Equibles

8-K

CAPITAL ONE FINANCIAL CORP (COF)

8-K 2025-10-21 For: 2025-10-20
View Original
Added on April 05, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 8-K

____________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

October 20, 2025

Date of Report (Date of earliest event reported)

____________________________________

CAPITAL ONE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

____________________________________

Delaware 001-13300 54-1719854
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
1680 Capital One Drive,
McLean, Virginia 22102
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (703) 720-1000

(Not applicable)

(Former name or former address, if changed since last report)

____________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered
Common Stock (par value $.01 per share) COF New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I COF PRI New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series J COF PRJ New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K COF PRK New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series L COF PRL New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N COF PRN New York Stock Exchange
1.650% Senior Notes Due 2029 COF29 New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 21, 2025, Capital One Financial Corporation (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2025. Copies of the Company’s press release and financial supplement are attached and furnished herewith as Exhibits 99.1 and 99.2 to this Form 8-K and are incorporated herein by reference.

Note: Information in this report (including Exhibits 99.1 and 99.2) furnished pursuant to Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section.

Item 8.01 Other Events.

On October 20, 2025, the Company authorized the repurchase of up to $16 billion of shares of its common stock. This new authorization replaces the Company’s prior authorization to repurchase its common stock approved by the Board on April 1, 2022. Repurchases under the new share repurchase program are authorized to begin on October 21, 2025.

The timing and exact amount of any common stock repurchases will depend on various factors, including market conditions, opportunities for growth and the Company’s capital position and amount of retained earnings, as well as regulatory considerations. The Company’s share repurchase program does not include specific price targets or number of shares, may be executed through open market purchases or privately negotiated transactions, including utilizing Rule 10b5-1 plans, and may be modified, suspended or terminated at any time.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
99.1 Press Release, dated October 21, 2025 - Third Quarter 2025
99.2 Financial Supplement - Third Quarter 2025
104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

Earnings Conference Call Webcast Information.

The Company will hold an earnings conference call on October 21, 2025 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the Company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. A replay of the webcast will be archived on the Company’s website through November 4, 2025 at 5:00 PM Eastern Time.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

CAPITAL ONE FINANCIAL CORPORATION
Date: October 21, 2025 By: /s/ TIMOTHY P. GOLDEN
Timothy P. Golden
SVP, Chief Accounting Officer

3

Document

Exhibit 99.1

News Release

earningsslidesvfinal1b58a.jpg

Contacts:
Investor Relations Media Relations
Jeff Norris Danielle Dietz Sie Soheili
jeff.norris@capitalone.com danielle.dietz@capitalone.com sie.soheili@capitalone.com

FOR IMMEDIATE RELEASE: October 21, 2025

Capital One Reports Third Quarter 2025 Net Income of $3.2 billion, or $4.83 per share

Net of adjusting items, Third Quarter 2025 Net Income of $5.95 per share(1)

McLean, Va. (October 21, 2025) – Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2025 of $3.2 billion, or $4.83 per diluted common share, compared with net loss of $4.3 billion, or $(8.58) per diluted common share in the second quarter of 2025, and with net income of $1.8 billion, or $4.41 per diluted common share in the third quarter of 2024. Adjusted net income(1) for the third quarter of 2025 was $5.95 per diluted common share.

"In the third quarter, our adjusted earnings, top-line growth, credit results, and capital generation continued to be strong," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "The Discover integration continues to go well and we are well positioned to capitalize on the opportunities that lie in front of us."

The quarter included the following adjusting items:

(Dollars in millions, except per share data) Pre-Tax<br>Impact After-Tax Diluted EPS<br>Impact
Discover integration expenses $ 348 $ 0.41
Discover intangible amortization expense $ 498 $ 0.59
Discover loan and deposit fair value mark amortization $ 105 $ 0.12

Capital One Third Quarter 2025 Earnings

Page 2

All comparisons below are for the third quarter of 2025 compared with the second quarter of 2025 unless otherwise noted.

Third Quarter 2025 Income Statement Summary:

•Total net revenue increased 23 percent to $15.4 billion.

•Total non-interest expense increased 18 percent to $8.3 billion:

◦4 percent increase in marketing.

◦22 percent increase in operating expenses.

•Pre-provision earnings(2) increased 29 percent to $7.1 billion.

•Provision for credit losses decreased $8.7 billion to $2.7 billion:

◦Net charge-offs of $3.5 billion.

◦$760 million loan reserve release.

•Net interest margin of 8.36 percent, an increase of 74 basis points.

◦Adjusted net interest margin(1) of 8.43 percent.

•Efficiency ratio of 53.80 percent.

◦Adjusted efficiency ratio(1) of 47.96 percent.

•Operating efficiency ratio of 44.66 percent.

◦Adjusted operating efficiency ratio(1) of 38.89 percent.

Third Quarter 2025 Balance Sheet Summary:

•Common equity Tier 1 capital ratio(3) under Basel III Standardized Approach of 14.4 percent at September 30, 2025.

•Period-end loans held for investment in the quarter increased $3.9 billion, or 1 percent, to $443.2 billion.

◦Credit Card period-end loans increased $1.3 billion, or less than 1 percent, to $271.0 billion.

•Domestic Card period-end loans increased $1.5 billion, or 1 percent, to $254.0 billion.

◦Consumer Banking period-end loans increased $2.0 billion, or 2 percent, to $83.2 billion.

•Auto period-end loans increased $2.0 billion, or 3 percent, to $82.0 billion.

◦Commercial Banking period-end loans increased $537 million, or 1 percent, to $88.9 billion.

•Average loans held for investment in the quarter increased $61.7 billion, or 16 percent, to $439.9 billion.

◦Credit Card average loans increased $59.5 billion, or 28 percent, to $269.2 billion.

•Domestic Card average loans increased $54.3 billion, or 27 percent, to $252.1 billion.

◦Consumer Banking average loans increased $2.2 billion, or 3 percent, to $82.3 billion.

•Auto average loans increased $2.2 billion, or 3 percent, to $81.1 billion.

◦Commercial Banking average loans increased $20 million, or less than 1 percent, to $88.4 billion.

•Period-end total deposits increased $675 million, or less than 1 percent, to $468.8 billion, while average deposits increased $52.7 billion, or 13 percent, to $467.3 billion.

•Interest-bearing deposits rate paid increased 5 basis points to 3.27 percent.

Capital One Third Quarter 2025 Earnings

Page 3

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on October 21, 2025 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company’s website through November 4, 2025 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Forward-looking statements often use words such as “will,” “anticipate,” “target,” “expect,” “think,” “estimate,” “intend,” “plan,” “goal,” “believe,” “forecast,” “outlook” or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under “Part I—Item 1A. Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the “SEC”) and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $468.8 billion in deposits and $661.9 billion in total assets as of September 30, 2025. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

(1)    This is a non-GAAP measure. We believe non-GAAP measures help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on October 21, 2025 with the SEC, “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.

(2)    Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on Form 8-K on October 21, 2025 with the SEC, “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.

(3)    Regulatory capital metrics as of September 30, 2025 are preliminary and therefore subject to change.

Document

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement(1)(2)(3)

Third Quarter 2025

Table of Contents

Capital One Financial Corporation Consolidated Results Page
Table 1: Financial Summary—Consolidated 1
Table 2: Selected Metrics—Consolidated 3
Table 3: Consolidated Statements of Income 4
Table 4: Consolidated Balance Sheets 6
Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4) 8
Table 6: Average Balances, Net Interest Income and Net Interest Margin 9
Table 7: Loan Information and Performance Statistics 10
Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity 13
Business Segment Results
Table 9: Financial Summary—Business Segment Results 14
Table 10: Financial & Statistical Summary—Credit Card Business 15
Table 11: Financial & Statistical Summary—Consumer Banking Business 17
Table 12: Financial & Statistical Summary—Commercial Banking Business 18
Table 13: Financial & Statistical Summary—Other and Total 19
Other
Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13) 20
Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures 21

__________

(1)The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended September 30, 2025 once it is filed with the Securities and Exchange Commission.

(2)This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation of any non-GAAP financial measures.

