CAPITAL ONE FINANCIAL CORP
For the period ended Mar 31, 2026. Filed May 7, 2026.
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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.
Mar 31, 2026 · Filed May 7, 2026
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Credit Card Business Results
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 operating costs, the provision for credit losses and marketing expenses.
Our Credit Card business generated income from continuing operations, net of tax, of$1.9 billion and $1.2 billion in the first quarters of 2026 and 2025, 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
| Three Months Ended March 31, | |||
|---|---|---|---|
| (Dollars in millions, except as noted) | 2026 | 2025 | Change |
| Selected income statement data: | |||
| Net interest income | $9,236 | $5,654 | 63% |
| Non-interest income | 2,153 | 1,511 | 42 |
| Total net revenue(1) | 11,389 | 7,165 | 59 |
| Provision for credit losses | 3,411 | 1,926 | 77 |
| Non-interest expense | 5,501 | 3,638 | 51 |
| Income from continuing operations before income taxes | 2,477 | 1,601 | 55 |
| Income tax provision | 608 | 382 | 59 |
| Income from continuing operations, net of tax | $1,869 | $1,219 | 53 |
| Selected performance metrics: | |||
| Average loans held for investment: | |||
| Domestic credit card | $254,036 | $149,639 | 70 |
| Personal loans | 9,310 | N/A | ** |
| International card businesses | 7,628 | 6,768 | 13 |
| Total credit card | $270,974 | $156,407 | 73 |
| Average yield on loans(2) | 17.17% | 18.54% | (137)bps |
| Total net revenue margin(3) | 16.81 | 18.32 | (151) |
| Net charge-offs | $3,419 | $2,399 | 43% |
| Net charge-off rate | 5.05% | 6.14% | (109)bps |
| Purchase volume | $220,540 | $157,948 | 40% |
| (Dollars in millions, except as noted) | March 31, 2026 | December 31, 2025 | Change |
| Selected period-end data: | |||
| Loans held for investment: | |||
| Domestic credit card | $254,028 | $262,403 | (3)% |
| Personal loans | 9,070 | 9,499 | (5) |
| International card businesses | 7,460 | 7,668 | (3) |
| Total credit card | $270,558 | $279,570 | (3) |
| 30+ day performing delinquency rate | 3.66% | 3.93% | (27)bps |
| 30+ day delinquency rate | 3.67 | 3.94 | (27) |
| Nonperforming loan rate(4) | 0.01 | 0.01 | — |
| Allowance for credit losses | $20,049 | $20,066 | — |
| Allowance coverage ratio | 7.41% | 7.18% | 23bps |
(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 reducedby$980 million and $705 million in the first quarters of 2026 and 2025, 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.
| 20 | Capital One Financial Corporation (COF) |
(3)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average loans during the period.
(4)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 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 increased by $3.6 billion to $9.2 billion in the first quarter of 2026 primarily driven by higher average loan balances, largely due to the addition of Discover.
Non-Interest Income: Non-interest income increased by $642 million to $2.2 billion in the first quarter of 2026 primarily driven by growth in our portfolio, largely due to the addition of Discover.
Provision for Credit Losses: Provision for credit losses increased by $1.5 billion to $3.4 billion in the first quarter of 2026 primarily driven by higher net charge-offs, largely due to the addition of Discover.
Non-Interest Expense: Non-interest expense increased by $1.9 billion to $5.5 billion in the first quarter of 2026 primarily driven by the addition of Discover and amortization of the intangibles recognized in the Transaction.
Period-end loans held for investment decreased by $9.0 billion to $270.6 billion as of March 31, 2026 from December 31, 2025 primarily driven by seasonal paydowns.
Average loans held for investment increased by $114.6 billion to $271.0 billion in the first quarter of 2026 compared to the first quarter of 2025 primarily driven by the addition of Discover.
Net Charge-Off and Delinquency Metrics:
The net charge-off rate decreased by 109 bps to 5.05% in the first quarter of 2026 compared to the first quarter of 2025 primarily due to favorable observed credit performance and the addition of Discover.
The 30+ day delinquency rate decreased by 27 bps to 3.67% as of March 31, 2026 from December 31, 2025.
| 21 | Capital One Financial Corporation (COF) |
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