Capital One Reports First Quarter 2025 Net Income of $1.4 billion,
or $3.45 per share

Net of adjusting items, First Quarter 2025 Net Income of $4.06 per share(1)

McLean, Va. (April 22, 2025) – Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2025 of $1.4 billion, or $3.45 per diluted common share, compared with net income of $1.1 billion, or $2.67 per diluted common share in the fourth quarter of 2024, and with net income of $1.3 billion, or $3.13 per diluted common share in the first quarter of 2024. Adjusted net income(1) for the first quarter of 2025 was $4.06 per diluted common share.

"Last week, we received regulatory approval for our acquisition of Discover and we're fully mobilized to complete the transaction on May 18th," said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "The combination of Capital One and Discover will create a leading consumer banking and payments platform with unique capabilities, modern technology, and powerful brands. It leverages Capital One’s technology transformation and digital capabilities across a significantly larger customer franchise. And it offers the potential to enhance competition and create significant value for merchants and customers."

The quarter included the following adjusting items:

All comparisons below are for the first quarter of 2025 compared with the fourth quarter of 2024 unless otherwise noted.

•Total net revenue decreased 2 percent to $10.0 billion.

•Total non-interest expense decreased 3 percent to $5.9 billion:

◦13 percent decrease in marketing.

◦Less than 1 percent decrease in operating expenses.

•Pre-provision earnings(2) remained substantially flat at $4.1 billion.

•Provision for credit losses decreased $273 million to $2.4 billion:

•Net charge-offs of $2.7 billion.

•$368 million loan reserve release.

•Net interest margin of 6.93 percent, a decrease of 10 basis points.

•Efficiency ratio of 59.02 percent.

◦Adjusted efficiency ratio(1) of 55.94 percent.

•Operating efficiency ratio of 47.00 percent.

◦Adjusted operating efficiency ratio(1) of 43.92 percent.

•Common equity Tier 1 capital ratio(3) under Basel III Standardized Approach of 13.6 percent at March 31, 2025.

•Period-end loans held for investment in the quarter decreased $4.2 billion, or 1 percent, to $323.6 billion.

◦Credit Card period-end loans decreased $5.3 billion, or 3 percent, to $157.2 billion.

•Domestic Card period-end loans decreased $5.3 billion, or 3 percent, to $150.3 billion.

◦Consumer Banking period-end loans increased $804 million, or 1 percent, to $78.9 billion.

•Auto period-end loans increased $827 million, or 1 percent, to $77.7 billion.

◦Commercial Banking period-end loans increased $338 million, or less than 1 percent, to $87.5 billion.

•Average loans held for investment in the quarter increased $514 million, or less than 1 percent, to $322.4 billion.

◦Credit Card average loans decreased $919 million, or 1 percent, to $156.4 billion.

•Domestic Card average loans decreased $651 million, or less than 1 percent, to $149.6 billion.

◦Consumer Banking average loans increased $1.3 billion, or 2 percent, to $78.5 billion.

•Auto average loans increased $1.3 billion, or 2 percent, to $77.2 billion.

◦Commercial Banking average loans increased $174 million, or less than 1 percent, to $87.5 billion.

•Period-end total deposits increased $4.8 billion, or 1 percent, to $367.5 billion, while average deposits increased $5.8 billion, or 2 percent, to $364.1 billion.

•Interest-bearing deposits rate paid decreased 23 basis points to 3.22 percent.

The company will hold an earnings conference call on April 22, 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 May 6, 2025 at 5:00 PM Eastern Time.

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.

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $367.5 billion in deposits and $493.6 billion in total assets as of March 31, 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.

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Financial Supplement(1)(2)

First Quarter 2025

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			12
Business Segment Results
			Table 9:			Financial Summary—Business Segment Results			13
			Table 10:			Financial & Statistical Summary—Credit Card Business			14
			Table 11:			Financial & Statistical Summary—Consumer Banking Business			16
			Table 12:			Financial & Statistical Summary—Commercial Banking Business			17
			Table 13:			Financial & Statistical Summary—Other and Total			18
Other
			Table 14:			Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)			19
			Table 15:			Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures			20

__________

(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 March 31, 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.

																																				2025 Q1
(Dollars in millions, except per share data and as noted)						2025						2024						2024						2024						2024						2024						2024
						Q1						Q4						Q3						Q2						Q1						Q4						Q1
Income Statement
Net interest income						$	8,013					$	8,098					$	8,076					$	7,546					$	7,488					(1)		%				7		%
Non-interest income						1,987						2,092						1,938						1,960						1,914						(5)						4
Total net revenue(1)						10,000						10,190						10,014						9,506						9,402						(2)						6
Provision for credit losses						2,369						2,642						2,482						3,909						2,683						(10)						(12)
Non-interest expense:
Marketing						1,202						1,375						1,113						1,064						1,010						(13)						19
Operating expense						4,700						4,714						4,201						3,882						4,127						—						14
Total non-interest expense						5,902						6,089						5,314						4,946						5,137						(3)						15
Income from continuing operations before income taxes						1,729						1,459						2,218						651						1,582						19						9
Income tax provision						325						366						441						54						302						(11)						8
Income from continuing operations, net of tax						1,404						1,093						1,777						597						1,280						28						10
Income from discontinued operations, net of tax						—						3						—						—						—						**						—
Net income						1,404						1,096						1,777						597						1,280						28						10
Dividends and undistributed earnings allocated to participating securities(2)						(22)						(17)						(28)						(9)						(23)						29						(4)
Preferred stock dividends						(57)						(57)						(57)						(57)						(57)						—						—
Net income available to common stockholders						$	1,325					$	1,022					$	1,692					$	531					$	1,200					30						10
Common Share Statistics
Basic earnings per common share:(2)
Net income from continuing operations						$	3.46					$	2.66					$	4.42					$	1.39					$	3.14					30		%				10		%
Income from discontinued operations						—						0.01						—						—						—						**						—
Net income per basic common share						$	3.46					$	2.67					$	4.42					$	1.39					$	3.14					30						10
Diluted earnings per common share:(2)
Net income from continuing operations						$	3.45					$	2.66					$	4.41					$	1.38					$	3.13					30		%				10		%
Income from discontinued operations						—						0.01						—						—						—						**						—
Net income per diluted common share						$	3.45					$	2.67					$	4.41					$	1.38					$	3.13					29						10
Weighted-average common shares outstanding (in millions):
Basic						383.1						382.4						383.0						383.1						382.2						—						—
Diluted						384.0						383.4						383.7						383.9						383.4						—						—
Common shares outstanding (period-end, in millions)						383.0						381.2						381.5						381.9						382.1						—						—
Dividends declared and paid per common share						$	0.60					$	0.60					$	0.60					$	0.60					$	0.60					—						—
Tangible book value per common share (period-end)(3)						113.74						106.97						112.36						99.28						98.67						6		%				15		%