(3)On May 18, 2025, we completed the Discover acquisition in an all-stock transaction as outlined in the merger agreement dated February 19, 2024. Discover results and statistics reported herein are from May 18, 2025 to September 30, 2025.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated

2025 Q3 Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted) 2025 2025 2025 2024 2024 2025 2024 2025 vs.
Q3 Q2 Q1 Q4 Q3 Q2 Q3 2025 2024 2024
Income Statement
Net interest income $ 12,404 $ 9,995 $ 8,013 $ 8,098 $ 8,076 24 % 54 % $ 30,412 $ 23,110 32 %
Non-interest income 2,955 2,497 1,987 2,092 1,938 18 52 7,439 5,812 28
Total net revenue(1) 15,359 12,492 10,000 10,190 10,014 23 53 37,851 28,922 31
Provision for credit losses 2,714 11,430 2,369 2,642 2,482 (76) 9 16,513 9,074 82
Non-interest expense:
Marketing 1,403 1,345 1,202 1,375 1,113 4 26 3,950 3,187 24
Operating expense 6,860 5,646 4,700 4,714 4,201 22 63 17,206 12,210 41
Total non-interest expense 8,263 6,991 5,902 6,089 5,314 18 55 21,156 15,397 37
Income (loss) from continuing operations before income taxes 4,382 (5,929) 1,729 1,459 2,218 ** 98 182 4,451 (96)
Income tax provision (benefit) 1,189 (1,666) 325 366 441 ** 170 (152) 797 **
Income (loss) from continuing operations, net of tax 3,193 (4,263) 1,404 1,093 1,777 ** 80 334 3,654 (91)
Income (loss) from discontinued operations, net of tax (1) (14) — 3 — (93) ** (15) — **
Net income (loss) 3,192 (4,277) 1,404 1,096 1,777 ** 80 319 3,654 (91)
Dividends and undistributed earnings allocated to participating securities(2) (33) (4) (22) (17) (28) ** 18 (13) (60) (78)
Preferred stock dividends (73) (65) (57) (57) (57) 12 28 (195) (171) 14
Discount on redeemed preferred stock — 6 — — — ** — 6 — **
Net income (loss) available to common stockholders $ 3,086 $ (4,340) $ 1,325 $ 1,022 $ 1,692 ** 82 $ 117 $ 3,423 (97)
Common Share Statistics
Basic earnings per common share:(2)
Net income (loss) from continuing operations $ 4.83 $ (8.55) $ 3.46 $ 2.66 $ 4.42 ** 9 % $ 0.26 $ 8.94 (97)%
Income (loss) from discontinued operations — (0.03) — 0.01 — ** — (0.03) — **
Net income (loss) per basic common share $ 4.83 $ (8.58) $ 3.46 $ 2.67 $ 4.42 ** 9 $ 0.23 $ 8.94 (97)
Diluted earnings per common share:(2)
Net income (loss) from continuing operations $ 4.83 $ (8.55) $ 3.45 $ 2.66 $ 4.41 ** 10 % $ 0.26 $ 8.92 (97)%
Income (loss) from discontinued operations — (0.03) — 0.01 — ** — (0.03) — **
Net income (loss) per diluted common share $ 4.83 $ (8.58) $ 3.45 $ 2.67 $ 4.41 ** 10 $ 0.23 $ 8.92 (97)
Weighted-average common shares outstanding (in millions):
Basic 639.0 505.6 383.1 382.4 383.0 26 % 67 % 510.2 382.8 33 %
Diluted 639.5 505.6 384.0 383.4 383.7 26 67 510.9 383.7 33
Common shares outstanding (period-end, in millions) 635.7 639.5 383.0 381.2 381.5 (1) 67 635.7 381.5 67
Dividends declared and paid per common share $ 0.60 $ 0.60 $ 0.60 $ 0.60 $ 0.60 — — $ 1.80 $ 1.80 —
Tangible book value per common share (period-end)(3) 105.18 99.35 113.74 106.97 112.36 6 (6) 105.18 112.36 (6)
2025 Q3 Nine Months Ended September 30,
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in millions) 2025 2025 2025 2024 2024 2025 2024 2025 vs.
Q3 Q2 Q1 Q4 Q3 Q2 Q3 2025 2024 2024
Balance Sheet (Period-End)
Loans held for investment $ 443,159 $ 439,297 $ 323,598 $ 327,775 $ 320,243 1 % 38 % $ 443,159 $ 320,243 38 %
Interest-earning assets 605,235 601,999 463,414 463,058 458,189 1 32 605,235 458,189 32
Total assets 661,877 658,968 493,604 490,144 486,433 — 36 661,877 486,433 36
Interest-bearing deposits 441,136 440,231 340,964 336,585 327,253 — 35 441,136 327,253 35
Total deposits 468,785 468,110 367,464 362,707 353,631 — 33 468,785 353,631 33
Borrowings 51,482 52,666 41,773 45,551 49,336 (2) 4 51,482 49,336 4
Common equity 108,406 105,549 58,697 55,938 58,080 3 87 108,406 58,080 87
Total stockholders’ equity 113,813 110,956 63,542 60,784 62,925 3 81 113,813 62,925 81
Balance Sheet (Average Balances)
Loans held for investment $ 439,859 $ 378,157 $ 322,385 $ 321,871 $ 318,255 16 % 38 % $ 380,564 $ 315,927 20 %
Interest-earning assets 593,247 524,929 462,771 460,640 454,484 13 31 527,461 451,078 17
Total assets 657,858 572,446 491,817 488,300 481,219 15 37 574,602 477,816 20
Interest-bearing deposits 439,527 387,139 337,840 331,564 324,509 14 35 388,541 321,856 21
Total deposits 467,280 414,568 364,078 358,323 351,125 13 33 415,686 348,765 19
Borrowings 50,180 46,601 44,448 46,293 48,274 8 4 47,097 49,194 (4)
Common equity 107,412 81,563 57,395 56,918 56,443 32 90 82,306 54,293 52
Total stockholders’ equity 112,819 86,918 62,240 61,764 61,289 30 84 87,511 59,139 48

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated

2025 Q3 Nine Months Ended September 30,
(Dollars in millions, except as noted) 2025 2025 2025 2024 2024 2025 2024 2025 vs.
Q3 Q2 Q1 Q4 Q3 Q2 Q3 2025 2024 2024
Performance Metrics
Net interest income growth (period over period) 24 % 25 % (1) % — 7 % ** ** 32 % 6 % **
Non-interest income growth (period over period) 18 26 (5) 8 % (1) ** ** 28 5 **
Total net revenue growth (period over period) 23 25 (2) 2 5 ** ** 31 6 **
Total net revenue margin(4) 10.36 9.52 8.64 8.85 8.81 84 bps 155 bps 9.57 8.55 102 bps
Net interest margin(5) 8.36 7.62 6.93 7.03 7.11 74 125 7.69 6.83 86
Return on average assets(6) 1.94 (2.98) 1.14 0.90 1.48 492 46 0.08 1.02 (94)
Return on average tangible assets(7) 2.07 (3.14) 1.18 0.92 1.53 521 54 0.08 1.05 (97)
Return on average common equity(8) 11.50 (21.22) 9.23 7.16 11.99 3,272 (49) 0.21 8.41 (820)
Return on average tangible common equity(9) 18.82 (32.99) 12.55 9.77 16.42 5,181 240 0.33 11.69 (1,136)
Efficiency ratio(10) 53.80 55.96 59.02 59.75 53.07 (216) 73 55.89 53.24 265
Operating efficiency ratio(11) 44.66 45.20 47.00 46.26 41.95 (54) 271 45.46 42.22 324
Effective income tax rate for continuing operations 27.1 28.1 18.8 25.1 19.9 (100) 720 (83.5) 17.9 **
Employees (period-end, in thousands) 77.0 76.5 53.9 52.6 52.5 1% 47% 77.0 52.5 47%
Credit Quality Metrics
Allowance for credit losses $ 23,103 $ 23,873 $ 15,899 $ 16,258 $ 16,534 (3)% 40% $ 23,103 $ 16,534 40%
Allowance coverage ratio 5.21 % 5.43 % 4.91 % 4.96 % 5.16 % (22) bps 5 bps 5.21 % 5.16 % 5 bps
Net charge-offs(12) $ 3,473 $ 3,060 $ 2,736 $ 2,884 $ 2,604 13% 33% $ 9,269 $ 7,864 18%
Net charge-off rate(13) 3.16 % 3.24 % 3.40 % 3.59 % 3.27 % (8) bps (11) bps 3.25 % 3.32 % (7) bps
30+ day performing delinquency rate 3.29 3.13 3.29 3.69 3.58 16 (29) 3.29 3.58 (29)
30+ day delinquency rate 3.50 3.32 3.51 3.98 3.89 18 (39) 3.50 3.89 (39)
Capital Ratios(14)
Common equity Tier 1 capital 14.4 % 14.0 % 13.6 % 13.5 % 13.6 % 40 bps 80 bps 14.4 % 13.6 % 80 bps
Tier 1 capital 15.5 15.1 14.9 14.8 14.9 40 60 15.5 14.9 60
Total capital 17.4 17.1 17.0 16.4 16.6 30 80 17.4 16.6 80
Tier 1 leverage 12.6 14.2 11.6 11.6 11.6 (160) 100 12.6 11.6 100
Tangible common equity (“TCE”)(15) 10.8 10.3 9.1 8.6 9.1 50 170 10.8 9.1 170

