, a decrease of 10 basis points. Efficiency ratio of 59.02 percent. Adjusted efficiency ratio (1) of 55.94 percent. Operating efficiency ratio of 47.00 percent. Adjusted operating efficiency ratio (1) of 43.92 percent. First Quarter 2025 Balance Sheet Summary: Common equity Tier 1 capital ratio (3) under Basel III Standardized Approach of 13.6 percent at March 31, 2025. Period-end loans held for investment in the quarter decreased $4.2 billion, or 1 percent, to $323.6 billion. Credit Card period-end loans decreased $5.3 billion, or 3 percent, to $157.2 billion. Domestic Card period-end loans decreased $5.3 billion, or 3 percent, to $150.3 billion. Consumer Banking period-end loans increased $804 million, or 1 percent, to $78.9 billion. Auto period-end loans increased $827 million, or 1 percent, to $77.7 billion. Commercial Banking period-end loans increased $338 million, or less than 1 percent, to $87.5 billion. Average loans held for investment in the quarter increased $514 million, or less than 1 percent, to $322.4 billion. Credit Card average loans decreased $919 million, or 1 percent, to $156.4 billion. Domestic Card average loans decreased $651 million, or less than 1 percent, to $149.6 billion. Consumer Banking average loans increased $1.3 billion, or 2 percent, to $78.5 billion. Auto average loans increased $1.3 billion, or 2 percent, to $77.2 billion. Commercial Banking average loans increased $174 million, or less than 1 percent, to $87.5 billion. Period-end total deposits increased $4.8 billion, or 1 percent, to $367.5 billion, while average deposits increased $5.8 billion, or 2 percent, to $364.1 billion. Interest-bearing deposits rate paid decreased 23 basis points to 3.22 percent. Earnings Conference Call Webcast Information The company will hold an earnings conference call on April 22, 2025 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company's home page ( Under 'About,' choose 'Investors' to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company's website through May 6, 2025 at 5:00 PM Eastern Time. Forward-Looking Statements Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Forward-looking statements often use words such as 'will,' 'anticipate,' 'target,' 'expect,' 'think,' 'estimate,' 'intend,' 'plan,' 'goal,' 'believe,' 'forecast,' 'outlook' or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under 'Part I—Item 1A. Risk Factors' in the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the 'SEC') and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC. About Capital One Capital One Financial Corporation ( is a financial holding company which, along with its subsidiaries, had $367.5 billion in deposits and $493.6 billion in total assets as of March 31, 2025. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol 'COF' and is included in the S&P 100 index. (1) This is a non-GAAP measure. We believe non-GAAP measures help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on April 22, 2025 with the SEC, 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for a reconciliation and additional information on non-GAAP measures. (2) Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on April 22, 2025 with the SEC, 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for a reconciliation and additional information on non-GAAP measures. (3) Regulatory capital metrics as of March 31, 2025 are preliminary and therefore subject to change. __________ (1) The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended March 31, 2025 once it is filed with the