CAPITAL ONE FINANCIAL CORP

Financial Highlights

We reported net loss of $4.3 billion ($(8.58) per diluted common share) on total net revenue of $12.5 billion and net loss of $2.9 billion ($(6.74) per diluted common share) on total net revenue of $22.5 billion for the second quarter and first six months of 2025. In comparison, we reported net income of $597 million ($1.38 per diluted common share) on total net revenue of $9.5 billion and net income of $1.9 billion ($4.51 per diluted common share) on total net revenue of $18.9 billion for the second quarter and first six months of 2024, respectively.

Our common equity Tier 1 (“CET1”) capital ratio as calculated under the Basel III standardized approach was 14.0% and 13.5% as of June 30, 2025 and December 31, 2024, respectively. See “Capital Management” for additional information.

In the second quarter of 2025, we declared and paid common stock dividends of $388 million and repurchased $150 million of shares of our common stock. During the first six months of 2025, we declared and paid common stock dividends of $624 million and repurchased $300 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 second quarter and first six months of 2025. These highlights are based on a comparison between the results of the second quarter and first six months of 2025 and 2024, except as otherwise noted. The changes in our financial condition and credit performance as of June 30, 2025 compared to December 31, 2024 were primarily driven by the Transaction. We provide a more detailed discussion of our financial performance in the sections following this “Executive Summary.”

Total Company Performance

•Earnings:

Our net loss of $4.3 billion in the second quarter of 2025 and $2.9 billion in the first six months of 2025 compared to net income of $597 million in the second quarter of 2024 and $1.9 billion in the first six months of 2024 was primarily driven by:

◦Higher provision for credit losses primarily driven by the initial allowance for credit losses for non-purchased credit deteriorated (“non-PCD”) loans acquired in the Transaction.

◦Higher non-interest expense primarily driven by impacts from the Transaction, including integration expenses, as well as continued investment in technology.

These drivers were partially offset by:

◦Higher net-interest income primarily driven by higher average loan balances as a result of the Transaction.

◦Higher non-interest income primarily driven by growth in our credit card loan portfolio and higher net discount and interchange fees in Consumer Banking, including the impact from the Global Payment Network, as a result of the Transaction.

•Loans Held for Investment:

◦Loans held for investment increased by $111.5 billion to $439.3 billion as of June 30, 2025 compared to December 31, 2024 primarily driven by the Transaction, which contributed $108.2 billion of loans held for investment as of the Closing Date.

◦Average loans held for investment increased by $63.3 billion to $378.2 billion in the second quarter of 2025 compared to the second quarter of 2024 and increased by $35.7 billion to $350.4 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:

◦Our net charge-off rate decreased by 12 basis points (“bps”) to 3.24% in the second quarter of 2025 compared to the second quarter of 2024 and decreased by 3 bps to 3.31% in the first six months of 2025 compared to the first six months of 2024. The loan portfolio acquired as part of the Transaction increased the net charge-off rate by 18 bps and 8 bps in the second quarter of 2025 and in the first six months of 2025, respectively, given the comparatively higher balances in the credit card loan portfolio, which carry higher net loss rates compared to the auto and commercial loan portfolios. Excluding the impacts of the Transaction, net charge-offs would have decreased 30 bps to 3.06% in the second quarter of 2025 compared to the second quarter of 2024 and decreased by 11 bps to 3.23% in the first six months of 2025 compared to the first six months of 2024 due to favorable credit performance.

◦Our 30+ day delinquency rate decreased by 66 bps to 3.32% as of June 30, 2025 from December 31, 2024, including an 11 bps decrease from the loan portfolio acquired as part of the Transaction.

•Allowance for Credit Losses: Our allowance for credit losses increased by $7.6 billion to $23.9 billion primarily driven by the initial allowance for credit losses acquired in the Transaction. Our allowance coverage ratio increased by 47 bps to 5.43% as of June 30, 2025 compared to December 31, 2024 primarily driven by a higher concentration of Credit Card loans, which carry comparatively higher coverage than our auto and commercial loan portfolios.