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income

2025 Q3 Nine Months Ended September 30,
(Dollars in millions, except as noted) 2025 2025 2025 2024 2024 2025 2024 2025 vs.
Q3 Q2 Q1 Q4 Q3 Q2 Q3 2025 2024 2024
Interest income:
Loans, including loans held for sale $ 15,229 $ 12,449 $ 10,157 $ 10,434 $ 10,547 22 % 44 % $ 37,835 $ 30,460 24 %
Investment securities 823 784 770 753 733 5 12 2,377 2,120 12
Other 711 595 491 530 580 19 23 1,797 1,737 3
Total interest income 16,763 13,828 11,418 11,717 11,860 21 41 42,009 34,317 22
Interest expense:
Deposits 3,597 3,120 2,715 2,862 2,945 15 22 9,432 8,631 9
Securitized debt obligations 165 164 176 205 234 1 (29) 505 753 (33)
Senior and subordinated notes 582 535 505 540 596 9 (2) 1,622 1,793 (10)
Other borrowings 15 14 9 12 9 7 67 38 30 27
Total interest expense 4,359 3,833 3,405 3,619 3,784 14 15 11,597 11,207 3
Net interest income 12,404 9,995 8,013 8,098 8,076 24 54 30,412 23,110 32
Provision for credit losses 2,714 11,430 2,369 2,642 2,482 (76) 9 16,513 9,074 82
Net interest income (loss) after provision for credit losses 9,690 (1,435) 5,644 5,456 5,594 ** 73 13,899 14,036 (1)
Non-interest income:
Discount and interchange fees, net 1,812 1,478 1,223 1,260 1,228 23 48 4,513 3,622 25
Service charges and other customer-related fees 849 658 509 554 501 29 69 2,016 1,422 42
Net securities loss — — — — (35) — ** — (35) **
Other 294 361 255 278 244 (19) 20 910 803 13
Total non-interest income 2,955 2,497 1,987 2,092 1,938 18 52 7,439 5,812 28
Non-interest expense:
Salaries and associate benefits 3,496 2,999 2,546 2,329 2,391 17 46 9,041 7,069 28
Occupancy and equipment 856 737 615 674 587 16 46 2,208 1,692 30
Marketing 1,403 1,345 1,202 1,375 1,113 4 26 3,950 3,187 24
Professional services 641 653 437 630 402 (2) 59 1,731 980 77
Communications and data processing 476 413 399 398 358 15 33 1,288 1,064 21
Amortization of intangibles 514 271 16 19 20 90 ** 801 58 **
Other 877 573 687 664 443 53 98 2,137 1,347 59
Total non-interest expense 8,263 6,991 5,902 6,089 5,314 18 55 21,156 15,397 37
Income (loss) from continuing operations before income taxes 4,382 (5,929) 1,729 1,459 2,218 ** 98 182 4,451 (96)
Income tax provision (benefit) 1,189 (1,666) 325 366 441 ** 170 (152) 797 **
Income (loss) from continuing operations, net of tax 3,193 (4,263) 1,404 1,093 1,777 ** 80 334 3,654 (91)
Income (loss) from discontinued operations, net of tax (1) (14) — 3 — (93) ** (15) — **
Net income (loss) 3,192 (4,277) 1,404 1,096 1,777 ** 80 319 3,654 (91)
Dividends and undistributed earnings allocated to participating securities(2) (33) (4) (22) (17) (28) ** 18 (13) (60) (78)
Preferred stock dividends (73) (65) (57) (57) (57) 12 28 (195) (171) 14
Discount on redeemed preferred stock — 6 — — — ** — 6 — **
Net income (loss) available to common stockholders $ 3,086 $ (4,340) $ 1,325 $ 1,022 $ 1,692 ** 82 $ 117 $ 3,423 (97)
2025 Q3 Nine Months Ended September 30,
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
2025 2025 2025 2024 2024 2025 2024 2025 vs.
Q3 Q2 Q1 Q4 Q3 Q2 Q3 2025 2024 2024
Basic earnings per common share:(2)
Net income (loss) from continuing operations $ 4.83 $ (8.55) $ 3.46 $ 2.66 $ 4.42 ** 9 % $ 0.26 $ 8.94 (97) %
Income (loss) from discontinued operations — (0.03) — 0.01 — ** — (0.03) — **
Net income (loss) per basic common share $ 4.83 $ (8.58) $ 3.46 $ 2.67 $ 4.42 ** 9 $ 0.23 $ 8.94 (97)
Diluted earnings per common share:(2)
Net income (loss) from continuing operations $ 4.83 $ (8.55) $ 3.45 $ 2.66 $ 4.41 ** 10 % $ 0.26 $ 8.92 (97) %
Income (loss) from discontinued operations — (0.03) — 0.01 — ** — (0.03) — **
Net income (loss) per diluted common share $ 4.83 $ (8.58) $ 3.45 $ 2.67 $ 4.41 ** 10 $ 0.23 $ 8.92 (97)
Weighted-average common shares outstanding (in millions):
Basic common shares 639.0 505.6 383.1 382.4 383.0 26 % 67 % 510.2 382.8 33 %
Diluted common shares 639.5 505.6 384.0 383.4 383.7 26 67 510.9 383.7 33

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets

2025 Q3
2025 2025 2025 2024 2024 2025 2024
(Dollars in millions) Q3 Q2 Q1 Q4 Q3 Q2 Q3
Assets:
Cash and cash equivalents:
Cash and due from banks $ 4,606 $ 4,854 $ 4,108 $ 3,028 $ 3,976 (5) % 16 %
Interest-bearing deposits and other short-term investments 50,673 54,255 44,465 40,202 45,322 (7) 12
Total cash and cash equivalents 55,279 59,109 48,573 43,230 49,298 (6) 12
Restricted cash for securitization investors 3,248 2,469 392 441 421 32 **
Securities available for sale 89,733 87,196 84,362 83,013 83,500 3 7
Loans held for investment:
Unsecuritized loans held for investment 389,808 384,413 295,939 298,241 292,061 1 33
Loans held in consolidated trusts 53,351 54,884 27,659 29,534 28,182 (3) 89
Total loans held for investment 443,159 439,297 323,598 327,775 320,243 1 38
Allowance for credit losses (23,103) (23,873) (15,899) (16,258) (16,534) (3) 40
Net loans held for investment 420,056 415,424 307,699 311,517 303,709 1 38
Loans held for sale 670 198 686 202 96 ** **
Premises and equipment, net 5,576 5,687 4,579 4,511 4,440 (2) 26
Interest receivable 3,456 3,373 2,599 2,532 2,577 2 34
Goodwill 28,863 28,335 15,070 15,059 15,083 2 91
Other intangible assets 17,042 18,157 217 233 253 (6) **
Other assets 29,957 30,904 29,427 29,406 27,056 (3) 11
Assets of discontinued operations 7,997 8,116 — — — (1) **
Total assets $ 661,877 $ 658,968 $ 493,604 $ 490,144 $ 486,433 — 36
2025 Q3
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
2025 2025 2025 2024 2024 2025 2024
(Dollars in millions) Q3 Q2 Q1 Q4 Q3 Q2 Q3
Liabilities:
Interest payable $ 826 $ 888 $ 646 $ 666 $ 705 (7) % 17 %
Deposits:
Non-interest-bearing deposits 27,649 27,879 26,500 26,122 26,378 (1) 5
Interest-bearing deposits 441,136 440,231 340,964 336,585 327,253 — 35
Total deposits 468,785 468,110 367,464 362,707 353,631 — 33
Securitized debt obligations 13,642 14,658 11,716 14,264 15,881 (7) (14)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase 616 742 573 562 520 (17) 18
Senior and subordinated notes 36,662 36,706 29,459 30,696 32,911 — 11
Other borrowings 562 560 25 29 24 — **
Total other debt 37,840 38,008 30,057 31,287 33,455 — 13
Other liabilities 26,941 26,316 20,179 20,436 19,836 2 36
Liabilities of discontinued operations 30 32 — — — (6) **
Total liabilities 548,064 548,012 430,062 429,360 423,508 — 29
Stockholders’ equity:
Preferred stock 0 0 0 0 0 ** **
Common stock 7 7 7 7 7 — —
Additional paid-in capital, net 63,725 63,465 36,693 36,428 36,216 — 76
Retained earnings 63,624 60,892 65,616 64,505 63,698 4 —
Accumulated other comprehensive loss (5,917) (6,819) (7,529) (9,286) (6,287) (13) (6)
Treasury stock, at cost (7,626) (6,589) (31,245) (30,870) (30,709) 16 (75)
Total stockholders’ equity 113,813 110,956 63,542 60,784 62,925 3 81
Total liabilities and stockholders’ equity $ 661,877 $ 658,968 $ 493,604 $ 490,144 $ 486,433 — 36

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

(1)Total net revenue was reduced by $869 million in Q3 2025, $785 million in Q2 2025, $705 million in Q1 2025, $706 million in Q4 2024 and $624 million in Q3 2024 for credit card finance charges and fees charged off as uncollectible.

(2)Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(3)Tangible book value per common share is a non-GAAP measure calculated based on TCE divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(4)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

(5)Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

(6)Return on average assets is calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average total assets for the period.