Securities and Exchange Commission. (2) This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. ('GAAP'), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. See 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for a reconciliation of any non-GAAP financial measures. Expand CAPITAL ONE FINANCIAL CORPORATION (COF) Table 1: Financial Summary—Consolidated 2025 Q1 (Dollars in millions, except per share data and as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Income Statement Net interest income $ 8,013 $ 8,098 $ 8,076 $ 7,546 $ 7,488 (1 )% 7 % Non-interest income 1,987 2,092 1,938 1,960 1,914 (5 ) 4 Total net revenue (1) 10,000 10,190 10,014 9,506 9,402 (2 ) 6 Provision for credit losses 2,369 2,642 2,482 3,909 2,683 (10 ) (12 ) Non-interest expense: Marketing 1,202 1,375 1,113 1,064 1,010 (13 ) 19 Operating expense 4,700 4,714 4,201 3,882 4,127 — 14 Total non-interest expense 5,902 6,089 5,314 4,946 5,137 (3 ) 15 Income from continuing operations before income taxes 1,729 1,459 2,218 651 1,582 19 9 Income tax provision 325 366 441 54 302 (11 ) 8 Income from continuing operations, net of tax 1,404 1,093 1,777 597 1,280 28 10 Income from discontinued operations, net of tax — 3 — — — ** — Net income 1,404 1,096 1,777 597 1,280 28 10 Dividends and undistributed earnings allocated to participating securities (2) (22 ) (17 ) (28 ) (9 ) (23 ) 29 (4 ) Preferred stock dividends (57 ) (57 ) (57 ) (57 ) (57 ) — — Net income available to common stockholders $ 1,325 $ 1,022 $ 1,692 $ 531 $ 1,200 30 10 Common Share Statistics Basic earnings per common share: (2) Net income from continuing operations $ 3.46 $ 2.66 $ 4.42 $ 1.39 $ 3.14 30 % 10 % Income from discontinued operations — 0.01 — — — ** — Net income per basic common share $ 3.46 $ 2.67 $ 4.42 $ 1.39 $ 3.14 30 10 Diluted earnings per common share: (2) Net income from continuing operations $ 3.45 $ 2.66 $ 4.41 $ 1.38 $ 3.13 30 % 10 % Income from discontinued operations — 0.01 — — — ** — Net income per diluted common share $ 3.45 $ 2.67 $ 4.41 $ 1.38 $ 3.13 29 10 Weighted-average common shares outstanding (in millions): Basic 383.1 382.4 383.0 383.1 382.2 — — Diluted 384.0 383.4 383.7 383.9 383.4 — — Common shares outstanding (period-end, in millions) 383.0 381.2 381.5 381.9 382.1 — — Dividends declared and paid per common share $ 0.60 $ 0.60 $ 0.60 $ 0.60 $ 0.60 — — Tangible book value per common share (period-end) (3) 113.74 106.97 112.36 99.28 98.67 6 % 15 % Expand 2025 Q1 (Dollars in millions) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Balance Sheet (Period-End) Loans held for investment $ 323,598 $ 327,775 $ 320,243 $ 318,186 $ 315,154 (1 )% 3 % Interest-earning assets 463,414 463,058 458,189 452,547 453,557 — 2 Total assets 493,604 490,144 486,433 480,018 481,720 1 2 Interest-bearing deposits 340,964 336,585 327,253 324,437 323,352 1 5 Total deposits 367,464 362,707 353,631 351,442 350,969 1 5 Borrowings 41,773 45,551 49,336 47,956 50,361 (8 ) (17 ) Common equity 58,697 55,938 58,080 53,135 52,955 5 11 Total stockholders' equity 63,542 60,784 62,925 57,981 57,801 5 10 Balance Sheet (Average Balances) Loans held for investment $ 322,385 $ 321,871 $ 318,255 $ 314,888 $ 314,614 — 2 % Interest-earning assets 462,771 460,640 454,484 450,908 447,803 — 3 Total assets 491,817 488,300 481,219 477,285 474,995 1 % 4 Interest-bearing deposits 337,840 331,564 324,509 322,581 318,450 2 6 Total deposits 364,078 358,323 351,125 349,488 345,657 2 5 Borrowings 44,448 46,293 48,274 48,842 50,474 (4 ) (12 ) Common equity 57,395 56,918 