CAPITAL ONE FINANCIAL CORP

Consumer Banking Business

The primary sources of revenue for our Consumer Banking business are net interest income from loans and deposits as well as service charges and customer-related fees. Expenses primarily consist of the provision for credit losses and operating costs.

Our Consumer Banking business generated net income from continuing operations of $1.5 billion in 2024 and $2.3 billion in both 2023 and 2022.

Table 9 summarizes the financial results of our Consumer Banking business and displays selected key metrics for the periods indicated.

Table 9: Consumer Banking Business Results

(1)Average yield is calculated based on interest income for the period divided by average loans during the period and does not include any allocations, such as funds transfer pricing.

(2)Nonperforming assets primarily consist of nonperforming loans and repossessed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment and repossessed assets.

Key factors affecting the results of our Consumer Banking business for 2024 compared to 2023, and changes in financial condition and credit performance between December 31, 2024 and 2023 include the following:

•Net Interest Income: Net interest income decreased by $690 million to $8.0 billion in 2024 primarily driven by lower margins in our retail banking business, partially offset by higher deposits in our retail banking business.

•Non-Interest Income: Non-interest income increased by $106 million to $695 million in 2024 primarily driven by higher interchange revenue from an increase in debit card purchase volume and revenue earned from auto industry services.

•Provision for Credit Losses: Provision for credit losses increased by $266 million to $1.4 billion in 2024 primarily driven by higher net charge-offs and a lower allowance release in our auto loan portfolio.

•Non-Interest Expense: Non-interest expense increased by $194 million to $5.4 billion in 2024 primarily driven by a legal reserve build in the fourth quarter of 2024 and higher professional services.

•Period-end loans held for investment increased by $2.7 billion to $78.1 billion as of December 31, 2024 from December 31, 2023 primarily driven by growth in our auto loan portfolio.

•Average loans held for investment decreased by $1.5 billion to $76.0 billion in 2024 compared to 2023 primarily driven by the impact of lower auto originations in the second half of 2022 and throughout 2023, partially offset by growth in our auto loan portfolio in 2024.

Deposits:

•Period-end deposits increased by $22.2 billion to $318.3 billion as of December 31, 2024 from December 31, 2023 primarily driven by continued growth from our national consumer banking strategy.

Net Charge-Off and Delinquency Metrics:

•The net charge-off rate increased by 34 bps to 2.10% in 2024 compared to 2023.

•The 30+ day delinquency rate decreased by 35 bps to 6.73% as of December 31, 2024 compared to December 31, 2023.