(7)Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(8)Return on average common equity is calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.

(9)Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average TCE. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(10)Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(11)Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(12)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.

(13)Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

(14)Capital ratios as of the end of Q3 2025 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.

(15)TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

**    Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 6: Average Balances, Net Interest Income and Net Interest Margin

2025 Q3 2025 Q2 2024 Q3
(Dollars in millions, except as noted) Average Balance Interest Income/ Expense Yield/Rate(1) Average Balance Interest Income/ Expense Yield/Rate(1) Average Balance Interest Income/ Expense Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale $ 440,374 $ 15,229 13.83 % $ 378,537 $ 12,449 13.15 % $ 318,715 $ 10,547 13.24 %
Investment securities 96,186 823 3.42 93,024 784 3.37 90,644 733 3.24
Cash equivalents and other 56,687 711 5.02 53,368 595 4.46 45,125 580 5.14
Total interest-earning assets $ 593,247 $ 16,763 11.30 $ 524,929 $ 13,828 10.54 $ 454,484 $ 11,860 10.44
Interest-bearing liabilities:
Interest-bearing deposits $ 439,527 $ 3,597 3.27 $ 387,139 $ 3,120 3.22 $ 324,509 $ 2,945 3.63
Securitized debt obligations 12,919 165 5.11 13,043 164 5.06 15,833 234 5.93
Senior and subordinated notes 36,272 582 6.41 32,872 535 6.51 32,041 596 7.43
Other borrowings and liabilities(2) 3,120 15 2.04 2,872 14 1.85 2,389 9 1.50
Total interest-bearing liabilities $ 491,838 $ 4,359 3.55 $ 435,926 $ 3,833 3.52 $ 374,772 $ 3,784 4.04
Net interest income/spread $ 12,404 7.75 $ 9,995 7.02 $ 8,076 6.40
Impact of non-interest-bearing funding 0.61 0.60 0.71
Net interest margin 8.36 % 7.62 % 7.11 %
Nine Months Ended September 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2025 2024
(Dollars in millions, except as noted) Average Balance Interest Income/ Expense Yield/Rate(1) Average Balance Interest Income/ Expense Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale $ 380,992 $ 37,835 13.24 % $ 316,707 $ 30,460 12.82 %
Investment securities 93,970 2,377 3.37 89,580 2,120 3.16
Cash equivalents and other 52,499 1,797 4.56 44,791 1,737 5.17
Total interest-earning assets $ 527,461 $ 42,009 10.62 $ 451,078 $ 34,317 10.14
Interest-bearing liabilities:
Interest-bearing deposits $ 388,541 $ 9,432 3.24 $ 321,856 $ 8,631 3.58
Securitized debt obligations 13,228 505 5.10 17,036 753 5.90
Senior and subordinated notes 33,180 1,622 6.52 31,744 1,793 7.53
Other borrowings and liabilities(2) 2,771 38 1.84 2,422 30 1.67
Total interest-bearing liabilities $ 437,720 $ 11,597 3.53 $ 373,058 $ 11,207 4.01
Net interest income/spread $ 30,412 7.09 $ 23,110 6.14
Impact of non-interest-bearing funding 0.60 0.69
Net interest margin 7.69 % 6.83 %

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics

2025 Q3 Nine Months Ended September 30,
2025 2025 2025 2024 2024 2025 2024 2025 2024 2025 vs. 2024
(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card $ 253,951 $ 252,481 $ 150,309 $ 155,618 $ 149,400 1 % 70 % $ 253,951 $ 149,400 70 %
Personal loans 9,646 9,788 — — — (1) ** 9,646 — **
International card businesses 7,440 7,440 6,880 6,890 7,251 — 3 7,440 7,251 3
Total credit card 271,037 269,709 157,189 162,508 156,651 — 73 271,037 156,651 73
Consumer banking:
Auto 82,035 80,017 77,656 76,829 75,505 3 9 82,035 75,505 9
Retail banking 1,195 1,216 1,240 1,263 1,253 (2) (5) 1,195 1,253 (5)
Total consumer banking 83,230 81,233 78,896 78,092 76,758 2 8 83,230 76,758 8
Commercial banking:
Commercial and multifamily real estate 33,461 32,967 31,971 31,903 32,199 1 4 33,461 32,199 4
Commercial and industrial 55,431 55,388 55,542 55,272 54,635 — 1 55,431 54,635 1
Total commercial banking 88,892 88,355 87,513 87,175 86,834 1 2 88,892 86,834 2
Total loans held for investment $ 443,159 $ 439,297 $ 323,598 $ 327,775 $ 320,243 1 38 $ 443,159 $ 320,243 38
Loans Held for Investment (Average)
Credit card:
Domestic credit card $ 252,090 $ 197,808 $ 149,639 $ 150,290 $ 147,021 27 % 71 % $ 200,221 $ 144,560 39 %
Personal loans 9,703 4,778 — — — 103 ** 4,863 — **
International card businesses 7,382 7,107 6,768 7,036 6,951 4 6 7,088 6,811 4
Total credit card 269,175 209,693 156,407 157,326 153,972 28 75 212,172 151,371 40
Consumer banking:
Auto 81,094 78,875 77,228 75,968 74,920 3 8 79,080 74,264 6
Retail banking 1,201 1,220 1,252 1,253 1,262 (2) (5) 1,224 1,291 (5)
Total consumer banking 82,295 80,095 78,480 77,221 76,182 3 8 80,304 75,555 6
Commercial banking:
Commercial and multifamily real estate 33,104 32,522 31,733 32,058 32,416 2 2 32,458 33,505 (3)
Commercial and industrial 55,285 55,847 55,765 55,266 55,685 (1) (1) 55,630 55,496 —
Total commercial banking 88,389 88,369 87,498 87,324 88,101 — — 88,088 89,001 (1)
Total average loans held for investment $ 439,859 $ 378,157 $ 322,385 $ 321,871 $ 318,255 16 38 $ 380,564 $ 315,927 20
2025 Q3 Nine Months Ended September 30,
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
2025 2025 2025 2024 2024 2025 2024 2025 2024 2025 vs. 2024
Q3 Q2 Q1 Q4 Q3 Q2 Q3
Net Charge-Off (Recovery) Rates
Credit card(3):
Domestic credit card(4) 4.63 % 5.25 % 6.19 % 6.06 % 5.61 % (62) bps (98) bps 5.21 % 5.86 % (65) bps
Personal loans 3.81 3.47 — — — 34 ** 3.67 — **
International card businesses 5.07 5.17 5.02 5.17 5.23 (10) (16) 5.09 5.14 (5)
Total credit card 4.61 5.20 6.14 6.02 5.60 (59) (99) 5.17 5.83 (66)
Consumer banking:
Auto 1.54 1.25 1.55 2.32 2.05 29 (51) 1.44 1.95 (51)
Retail banking 4.41 4.54 4.75 5.63 5.43 (13) (102) 4.57 4.94 (37)
Total consumer banking 1.58 1.30 1.60 2.38 2.11 28 (53) 1.49 2.00 (51)
Commercial banking:
Commercial and multifamily real estate (0.09) (0.06) 0.09 0.50 0.26 (3) (35) (0.02) 0.19 (21)
Commercial and industrial 0.38 0.55 0.12 0.13 0.20 (17) 18 0.35 0.15 20
Total commercial banking 0.21 0.33 0.11 0.26 0.22 (12) (1) 0.21 0.17 4
Total net charge-offs 3.16 3.24 3.40 3.59 3.27 (8) (11) 3.25 3.32 (7)
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card 3.89 % 3.60 % 4.25 % 4.53 % 4.53 % 29 bps (64) bps 3.89 % 4.53 % (64) bps
Personal loans 1.74 1.62 — — — 12 ** 1.74 — **
International card businesses 4.60 4.50 4.56 4.52 4.53 10 7 4.60 4.53 7
Total credit card 3.84 3.55 4.26 4.53 4.53 29 (69) 3.84 4.53 (69)
Consumer banking:
Auto 4.99 4.84 4.93 5.95 5.61 15 (62) 4.99 5.61 (62)
Retail banking 0.89 0.93 1.13 1.12 0.95 (4) (6) 0.89 0.95 (6)
Total consumer banking 4.93 4.78 4.87 5.87 5.53 15 (60) 4.93 5.53 (60)
2025 Q3 Nine Months Ended September 30,
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
2025 2025 2025 2024 2024 2025 2024 2025 2024 2025 vs. 2024
Q3 Q2 Q1 Q4 Q3 Q2 Q3
Nonperforming Loans and Nonperforming Assets Rates(5)(6)
Credit card:
Personal loans 0.13 % 0.12 % — — — 1 bps ** 0.13 % — **
International card businesses 0.16 0.16 0.13 % 0.15 % 0.15 % — 1 bps 0.16 0.15 % 1 bps
Total credit card 0.01 0.01 0.01 0.01 0.01 — — 0.01 0.01 —
Consumer banking:
Auto 0.71 0.73 0.72 0.98 0.91 (2) (20) 0.71 0.91 (20)
Retail banking 1.65 1.47 1.89 1.94 2.19 18 (54) 1.65 2.19 (54)
Total consumer banking 0.73 0.74 0.74 0.99 0.93 (1) (20) 0.73 0.93 (20)
Commercial banking:
Commercial and multifamily real estate 1.05 1.06 1.23 1.60 1.96 (1) (91) 1.05 1.96 (91)
Commercial and industrial 1.59 1.45 1.50 1.27 1.32 14 27 1.59 1.32 27
Total commercial banking 1.39 1.30 1.40 1.39 1.55 9 (16) 1.39 1.55 (16)
Total nonperforming loans 0.42 0.40 0.56 0.61 0.65 2 (23) 0.42 0.65 (23)
Total nonperforming assets 0.44 0.42 0.58 0.63 0.67 2 (23) 0.44 0.67 (23)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