56,443 53,262 53,152 1 8 Total stockholders' equity 62,240 61,764 61,289 58,107 57,998 1 7 Expand CAPITAL ONE FINANCIAL CORPORATION (COF) Table 2: Selected Metrics—Consolidated 2025 Q1 (Dollars in millions, except as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Performance Metrics Net interest income growth (period over period) (1 )% — 7 % 1 % — ** ** Non-interest income growth (period over period) (5 ) 8 % (1 ) 2 (4 )% ** ** Total net revenue growth (period over period) (2 ) 2 5 1 (1 ) ** ** Total net revenue margin (4) 8.64 8.85 8.81 8.43 8.40 (21 ) bps 24 bps Net interest margin (5) 6.93 7.03 7.11 6.70 6.69 (10 ) 24 Return on average assets 1.14 0.90 1.48 0.50 1.08 24 6 Return on average tangible assets (6) 1.18 0.92 1.53 0.52 1.11 26 7 Return on average common equity (7) 9.23 7.16 11.99 3.99 9.03 207 20 Return on average tangible common equity (8) 12.55 9.77 16.42 5.59 12.67 278 (12 ) Efficiency ratio (9) 59.02 59.75 53.07 52.03 54.64 (73 ) 438 Operating efficiency ratio (10) 47.00 46.26 41.95 40.84 43.89 74 311 Effective income tax rate for continuing operations 18.8 25.1 19.9 8.3 19.1 (630 ) (30 ) Employees (period-end, in thousands) 53.9 52.6 52.5 52.1 51.3 2 % 5 % Credit Quality Metrics Allowance for credit losses $ 15,899 $ 16,258 $ 16,534 $ 16,649 $ 15,380 (2 )% 3 % Allowance coverage ratio 4.91 % 4.96 % 5.16 % 5.23 % 4.88 % (5 ) bps 3 bps Net charge-offs $ 2,736 $ 2,884 $ 2,604 $ 2,644 $ 2,616 (5 )% 5 % Net charge-off rate (11) 3.40 % 3.59 % 3.27 % 3.36 % 3.33 % (19 ) bps 7 bps 30+ day performing delinquency rate 3.29 3.69 3.58 3.36 3.40 (40 ) (11 ) 30+ day delinquency rate 3.51 3.98 3.89 3.63 3.67 (47 ) (16 ) Capital Ratios (12) Common equity Tier 1 capital 13.6 % 13.5 % 13.6 % 13.2 % 13.1 % 10 bps 50 bps Tier 1 capital 14.9 14.8 14.9 14.5 14.4 10 50 Total capital 17.0 16.4 16.6 16.3 16.2 60 80 Tier 1 leverage 11.6 11.6 11.6 11.3 11.3 — 30 Tangible common equity ('TCE') (13) 9.1 8.6 9.1 8.2 8.1 50 100 Expand CAPITAL ONE FINANCIAL CORPORATION (COF) Table 3: Consolidated Statements of Income 2025 Q1 (Dollars in millions, except as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Interest income: Loans, including loans held for sale $ 10,157 $ 10,434 $ 10,547 $ 9,993 $ 9,920 (3 )% 2 % Investment securities 770 753 733 700 687 2 12 Other 491 530 580 587 570 (7 ) (14 ) Total interest income 11,418 11,717 11,860 11,280 11,177 (3 ) 2 Interest expense: Deposits 2,715 2,862 2,945 2,874 2,812 (5 ) (3 ) Securitized debt obligations 176 205 234 258 261 (14 ) (33 ) Senior and subordinated notes 505 540 596 591 606 (6 ) (17 ) Other borrowings 9 12 9 11 10 (25 ) (10 ) Total interest expense 3,405 3,619 3,784 3,734 3,689 (6 ) (8 ) Net interest income 8,013 8,098 8,076 7,546 7,488 (1 ) 7 Provision for credit losses 2,369 2,642 2,482 3,909 2,683 (10 ) (12 ) Net interest income after provision for credit losses 5,644 5,456 5,594 3,637 4,805 3 17 Non-interest income: Interchange fees, net 1,223 1,260 1,228 1,249 1,145 (3 ) 7 Service charges and other customer-related fees 509 554 501 459 462 (8 ) 10 Net securities gains (losses) — — (35 ) — — — — Other 255 278 244 252 307 (8 ) (17 ) Total non-interest income 1,987 2,092 1,938 1,960 1,914 (5 ) 4 Non-interest expense: Salaries and associate benefits 2,546 2,329 2,391 2,200 2,478 9 3 Occupancy and equipment 615 674 587 551 554 (9 ) 11 Marketing 1,202 1,375 1,113 1,064 1,010 (13 ) 19 Professional services 437 630 402 316 262 (31 ) 67 Communications and data processing 399 398 358 355 351 — 14 Amortization of intangibles 16 19 20 19 19 (16 ) (16 ) Other 687 664 443 441 463 3 48 Total non-interest expense 5,902 6,089 5,314 4,946 5,137 (3 ) 15 Income from continuing operations before income taxes 1,729 1,459 2,218 651 1,582 19 9 Income tax provision 325 366 441 54 302 (11 ) 8 Income from continuing operations, net of tax 1,404 1,093 1,777 597 1,280 28 10 Income from discontinued operations, net of tax — 3 — — — ** — Net income 1,404 1,096 1,777 597 1,280 28 10 Dividends and undistributed earnings allocated to participating securities (2) (22 ) (17 ) (28 ) (9 ) (23 ) 29 (4 ) Preferred stock dividends (57 ) (57 ) (57 ) (57 ) (57 ) — — Net income available to common stockholders $ 1,325 $ 1,022 $ 1,692 $ 531 $ 1,200 30 10 2025 Q1 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Basic earnings per common share: (2) Net income from continuing operations $ 3.46 $ 2.66 $ 4.42 $ 1.39 $ 3.14 30 % 10 % Income from discontinued operations — 0.01 — — — ** — Net income per basic common share $ 3.46 $ 2.67 $ 4.42 $ 1.39 $ 3.14 30 10 Diluted earnings per common share: (2) Net income from continuing operations $ 3.45 $ 2.66 $ 4.41 $ 1.38 $ 3.13 30 % 10 % Income from discontinued operations — 0.01 — — — ** — Net income per diluted common share $ 3.45 $ 2.67 $ 4.41 $ 1.38 $ 3.13 29 10 Weighted-average common shares outstanding (in millions): Basic common shares 383.1 382.4 383.0 383.1 382.2 — — Diluted common shares 384.0 383.4 383.7 383.9 383.4 — — Expand CAPITAL ONE FINANCIAL CORPORATION (COF) Table 4: Consolidated Balance Sheets 2025 Q1 (Dollars in millions) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Assets: Cash and cash equivalents: Cash and due from banks $ 4,108 $ 3,028 $ 3,976 $ 5,298 $ 4,671 36 % (12 )% Interest-bearing deposits and other short-term investments 44,465 40,202 45,322 40,116 46,357 11 (4 ) Total cash and cash equivalents 48,573 43,230 49,298 45,414 51,028 12 (5 ) Restricted cash for securitization investors 392 441 421 2,415 474 (11 ) (17 ) Securities available for sale 84,362 83,013 83,500 79,250 78,398 2 8 Loans held for investment: Unsecuritized loans held for investment 295,939 298,241 292,061 289,124 285,577 (1 ) 4 Loans held in consolidated trusts 27,659 29,534 28,182 29,062 29,577 (6 ) (6 ) Total loans held for investment 323,598 327,775 320,243 318,186 315,154 (1 ) 3 Allowance for credit losses (15,899 ) (16,258 ) (16,534 ) (16,649 ) (15,380 ) (2 ) 3 Net loans held for investment 307,699 311,517 303,709 301,537 299,774 (1 ) 3 Loans held for sale 686 202 96 808 1,631 ** (58 ) Premises and equipment, net 4,579 4,511 4,440 4,396 4,366 2 5 Interest receivable 2,599 2,532 2,577 2,494 2,514 3 3 Goodwill 15,070 15,059 15,083 15,062 15,062 — — Other assets 29,644 29,639 27,309 28,642 28,473 — 4 Total assets $ 493,604 $ 490,144 $ 486,433 $ 480,018 $ 481,720 1 2 2025 Q1 (Dollars in millions) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Liabilities: Interest payable $ 646 $ 666 $ 705 $ 668 $ 762 (3 )% (15 )% Deposits: Non-interest-bearing deposits 26,500 26,122 26,378 27,005 27,617 1 (4 ) Interest-bearing deposits 340,964 336,585 327,253 324,437 323,352 1 5 Total deposits 367,464 362,707 353,631 351,442 350,969 1 5 Securitized debt obligations 11,716 14,264 15,881 17,291 17,661 (18 ) (34 ) Other debt: Federal funds purchased and securities loaned or sold under agreements to repurchase 573 562 520 715 568 2 1 Senior and subordinated notes 29,459 30,696 32,911 29,925 32,108 (4 ) (8 ) Other borrowings 25 29 24 25 24 (14 ) 4 Total other debt 30,057 31,287 33,455 30,665 32,700 (4 ) (8 ) Other liabilities 