CAPITAL ONE FINANCIAL CORP
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
View on SEC.govAbout this filing
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.
Jun 30, 2026 · Filed Jul 28, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Commercial Banking Business Results
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$239 million and $445 million in the second quarter and first six months of 2026, respectively, and $280 million and $475 million in the second quarter and first six months of 2025, respectively.
| 26 | Capital One Financial Corporation (COF) |
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
| Three Months Ended June 30, · Six Months Ended June 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in millions, except as noted) · 2026 · 2025 · Change · 2026 · 2025 · Change | ||||||||||
| Selected income statement data: | ||||||||||
| Net interest income | $585 | $602 | (3)% | $1,166 | $1,174 | (1)% | ||||
| Non-interest income | 265 | 335 | (21) | 593 | 647 | (8) | ||||
| Total net revenue(1) | 850 | 937 | (9) | 1,759 | 1,821 | (3) | ||||
| Provision for credit losses(2) | 71 | 81 | (12) | 209 | 223 | (6) | ||||
| Non-interest expense | 462 | 489 | (6) | 960 | 975 | (2) | ||||
| Income from continuing operations before income taxes | 317 | 367 | (14) | 590 | 623 | (5) | ||||
| Income tax provision | 78 | 87 | (10) | 145 | 148 | (2) | ||||
| Income from continuing operations, net of tax | $239 | $280 | (15)% | $445 | $475 | (6)% | ||||
| Selected performance metrics: | ||||||||||
| Average loans held for investment: | ||||||||||
| Commercial and multifamily real estate | $33,978 | $32,522 | 4% | $33,759 | $32,129 | 5% | ||||
| Commercial and industrial | 56,921 | 55,847 | 2 | 56,474 | 55,806 | 1 | ||||
| Total commercial banking | $90,899 | $88,369 | 3 | $90,233 | $87,935 | 3 | ||||
| Average yield on loans held for investment(1)(3) | 5.75% | 6.40% | (65) | bps | 5.71% | 6.35% | (64) | bps | ||
| Average deposits | $31,248 | $30,444 | 3% | $31,193 | $31,045 | —% | ||||
| Average deposits interest rate | 1.81% | 2.06% | (25) | bps | 1.82% | 2.09% | (27) | bps | ||
| Net charge-offs | $121 | $72 | 68% | $185 | $96 | 93% | ||||
| Net charge-off rate | 0.53% | 0.33% | 20 | bps | 0.41% | 0.22% | 19 | bps | ||
| (Dollars in millions, except as noted) | June 30, 2026 | December 31, 2025 | Change | |||||||
| Selected period-end data: | ||||||||||
| Loans held for investment: | ||||||||||
| Commercial and multifamily real estate | $34,290 | $33,618 | 2% | |||||||
| Commercial and industrial | 57,003 | 55,644 | 2 | |||||||
| Total commercial banking | $91,293 | $89,262 | 2 | |||||||
| Nonperforming loan rate | 1.32% | 1.36% | (4) | bps | ||||||
| Nonperforming asset rate(4) | 1.39 | 1.39 | — | |||||||
| Allowance for credit losses(2) | $1,475 | $1,451 | 2% | |||||||
| Allowance coverage ratio | 1.62% | 1.63% | (1) | bps | ||||||
| Deposits | $30,841 | $31,250 | (1)% | |||||||
| Loans serviced for others | 52,221 | 52,240 | — | |||||||
(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$142 million as of both June 30, 2026 and December 31, 2025.
(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.
| 27 | Capital One Financial Corporation (COF) |
Key factors affecting the results of our Commercial Banking business forthe second quarter and first six months of 2026 compared to the second quarter and first six months of 2025, and changes in financial condition and credit performance between June 30, 2026 and December 31, 2025 include the following:
Net Interest Income: Net interest income remained substantially flat at $585 million in the second quarter of 2026 compared to the second quarter of 2025 and at $1.2 billion in the first six months of 2026 compared to the first six months of 2025.
Non-Interest Income: Non-interest income decreased by $70 million to $265 million in the second quarter of 2026 and decreased by $54 million to $593 million in the first six months of 2026 primarily driven by the reclassification of the legacy corporate card product to Domestic Card and lower revenue earned on certain capital markets services.
Provision for Credit Losses: Provision for credit losses remained substantially flat at $71 million in the second quarter of 2026 compared to the second quarter of 2025 and at $209 million in the first six months of 2026 compared to the first six months of 2025.
Non-Interest Expense: Non-interest expense decreased by $27 million to $462 million in the second quarter of 2026 and decreased by $15 million to $960 million in the first six months of 2026 primarily driven by the reclassification of the legacy corporate card product to Domestic Card.
Period-end loans held for investment increased by $2.0 billion to $91.3 billion as of June 30, 2026 from December 31, 2025 primarily due to growth across our loan portfolio.
Average loans held for investment increased by $2.5 billion to $90.9 billion in the second quarter of 2026 compared to the second quarter of 2025 and increased by $2.3 billion to $90.2 billion in the first six months of 2026 compared to the first six months of 2025 primarily due to growth across our loan portfolio.
Deposits:
Period-end deposits remained substantially flat at $30.8 billion as of June 30, 2026 from December 31, 2025.
Net Charge-Off and Nonperforming Metrics:
The net charge-off rate increased by 20 bps to 0.53% in the second quarter of 2026 and increased by 19 bps to 0.41% in the first six months of 2026.
The nonperforming loan rate decreased by 4 bps to 1.32% as of June 30, 2026 compared to December 31, 2025.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.