CAPITAL ONE FINANCIAL CORP

Financial Highlights

We reported net income of $4.8 billion ($11.59 per diluted common share) on total net revenue of $39.1 billion for 2024. In comparison, we reported net income of $4.9 billion ($11.95 per diluted common share) on total net revenue of $36.8 billion for 2023 and net income of $7.4 billion ($17.91 per diluted common share) on total net revenue of $34.3 billion for 2022.

Our CET1 capital ratio as calculated under the Basel III standardized approach was 13.5% and 12.9% of December 31, 2024 and 2023, respectively. See “Capital Management” for additional information.

For the year ended December 31, 2024, we declared and paid common stock dividends of $937 million and repurchased $553 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 2024. These highlights are based on a comparison between the results 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 December 31, 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 $137 million to $4.8 billion in 2024 compared to 2023 primarily driven by:

◦Higher provision for credit losses primarily driven by higher net charge-offs in our domestic credit card loan portfolio, including the impacts of the elimination of loss sharing provisions due to the Walmart Program Termination, partially offset by a lower allowance build.

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

These drivers were partially offset by:

◦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 increased by $7.3 billion to $327.8 billion as of December 31, 2024 from December 31, 2023 primarily driven by growth in our credit card loan portfolio.

◦Average loans held for investment increased by $5.9 billion to $317.4 billion in 2024 compared to 2023 primarily driven by growth in our credit card loan portfolio.

•Net Charge-Off and Delinquency Metrics:

◦Our net charge-off rate increased by 69 basis points (“bps”) to 3.39% in 2024 compared to 2023.

◦Our 30+ day delinquency rate remained substantially flat at 3.98% as of December 31, 2024 compared to 3.99% as of December 31, 2023.

•Allowance for Credit Losses: Our allowance for credit losses increased by $962 million to $16.3 billion and our allowance coverage ratio increased by 19 bps to 4.96% as of December 31, 2024 compared to December 31, 2023 primarily driven by an allowance build due to the Walmart Program Termination in the second quarter of 2024.