20,179 20,436 19,836 21,971 21,827 (1 ) (8 ) Total liabilities 430,062 429,360 423,508 422,037 423,919 — 1 Stockholders' equity: Preferred stock 0 0 0 0 0 — — Common stock 7 7 7 7 7 — — Additional paid-in capital, net 36,693 36,428 36,216 36,012 35,808 1 2 Retained earnings 65,616 64,505 63,698 62,211 61,905 2 6 Accumulated other comprehensive loss (7,529 ) (9,286 ) (6,287 ) (9,701 ) (9,534 ) (19 ) (21 ) Treasury stock, at cost (31,245 ) (30,870 ) (30,709 ) (30,548 ) (30,385 ) 1 3 Total stockholders' equity 63,542 60,784 62,925 57,981 57,801 5 10 Total liabilities and stockholders' equity $ 493,604 $ 490,144 $ 486,433 $ 480,018 $ 481,720 1 2 Expand CAPITAL ONE FINANCIAL CORPORATION (COF) Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4) (1) Total net revenue was reduced by $705 million in Q1 2025, $706 million in Q4 2024, $624 million in Q3 2024, $649 million in Q2 2024 and $630 million in Q1 2024 for credit card finance charges and fees charged-off as uncollectible. (2) Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for additional information on our non-GAAP measures. (3) Tangible book value per common share is a non-GAAP measure calculated based on TCE divided by common shares outstanding. See 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for additional information on non-GAAP measures. (4) Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period. (5) Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period. (6) Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for additional information on non-GAAP measures. (7) Return on average common equity is calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies. (8) Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average TCE. See 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for additional information on non-GAAP measures. (9) Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for additional information on our non-GAAP measures. (10) Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for additional information on our non-GAAP measures. (11) Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period. (12) Capital ratios as of the end of Q1 2025 are preliminary and therefore subject to change. See 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for information on the calculation of each of these ratios. (13) TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See 'Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures' for additional information on non-GAAP measures. ** Not meaningful. Expand CAPITAL ONE FINANCIAL CORPORATION (COF) Table 7: Loan Information and Performance Statistics 2025 Q1 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Loans Held for Investment (Period-End) Credit card: Domestic credit card $ 150,309 $ 155,618 $ 149,400 $ 147,065 $ 143,861 (3 )% 4 % International card businesses 6,880 6,890 7,251 6,830 6,733 — 2 Total credit card 157,189 162,508 156,651 153,895 150,594 (3 ) 4 Consumer banking: Auto 77,656 76,829 75,505 74,385 73,801 1 5 Retail banking 1,240 1,263 1,253 1,278 1,298 (2 ) (4 ) Total consumer banking 78,896 78,092 76,758 75,663 75,099 1 5 Commercial banking: Commercial and multifamily real estate 31,971 31,903 32,199 32,832 34,272 — (7 ) Commercial and industrial 55,542 55,272 54,635 55,796 55,189 — 1 Total commercial banking 87,513 87,175 86,834 88,628 89,461 — (2 ) Total loans held for investment $ 323,598 $ 327,775 $ 320,243 $ 318,186 $ 315,154 (1 ) 3 Loans Held for Investment (Average) Credit card: Domestic credit card $ 149,639 $ 150,290 $ 147,021 $ 143,744 $ 142,887 — 5 % International card businesses 6,768 7,036 6,951 6,723 6,758 (4 )% — Total credit card 156,407 157,326 153,972 150,467 149,645 (1 ) 5 Consumer banking: Auto 77,228 75,968 74,920 74,098 73,768 2 5 Retail banking 1,252 1,253 1,262 1,288 1,324 — (5 ) Total consumer banking 78,480 77,221 76,182 75,386 75,092 2 5 Commercial banking: Commercial and multifamily real estate 31,733 32,058 32,416 33,801 34,310 (1 ) (8 ) Commercial and industrial 55,765 55,266 55,685 55,234 55,567 1 — Total commercial banking 87,498 87,324 88,101 89,035 89,877 — (3 ) Total average loans held for investment $ 322,385 $ 321,871 $ 318,255 $ 314,888 $ 314,614 — 2 Expand 2025 Q1 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Net Charge-Off (Recovery) Rates Credit card: Domestic credit card (4) 6.19 % 6.06 % 5.61 % 6.05 % 5.94 % 13 bps 25 bps International card businesses 5.02 5.17 5.23 5.03 5.16 (15 ) (14 ) Total credit card 6.14 6.02 5.60 6.00 5.90 12 24 Consumer banking: Auto 1.55 2.32 2.05 1.81 1.99 (77 ) (44 ) Retail banking 4.75 5.63 5.43 5.38 4.04 (88 ) 71 Total consumer banking 1.60 2.38 2.11 1.87 2.03 (78 ) (43 ) Commercial banking: Commercial and multifamily real estate 0.09 0.50 0.26 0.11 0.20 (41 ) (11 ) Commercial and industrial 0.12 0.13 0.20 0.17 0.08 (1 ) 4 Total commercial banking 0.11 0.26 0.22 0.15 0.13 (15 ) (2 ) Total net charge-offs 3.40 3.59 3.27 3.36 3.33 (19 ) 7 30+ Day Performing Delinquency Rates Credit card: Domestic credit card 4.25 % 4.53 % 4.53 % 4.14 % 4.48 % (28 ) bps (23 ) bps International card businesses 4.56 4.52 4.53 4.63 4.83 4 (27 ) Total credit card 4.26 4.53 4.53 4.16 4.50 (27 ) (24 ) Consumer banking: Auto 4.93 5.95 5.61 5.67 5.28 (102 ) (35 ) Retail banking 1.13 1.12 0.95 1.57 0.95 1 18 Total consumer banking 4.87 5.87 5.53 5.60 5.21 (100 ) (34 ) Nonperforming Loans and Nonperforming Assets Rates (5)(6) Credit card: International card businesses 0.13 % 0.15 % 0.15 % 0.15 % 0.13 % (2 ) bps — Total credit card 0.01 0.01 0.01 0.01 0.01 — — Consumer banking: Auto 0.72 0.98 0.91 0.88 0.79 (26 ) (7 ) bps Retail banking 1.89 1.94 2.19 2.81 3.21 (5 ) (132 ) Total consumer banking 0.74 0.99 0.93 0.92 0.83 (25 ) (9 ) Commercial banking: Commercial and multifamily real estate 1.23 1.60 1.96 1.28 1.58 (37 ) (35 ) Commercial and industrial 1.50 1.27 1.32 1.56 1.10 23 40 Total commercial banking 1.40 1.39 1.55 1.46 1.28 1 12 Total nonperforming loans 0.56 0.61 0.65 0.63 0.57 (5 ) (1 ) Total nonperforming assets 0.58 0.63 0.67 0.64 0.58 (5 ) — Expand CAPITAL ONE FINANCIAL CORPORATION (COF) Three Months Ended March 31, 2025 Allowance for credit losses: Balance as of December 31, 2024 $ 12,494 $ 480 $ 12,974 $ 1,859 $ 25 $ 1,884 $ 1,400 $ 16,258 Charge-offs (2,852 ) (126 ) (2,978 ) (656 ) (20 ) (676 ) (38 ) (3,692 ) Recoveries 538 41 579 357 6 363 14 956 Net charge-offs (2,314 ) (85 ) (2,399 ) (299 ) (14 ) (313 ) (24 ) (2,736 ) Provision for credit losses 1,856 70 1,926 285 16 301 141 2,368 Allowance build (release) for credit losses (458 ) (15 ) (473 ) (14 ) 2 (12 ) 117 (368 ) Other changes (7) — 9 9 — — — — 9 Balance as of March 31, 2025 12,036 474 12,510 1,845 27 1,872 1,517 15,899 Reserve for unfunded lending commitments: Balance as of December 31, 2024 — — — — — — 143 143 Provision for losses on unfunded lending commitments — — — — — — 1 1 Balance as of March 31, 2025 — — — — — — 144 144 Combined allowance and reserve as of March 31, 2025 $ 12,036 $ 474 $ 12,510 $ 1,845 $ 27 $ 1,872 $ 1,661 $ 16,043 Expand CAPITAL ONE FINANCIAL CORPORATION (COF) Table 