CAPITAL ONE FINANCIAL CORP

Table 3 displays the components of non-interest income for 2024, 2023 and 2022.

Table 3: Non-Interest Income

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

(2)Includes gains of $94 million and $86 million and losses of $78 million on deferred compensation plan investments for 2024,2023 and 2022, respectively. These amounts have corresponding offsets in non-interest expense.

Non-interest income increased by $358 million to $7.9 billion in 2024 compared to 2023 primarily driven by higher capital markets activity in our Commercial Banking business and 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. We recorded a provision for credit losses of $11.7 billion in 2024, $10.4 billion in 2023 and $5.8 billion in 2022.

Our provision for credit losses increased by $1.3 billion to $11.7 billion in 2024 as compared to 2023 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.

We provide additional information on the provision for credit losses and changes in the allowance for credit losses within “Credit Risk Profile” and “Item 8. Financial Statements and Supplementary Data—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 “Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies.”