CAPITAL ONE FINANCIAL CORP

Financial Highlights

We reported net income of $1.8 billion ($4.41 per diluted common share) on total net revenue of $10.0 billion and net income of $3.7 billion ($8.92 per diluted common share) on total net revenue of $28.9 billion for the third quarter and first nine months of 2024, respectively. In comparison, we reported net income of $1.8 billion ($4.45 per diluted common share) on total net revenue of $9.4 billion and net income of $4.2 billion ($10.28 per diluted common share) on total net revenue of $27.3 billion for the third quarter and first nine months of 2023, respectively.

Our common equity Tier 1 (“CET1”) capital ratio as calculated under the Basel III standardized approach was 13.6% and 12.9% as of September 30, 2024 and December 31, 2023, respectively. See “Capital Management” for additional information.

In the third quarter of 2024, we declared and paid common stock dividends of $233 million and repurchased $150 million of shares of our common stock. During the first nine months of 2024, we declared and paid common stock dividends of $705 million and repurchased $403 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 third quarter and first nine months of 2024. These highlights are based on a comparison between the results of the third quarter and first nine 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 September 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 $13 million to $1.8 billion in the third quarter of 2024 compared to the third quarter of 2023 primarily driven by:

◦Higher provision for credit losses in the third quarter of 2024 primarily driven by higher net charge-offs, including the impacts of the elimination of loss sharing provisions due to the Walmart Program Termination, partially offset by allowance releases compared to a net allowance build in the third quarter of 2023.

◦Higher non-interest expense primarily driven by growth in our Credit Card business and increased marketing spend.

◦Higher net-interest income primarily driven by higher average loan balances and margins in our credit card loan portfolio, including the impacts of the elimination of revenue sharing provisions due to the Walmart Program Termination.

Our net income decreased by $527 million to $3.7 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by:

◦Higher provision for credit losses in the first nine months of 2024 primarily driven by higher net charge-offs in Domestic Card, partially offset by a lower net allowance build.

◦Higher non-interest expense primarily driven by growth in our Credit Card business and increased marketing spend.

◦Higher net-interest income primarily driven by higher average loan balances and margins in our credit card loan portfolio, including the impacts of the elimination of revenue sharing provisions due to the Walmart Program Termination, partially offset by higher rates paid on interest-bearing deposits.

•Loans Held for Investment:

◦Period-end loans held for investment decreased by $229 million to $320.2 billion as of September 30, 2024 from December 31, 2023 primarily driven by customer payments outpacing originations in our commercial loan portfolio, partially offset by growth in our credit card and auto loan portfolios.

◦Average loans held for investment increased by $5.5 billion to $318.3 billion in the third quarter of 2024 compared to the third quarter of 2023 and increased by $5.9 billion to $315.9 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by growth in our credit card loan portfolio, partially offset by customer payments outpacing originations in our commercial loan portfolio.

•Net Charge-Off and Delinquency Metrics:

◦Our net charge-off rate increased by 71 basis points (“bps”) to 3.27% in the third quarter of 2024 compared to the third quarter of 2023 and increased by 79 bps to 3.32% in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by higher net charge-offs in our credit card loan portfolio.

◦Our 30+ day delinquency rate decreased by 10 bps to 3.89% as of September 30, 2024 from December 31, 2023 primarily driven by lower delinquency inventories in our auto loan portfolio.

•Allowance for Credit Losses: Our allowance for credit losses increased by $1.2 billion to $16.5 billion and our allowance coverage ratio increased by 39 bps to 5.16% as of September 30, 2024 compared to December 31, 2023 primarily driven by an allowance build due to the Walmart Program Termination in the second quarter of 2024.