CAPITAL ONE FINANCIAL CORP

Credit Card Business

The primary sources of revenue for our Credit Card business are net interest income, net discount and interchange income and fees collected from customers. Expenses primarily consist of the provision for credit losses, operating costs and marketing expenses.

Our Credit Card business generated loss from continuing operations, net of tax, of $4.9 billion and $3.7 billion in the second quarter and first six months of 2025, respectively, compared to income from continuing operations, net of tax, of $91 million and $1.1 billion in the second quarter and first six months of 2024, respectively.

Table 9 summarizes the financial results of our Credit Card business and displays selected key metrics for the periods indicated.

Table 9: Credit Card Business Results

(1)We recognize finance charges and fee income on open-ended loans in accordance with the contractual provisions of the credit arrangements and charge off any uncollectible amounts. Total net revenue was reduced by $785 million and $1.5 billion in the second quarter and first six months of 2025,

respectively, compared to $649 million and $1.3 billion in the second quarter and first six months of 2024, respectively, for finance charges and fees charged off as uncollectible.

(2)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.

(3)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average loans during the period.

(4)Charge-offs exclude $19.4 billion of loans charged off by Discover, with expected recoveries of $3.3 billion included as a benefit to the allowance for credit losses.

(5)Within our credit card loan portfolio, certain loans in our international card and personal loan businesses are classified as nonperforming. See “Nonperforming Loans and Other Nonperforming Assets” for additional information.

Key factors affecting the results of our Credit Card 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 $2.0 billion to $7.3 billion in the second quarter of 2025 and increased by $2.4 billion to $12.9 billion in the first six months of 2025 primarily driven by higher average loan balances as a result of the Transaction.

•Non-Interest Income: Non-interest income increased by $296 million to $1.8 billion in the second quarter of 2025 and increased by $331 million to $3.3 billion in the first six months of 2025 primarily due to growth in our loan portfolio as a result of the Transaction.

•Provision for Credit Losses: Provision for credit losses increased by $7.6 billion to $11.1 billion in the second quarter of 2025 and increased by $7.2 billion to $13.0 billion in the first six months of 2025 primarily driven by the initial allowance for credit losses build for non-PCD loans acquired in the Transaction.

•Non-Interest Expense: Non-interest expense increased by $1.3 billion to $4.4 billion in the second quarter of 2025 and increased by $1.7 billion to $8.1 billion in the first six months of 2025 primarily driven by the impacts of the Transaction as well as continued investment in technology and increased marketing spend.

•Period-end loans held for investment increased by $107.2 billion to $269.7 billion as of June 30, 2025 from December 31, 2024. The Transaction contributed $108.2 billion in loans held for investment as of the Closing Date.

•Average loans held for investment increased by $59.2 billion to $209.7 billion in the second quarter of 2025 compared to the second quarter of 2024 and increased by $33.1 billion to $183.2 billion in the first six months of 2025 compared to the first six months of 2024 primarily driven by the Transaction.

Net Charge-Off and Delinquency Metrics:

•The net charge-off rate decreased by 80 bps to 5.20% in the second quarter of 2025 compared to the second quarter of 2024 and decreased by 35 bps to 5.60% in the first six months of 2025 compared to the first six months of 2024. The loan portfolio acquired as part of the Transaction decreased the net charge-off rate by 29 bps and 21 bps in the second quarter of 2025 and the first six months of 2025, respectively, driven by lower loss rates.

•The 30+ day delinquency rate decreased by 98 bps to 3.56% as of June 30, 2025 from December 31, 2024, including a 39 bps decrease from the loan portfolio acquired as part of the Transaction.