CAPITAL ONE FINANCIAL CORP

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$2.4 billion and$4.3 billion in the second quarter and first six months of 2026, respectively, compared to loss from continuing operations, net of tax, of $4.9 billion and $3.7 billion in the second quarter and first six months of 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

(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$898 million and $1.9 billion in the second quarter and first six months of 2026

respectively, compared to $785 million and $1.5 billion in the second quarter and first six months of 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.

(3)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average loans during the period.

(4)Charge-offs exclude $19.4 billion of Discover loans acquired in the second quarter of 2025 that were fully charged-off, with expected recoveries of $3.3 billion included as a benefit to the allowance for credit losses.

(5)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 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 $2.0 billion to $9.3 billion in the second quarter of 2026 and increased by $5.5 billion to $18.5 billion in the first six months of 2026 primarily driven by higher average loan balances, largely due to the addition of Discover.

•Non-Interest Income: Non-interest income increased by $711 million to $2.5 billion in the second quarter of 2026 and increased by $1.4 billion to $4.7 billion in the first six months of 2026 primarily driven by growth in our portfolio, including the addition of Discover.

•Provision for Credit Losses: Provision for credit losses decreased by $8.6 billion to $2.5 billion in the second quarter of 2026 and decreased by $7.1 billion to $5.9 billion in the first six months of 2026 primarily driven by the absence of the initial allowance for credit losses for loans acquired in the Discover acquisition.

•Non-Interest Expense: Non-interest expense increased by $1.7 billion to $6.1 billion in the second quarter of 2026 and increased by $3.5 billion to $11.6 billion in the first six months of 2026 primarily driven by growth in our portfolio, including the addition of Discover, and higher acquisition amortization expenses.

•Period-end loans held for investment decreased by $4.2 billion to $275.4 billion as of June 30, 2026 from December 31, 2025 primarily driven by seasonal paydowns, partially offset by the Brex acquisition.

•Average loans held for investment increased by $61.5 billion to $271.2 billion in the second quarter of 2026 compared to the second quarter of 2025 and increased by $87.9 billion to $271.1 billion in the first six months of 2026 compared to the first six months of 2025 primarily driven by the addition of Discover.

Net Charge-Off and Delinquency Metrics:

•The net charge-off rate decreased by 49 bps to 4.71% in the second quarter of 2026 compared to the second quarter of 2025 and decreased by 72 bps to 4.88% in the first six months of 2026 compared to the first six months of 2025 primarily due to favorable observed credit performance.

•The 30+ day delinquency rate decreased by 57 bps to 3.37% as of June 30, 2026 from December 31, 2025.