9: Financial Summary—Business Segment Results Three Months Ended March 31, 2025 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (8) Other (8) Total Net interest income (loss) $ 5,654 $ 1,943 $ 572 $ (156 ) $ 8,013 Non-interest income (loss) 1,511 183 312 (19 ) 1,987 Total net revenue (loss) 7,165 2,126 884 (175 ) 10,000 Provision (benefit) for credit losses 1,926 301 142 — 2,369 Non-interest expense 3,638 1,581 486 197 5,902 Income (loss) from continuing operations before income taxes 1,601 244 256 (372 ) 1,729 Income tax provision (benefit) 382 58 61 (176 ) 325 Income (loss) from continuing operations, net of tax $ 1,219 $ 186 $ 195 $ (196 ) $ 1,404 Three Months Ended December 31, 2024 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (8) Other (8) Total Net interest income (loss) $ 5,779 $ 1,959 $ 587 $ (227 ) $ 8,098 Non-interest income (loss) 1,585 182 366 (41 ) 2,092 Total net revenue (loss) 7,364 2,141 953 (268 ) 10,190 Provision (benefit) for credit losses 2,384 328 (72 ) 2 2,642 Non-interest expense 3,846 1,545 518 180 6,089 Income (loss) from continuing operations before income taxes 1,134 268 507 (450 ) 1,459 Income tax provision (benefit) 268 63 119 (84 ) 366 Income (loss) from continuing operations, net of tax $ 866 $ 205 $ 388 $ (366 ) $ 1,093 Three Months Ended March 31, 2024 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (8) Other (8) Total Net interest income (loss) $ 5,272 $ 2,011 $ 599 $ (394 ) $ 7,488 Non-interest income (loss) 1,476 159 281 (2 ) 1,914 Total net revenue (loss) 6,748 2,170 880 (396 ) 9,402 Provision (benefit) for credit losses 2,259 426 (2 ) — 2,683 Non-interest expense 3,229 1,246 515 147 5,137 Income (loss) from continuing operations before income taxes 1,260 498 367 (543 ) 1,582 Income tax provision (benefit) 299 117 87 (201 ) 302 Income (loss) from continuing operations, net of tax $ 961 $ 381 $ 280 $ (342 ) $ 1,280 Expand CAPITAL ONE FINANCIAL CORPORATION (COF) Table 10: Financial & Statistical Summary—Credit Card Business 2025 Q1 vs. Q1 Q4 Q3 Q2 Q1 Q4 Q1 Credit Card Earnings: Net interest income $ 5,654 $ 5,779 $ 5,743 $ 5,294 $ 5,272 (2 )% 7 % Non-interest income 1,511 1,585 1,509 1,506 1,476 (5 ) 2 Total net revenue 7,165 7,364 7,252 6,800 6,748 (3 ) 6 Provision for credit losses 1,926 2,384 2,084 3,545 2,259 (19 ) (15 ) Non-interest expense 3,638 3,846 3,367 3,134 3,229 (5 ) 13 Income from continuing operations before income taxes 1,601 1,134 1,801 121 1,260 41 27 Income tax provision 382 268 427 30 299 43 28 Income from continuing operations, net of tax $ 1,219 $ 866 $ 1,374 $ 91 $ 961 41 27 Selected performance metrics: Period-end loans held for investment $ 157,189 $ 162,508 $ 156,651 $ 153,895 $ 150,594 (3 ) 4 Average loans held for investment 156,407 157,326 153,972 150,467 149,645 (1 ) 5 Average yield on loans outstanding (1) 18.54 % 19.05 % 19.66 % 18.79 % 18.84 % (51 ) bps (30 ) bps Total net revenue margin (9) 18.32 18.72 18.82 18.03 17.99 (40 ) 33 Net charge-off rate 6.14 6.02 5.60 6.00 5.90 12 24 30+ day performing delinquency rate 4.26 4.53 4.53 4.16 4.50 (27 ) (24 ) 30+ day delinquency rate 4.27 4.54 4.54 4.17 4.50 (27 ) (23 ) Nonperforming loan rate (5) 0.01 0.01 0.01 0.01 0.01 — — Purchase volume (10) $ 157,948 $ 172,919 $ 166,203 $ 165,143 $ 150,171 (9 )% 5 % 2025 Q1 vs. (Dollars in millions, except as noted) 2025 2024 2024 2024 2024 2024 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q1 Domestic Card Earnings: Net interest income $ 5,343 $ 5,474 $ 5,434 $ 5,001 $ 4,972 (2 )% 7 % Non-interest income 1,460
