CAPITAL ONE FINANCIAL CORP

For the period ended Jun 30, 2025. Filed Jul 31, 2025.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2025 · Filed Jul 31, 2025

COF$195.84-1.4%Stored close · as of Nov 10, 2026

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Contents

Average Balances, Net Interest Income and Net Interest Margin

Table 2 below presents the average outstanding balance, interest income earned, interest expense incurred and average yield for the second quarter and first six months of 2025 and 2024 for each major category of our interest-earning assets and interest-bearing liabilities. Nonperforming loans are included in the average loan balances below.

Table 2: Average Balances, Net Interest Income and Net Interest Margin

	Three Months Ended June 30,
2025 · 2024
(Dollars in millions) · AverageBalance · Interest Income/Expense · Average Yield/Rate(1) · AverageBalance · Interest Income/Expense · Average Yield/Rate(1)
Assets:
Interest-earning assets:
Loans:(2)
Credit card	$209,693	$9,407	17.94%		$150,866		$7,088		18.79%
Consumer banking	80,095	1,861	9.30		75,386		1,611		8.54
Commercial banking(3)	88,749	1,421	6.40		89,571		1,616		7.22
Other(4)	—	(240)	**		—	(322)		**
Total loans, including loans held for sale	378,537	12,449	13.15		315,823		9,993		12.66
Investment securities	93,024	784	3.37		89,501		700		3.13
Cash equivalents and other interest-earning assets	53,368	595	4.46		45,584		587		5.16
Total interest-earning assets	524,929	13,828	10.54		450,908		11,280		10.01
Cash and due from banks	4,694			3,650
Allowance for credit losses	(19,902)			(15,392)
Premises and equipment, net	5,099			4,383
Other assets	53,689			33,736
Assets of discontinued operations	3,937			—
Total assets	$572,446			$477,285
Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits	$387,139	$3,120	3.22%		$322,581		$2,874		3.56%
Securitized debt obligations	13,043	164	5.06		17,452		258		5.91
Senior and subordinated notes	32,872	535	6.51		30,978		591		7.64
Other borrowings and interest-bearing liabilities(5)	2,872	14	1.85		2,502		11		1.73
Total interest-bearing liabilities	435,926	3,833	3.52		373,513		3,734		4.00
Non-interest-bearing deposits	27,429			26,907
Other liabilities	22,172			18,758
Liabilities of discontinued operations	1			—
Total liabilities	485,528			419,178
Stockholders’ equity	86,918			58,107
Total liabilities and stockholders’ equity	$572,446			$477,285
Net interest income/spread	$9,995	7.02		$7,546		6.01
Impact of non-interest-bearing funding	0.60		0.69
Net interest margin	7.62%		6.70%

12	Capital One Financial Corporation (COF)

	Six Months Ended June 30,
2025 · 2024
(Dollars in millions) · AverageBalance · Interest Income/Expense · Average Yield/Rate(1) · AverageBalance · Interest Income/Expense · Average Yield/Rate(1)
Assets:
Interest-earning assets:
Loans:(2)
Credit card	$183,197	$16,655	18.18%		$150,457		$14,155	18.82%
Consumer banking	79,292	3,634	9.17		75,239		3,175	8.44
Commercial banking(3)	88,319	2,803	6.35		89,997		3,228	7.17
Other(4)	—	(486)	**		—		(645)	**
Total loans, including loans held for sale	350,808	22,606	12.89		315,693		19,913	12.62
Investment securities	92,843	1,554	3.35		89,041		1,387	3.12
Cash equivalents and other interest-earning assets	50,371	1,086	4.31		44,622		1,157	5.19
Total interest-earning assets	494,022	25,246	10.22		449,356		22,457	10.00
Cash and due from banks	4,384			3,798
Allowance for credit losses	(18,087)			(15,342)
Premises and equipment, net	4,818			4,387
Other assets	45,236			33,941
Assets of discontinued operations	1,981			—
Total assets	$532,354			$476,140
Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits	$362,626	$5,835	3.22%		$320,515		$5,686	3.55%
Securitized debt obligations	13,385	340	5.09		17,644		519	5.88
Senior and subordinated notes	31,609	1,040	6.58		31,594		1,197	7.58
Other borrowings and interest-bearing liabilities(5)	2,593	23	1.73		2,438		21	1.75
Total interest-bearing liabilities	410,213	7,238	3.53		372,191		7,423	3.99
Non-interest-bearing deposits	26,836			27,057
Other liabilities	20,657			18,840
Liabilities of discontinued operations	1			—
Total liabilities	457,707			418,088
Stockholders’ equity	74,647			58,052
Total liabilities and stockholders’ equity	$532,354			$476,140
Net interest income/spread	$18,008	6.69		$15,034		6.01
Impact of non-interest-bearing funding	0.60		0.68
Net interest margin	7.29%		6.69%

(1)Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Average yield is calculated using whole dollar values for average balances and interest income/expense.

(2)Past due fees, net of reversals, included in interest income totaled approximately $634 million and $1.2 billion in the second quarter and first six months of 2025, respectively, and $558 million and $1.1 billion in the second quarter and first six months of 2024, respectively.

(3)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category. Taxable-equivalent adjustments included in the interest income and yield computations for our commercial loans totaled approximately $20 million and $40 million in the second quarter and first six months of 2025, respectively, and $20 million and $39 million in the second quarter and first six months of 2024, respectively, with corresponding reductions to the Other category.

(4)Interest income/expense in the Other category represents the impact of hedge accounting on our loan portfolios and the offsetting reduction of the taxable-equivalent adjustments of our commercial loans as described above.

(5)Includes amounts related to entities that provide capital to low-income and rural communities of $2.2 billion and $2.1 billion in the second quarter and first six months of 2025, respectively, and $2.1 billion and $2.0 billion in the second quarter and first six months of 2024, respectively. Related interest expense was $8 million and $15 million for the second quarter and first six months of 2025, respectively, and $8 million and $16 million for the second quarter and first six months of 2024, respectively.

13	Capital One Financial Corporation (COF)

Net interest income increased by $2.4 billion to $10.0 billion in the second quarter of 2025 compared to the second quarter of 2024 and increased by $3.0 billion to $18.0 billion in the first six months of 2025 compared to the first six months of 2024 primarily driven by higher average loan balances as a result of the Transaction and lower rates paid on deposits.

Net interest margin increased by 92 bps to 7.62% in the second quarter of 2025 compared to the second quarter of 2024 and increased by 60 bps to 7.29% in the first six months of 2025 compared to the first six months of 2024 primarily driven by higher average loan balances as a result of the Transaction and lower rates paid on deposits.

Our total company cumulative interest-bearing deposit beta increased to 34% as of June 30, 2025, from 11% as of December 31, 2024. We define cumulative deposit beta as the ratio of changes in the average rate paid on our average interest-bearing deposits to changes in the upper bound of the federal funds rate during the current falling interest rate cycle.

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