Three Months Ended September 30, 2025
Credit Card Consumer Banking
(Dollars in millions) Domestic Card Personal Loans International Card Businesses Total Credit Card Auto Retail Banking Total Consumer Banking Commercial Banking Total
Allowance for credit losses:
Balance as of June 30, 2025 $ 19,229 $ 762 $ 483 $ 20,474 $ 1,838 $ 26 $ 1,864 $ 1,535 $ 23,873
Charge-offs (3,951) (121) (139) (4,211) (651) (18) (669) (61) (4,941)
Recoveries 1,035 29 46 1,110 338 5 343 15 1,468
Net charge-offs (2,916) (92) (93) (3,101) (313) (13) (326) (46) (3,473)
Provision for credit losses 2,163 97 104 2,364 330 10 340 9 2,713
Allowance build (release) for credit losses (753) 5 11 (737) 17 (3) 14 (37) (760)
Other changes(8) — — (10) (10) — — — — (10)
Balance as of September 30, 2025 18,476 767 484 19,727 1,855 23 1,878 1,498 23,103
Reserve for unfunded lending commitments:
Balance as of June 30, 2025 — — — — — — — 135 135
Provision for losses on unfunded lending commitments — — — — — — — — —
Balance as of September 30, 2025 — — — — — — — 135 135
Combined allowance and reserve as of September 30, 2025 $ 18,476 $ 767 $ 484 $ 19,727 $ 1,855 $ 23 $ 1,878 $ 1,633 $ 23,238 Nine Months Ended September 30, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit Card Consumer Banking
(Dollars in millions) Domestic Card Personal Loans International Card Businesses Total Credit Card Auto Retail Banking Total Consumer Banking Commercial Banking Total
Allowance for credit losses:
Balance as of December 31, 2024 $ 12,494 — $ 480 $ 12,974 $ 1,859 $ 25 $ 1,884 $ 1,400 $ 16,258
Charge-offs(3) (10,199) $ (177) (403) (10,779) (1,900) (57) (1,957) (180) (12,916)
Recoveries 2,375 43 133 2,551 1,043 15 1,058 38 3,647
Net charge-offs (7,824) (134) (270) (8,228) (857) (42) (899) (142) (9,269)
Initial allowance for purchased credit-deteriorated loans 2,722 148 — 2,870 — — — — 2,870
Benefit from expected recoveries of charged off loans(9) (3,135) (170) — (3,305) — — — — (3,305)
Provision for credit losses(7) 14,219 923 246 15,388 853 40 893 240 16,521
Allowance build (release) for credit losses(7) 5,982 767 (24) 6,725 (4) (2) (6) 98 6,817
Other changes(8) — — 28 28 — — — — 28
Balance as of September 30, 2025 18,476 767 484 19,727 1,855 23 1,878 1,498 23,103
Reserve for unfunded lending commitments:
Balance as of December 31, 2024 — — — — — — — 143 143
Provision (benefit) for losses on unfunded lending commitments — — — — — — — (8) (8)
Balance as of September 30, 2025 — — — — — — — 135 135
Combined allowance and reserve as of September 30, 2025 $ 18,476 $ 767 $ 484 $ 19,727 $ 1,855 $ 23 $ 1,878 $ 1,633 $ 23,238

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results

Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025
(Dollars in millions) Credit Card Consumer Banking Commercial Banking(10) Other(10) Total Credit Card Consumer Banking Commercial Banking(10) Other(10) Total
Net interest income (loss) $ 9,396 $ 2,357 $ 586 $ 65 $ 12,404 $ 22,343 $ 6,462 $ 1,760 $ (153) $ 30,412
Non-interest income (loss) 2,211 475 318 (49) 2,955 5,524 1,052 965 (102) 7,439
Total net revenue (loss) 11,607 2,832 904 16 15,359 27,867 7,514 2,725 (255) 37,851
Provision (benefit) for credit losses 2,364 340 9 1 2,714 15,388 893 232 — 16,513
Non-interest expense 5,409 1,941 520 393 8,263 13,494 5,235 1,495 932 21,156
Income (loss) from continuing operations before income taxes 3,834 551 375 (378) 4,382 (1,015) 1,386 998 (1,187) 182
Income tax provision (benefit) 914 131 89 55 1,189 (237) 330 237 (482) (152)
Income (loss) from continuing operations, net of tax $ 2,920 $ 420 $ 286 $ (433) $ 3,193 $ (778) $ 1,056 $ 761 $ (705) $ 334
Three Months Ended June 30, 2025
(Dollars in millions) Credit Card Consumer Banking Commercial Banking(10) Other(10) Total
Net interest income (loss) $ 7,293 $ 2,162 $ 602 $ (62) $ 9,995
Non-interest income (loss) 1,802 394 335 (34) 2,497
Total net revenue (loss) 9,095 2,556 937 (96) 12,492
Provision (benefit) for credit losses 11,098 252 81 (1) 11,430
Non-interest expense 4,447 1,713 489 342 6,991
Income (loss) from continuing operations before income taxes (6,450) 591 367 (437) (5,929)
Income tax provision (benefit) (1,533) 141 87 (361) (1,666)
Income (loss) from continuing operations, net of tax $ (4,917) $ 450 $ 280 $ (76) $ (4,263)
Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024
(Dollars in millions) Credit Card Consumer Banking Commercial Banking(10) Other(10) Total Credit Card Consumer Banking Commercial Banking(10) Other(10) Total
Net interest income (loss) $ 5,743 $ 2,028 $ 596 $ (291) $ 8,076 $ 16,309 $ 6,064 $ 1,804 $ (1,067) $ 23,110
Non-interest income (loss) 1,509 182 292 (45) 1,938 4,491 513 844 (36) 5,812
Total net revenue (loss) 7,252 2,210 888 (336) 10,014 20,800 6,577 2,648 (1,103) 28,922
Provision (benefit) for credit losses 2,084 351 48 (1) 2,482 7,888 1,107 80 (1) 9,074
Non-interest expense 3,367 1,331 495 121 5,314 9,730 3,827 1,493 347 15,397
Income (loss) from continuing operations before income taxes 1,801 528 345 (456) 2,218 3,182 1,643 1,075 (1,449) 4,451
Income tax provision (benefit) 427 125 82 (193) 441 756 388 254 (601) 797
Income (loss) from continuing operations, net of tax $ 1,374 $ 403 $ 263 $ (263) $ 1,777 $ 2,426 $ 1,255 $ 821 $ (848) $ 3,654

