CAPITAL ONE FINANCIAL CORP

Financial Highlights

We reported net income of $597 million ($1.38 per diluted common share) on total net revenue of $9.5 billion and net income of $1.9 billion ($4.51 per diluted common share) on total net revenue of $18.9 billion for the second quarter and first six months of 2024, respectively. In comparison, we reported net income of $1.4 billion ($3.52 per diluted common share) on total net revenue of $9.0 billion and net income of $2.4 billion ($5.83 per diluted common share) on total net revenue of $17.9 billion for the second quarter and first six months of 2023, respectively.

Our common equity Tier 1 (“CET1”) capital ratio as calculated under the Basel III standardized approach was 13.2% and 12.9% as of June 30, 2024 and December 31, 2023, respectively. See “Capital Management” for additional information.

In the second quarter of 2024, we declared and paid common stock dividends of $234 million and repurchased $150 million of shares of our common stock. During the first six months of 2024, we declared and paid common stock dividends of$472 millionand repurchased $253 million of shares of our common stock. See “Capital Management—Dividend Policy and Stock Purchases” for additional information.

Below are additional highlights of our performance in the second quarter and first six months of 2024. These highlights are based on a comparison between the results of the second quarter and first six months of 2024 and 2023, except as otherwise noted. The changes in our financial condition and credit performance are generally based on our financial condition and credit performance as of June 30, 2024 compared to December 31, 2023. We provide a more detailed discussion of our financial performance in the sections following this “Executive Summary.”

Total Company Performance

•Earnings:

Our net income decreased by $834 million to $597 million in the second quarter of 2024 compared to the second quarter of 2023 and decreased by $514 million to $1.9 billion in the first six months of 2024 compared to the first six months of 2023 primarily driven by:

◦Higher provision for credit losses in the second quarter of 2024 primarily driven by higher net charge-offs in Domestic Card and a larger allowance build due to the elimination of loss sharing provisions that occurred within the termination of the Walmart program agreement, and higher provision for credit losses in the first six months of 2024 primarily driven by higher net charge-offs in Domestic Card.

◦Higher non-interest expense primarily driven by increased marketing spend.

These drivers were partially offset by:

◦Higher net-interest income primarily driven by higher asset yields and growth in our credit card loan portfolio, partially offset by higher rates paid on interest-bearing deposits.

•Loans Held for Investment:

◦Period-end loans held for investment decreased by $2.3 billion to $318.2 billion as of June 30, 2024 from December 31, 2023 primarily driven by customer payments outpacing originations in our Commercial Banking business.

◦Average loans held for investment increased by $5.2 billion to $314.9 billion in the second quarter of 2024 compared to the second quarter of 2023 and increased by $6.0 billion to $314.8 billion in the first six months of 2024 compared to the first six months of 2023 primarily driven by growth in our credit card loan portfolio.

•Net Charge-Off and Delinquency Metrics:

◦Our net charge-off rate increased by 54 basis points (“bps”) to 3.36% in the second quarter of 2024 compared to the second quarter of 2023 and increased by 82 bps to 3.34% in the first six months of 2024 compared to the first six months of 2023 primarily driven by higher net charge-offs in our domestic credit card loan portfolio.

◦Our 30+ day delinquency rate decreased by 36 bps to 3.63% as of June 30, 2024 from December 31, 2023 primarily driven by seasonally lower delinquency inventories in our auto and domestic credit card loan portfolios.

•Allowance for Credit Losses: Our allowance for credit losses increased by $1.4 billion to $16.6 billion and our allowance coverage ratio increased by 46 bps to 5.23% as of June 30, 2024 compared to December 31, 2023 primarily driven by an allowance build due to the termination of the Walmart program agreement in the second quarter of 2024.