CAPITAL ONE FINANCIAL CORP

Table 4 displays the components of non-interest income for the second quarter and first six months of 2024 and 2023.

Table 4: Non-Interest Income

(1)Primarily consists of revenue from Capital One Shopping, treasury and other investment income, our credit card partnership agreements and commercial mortgage banking revenue.

(2)Includes gains of $11 million and $53 million on deferred compensation plan investments in the second quarter and first six months of 2024, respectively, and gains of $25 million and $49 million on deferred compensation plan investments in the second quarter and first six months of 2023, respectively. These amounts have corresponding offsets in non-interest expense.

Non-interest income remained substantially flat at $2.0 billion in the second quarter of 2024 compared to the second quarter of 2023. Non-interest income increased by $258 million to $3.9 billion in the first six months of 2024 compared to the first six months of 2023 primarily driven by growth in our Credit Card business.

Provision for Credit Losses

Our provision for credit losses in each period is driven by net charge-offs, changes to the allowance for credit losses and changes to the reserve for unfunded lending commitments. Our provision for credit losses increased by $1.4 billion to $3.9 billion in the second quarter of 2024 primarily driven by higher net charge-offs in Domestic Card and a larger allowance for credit losses build due to the elimination of loss sharing provisions that occurred within the termination of the Walmart program agreement. Our provision for credit losses increased by $1.3 billion to $6.6 billion in the first six months of 2024 primarily driven by higher net charge-offs in Domestic Card.

We provide additional information on the provision for credit losses and changes in the allowance for credit losses within “Credit Risk Profile” and “Part I—Item 1. Financial Statements—Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments.” For information on the allowance methodology for each of our loan categories, see “Part II—Item 8. Financial Statements—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K.