CAPITAL ONE FINANCIAL CORP
For the period ended Sep 30, 2025. Filed Nov 3, 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.
Sep 30, 2025 · Filed Nov 3, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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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 third quarter and first nine 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 September 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 | $269,175 | $12,109 | 17.99% | $154,160 | $7,578 | 19.66% | ||
| Consumer banking | 82,295 | 1,958 | 9.52 | 76,182 | 1,692 | 8.88 | ||
| Commercial banking(3) | 88,904 | 1,426 | 6.42 | 88,373 | 1,601 | 7.24 | ||
| Other(4) | — | (264) | ** | — | (324) | ** | ||
| Total loans, including loans held for sale | 440,374 | 15,229 | 13.83 | 318,715 | 10,547 | 13.24 | ||
| Investment securities | 96,186 | 823 | 3.42 | 90,644 | 733 | 3.24 | ||
| Cash equivalents and other interest-earning assets | 56,687 | 711 | 5.02 | 45,125 | 580 | 5.14 | ||
| Total interest-earning assets | 593,247 | 16,763 | 11.30 | 454,484 | 11,860 | 10.44 | ||
| Cash and due from banks | 5,062 | 3,815 | ||||||
| Allowance for credit losses | (23,857) | (16,654) | ||||||
| Premises and equipment, net | 5,200 | 4,414 | ||||||
| Other assets | 70,035 | 35,160 | ||||||
| Assets of discontinued operations | 8,171 | — | ||||||
| Total assets | $657,858 | $481,219 | ||||||
| Liabilities and stockholders’ equity: | ||||||||
| Interest-bearing liabilities: | ||||||||
| Interest-bearing deposits | $439,527 | $3,597 | 3.27% | $324,509 | $2,945 | 3.63% | ||
| Securitized debt obligations | 12,919 | 165 | 5.11 | 15,833 | 234 | 5.93 | ||
| Senior and subordinated notes | 36,272 | 582 | 6.41 | 32,041 | 596 | 7.43 | ||
| Other borrowings and interest-bearing liabilities(5) | 3,120 | 15 | 2.04 | 2,389 | 9 | 1.50 | ||
| Total interest-bearing liabilities | 491,838 | 4,359 | 3.55 | 374,772 | 3,784 | 4.04 | ||
| Non-interest-bearing deposits | 27,753 | 26,616 | ||||||
| Other liabilities | 25,414 | 18,542 | ||||||
| Liabilities of discontinued operations | 34 | — | ||||||
| Total liabilities | 545,039 | 419,930 | ||||||
| Stockholders’ equity | 112,819 | 61,289 | ||||||
| Total liabilities and stockholders’ equity | $657,858 | $481,219 | ||||||
| Net interest income/spread | $12,404 | 7.75 | $8,076 | 6.40 | ||||
| Impact of non-interest-bearing funding | 0.61 | 0.71 | ||||||
| Net interest margin | 8.36% | 7.11% | ||||||
| 12 | Capital One Financial Corporation (COF) |
| Nine Months Ended September 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 | $212,172 | $28,764 | 18.08% | $151,700 | $21,733 | 19.10% | ||
| Consumer banking | 80,304 | 5,592 | 9.28 | 75,555 | 4,867 | 8.59 | ||
| Commercial banking(3) | 88,516 | 4,229 | 6.37 | 89,452 | 4,829 | 7.20 | ||
| Other(4) | — | (750) | ** | — | (969) | ** | ||
| Total loans, including loans held for sale | 380,992 | 37,835 | 13.24 | 316,707 | 30,460 | 12.82 | ||
| Investment securities | 93,970 | 2,377 | 3.37 | 89,580 | 2,120 | 3.16 | ||
| Cash equivalents and other interest-earning assets | 52,499 | 1,797 | 4.56 | 44,791 | 1,737 | 5.17 | ||
| Total interest-earning assets | 527,461 | 42,009 | 10.62 | 451,078 | 34,317 | 10.14 | ||
| Cash and due from banks | 4,612 | 3,775 | ||||||
| Allowance for credit losses | (20,024) | (15,783) | ||||||
| Premises and equipment, net | 4,946 | 4,396 | ||||||
| Other assets | 53,545 | 34,350 | ||||||
| Assets of discontinued operations | 4,062 | — | ||||||
| Total assets | $574,602 | $477,816 | ||||||
| Liabilities and stockholders’ equity: | ||||||||
| Interest-bearing liabilities: | ||||||||
| Interest-bearing deposits | $388,541 | $9,432 | 3.24% | $321,856 | $8,631 | 3.58% | ||
| Securitized debt obligations | 13,228 | 505 | 5.10 | 17,036 | 753 | 5.90 | ||
| Senior and subordinated notes | 33,180 | 1,622 | 6.52 | 31,744 | 1,793 | 7.53 | ||
| Other borrowings and interest-bearing liabilities(5) | 2,771 | 38 | 1.84 | 2,422 | 30 | 1.67 | ||
| Total interest-bearing liabilities | 437,720 | 11,597 | 3.53 | 373,058 | 11,207 | 4.01 | ||
| Non-interest-bearing deposits | 27,145 | 26,909 | ||||||
| Other liabilities | 22,213 | 18,710 | ||||||
| Liabilities of discontinued operations | 13 | — | ||||||
| Total liabilities | 487,091 | 418,677 | ||||||
| Stockholders’ equity | 87,511 | 59,139 | ||||||
| Total liabilities and stockholders’ equity | $574,602 | $477,816 | ||||||
| Net interest income/spread | $30,412 | 7.09 | $23,110 | 6.14 | ||||
| Impact of non-interest-bearing funding | 0.60 | 0.69 | ||||||
| Net interest margin | 7.69% | 6.83% | ||||||
(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 $745 million and $1.9 billion in the third quarter and first nine months of 2025, respectively, and $626 million and $1.7 billion in the third quarter and first nine 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 $19 million and $59 million in the third quarter and first nine months of 2025, respectively, and $20 million and $59 million in the third quarter and first nine 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 $2.1 billion in both the third quarter and first nine months of 2025, and $2.0 billion in both the third quarter and first nine months of 2024. Related interest expense was $8 million and $23 million for the third quarter and first nine months of 2025, respectively, and $7 million and $23 million for the third quarter and first nine months of 2024, respectively.
| 13 | Capital One Financial Corporation (COF) |
Net interest income increased by $4.3 billion to $12.4 billion in the third quarter of 2025 compared to the third quarter of 2024 and increased by $7.3 billion to $30.4 billion in the first nine months of 2025 compared to the first nine months of 2024 primarily driven by higher loan balances, including the impacts of the Transaction, and lower rates paid on deposits.
Net interest margin increased by 125 bps to 8.36% in the third quarter of 2025 compared to the third quarter of 2024 and increased by 86 bps to 7.69% in the first nine months of 2025 compared to the first nine months of 2024 primarily driven by higher loan balances, including the impacts of the Transaction, and lower rates paid on deposits.
Our total company cumulative interest-bearing deposit beta increased to 23% as of September 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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