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
Consumer Banking Business Results
Consumer Banking Business
The primary sources of revenue for our Consumer Banking business are net interest income from loans and deposits as well as service charges and customer-related fees, including revenue from processing transactions on the Global Payment Network. Expenses primarily consist of operating costs, the provision for credit losses and marketing expenses.
Our Consumer Banking business generated income from continuing operations, net of tax, of$486 million and$784 million in the second quarter and first six months of 2026, respectively, and $450 million and $636 million in the second quarter and first six months of 2025, respectively.
Table 10 summarizes the financial results of our Consumer Banking business and displays selected key metrics for the periods indicated.
Table 10: Consumer 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 | $2,431 | $2,162 | 12% | $4,660 | $4,105 | 14% |
| Non-interest income | 778 | 394 | 97 | 1,461 | 577 | 153 |
| Total net revenue | 3,209 | 2,556 | 26 | 6,121 | 4,682 | 31 |
| Provision for credit losses | 444 | 252 | 76 | 963 | 553 | 74 |
| Non-interest expense | 2,121 | 1,713 | 24 | 4,119 | 3,294 | 25 |
| Income from continuing operations before income taxes | 644 | 591 | 9 | 1,039 | 835 | 24 |
| Income tax provision | 158 | 141 | 12 | 255 | 199 | 28 |
| Income from continuing operations, net of tax | $486 | $450 | 8% | $784 | $636 | 23% |
| Selected performance metrics: | ||||||
| Average loans held for investment: | ||||||
| Auto | $87,419 | $78,875 | 11% | $85,979 | $78,056 | 10% |
| Retail banking | 1,164 | 1,220 | (5) | 1,171 | 1,236 | (5) |
| Total consumer banking | $88,583 | $80,095 | 11 | $87,150 | $79,292 | 10 |
| Average yield on loans held for investment(1) | 9.57% | 9.30% | 27bps | 9.50% | 9.17% | 33bps |
| Average deposits | $435,890 | $365,359 | 19% | $432,161 | $342,780 | 26% |
| Average deposits interest rate | 2.76% | 3.02% | (26)bps | 2.80% | 3.01% | (21)bps |
| Net charge-offs | $329 | $260 | 27% | $693 | $573 | 21% |
| Net charge-off rate | 1.48% | 1.30% | 18bps | 1.59% | 1.45% | 14bps |
| Global Payment Network volume | $189,612 | $74,014 | 156% | $363,944 | $74,014 | ** |
| Auto loan originations | 12,916 | 10,861 | 19 | 24,046 | 20,071 | 20% |
| 24 | Capital One Financial Corporation (COF) |
| (Dollars in millions, except as noted) | June 30, 2026 | December 31, 2025 | Change |
|---|---|---|---|
| Selected period-end data: | |||
| Loans held for investment: | |||
| Auto | $89,311 | $83,600 | 7% |
| Retail banking | 1,156 | 1,190 | (3) |
| Total consumer banking | $90,467 | $84,790 | 7 |
| 30+ day performing delinquency rate | 4.28% | 5.17% | (89)bps |
| 30+ day delinquency rate | 4.76 | 5.73 | (97) |
| Nonperforming loan rate | 0.62 | 0.69 | (7) |
| Nonperforming asset rate(2) | 0.72 | 0.79 | (7) |
| Allowance for credit losses | $2,162 | $1,892 | 14% |
| Allowance coverage ratio | 2.39% | 2.23% | 16bps |
| Deposits | $435,221 | $423,932 | 3% |
(1)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.
(2)Nonperforming assets primarily consist of nonperforming loans and repossessed 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 repossessed assets.
Key factors affecting the results of our Consumer 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 increased by $269 million to $2.4 billion in the second quarter of 2026 and increased by $555 million to $4.7 billion in the first six months of 2026 primarily driven by higher deposits due to the addition of Discover and higher average loan balances in our auto business, partially offset by lower margins in our retail banking business.
Non-Interest Income: Non-interest income increased by $384 million to $778 million in the second quarter of 2026 and increased by $884 million to $1.5 billion in the first six months of 2026 primarily due to the addition of the Global Payment Network and impacts from the reissuance of legacy Capital One customer debit cards onto the Global Payment Network.
Provision for Credit Losses: Provision for credit losses increased by $192 million to $444 million in the second quarter of 2026 and increased by $410 million to $963 million in the first six months of 2026 primarily driven by allowance builds in our auto loan portfolio compared to a release in the first and second quarters of 2025.
Non-Interest Expense: Non-interest expense increased by $408 million to $2.1 billion in the second quarter of 2026 and increased by $825 million to $4.1 billion in the first six months of 2026 primarily driven by the addition of Discover, higher marketing and investment in technology, partially offset by the absence of legal reserve builds recorded in the first six months of 2025.
Period-end loans held for investment increased by $5.7 billion to $90.5 billion as of June 30, 2026 from December 31, 2025 primarily driven by growth in our auto loan portfolio.
Average loans held for investment increased by $8.5 billion to $88.6 billion in the second quarter of 2026 compared to the second quarter of 2025 and increased by $7.9 billion to $87.2 billion in the first six months of 2026 compared to the first six months of 2025 primarily driven by growth in our auto loan portfolio.
Deposits:
Period-end deposits increased by $11.3 billion to $435.2 billion as of June 30, 2026 from December 31, 2025 primarily driven by continued growth from our national banking strategy.
| 25 | Capital One Financial Corporation (COF) |
Net Charge-Off and Delinquency Metrics:
The net charge-off rate increased by 18 bps to 1.48% in the second quarter of 2026 compared to the second quarter of 2025 and increased by 14 bps to 1.59% in the first six months of 2026 compared to the first six months of 2025.
The 30+ day delinquency rate decreased by 97 bps to 4.76% 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.