CAPITAL ONE FINANCIAL CORP

Financial Highlights

We reported net income of $1.4 billion ($3.45 per diluted common share) on total net revenue of $10.0 billion for the first quarter of 2025. In comparison, we reported net income of $1.3 billion ($3.13 per diluted common share) on total net revenue of $9.4 billion for the first quarter of 2024.

Our common equity Tier 1 (“CET1”) capital ratio as calculated under the Basel III standardized approach was 13.6% and 13.5% as of March 31, 2025 and December 31, 2024, respectively. See “Capital Management” for additional information.

In the first quarter of 2025, we declared and paid common stock dividends of $236 million and repurchased $150 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 first quarter of 2025. These highlights are based on a comparison between the results of the first quarters of 2025 and 2024, 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 March 31, 2025 compared to December 31, 2024. We provide a more detailed discussion of our financial performance in the sections following this “Executive Summary.”

Total Company Performance

•Earnings:

Our net income increased by $124 million to $1.4 billion in the first quarter of 2025 compared to the first quarter of 2024 primarily driven by:

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

◦Lower provision for credit losses primarily driven by an allowance release of $473 million in our credit card loan portfolio, partially offset by an allowance build of $117 million in our commercial loan portfolio.

These drivers were partially offset by:

◦Higher non-interest expense primarily driven by continued investment in technology, an increase to the litigation accrual and increased marketing spend.

•Loans Held for Investment:

◦Period-end loans held for investment decreased by $4.2 billion to $323.6 billion as of March 31, 2025 from December 31, 2024 primarily driven by seasonal paydowns in our credit card loan portfolio.

◦Average loans held for investment increased by $7.8 billion to $322.4 billion in the first quarter of 2025 compared to the first quarter of 2024 primarily driven by growth in our credit card loan portfolio.

•Net Charge-Off and Delinquency Metrics:

◦Our net charge-off rate increased by 7 basis points (“bps”) to 3.40% in the first quarter of 2025 compared to the first quarter of 2024.

◦Our 30+ day delinquency rate decreased by 47 bps to 3.51% as of March 31, 2025 from December 31, 2024.

•Allowance for Credit Losses: Our allowance for credit losses decreased by $359 million to $15.9 billion and our allowance coverage ratio decreased by 5 bps to 4.91% as of March 31, 2025 compared to December 31, 2024 primarily driven by an allowance release of $473 million in our credit card loan portfolio, partially offset by an allowance build of $117 million in our commercial loan portfolio.