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business

2025 Q3 vs. Nine Months Ended September 30,
2025 2025 2025 2024 2024 2025 2024 2025 vs.
(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2025 2024 2024
Credit Card
Earnings:
Net interest income $ 9,396 $ 7,293 $ 5,654 $ 5,779 $ 5,743 29% 64% $ 22,343 $ 16,309 37%
Non-interest income 2,211 1,802 1,511 1,585 1,509 23 47 5,524 4,491 23
Total net revenue 11,607 9,095 7,165 7,364 7,252 28 60 27,867 20,800 34
Provision for credit losses 2,364 11,098 1,926 2,384 2,084 (79) 13 15,388 7,888 95
Non-interest expense 5,409 4,447 3,638 3,846 3,367 22 61 13,494 9,730 39
Income (loss) from continuing operations before income taxes 3,834 (6,450) 1,601 1,134 1,801 ** 113 (1,015) 3,182 **
Income tax provision (benefit) 914 (1,533) 382 268 427 ** 114 (237) 756 **
Income (loss) from continuing operations, net of tax $ 2,920 $ (4,917) $ 1,219 $ 866 $ 1,374 ** 113 $ (778) $ 2,426 **
Selected performance metrics:
Period-end loans held for investment $ 271,037 $ 269,709 $ 157,189 $ 162,508 $ 156,651 — 73 $ 271,037 $ 156,651 73
Average loans held for investment 269,175 209,693 156,407 157,326 153,972 28 75 212,172 151,371 40
Average yield on loans outstanding(1) 17.99 % 17.94 % 18.54 % 19.05 % 19.66 % 5 bps (167) bps 18.08 % 19.10 % (102) bps
Total net revenue margin(11) 17.25 17.35 18.32 18.72 18.82 (10) (157) 17.51 18.28 (77)
Net charge-off (recovery) rate(3) 4.61 5.20 6.14 6.02 5.60 (59) (99) 5.17 5.83 (66)
30+ day performing delinquency rate 3.84 3.55 4.26 4.53 4.53 29 (69) 3.84 4.53 (69)
30+ day delinquency rate 3.84 3.56 4.27 4.54 4.54 28 (70) 3.84 4.54 (70)
Nonperforming loan rate(5) 0.01 0.01 0.01 0.01 0.01 — — 0.01 0.01 —
Purchase volume(12) $ 230,379 $ 201,453 $ 157,948 $ 172,919 $ 166,203 14% 39% $ 589,780 $ 481,517 22%
2025 Q3 vs. Nine Months Ended September 30,
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
2025 2025 2025 2024 2024 2025 2024 2025 vs.
(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2025 2024 2024
Domestic Card
Earnings:
Net interest income $ 8,766 $ 6,822 $ 5,343 $ 5,474 $ 5,434 28% 61% $ 20,931 $ 15,407 36%
Non-interest income 2,160 1,749 1,460 1,522 1,438 23 50 5,369 4,289 25
Total net revenue 10,926 8,571 6,803 6,996 6,872 27 59 26,300 19,696 34
Provision for credit losses 2,163 10,200 1,856 2,278 1,997 (79) 8 14,219 7,589 87
Non-interest expense 5,092 4,192 3,422 3,607 3,149 21 62 12,706 9,120 39
Income (loss) from continuing operations before income taxes 3,671 (5,821) 1,525 1,111 1,726 ** 113 (625) 2,987 **
Income tax provision (benefit) 873 (1,385) 363 262 407 ** 114 (149) 705 **
Income (loss) from continuing operations, net of tax $ 2,798 $ (4,436) $ 1,162 $ 849 $ 1,319 ** 112 $ (476) $ 2,282 **
Selected performance metrics:
Period-end loans held for investment $ 253,951 $ 252,481 $ 150,309 $ 155,618 $ 149,400 1 70 $ 253,951 $ 149,400 70
Average loans held for investment 252,090 197,808 149,639 150,290 147,021 27 71 200,221 144,560 39
Average yield on loans outstanding(1) 17.99 % 17.88 % 18.42 % 19.00 % 19.62 % 11 bps (163) bps 18.03 % 19.04 % (101) bps
Total net revenue margin(11) 17.34 17.33 18.19 18.62 18.67 1 (133) 17.51 18.12 (61)
Net charge-off (recovery) rate(4) 4.63 5.25 6.19 6.06 5.61 (62) (98) 5.21 5.86 (65)
30+ day performing delinquency rate 3.89 3.60 4.25 4.53 4.53 29 (64) 3.89 4.53 (64)
Purchase volume(12) $ 226,147 $ 197,308 $ 154,391 $ 168,994 $ 162,281 15% 39% $ 577,846 $ 470,347 23%
Refreshed FICO scores:(13)
Greater than 660 73 % 73 % 69 % 69 % 69 % — 4 73 % 69 % 4
660 or below 27 27 31 31 31 — (4) 27 31 (4)
Total 100 % 100 % 100 % 100 % 100 % 100 % 100 %

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business

2025 Q3 vs. Nine Months Ended September 30,
2025 2025 2025 2024 2024 2025 2024 2025 vs.
(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2025 2024 2024
Consumer Banking
Earnings:
Net interest income $ 2,357 $ 2,162 $ 1,943 $ 1,959 $ 2,028 9% 16% $ 6,462 $ 6,064 7%
Non-interest income 475 394 183 182 182 21 161 1,052 513 105
Total net revenue 2,832 2,556 2,126 2,141 2,210 11 28 7,514 6,577 14
Provision for credit losses 340 252 301 328 351 35 (3) 893 1,107 (19)
Non-interest expense 1,941 1,713 1,581 1,545 1,331 13 46 5,235 3,827 37
Income from continuing operations before income taxes 551 591 244 268 528 (7) 4 1,386 1,643 (16)
Income tax provision 131 141 58 63 125 (7) 5 330 388 (15)
Income from continuing operations, net of tax $ 420 $ 450 $ 186 $ 205 $ 403 (7) 4 $ 1,056 $ 1,255 (16)
Selected performance metrics:
Period-end loans held for investment $ 83,230 $ 81,233 $ 78,896 $ 78,092 $ 76,758 2 8 $ 83,230 $ 76,758 8
Average loans held for investment 82,295 80,095 78,480 77,221 76,182 3 8 80,304 75,555 6
Average yield on loans held for investment(1) 9.52 % 9.30 % 9.03 % 9.04 % 8.88 % 22 bps 64 bps 9.28 % 8.59 % 69 bps
Auto loan originations $ 10,731 $ 10,861 $ 9,210 $ 9,399 $ 9,158 (1)% 17% $ 30,802 $ 25,143 23%
Period-end deposits 416,765 414,044 324,920 318,329 309,569 1 35 416,765 309,569 35
Average deposits 414,219 365,359 319,950 313,992 306,121 13 35 366,854 300,475 22
Average deposits interest rate 3.07 % 3.02 % 3.00 % 3.21 % 3.33 % 5 bps (26) bps 3.03 % 3.23 % (20) bps
Net charge-off rate 1.58 1.30 1.60 2.38 2.11 28 (53) 1.49 2.00 (51)
30+ day performing delinquency rate 4.93 4.78 4.87 5.87 5.53 15 (60) 4.93 5.53 (60)
30+ day delinquency rate 5.53 5.40 5.47 6.73 6.31 13 (78) 5.53 6.31 (78)
Nonperforming loan rate(5) 0.73 0.74 0.74 0.99 0.93 (1) (20) 0.73 0.93 (20)
Nonperforming asset rate(6) 0.82 0.82 0.82 1.08 1.01 — (19) 0.82 1.01 (19)
Global Payment Network volume(14) $ 153,117 $ 74,014 — — — 107% ** $ 227,131 — **
Auto—At origination FICO scores:(15)
Greater than 660 51 % 52 % 53 % 54 % 53 % (1) (2)% 51 % 53 % (2)%
621 - 660 19 19 19 19 20 — (1) 19 20 (1)
620 or below 30 29 28 27 27 1 3 30 27 3
Total 100 % 100 % 100 % 100 % 100 % 100 % 100 %

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business

2025 Q3 vs. Nine Months Ended September 30,
2025 2025 2025 2024 2024 2025 2024 2025 vs.
(Dollars in millions, except as noted) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2025 2024 2024
Commercial Banking
Earnings:
Net interest income $ 586 $ 602 $ 572 $ 587 $ 596 (3)% (2)% $ 1,760 $ 1,804 (2)%
Non-interest income 318 335 312 366 292 (5) 9 965 844 14
Total net revenue(10) 904 937 884 953 888 (4) 2 2,725 2,648 3
Provision (benefit) for credit losses 9 81 142 (72) 48 (89) (81) 232 80 190
Non-interest expense 520 489 486 518 495 6 5 1,495 1,493 —
Income from continuing operations before income taxes 375 367 256 507 345 2 9 998 1,075 (7)
Income tax provision 89 87 61 119 82 2 9 237 254 (7)
Income from continuing operations, net of tax $ 286 $ 280 $ 195 $ 388 $ 263 2 9 $ 761 $ 821 (7)
Selected performance metrics:
Period-end loans held for investment $ 88,892 $ 88,355 $ 87,513 $ 87,175 $ 86,834 1 2 $ 88,892 $ 86,834 2
Average loans held for investment 88,389 88,369 87,498 87,324 88,101 — — 88,088 89,001 (1)
Average yield on loans held for investment(1)(10) 6.42 % 6.40 % 6.29 % 6.72 % 7.25 % 2 bps (83) bps 6.37 % 7.21 % (84) bps
Period-end deposits $ 29,920 $ 29,245 $ 29,984 $ 31,691 $ 30,598 2% (2)% $ 29,920 $ 30,598 (2)%
Average deposits 29,889 30,444 31,654 31,545 30,365 (2) (2) 30,656 31,004 (1)
Average deposits interest rate 2.13 % 2.06 % 2.13 % 2.28 % 2.55 % 7 bps (42) bps 2.11 % 2.58 % (47) bps
Net charge-off rate 0.21 0.33 0.11 0.26 0.22 (12) (1) 0.21 0.17 4
Nonperforming loan rate(5) 1.39 1.30 1.40 1.39 1.55 9 (16) 1.39 1.55 (16)
Nonperforming asset rate(6) 1.40 1.30 1.40 1.39 1.55 10 (15) 1.40 1.55 (15)
Risk category:(16)
Noncriticized $ 83,098 $ 82,000 $ 80,677 $ 80,431 $ 78,835 1% 5% $ 83,098 $ 78,835 5%
Criticized performing 4,558 5,204 5,612 5,534 6,651 (12) (31) 4,558 6,651 (31)
Criticized nonperforming 1,236 1,151 1,224 1,210 1,348 7 (8) 1,236 1,348 (8)
Total commercial banking loans held for investment $ 88,892 $ 88,355 $ 87,513 $ 87,175 $ 86,834 1 2 $ 88,892 $ 86,834 2
Risk category as a percentage of period-end loans held for investment:(16)
Noncriticized 93.48 % 92.81 % 92.19 % 92.26 % 90.79 % 67 bps 269 bps 93.48 % 90.79 % 269 bps
Criticized performing 5.13 5.89 6.41 6.35 7.66 (76) (253) 5.13 7.66 (253)
Criticized nonperforming 1.39 1.30 1.40 1.39 1.55 9 (16) 1.39 1.55 (16)
Total commercial banking loans 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 %