    

    

																																				2025 Q1
(Dollars in millions, except as noted)						2025						2024						2024						2024						2024						2024						2024
						Q1						Q4						Q3						Q2						Q1						Q4						Q1
Performance Metrics
Net interest income growth (period over period)						(1)		%				—						7		%				1		%				—						**						**
Non-interest income growth (period over period)						(5)						8		%				(1)						2						(4)		%				**						**
Total net revenue growth (period over period)						(2)						2						5						1						(1)						**						**
Total net revenue margin(4)						8.64						8.85						8.81						8.43						8.40						(21)		bps				24		bps
Net interest margin(5)						6.93						7.03						7.11						6.70						6.69						(10)						24
Return on average assets						1.14						0.90						1.48						0.50						1.08						24						6
Return on average tangible assets(6)						1.18						0.92						1.53						0.52						1.11						26						7
Return on average common equity(7)						9.23						7.16						11.99						3.99						9.03						207						20
Return on average tangible common equity(8)						12.55						9.77						16.42						5.59						12.67						278						(12)
Efficiency ratio(9)						59.02						59.75						53.07						52.03						54.64						(73)						438
Operating efficiency ratio(10)						47.00						46.26						41.95						40.84						43.89						74						311
Effective income tax rate for continuing operations						18.8						25.1						19.9						8.3						19.1						(630)						(30)
Employees (period-end, in thousands)						53.9						52.6						52.5						52.1						51.3						2%						5%
Credit Quality Metrics
Allowance for credit losses						$	15,899					$	16,258					$	16,534					$	16,649					$	15,380					(2)%						3%
Allowance coverage ratio						4.91		%				4.96		%				5.16		%				5.23		%				4.88		%				(5)		bps				3		bps
Net charge-offs						$	2,736					$	2,884					$	2,604					$	2,644					$	2,616					(5)%						5%
Net charge-off rate(11)						3.40		%				3.59		%				3.27		%				3.36		%				3.33		%				(19)		bps				7		bps
30+ day performing delinquency rate						3.29						3.69						3.58						3.36						3.40						(40)						(11)
30+ day delinquency rate						3.51						3.98						3.89						3.63						3.67						(47)						(16)
Capital Ratios(12)
Common equity Tier 1 capital						13.6		%				13.5		%				13.6		%				13.2		%				13.1		%				10		bps				50		bps
Tier 1 capital						14.9						14.8						14.9						14.5						14.4						10						50
Total capital						17.0						16.4						16.6						16.3						16.2						60						80
Tier 1 leverage						11.6						11.6						11.6						11.3						11.3						—						30
Tangible common equity (“TCE”)(13)						9.1						8.6						9.1						8.2						8.1						50						100

    

    

 

(1)Total net revenue was reduced by $705 million in Q1 2025, $706 million in Q4 2024, $624 million in Q3 2024, $649 million in Q2 2024 and $630 million in Q1 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 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.

(7)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.

(8)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.

(9)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.

(10)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.

(11)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.

(12)Capital ratios as of the end of Q1 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.

(13)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.

						2025 Q1																		2024 Q4																		2024 Q1
(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						$	322,772					$	10,157					12.59		%				$	322,231					$	10,434					12.95		%				$	315,563					$	9,920					12.57		%
Investment securities						92,659						770						3.32						92,248						753						3.26						88,581						687						3.10
Cash equivalents and other						47,340						491						4.14						46,161						530						4.59						43,659						570						5.21
Total interest-earning assets						$	462,771					$	11,418					9.87						$	460,640					$	11,717					10.17						$	447,803					$	11,177					9.98
Interest-bearing liabilities:
Interest-bearing deposits						$	337,840					$	2,715					3.22						$	331,564					$	2,862					3.45						$	318,450					$	2,812					3.53
Securitized debt obligations						13,731						176						5.11						14,931						205						5.47						17,836						261						5.85
Senior and subordinated notes						30,331						505						6.66						30,888						540						7.00						32,211						606						7.52
Other borrowings and liabilities(2)						2,312						9						1.57						2,434						12						1.85						2,373						10						1.78
Total interest-bearing liabilities						$	384,214					$	3,405					3.54						$	379,817					$	3,619					3.81						$	370,870					$	3,689					3.98
Net interest income/spread												$	8,013					6.32												$	8,098					6.36												$	7,488					6.00
Impact of non-interest-bearing funding																		0.61																		0.67																		0.69
Net interest margin(3)																		6.93		%																7.03		%																6.69		%