CAPITAL ONE FINANCIAL CORP

Table 4 displays the components of non-interest income for the third quarter and first nine 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 $36 million and $89 million on deferred compensation plan investments in the third quarter and first nine months of 2024, respectively, and losses of $13 million and gains of $36 million on deferred compensation plan investments in the third quarter and first nine months of 2023, respectively. These amounts have corresponding offsets in non-interest expense.

Non-interest income remained substantially flat at $1.9 billion in the third quarter of 2024 compared to the third quarter of 2023. Non-interest income increased by $253 million to $5.8 billion in the first nine months of 2024 compared to the first nine months of 2023 primarily driven by growth in our Credit Card business and higher capital markets activity in our Commercial Banking 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 $198 million to $2.5 billion 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 an allowance release compared to an allowance build in the third quarter of 2023. Our provision for credit losses increased by $1.5 billion to $9.1 billion 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.

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.