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total

2025 Q3 vs. Nine Months Ended September 30,
2025 2025 2025 2024 2024 2025 2024 2025 vs.
(Dollars in millions) Q3 Q2 Q1 Q4 Q3 Q2 Q3 2025 2024 2024
Other
Earnings:
Net interest income (loss) $ 65 $ (62) $ (156) $ (227) $ (291) ** ** $ (153) $ (1,067) (86)%
Non-interest loss (49) (34) (19) (41) (45) 44% 9% (102) (36) 183
Total net revenue (loss)(10) 16 (96) (175) (268) (336) ** ** (255) (1,103) (77)
Provision (benefit) for credit losses 1 (1) — 2 (1) ** ** — (1) **
Non-interest expense(17) 393 342 197 180 121 15 ** 932 347 169
Loss from continuing operations before income taxes (378) (437) (372) (450) (456) (14) (17) (1,187) (1,449) (18)
Income tax provision (benefit) 55 (361) (176) (84) (193) ** ** (482) (601) (20)
Loss from continuing operations, net of tax $ (433) $ (76) $ (196) $ (366) $ (263) ** 65 $ (705) $ (848) (17)
Selected performance metrics:
Period-end deposits $ 22,100 $ 24,821 $ 12,560 $ 12,687 $ 13,464 (11) 64 $ 22,100 $ 13,464 64
Average deposits 23,172 18,765 12,474 12,786 14,639 23 58 18,176 17,286 5
Total
Earnings:
Net interest income $ 12,404 $ 9,995 $ 8,013 $ 8,098 $ 8,076 24% 54% $ 30,412 $ 23,110 32%
Non-interest income 2,955 2,497 1,987 2,092 1,938 18 52 7,439 5,812 28
Total net revenue 15,359 12,492 10,000 10,190 10,014 23 53 37,851 28,922 31
Provision for credit losses 2,714 11,430 2,369 2,642 2,482 (76) 9 16,513 9,074 82
Non-interest expense 8,263 6,991 5,902 6,089 5,314 18 55 21,156 15,397 37
Income (loss) from continuing operations before income taxes 4,382 (5,929) 1,729 1,459 2,218 ** 98 182 4,451 (96)
Income tax provision (benefit) 1,189 (1,666) 325 366 441 ** 170 (152) 797 **
Income (loss) from continuing operations, net of tax $ 3,193 $ (4,263) $ 1,404 $ 1,093 $ 1,777 ** 80 $ 334 $ 3,654 (91)
Selected performance metrics:
Period-end loans held for investment $ 443,159 $ 439,297 $ 323,598 $ 327,775 $ 320,243 1 38 $ 443,159 $ 320,243 38
Average loans held for investment 439,859 378,157 322,385 321,871 318,255 16 38 380,564 315,927 20
Period-end deposits 468,785 468,110 367,464 362,707 353,631 — 33 468,785 353,631 33
Average deposits 467,280 414,568 364,078 358,323 351,125 13 33 415,686 348,765 19

`CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)

(1)Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Average yield is calculated using whole dollar values for average balances and interest income/expense. Accordingly, total interest earning assets less total interest bearing liabilities may not total net interest income/spread.

(2)Includes amounts related to entities that provide capital to low-income and rural communities of $2.1 billion, $2.2 billion and $2.1 billion for the third quarter, second quarter and first nine months of 2025, respectively, and $2.0 billion, $2.1 billion and $2.0 billion for the third quarter, second quarter and first nine months of 2024, respectively. Related interest expense was $8 million for both the third quarter and second quarter and $23 million for the first nine months of 2025, and $7 million, $8 million and $23 million for the third quarter, second quarter and first nine months of 2024, respectively.

(3)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.

(4)Charge-offs exclude $18.0 billion of Discover Domestic credit card loans acquired in the second quarter of 2025 that are fully charged-off, with expected recoveries of $3.1 billion included as a benefit to the allowance for credit losses.

(5)Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category. For Commercial Banking, loans categorized as nonperforming are considered criticized nonperforming.

(6)Nonperforming assets consist of nonperforming loans, repossessed assets 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, repossessed assets and other foreclosed assets.

(7)In Q2 2025, provision for credit losses includes the initial allowance for credit losses of $8.8 billion for non-purchased credit deteriorated (“non-PCD”) loans acquired in the Discover Acquisition.

(8)Primarily represents foreign currency translation adjustments.

(9)Represents contractual rights to collect on recoveries of acquired Discover loans that are fully charged-off.

(10)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 the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(11)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

(12)Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.

(13)Percentages represent period-end loans held for investment in each credit score category. Domestic Card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.

(14)Global Payment Network volume includes Discover Network, PULSE Network, Diners Club International and Network Partners transactions.

(15)Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.

(16)Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.

(17)Includes the impact of $348 million, $299 million, $110 million, $140 million and $63 million in Discover integration expenses in Q3 2025, Q2 2025, Q1 2025, Q4 2024 and Q3 2024, respectively, as well as any charges incurred as a result of restructuring activities for the periods presented.

**    Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1)

Basel III Standardized Approach
(Dollars in millions, except as noted) September 30, <br>2025 June 30,<br>2025 March 31,<br>2025 December 31,<br>2024 September 30,<br>2024
Regulatory Capital Metrics
Common equity excluding AOCI $ 114,323 $ 112,368 $ 66,225 $ 65,823 $ 64,966
Adjustments:
AOCI, net of tax(2) 68 83 19 1 58
Goodwill, net of related deferred tax liabilities (28,575) (28,052) (14,792) (14,786) (14,816)
Other Intangible and deferred tax assets, net of deferred tax liabilities (12,846) (13,687) (247) (231) (252)
Common equity Tier 1 capital $ 72,970 $ 70,712 $ 51,205 $ 50,807 $ 49,956
Tier 1 capital $ 78,377 $ 76,118 $ 56,050 $ 55,652 $ 54,801
Total capital(3) 87,849 85,988 63,926 61,805 61,151
Risk-weighted assets 506,261 503,413 375,538 377,145 368,199
Adjusted average assets(4) 622,435 537,581 483,888 480,794 473,146
Capital Ratios
Common equity Tier 1 capital(5) 14.4% 14.0% 13.6% 13.5% 13.6%
Tier 1 capital(6) 15.5 15.1 14.9 14.8 14.9
Total capital(7) 17.4 17.1 17.0 16.4 16.6
Tier 1 leverage(4) 12.6 14.2 11.6 11.6 11.6
TCE(8) 10.8 10.3 9.1 8.6 9.1

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results, however, they may not be comparable to similarly-titled measures reported by other companies. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.

