CAPITAL ONE FINANCIAL CORP

Commercial Banking Business

The primary sources of revenue for our Commercial Banking business are net interest income from loans and deposits and non-interest income earned from products and services provided to our clients such as capital markets, advisory services and treasury management. Because our Commercial Banking business has loans and investments that generate tax-exempt income, tax credits or other tax benefits, we present the revenues on a taxable-equivalent basis. Expenses primarily consist of operating costs and the provision for credit losses.

Our Commercial Banking business generated income from continuing operations, net of tax, of$206 million and $195 millionin the first quarters of 2026 and 2025, respectively.

Table 11 summarizes the financial results of our Commercial Banking business and displays selected key metrics for the periods indicated.

Table 11: Commercial Banking Business Results

(1)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 a blended federal and state statutory tax rate, with offsetting reductions to the Other category.

(2)The provision for losses on unfunded lending commitments is included in the provision for credit losses in our consolidated statements of income and the related reserve is included in other liabilities on our consolidated balance sheets. Our reserve for unfunded lending commitments totaled$133 million and $142 million as of March 31, 2026 and December 31, 2025, respectively.

(3)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.

(4)Nonperforming assets consist of nonperforming loans and other foreclosed 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 other foreclosed assets.

Key factors affecting the results of our Commercial Banking business for the first quarter of 2026 compared to the first quarter of 2025, and changes in financial condition and credit performance between March 31, 2026 and December 31, 2025 include the following:

•Net Interest Income: Net interest income remained substantially flat at $581 million in the first quarter of 2026 compared to the first quarter of 2025.

•Non-Interest Income: Non-interest income increased $16 million to $328 million in the first quarter of 2026 primarily driven by our tax advantaged investments business.

•Provision for Credit Losses: Provision for credit losses remained substantially flat at $138 million in the first quarter of 2026 compared to the first quarter of 2025.

•Non-Interest Expense: Non-interest expense remained substantially flat at $498 million in the first quarter of 2026 compared to the first quarter of 2025.

•Period-end loans held for investment increased by $1.1 billion to $90.3 billion as of March 31, 2026 from December 31, 2025 primarily due to originations outpacing customer payments.

•Average loans held for investment increased by $2.1 billion to $89.6 billion in the first quarter of 2026 compared to the first quarter of 2025 primarily due to originations outpacing customer payments.

Deposits:

•Period-end deposits remained substantially flat at $31.0 billion as of March 31, 2026 compared to December 31, 2025.

Net Charge-Off and Nonperforming Metrics:

•The net charge-off rate increased by 18 bps to 0.29% in the first quarter of 2026 compared to the first quarter of 2025.

•The nonperforming loan rate increased by 4 bps to 1.40% as of March 31, 2026 compared to December 31, 2025.