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, including revenue from processing transactions on the Global Payment Network. Expenses primarily consist of the provision for credit losses and operating costs.

Our Consumer Banking business generated income from continuing operations, net of tax, of $450 million and $636 million in the second quarter and first six months of 2025, respectively, and $471 million and $852 million in the second quarter and first six months of 2024, respectively.

Table 10 summarizes the financial results of our Consumer Banking business and displays selected key metrics for the periods indicated.

Table 10: Consumer Banking Business Results

(1)Average yield is calculated based on annualized 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 the second quarter and first six months of 2025 compared to the second quarter and first six months of 2024, and changes in financial condition and credit performance between June 30, 2025 and December 31, 2024 include the following:

•Net Interest Income: Net interest income increased by $137 million to $2.2 billion in the second quarter of 2025 and increased by $69 million to $4.1 billion in the first six months of 2025 primarily driven by higher deposits as a result of the Transaction and higher average loan balances in our auto business, partially offset by lower margins in our retail banking business.

•Non-Interest Income: Non-interest income increased by $222 million to $394 million in the second quarter of 2025 and increased by $246 million to $577 million in the first six months of 2025 primarily driven by higher net discount and interchange fees as a result of acquiring the Global Payment Network in the Transaction.

•Provision for Credit Losses: Provision for credit losses decreased by $78 million to $252 million in the second quarter of 2025 and decreased by $203 million to $553 million in the first six months of 2025 primarily driven by favorable credit performance in our auto loan portfolio.

•Non-Interest Expense: Non-interest expense increased by $463 million to $1.7 billion in the second quarter of 2025 and increased by $798 million to $3.3 billion in the first six months of 2025 primarily driven by the impacts of the Transaction, continued investment in technology and an increase to the litigation accrual.

•Period-end loans held for investment increased by $3.1 billion to $81.2 billion as of June 30, 2025 from December 31, 2024 primarily driven by growth in our auto loan portfolio.

•Average loans held for investment increased by $4.7 billion to $80.1 billion in the second quarter of 2025 compared to the second quarter of 2024 and increased by $4.1 billion to $79.3 billion in the first six months of 2025 compared to the first six months of 2024 primarily driven by growth in our auto loan portfolio.

Deposits:

•Period-end deposits increased by $95.7 billion to $414.0 billion as of June 30, 2025 from December 31, 2024. The Transaction contributed $91.7 billion of deposits as of the Closing Date.

Net Charge-Off and Delinquency Metrics:

•The net charge-off rate decreased by 57 bps to 1.30% in the second quarter of 2025 compared to the second quarter of 2024 and decreased by 50 bps to 1.45% in the first six months of 2025 compared to the first six months of 2024 primarily driven by favorable credit performance in our auto loan portfolio.

•The 30+ day delinquency rate decreased by 133 bps to 5.40% as of June 30, 2025 compared to December 31, 2024.