2025 2025 2025 2024 2024 Nine Months Ended September 30,
(Dollars in millions, except per share data and as noted) Q3 Q2 Q1 Q4 Q3 2025 2024
Adjusted diluted earnings per share (“EPS”):
Net income (loss) available to common stockholders (GAAP) $ 3,086 $ (4,340) $ 1,325 $ 1,022 $ 1,692 $ 117 $ 3,423
Initial allowance build for Discover non-PCD loans — 8,767 — — — 8,767 —
Discover integration expenses 348 299 110 140 63 757 94
Discover intangible amortization expense 498 255 — — — 753 —
Discover loan and deposit fair value mark amortization 105 85 — — — 190 —
Legal reserve activities — 41 198 75 — 239 —
Allowance build for Walmart program agreement loss sharing termination — — — — — — 826
Walmart program agreement termination contra revenue impact — — — — — — 27
FDIC special assessment — — — — (9) — 41
Adjusted net income available to common stockholders before income tax impacts (non-GAAP) 4,037 5,107 1,633 1,237 1,746 10,823 4,411
Income tax impacts (236) (2,339) (76) (52) (13) (2,651) (241)
Adjusted net income available to common stockholders (non-GAAP) $ 3,801 $ 2,768 $ 1,557 $ 1,185 $ 1,733 $ 8,172 $ 4,170
Diluted weighted-average common shares outstanding (in millions) (GAAP) 639.5 505.6 384.0 383.4 383.7 510.9 383.7
Diluted EPS (GAAP) $ 4.83 $ (8.58) $ 3.45 $ 2.67 $ 4.41 $ 0.23 $ 8.92
Impact of adjustments noted above 1.12 14.06 0.61 0.42 0.10 15.77 1.94
Adjusted diluted EPS (non-GAAP) $ 5.95 $ 5.48 $ 4.06 $ 3.09 $ 4.51 $ 16.00 $ 10.86
Adjusted efficiency ratio:
Non-interest expense (GAAP) $ 8,263 $ 6,991 $ 5,902 $ 6,089 $ 5,314 $ 21,156 $ 15,397
Discover integration expenses (348) (299) (110) (140) (63) (757) (94)
Discover intangible amortization expense (498) (255) — — — (753) —
Legal reserve activities — (41) (198) (75) — (239) —
FDIC special assessment — — — — 9 — (41)
Adjusted non-interest expense (non-GAAP) $ 7,417 $ 6,396 $ 5,594 $ 5,874 $ 5,260 $ 19,407 $ 15,262
Total net revenue (GAAP) $ 15,359 $ 12,492 $ 10,000 $ 10,190 $ 10,014 $ 37,851 $ 28,922
Discover loan and deposit fair value mark amortization 105 85 — — — 190 —
Walmart program agreement termination contra revenue impact — — — — — — 27
Adjusted net revenue (non-GAAP) $ 15,464 $ 12,577 $ 10,000 $ 10,190 $ 10,014 $ 38,041 $ 28,949
2025 2025 2025 2024 2024 Nine Months Ended September 30,
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in millions, except per share data and as noted) Q3 Q2 Q1 Q4 Q3 2025 2024
Efficiency ratio (GAAP) 53.80% 55.96% 59.02 % 59.75 % 53.07 % 55.89% 53.24%
Impact of adjustments noted above (584) bps (511) bps (308) bps (211) bps (54) bps (489) bps (52)bps
Adjusted efficiency ratio (non-GAAP) 47.96% 50.85% 55.94 % 57.64 % 52.53 % 51.02% 52.72%
Adjusted operating efficiency ratio:
Operating expense (GAAP) $ 6,860 $ 5,646 $ 4,700 $ 4,714 $ 4,201 $ 17,206 $ 12,210
Discover integration expenses (348) (299) (110) (140) (63) (757) (94)
Discover intangible amortization expense (498) (255) — — — (753) —
Legal reserve activities — (41) (198) (75) — (239) —
FDIC special assessment — — — — 9 — (41)
Adjusted operating expense (non-GAAP) $ 6,014 $ 5,051 $ 4,392 $ 4,499 $ 4,147 $ 15,457 $ 12,075
Total net revenue (GAAP) $ 15,359 $ 12,492 $ 10,000 $ 10,190 $ 10,014 $ 37,851 $ 28,922
Discover loan and deposit fair value mark amortization 105 85 — — — 190 —
Walmart program agreement termination contra revenue impact — — — — — — 27
Adjusted net revenue (non-GAAP) $ 15,464 $ 12,577 $ 10,000 $ 10,190 $ 10,014 $ 38,041 $ 28,949
Operating efficiency ratio (GAAP) 44.66% 45.20% 47.00 % 46.26 % 41.95 % 45.46% 42.22%
Impact of adjustments noted above (577) bps (504) bps (308) bps (211) bps (54) bps (482) bps (51)bps
Adjusted operating efficiency ratio (non-GAAP) 38.89% 40.16% 43.92 % 44.15 % 41.41 % 40.63% 41.71%
Adjusted net interest margin:
Net interest income (GAAP) $ 12,404 $ 9,995 $ 8,013 $ 8,098 $ 8,076 $ 30,412 $ 23,110
Loan and deposit fair value mark amortization 105 85 — — — 190 —
Walmart program agreement termination contra revenue impact — — — — — — 27
Adjusted net interest income (non-GAAP) $ 12,509 $ 10,080 $ 8,013 $ 8,098 $ 8,076 $ 30,602 $ 23,137
Average interest earning assets $ 593,247 $ 524,929 $ 462,771 $ 460,640 $ 454,484 $ 527,461 $ 451,078
Net interest margin (GAAP) 8.36% 7.62% 6.93 % 7.03 % 7.11 % 7.69% 6.83%
Impact of adjustments noted above 7 bps 6 bps — bps — bps — bps 5 bps 1bps
Adjusted net interest margin (non-GAAP) 8.43% 7.68% 6.93 % 7.03 % 7.11 % 7.74% 6.84%

Reconciliation of Non-GAAP Measures

The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following table presents reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.

2025 2025 2025 2024 2024
(Dollars in millions) Q3 Q2 Q1 Q4 Q3
Pre- Provision Earnings
Total net revenue $ 15,359 $ 12,492 $ 10,000 $ 10,190 $ 10,014
Non-interest expense (8,263) (6,991) (5,902) (6,089) (5,314)
Pre-provision earnings(9) $ 7,096 $ 5,501 $ 4,098 $ 4,101 $ 4,700
Tangible Common Equity (Period-End)
Stockholders’ equity $ 113,813 $ 110,956 $ 63,542 $ 60,784 $ 62,925
Goodwill and other intangible assets(10) (41,537) (42,012) (15,139) (15,157) (15,214)
Noncumulative perpetual preferred stock (5,407) (5,407) (4,845) (4,845) (4,845)
Tangible common equity(11) $ 66,869 $ 63,537 $ 43,558 $ 40,782 $ 42,866
Tangible Common Equity (Average)
Stockholders’ equity $ 112,819 $ 86,918 $ 62,240 $ 61,764 $ 61,289
Goodwill and other intangible assets(10) (41,815) (29,114) (15,149) (15,195) (15,225)
Noncumulative perpetual preferred stock (5,407) (5,355) (4,845) (4,845) (4,845)
Tangible common equity(11) $ 65,597 $ 52,449 $ 42,246 $ 41,724 $ 41,219
Return on Tangible Common Equity (Average)
Net income available to common stockholders $ 3,086 $ (4,340) $ 1,325 $ 1,022 $ 1,692
Tangible common equity (Average) 65,597 52,449 42,246 41,724 41,219
Return on tangible common equity(11)(12) 18.82 % (32.99) % 12.55 % 9.77 % 16.42 %
Tangible Assets (Period-End)
Total assets $ 661,877 $ 658,968 $ 493,604 $ 490,144 $ 486,433
Goodwill and other intangible assets(10) (41,537) (42,012) (15,139) (15,157) (15,214)
Tangible assets(11) $ 620,340 $ 616,956 $ 478,465 $ 474,987 $ 471,219
2025 2025 2025 2024 2024
--- --- --- --- --- --- --- --- --- --- ---
(Dollars in millions) Q3 Q2 Q1 Q4 Q3
Tangible Assets (Average)
Total assets $ 657,858 $ 572,446 $ 491,817 $ 488,300 $ 481,219
Goodwill and other intangible assets(10) (41,815) (29,114) (15,149) (15,195) (15,225)
Tangible assets(11) $ 616,043 $ 543,332 $ 476,668 $ 473,105 $ 465,994
Return on Tangible Assets (Average)
Net income (loss) $ 3,192 $ (4,277) $ 1,404 $ 1,096 $ 1,777
Tangible Assets (Average) 616,043 543,332 476,668 473,105 465,994
Return on tangible assets(11)(13) 2.07% (3.14)% 1.18% 0.92% 1.53%
TCE Ratio
Tangible common equity (Period-end) $ 66,869 $ 63,537 $ 43,558 $ 40,782 $ 42,866
Tangible Assets (Period-end) 620,340 616,956 478,465 474,987 471,219
TCE Ratio(11) 10.8% 10.3% 9.1% 8.6% 9.1%
Tangible Book Value per Common Share
Tangible common equity (Period-end) $ 66,869 $ 63,537 $ 43,558 $ 40,782 $ 42,866
Outstanding Common Shares 635.7 639.5 383.0 381.2 381.5
Tangible book value per common share(11) $ 105.18 $ 99.35 $ 113.74 $ 106.97 $ 112.36

__________

(1)Regulatory capital metrics and capital ratios as of September 30, 2025 are preliminary and therefore subject to change.

(2)Excludes certain components of AOCI in accordance with rules applicable to Category III institutions.

(3)Total capital equals the sum of Tier 1 capital and Tier 2 capital.

(4)Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.

(5)Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.

(6)Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.

(7)Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.

(8)TCE ratio is a Non-GAAP measure calculated based on TCE divided by tangible assets.

(9)Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

(10)Includes impact of related deferred taxes.

(11)Management believes that this financial metric is useful in assessing capital adequacy and the level of returns generated.

(12)Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average TCE.

(13)Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period.

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